Tutorial 5 Flashcards
What does asic recommend regarding when the FSG should be provided (2)
- Give in enough time to give client opportunity to consider it’s contents.
- Make FSG available on website and in offices.
Whos responsibility is giving the FSG?
Licensee responsibility.
What is the limit on providing the FSG in the case of time critical cases
5 days.
What needs to be provided in an FSG
- Title of FSG
- Date of FSG
- Name and contact details of licence
- Name and details of AR
- AR number
- Statement of Purpose of the FSG
- information about the kinds of services.
8, Renumberation details
What is a binder
An AR for an insurer. e.g. Claims processing for an insurer - for a backoffice payment
When to provide an FSG
As soon as practicable after it becomes apparent that a financial service will be or is likely to be provided.
What is required for time critical
- Client expressly instructs
2. It in not reasonably practical to provide the client with FST before the service is provided.
When is an FSG not required
- Not a retail client
- Financial Service relates to basic deposit products
- General information in public forum but only if the right disclaimers is provided at the start.
- Already received an up to date FSG
If general advice in a public forum what may be provided
- Name and contact details of providing entity
- Info on renumeration that anyone will receive
- Information about associations or benefits that could influence the advice
General advice warning and no FSG info, which one needs to be given first and which one can be given in the middle of a public presentation?
FSG info must be given first.
When can you NOT give an FSG to a client’s agent (e.g) EPOA?
when they are a licensee
Can you just tell a client that the FSG is available on the website?
No
Can you arrange for an intermediary to provide an FSG. e.g. Stockbroker recommending stocks to a FPs client
Yes
Is failure to provide an FSG a strict liability offense?
Yes
Can you combine SOA and FSG
No
Can you combine FSG and PDS
Yes but under strict provisions (product providers)
Do you need to provide a new FSG with each piece of advice ?
No, only if updated.
How many days to give asic report if breach or likely breach
10 days
When must you give a breach report (conditions)
a) You breach obligations
b) or likely to breach
c) the breach is significant
What is the max penalty for not reporting a breach?
For an individual, —$1.05 million or three times the benefit derived or loss avoided, or
imprisonment for two years, or both;; and (b) for a company, the greater of $10.5 million
or three times the benefit derived or loss avoided, or 10% annual turnover capped at $525
million for the preceding 12 months before the contravention or start of the contravention.
(Note: See s912D(1B), s912D(3), s1317E, s1317G and Sch 3)
if the RM walks out the door is that reportable
Yes, if there is not someone to replace.
is it a breach to not provide cashflow projections (as afsl)
Yes
If there is a benefit, but it is trivial, does this satisfy best interest?
No, does not satisfy BID
When will scoping advice lead to breach of BID
When you scope out advice that is inconsistent with their relevant circumstances and the advice they are seeking.
modified BID applies when (2)
- Basic banking or General insurance, consumer credit
2. Employee of an ADI
Modified BID needs to satisfy:
First Three Steps of safe harbour
What is difference between relevant circumstances and scope
RC = Their situation Scope = What advice you will be providing
