Part 7.7 of the Corporations Act 2001 (Cth) imposes important obligations on financial services licensees or authorised representatives of financial services licensees to make certain financial services disclosures to clients who are “retail clients”. Note that:

• financial product disclosure is a separate obligation and is dealt with in Pt 7.9 ; and

• the Future of Financial Advice (FOFA) reforms (best interests obligations and remuneration requirement) is relevant to this area and is found in Pt 7.7A .

The purpose of the financial services disclosure obligations in Pt 7.7 is to ensure that retail clients can make informed decisions about whether to acquire a financial service or, where financial advice is provided, whether to act on that advice.

Relevant ASIC regulatory guides dealing with financial services disclosure include:

• ASIC RG 90 Example Statement of Advice: Scaled advice for a new client;

• ASIC RG 168 Disclosure: Product Disclosure Statements (and other disclosure obligations);

• ASIC RG 175 Licensing: Financial product advisers — Conduct and disclosure; and

• ASIC RG 221 Facilitating digital financial services disclosures; and

• ASIC RG 244 Giving information, general advice and scaled advice.

The guides are available from the ASIC website.

The financial services disclosure obligations in Pt 7.7 :

• are imposed on “providing entities” who may be financial services licensees or authorised representatives of financial services licensees (see Licensing and obligations of providers of financial services);

• apply in relation to clients who are “retail clients” (see ss 761G and 761GA ); and

• in general require providing entities:

Division 1 of Pt 7.7 contains preliminary provisions dealing with:

• the situation where there is no reasonable opportunity to give a document such as a Financial Services Guide or a Statement of Advice or other information or statements which may be required to be given by Pt 7.7 ; and

• how documents, information or statements are to be given to a client (including to an agent of a client).

See Application and manner of giving disclosure.

Division 2 of Pt 7.7 deals with financial services disclosure where a retail client is provided with a “financial service”. “Financial service” has the meaning given by Div 4 of Pt 7.1 (see Financial service).

Under Div 2 , a providing entity who provides a financial service to a retail client must give the client a Financial Services Guide which must contain certain information. Division 2 also deals with:

• the situations in which a Financial Services Guide is not required;

• the timing of giving a Financial Services Guide and change of circumstances;

• the content and form of a Financial Services Guide; and

• the circumstances in which a Financial Services Guide may be altered after its preparation and before being given to the client.

See Financial Services Guide.

Division 2 of Pt 7.7 also requires a providing entity, in certain circumstances, to give the client a Supplementary Financial Services Guide which must contain certain information (see Subdiv C of Div 2).

Division 2 addresses in this context:

• the meaning of “Supplementary Financial Services Guide” and the circumstances in which a Supplementary Financial Services Guide is required;

• the contents and form of a Supplementary Financial Services Guide;

• the effect of a Supplementary Financial Services Guide;

• when only a Supplementary Financial Services Guide need be given; and

• altering a Supplementary Financial Services Guide.

See Supplementary Financial Services Guide.

Division 3 of Pt 7.7 imposes an additional disclosure requirement where "personal advice" is provided to a retail client.

Under Subdiv C of Div 3, the providing entity, being a financial services licensee or an authorised representative of a financial services licensee or of two or more of them must in general, give a Statement of Advice which must contain certain information. Subdiv C of Div 3 also deals with:

• the situations in which a Statement of Advice is not required; and

• the content and form of a Statement of Advice.

See Statement of Advice.

Division 4 of Pt 7.7 contains provisions dealing with:

• the obligation to warn where a providing entity provides "general advice" to a retail client; and

• the situations in which regulations may impose disclosure requirements or additional disclosure requirements.

See General advice warning and other disclosure requirements.

Divisions 6 and 7 of Pt 7.7 contain provisions dealing with:

• miscellaneous matters comprising:

• enforcement (offences and civil liability) in relation to Pt 7.7 (see Div 7 ).

Note: There is no Div 5 of Pt 7.7.

It should be noted that the Corporations Regulations have made a number of exemptions and modifications to various provisions of Pt 7.7 and that ASIC has provided relief from the requirements of Pt 7.7 in various circumstances.

See Miscellaneous matters and enforcement.