Financial Advisers Amendment Act 2010

  • repealed
  • Financial Advisers Amendment Act 2010: repealed, on 15 March 2021, pursuant to section 97(1) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
11 New heading and sections 21 to 25 substituted

The heading before section 21 and sections 21 to 25 are repealed and the following heading and sections substituted:

Disclosure obligations for personalised services for retail clients

21 What is disclosure obligation and when does it apply

(1)

A disclosure obligation under this Part is an obligation to make disclosure under or in accordance with sections 22 to 31.

(2)

A disclosure obligation applies only to a personalised service provided to a retail client.

(3)

Contravention of a disclosure obligation may give rise to an offence (see section 117).

22 Financial adviser must make disclosure before providing personalised service to retail client

(1)

A financial adviser who provides a personalised service to a retail client must disclose prescribed information to the client, in accordance with this Act and the regulations,—

(a)

before providing the service; or

(b)

if not practicable before, as soon as practicable after providing the service.

(2)

Subsection (1) does not apply to a QFE adviser acting in that capacity.

23 What financial adviser must disclose

(1)

Regulations for the purposes of prescribing disclosure for financial advisers under section 22 may require disclosure,—

(a)

for authorised financial advisers, in relation to any or all of the matters referred to in subsection (2).

(b)

for other financial advisers, in relation to any or all of the matters referred to in subsection (2)(a) to (g).

(2)

The matters are—

(a)

contact details:

(b)

the type of financial adviser:

(c)

financial adviser services provided (including financial products in relation to which a financial adviser service is provided):

(d)

fees:

(e)

material interests, relationships, or associations:

(f)

remuneration:

(g)

dispute resolution arrangements:

(h)

professional or business experience relevant to performance of a financial adviser service:

(i)

criminal convictions:

(j)

disciplinary proceedings:

(k)

adverse findings by a court or the Commission:

(l)

bankruptcy or other insolvency proceedings:

(m)

indemnity insurance:

(n)

matters required to be disclosed by the authorised financial adviser’s terms and conditions of authorisation.

24 Disclosure statement

(1)

Disclosure under section 22(1) must be made by 1 or more disclosure statements in accordance with the regulations.

(2)

A disclosure statement must—

(a)

be in writing; and

(b)

state when it was prepared; and

(c)

state the name, address, trading name (if any), telephone number, fax number, and email address of the financial adviser; and

(d)

be—

(i)

provided to the client; or

(ii)

delivered or sent to the client at the client’s last known address or an address (including an electronic address) specified by the client for that purpose.

(3)

Regulations may provide for the form that a disclosure statement must take.

25 QFE must make disclosure before personalised service provided to retail client

(1)

A QFE or a member of a QFE group that, acting through a QFE adviser, provides a personalised service to a retail client must ensure that prescribed information is disclosed to the client, in accordance with this Act and the regulations,—

(a)

before the service is provided; or

(b)

if not practicable before, as soon as practicable after the service is provided.

(2)

Regulations for the purposes of this section may require disclosure in relation to any or all of the following matters:

(a)

contact details:

(b)

the type of financial adviser:

(c)

dispute resolution arrangements:

(d)

matters required to be disclosed by the QFE’s terms and conditions of a grant of QFE status:

(e)

whether the QFE or member of the QFE group provides any other licensed service.

(3)

Regulations may provide for the form that the disclosure must take.