Delivering Compliant General Advice on Superannuation – Part 2

Financial Services Guide (FSG)

What it is: The Financial Services Guide is a document that must be given to a retail client as one of the first things in any financial advisory relationship. It describes the financial service provider (the licensee and representative), the services offered, how the provider and its staff are paid, any relationships or associations that could influence the advice, and the dispute resolution procedures available (how a client can complain, etc.). The FSG is mandated by the Corporations Act (Section 941, 942) and must be provided before or at the time of providing the financial service (which includes advice).

In general advice context: Even if you’re only giving general advice in, say, a seminar or initial phone inquiry, an FSG should be provided. For example, if a superannuation fund hosts an educational seminar for its members (which includes general financial advice about retirement planning), the presenters (who are representatives of the fund’s AFS license) need to ensure attendees have the FSG. This could be done by having copies at the registration desk, emailing it to attendees beforehand, or displaying a link/QR code on screen to the digital FSG at the start of the session. Likewise, if general advice is given over the phone, the representative might mention that an FSG is available on the company’s website or email one after the call (though technically it should be provided as soon as practical before the advice or at least immediately after if prior isn’t feasible).

Why it matters: The FSG informs clients of important information that could affect how they perceive the advice. For example, the FSG will tell them if the adviser is tied to a particular product issuer (conflict of interest) or if the adviser receives commissions for selling certain super products. It also explains fees (if any) that the client might incur for the advice service – although general advice sessions are often free, the FSG might reveal indirect costs or general fees of the institution. Providing the FSG is a legal requirement and failing to do so is a breach. But beyond compliance, giving out the FSG builds transparency. Clients are more likely to trust an adviser who openly shares “here’s who we are, here’s how we’re paid, here’s where to complain if something goes wrong.” It frames the relationship properly, even if that relationship in a general advice scenario is more limited.

Note: If the general advice is truly in a mass setting (like a radio show or a public webinar where you cannot realistically give each listener an FSG), ASIC has provided relief or exceptions in some cases, but generally any organized interaction where you know who you’re talking to, you should attempt to provide the FSG. Digital technology makes it easier now – you can have people click an “Agree” or download the FSG when signing up for a webinar, etc.

General Advice Warning (and How to Present It)

We’ve already covered the content of the general advice warning extensively. Here, we focus on its delivery details:

• Content of the Warning: The Corporations Regulations (specifically reg 7.7.11A) provide an example form of words which essentially say the advice is general and doesn’t take into account personal objectives, etc., and to consider appropriateness and read the PDS. Many licensees use a version of this wording verbatim. Some might add a line like “If you require personal advice, please consult a licensed financial adviser.” The key elements that must be conveyed are: (1) the advice is not tailored, (2) therefore the person should consider if it suits them, and (3) optionally, that they should read any relevant product disclosure and/or seek personal advice before making a decision.
• Timing: The warning must be given at the same time as the advice or before the advice is provided. In a live conversation or seminar, this means at the very beginning. In written material, it should appear at the start or, at minimum, prominently before the content gets into any advice or opinions. You wouldn’t want to hide the warning in fine print after paragraphs of guidance – that would defeat the purpose and potentially be considered non-compliant.
• Mode: For oral advice (like in-person or telephone), stating it clearly is enough, but consider the client’s understanding. Some advisers phrase it in a friendlier tone: “I need to let you know that…” or “Just so you’re aware…” etc. For written or electronic advice, the warning could be in bold text or a text box. Ensure it’s noticeable (e.g., not buried in a footer that people might not read). If you have slides in a seminar, the first or last slide could have the warning, and you can point to it.
• Frequency: If a single interaction is long (say an all-day workshop), repeating the warning at intervals or at least reminding at the end is wise. If multiple topics are covered, you might briefly remind, “Remember, everything we’re discussing today is general in nature.”

Why the warning is not just a formality: The general advice warning is often treated by some as a tick-the-box formality. But it has real significance. It can protect the adviser to some extent legally (showing you tried to clarify the nature of advice). More importantly, from an educational perspective, it alerts listeners that they need to think critically and not assume the speaker knows their personal needs. Studies (including ASIC’s own consumer research) have shown that many people gloss over or misunderstand these warnings. In fact, even when shown a general advice warning, a large proportion of consumers still believed the adviser was taking their personal situation into account or had some duty toward them. That’s concerning. Therefore, some experts recommend making the warning even plainer: e.g., “I do not know anything about you today, so I am not telling you what you personally should do. I am just giving general tips that may or may not be right for you.” Such a statement, while less formal, might resonate more with everyday listeners. You can pair the formal wording with a simpler explanation as I illustrated earlier.

