Australian Financial Services Licensing (AFSL) Forum

Home Forums Australian Financial Services Licensing (AFSL) Forum Basis for Recommendation involving a Financial Product Re: Basis for Recommendation involving a Financial Product

#3145 Reply

Clare McAdam
Member

Hi James,

In essence, the recommendation needs to currently meet the reasonable basis obligations in s945A. Our view is that this applies and relates to both the strategy and the product whether it be the platform/wrap or underlying assets/funds.

Similarly, under best interests, the safe harbour steps require strategy recommendations (in RG 175,  ASIC is understandably very focused on strategy first and product second) and if reasonable investigation into financial products that might achieve the client: objectives and needs.

Once again, we think this investigation would address the specific platform/wrap and specific underlying financial products.

Contact us, if you want to seek legal advice

Kind Regards,

Author: Tim Nethercote

 

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