ASIC financial adviser exam, Conduct rules, breach reporting, DDO and AFCA question: financial product

ASIC examConduct rules, breach reporting, DDO and AFCA

Consider these statements. (i) A retail client who acquires a financial product as a result of hawking may have a right to return it and obtain a refund. (ii) The hawking prohibition does not apply to offers made to wholesale clients.

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: A. (i) True, (ii) True

Both statements are true. Section 992AA of the Corporations Act 2001 (compilation 19 Sep 2026) gives a right of return and refund for financial products acquired in contravention of s992A, and s992A(1)(a) limits the prohibition to consumers who are retail clients.

Common mistake

Candidates expect one statement to be a trick; here both describe the provisions correctly.

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