ASIC financial adviser exam, Advice, retail clients and disclosure (FSG, SOA, ROA, PDS) question: Corporations Act and the Corporations Regulations

ASIC examAdvice, retail clients and disclosure (FSG, SOA, ROA, PDS)

Under Part 7.7 of the Corporations Act and the Corporations Regulations, an AFS licensee or authorised representative that gives personal advice to retail clients … (i) must keep a record of any further advice given without a new SOA for 5 years after the advice is given. (ii) must set out in each SOA the basis on which the advice is given.

A (i) True, (ii) True
B (i) True, (ii) False
C (i) False, (ii) True
D (i) False, (ii) False

Show the answer and explanation

Answer: C. (i) False, (ii) True

Statement (i) is false: reg 7.7.09(3) of the Corporations Regulations 2001 (compilation 1 Sep 2026) requires the record of further advice to be kept for 7 years after the day the advice is given. Statement (ii) is true: s947B(2)(b) and s947C(2)(b) of the Corporations Act 2001 (compilation 19 Sep 2026) require every SOA to include information about the basis on which the advice is or was given, at the level of detail a retail client would reasonably need to decide whether to act on it.

Common mistake

Seven years, not five, is the record-keeping period for further advice.

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