The term \u2018advice\u2019 should be restricted to the activities of a professional adviser, according to the Productivity Commission, which has labelled \u2018general advice\u2019 in the financial services sector as misleading.<\/p>\n
In its recently released draft report on competition in the Australian financial system, the Commission made a draft recommendation that ‘general advice’, as defined in the Corporations Act, should be renamed.<\/p>\n
\u201cCurrently, the terminology of advice requires consumers to intuitively understand that general advice is like marketing; and personal advice is actually tailored to their situation and carries with it some protection against misuse,\u201d the report stated.<\/p>\n
\u201cTo ensure consumers are able to clearly distinguish between general promotional effort related to products and actual personal advice, use of the term \u2018advice\u2019 should be limited to effort that is undertaken on a client\u2019s behalf by a professional adviser,\u201d it added.<\/p>\n
The Productivity Commission stated that it supported the testing of alternative terms for \u2018general advice\u2019 with consumers \u201c\u2026to ensure that misinterpretation and excessive reliance on this type of promotional information is minimised\u201d.<\/p>\n
The report stated the costs of rebadging existing \u2018general advice\u2019 products would not be substantial as any related electronic documentation would already be updated regularly.<\/p>\n","protected":false},"excerpt":{"rendered":"
The term \u2018advice\u2019 should be restricted to the activities of a professional adviser, according to the Productivity Commission, which has labelled \u2018general advice\u2019 in the financial services sector as misleading.<\/p>\n","protected":false},"author":3,"featured_media":39853,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,3,5],"tags":[4247],"class_list":{"0":"post-39821","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-general","9":"category-services","10":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/39821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=39821"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/39821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/39853"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=39821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=39821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=39821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}