ASIC Corporations (Basic Deposit and General Insurance Product Distribution) Instrument 2025/520

Product distributor, principal distributor, written authorisation, licence coverage, dealing in specified product types, authorised representative, reasonable steps, dispute resolution disclosure, and written remuneration disclosure are the core concepts introduced or re‑stated.

Product distributor, as added to s 910A, is a compound concept. It first denotes a principal distributor, defined by three criteria: the person must be not an employee of the licensee, the person must be authorised in writing by the licensee to provide financial services on its behalf, and the authorisation must be limited to dealing in either a basic deposit product or a risk insurance product. The second strand captures an individual authorised in writing by a principal distributor, but only where the principal distributor has obtained the written consent of the licensee for that authorisation and where the principal distributor is not an individual. The instrument explicitly contemplates that the licensee’s written consent can be delegated as to a specified individual or a specified class of individuals, and that class membership may change over time; that appears in the embedded Note to the definition (s 910A insertion, Note).

Representative is a pre‑existing statutory concept in s 9. The instrument expands it by inserting a new paragraph so that a product distributor is a representative of the licensee for the statutory regime’s purposes (s 9 insertion). That change is structural: a product distributor falls within existing obligations and duties that attach to representatives under Part 7.6, subject to the declared exclusions and modifications.

Paragraph 911B(1)(aa) creates a three‑part test that must be satisfied where the declaration applies: the principal must hold an Australian financial services licence covering the service; the service must be dealing in a basic deposit product or a risk insurance product; and the provider must be either a product distributor or, in the case of a basic deposit product, an employee of a product distributor (insertion of 911B(1)(aa)). This sets a narrow route for third‑party provision of these simple products while preserving licence coverage as a precondition.

“Where declaration applies” sets out trigger conditions. The declaration applies only where the distributor is not an authorised representative (clause (2)(a)), the distributor is providing dealing services in one of three product categories (basic deposit product, general insurance product, or bundled consumer credit insurance product) (clause (2)(b)), and the licensee has taken reasonable steps to ensure certain client disclosures occur (clause (2)(c)). The disclosure duties are twofold: for all covered products, the distributor must draw the client’s attention to the licensee’s dispute resolution system and how to access it; for general insurance and bundled consumer credit insurance products, the distributor must also provide written information specifying who the distributor acts for and any remuneration or other benefits the distributor or an associate may receive attributable to the service (clause (2)(c)(i)-(ii)).

“Reasonable steps” is an express but undefined standard in the instrument. It attaches to the licensee’s duty to ensure the distributor provides the specified client information when dealing with retail clients. The instrument does not define the boundary of “reasonable steps”, leaving that standard to be measured against the facts and, where relevant, by reference to the enforcement regime in Part 7.6.

The instrument excludes Divisions 4 and 8 of Part 7.6 from the declared application. It does not detail what those Divisions contain; the mechanical effect is that Part 7.6 otherwise applies to the defined relationships with the textually specified modifications.

Finally, the Note in the s 910A insertion creates a delegated authorisation mechanism: the licensee can permit a principal distributor to authorise individuals or classes of individuals in writing. That delegation is conditional on initial licensee consent and can be structured around individualised or class authorisations.

Primary affected parties are Australian financial services licence holders (licensees), principal distributors (non‑employee authorised providers), individuals authorised by principal distributors with licensee consent, employees of product distributors in a narrow set of circumstances, third‑party distributors who are not authorised representatives, retail clients, and the internal and external dispute resolution frameworks of licensees.

Licensees are affected in multiple, concrete ways. They must provide written authorisations to principal distributors if they wish to engage them to deal in basic deposit products or risk insurance products, and they must give written consent where they want a principal distributor to authorise individuals or a class of individuals on their behalf (s 910A insertion, Note). Licensees must also take reasonable steps to ensure that, when distributors are providing services to retail clients, distributors draw the client’s attention to the licensee’s dispute resolution system and, where relevant, give written information about who the distributor acts for and any remuneration (Where declaration applies, subsection (2)(c)). The instrument therefore places documentation, supervision, and proof obligations on licensees.

Principal distributors are, by definition, persons who are not employees of the licensee but are authorised in writing to provide services in relation to basic deposit or risk insurance products (s 910A insertion). They are brought within the statutory representative concept (s 9 insertion) and therefore fall within the regulatory perimeter established by Part 7.6 as modified. Principal distributors that are corporate entities may, with the licensee’s written consent, authorise individuals or a class of individuals; where they do so the authorised individuals will operate under the authorisation framework set out, provided the principal distributor is not an individual (s 910A insertion, Note; s 910A insertion, paragraph (b)).

