ASIC financial adviser exam, Licensing, authorised representatives and professional standards question: oral personal advice to a retail

ASIC examLicensing, authorised representatives and professional standards

Ravi, a provisional relevant provider, gives oral personal advice to a retail client about a managed fund. Under the Corporations Act, who is taken to have provided that advice?

A Ravi alone: he gave the advice and he is the relevant provider
B The licensee, which is deemed to give the advice of its provisional providers
C Ravi and the licensee's responsible manager, who are liable jointly and severally
D Each person who is Ravi's supervisor at the time the advice is given

Show the answer and explanation

Answer: D. Each person who is Ravi's supervisor at the time the advice is given

Section 921F(5) of the Corporations Act 2001 (compilation 19 Sep 2026) provides that personal advice given by a provisional relevant provider to a retail client about a relevant financial product is taken to have been provided by each person who is, at that time, a supervisor of the provisional relevant provider, instead of by the provisional relevant provider. That is why s921F(6) requires clients to be told each supervisor's name and that each supervisor is responsible for the advice.

Common mistake

The intuitive answer is the person who spoke. The deeming rule moves the advice to the supervisors.

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