Actor map
| Actor | Exam-useful role |
|---|
| ASIC | Administers the exam and regulates relevant parts of Australia’s financial-services framework |
| ACER | Develops and delivers the exam under contract to ASIC and operates booking and remote-proctoring processes |
| AFS licensee | Authorisation, competence, supervision, systems, disclosure, breach, complaint, remediation, and representative-responsibility obligations |
| Relevant provider | Gives personal advice to retail clients on relevant financial products and is subject to professional standards and the Code of Ethics |
| Provisional relevant provider | Operates within the professional-year pathway and required supervision boundaries |
| Authorised representative | Provides services within the authority granted by an AFS licensee; the exact service and product scope still matters |
| Retail client | Receives the statutory and ethical protections engaged by the stated service and product |
Source hierarchy
| Source | First question to ask |
|---|
| Corporations Act 2001 | What actor, service, client, product, duty, prohibition, remedy, or consequence applies? |
| AML/CTF Act | What customer due diligence, risk, monitoring, reporting, record, or escalation requirement is triggered? |
| Privacy Act 1988 | What collection, use, disclosure, security, access, correction, or breach issue applies? |
| Tax Agent Services Act 2009 | Does the question engage the civil-penalty boundary for tax (financial) advice services? |
| Code of Ethics | Which value or standard governs the professional judgment, even if minimum law is satisfied? |
| ASIC guidance | How does ASIC interpret or expect the obligation to operate in practice? |
| Client file and advice process | What evidence shows that the actual judgment, consent, instruction, or review occurred? |
Advice-classification check
| Activity | Core distinction |
|---|
| Factual information | Information without an opinion or recommendation intended to influence a financial-product decision |
| General advice | Financial product advice that does not take account of the client’s objectives, financial situation, or needs |
| Personal advice | Advice where one or more of those circumstances were considered, or a reasonable person might expect them to have been considered |
| Dealing or arranging | Conduct that implements, acquires, varies, disposes of, or helps bring about a transaction; do not treat it as advice merely because it follows a conversation |
| Limited or scaled advice | Personal advice with an agreed scope that still requires reasonable inquiry, best-interests reasoning, appropriate advice, and a clear record |
Advice-construction path
flowchart LR
A[Classify scope and client] --> B[Collect relevant facts]
B --> C[Analyse goals, risks, and behaviour]
C --> D[Develop and compare strategies]
D --> E[Resolve conflicts and test suitability]
E --> F[Explain basis, risks, costs, and alternatives]
F --> G[Obtain informed instructions]
G --> H[Implement, document, and review]
Evidence checklist
| Decision area | Evidence to look for |
|---|
| Authority and competence | Appointment, authorisation scope, registration, supervision, qualification, exam, professional year, and CPD records |
| Advice classification | Information considered, client expectation, wording, warning, channel, surrounding conduct, and implementation activity |
| Best interests and suitability | Reasonable inquiries, relevant circumstances, product research, strategy comparison, conflicts, costs, risks, and recommendation basis |
| Informed consent | Clear explanation, material benefits and risks, costs, conflicts, alternatives, limitations, client understanding, and instruction |
| Ethical reasoning | Values and standards engaged, affected parties, competing duties, foreseeable harm, bias, conflict control, and accountable action |
| Implementation and review | Client instruction, authority, transaction record, advice-file linkage, review terms, changed circumstances, and reassessment |
Precise laws, instruments, dates, thresholds, and transitional rules can change. Verify them through the official resources
.