Delivering Compliant General Advice on Superannuation – Part 1

Superannuation is central to the retirement plans of millions of Australians, and financial advisers often play a key role in educating clients about superannuation options. In doing so, advisers must carefully navigate the line between general advice and personal advice. Providing general advice on superannuation – such as giving broad information about super funds, investment options, or regulatory changes – allows advisers to inform a wide audience. However, it also carries strict regulatory boundaries: advisers must avoid straying into personal advice, which is tailored to an individual’s circumstances and triggers more onerous legal obligations. This module explores how Australian financial planners can deliver general advice on superannuation in a compliant manner that meets both regulatory requirements and client expectations. It will examine the distinctions between general and personal advice, disclosure and documentation obligations for each, strategies for communicating effectively without providing personal recommendations, and best practices for managing records and conflicts of interest. Global regulatory perspectives – from Australia’s ASIC to the UK’s FCA and US SEC – will be compared to highlight common principles and international best practices. By mastering these concepts, financial planners in Australia can confidently provide valuable general guidance on superannuation to groups of clients or the public, while staying within compliance boundaries and maintaining professional standards.

In this report, we use a structured approach with clear headings for each topic. Short paragraphs and bullet points are employed to enhance readability. The content is designed as educational material for Australian financial advisers (meeting Continuing Professional Development standards), but it also draws on global perspectives and research for a comprehensive understanding.

Distinguishing General Advice vs Personal Advice

At the core of compliance in financial advice is understanding the fundamental difference between “general advice” and “personal advice.” Under Australian law (Corporations Act 2001), financial product advice is defined as a recommendation or opinion intended to influence a person’s decision about a financial product. This advice comes in two forms: personal advice and general advice.

• Personal Advice: This is financial advice that takes into account one or more aspects of an individual’s objectives, financial situation, or needs – or a reasonable person would expect that the adviser has considered those personal circumstances. In other words, if the advice is tailored for a specific person (or appears to be), it is personal advice. Personal advice is typically given one-on-one and involves an adviser actively considering the client’s personal details to recommend specific strategies or products.
• General Advice: This is any financial advice that is not personal advice. General advice may include opinions or recommendations about financial products (such as superannuation funds or investment options) that are not tailored to an individual’s situation. When giving general advice, the adviser does not consider the recipient’s personal financial circumstances (income, assets, needs, etc.), and any examples or recommendations are broad in nature. General advice could be delivered in seminars, newsletters, websites, or broad client communications. It provides information or generic guidance that could be relevant to a large audience, rather than specific instructions for one person.

It’s important to note that general advice is more than just factual information. Simply stating facts about a product (like “Fund A’s annual fee is 0.8%” or “the current superannuation guarantee rate is X%”) is considered factual information and not regulated as advice. General advice goes a step further – it includes some element of opinion or recommendation about financial products, but stops short of personalizing that advice. For example, an adviser saying “Australian equities tend to outperform inflation over the long term, so young superannuation investors could consider a higher allocation to growth assets” is giving general advice: it is a suggestion or opinion about a class of products (growth assets in super) but not directed at anyone’s personal financial situation. By contrast, saying “Given your risk tolerance and age, you should put 80% of your super in equities” would likely be personal advice, because it’s tailored to “your” risk tolerance and age – personal factors.

Understanding this distinction is not merely academic; it is critical for compliance. Australian regulations impose significantly higher obligations on personal advice, including best-interest duties and documentation requirements, which do not apply to general advice. As we will explore, giving advice classified as personal when you only intended to give general advice can lead to regulatory breaches, penalties, and legal liability. Therefore, advisers must be crystal clear on where the line is drawn. The distinction also matters for clients: personal advice comes with consumer protections (like a legal duty for advisers to act in the client’s best interests), whereas general advice comes with warnings that those protections aren’t present. However, research shows many consumers do not understand the difference, which puts them at risk of misunderstanding the nature of the guidance they receive. Advisors have a duty to make this distinction clear whenever they provide general advice.

