ASIC financial adviser exam, Professional commitment, ethical frameworks and referral question: high level of relevant knowledge and skills. Mei Ling's

ASIC examProfessional commitment, ethical frameworks and referral

Mei Ling, a relevant provider in Perth, has advised only on accumulation super. Clients in their eighties now ask her how to pay for an aged care place, an area she has never studied. Standard 10 of the Code says: 'You must develop, maintain and apply a high level of relevant knowledge and skills.' Mei Ling's BEST response is to…

A refer the aged care advice to a specialist, or decline until she has the expertise
B accept the work, using her licensee's aged care calculator and SOA template
C scale the advice to the accommodation payment alone, which she can research
D complete a short aged care CPD course next week, then give the advice

Show the answer and explanation

Answer: A. refer the aged care advice to a specialist, or decline until she has the expertise

Standard 10 of the Financial Planners and Advisers Code of Ethics 2019 requires a high level of relevant knowledge and skills, and the best interests duty's safe harbour includes assessing whether you have the expertise for the subject matter and, if not, declining to advise (s961B(2)(d) of the Corporations Act 2001 (compilation 19 Sep 2026)). Referring the aged care advice protects the clients and keeps the relationship. The licensee's calculator and template are useful tools, but tools do not supply the judgement the advice needs. Scaling narrows the subject matter, but the accommodation payment is itself the aged care subject she lacks expertise in. A short course is a sensible start to building expertise, but one course next week is not yet the high level of skill Standard 10 asks for before advising on a complex area.

Common mistake

Knowing the clients well is not the same as knowing the subject matter.

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