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  • Advising on Financial Instruments

    • AU-1.4.41

      Advising on financial instruments means giving advice to an investor or potential investor (or a person in his capacity as an agent for an investor or potential investor) on the merits of buying, selling, subscribing for or underwriting a particular financial instrument or exercising any right conferred by such a financial instrument.

      Amended: October 2012

    • AU-1.4.41A

      For the purpose of Rule AU-1.4.41, advising on financial instruments includes giving digital financial advice also known as 'robo-advice' or 'automated advice' using a computer program and algorithm to generate the advice.

      Added: April 2019

    • AU-1.4.42

      The activity defined in Rule AU-1.4.41 above does not include advising on mergers and acquisitions, unless otherwise agreed with the CBB on a case by case basis.

      Added: July 2010

    • AU-1.4.43

      [This Paragraph was deleted in July 2020].

      Deleted: July 2020
      Added: July 2010

    • AU-1.4.44

      The following are examples of activities, which may be regarded as an activity as defined by Rule AU-1.4.41:

      (a) A person may offer to tell a client when shares reach a certain value on the basis that when the price reaches that value it would be a good time to buy or sell them;
      (b) Recommendation on the size or timing of transactions; and
      (c) Advice on the suitability of the financial instrument, or on the characteristics or performance of the financial instrument or credit facility concerned.
      Amended: July 2010
      Amended: July 2007

    • AU-1.4.45

      A person does not carry on an activity specified in Rule AU-1.4.41 by giving advice in any newspaper, journal, magazine, broadcast services or similar service in any medium if the principal purpose of the publication or service, taken as a whole, is neither:

      (a) That of giving advice of the kind mentioned in Rule AU-1.4.41; nor
      (b) That of leading or enabling persons to buy, sell, subscribe for or underwrite a financial instrument.
      Amended: October 2012
      Amended: July 2010
      Amended: July 2007

    • AU-1.4.46

      The following are examples of activities which, when taken in isolation, are unlikely to be regarded as an activity as defined by Rule AU-1.4.41:

      (a) Explaining the structure or the terms and conditions of a financial instrument or credit facility;
      (b) Valuing financial instruments for which there is no ready market;
      (c) Circulating company news or announcements;
      (d) Comparing the benefits and risks of one financial instrument to another; and
      (e) Advising on the likely meaning of uncertain provisions in an agreement relating to, or the terms of, a financial instrument or on the effect of contractual terms and their commercial consequences or on terms that are commonly accepted in the market.
      Amended: July 2010
      Amended: July 2007

    • AU-1.4.47

      A person undertaking an activity of the kind specified under Rule AU-1.4.41 cannot accept or hold client assets or execute negotiable instruments such as cheques on behalf of a client.

      Amended: July 2010
      Amended: July 2007