The best interests duty was added to the National Consumer Credit Protection Act following the 2019 royal commission and applies to every mortgage broker providing credit assistance to a consumer. It requires the broker to act in the consumer's best interests, to prioritise the consumer's interests where they conflict with the broker's or anyone else's, and to be able to show how they did so. ASIC's guidance sets out what a reasonable process looks like: understanding the client's needs, considering a range of products, and recommending on the merits.
The duty reaches into retention work. A broker who keeps a client with a lender because a move would trigger a clawback, when a move would clearly serve the client better, has a conflict to manage and document. Equally, recommending a no-clawback lender because it suits the broker rather than the client is the same problem from the other side.
In practice, repricing sits comfortably inside the duty: securing a lower rate on the client's existing loan without the cost and disruption of a refinance is frequently the outcome that serves them best, and documenting the comparison is straightforward.