Fact Find and the relationship with Sec 945 A
There is no legislation on fact finding.
Completion of a fact find is making sure you have enough information to
fulfil the know your client rule.
This is no standard way in which you have to complete the client
questionare and each Financial Planner no doubt uses a method that
works best for them. What is important is the capturing and documenting
of the details to ensure compliance with the S. 945A rule – which requires
you to have a reasonable basis for the advice provided to the client.
The Corporations Act recognises that you may provide a range of different
services in relation to financial products, including:
o
factual information, such as details on how something works;
o
nil advice execution, where the client instructs a certain
course of action without taking advice;
o
personal advice, which applies when you are aware of any
details of the clients financial situation, needs or objectives.