What you can and cannot say The table (below) summarises the type of advice that you can and cannot provide (i.e. what is caught and not caught by the Act). Category of Advice You Can Examples You Cannot Examples Apply for a credit product Suggest to apply for credit without referring to a particular credit product or credit provider Suggest to approach a range of credit providers who offer a range of credit products ‘obtain a loan for your investment property’ ‘obtain a loan for your investment property. Suitable lenders include Westpac, ANZ and CBA’ Suggest to apply for a particular credit product with a particular credit provider ‘the Fixed Investment Loan from Westpac is suitable for your investment property’ ‘obtain a loan for your investment property. Suitable lenders include ANZ, CBA, and NAB who are all currently offering fixed interest home loans’ Increase the limit of an existing credit contract Assume the continuation of an existing credit contract Suggest that the consumer increase loans with tax deductable interest repayments and reduce loans with interest repayments ‘you should consider repaying your home mortgage and increasing the value of your investment property mortgage’ Suggest to increase the limit in a particular credit product ‘you should increase the amount of your Fixed Investment Loan with ANZ’ ‘you should consolidate all your debts into your existing Westpac personal loan’ Remain in a credit product Assume the continuation of an existing credit product (e.g. preparation of financial advice which “you currently have a Fixed Investment Loan with NAB” Suggest to remain in a credit product ‘you should remain in your current investment loan as it is the best currently available’
presupposes continuation of existing home loan) ‘you should consolidate all your debts into your existing ANZ personal loan’ Activities in the ‘cannot’ column amount to providing credit assistance. The licensee considers the tipping point when considering whether advice is credit assistance is whether or not the advice is generic advice with regard to strategies. You can say, for example: ‘“your personal loan interest rate is well above the market rate’; ‘it is desirable that your mortgage has the following features...’; ‘you should repay your Westpac credit card debt as it has the highest interest rate amongst your debts’; ‘you should approach your lender and renegotiate your loan on the basis of hardship’; ‘you should make larger loan repayments’; or ‘you should consolidate your credit card debt into one credit card with a low interest rate’ (not naming products). What you can and cannot do The table (below) summarises the type of dealing services that you can and cannot provide (i.e. what is caught and not caught by the Act). Category of Dealing Permitted Dealing Examples Prohibited Dealing Examples Apply for a credit product You cannot assist consumers to apply for a credit product No permitted dealing Assisting to apply for a particular credit product with a particular credit provider Completing or lodging application forms for a consumer Increase the limit in a credit product You cannot assist consumers to increase their limit in a credit No permitted dealing Assisting to increase the limit in a particular credit product Completing or lodging forms which will increase the limit in a credit product
similar previous breach, the more likely the new breach will be significant, as this indicates a systemic problem. breach reduces the ability or capacity of the licensee to provide the financial services; and the breach reflects broader compliance inadequacies, then it is probably significant; and loss to clients is likely to be a significant breach, unless it is an isolated incident concerning a minimal/immaterial amount.
Working Document 10 - Complaints Register [Please refer to 6.4.1 of the Procedures manual.] Client name Date received Financial product or service concerned Brief details of complaint Evidence of breach? EDR scheme involved? Need to notify PI insurer? Action taken (including recording any breaches on breach register) Date resolved
## (“the Licensee”) is the holder of Australian financial services licence no. . of (“the Employee”) is authorised to provide the following financial services on behalf of the Licensee: Provide financial product advice on SMSFs; Provide financial product advice on superannuation products in relation to a person’s existing holding in a superannuation product but only to the extent required for: Making a recommendation that the person establish a SMSF; or Providing advice to the person on contributions or pensions under a superannuation product; Provide class of product advice on the following: Superannuation products; Securities; Simple managed investment schemes; General insurance products; Life risk insurance products; Basic deposit products; and Arrange to deal in an interest in a SMSF [Note – the above list cannot be broader than the authorising licensee’s AFSL authorisations. You can restrict the list to make it narrower than the authorising licensees authorisations (eg. Provide general financial product advice on SMSFs only)] The Licensee may revoke this Authorisation at any time by giving the Employee written notice of such revocation. The Employee cannot be authorised to provide a financial service by any other licensee (or authorised representative) without the express written consent of the Licensee. Signed by on behalf of ##. …………………………….. Signature …………………………………. Date …………………………….. Signature of Employee …………………………….. Name of employee …………………………………. Date Working Document 13 – Register of Representatives [Please refer to 7.4.11 of the Procedures Manual.] Full Name Role Type (eg. Scope of authority (full Authorised
Working Document 17 - Representative training register [Please refer to 9.7 of the Procedures manual.] Representative name: Period of register: Date Event Provider CPD points (if applicable) Areas covered Duration Results Documentation attached e.g. 18 Sep 13 e.g. Responsible Manager seminar e.g. Compact – Compliance & Training e.g. NA e.g. Responsible Manager obligations and liabilities, and licence obligations e.g. Four hours (including breaks) e.g. Successfully completed e.g. Certificate of attendance Total of CPD points (if applicable)