ASIC / Legal Compliance

Frequently Asked Questions

Investor DNA® - Simplifying compliance complexity

Investor DNA® helps Wealth Advisers meet their regulatory obligations in the following ways:

Investor DNA®:

Supports adviser responsibility of obtaining sufficient information about the client’s relevant circumstances - objectives, financial situation and needs Investor DNA® strengthens this process by giving advisers a structured, evidence‑based risk profile that integrates seamlessly with broader fact‑finding, helping advisers link the client’s goals and financial situation to a clearly documented risk position: (Corporations Act s961G)

Identifies and document the client’s risk appetite, risk tolerance, risk capacity and required risk. (Corporations Act 2001 s961B(2)(b) and s961B(2)(g); ASIC RG 175.229–233; FASEA Code Standards 5, 6, 9)

Assesses behavioural factors that may influence decision‑making (ASIC RG 175, 229-233).

Ensures the risk‑profiling method is fit for purpose, consistent, and evidence‑based (AFSL obligations under Corporations Act s912A(1)(a),(e),(f), ASIC RG 175.229-233 and FASEA Code standards 5,6,9).
Investor DNA®:

Provides a structured, multi‑dimensional assessment of risk appetite, tolerance, capacity and required risk, ensuring that they have taken reasonable steps to understand the client’s risk preferences. (Corporations Act 2001 s961B)

Ensures the advice process includes a structured, defensible risk‑profiling assessment.(Corporations Act 2001 s961B(2)(g))

Enables advisers to evaluate alternative strategies against the client's risk profile and explain why the recommended strategy is best aligned to the client’s total risk profile. (owned by Adviser, supported by Investor DNA)
Investor DNA®:

Provides advisers with a clear, multi‑dimensional risk profile that separates and measures all four risk dimensions as required under the Corporations Act 2001 - s961G,

Enables the adviser to ensure that all advice is appropriate and matches a client's risk profile, including:

risk appetite

risk tolerance

risk capacity

required risk to meet goals

Helping advisers demonstrate that the recommended strategy aligns with the client’s behavioural preferences, financial position and required risk level. (Corporations Act 2001 s961G and ASIC RG 175.229–233))

Risk Signature enables advisers to avoid recommendations that over‑risk or under‑risk the client. (Corporations Act 2001 - s961G)
Investor DNA®:

Enables advises to demonstrate that product selections and strategy design were driven by the client’s needs and risk position rather than external or commercial influences. It does this by providing an objective, evidence‑based risk profile that anchors the advice process, (Corporations Act 2001 s961J; FASEA Code Standards 5, 6, 9)

Provides advisers with a clear, auditable link between the client’s documented risk profile and the recommended solution, supporting a defensible rationale to ensure that recommendations are not overridden by product bias, revenue incentives or internal preferences.(Corporations Act 2001 s961J)

Provides evidence that the adviser acted in the client’s best interests and avoided conflicts. (Corporations Act 2001 - Conflicts Priority Rule s961J; ASIC RG 175.239–245)
Investor DNA®:

Records how the client’s risk profile was determined. (ASIC RG 175.229–233; Corporations Act 2001 s912A(1)(a),(g))

Enables advisers to align their advice with the client's risk profile (SOA/ROA).(Corporations Act 2001 s961B(2)(g); ASIC RG 175.264–268)

Maintains clear, auditable records of all client profile and risk data (Corporations Act 2001 s912A(1)(a),(g)), FASEA Code of Ethics Standard 8,.

Enables advisers to generate an updated profile when client circumstances change. (Corporations Act 2001 s961B(2)(c); ASIC RG 175.239–245)
Investor DNA®:

Provides traceability between the client's profile, including risk, and adviser recommendations, thus demonstrating that they have acted in the client’s best interests — (FASEA Code of Ethics Standard 2)

Ensures advice is based on reliable and complete information. Investor DNA provides a robust and consistent profiling process, including a thorough and detailed risk profile covering risk appetite, sensitivity to loss, tolerance, capacity and required risk. (FASEA Code of Ethics Standard 5)

Enables advisers to consider broader, long‑term effects of risk decisions. (FASEA Code of Ethics Standard 6)

Investor DNA provides a transparent and thorough process, enabling Advisers to demonstrate competence, good faith and non-misleading conduct. (FASEA Code of Ethics Standard 9)
Investor DNA®:

Records all client risk profiling data, stored on Amazon Web Services (AWS), as part of providing adequate risk management systems. s912A(1)(h)

Provides advisers with robust, consistent risk‑profiling processes. (Corporations Act 2001 - s912A(1)(a)(ca)(f))

Enables advisers to monitor advice files for risk‑profile alignment. Investor DNA stores all client data on the adviser's dashboard, allowing for updated advice to be aligned to their risk profile on an ongoing basis, (Corporations Act 2001 - s912A(1)(ca)(h)(a))

Ensures that all tools and questionnaires are methodologically sound. Investor DNA is a science-based profiling system that has the highest quality standard designed by qualified professionals in behavioural science and psychology, registered with the Australian Psychological Society. (MAPS)

Produces valid, reliable and consistent results over different time intervals. Investor DNA demonstrates high construct/content validity (measures what is purports to measure), face validity, test-retest reliability and predictive validity. (Corporations Act 2001 - s912A(1)(a)(e)(f)(h)

Investor DNA Pty Ltd.

AUSTRALIA

ABN 36 987 581 121

Investor DNA Pty Ltd.

Melbourne Victoria 3000

AUSTRALIA