Quick Answer: When Do You Need A Financial Services Guide?

When must a financial services Guide be given?

(1) Subject to this section, the Financial Services Guide must be given to the client as soon as practicable after it becomes apparent to the providing entity that the financial service will be, or is likely to be, provided to the client, and must in any event be given to the client before the financial service is

What is the purpose of a financial services guide?

A guide that contains information about the entity providing you with financial advice. It should explain the financial service offered, the fees charged and how the person or company providing the service will deal with complaints.

Do you need an AFSL to provide general advice?

The Corporations Act and ASIC require that if you carry on a business in Australia of giving financial advice you must hold and Australian Financial Services Licence (AFSL) with an authorisation to give advice, or be an authorised representative of such a licensee.

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What counts as financial advice?

In section 1 of FAIS, “advice” means “ any recommendation, guidance or proposal of a financial nature furnished by any means or medium to a client in respect of purchasing any financial product, or in respect of the investment in any financial product or on the conclusion of any other transaction including a loan or

How do you give financial advice?

First Things First: A Few Financial Basics

  1. Create a Financial Calendar.
  2. Check Your Interest Rate.
  3. Track Your Net Worth.
  4. Set a Budget, Period.
  5. Consider an All-Cash Diet.
  6. Take a Daily Money Minute.
  7. Allocate at Least 20% of Your Income Toward Financial Priorities.
  8. Budget About 30% of Your Income for Lifestyle Spending.

What must be included in a statement of advice?

A document that sets out the advice given to a consumer by their licensed financial planner or adviser. It must include the basis on which the advice is given, details of the providing entity, and information on any payments or benefits the adviser or licensee will receive.

What is meant by financial service?

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual

What is best interest duty?

The best interests duty and related obligations are designed to ensure that retail clients receive advice that meets their objectives, financial situation and needs, and that you act in the best interests of your clients when providing advice.

What is FSG in financial planning?

If you give financial product advice to retail clients, you must provide a Financial Services Guide (FSG). The FSG is designed to provide clients with enough information to decide whether to obtain financial advice (or any other financial service) from you.

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What is Tier 2 Advice?

Structure. Under RG146 an adviser can be categorised in one of two ways, providing General financial advice or providing Personal financial advice. General financial advice is categorised as Tier 2, and Personal financial advice is categorised as Tier 1.

Can Tier 2 give personal advice?

FSI020 Tier 2 Compliance General and Personal Advice (General Insurance) Upon successful completion of this program participants will be able to provide personal and general advice on Tier 2 products (excluding basic deposit products and related non-cash payment products).

What does an Afsl allow you to do?

An AFS licence authorises you and your representatives to provide financial services to clients. You provide financial services if you: provide financial product advice to clients for example, giving a recommendation to clients or the general public about which financial product they should purchase.

Why do Youtubers say this is not financial advice?

Since the youtuber does not investigate the investing portfolio of each viewer and does not give the personalized recommendation, it could not be treated legally ( in Europe) as a “trading” or “ financial “ advice. So basically, the Youtubers need to save themselves from the legal consequences.

Why say this is not financial advice?

When you ask a question, the professionals always state “not investment advice” because they don’t know your full situation and are not in control of how you deal with that information, yet feel they can help with some advice.

Is Series 7 or 65 Harder?

Generally, for those persons with the Series 7 license, the Series 66 exam is easier to pass than the Series 65. 65 is easier, much less material. I found it harder to study for the 65 because the material was so boring. The material in the Series 7 is not nearly as difficult or extensive.

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