Key issues: Financial advice | advice provided by non-CIO member

Summary of Determination

  1. The consumers were provided with financial advice by a representative of another AFSL in Statements of Advice dated 26 March 2009 and 26 May 2009. The other AFSL was authorised to provide financial services under AFSL number xxxxxx. 
  2. In June 2009, the other AFSL ceased trading. The FSP acquired certain business assets of, and related parties to, the other AFSL. The FSP also began trading as [a name similar to the other AFSL] and was authorisedto provide financial services under its own AFSL number yyyyyy. TheFSP did not conduct any business under AFSL number xxxxxx and did not assume any liability for the services provided by the other AFSL.

  3. The facts of this complaint show that the financial services provided to the consumers were not provided by the FSP and the FSP has not otherwise
    assumed any responsibility or liability for the advice provided to the consumers by the other 

  4. I find that the financial advice provided to the consumers was provided by the other AFSL. However, the other AFSL is not a member of CIO. This means that CIO is unable to deal with the consumers’ complaint about the advice provided to them by the other AFSL.

Follow this link for a full copy in PDF >> Determination | 28 April 2015