Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Division 2 - Best interests obligations  

Subdivision D - Where resulting advice still based on incomplete or inaccurate information  

SECTION 961H   RESULTING ADVICE STILL BASED ON INCOMPLETE OR INACCURATE INFORMATION  

961H(1)  
If it is reasonably apparent that information relating to the objectives, financial situation and needs of the client on which the advice is based is incomplete or inaccurate, the provider must, in accordance with subsections (2) and (3), warn the client that:


(a) the advice is, or may be, based on incomplete or inaccurate information relating to the client ' s relevant personal circumstances; and


(b) because of that, the client should, before acting on the advice, consider the appropriateness of the advice, having regard to the client ' s objectives, financial situation and needs.

961H(2)  
The warning must be given to the client at the same time as the advice is provided and, subject to subsection (3), by the same means as the advice is provided.

961H(3)  
If a Statement of Advice is the means by which the advice is provided, or is given to the client at the same time as the advice is provided, the warning may be given by including it in the Statement of Advice.

Note: The Statement of Advice must at least contain a record of the warning (see paragraphs 947B(2)(f) and 947C(2)(g) ).

961H(4)  
If 2 or more individuals provide the advice and one of those individuals provides a warning in accordance with this section, the other individuals are taken to have complied with this section.

961H(5)  
Nothing in this section affects the duty of the provider under section 961B to make reasonable inquiries to obtain complete and accurate information.

Note: A responsible licensee or an authorised representative may contravene a civil penalty provision if a provider fails to comply with this section (see sections 961K and 961Q ). The provider may be subject to a banning order (see section 920A ).


 

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