media release

AD09-92 ASIC consolidates guidance on conduct and disclosure obligations for financial advisers

Published

ASIC has released an updated Regulatory Guide 175 Licensing: Financial product advisers – Conduct and disclosure (RG 175).

The update is a consolidation of guidance previously provided by ASIC, including guidance through ASIC’s frequently asked questions about financial services and media advisories. The update incorporates changes in the law since the regulatory guide was last updated on 28 May 2007 (see attachment for a list of consolidated information).

ASIC Class Order 04/1556 Statements of Additional Advice (CO 04/1556) will be revoked on 1 September 2009 as part of this process because it has been superseded by subsequent regulations.

ASIC has not changed its approach to administering Part 7.7 of the Corporations Act 2001 as part of this update.

ASIC will keep this policy under review, especially in light of changing market conditions, legal developments and other circumstances.

Download:

  • ASIC Regulatory Guide 175 Licensing: Financial product advisers – Conduct and disclosure (RG 175)

  • ASIC Class Order 09/38, Revocation of CO 04/1556 (CO 09/38)

Or call the ASIC Infoline on 1300 300 630..

Attachment - What information has been consolidated in the updated RG 175?

Relevant information from the following ASIC frequently asked questions about financial services and information/media releases has been consolidated in the updated RG 175:

  • QFS 38 25/11/2003 Can AFS licensees (including financial planners or advisers) call themselves 'independent' under s923A if they receive trail commissions?

  • QFS 129 Can I combine a Product Disclosure Statement (PDS) or Short-Form PDS and Financial Services Guide (FSG) into one document?

  • QFS 153 17/12/2004 I am a financial planner. What particular requirements apply to me under the Corporations Act when I give advice about the tax implications of financial products?

  • QFS 154 13/12/2004 I am a financial planner. Do I need to give a client a Statement of Advice during a fact-finding process?

  • QFS 157 05/08/2005 Do I need to follow the exact wording in the Corporations Act when I give a general advice warning?

  • QFS 158 05/08/2005 Can I give a client general advice about a financial product if I have information about their personal circumstances?

  • QFS 160 22/12/2005 Are employers retail clients in relation to financial product advice about employer ‘default’ funds under super choice?

  • IR 05-62 Simpler warnings for oral general advice

  • IR 05-47 Relief for advertising by product issuers

  • IR 04-46 ASIC provides relief for financial services guides given in time critical situations

  • IR 04-61 ASIC provides guidance on Statements of Advice

  • MR 04-62 FSR disclosure to be clear concise and effective

  • MR 04-236 ASIC provides further guidance on Statements of Advice

RG 175 also reflects modifications to Part 7.7 by law reform, incorporating:

  • s946AA, s946B(7) and reg 7.7.09A which provides additional exemptions for statements of advice;

  • s761GA on the meaning of retail clients and sophisticated investors; and

  • reg 7.7.09B which permits incorporation of information by reference in statements of advice. Reg 7.7.09B (introduced in 2007) makes CO 04/1556 unnecessary.