Checklist · Financial Services Regulation
Regulation Best Interest conflict procedures checklist
Checklist for the written conflict procedures in Rule 15l-1(a)(2)(iii), including the elimination of specified sales contests. It does not clear a remuneration arrangement.
- 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 reviewing a broker-dealer's written procedures, or a representative's pay, against the conflict obligation in Regulation Best Interest. Do not use it to approve a bonus plan.
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 written procedures with each limb of the conflict obligation.
AI may
- Quote the four limbs of paragraph (a)(2)(iii) as questions against the firm's procedures.
- Ask whether any contest, quota, bonus or non-cash compensation falls within limb (D).
- Leave the mitigation method blank for the lawyer to describe from the procedures.
AI must not
- Do not decide that a conflict is mitigated.
- Do not redesign a pay plan.
- Do not treat an Australian conflicted-remuneration ban as this paragraph.
The lawyer checks
- Read the pay arrangement and the written procedures together.
- Check limb (D) against contests based on sales of specific securities or specific types of securities within a limited period.
- Confirm the procedures are maintained and enforced, not only drafted.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is available after you log in. It is free. When you log in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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
- 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)
- Regulation Best Interest care and profile 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