Product Disclosure Statement (PDS)

What it is: A PDS is a document that must be provided when offering or recommending a specific financial product to a retail client. It contains detailed information about the product, including how it works, benefits, risks, costs, fees, and the issuer’s details. For superannuation, the PDS might be quite comprehensive, covering investment options, insurance, fees, how to open an account, cooling-off rights, etc.

In general advice context: If your general advice includes discussing or promoting a specific superannuation fund, or any financial product (like a particular managed fund, insurance inside super, etc.), and especially if you are inducing the audience to consider or acquire that product, you must give them the PDS (or access to it). For example:

• If you host a seminar for employees of a company about their corporate super plan (which is a specific product offered by, say, XYZ Super), you need to distribute the PDS for XYZ Super to attendees, because essentially you are talking up that particular fund.
• If during a general advice session you compare two specific super products (perhaps an industry fund vs a retail fund) and name them, you should have the PDS for those products available.
• On a one-on-one general advice phone call, if the caller asks about a product (“What does your super fund offer in terms of insurance?”), you would refer to the PDS or send it to them so they have the detailed info.

The idea is that whenever a recommendation or opinion is being given about a specific product (even if not tailored to the individual), the consumer should not act on that opinion without seeing the factual, regulated disclosures in the PDS. The PDS helps them make an informed decision.

Digital PDS: Nowadays, PDSs are often provided electronically. If you conduct a webinar, you might send a follow-up email with links to download PDSs of products mentioned. Or if you have a website with general advice content, you’ll see often there are hyperlinks “Download the [Product Name] PDS” whenever a product name is first introduced.

Important: The presence of a PDS does not remove the need for the general advice warning. Both work in tandem: the warning says “this isn’t personalized and check if it’s appropriate,” and the PDS provides the detailed info to help with that checking. If a client later complains “I wasn’t told about X risk of the product,” your defense might be “it’s disclosed in the PDS we gave you.” So from a compliance standpoint, always confirm PDS delivery. Some licensees require advisers to document that the client received the PDS (like a note in CRM, or have the client tick something if online). For group sessions, a list of attendees who were handed the PDS can be kept, or an email record that it was sent to all.

Record-Keeping for General Advice

While an adviser giving general advice doesn’t produce an SOA or personalized record of advice for the client, it is prudent (and often required by the licensee’s compliance rules) to maintain records of general advice interactions internally. The Corporations Act requires AFS licensees to keep records demonstrating their compliance with financial services laws. For personal advice, there are specific record-keeping requirements (like keeping the advice file for at least 7 years, including documents showing best interest duty was met). For general advice, the requirements are less prescriptive, but still:

• If you gave a seminar, keep a copy of the presentation slides, handouts, and list of attendees. Make a file note of when and where the seminar was, who presented, what topics covered, and that the general advice warning and FSG/PDS were provided. This way, if later someone claims “At the workshop the adviser told me I should do X,” you have materials to show what was actually said/offered was general in nature.
• If it’s a phone call or meeting where only general advice was provided, document the call. Some call centers even have standardized script sections to follow for general advice and might record calls. The record would reflect the inquiry, what info was given, and confirmation that disclaimers were stated. This helps if there’s a dispute or if ASIC audits how you’re handling general advice calls.
• Many licensees have a policy that even if you don’t give an SOA, you log general advice interactions in a register. E.g., “Date: 10 Oct 2025, Provided general advice to Client X regarding superannuation contribution limits and investment options. General advice warning given. No personal circumstances discussed.”
• Why bother with records if not required? Because it’s part of running an efficient, honest, fair service. If multiple staff might deal with the same person, having notes that “only general advice given so far” can alert others to maintain the same approach or know what the client has already been told. Also, in the event of a complaint to AFCA (ombudsman), having a contemporaneous record that you gave a clear warning and did not discuss their personal details can support your case.

Regulatory Guide 175 (which covers financial advice conduct) encourages good record-keeping even beyond the strict minimum law, as it contributes to good consumer outcomes and easier regulatory oversight.

