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Fenella, a relevant provider, is advising Mr Osei, 58, who wants to reduce his debts before he retires. To satisfy the safe harbour in s961B(2), Fenella … (i) must investigate every financial product available in the market before recommending any of them. (ii) can meet the duty with advice that recommends no financial product, such as a debt repayment plan.
Statement (i) is false: s961D(1) of the Corporations Act 2001 (compilation 19 Sep 2026) says a reasonable investigation does not require an investigation into every financial product available, and ASIC's RG 175 accepts approved product lists where the investigation is reasonable. Statement (ii) is true: the investigation step in s961B(2)(e) applies only if it would be reasonable to consider recommending a product, and strategic advice such as repaying debt may need none. ASIC's RG 244.63 notes that advice that is not product-specific can still leave a client in a better position.
'Reasonable investigation' is not 'exhaustive investigation'.
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