Individuals authorised by principal distributors are affected only where the principal distributor is not an individual and where the licensee has given written consent to the principal distributor’s authorisation of those individuals (s 910A insertion, paragraph (b)). Those individuals are captured by the product distributor definition and by the expanded representative concept in s 9, but only to the extent the written consents exist.

Employees of product distributors are referenced narrowly. The insertion to 911B(1)(aa) extends the relevant provision to include, in the context of dealing in a basic deposit product only, an employee of a product distributor as a provider (911B(1)(aa)(iii)(B)). That means employees of product distributors will be caught as providers for basic deposit products, but not for risk insurance products under the text supplied.

Distributors who are not authorised representatives are explicitly targeted. The declaration applies where the distributor is not an authorised representative (Where declaration applies, subsection (2)(a)). That choice preserves the existing regulatory treatment of authorised representatives while creating a statutory pathway for certain non‑authorised representatives who provide simple products.

Retail clients are affected by the disclosure mechanics. Where the declaration applies, licensees must take reasonable steps to ensure that their distributors draw retail clients’ attention to the licensee’s dispute resolution system and provide written information about who the distributor acts for and any remuneration or other benefits, where the product is a general insurance product or a bundled consumer credit insurance product (Where declaration applies, subsection (2)(c)(i)-(ii)).

Finally, external dispute resolution schemes and internal dispute resolution mechanisms are indirectly engaged. The distributor must draw the client’s attention to the availability of a dispute resolution system of the licensee and how that system may be accessed; the instrument therefore mobilises complaint channels associated with licence holders as a required disclosure component in distributor interactions (Where declaration applies, subsection (2)(c)(i)).

The instrument allocates duties and creates authorised rights that are narrow and product‑specific.

Rights created or clarified

• Licensees have the explicit right to authorise, in writing, a principal distributor to provide financial services on their behalf in relation to basic deposit products or risk insurance products (s 910A insertion).
• Licensees have the explicit right to give written consent to a principal distributor to authorise individuals or a class of individuals to provide those services on the licensee’s behalf; the Note to the s 910A insertion contemplates consent to authorise either specified individuals or classes whose membership may change.
• A product distributor who meets the definition in s 910A is treated as a representative of the licensee in s 9, which grants that person access to the statutory framework that governs representatives under Part 7.6, subject to the exclusions and modifications the instrument makes.

Duties imposed

• The licensee must take reasonable steps to ensure, when a distributor provides the financial service to a retail client, that the distributor draws the client’s attention to the availability of the licensee’s dispute resolution system and how to access it (Where declaration applies, subsection (2)(c)(i)).
• For distributors dealing in general insurance products or bundled consumer credit insurance products, the licensee must take reasonable steps to ensure the client is given written information disclosing who the distributor acts for and any remuneration or other benefits that the distributor or an associate may receive in respect of, or attributable to, the provision of the service (Where declaration applies, subsection (2)(c)(ii)(A)-(B)).
• Under 911B(1)(aa) the service provider must be either a product distributor of the principal or, for basic deposit products, an employee of a product distributor , that is a condition on the declared application and thus a compliance limit on who may provide the service under this regime.

Scope and limits of duties

• The declaration applies only where the distributor is not an authorised representative (Where declaration applies, subsection (2)(a)), preserving the separate regulatory treatment of authorised representatives and avoiding duplication.
• The disclosure duty is framed as the licensee taking reasonable steps to ensure disclosure by the distributor, not as a direct obligation on the distributor in the text supplied. The statutory wording therefore places an evidence and supervisory burden on licensees to prove they took reasonable steps to secure the distributor’s compliance with the disclosure obligations.
• The instrument excludes Divisions 4 and 8 of Part 7.6 from the variation; those Divisions are not described in the supplied text, so any duties or rights located in those Divisions remain outside the declared application.

Enforceability and chaining of authorisations

• The Note in the s 910A insertion permits licensees to consent to a principal distributor authorising individuals or classes of individuals, enabling delegation chains. Where such consent is given, individuals authorised by the principal distributor fall within the product distributor concept, subject to the written consents required by the definition. That creates a right for principal distributors to invite and onboard authorised individuals, where authorised by the licensee.

