Practice Test Geeks(FASEA) Financial Adviser Standards and Ethics Authority Practice Test
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FASEA Client Best Interests Duty Flashcards

6 cards from real FASEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 FASEA Client Best Interests Duty flashcards as text

  1. Which legislative instrument underpins the FASEA Code of Ethics that governs the best interests duty for financial advisers in Australia?

    Answer: Corporations Act 2001

    The Corporations Act 2001 contains the legislative basis for the best interests duty obligations applicable to licensed financial advisers.

  2. The 'safe harbour' steps in financial advice regulation were designed to assist advisers in demonstrating compliance with which duty?

    Answer: Best interests duty

    The safe harbour steps provided a checklist-style framework advisers could follow to demonstrate they had met the best interests duty.

  3. When assessing whether advice satisfies the best interests duty, which factor is most important?

    Answer: Whether the advice is suitable for the client's needs and circumstances

    Suitability of advice to the client's individual needs, objectives, and financial situation is the core test for meeting the best interests duty.

  4. A client tells their adviser they want to invest aggressively despite being close to retirement. What should the adviser do to uphold the best interests duty?

    Answer: Provide advice based on a thorough assessment of the client's full situation, including their risk tolerance and timeframe

    The adviser must conduct a thorough needs analysis and ensure advice is appropriate to the client's overall situation, not just their stated preference.

  5. Under FASEA principles, what obligation does an adviser have when a potential conflict of interest exists with a client?

    Answer: Disclose the conflict and manage or avoid it

    Advisers must disclose actual and potential conflicts of interest and take steps to manage or avoid them to protect the client's best interests.

  6. Which of the following client scenarios would most clearly require an adviser to revisit and update their advice to maintain the best interests duty?

    Answer: The client experiences a major life event such as divorce or job loss

    Major life events materially change a client's financial circumstances, objectives, and risk profile, requiring the adviser to reassess their advice.

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Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

  1. download.asic.gov.au — Exam format, exam information · verified Nov 2026
  2. asic.gov.au — Test delivery, passing score, retake fee, retake policy, score release, score validity, eligibility, fees, late registration · verified Oct 2026