FAQ

What are the differences between personal advice and general advice obligations under the Corporations Act?

Under s766B(3) of the Corporations Act, personal advice is given where the adviser has considered one or more of the client’s objectives, financial situation, or needs, or where a reasonable person might expect those matters to be considered. General advice, by contrast, does not consider any of these individual circumstances.

Key differences include:

ObligationPersonal AdviceGeneral Advice
Best Interests Duty (s961B)YesNo
Appropriate Advice (s961G)YesNo
Statement of Advice (SOA)Required for retail clientsNot required
Conflicted Remuneration ProhibitionsApplyApply
Disclosure RequirementsDetailed, tailoredGeneral disclaimers

Advisers must ensure all communications accurately reflect whether advice is personal or general. ASIC has prosecuted cases where “general” advice presentations contained implicit personal recommendations. For a deeper exploration of general advice concepts, practical examples, and the associated compliance risks, see Assured Support’s General Advice article, which outlines how to communicate within the general advice framework while avoiding inadvertent personal advice.

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