Documentation and proof

• The instrument’s repeated emphasis on written authorisations and written consent, and the requirement that clients be given written information in certain cases, creates documentary duties. Proof of compliance will therefore rest on written records of authorisations and written materials provided to clients.

The supplied declaration text is limited to definitional changes, inclusions, and disclosure‑related supervisory obligations; it does not itself set out penalties or enforcement mechanisms. It expressly applies Part 7.6 of the Act (other than Divisions 4 and 8) to the specified distributor relationships as if modified in the ways described (Declaration, Part 2,Declaration, subsection 5(1)). Enforcement consequences must therefore be located by reference to Part 7.6 of the Act.

Consequence inference from the instrument

• Because the instrument imports Part 7.6 (subject to specified modifications), the enforcement machinery and potential civil, administrative or criminal sanctions that are present in Part 7.6 will attach to the relationships and actors brought within the declared scope. The instrument itself does not reproduce those sanctions; it does not identify particular pecuniary penalties, injunction powers, licence cancellation grounds, or criminal offences specific to these insertions.
• The instrument frames certain obligations as the licensee having to take “reasonable steps” to ensure distributor disclosures. That standard, when enforced under Part 7.6, will likely be assessed against the facts and regulatory standards in that Part. The instrument does not set out what evidence will suffice to establish “reasonable steps”.

What to check for enforcement practicalities

• To understand enforcement risk and the quantum of penalties that may apply to failure to comply with the obligations created or captured by the declaration, consultees will need to consult the unmodified portions of Part 7.6 (and the specific Divisions that remain applicable), since the instrument does not restate or amend enforcement provisions. The instrument does make textual changes that can broaden who is a representative and thus who may be subject to Part 7.6 supervisory and enforcement measures, but the operative sanctions text remains in the existing Act.

Recordkeeping as evidence

• Given that much of the new compliance architecture relies on written authorisations, written consents, and written information provided to clients, recordkeeping will be central to any enforcement question. The instrument converts previously informal commercial arrangements into interactions where documentary proof of authorisation, consent, and disclosure will likely be decisive in any inquiry under Part 7.6.

Limitations in the instrument

• The instrument excludes Divisions 4 and 8 from the varied application of Part 7.6. Because the instrument does not state which provisions these Divisions contain, or whether they carry particular enforcement mechanisms, it is not possible from the supplied text to determine whether specific enforcement tools are preserved, removed, or inapplicable as a result of the exclusion.

This declaration operates by modifying the application of Part 7.6 of the Corporations Act; accordingly its primary interaction is with the existing financial services licensing regime, including the statutory concepts of representative and authorised representative. The instrument changes the legal characterisation of certain third‑party distributors within that regime, thereby interacting with any other statutory or regulatory obligations that hinge on representative status.

Interaction with the licensing regime

• By adding product distributor to the definition of representative in s 9, the instrument makes product distributors subject to the regulatory architecture that applies to representatives under Part 7.6 (s 9 insertion). Any obligations and restrictions that apply to representatives in the remainder of the Act and in the parts of Part 7.6 that remain engaged will therefore apply to product distributors as modified by this instrument.
• The insertion of 911B(1)(aa) makes licence coverage a precondition: the principal must hold an Australian financial services licence covering the provision of the service (911B(1)(aa)(i)). That ties the authorised activity of product distributors back to the holder of the AFS licence, reducing the possibility that a third party could lawfully provide the named services in the absence of a licensed principal.

Interaction with dispute resolution and consumer disclosure obligations

• The instrument requires that licensees take reasonable steps to ensure distributors draw retail clients’ attention to the availability of a dispute resolution system and how to access it (Where declaration applies, subsection (2)(c)(i)). That explicitly connects distributor interactions to the licensee’s internal and external dispute resolution arrangements, and therefore to any legal requirements governing external dispute resolution schemes and licensing conditions that mandate dispute resolution arrangements.
• For general insurance products and bundled consumer credit insurance products, the licensee must ensure written disclosure to the client of who the distributor acts for and any remuneration or other benefits attributable to the service (Where declaration applies, subsection (2)(c)(ii)). Those written disclosure obligations will interact with other statutory and regulatory disclosure regimes that govern remuneration, commissions and the provision of product‑related information.

