Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies (subject to subsection (4)) if the advice is or includes a recommendation that:
(a) the client dispose of, or reduce the client's interest in, all or part of a particular financial product and instead acquire all or part of, or increase the client's interest in, another financial product; or
(b) the client dispose of, or reduce the client's interest in, a MySuper product offered by a regulated superannuation fund, or by an AFCA regulated superannuation scheme, and instead acquire an interest, or increase the client's interest, in another MySuper product or a choice product offered by the fund.
(2) The following additional information must be included in the Statement of Advice:
(a) information about the following, to the extent that the information is known to, or could reasonably be found out by, the providing entity:
(i) any charges the client will or may incur in respect of the disposal or reduction;
(ii) any charges the client will or may incur in respect of the acquisition or increase;
(iii) any pecuniary or other benefits that the client will or may lose (temporarily or otherwise) as a result of taking the recommended action;
(b) information about any other significant consequences for the client of taking the recommended action that the providing entity knows, or ought reasonably to know, are likely;
(c) any other information required by regulations made for the purposes of this paragraph;
(d) unless in accordance with the regulations, for information to be disclosed in accordance with paragraph (a), any amounts are to be stated in dollars.
(3) If:
(a) the providing entity knows that, or is reckless as to whether:
(i) the client will or may incur charges as mentioned in subparagraph (2)(a)(i) or (ii); or
(ii) the client will or may lose benefits as mentioned in subparagraph (2)(a)(iii); or
(iii) there will or may be consequences for the client as mentioned in paragraph (2)(b); but
(b) the providing entity does not know, and cannot reasonably find out, what those charges, losses or consequences are or will be;
the Statement of Advice must include a statement to the effect that there will or may be such charges, losses or consequences but the providing entity does not know what they are.
(4) The regulations may provide either or both of the following:
(a) that this section does not apply in relation to a financial product or a class of financial products;
(b) that this section does not require the provision of information of a particular kind, whether generally or in relation to a particular situation, financial product or class of financial products.