Notice · Financial Services Regulation
Client notice for AI-assisted or digital financial advice
Plain-English client notice explaining how a licensee uses AI in its advice service, who is responsible, what the tools do and do not do, the type and scope of advice, human oversight, privacy and complaints.
- Kind
- Notice. A formal notice to serve or publish.
- Where it applies
- Australia, United Kingdom (England and Wales)
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked against the cited sources on 17 October 2026.
- Version
- 1
- Source
- Written for this library
When to use it
Use when an AFS licensee or authorised representative uses AI or a digital advice tool to give information, general advice or personal advice to retail clients, or to prepare advice documents. It does not replace the Financial Services Guide or Statement of Advice, and it cannot cure advice that fails the best interests duty.
How AI may be used
AI may help draft and simplify the notice, but every statement about what the tool does, who reviews it and where data goes must be checked against how the system actually works. A wrong description is itself a compliance risk.
AI may
- Draft plain-language descriptions of each AI function from the licensee's system documentation.
- Test the draft for readability and flag jargon or undefined terms.
- Compare the notice with the Financial Services Guide and privacy policy and list inconsistencies.
AI must not
- Must not describe capabilities, human review or testing that the licensee does not actually have.
- Must not choose between the general advice and personal advice alternatives; that is a legal characterisation for the lawyer.
- Must not insert data-location or model-training statements that have not been confirmed with the vendor contract.
The lawyer checks
- The advice characterisation (general or personal) matches how a reasonable client would see the service (s 766B(3)).
- Each statement about AI functions, human review, testing and data handling is true and supported by documents.
- The general advice warning, complaints and AFCA details are complete and current.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Official form
Open the official form. Always use the current version from the issuer.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Financial Services Regulation
- Reportable situation (breach) report to ASIC: assessment worksheet and completion guide
- AFS or credit licensee AI governance policy
- Target market determination (template with statutory checklist)
- Responsible lending unsuitability assessment record (credit providers)
- Internal dispute resolution (IDR) final response letter, with delay notification
All precedents for Financial Services Regulation · Tasks and AI use in this area