No Statement of Advice (SOA) – But Perhaps a Generic Summary

As mentioned, you do not issue an SOA for general advice. However, some organizations still provide some form of written summary or publication to support the general advice given:

• For instance, if you run a seminar, you might hand out a brochure or flyer summarizing key points (with the requisite disclaimers in it). This is not an SOA addressed to each individual, but a generic educational resource.
• If a client calls with a question and you provide general advice, you might follow up with an email that recaps the generic information discussed and attaches a PDS or relevant fact sheet. The email would include a general advice disclaimer as well.
• Some financial institutions produce General Advice Reports or newsletters for clients. These are not personalized, but they document in writing the general advice on a topic. Example: A super fund might mail all its members a booklet titled “Retirement planning guide: general advice for our members.” Again, heavy with disclaimers, but it gives them something tangible to refer to.

Providing written materials can enhance the value of general advice because the client has something to study later, and it reduces the chance of mis-remembering verbal info. Just ensure any such materials are reviewed by compliance to confirm they truly stick to general advice and factual info, without sneaky personal advice.

Comparison with Personal Advice Documentation

To reinforce: If at any point you pivot to personal advice (say a client in a seminar approaches you afterward and requests specific advice just for them), the documentation requirements change drastically. Then, you’d treat it as a new personal advice engagement – provide an updated FSG if needed, do a fact-find, prepare an SOA, etc. Many advice firms completely separate their general advice educational seminars from personal advice services. For example, they might say “Today’s session is just information. If you want personal advice, we can set up a one-on-one meeting on another day under a separate engagement.” This clear separation helps manage compliance – you don’t inadvertently mix the two modes in one session.

In Sum – Compliance Checklist for General Advice Delivery

Let’s summarize a quick compliance checklist an adviser or licensee should follow when delivering general advice on superannuation:

1. Licence in Place: Ensure the entity and adviser are licensed for the products and for providing advice (even if only general). Check any limitations (e.g., some licences may restrict to general advice on certain product classes like superannuation and not others).
2. FSG Ready: Have an up-to-date Financial Services Guide and provide it to the client or audience in the required manner.
3. General Advice Warning: Prepare a clear general advice disclaimer. Practice delivering it succinctly and clearly for oral presentations; insert it prominently in written materials.
4. Content Review: Review the seminar slides, brochures, or speaking notes to confirm they contain no personal advice. Remove any case where it accidentally says “you should [specific thing]”. Make sure to include balanced info (benefits/risks).
5. PDS Availability: If any specific fund or product is mentioned or recommended broadly, have the latest PDS available for distribution.
6. During Delivery: Actually give the warning, provide the FSG, hand out PDSs at the right time. Stick to the script of general advice content. Do not deviate into someone’s personal details if asked in the group context.
7. Post-Delivery Documentation: Make a record of the event or interaction. Save materials and notes. Log compliance items (like “FSG provided via X method on X date”).
8. Follow-Up (if any): If attendees or clients reach out later, maintain the general advice approach unless formally engaging in personal advice. If sending follow-up info, keep disclaimers in those communications too.

Following these steps diligently will ensure that the adviser not only stays within the legal requirements but also provides a professional and trustworthy experience to clients. It shows that you respect the regulations and the client’s right to know the limitations of the advice.

Delivering General Advice in Group Settings (Seminars and Workshops)

Providing general advice in a group setting – such as public seminars, workplace retirement workshops, or educational webinars – is a common way to reach a broad audience with superannuation guidance. Group settings magnify both the opportunities and the risks of general advice. On one hand, you can efficiently inform many people at once. On the other, you must be extra careful that nothing you say (or how you respond to interactions) inadvertently becomes personal advice for one individual in the group. This section focuses on best practices for delivering compliant general advice in group contexts, ensuring audience engagement while maintaining the proper boundaries.

