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 D - Content of Statement of Advice  

SECTION 947C   STATEMENT OF ADVICE GIVEN BY AUTHORISED REPRESENTATIVE - MAIN REQUIREMENTS  

947C(1)  
This section applies if the providing entity is an authorised representative.

947C(2)  
Subject to subsection (3) and to the regulations (see subsection (4)), the Statement of Advice must include the following statements and information:


(a) a statement setting out the advice; and


(b) information about the basis on which the advice is or was given; and


(c) a statement setting out the name and contact details of the providing entity; and


(d) a statement


(i) setting out the name and contact details of the authorising licensee, or of each of the authorising licensees; and

(ii) stating that the providing entity is the authorised representative of that licensee or those licensees; and


(e) information about the remuneration (including commission) or other benefits that any of the following is to receive that might reasonably be expected to be or have been capable of influencing the providing entity in providing the advice:


(i) the providing entity;

(ii) an employer of the providing entity;

(iii) the authorising licensee, or any of the authorising licensees;

(iv) an employee or director of the authorising licensee, or of any of the authorising licensees;

(v) an associate of any of the above;

(vi) any other person in relation to whom the regulations require the information to be provided; and


(f) information about:


(i) any other interests, whether pecuniary or not and whether direct or indirect, of the providing entity, any employer of the providing entity, the authorising licensee or any of the authorising licensees, or of any associate of any of those persons; and

(ii) any associations or relationships between the providing entity, any employer of the providing entity, the authorising licensee or any of the authorising licensees, or any associate of any of those persons, and the issuers of any financial products;
that might reasonably be expected to be or have been capable of influencing the providing entity in providing the advice; and


(g) if section 961H requires a warning to be given to the client in relation to the advice - a statement setting out, or recording, the warning required by that section; and


(h) any other statements or information required by the regulations; and


(i) unless in accordance with the regulations, for information to be disclosed in accordance with paragraph (e) and subparagraph (f)(i), any amounts are to be stated in dollars.

947C(3)  
Subject to subsection (4), the level of detail about a matter that is required is such as a person would reasonably require for the purpose of deciding whether to act on the advice as a retail client.

947C(4)  
The regulations may provide all or any of the following:


(a) that a provision of subsection (2) does not apply in a particular situation;


(b) that particular information is not required by a provision of subsection (2), either in a particular situation or generally;


(c) a more detailed statement of the information that is required by a provision of subsection (2), either in a particular situation or generally.

947C(5)  
The Statement of Advice:


(a) must also include any information required by section 947D , if applicable; and


(b) may also include other information.

947C(6)  
The statements and information included in the Statement of Advice must be worded and presented in a clear, concise and effective manner.


 

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