Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Division 2 - Best interests obligations  

Subdivision E - Provider to give priority to the client ' s interests  

SECTION 961J   CONFLICT BETWEEN CLIENT ' S INTERESTS AND THOSE OF PROVIDER, LICENSEE, AUTHORISED REPRESENTATIVE OR ASSOCIATES  

961J(1)  
If the provider knows, or reasonably ought to know, that there is a conflict between the interests of the client and the interests of:


(a) the provider; or


(b) an associate of the provider; or


(c) a financial services licensee of whom the provider is a representative; or


(d) an associate of a financial services licensee of whom the provider is a representative; or


(e) an authorised representative who has authorised the provider, under subsection 916B(3) , to provide a specified financial service or financial services on behalf of a financial services licensee; or


(f) an associate of an authorised representative who has authorised the provider, under subsection 916B(3) , to provide a specified financial service or financial services on behalf of a financial services licensee;

the provider must give priority to the client ' s interests when giving the advice.

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 ).

961J(2)  


If:


(a) the provider is:


(i) an agent or employee of an Australian ADI; or

(ii) otherwise acting by arrangement with an Australian ADI under the name of the Australian ADI; and


(b) the subject matter of the advice sought by the client relates only to the following:


(i) a basic banking product;

(ii) a general insurance product;

(iii) consumer credit insurance;

(iv) a combination of any of those products;

subsection (1) does not apply to the extent that the advice relates to a basic banking product or a general insurance product or a combination of those 2 products.

961J(3)  


Subsection (1) does not apply to the extent that the subject matter of the advice sought by the client is a general insurance product.

 

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