What consitutes legal advice?

Discussion in 'Legal Issues' started by TMNT, 21st Jun, 2015.

  1. TMNT

    TMNT Member

    Joined:
    13th Jun, 2012
    Messages:
    3,430
    Location:
    Drone
    got me thinking due to a recent discussion,

    you know how brokers, advisors etc. arent allowed to give specific legal/investment advice,

    so what exactly constitues legal advice,

    to me everything is legal advice,

    something like "Oh go and buy CBA shares, they will do well" is obviously a no no

    but what about in reply to "are CBA shares good"

    what about "oh if you want to buy more properties you should go for a higher LVR"

    what about "if you want high CG, go for regionals"

    what about "you should have an offset instead of redraw for your loan setup"

    where do you draw the line? or does it depend on the manner of delivery? eg in stead of someone saying "CBA shares are good, go and buy" is a customer asking "do you think CBA is good" or "I want to buy CBA shares, how do i"
     
  2. Terry_w

    Terry_w Member

    Joined:
    19th Mar, 2012
    Messages:
    9,610
    Location:
    Sydney, NSW
    None of the above would be legal advice.

    Buying shares is financial advice and would need an AFSL or authorised rep status.

    The loan stuff is credit advice and would need a credit licence.
     
  3. RPI

    RPI Member

    Joined:
    17th Apr, 2003
    Messages:
    2,090
    Location:
    Brisbane
    The biggest ones we see are where accountants give advice in relation to Asset Protection on structures. Have seen insurer refuse to cover the accountant because they provided legal advice.
     
  4. Terry_w

    Terry_w Member

    Joined:
    19th Mar, 2012
    Messages:
    9,610
    Location:
    Sydney, NSW
    And the advice is usually incorrect too:D

    Or not useful or complete "buy that in a trust for protection"
     
  5. Scott No Mates

    Scott No Mates ...and people wonder why?

    Joined:
    25th Jun, 2011
    Messages:
    5,391
    Media:
    144
    Location:
    Sydney - LNS
    Ansell offers protection too but is that financial, legal or other protection? :eek:
     
  6. wylie

    wylie Member

    Joined:
    29th Apr, 2005
    Messages:
    12,682
    Media:
    238
    Location:
    Brisbane Queensland
    I reckon it would cover financial and legal... and maybe protect your health too.
     
  7. GreyGhost

    GreyGhost Member

    Joined:
    17th Feb, 2015
    Messages:
    207
    Location:
    Melbourne
    I have checked with the institute of chartered accountants (CA), and structure advice and certain advice in relation to property is covered under their membership. But I tend to stick to analysis, feasibility, what-if type advice, not specific preferences of x share eg
     
  8. Terry_w

    Terry_w Member

    Joined:
    19th Mar, 2012
    Messages:
    9,610
    Location:
    Sydney, NSW
    Taxation aspects perhaps. But questions such as 'who should be appointor', 'whose name should I buy this property in' are dangerous for the accountant as their answers could be legal advice.