Some key characteristics distinguishing general vs personal advice include:

• Consideration of Personal Circumstances: Personal advice explicitly or implicitly considers the individual’s own objectives, financial situation, and needs. General advice does not consider or cater to any one individual’s situation – it remains generalized.
• Manner of Delivery: Personal advice is often delivered in a personalized setting (one-on-one meetings or statements of advice prepared for a single client). General advice is frequently delivered through broad communications – seminars for multiple people, mass emails, newsletters, online articles, or call center conversations using standard scripts – with the intention that it be generic for all listeners.
• Expectation of the Recipient: One legal test is whether a reasonable person, in the client’s position, would expect that the adviser had considered their personal needs. If yes, the advice is personal. If the client would reasonably understand that the advice is a general recommendation not based on personal information, then it remains general advice. For instance, if an adviser discusses superannuation strategies in general terms on a webinar and does not solicit any personal info from attendees, a reasonable attendee would likely understand it as general information. But if during that webinar the adviser addresses a specific attendee’s situation in detail (e.g. “Based on what you’ve told me about your super balance and debts, you should…“), others – and the attendee – might reasonably assume the adviser is now considering personal factors, tipping it into personal advice territory.
• Regulatory Warning: In Australia, general advice given to retail clients must come with a clear general advice warning stating that the advice does not account for personal objectives, financial situation, or needs. This warning, usually given verbally or in writing at the time of advice, helps demarcate general advice. No such warning is needed (or appropriate) for personal advice, because personal advice by definition does consider the client’s situation (instead, personal advice requires other disclosures like a Statement of Advice).

By clearly distinguishing these categories upfront, advisers can frame their communications appropriately. In practice, the safest approach is to always assume personal advice obligations unless you deliberately structure and label your communication as general advice. Given the serious compliance implications, many Australian Financial Services (AFS) licensees either restrict their representatives to giving only general advice (with no personal recommendations allowed), or ensure that if any personal advice is given, the adviser is fully licensed and compliant with all requirements. The next sections delve into those requirements and how to meet them.

Regulatory Framework in Australia for General vs Personal Advice

Australia’s regulatory framework for financial advice is among the most robust in the world, particularly after extensive reforms over the past decade (such as the Future of Financial Advice (FoFA) reforms and the Professional Standards for Advisers). Understanding the laws and regulations that apply to general and personal advice is essential for compliant practice. In this section, we outline the key regulatory definitions and obligations for each type of advice in the Australian context, focusing on superannuation advice to retail clients (individual consumers).

Legal Definitions (Corporations Act)

The Corporations Act 2001 (Cth) defines financial product advice and sets the definitions for personal and general advice (Section 766B of the Act). In summary:

• Financial Product Advice: A recommendation or statement of opinion (or a report of either) that is intended to influence a person’s decision in relation to a financial product (or could reasonably be regarded as intended to have such influence). Superannuation interests are financial products, so any suggestion or guidance on superannuation choices can fall under this definition if it’s influencing decisions. Even suggesting “you should consider consolidating your super accounts” can be financial product advice because it’s an opinion aiming to influence a decision about a super product. Purely factual statements (e.g. “the contribution cap this year is $27,500”) are not advice if they lack any sort of recommendation element.
• Personal Advice: Financial product advice given or directed to a person where the adviser has considered any of the person’s objectives, financial situation, or needs, or a reasonable person might expect the adviser to have considered one or more of those matters. Notably, this definition has two limbs:
1. The adviser actually considers the individual’s personal circumstances (even if only one aspect, such as “you mentioned you have a low risk tolerance”). or
2. A reasonable person in the client’s position would expect that the adviser did consider their personal circumstances (even if the adviser claims they did not). This limb captures situations where the context or presentation of advice gives an impression of personalization, even if the adviser didn’t explicitly analyze the client’s data.
• General Advice: Any financial product advice that is not personal advice. It’s essentially the residual category. If you are giving advice (opinions or recommendations intended to influence) but you have not taken into account the client’s individual situation (and a reasonable person wouldn’t expect you have), then it is general advice. General advice typically addresses “a class of persons” or the public at large – e.g. “Investors in their 20s might consider higher growth options in their super.” It is not tailored to “you, John Smith, with your specific income and goals” but rather applicable to a general audience or category.

