CORPORATIONS ACT 2001
Ch 7 inserted by No 122 of 2001, s 3, Sch 1, Pt 1
1] (effective 11 March 2002).
As Act No 122 of 2001 repealed Ch 7 and 8 the history notes for Ch 7 use
and references to the former provisions have been removed.
Pt 7.7A inserted by No 67 of 2012, s 3, Sch 1 (effective 1 July 2012).
Div 2 inserted by No 68 of 2012, s 3, Sch 1 (effective 1 July 2012).
Where resulting advice still based on incomplete or inaccurate information
|| View history reference
Subdiv D inserted by No 68 of 2012, s 3, Sch 1 (effective 1 July 2012).
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.
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.
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
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.
Nothing in this section affects the duty of the provider under section
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
). The provider may be subject to a banning order (see section
S 961H inserted by No 68 of 2012, s 3, Sch 1 (effective 1 July 2012).