Employment and agency law interactions

• The instrument distinguishes between non‑employee principal distributors and, in a narrow case, employees of product distributors when dealing in a basic deposit product (911B(1)(aa)(iii)(B)). This creates a legal demarcation that intersects with employment law and agency principles: whether a person is an employee or an independent contractor will be a factual question with regulatory consequences under the declared regime.

Contract law and third‑party authorisation

• The Note to the s 910A insertion permits licensees to give written consent to principal distributors to authorise individuals or classes of individuals, whose membership may change over time. That provision will interact with contractual arrangements between licensees and principal distributors, and with commercial practices around delegation, onboarding, and ongoing supervision. Contract terms will therefore need to reflect statutory requirements and the recordkeeping obligations that arise from the requirement for written authorisations and consents.

Overlap with other consumer protection laws

• The instrument’s disclosure duties for certain insurance products will intersect with consumer protection provisions that regulate misleading or deceptive conduct, unconscionable conduct, and unfair contract terms, in so far as distributor behaviour and disclosure practices influence consumer decisions. The instrument does not explicitly address those other statutes, but practitioners should be aware that distributor disclosures operate inside a broader consumer law ecosystem.

Unaddressed legal interactions

• The instrument excludes Divisions 4 and 8 of Part 7.6 from the variation. The content of those Divisions is not set out in the supplied text. Users must therefore check how those Divisions interact with other statutory regimes and whether any excluded provisions would otherwise have created further interactions.

The supplied text is presented as “Part 2,Declaration” and sets out a discrete set of insertions and variations to Part 7.6 of the Corporations Act. The instrument does not include historical dates, prior versions, commencement details, or references to earlier amendments. From the supplied material we can only record what the instrument changes now, not a chronology.

Recorded textual changes

• Insertion into s 910A of a new definition for product distributor, together with an explanatory Note about the licensee’s ability to give written consent to principal distributors to authorise individuals or classes of individuals (s 910A insertion and Note).
• Amendment to s 9 to insert a new paragraph in the definition of representative, expressly including a product distributor (s 9 insertion).
• Insertion after paragraph 911B(1)(a) of a new paragraph (aa) which establishes three conjunctive conditions relating to licence coverage, types of service (basic deposit or risk insurance product), and provider identity (product distributor or employee of product distributor for basic deposit products) (insertion of 911B(1)(aa)).
• Addition of the “Where declaration applies” subsection that specifies the circumstances in which the declaration applies, including the requirement that the distributor is not an authorised representative, the covered product types, and licensee obligations to take reasonable steps to ensure distributor disclosures about dispute resolution, identity of the party the distributor acts for, and remuneration (Declaration, Where declaration applies, subsection (2)).

Absence of dates and legislative pathway

• The instrument as supplied does not include commencement date, repeal or transitional provisions, or references to enabling statutory authority for the declaration. It also lacks a schedule of amendments or a legislative history note. The supplied material therefore records the textual amendments but not the legislative pathway or timing.

Duplication in the supplied text

• The supplied text contains repeated paragraphs and duplicated insertions (for example the s 9 insertion and the insertion at 911B(1)(aa) appear more than once). The legal effect intended is clear from the core insertions recorded above; however users should consult the enacted text for confirmed drafting without duplication or transcription error.

What to verify in practice

• Practitioners relying on this instrument should check the final enacted version in the consolidated statute to confirm precise drafting, section numbering, and commencement. They should also verify if the Note to s 910A is descriptive only or is being recorded as legislative guidance in the Act, and whether any transitional provisions accompany the instrument in its final form.

The supplied instrument contains no cases, no judicial interpretations, and no references to litigation. It is a textual declaration and amendment; there is no litigation history recorded in the material supplied.

Implications for litigation risk

• Because the instrument creates new definitional and disclosure frameworks but leaves enforcement and penalty mechanisms to the remainder of Part 7.6 (as applicable), litigation risk will flow from how regulators and courts subsequently interpret:
  • What constitutes “reasonable steps” taken by a licensee to ensure distributor disclosures;
  • Whether a particular third party qualifies as a “product distributor” or as an “employee of a product distributor” in the basic deposit product context; and
  • Whether a licensee’s written consent to a principal distributor to authorise individuals or a class of individuals was properly given and sufficiently documented.

No judicial gloss supplied

• There is no judicial gloss in the supplied text. Any litigation history will therefore emerge only after the instrument is applied in practice and enforcement actions challenge the interpretation or adequacy of compliance measures.

