Document ID: chunk:federal_register_of_legislation:C2005C00498:clause:1_945b
Version: federal_register_of_legislation:C2005C00498
Segment Type: clause
Provision Reference: sch 1 cl 945B
Character Range: 390187–391648

945B  Obligation to warn client if advice based on incomplete or inaccurate information

 (1) If:
 (a) the advice is based on information relating to the client's relevant personal circumstances that is incomplete or inaccurate; and
 (b) the providing entity knows that the information is incomplete or inaccurate, or is reckless as to whether it is incomplete or inaccurate;
the providing entity must, in accordance with subsections (2) and (3), warn the client that:
 (c) the advice is, or may be, based on incomplete or inaccurate information relating to the client's relevant personal circumstances; and
 (d) because of that, the client should, before acting on the advice, consider the appropriateness of the advice, having regard to the client's relevant personal circumstances.

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

 (2) The warning must be given to the client at the same time as the advice is provided and, subject to subsection (3), by the same means as the advice is provided.

 (3) If the Statement of Advice (see Subdivision C) is the means by which the advice is provided, or is given to the client at the same time as the advice is provided, the warning may be given by including it in the Statement of Advice.

Note: The Statement of Advice must at least contain a record of the warning—see paragraphs 947B(2)(f) and 947C(2)(g).

Subdivision C—Requirement for a Statement of Advice to be given