The reforms only apply to financial advice provided to retail clients. A retail client is someone who is not classified as a wholesale client, that is, they have not met the income or wealth tests in the Corporations Act and have not been assessed as being an experienced investor.
The best interests obligation, opt-in and fee disclosure requirements apply only to personal advice provided to retail clients (advice on products tailored to an individual’s personal circumstances). The ban on conflicted remuneration will apply to both personal advice and general advice (advice on products not tailored to an individual’s personal circumstances). Exceptions to the measures are provided in certain circumstances.