Key Point: The distinction can be subtle in practice – it’s possible to inadvertently give personal advice even without intending to. For example, merely having knowledge of a client’s particular financial facts, and then giving what you think is generic advice, can trigger the “reasonable person’s expectation” limb of personal advice. Australian case law (discussed later) has reinforced that a disclaimer saying “this is general advice” will not protect an adviser if in substance the interaction appears personalized.

Obligations for Personal Advice vs General Advice

Understanding the compliance obligations that attach to each category is crucial:

When Providing Personal Advice (to Retail Clients):
If your communication is deemed personal advice, the following key obligations apply under Chapter 7 of the Corporations Act and ASIC regulations:

• Best Interests Duty: The adviser must act in the best interests of the client when providing the advice. Under Section 961B of the Corporations Act, there is a statutory duty for advisers to take reasonable steps to act in the best interests of the client. In practice, this means gathering relevant personal information, researching appropriate strategies/products, and basing recommendations on the client’s objectives and needs. ASIC’s guidance (previously a “safe harbour” checklist in the law) calls for steps like identifying the client’s objectives, making reasonable inquiries into their financial situation, and considering only suitable solutions. Best interest duty is a cornerstone of personal advice compliance introduced by FOFA reforms – it is designed to ensure the client’s interests, not the adviser’s, are paramount.
• Appropriate Advice: The advice given must be appropriate for the client (Section 961G). Even if you acted in their best interests, the final advice should be one that is reasonably likely to leave the client in a better position. For example, recommending a particular superannuation contribution strategy should align with the client’s needs and not be unsuitable or harmful given what you know of them.
• Client Priority (Conflict Priority) Duty: If there is a conflict of interest, the adviser must give priority to the client’s interests (Section 961J). For instance, if an adviser’s firm stands to earn a higher fee by recommending one super product over another, the adviser must not let that influence the advice – the recommendation must still genuinely be better for the client, or the conflict must be managed such that the client’s best interest comes first. In personal advice, this is legally enforceable; breaches can lead to penalties.
• Disclosure Documents – FSG and SOA: Personal advice triggers detailed documentation. A Financial Services Guide (FSG) must be provided (usually at the start of the relationship or before advice is provided) – this document discloses the adviser’s license, services, fee structures, and any associations or conflicts. Additionally, Statement of Advice (SOA) is required for personal advice given to a retail client, documenting the advice. The SOA is a comprehensive written document that must include:
• The advice and the basis for the advice (why the recommendation is made, and how it meets the client’s circumstances).
• Information about fees, commissions or other benefits the adviser (or their firm) will receive if the client follows the advice.
• Any associations or relationships that could influence the advice (like if the adviser’s firm is owned by the parent company of the super fund they’re recommending, this must be disclosed).
• SOAs must be provided to the client at the time of or as soon as practicable after giving the advice (at least before they act on it). There are allowances for oral advice as long as an SOA is later provided. There are also cases where a shorter “Record of Advice” can be used instead of a full SOA (e.g., for minor changes or if the client is a repeat client with an existing plan), but the principle remains that personal advice must be documented.
• Ongoing Duty and Remediation: Advisers providing personal advice have an ongoing relationship in many cases (like ongoing service agreements). They need to keep information up to date, provide Fee Disclosure Statements and Renewal Notices for ongoing fee arrangements, and review advice periodically if engaged to do so. Also, personal advice interactions are subject to audit, file review, and if something goes wrong (say the advice was inappropriate and caused loss), the client has avenues for complaint and remediation (including access to the Australian Financial Complaints Authority).
• Professional Standards: Only qualified, licensed individuals meeting certain education and exam standards (now termed “relevant providers” under the law) can give personal advice on complex products to retail clients. Since 2019, new education standards and a Code of Ethics apply to financial advisers in Australia. For instance, the adviser must adhere to ethical standards such as those set by FASEA (now under Treasury): acting with integrity, not receiving conflicted forms of remuneration, etc. The Code of Ethics (Standard 5) even says advisers must ensure the client understands the advice and the products, which implies a high duty of care in personal advice situations.

