CORPORATIONS ACT 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7 - FINANCIAL SERVICES DISCLOSURE  

Division 3 - Additional requirements for personal advice provided to a retail client  

Subdivision C - Requirement for a Statement of Advice to be given  

SECTION 946AA   SMALL INVESTMENTS - STATEMENT OF ADVICE NOT REQUIRED  

Small investments generally

946AA(1)  
The providing entity does not have to give the client a Statement of Advice for particular advice (the small investment advice ) if:


(a) both of the following apply:


(i) an amount (the threshold amount ) has been prescribed by regulations made for the purposes of this paragraph;

(ii) the total value of all financial investments in relation to which the advice is provided, as worked out under subsection (2), does not exceed the threshold amount; and


(b) the advice does not relate to any of the following:


(i) a derivative;

(ii) a general insurance product;

(iii) a life risk insurance product (except to the extent that advice about a superannuation product relates to a life risk insurance product); and


(c) the advice does not relate to any superannuation product or RSA product, unless the client already has an interest in the product.

946AA(1A)  
(Repealed by No 70 of 2015, s 3, Sch 1[35] (effective 1 July 2015).) Total value of investments

946AA(2)  
For the purposes of paragraph (1)(a), the total value of investments in relation to which the small investment advice is provided is:


(a) if the advice solely relates to the acquisition of all (or part) of one or more financial products, or of an increased interest in one or more financial products - the sum of the values (the total acquisition value ) of each acquisition; or


(b) if the advice solely relates to the disposal of all (or part) of one or more financial products, or of a part of an interest in one or more financial products - the sum of the values (the total disposal value ) of each disposal; or


(c) if the advice relates to both an acquisition, and a disposal, mentioned in paragraphs (a) and (b):


(i) the total acquisition value; or

(ii) if the total disposal value exceeds the total acquisition value - the total disposal value.
Method for working out threshold amount

946AA(3)  
Regulations made for the purposes of paragraph (1)(a) may prescribe how the threshold amount is to be worked out in relation to particular kinds of financial products.

Record of advice

946AA(4)  
The providing entity must keep a record of the small investment advice and, in doing so, must comply with any applicable requirements of regulations made for the purposes of this subsection.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

946AA(5)  
The providing entity must, at the applicable time, give the client:


(a) a copy of the record of the small investment advice; and


(b) the information that would, if a Statement of Advice were to be given, be required to be in the Statement by paragraphs 947B(2)(d) and (e) , or 947C(2)(e) and (f) , as the case requires.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

946AA(6)  
For the purposes of subsection (5), the applicable time for something to be given relating to the small investment advice is the time:


(a) when, or as soon as practicable after, the advice is provided; and


(b) in any event - before the providing entity provides the client with any further financial service arising out of, or connected with, the advice.


 

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