Australian Financial Services Licensing (AFSL) Forum

#4079 Reply

Hi there,

 

Thanks for your query.

 

The anti-hawking provisions are themselves deemed financial services laws.  Financial services licensees have an obligation to ensure that their representatives comply with financial services laws.  Therefore the representatives must be compliant with the hawking provisions.  The provisions are set out in sections 736, 992A and 992AA of the Corporations Act.  In general terms they stipulate that financial products should not be offered for issue or sale when an unsolicited meeting or telephone call has taken place with a retail client.

 

The hawking provisions therefore function to control the promotion and sale of particular financial products, not financial services.

 

You should also be aware of the general rules on making unsolicited telephone calls and charging for the supply of unsolicited financial services.

 

If you have any further queries regarding the provisions, please do not hesitate to contact our office for assistance.

 

Author: David Court

Co-contributor: James Tselios

 

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