ASIC financial adviser exam, Scaled advice and quality advice documents question: advice Joel received

ASIC examScaled advice and quality advice documents

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?

A It is general advice, so the best interests duty does not apply to it
B It is personal advice about his interest in the fund, subject to the best interests duty
C It may extend, at the members' shared cost, to buying a direct investment property
D It needs no SOA: the cost is shared across the whole membership

Show the answer and explanation

Answer: B. It is personal advice about his interest in the fund, subject to the best interests duty

The adviser considered Joel's objectives and situation, so this is personal advice (s766B(3) of the Corporations Act 2001 (compilation 19 Sep 2026)) and the best interests duty applies (s961B). Calling it intra-fund advice does not make it general advice. Under s99F of the SIS Act 1993 (compilation 10 Aug 2026), a trustee may share the cost of personal advice across members only where it concerns the member's interest in the fund and related matters; advice about another product, such as a direct property purchase, cannot be collectively charged. Shared cost does not remove the SOA obligation in s946A of the Corporations Act, subject to the usual exceptions in s946B.

Common mistake

Collective charging limits what the advice can cover, not the obligations that come with it.

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