ASIC financial adviser exam, Code of Ethics: client care and quality process (Standards 4–9) question: free up storage by discarding parts of the files

ASIC examCode of Ethics: client care and quality process (Standards 4–9)

Nadia's practice manager wants to free up storage by discarding parts of the files of clients who have left the practice, keeping only their SOAs. Standard 8's duty to keep client records complete and accurate covers the records of…

A clients advised within the last seven years
B current clients only
C clients with an ongoing fee arrangement
D clients and former clients

Show the answer and explanation

Answer: D. clients and former clients

Standard 8 of the Financial Planners and Advisers Code of Ethics 2019 says: 'You must ensure that your records of clients, including former clients, are kept in a form that is complete and accurate.' The duty continues after the relationship ends, which matters for complaints, AFCA matters and remediation that can arise years later, so discarding parts of former clients' files would breach it. Seven years is the retention period for records of further advice under reg 7.7.09 of the Corporations Regulations 2001 (compilation 1 Sep 2026), not a limit on Standard 8. Nothing in the standard confines it to current clients or to clients paying ongoing fees.

Common mistake

Ending the engagement does not end the record-keeping duty.

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