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03. What is meant by ‘providing advice to retail clients’?

Financial Product Advice is “a recommendation or a statement of opinion, or a report of either of those things, that is intended to influence a person or persons in making a decision (buy, sell or hold) in relation to a particular financial product or class of financial products, or would reasonably be regarded as being intended to have such an influence.”

Advice provided to a retail client can be:

•       personal advice; or
•       general advice.

Personal advice is “financial product advice that is given or directed to a person (including by electronic means) in circumstances where:

•       the provider of the advice has considered one or more of the person’s objectives, financial situation and needs; or
•       a reasonable person might expect the provider to have considered one or more of those matters.

General advice is “financial product advice that is not personal advice”.  That is, it does NOT take in to account one or more of the person’s objectives, financial situation and needs.  General advice is typically communicated in documentation, seminar presentations, etc.