Replacing a product? Twelve questions.
Use this when your advice recommends the client get out of, or reduce, one product and move into another, including from a MySuper product to another MySuper or choice product in the same fund (s947D(1)). The first six questions are what the SoA must disclose; the rest are what ASIC says your investigation and judgement must weigh.
Checked against the law on 7 October 2026.
- 01
What the SoA must disclose
Does the SoA set out the charges the client will or may incur in getting out of, or reducing, the existing product?
s947D(2)(a)(i)
- 02
What the SoA must disclose
Does it set out the charges the client will or may incur in acquiring, or increasing, the new product?
s947D(2)(a)(ii)
- 03
What the SoA must disclose
Does it set out the benefits, money or otherwise, that the client will or may lose by switching, even temporarily?
s947D(2)(a)(iii)
- 04
What the SoA must disclose
Does it set out any other significant consequences of the switch that you know, or ought reasonably to know, are likely?
s947D(2)(b)
- 05
What the SoA must disclose
Are the charges and lost benefits stated as amounts in dollars, unless the regulations or ASIC relief allow otherwise?
s947D(2)(d); RG 175.118
- 06
What the SoA must disclose
Where you know there will or may be charges, losses or consequences but cannot find out what they are, does the SoA say so?
s947D(3)
- 07
What the investigation must cover
Did you investigate the existing product, to see whether it might meet the client’s relevant circumstances?
s961B(2)(e); RG 175.257(a)
- 08
What the investigation must cover
Did you investigate the new products the client could move to, and the one you recommend?
s961B(2)(e); RG 175.257(b) and (c)
- 09
Is the switch appropriate?
Did you weigh the benefits and disadvantages, including the costs and risks, of both the existing and the new product?
RG 175.291
- 10
Is the switch appropriate?
Would it be reasonable to conclude the client’s likely net benefits are better under the new product than the existing one?
s961G; RG 175.293
- 11
Is the switch appropriate?
Does your cost comparison include the cost of making the switch, and your fees if they are payable only if the switch is made?
RG 175.295
- 12
If you use a Record of Advice
If this is further advice recorded in a Record of Advice: does the record give brief particulars of the switching information, and acknowledge any s947D(3) statement given?
Corporations Regulations reg 7.7.09(1)(b)
Sources
- Corporations Act 2001 (compilation of 19 September 2026)
- Corporations Regulations 2001 (compilation of 1 September 2026)
- ASIC Regulatory Guide 175 (November 2024)
This is a self-check and general information, not legal or compliance advice. The questions paraphrase the law; the exact words are in the sources above. How an obligation applies turns on your licence, your licensee's policies and the advice given. Confirm with your licensee or legal adviser.