---
title: "File review against the best-interests steps in section 961B"
url: "https://ailawframework.com/precedents/financial-services-regulation/best-interests-file-review"
type: "precedent"
site: "AI Law Framework"
id: "a28-best-interests-file-review"
area_id: "A28"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A28-T1-R4"]
law_stated_as_at: "2026-10-22"
---

# File review against the best-interests steps in section 961B

> Working paper for a sample advice file against section 961B of the Corporations Act 2001. Subsection (2) is a way of proving the duty. It is not marked off by anyone but the principal.

Canonical page: https://ailawframework.com/precedents/financial-services-regulation/best-interests-file-review  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Financial Services Regulation](https://ailawframework.com/precedents/financial-services-regulation.md)
- Jurisdictions: Commonwealth
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the authority it cites, for Commonwealth.

## When to use it

Use when a licensee reviews advice files against the safe-harbour steps. It is not a statement of advice, and it does not decide that the duty was met.

## Used for these tasks

- [Review a sample of advice files against the best-interests steps](https://ailawframework.com/practice/financial-services-regulation/review-a-sample-of-advice-files-against-the-best-interests-steps.md)

## How AI may be used

AI may point to a page in the file where a fact appears and may leave every proved or not-proved mark blank.

**AI may:**

- Insert the file number and the date of the advice
- Cite the page of the file that records a client objective or a product that was considered

**AI must not:**

- Must not mark a step as proved
- Must not say the duty was satisfied
- Must not treat subsection (2) as the only way to meet subsection (1)

**The lawyer checks:**

- The note to subsection (2) is applied: the subject matter may be narrow, and the inquiries are tailored to the advice sought
- Subsections (3) and (4) are used only where the advice is of the kind those subsections describe
- Any regulation under subsection (5) is read before a step is added or dropped. The regulations were not opened for this paper

## Authorities

- [Corporations Act 2001 (Cth) s 961B (the best-interests duty, the steps that satisfy it if proved, the basic banking and general insurance steps, and the regulation-making power)](https://classic.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s961b.html)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/financial-services-regulation/best-interests-file-review and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*