ASIC financial adviser exam, Scaled advice and quality advice documents question: record of advice

ASIC examScaled advice and quality advice documents

Cheng, a relevant provider, has four clients who want advice this month. Three of them received an SOA from him last year; the fourth is new. For which client is a record of advice, rather than a new SOA, MOST likely to be enough?

A Ivy, whose health has changed since her SOA, who wants to replace her life policy
B Joan, a new client, who retires next month and wants to start a pension
C Lucy, who has just separated from her husband and sold the family home
D Nell, whose circumstances are unchanged, who wants to adjust her investment mix

Show the answer and explanation

Answer: D. Nell, whose circumstances are unchanged, who wants to adjust her investment mix

Under s946B of the Corporations Act 2001 (compilation 19 Sep 2026), as substituted by reg 7.7.10AE of the Corporations Regulations 2001 (compilation 1 Sep 2026), no SOA is needed for further advice if the client has had an SOA setting out her relevant circumstances and neither those circumstances nor the basis of the advice is significantly different (RG 175.93, Nov 2024). Nell meets those conditions; Cheng must still keep a record and give her the remuneration and conflict information. Ivy's change in health is a significant change for insurance advice. Joan has never had an SOA from Cheng, so further-advice relief cannot apply. Lucy's separation and house sale change her circumstances substantially.

Common mistake

Being an existing client is not enough; circumstances and the basis of advice must be unchanged in substance.

Practise more Scaled advice and quality advice documents questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Scaled advice and advice documents Financial adviser exam practice and mock exams

Related questions

Harbour Super's trustee offers members phone advice on their investment option and contribution levels, with the cost shared across all members. Joel, 38, calls; after asking about his age, goals and other savings, the adviser recommends a higher-growth option. Which statement about the advice Joel received is accurate?Tessa, a relevant provider at Brightwater Advice, charges every client a flat annual fee and receives no commissions. Brightwater, her licensee, receives payments from a fund manager calculated on the amount of client money its advisers place in that manager's funds. Tessa wants her website to call her an 'independent financial adviser'. May she use the word 'independent'?Ravi, a provisional relevant provider at Kingfisher Advice, is supervised by two relevant providers, Alana and Ben. At a meeting that Ben attends but Alana does not, Ravi gives Mr Osei, a retail client, oral personal advice to switch A$120,000 into a different managed fund. For the purposes of the Corporations Act, that advice is taken to have been provided by…

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original practice material mapped to the learning outcomes in ASIC's exam guidance. Independent, not affiliated with or endorsed by ASIC. Verify figures and rules against current guidance before relying on them.