Setting the Stage – Preparation for the Seminar

Successful seminars begin long before the presenter steps on stage. In preparation, consider the following:

• Know Your Audience (to an extent): You might know general demographics of the expected audience which can guide the content. For example, if you’re speaking to a group of employees from a certain company, you might know their average age range or that they all are members of a certain superannuation fund. You can tailor the content topics to what’s likely relevant (e.g., if many are nearing retirement, focus on transition-to-retirement strategies generally). But be cautious: any known info should not tempt you into personalizing advice. It’s more about relevance of topics, not individual specifics.
• Venue and Materials: Ensure any slides or handouts carry the general advice disclaimer and your firm’s identity (so attendees later recall who gave the info and under what terms). Physical handouts like brochures should be reviewed by compliance and have disclaimers too.
• Registration Process: If people register for the seminar, that’s an opportunity to provide the FSG in advance (email them a PDF with confirmation details, for instance). Also, clarify in invites that the session is educational/general. For example, the invite could say “Join us for an informational seminar on superannuation (general advice only).” Setting that expectation even in promotional materials helps filter the mindset of attendees.
• Plan for Q&A: Anticipate that people will ask questions – possibly very specific ones. Decide how you will handle Q&A: will you take questions during, or only at the end? It might be wise to set ground rules at the start: “We’ll have time for general questions at the end, but I won’t be able to answer anything too personal or specific to an individual’s situation in this forum.” This pre-empts some issues. If the seminar is large, perhaps have an assistant or co-host moderate questions to avoid off-track scenarios.
• Scenario Planning: Think of a few commonly asked personal questions (like “What should I do about X?”) and prepare generic answers that steer back to general principles or offer an off-line follow up. It can be as simple as, “That’s a question that depends on individual details; generally here’s what to think about, but I’d be happy to speak one-on-one afterward or you may consult an adviser for personal guidance.”

Effective Group Communication Techniques

When the seminar begins, in addition to delivering the content clearly, an adviser should manage the group dynamic to maintain compliance:

• Reiterate the General Nature to the Group: As noted, start with the disclaimer. In a group, you can phrase it in inclusive terms: “We have a diverse group here today, so I’ll keep my advice general. I won’t be able to answer personal financial questions, but I will cover principles that everyone can consider.”
• Use Inclusive Examples: If explaining something, you might use multiple examples to cover a range. For instance, “For a young person in their 20s, super might not seem a priority but small contributions now can grow tremendously. For someone in their 50s, contributions catch-up and asset allocation become important. Let’s look at both scenarios…” By covering different hypothetical individuals, you make various attendees feel represented without directly advising any specific one.
• Visual Aids: Use charts or diagrams to explain super concepts. Visuals are factual and less likely to be misconstrued as personal advice; they simply illustrate ideas (like growth of $1 invested, or the composition of a balanced vs growth fund). If you show, say, a pie chart of a “Sample Balanced Option Allocation”, no one can mistake that as a prescription for them personally – it’s just an example.
• Control the Flow: If someone in the audience starts giving their personal details in a question publicly (“I have $200k in super, and I’m thinking of…what should I do?”), politely intervene to protect both them and you. You could respond, “Thank you for sharing, that sounds like something that might need a personalized look. I can speak generally about that topic… [then speak generally]. For your specific numbers, it might be best to get one-on-one advice after.” This not only stops them from divulging private data in public, but also steers away from you accidentally giving direct personal advice.
• Encourage Knowledge-Sharing, Not Advice-Seeking among the group: Sometimes one attendee might ask another “What are you doing?” or look for peer advice in the group. Steer the conversation back if it veers off. Keep the seminar on track by gently saying, “Everyone’s situation is a bit different, so let’s focus on these general strategies and you can weigh how it applies to you individually.”

Handling Personal Questions or Scenarios

Despite your best efforts, people will often try to get free personal advice in a group setting – it’s human nature. Handling this requires tact:

• Option to Deflect to After Session: One strategy is to say, “That’s a great question, but it’s quite specific to you. I’m happy to chat with you after we finish to give you some pointers or direct you to someone who can help personally.” Make sure if you do chat after, you either keep it general again or, if licensed and willing, arrange a proper personal advice engagement (which would be outside the seminar, under separate conditions). Many advisers use seminars as a lead generation – which is fine as long as you don’t start giving personalized mini-consultations on the spot without the proper process.
• Generalize the Specific Question: If someone’s question has broad relevance, you can strip the personal details and answer generally. For instance, question: “I’m 62, have about $500,000 in super, can I retire now?” General answer to audience: “The question of ‘when can I retire’ is a common one. Generally, factors like your super balance, other savings, expected expenses, and whether you’ll get the Age Pension all come into play. Some people might retire comfortably on $500k if they have modest needs and maybe part Age Pension, others might need more. It’s very individual. Let’s discuss how to estimate a retirement income need…” This way, you turned it into a topic rather than addressing that person’s exact readiness.
• Keep Responses Short if Personal: If someone really presses for personal advice and you don’t want to embarrass them by refusing outright in front of others, keep your answer very high-level and short, then advise them to seek further help. E.g., “There are a lot of variables in your case – off the cuff, it sounds like you’re doing X and Y which could be beneficial, but I really can’t say for sure without more analysis. I’d recommend you sit down with an adviser to go over those details.” By not giving a definitive answer, you avoid liability and underscore that personal advice requires a deeper dive.

