Document ID: chunk:federal_register_of_legislation:C2013C00529:clause:1_961j
Version: federal_register_of_legislation:C2013C00529
Segment Type: clause
Provision Reference: sch 1 cl 961J
Character Range: 16282–18015

961J  Conflict between client's interests and those of provider, licensee, authorised representative or associates
 (1) If the provider knows, or reasonably ought to know, that there is a conflict between the interests of the client and the interests of:
 (a) the provider; or
 (b) an associate of the provider; or
 (c) a financial services licensee of whom the provider is a representative; or
 (d) an associate of a financial services licensee of whom the provider is a representative; or
 (e) an authorised representative who has authorised the provider, under subsection 916B(3), to provide a specified financial service or financial services on behalf of a financial services licensee; or
 (f) an associate of an authorised representative who has authorised the provider, under subsection 916B(3), to provide a specified financial service or financial services on behalf of a financial services licensee;
the provider must give priority to the client's interests when giving the advice.
Note: A responsible licensee or an authorised representative may contravene a civil penalty provision if a provider fails to comply with this section (see sections 961K and 961Q). The provider may be subject to a banning order (see section 920A).
 (2) Subsection (1) does not apply if:
 (a) the subject matter of the advice sought by the client is solely a basic banking product; and
 (b) the provider is an agent or employee of an Australian ADI, or otherwise acting by arrangement with an Australian ADI under the name of the Australian ADI.
 (3) Subsection (1) does not apply if the subject matter of the advice sought by the client is solely a general insurance product.

Subdivision F—Responsibilities of licensees under this Division