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Under National Privacy Policy (NPP 1, 2, 5 and 10) what obligation do you have when dealing with this question

Jim and Kostas are both colleagues at Brite White Teeth Cleaning Products Corporation, a medium size company to which you provide corporate superannuation advice. You have run a successful seminar for employees of Brite White Teeth Cleaning about the benefits of salary sacrificing part of their income into superannuation. Both Jim and Kostas expressed interest in seeking advice on personal financial planning matters with your office, and you have already successfully seen Kostas. You are in the process of completing a Statement of Advice (SOA) for Kostas and will be presenting the SOA to him and his wife later in the month.
Jim comes to see you at your office, and tells you Kostas has told him how satisfied and relieved he is that he sought your advice. Jim tells you that he is very good friends with Kostas and they have worked together for 8 years. After going through your FSG and explaining the different levels of service you can provide, you start to gather information via the client questionnaire from Jim including his current financial situation, goals and objectives.

  • When you ask Jim how much salary he earns, he says, “It’s the same as Kostas’s salary right?” Under National Privacy Policy (NPP 1, 2, 5 and 10) what obligation do you have when dealing with this question?


  • Explain your obligation to Kostas when addressing Jim’s question in part (a). Answer it as though you are speaking to Jim. For example, “Jim, you must understand that….”

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