Maintaining Compliance and Professionalism

Remember, even in a group casual setting, everything you say is effectively “on the record.” Especially if it’s a work-sponsored seminar or a public workshop, assume that regulators or your compliance manager could review what you presented. Stick to approved content.

One good practice is to have a compliance officer or a second adviser in the room (or on the webinar) if possible. They can observe whether any boundary is being neared and can subtly intervene or clarify if needed. For example, your colleague might add, “Just to reinforce, folks, we can’t advise you personally here, but these tips are meant to guide your own decision-making.”

After the session, debrief: note any tricky questions that came up and how you handled them. If any attendee feedback indicated confusion (like someone asks “so what should I do now?” after you thought you made it clear it was general), that’s a sign you might need to sharpen your disclaimers or educational approach.

Group Delivery Advantages and Providing Value

While we focus on compliance, also consider how to make general advice genuinely valuable to a broad audience, as the module goal states. Some tips:

• Interactive Elements: Use polls (“How many of you have checked your super investment option in the last year?” – show of hands). This engages people and also emphasizes general points (like if few hands go up, you highlight “This is common, many people don’t check often, but it’s something to consider doing annually.”).
• General Tools: Demonstrate generic tools or calculators. For instance, show how to use a compound interest calculator or a retirement projection tool (perhaps offered on MoneySmart or your super fund’s site) with dummy data. Encourage attendees to input their own numbers at home. This empowers them to DIY some analysis, bridging the gap between general concepts and personal application responsibly.
• Case Studies: People love stories. Present a couple of short case studies that are fictional but realistic: “Meet John, age 40, who never salary sacrificed, and Jane, age 40, who did from age 30; here’s how their super outcomes differ by 60.” Stories stick and illustrate why the general advice matters. Just make sure these stories are clearly hypothetical composites, not actual individuals in the room.
• Encourage Questions of General Interest: Some questions might not be personal but are general knowledge checks (“What happens if the market crashes, will my super be okay?”). Encourage those because answering them adds value for everyone. They often start with “what, how, when” rather than “should I”.

Follow-Up After Group Sessions

Finally, after a seminar or workshop, consider a follow-up communication to attendees:

• Thank them for attending, attach any promised resources (like “Here’s the link to the slides or to the super checklist we discussed”).
• Restate that the session was general info. Possibly include a line: “If you have further questions or think you might need personal advice, here’s how you can contact us.” This invites them but also formally delineates that personal advice would be a separate step.
• You might also share a FAQ sheet: if some general questions were asked, write them out with answers (again in general terms) for everyone.

All these steps in group settings ensure that the audience leaves informed but not misled, and the adviser delivers value without stepping over regulatory lines. Group general advice, done well, can be a powerful educational tool that also builds trust and credibility for the adviser. Clients may come back later for personal advice precisely because they found the general session useful and trustworthy.

Managing Conflicts of Interest in General Advice

Conflicts of interest can arise in any financial advice scenario, whether general or personal. A conflict of interest occurs when an adviser’s own interests (or those of their employer or related parties) could influence the advice given, potentially to the detriment of the client’s interests. In personal advice, laws impose a duty to prioritize the client’s interests. In general advice, the client’s personal interests aren’t individually considered, but conflicts still matter because they can color the content and tone of the advice and potentially mislead or disadvantage consumers as a whole.

For example, if an adviser’s firm manages a superannuation fund, any general advice that steers people towards that fund inherently carries a conflict: the firm benefits if more people invest in their product. Similarly, if an adviser gets a commission or bonus for each new account opened, that’s a conflict that might incentivize them to push the product more enthusiastically in a “general” seminar. It’s crucial to manage and disclose such conflicts to maintain compliance and trust.

