Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_946b
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 946B
Character Range: 392011–394370

946B  Situations in which a Statement of Advice is not required

Execution‑related telephone advice

 (1) Subsections (2) to (4) apply to advice (execution‑related telephone advice) in relation to which the following conditions are satisfied:
 (a) the execution‑related telephone advice is given by telephone; and
 (b) the execution‑related telephone advice:
 (i) relates to financial products that are able to be traded on a licensed market; and
 (ii) is given by the providing entity as an integral part of the execution of a transfer of, or order for, those financial products; and
 (c) the execution‑related telephone advice does not also contain any other kind of financial product advice.

 (2) The providing entity does not have to give the client a Statement of Advice if, before the execution‑related telephone advice is provided, the client agrees to a Statement of Advice not being given in respect of the advice, or advice of that kind.

 (3) However, at the same time as the advice is provided to the client, the client must be given the information that would, if a Statement of Advice were to be given, be required to be in the Statement by paragraphs 947B(2)(d) and (e), or 947C(2)(e) and (f), as the case requires.

 (3A) The providing entity must keep a record of the advice and, in doing so, must comply with any applicable requirements of regulations made for the purposes of this subsection.

Note 1: Failure to comply with this subsection is an offence (see subsection 1311(1)).

Note 2: For the client's right to a record of the advice, see subsections 942B(8) and 942C(8).

Certain basic deposit and other products

 (5) The providing entity does not have to give the client a Statement of Advice if the advice relates to any or all of the following:
 (a) a basic deposit product;
 (b) a facility for making non‑cash payments (see section 763D) that is related to a basic deposit product;
 (c) a financial product of a kind prescribed by regulations made for the purposes of this paragraph.

 (6) However, if subsection (5) applies and the client is not given a Statement of Advice, the client must instead, when, or as soon as practicable after, the advice is provided, be given the information that would be required to be in the Statement of Advice by paragraphs 947B(2)(d) and (e), or 947C(2)(e) and (f), as the case requires.