Practical consequence for advisers

• In the absence of precedent, advisers should assume that interpretations of “reasonable steps”, “authorised in writing”, and the boundaries of employee versus non‑employee status will be fact‑dependent and likely to be litigated if regulators pursue enforcement. That means advisers should favour conservative, well‑documented compliance measures until judicial or regulatory guidance emerges.

The instrument introduces several features that create practical compliance traps and ambiguous compliance margins.

“Reasonable steps” is undefined

• The declaration requires the licensee to take “reasonable steps” to ensure certain distributor disclosures (Where declaration applies, subsection (2)(c)). The instrument does not define what measures count as reasonable. Practitioners should note that this phrase tends to be fact‑sensitive and may be assessed against sector norms, supervisory arrangements, and documentary evidence. The absence of a statutory checklist means licensees cannot rely on a single standardised action; rather they must document a proportionate mix of training, contractual obligations, written materials, monitoring, and audit trails.

Who is a product distributor can be borderline

• The product distributor definition hinges on written authorisation by the licensee and the non‑employee status of the principal distributor. Where the commercial relationship looks economically like employment but is labelled otherwise, disputes may arise. The instrument does not provide a safe harbour or tests to distinguish employees from independent contractors or from agents who are authorised representatives.

Authorised representative exclusion

• The declaration applies only where the distributor is not an authorised representative (Where declaration applies, subsection (2)(a)). Firms that rely on third parties should be aware that an authorised representative follows a different regulatory path. Misclassifying a distributor as not being an authorised representative when they effectively are could create both regulatory and contractual risk.

Narrow inclusion of employees for basic deposit products

• The insertion at 911B(1)(aa)(iii)(B) allows, for basic deposit products only, an employee of a product distributor to be the provider. That carve‑in is product‑specific; employees of product distributors dealing in risk insurance products are not covered by the same textual provision. This asymmetry means compliance teams must track product type precisely when assessing who may lawfully provide services.

Written authorisations and consents required

• The definition of product distributor and the Note both require written authorisations and written consents. If those documents are missing, informal commercial practice will not suffice to create the legal status. Firms should ensure template authorisation documents are executed and retained.

Documentary proof becomes the evidentiary battleground

• Because the instrument repeatedly requires written materials be provided to clients for certain products, and because licensees must take reasonable steps to ensure distributors provide these disclosures, the record‑keeping burden is material. Failure to produce a contemporaneous record of the written authorisation, the licensee’s consent to delegated authorisation, or the written disclosures given to clients will be the first place enforcement actions are contested.

Overlap and duplication in the supplied text

• The supplied text contains duplicated paragraphs and insertions. That raises drafting clarity risks in transitional drafting and might create uncertainty until the consolidated text is settled. Practitioners should check the enacted, consolidated version for any clerical or redundant language that might affect interpretation.

Interaction with external dispute resolution and product disclosure practices

• The requirement that distributors draw attention to the licensee’s dispute resolution system engages both the licensee’s internal complaints processes and any external dispute resolution scheme. Firms that do not have clear cross‑references between distributor scripts, product disclosure statements, and dispute resolution instructions risk creating confused or incomplete messaging to clients.

Classes of individuals authorisable by principal distributor

• The Note contemplates that a licensee may consent to a principal distributor authorising a class of individuals where the membership of the class may change. That creates operational complexity. Licensees must be able to demonstrate ongoing control over who joins or leaves an authorised class and that the class authorisation remains compliant with licence coverage and supervision obligations.

No penalties or enforcement detail included

• The instrument does not itself set out penalties. This means the enforcement landscape will be determined by the existing provisions of Part 7.6 as applied to the newly included actors. Firms cannot rely on the instrument to specify enforcement priorities, and must assume that existing regulator powers under the Act will apply.

Compliance under the new regime requires documentation, supervisory controls, and process adjustments. The instrument places primary responsibility on licensees to ensure compliance by third‑party distributors, and it conditions certain authorisations on written consents and licence coverage.

Checklist of immediate actions

1. Authorisation templates, and written consents

   • Prepare and execute written authorisations for any principal distributor whom the licensee intends to authorise to provide dealing services in basic deposit products or risk insurance products (s 910A insertion).
   • Where the licensee intends to permit a principal distributor to authorise individuals or a class of individuals, prepare a written consent that specifies the scope (individual or class), the permitted activities, and any supervisory requirements (s 910A insertion, Note). Keep contemporaneous records of consents and of any changes to class membership.

