Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_766b:p1
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 766B (pt 1/2)
Character Range: 63423–66087

766B  Meaning of financial product advice

 (1) For the purposes of this Chapter, financial product advice means a recommendation or a statement of opinion, or a report of either of those things, that:
 (a) is intended to influence a person or persons in making a decision in relation to a particular financial product or class of financial products, or an interest in a particular financial product or class of financial products; or
 (b) could reasonably be regarded as being intended to have such an influence.
However, the provision or giving of an exempt document or statement is not to be taken to be a provision of financial product advice.

 (2) There are 2 types of financial product advice: personal advice and general advice.

 (3) For the purposes of this Chapter, personal advice is financial product advice that is given or directed to a person (including by electronic means) in circumstances where:
 (a) the provider of the advice has considered one or more of the person's objectives, financial situation and needs; or
 (b) a reasonable person might expect the provider to have considered one or more of those matters.

 (4) For the purposes of this Chapter, general advice is financial product advice that is not personal advice.

 (5) The following advice is not financial product advice:
 (a) advice given by a lawyer in his or her professional capacity, about matters of law, legal interpretation or the application of the law to any facts;
 (b) except as may be prescribed by the regulations—any other advice given by a lawyer in the ordinary course of activities as a lawyer, that is reasonably regarded as a necessary part of those activities;
 (c) except as may be prescribed by the regulations—advice given by a tax agent registered under Part VIIA of the Income Tax Assessment Act 1936, that is given in the ordinary course of activities as such an agent and that is reasonably regarded as a necessary part of those activities.

 (6) If:
 (a) in response to a request made by a person (the inquirer) to another person (the provider), the provider tells the inquirer the cost, or an estimate of the likely cost, of a financial product (for example, an insurance product); and
 (b) that cost or estimate is worked out, or said by the provider to be worked out, by reference to a valuation of an item (for example, a house or car to which an insurance policy would relate), being a valuation that the provider suggests or recommends to the inquirer;
the acts of telling the inquirer the cost, or estimated cost, and suggesting or recommending the valuation, do not, of themselves, constitute the making of a recommendation (or the provision