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General Advice Warning

What is General Advice?

General advice is any advice that is not personal advice. Personal advice requires the issuing of a Statement of Advice (SOA).

When must a General Advice Warning be given?

The warning must be given at the same time the advice is given and by the same means. If the advice is given orally, the warning must be given orally. If the advice is in writing, the warning must be in writing and in the same document that contains the advice.

What is the General Advice Warning?

In Writing:

  • The advice has been prepared without taking into account the client’s objectives, financial situation and needs;
  • Because of that, the client should, before acting on the advice, consider the appropriateness of the advice in regard to the client’s objectives, financial situation and needs; and
  • If the advice relates to the acquisition, or possible acquisition, of a financial product the client should obtain a product disclosure statement relating to a product and consider the statement before making a decision about whether to acquire the product.

Suggested wording:

This advice does not take into any of your objectives, financial situation or needs. For this reason, before you act on this advice, you should consider the appropriateness of the advice taking into account your own objectives, financial situation and needs.Before you make a decision about whether to acquire the policy, you should obtain and read the product disclosure statement.

Orally:

This advice does not take into any of your objectives, financial situation or needs. For this reason, before you act on this advice, you should consider the appropriateness of the advice taking into account your own objectives, financial situation and needs.Before you make a decision about whether to acquire the policy, you should obtain and read the product disclosure statement.

Class Order (CO05/1195) provideds relief to allow shorter, simpler warnings than the prescribed written warnings. The simpler warning needs to be given only once in any telephone conversation or face to face meeting where general advice is provided to the client. You must advise the client that the advice is general and may not be appropriate for them.

Suggested wording:

Examples;

  • This advice is general, it may not be right for you.
  • This advice is not tailored, so you can’t assume it will be suitable for you.
  • This advice may not be suitable for you because it is general advice.