Financial Service Guide

In Australia, a Financial Services Guide (FSG) is a document that financial service providers are required to provide to their clients. The purpose of the FSG is to provide clients with important information about the financial services being offered, as well as details about the financial service provider, including their remuneration and any potential conflicts of interest. Here are the key components typically found in a Financial Services Guide:

1. Introduction: The FSG typically begins with an introduction that outlines the purpose of the document and the types of financial services offered by the provider.

2. About the Financial Service Provider: This section provides information about the financial service provider, including their name, contact details, and Australian Financial Services (AFS) license number. It may also include details about the provider’s background, history, and experience in the industry.

3. Services Offered: The FSG outlines the specific financial services offered by the provider, such as financial planning, investment advice, insurance broking, or superannuation services.

4. Fees and Charges: This section details the fees and charges associated with the financial services offered. It may include information about upfront fees, ongoing fees, commissions, and other costs that clients may incur.

5. Remuneration and Conflicts of Interest: Financial service providers are required to disclose how they are remunerated for the services they provide. This may include details about commissions, referral fees, and other forms of remuneration. The FSG also outlines any potential conflicts of interest that may arise from the provider’s remuneration structure.

6. Complaints Handling Process: The FSG typically includes information about the provider’s complaints handling process, including how clients can make a complaint and how complaints will be addressed.

7. Privacy Policy: Financial service providers are required to comply with privacy laws in Australia, and the FSG will usually include information about how the provider collects, uses, and discloses personal information.

8. Additional Information: The FSG may include additional information relevant to the client, such as the provider’s membership in professional associations, insurance arrangements, or any other disclosures required by law.