Checklist · Financial Services Regulation
Regulation Best Interest care and profile checklist
Question list for the care obligation, using the investment-profile factors the rule lists. It collects what the file shows. It does not find that a recommendation was suitable or in the customer's best interest.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- United States
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the authority it cites, for United States.
- Version
- 1
- Source
- Written for this library
When to use it
Use when a recommendation file is being reviewed and the question is whether the file shows a basis for the care obligation. Do not use it as a customer questionnaire that is sent out on its own.
Used for these tasks
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
Yellow: the lawyer compares the file with the profile factors and the three care limbs.
AI may
- List each investment-profile factor the rule names, with a blank for what the file shows.
- Separate the 'at least some retail customers' question from the particular-customer question.
- Ask the series-of-transactions question only where there is a series.
AI must not
- Do not score the customer or rank risk tolerance.
- Do not write a recommendation.
- Do not add profile factors and present them as required by the rule. The rule says the profile includes, but is not limited to, the listed factors.
The lawyer checks
- Use the information the customer disclosed in connection with the recommendation.
- Judge reasonable diligence, care and skill. The rule states that standard and this list does not replace it.
- If costs were not in the file, say so rather than assuming a figure.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
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More in Financial Services Regulation
- Authorised representative agreement and written authorisation (AFS licensee)
- File review against the best-interests steps in section 961B
- AFCA complaint: online form and downloadable complaint form
- Reportable situation (breach) report to ASIC: assessment worksheet and completion guide
- Regulation Best Interest recommendation review checklist
- Client notice for AI-assisted or digital financial advice
- AFCA agent authority
- Hardship notice response letters under the National Credit Code (information request, decision and notice of change)
- Form CRS filing and delivery review checklist
- Record of retail, wholesale or sophisticated client status
- Review a benefit against the conflicted remuneration provisions that were opened
- Distributor’s design and distribution reports to the issuer: significant dealing notice, complaints report and periodic report
- AFCA statement of financial position
- AFS or credit licensee AI governance policy
- Regulation Best Interest conflict procedures checklist
- Client money handling checklist and procedure for an AFS licensee (s 981B accounts)
- Credit reporting correction request worksheet
- AFCA resolution of directors
- Target market determination (template with statutory checklist)
- Responsible lending unsuitability assessment record (credit providers)
- Internal dispute resolution (IDR) final response letter, with delay notification
All precedents for Financial Services Regulation · Tasks and AI use in this area