FAE · ASIC Financial Adviser Exam

Advice and disclosure: FSG, SOA, PDS and warnings

The retail/wholesale line, the difference between general and personal advice, and the disclosure documents and warnings that go with each.

Financial advice regulatory and legal obligations2 min read3 sections

Checked against: Corporations Act 2001 (Cth), compilation No. 149 (19 Sep 2026) ss761G, 766B, 941A-942D, 946AA-947E, 949A, 1012A, 1019B; Corporations Regulations 2001, compilation No. 214 (1 Sep 2026) regs 7.1.18, 7.6.02AF, 7.7.09A, 7.7.10AE; ASIC RG 175, RG 244.. Independent prep, not endorsed by ASIC.

Must-know for the exam

Superannuation products are always retail (s761G(6)).
Wholesale tests include a product value of $500,000 or more, or an accountant's certificate: net assets of $2.5m or gross income of $250,000 in each of the last 2 years.
For advice and disclosure purposes an accountant's certificate is valid for 2 years (reg 7.6.02AF).
An FSG must be given before the service is provided, subject to exceptions (s941D); it may consist of two or more documents given at the same time (s942D).
A general advice warning must be given at the same time and by the same means as the advice (s949A(3)).
No SOA is needed for small investment advice up to $15,000 (s946AA; reg 7.7.09A), but not for derivatives, general insurance or life risk insurance.
A Record of Advice can replace an SOA for further advice where the client's relevant circumstances and the basis of advice have not significantly changed (s946B).
An SOA recommending a product switch must disclose costs, lost benefits and other significant consequences (s947D).
Cooling-off is 14 days and ends early once the client exercises a right under the product (s1019B).

On this page · 3 sections

Traps that cost marks

The seminar setting suggests general advice, but s766B(3) looks at what was considered (or would reasonably be expected to be), not where it was said.
The accountant's certificate is valid, but s761G(7) expressly excludes superannuation products from the wholesale tests.
A later email feels like enough, but the warning must travel with the advice.
The 5-business-day rule exists, but only for client-instructed time-critical cases.
Time since the SOA is not the test; whether the client's relevant circumstances have significantly changed is.
A performance comparison feels thorough, but the statute targets costs, lost benefits and consequences of the switch.
The relief removes the SOA, not the record-keeping or the best interests duty.
The period starts at the EARLIER of confirmation and the fifth business day, not at signing.

The rule

Start with two questions: is the client retail or wholesale, and is the advice general or personal? Personal advice to a retail client brings the best interests obligations and an SOA (or ROA); general advice brings the warning.

Document	When	Key rule
FSG	Before the service	s941D; may be several documents (s942D)
SOA	When or before personal advice is acted on	s946A-947D; title on cover (s947A)
ROA	Further advice, no significant change	s946B; reg 7.7.10AE
PDS	Before a retail client acquires a product	s1012A-1012B

Common traps

Trap: High income alone does not make someone wholesale; they need the accountant's certificate.

Trap: The small-investment relief is $15,000, not $25,000, and excludes insurance.

Trap: Sending the general advice warning later by email does not satisfy s949A.

Trap: Cooling-off is 14 days, not 30.

Premium

Every note. Every question. One pass.

1 more section of this note is part of Premium.

Every section of every study note
Every question and client scenario across all three exam areas
All four full timed mocks
A worked explanation on every question
Your full mistake bank and weak-area review

Unlock with Premium

From ≈A$14.92/mo on the 12-month pass with resit cover

Exam-style questions

← Previous note: Licensing, registration and professional standards All study notes