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Unformatted text preview: andards.com.au paid. BE APPROPRIATELY LICENSED
Generally, a person who carries on a ﬁnancial services ASIC will be issuing guidance for advisers about
switching advice. See chapter ﬁve of this booklet for more
information. business, including providing ﬁnancial product advice,
needs to be licensed by ASIC or authorised to give advice
on behalf of a licensee (an authorised representative).
Certain exemptions apply. CHOICE OF SUPERANNUATION FUND ■ 11 COMPLY WITH DISCLOSURE OBLIGATIONS
If an adviser gives either general or personal ﬁnancial
advice, they must prepare and provide a ﬁnancial services
guide. The ﬁnancial services guide should conﬁrm
whether the adviser is authorised to give advice about
For personal advice, advisers must also provide their retail
clients with a statement of advice, generally at the time
the advice is given. The statement of advice must clearly
and unambiguously set out the advice and the basis of the
Where advisers recommend a switch of funds, the
statement of advice must also include information about
speciﬁc costs and consequences of the switch, including
loss of any beneﬁts. DISCLOSE ALL COMMISSIONS
Financial advisers must disclose all commissions and
other payments they expect to receive as a result of having
an employee or employer become or remain a member
of a particular fund. This includes ‘soft’ dollar payments
that might be capable of inﬂuencing their advice, such as
subsidised business equipment, adviser conferences and
volume bonuses. 12 ■ CHOICE OF SUPERANNUATION FUND 03 what you can expect CHOICE OF SUPERANNUATION FUND ■ 13 03 what you can expect CONSEQUENCES OF
Where an employer does not meet their choice of
superannuation fund obligations for their eligible
employees, they may be liable for the choice shortfall,
other penalties and/or prosecution.
The choice shortfall applies where the employer has
made contributions for an eligible employee to a
complying fund but did not:
■ offer the employee a choice of superannuation fund and the empl...
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This note was uploaded on 03/25/2014 for the course FOBE 302 taught by Professor X during the One '13 term at Macquarie.
- One '13