One of the compliance requirements of the Financial Advisors Act 2008 (The Act) is the delivery of a Disclosure Statement (DS) prior to providing your services.
From The Act:
22. Financial adviser must make disclosure before performing financial adviser service
The process of recording the delivery of the DS can be a cost and time burden on your business. You may also find yourself often asking the question: “Did I send that person my DS?”
The Act states that delivery of the DS can include electronic delivery and this provides you with an opportunity to deliver, track and record the event automatically and by doing so reduce the time and cost to your business in complying with this requirement.
Clause from the Financial Advisors Act 2008:
24. How disclosure must be made by authorised financial adviser
(1) Disclosure by an authorised financial adviser must be made in a disclosure statement.
(2) The disclosure statement must—
(a) be in writing; and
(b) state when it was prepared; and
(c) state the name, address, and business telephone number of the financial adviser; and
(d) be either received by the client, or delivered or sent to the client, at the client’s last known address or an address (including an electronic address)
Mobilize Mail has an automated solution for you. Our solution will enable you to deliver, track, and record the delivery of your Disclosure Statement. Every Mobilize Mail account has a document library facility where you can store your documents e.g. pdf. There is no fee for uploading and storing your documents in the document library in your account. For compliance with The Act we currently have clients that are using their document library facility to store their Disclosure Statement and delivering it automatically via an auto responder message.
To deliver the DS to a client a standard auto responder (auto email message) is created. The email message can be plain text or HTML utilizing your email template to show your business brand, links to your website etc. The email message can also be personalized e.g. Hello [first name].
Within the email message content is a clickable link to the DS. The link is tracked so a click on the link produces a measurement of the event and you now have a historical record of delivering the DS email message and your client’s click on the document itself.
Do You Need to Deliver a Disclosure Statement?
Here are the clauses from The Act that identify what services and products require the delivery of the
What is financial adviser service
A person (A) performs a financial adviser service if, in the course of business, A—
(a) gives financial advice; or
(b) makes an investment transaction; or
(c) provides a financial planning service.
category 1 product means—
(a) a security (other than a security that is a category 2 product); or
(b) any estate or interest in land; or
(c) a futures contract; or
(d) any other product specified by the regulations
category 2 product means—
(a) a call debt security; or
(b) a bank term deposit; or
(c) an insurance product excluding a life insurance policy issued after 31 December 2008; or
(d) a consumer credit contract as defined in section 11 of the Credit Contracts and Consumer Finance Act 2003; or
(e) any other product specified by the regulations
22 Financial adviser must make disclosure before performing financial adviser service
* Subject to section 26, a financial adviser who performs a financial adviser service must make disclosure, in accordance with this Act and the regulations, to the person for whom the financial adviser service is performed before (or, if not practicable before, as soon as practicable after) performing the financial adviser service.
Source: Go to Financial Advisors Act 2008