Australian Financial Services Licensing (AFSL) Forum

#3260 Reply

KMack

Could you please consider the following scenario for FDS purposes:

– An adviser of Licensee A takes on a new client who was previously a client of an adviser of Licensee B (unrelated advisers and Licensees).

– There are no arrangements/contracts/agreements between the two advisers in relation to the client (ie the client simply decides to terminate with one adviser, and commence dealings with the other).

– The adviser of Licensee A initiates their first ongoing service level agreement with that new client, which may or may not have similar types and amounts of fees as those charged by their previous adviser.

It is my understanding that the definitions of “assignors” and “assignees” for FDS purposes, relate to the sale/purchase of clients and don’t apply to the above scenario, where the client makes a decision to change adviser.

It would follow then, that the adviser of Licensee A does not need to contact the adviser from Licensee B, for any information to include in an FDS, as Licensee A’s first FDS 12 month period is from the date their agreement with the client commences, and the previous adviser dealings are not relevant.
Can you please confirm/comment.

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