The Financial Planning Association of Australia The Financial Planning Association of Australia

Disclosure of lack of independence

All financial planners who provide personal advice to retail clients and do not meet the independence requirements in s923A of the Corporations Act must include a ‘non-independent disclosure statement’ in their Financial Services Guide (FSG).

Royal Commission recommendation 2.2 (Disclosure of lack of independence) aims to ensure consumers are not misled and receive accurate information. This recommendation was implemented in the Financial Sector Reform (Hayne Royal Commission Response No. 2) Act 2021 and became effective on 1 July 2021.

The independence requirements contained in s923A of the Corporations Act restrict the use of the terms ‘independent’, ‘impartial’ and ‘unbiased’ (or any other words “of like import”) unless specific criteria are met.