Regulatory Expectations for Conflict Management

Australian financial services law (Corporations Act s912A(1)(aa)) requires AFS licensees to have adequate arrangements in place for the management of conflicts of interest. ASIC, in Regulatory Guide 181, outlines that managing conflicts involves:

• Identification of conflicts (be aware of where they exist),
• Controlling conflicts (through disclosure, structural separation, or avoiding the conflict),
• Disclosure of conflicts to clients where relevant, and
• Avoidance of conflicts that cannot be managed in any other way to ensure fair outcomes.

Even though general advice doesn’t trigger personal best-interest duty, the overarching obligations to be honest, fair, and not misleading absolutely still apply. If a conflict is so strong that it biases the information, ASIC could view the communication as misleading or lacking in appropriate disclosure.

Common Conflicts in Superannuation General Advice

In the superannuation realm, some typical conflict scenarios include:

• Product Manufacturer vs Adviser Role: Many super funds or banks run seminars and their presenters are effectively representatives of a product issuer. So the general advice might inherently favor that issuer’s products. E.g., a super fund’s seminar extolling the virtues of additional contributions – if the fund benefits from higher contributions (fees on larger balances), there’s a conflict. Or recommending people consolidate into their fund (they gain more FUM – funds under management).
• Commissions or Incentives: Although the FOFA reforms banned many forms of conflicted remuneration for personal advice (like investment commissions), there have been carve-outs or exceptions especially around general advice. For instance, historically, bank employees selling simple products under general advice could receive sales incentives (this has been scrutinized after the Royal Commission, but some volume-related rewards may still exist in areas outside personal advice). If an adviser gets any kind of remuneration that depends on the client taking up a product following the “advice”, that’s a conflict. For example, an insurance broker might give general advice on insurance and get a commission if the person buys – legally allowed for general insurance, but still a conflict to be managed.
• Affiliated Products: A financial planning firm might have an in-house superannuation product or an affiliated partnership. If their general advice content always highlights that particular product or a restricted list of “recommended” funds, they have a conflict if they’re not truly comparing the whole market. Or consider a stockbroker hosting a general seminar about “investing your super in shares” who then suggests using their firm’s brokerage services – they stand to earn fees from trading.

Best Practices to Manage and Mitigate Conflicts

1. Full Disclosure: Whenever a potential conflict exists, transparently disclose it to the audience. If you’re recommending a particular super fund and you happen to work for the company that manages that fund, tell the audience. For example: “Just so you know, I work for XYZ Super, and the concepts I’m discussing today will naturally include information about our fund. You should compare any fund’s features with others in the market. We believe XYZ Super has competitive fees and strong returns, but I encourage you to also look at independent comparisons.” This kind of disclosure alerts listeners that you have a vested interest. It should also be in the FSG – e.g., the FSG will list “XYZ Super Pty Ltd is a related company of the licensee” or “our representatives may recommend our own products and will receive a salary from us.”

If commissions or referral fees are involved, disclose those in plain language: “If you do decide to sign up for [Product] after this session, be aware that I do receive a small commission from the provider. It doesn’t cost you extra, but it does mean I have that incentive. I aim to make this session informative regardless of what you choose.” Not only is this ethical, but it also guards against later accusations that you hid your motive.

2. Emphasize Objectivity and Balance: Consciously counteract your own bias by ensuring your general advice includes balanced comparisons. For example, if you’re from a retail super fund, acknowledge the existence of industry funds and their typical advantages (like generally lower fees, no commissions). Conversely, if you represent an industry fund, acknowledge that retail or SMSFs might offer more customization for some people. By providing pros and cons of various options (not just the one you represent), you mitigate conflict by educating the audience rather than purely promoting one outcome.

From a compliance perspective, balanced information reduces the risk that your conflict leads to misrepresentation by omission. ASIC has penalized firms in the past for one-sided “general advice” that looked more like misleading marketing – for instance, highlighting only the positives of a product and none of the negatives can be deemed misleading or deceptive conduct.

3. Avoid High-Pressure Tactics: A conflict-laden scenario is often accompanied by high-pressure sales techniques (because the adviser wants the outcome that benefits them). In a compliant general advice context, you should deliberately avoid those tactics. Do not, for example, say “You must act now, sign up today to get this benefit!” unless there’s a genuine reason (like a legislative deadline) and even then present it factually. Pressuring individuals is especially problematic because it can blur into personal recommendation territory or be seen as an improper “hawking” of financial products (which is restricted by law for certain products including super – unsolicited selling of super is largely banned).