2. Licence coverage verification

   • Before authorising a principal distributor, confirm and document that the principal (the licensee) holds an Australian financial services licence that explicitly covers the provision of the service intended to be provided, as required by 911B(1)(aa)(i).
   • Link each authorisation file to the relevant licence coverage statement to demonstrate the nexus between the AFS licence and the authorised activity (911B(1)(aa)(i)-(ii)).

3. Product classification controls

   • Implement procedures to categorise products precisely as basic deposit products, risk insurance products, general insurance products, or bundled consumer credit insurance products. The applicability of the declaration and certain disclosure duties depends on these classifications (Where declaration applies, subsection (2)(b)).

4. Written authorisation for individuals

   • If a principal distributor is to authorise individuals, obtain the required written authorisation for each individual unless a class authorisation has been approved by the licensee; maintain a current register of authorised individuals and classes and evidence of the licensee’s consent to any delegated authorisations (s 910A insertion, Note; s 910A insertion, paragraph (b)).

5. Distributor contractual terms and obligations

   • Update contracts with principal distributors to reflect that they are treated as representatives for the purposes of Part 7.6, to require compliance with the licensee’s dispute resolution and disclosure scripts, and to impose recordkeeping and audit rights to enable the licensee to prove it took reasonable steps (s 9 insertion; Declaration, Where declaration applies, subsection (2)(c)).

6. Disclosure scripts and written materials

   • Prepare standardised scripts for distributors to ensure they draw retail clients’ attention to the availability of the licensee’s dispute resolution system and how to access it (Where declaration applies, subsection (2)(c)(i)).
   • For general insurance products and bundled consumer credit insurance products, prepare a written disclosure pack that states clearly who the distributor acts for and sets out any remuneration or other benefits the distributor or an associate may receive attributable to the service (Where declaration applies, subsection (2)(c)(ii)(A)-(B)). Ensure distributors are trained to provide the written pack and to obtain acknowledgements where appropriate.

7. Training, monitoring, and auditing

   • Deliver training to principal distributors and authorised individuals on the required disclosures and on how to explain and provide access to the licensee’s dispute resolution system.
   • Institute monitoring and audit programmes to periodically confirm distributors are making the required disclosures. Record audit results and remedial actions to demonstrate the licensee took “reasonable steps”.

8. Recordkeeping and evidence consolidation

   • Maintain centralised records of: all written authorisations of principal distributors; any written consents permitting principal distributors to authorise individuals or classes; copies of written materials provided to clients (including templates and examples); training logs and attendance records; monitoring and audit results; and written reminders or confirmations from distributors that disclosure scripts were used.
   • Where written disclosures are required for general insurance or bundled consumer credit insurance products, retain copies of the exact written statements provided to each retail client.

9. Operational boundaries for employees of product distributors

   • If employees of product distributors are intended to provide dealing services in basic deposit products, ensure employment status is documented, and that contracts or internal policies reflect that the employee is operating under the product distributor authorisation pathway described in 911B(1)(aa)(iii)(B). Do not assume that employees will automatically be covered for risk insurance products under the same mechanism.

10. Legal and regulatory review

• Because enforcement mechanics are not restated in the instrument, obtain legal advice on how Part 7.6 (as modified) interacts with your existing compliance programme, including how to evidence “reasonable steps”.
• Check the enacted consolidated text, including any commencement provisions, to confirm that the final wording matches the instrument you are implementing. Resolve any discrepancies between drafts and the consolidated statute before relying on delegation or class authorisations.

Operational and supervisory design points

• Centralised sign‑off: require legal and compliance sign‑off on any written authorisation or written consent creating a product distributor relationship.
• Template controls: use controlled, versioned templates for all written materials provided to clients and for authorisation documents; maintain a log of updates and distribution to third parties.
• Escalation paths: create clear escalation routes for instances where a distributor fails to perform the required disclosure obligations; document remedial steps and, if necessary, termination of the authorisation agreement.
• Data retention: retain records for a period aligned with regulatory expectations for Part 7.6 matters and for dispute resolution evidence; preserve client written disclosures and acknowledgements where feasible.

By focusing on written consents and authorisations, diligent product classification, robust documentation of “reasonable steps”, and ongoing monitoring, licensees and their distributors can create an evidentiary trail that aligns to the modified application of Part 7.6 set out in the declaration.