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It appears that your assumptions are technically correct, s947D of the Corporations Act deals with specific products, not class of products, meaning that it does not apply when using cash for a recommendation if no specific source is identified.
However it is important to keep in mind that an advice provider is subject to best interest obligations in relation to the advice. This involves, among other responsibilities, the provider acting in the best interests of the client and only providing advice that is appropriate to the client.
It appears that if you were to proceed with the above situation, using cash for a recommendation when no specific source is identified may in fact breach the best interests obligation.
Please contact our office if you require more information.
Author: David Court
Co-contributor: Clare McAdam