Document ID: chunk:federal_register_of_legislation:C2025C00185:section:766b:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 766B (pt 1/3)
Character Range: 3033109–3035861

766B  Meaning of financial product advice, personal advice and general advice
 (1) 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.
 (1A) However, subject to subsection (1B), the provision or giving of an exempt document or statement does not constitute the provision of financial product advice.
 (1B) Subsection (1A) does not apply for the purpose of determining whether a recommendation or statement of opinion made by an outside expert, or a report of such a recommendation or statement of opinion, that is included in an exempt document or statement is financial product advice provided by the outside expert.
 (2) There are 2 types of financial product advice: personal advice and general advice.
 (3) 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 (otherwise than for the purposes of compliance with the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 or with regulations, or AML/CTF Rules, under that Act); or
 (b) a reasonable person might expect the provider to have considered one or more of those matters.
 (3A) However, the acts of asking for information solely to determine whether a person is in a target market for a financial product, and of informing the person of the result of that determination, do not, of themselves, constitute personal advice.
 (4) 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 registered tax agent or BAS agent, 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