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The Documents Part 2 – Financial Services Guide (FSG)

Every interaction between the client and the authorised representative begins with the FSG. The relevant regulation is CORPORATIONS ACT 2001 – SECT 942C which outlines a number of provisions which we will summarise below.

What

A FSG provides a client with relevant information that confirms the person providing the advice has the appropriate authority. This form is a standard template and will rarely be changed.

A FSG contains the contact details of the licensee and the providing entity, information about the authorised representative including the type of advice for which they are authorised, their fees and charges, the process if there is a complaint and the Date the FSG was prepared.

Who

The authorised representative must forward this to every client when it becomes apparent that advice will be required. If someone is making an appointment they are seeking advice and thus in the finance wise portal the FSG is emailed automatically to clients as soon as an appointment is made.

In a typical situation a client will phone your office to make an appointment. The person who makes the appointment will confirm their name and contact details including an email address. Typically, an SMSF will comprise of at least 2 members and if each member has a separate email address then each member will receive an FSG.

If the email bounces the authorised representative will receive an email and will contact the client or check their client records and update them in the portal and an FSG will be sent to the correct address(es)

When

The FSG is sent immediately when a client’s email address is entered.

Why

By sending the FASG automatically it ensures the practice is complying with the ASIC requirements.

But what if ..

  1. Additional members arrive at the meeting? Their contact details will be entered into the portal as a standard component of the advice process and an FSG will be emailed to those members.
  2. Additional members join the fund after the SoA is completed. You will be required to forward these members an FSG

The finance wise portal populates a file note to confirm the date and time that the FSG has been sent.  When an audit is performed information about the FSG transmission is automatically available to auditors as this information stays on our system for at least seven years.

Other articles in this series:

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