In short, personal advice is heavily regulated to protect consumers, given the trust and reliance placed on advisers when they tailor advice to individuals. It requires thorough documentation, demonstrable care, and high ethical conduct.

When Providing General Advice (to Retail Clients):
General advice has a different, lighter set of regulatory requirements, reflecting that it is not personalized. However, it is not a free-for-all – there are still strict rules to follow:

• General Advice Warning: Whenever general financial advice is provided to a retail client, the adviser must give a clear and prominent warning that the advice is not tailored. Typically, the wording (mandated by Corporations Regulations) is along the lines of: “This advice is general in nature and does not take into account your objectives, financial situation or needs. You should consider the appropriateness of the advice, in light of your own objectives, financial situation or needs, before acting on it. Consider obtaining personal financial advice if you need to.” This warning can be given orally (e.g., at the start of a seminar or phone call) and/or in writing (e.g., on printed materials, websites, or an email footer). The key is that the client is alerted that what they’re receiving is not personal advice, and therefore the onus is on them to consider whether it suits their situation. This warning helps manage expectations and protect against claims that the client was led to believe the adviser was acting in their personal interest.
• No Best Interests or Suitability Obligation: Unlike personal advice, when giving general advice the adviser is not subject to the statutory best interests duty or the appropriateness test. In fact, Australian law explicitly states that the best interest duty and related obligations (introduced by FOFA) apply only to personal advice to retail clients. That means that if you’re strictly giving general advice, you do not have a legal duty to ensure the advice is in the best interests of any particular client, nor that it is suitable for them – because ostensibly you aren’t considering any one client’s situation at all. However, this lack of a “best interest” obligation does NOT mean advisers can be careless with general advice. Other laws still apply – for example, the overarching obligation for an AFS licensee to provide services “efficiently, honestly, and fairly” (Corps Act s912A) applies to all financial services including general advice. Also, anti-misleading conduct laws apply: you cannot knowingly provide false or misleading statements, or deceive clients, even in general advice. So while you don’t have to individually research each attendee’s needs, you must still ensure your general advice is factually accurate, well-founded, and not harmful or misleading to consumers in a broad sense.
• No Statement of Advice (SOA) Required: One of the practical differences is that you do not have to produce a personalised Statement of Advice document for general advice. In fact, issuing an SOA for general advice would be odd because an SOA is inherently personalized. So, advisers can avoid that paperwork and process when limiting themselves to general advice. This is one reason some institutions have preferred a “general advice model” for things like bank staff or superannuation fund call centres – it sidesteps the extensive documentation and process burden of personal advice. That said, the adviser or their licensee should still keep internal records of what general advice was provided (more on record-keeping later), but there is no requirement to hand a written advice document to the client (aside from perhaps providing any relevant Product Disclosure Statement if a specific financial product is discussed or offered).
• Provision of a Financial Services Guide (FSG): Even in a general advice scenario, if you are providing a financial service (which giving advice is), you typically must give the client an FSG at the start of the interaction. The FSG outlines who you are (the licensee), what services you’re authorized to provide, how you’re remunerated (including commissions or fees), and how the client can complain, among other things. The FSG is usually a brochure or PDF given to a new client or seminar attendee. In a seminar, for instance, best practice is to either hand out the FSG or have it easily accessible (like available on seats or via email registration) before the advice portion begins. The FSG is important for transparency, especially about any potential conflicts (like if you represent a specific superannuation fund, the FSG will disclose that affiliation and any commissions you might get).
• Product Disclosure Statements (PDS): If in the course of general advice you discuss a specific financial product (e.g., you are recommending that “our Super Fund XYZ might be suitable for many people due to low fees”), and especially if you are inviting the audience to take up that product, you must provide a Product Disclosure Statement for that product. A PDS is a document that contains all the details about a financial product’s features, fees, risks, and benefits. In a general advice context, say a super fund representative is giving a general information session about their fund’s investment options – they should provide attendees with the PDS (or access to it) for the superannuation product, so the attendees have all the factual information required by law to make a decision. General advice often bleeds into marketing, so the law insists that if you’re essentially pitching a product (even generally), the consumers get the proper disclosure documents.
• Licensing and Adviser Qualifications: If you (or your firm) are providing general advice, you still must be appropriately licensed. In Australia, an Australian Financial Services (AFS) Licence is required to provide financial product advice (whether general or personal) to clients, unless an exemption applies. Many large institutions have a licence that authorizes general advice only (not personal), meaning their staff can give broad advice but are not authorized to delve into personal advice. Even with a “general advice only” licence, staff must meet certain training standards (for example, ASIC’s Regulatory Guide 146 used to set training benchmarks for various product areas and advice types, ensuring advisers have at least Tier 1 training for products like superannuation). Since the professional standards reforms, anyone calling themselves a financial adviser and giving advice to retail clients must pass the adviser exam and meet education standards if they are providing personal advice. However, some roles that only involve general advice (and not giving personal advice to retail clients) might not require the person to be a “relevant provider” under the new law. For example, call center staff giving general advice under a licence technically do not have to have met the full educational qualifications of a financial planner, because they are not providing personal advice (the law currently draws this line, though this might change with future reforms). Nonetheless, licensees must ensure anyone giving general advice is trained and competent in the product area and in understanding the limits of what they can say.

In essence, general advice has fewer compliance hurdles: no individualized fact-find, no SOA paperwork, no best-interest obligation. But the trade-off is that general advice is limited in how helpful it can be to any one individual, and miscommunication or misunderstanding is a risk (since consumers might think the advice is personal when it isn’t). That’s why the general advice warning is so critical – it attempts to set the expectation properly.

Why the Distinction Matters – Risks of Blurring the Line

If an adviser inadvertently crosses the line from general to personal advice without complying with the personal advice obligations, several problems arise:

• Regulatory Breach: The adviser (and their licensee) could be in breach of their AFS licence conditions. For example, if the licence only permits general advice, giving personal advice would be unlicensed conduct – a serious offence. Even if the licence permits personal advice, not following the rules (like failing to give an SOA or not acting in the client’s best interest) breaches the Corporations Act and ASIC could take enforcement action. Penalties can include fines, licence suspensions, or bans. We will later discuss a real case (Westpac’s example) where this misclassification led to multi-million dollar penalties.
• Liability for Damages: A client who suffered loss because they acted on what they thought was advice in their best interest could potentially take legal action if they later discover it was only “general advice” and perhaps inappropriate for them. Even though general advice carries no suitability duty, if a court finds that it was actually personal advice, the adviser could be liable for failing to meet the obligations associated with it. Additionally, if the advice was misleading (even unintentionally, by omission of personal context), consumer protection laws could come into play.
• Client Detriment and Trust Erosion: From an ethical and business perspective, blurring the line can hurt clients. If a person assumes the guidance was tailored to them and it wasn’t, they might make poor financial decisions (for instance, switching super funds or investment options that aren’t actually right for them). This can lead to financial loss or missed opportunities for the client’s retirement savings. Moreover, when clients realize they weren’t given the whole picture, trust in the adviser and the financial advice profession erodes. The industry in Australia has already grappled with trust issues, and ensuring clarity between general vs personal advice is part of rebuilding that trust.

For these reasons, advisers must be extremely diligent in maintaining the correct posture. If you intend to give general advice, you must structure the communication such that it clearly stays in that lane – which includes giving the proper warnings and not drifting into individual specifics. Conversely, if a client genuinely needs personalized advice, the adviser should recognize that and move to a personal advice framework (with full compliance) rather than trying to fit a round peg into a square hole by delivering what is essentially personal advice under the guise of general advice.

Tip: When in doubt, err on the side of treating the interaction as personal advice – or explicitly state the limitations. Some firms train their representatives to use very standardized language and avoid using the word “you” in a way that implies personal consideration when giving general advice. For example, an adviser might say in a seminar, “Some people in [situation] might consider contributing extra to super,” rather than “If I were you, I would contribute extra to super.” The latter sounds like a personal recommendation to “you,” whereas the former keeps it third-person and hypothetical. We’ll cover more of these communication techniques in the next section.

Communicating Superannuation Concepts without Giving Personal Advice

One of the core skills for delivering compliant general advice is effective communication that is educational and useful, yet impersonal in nature. In the context of superannuation, which can be a complex and highly personal topic (since it deals with retirement savings), advisers need to take special care to frame their guidance appropriately. The goal is to inform and empower a broad audience – helping them understand superannuation rules, strategies, and products – without crossing into personalized recommendations.

Here are best-practice strategies for communicating superannuation concepts as general advice:

Use Clear Disclaimers and Set the Context Upfront

At the outset of any general advice interaction, clearly state the scope and limitations of the advice. This includes the formal general advice warning, but also a plain-English explanation if possible. For example, when starting a seminar or webinar on superannuation, an adviser might say:

“Before we begin, please note that today I’ll be providing general advice and information about superannuation. This means I’ll talk about strategies and options in broad terms – I won’t be considering anyone’s individual financial situation. Everyone’s circumstances are different, so what you hear today may or may not be suitable for you. You should think about how it applies to your own situation or get personal advice if you need specific recommendations.”

This kind of introduction achieves a few things:

• It satisfies the legal requirement by warning that the advice is general and not tailored.
• It educates the audience about what “general advice” means in practical terms (since many laypeople don’t really grasp it).
• It sets expectations, so listeners are less likely to misconstrue the information as personal guidance.
• It builds trust through transparency – you’re being upfront about what you are and are not providing.

Make sure this disclaimer or context-setting is prominent. In written communications (like an email newsletter or a blog article about superannuation tips), put the general advice warning in a noticeable spot (e.g., at the top or bottom in bold or italics). In videos or live presentations, state it verbally at the start and perhaps also include it on the opening slide. Reiterate the disclaimer if during Q&A or later in the conversation someone asks a question that veers toward personal territory (“As I mentioned, I can only speak generally – I don’t have your full details, so I’ll keep my answer broad…”).

Favor Factual Information and Explanations of Concepts

A significant portion of valuable general advice is actually good factual education. Instead of directly telling people what to do, focus on explaining how things work. In the superannuation context, some examples:

• Explain concepts and rules: e.g., how compound interest works in super, what the contribution types (concessional vs non-concessional) are and their caps, how the age pension means test interacts with super, or what lifecycle investment options are.
• Discuss pros and cons of common strategies: e.g., the benefits and drawbacks of salary sacrificing into super, or the idea of consolidating multiple super accounts (not telling them “you should consolidate”, but explaining “if you have multiple accounts, consolidating can save fees and simplify management; however, you need to check for things like exit fees or insurance implications before doing so”).
• Provide market or legislative updates: e.g., “This year, the government has introduced the ability to contribute a downsizer contribution to super for those over 60 who sell their home – here’s how it works…” This is factual information that can help the audience stay informed about opportunities, without specifically advising any one person to utilize it.
• Use examples and case studies in a generic way: For instance, illustrate a point with a hypothetical scenario – “Let’s consider an example: Alex, age 45, has a super balance of $100k and is wondering whether to invest more in growth assets. If Alex has 20 years to retirement, history shows growth assets like equities might yield higher returns over such a horizon, but with higher volatility. If Alex was close to retirement, say 64, the strategy might differ. So your time horizon in super can influence how you might allocate assets.” In this example, Alex is a made-up persona to demonstrate a principle. It’s not actual advice to a real individual in the audience, but listeners can identify which example most closely resembles them. This way, you inform them indirectly (“if someone is in situation X, option Y could be suitable”) and let them draw their own connection, rather than you explicitly telling any specific person what they should do.

When delivering factual information, ensure accuracy and clarity. Avoid jargon where possible, or if you use technical terms, explain them. For instance, instead of saying “maximize NCCs post-65 due to bring-forward rule changes,” say “there are limits to how much after-tax money you can put into super each year (called non-concessional contributions). If you’re under a certain age, you might be able to bring forward three years’ worth of contributions in one go – I can explain that process.”

Speak in General Terms and Avoid Personal Pronouns Targeting an Individual

As mentioned earlier, language is important. Use phrases like:

• “People in [broad category] might consider…”
• “One could potentially…”
• “Some options may suit investors who [criteria]…”
• “It’s generally recommended to [do XYZ] if [general condition].”

Do not directly say “You should do X” or “I recommend you do Y” to an individual or the audience as a whole. The word “you” can be tricky – in a group, “you” might be understood generally (as in “you all”), but it’s safer to use “investors” or “Australians” or “employees” etc., as the subject. For example, instead of “You should review your super investments annually,” say “It’s a good practice for superannuation members to review their investment options annually.” The second phrasing sounds like a tip for everyone, whereas the first could be interpreted as directive advice to the particular listener.

Also avoid hypothetical personal advice directed to a single person in the audience. If someone asks a question like, “I’m 35 with two kids, should I put more into super or pay off my mortgage faster?” – an adviser giving general advice should not answer with, “I suggest you put more into super,” because that is directly responding to personal circumstances (age, kids, mortgage). Instead, the adviser might respond: “That’s a great question that a lot of people grapple with. The answer can depend on personal factors. Generally speaking, putting money into super can be tax-effective especially for long-term growth, while paying off a mortgage saves interest and gives certainty. Many people try a balance: for example, ensure the mortgage is under control (maybe using offset accounts) and also salary sacrifice a bit to super if they can afford to. But the right mix differs for each individual. This is where getting personal advice could help find the best answer for your situation.”

In that response, the adviser broadened the question to “a lot of people” rather than specifically “you”, gave general considerations, and ultimately pointed out it depends on personal factors, subtly steering the individual towards personal advice for a definitive recommendation.

Encourage Client’s Own Assessment and Next Steps

A technique in general advice is to gently prompt the audience to take the information and reflect on their own situation (without the adviser explicitly doing that analysis for them). This can be done by asking rhetorical questions or giving them a short checklist:

• “After today’s session, you might want to go home and check: what’s your super balance and how is it invested? Does that align with how much risk you’re comfortable with and how long until you retire? If you’re not sure, that’s an area to explore further.”
• “Consider whether consolidating accounts could help you. Make a list of any super funds you have. Compare their fees and insurance. If one stands out as clearly better, it might make sense to consolidate into that – but double-check if any have benefits you’d lose by leaving. Those are the factors you need to weigh up.”
• “Think about your own retirement goal – at what age do you want to retire and roughly how much income might you need? These will influence how aggressively you may want to contribute or invest your super now. We’ve talked generally about the power of starting early; now it’s up to each of you to map that onto your personal goals.”

By doing this, you’re not giving them a personal plan, but you are guiding them on how to use the general information for self-assessment. You’re effectively teaching them how to think about the issue, rather than telling them what to do.

Additionally, encourage seeking personal advice when appropriate. There’s nothing wrong with an adviser providing general advice and then noting, “If you find this confusing or you have multiple factors to consider (like family, debts, tax issues), you may benefit from one-on-one advice. We can help with that separately or you could consult any licensed financial adviser who can look at your whole picture.” This not only is a potential business opportunity (if done appropriately and not as a bait-and-switch) but also fulfills an ethical duty to direct people to more personalized help if they need it. The general advice warning itself often includes the line “consider obtaining personal advice if necessary,” so reinforcing that verbally can be good practice.

However, be careful: as noted in regulatory discussions, simply saying “you should get personal advice” doesn’t absolve you of responsibility – and some regulators have observed that generic “you should get advice” messages can be seen as a cop-out if it’s not likely the person will do so. So only encourage it genuinely, and maybe provide pathways (like how to contact you or resources to find an adviser via ASIC’s advisor register) rather than just a hollow statement.

Remain Balanced and Impartial

When providing general advice, especially in a promotional context (e.g., a super fund talking about its own products), there is a risk of sounding like a sales pitch. Compliance and best practice dictate that even general advice must not be misleading, biased, or presented without fair balance. ASIC has advertising guidelines (e.g., Regulatory Guide 234) that, while aimed at ads, reflect a principle: consumers should not be misled by omissions or exaggerated claims.

So, if you’re discussing a product or strategy in general advice:

• Present both the benefits and the risks or limitations. For example, “Account-based pensions in retirement can be very tax-effective (with tax-free investment earnings after age 60), but keep in mind they don’t provide a guaranteed income for life – you need to manage your withdrawals so you don’t run down your balance too quickly.” This kind of balanced statement ensures the audience isn’t left with only the rosy picture.
• Use data and evidence when possible. If you say “growth assets give better returns,” have some historical figures or sources to back that up, even if mentioned generally (“historically, Australian shares have returned around X% p.a. over the last 30 years, outperforming cash which returned Y% p.a., though past performance isn’t a guarantee of the future”). Citing credible research or statistics in a general way can bolster the quality of your general advice.
• Avoid absolute statements like “this is the best fund” or “you will definitely end up with more money by doing X.” In general advice, over-generalization can be dangerous. It’s safer to say “Fund X has the lowest fees among the major funds which can make a big difference over time” rather than “Fund X is the best choice for everyone.” Qualify statements with “can,” “may,” “often,” etc., to indicate that results can vary by individual circumstances.

Remaining impartial also ties into conflict of interest, which we will discuss in depth later. If you represent a product provider, you should disclose that and ensure your general advice doesn’t unfairly disparage competitors or pressure the audience. The tone should be educational, not high-pressure sales. Regulators are wary of “general advice” being used as a loophole to do aggressive selling without personal advice protections – so always be mindful of your tone and content in that regard.

Check for Understanding

Even though in general advice you are not giving personal counsel, it’s good practice to engage with your audience to ensure they comprehend the general principles. You might do this by:

• Asking if anyone has questions about the general concepts you explained.
• Using audience polling or quick quizzes in a seminar/webinar: e.g., a multiple-choice question “What’s the current contribution cap?” or “True or False: Withdrawing super before preservation age typically incurs extra tax.” This keeps it interactive and helps identify if some information needs reiteration.
• Encouraging them to summarize or reflect: “Could someone volunteer what they think the main takeaway is about choosing an investment option in super?” That kind of activity gets people to process the general advice themselves, which aids understanding.

When answering questions, maintain the general advice stance. If someone asks a very specific question about their situation in front of others, it’s often wise to say, “I can’t address personal situations in this forum, but I can speak to that issue generally,” and proceed to do so in a broader sense. If the question is truly too specific, you might suggest taking it offline for a personal consultation (if you’re allowed and prepared to give personal advice separately). Always pivot to general principles in the group setting, so everyone benefits and you don’t inadvertently turn the session into one-on-one advice for that person.

By focusing on clarity, generality, and educational value, advisers can deliver superannuation information that genuinely helps a broad audience improve their knowledge and make informed decisions – all while staying on the compliant side of the advice boundary.

Disclosure Obligations and Documentation for General Advice

As highlighted earlier, while general advice does not require the detailed documentation of personal advice, there are still crucial disclosure obligations to fulfill. These ensure that clients know the nature of the service and have necessary information about any financial products discussed. In this section, we break down the key disclosures and documents relevant to general advice delivery, especially in the superannuation context, and how to handle them in practice.