4. Implement Internal Controls: Licensees should have policies like no single person renumeration solely on product sales or quality-over-quantity metrics for general advice interactions. If you’re the adviser, be aware of your KPI or incentive structure. Strive to meet targets through ethical approaches, not by cutting compliance corners. Some organizations now train staff to treat general advice sessions as education first; any follow-on sales are handled by a different team or at a later time to decouple the immediate conflict. For example, a super fund might have educators who do not earn commissions, and a separate team for account opening that handles any execution if a person chooses to join the fund later, perhaps with cooling-off periods and all disclosures ensured.

5. Adhere to Professional Ethical Codes: Professional bodies (like the Financial Planning Association or CFA Institute, as mentioned) have ethics codes requiring disclosure of conflicts and maintaining objectivity. For example, the CFA Institute’s Standard of Professional Conduct on conflicts says members must make full disclosure of any conflicts that could affect their duties to clients. In an Australian context, the FASEA Code of Ethics Standard 3 says an adviser must not act if a conflict of interest “will influence” their advice to a client, and many interpret it strictly as avoiding any arrangement that creates a conflict (especially relevant for personal advice, but as a mindset can apply to general as well). While Standard 3 specifically applies to personal advice providers (relevant providers), as a best practice a conscientious adviser giving general advice would still reflect: “Am I letting a conflict influence what I’m saying? How do I ensure I’m putting the audience’s interest (to get accurate, useful info) ahead of my interest (to sell something)?”

6. Possibly Remove or Reduce the Conflict: In some cases, the best management is elimination. If a conflict is too strong, consider restructuring. For instance, if you cannot talk about alternatives because of your affiliation, maybe co-host the seminar with an independent guest speaker who can add perspective, or limit the session strictly to factual info about your product (and clearly label it as a product disclosure session rather than impartial advice). Or if commissions are causing bias, maybe drop that commission (some firms moved to flat fees or salary-only for staff to remove the incentive bias – this has happened post-Royal Commission for many financial institutions in Australia).

Example Scenario: Conflict Management

Imagine you are a financial adviser employed by “SecureFuture Super”, a superannuation fund provider. You’re tasked with giving a general advice webinar on “Choosing the Right Super Fund”. Obviously, your employer would love if all attendees choose SecureFuture Super. But compliance-wise, you need to handle this carefully:

• You start by disclosing: “Today’s webinar is hosted by SecureFuture Super, and I want to be upfront that I’m representing SecureFuture. While I’ll be talking about general factors in choosing a fund, I will naturally refer to some features of SecureFuture’s fund as examples. You should compare any fund on these factors. We have a Product Disclosure Statement available that details SecureFuture’s fund, and you should review that and others before making a choice.”
• You then present general criteria: fees, investment options, insurance offerings, performance track record, service features – and how to evaluate these. You might show a generic comparison table (without naming competitor brands explicitly to avoid defamation or such, but maybe hypothetical Fund A vs Fund B). You highlight that low fees and strong long-term performance are desirable. In doing so, you know SecureFuture has relatively low fees and good performance – so indirectly you’re making it look good, but you also say “some industry funds have very low fees because of their not-for-profit structure, whereas some retail funds offer more bells and whistles at a slightly higher fee – what’s right for you depends on what you value.”
• When it comes to SecureFuture’s turn, you say “Now, speaking of these criteria, here’s where SecureFuture stands: our fee is X%, which is among the lower quartile of funds; our default MySuper option returned Y% over 5 years, which is above median; we offer insurance automatically – but note, some funds don’t so always check. If you’re considering switching to us, or from us to someone else, weigh these factors.”
• By fairly presenting info and even acknowledging where other types of funds excel (maybe an example, “One thing SecureFuture doesn’t have is an extensive branch network; if you prefer face-to-face, another fund might suit you better. We operate online-first.”), you show honesty.
• At the end, you might provide a link to SecureFuture’s sign-up, but also encourage attendees to read comparison resources (like ASIC’s MoneySmart website that compares funds or the ATO’s YourSuper comparison tool).

In this scenario, you managed the conflict by disclosure and striving for objectivity. If SecureFuture’s management says “hey, you sounded like you were not 100% selling us,” you can point out that compliance and ethics required a balanced approach, which in the long run builds credibility and trust – clients who choose the fund after such a seminar do so informed, which means they’re likely a better fit and less likely to leave or complain later.