Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:4:p49
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 4 (pt 49/60)
Character Range: 946584–949297

must set out:
 (a) the following:
 (i) the advice given to the client by the providing entity;
 (ii) if information or a statement required by subsections 947D(2) and (3) is given—the information and statement; or
 (b) the following:
 (i) brief particulars of the recommendations made and the basis on which the recommendations are made;
 (ii) if information under subsection 947D(2) is given—brief particulars of the information;
 (iii) if a statement under subsection 947D(3) is given—an acknowledgement that the statement has been given.
 (2) The providing entity may keep the record in any form, for example, a tape recording.
 (3) The providing entity must keep the record for 7 years after the day on which the further advice is provided.

7.7.09A  Situations in which Statement of Advice is not required: small investments threshold
 (1) For subparagraph 946AA(1)(a)(i) of the Act, the threshold amount is $15 000.
 (2) Subregulations (3) and (4) apply to each of the following financial products:
 (a) shares;
 (b) rights issues;
 (c) options over unissued shares;
 (d) partly paid shares;
 (e) debentures;
 (f) stapled securities;
 (g) securities in a CCIV.
 (3) For small investment advice to a client that is related to the acquisition of one or more of the financial products listed in paragraphs (2)(a) to (g), the threshold amount in subregulation (1) must be calculated to include the total value of all financial investments that would be committed to by the client if the advice were accepted by the client.
Examples:
1 If the small investment advice related to the purchase of options over unissued shares the total cost of the options would be both the cost to buy the options and the cost of the exercise price on the face of the options.
2 If the small investment advice relates to the purchase of partly paid shares the total cost of the shares must be calculated as if all calls had been made on the shares.
Note: The total value of all financial investments in relation to which small investment advice is provided is calculated in accordance with subsection 946AA(2) of the Act.
 (4) For small investment advice to a client that is related to the disposal of one or more of the financial products listed in paragraphs (2)(a) to (g), the threshold amount in subregulation (1) must be calculated to include the total value of all financial investments that would be disposed of by the client if the advice were accepted by the client.
Note: The total value of all financial investments in relation to which small investment advice is provided is calculated in accordance with subsection 946AA(2) of the Act.
 (5) Subregulations (6) and (7) apply to each of the following financial products: