|
WHAT IS THE FSRA ?
FSRA was introduced to bring all financial services and products under one regulatory regime. It also aimed to increase the level of compliance and competency in the financial services industry. Two components of FSRA are licensing and training. Every person who gives advice about a financial product (e.g.) superannuation, insurance, derivatives or shares etc must either hold an Australian Financial Services License (the licensee) or be authorized by a licensee to give advice on their behalf (referred to as employees, directors and authorized representatives).
THE PURPOSE OF THE FSRA:
- To establish a single uniform licensing regime that applies to all participants in the financial services industry;
- To create fair, orderly and transparent markets
- To enhance the fairness, honesty and professionalism of all financial services providers
- To enhance confident and informed decision making by consumers
WHAT HAPPENED FROM 11TH MARCH 2004 ?
On the 11th March 2004, the transition period finished and all financial services providers were required to meet all FSR licensing requirements.
A financial services provider must either:
- Hold an Australia Financial Services (AFS) Licence; or
- Be authorized by an AFS Licensee to provide financial services on its behalf; A person authorized in this manner is known as an “authorized representative”.
WHAT IS A FINANCIAL PRODUCT ?
A financial product is
- A facility by which a customer
- makes a financial investment;
- managers financial risk (eg general/life risk insurance)
PROVISION OF DISCLOSURE DOCUMENTS:
Financial Services Guide (FSG) and when is it used ?
An FSG is a document that provides information to retail clients about the type of services offered by a providing entity. An FSF must be given by:
- A licensee, if the licensee provides a financial service to a retail client and is not the product issuer; or
- An authorized representative, if the authorized representative provides service to a retail client.
The Financial Services Guide contains information about our service and charges, your rights as a client and other things you need to know in relation to insurance matters including how complaints you ma have will be dealt with.
If you would like to view our current Financial Services Guide click here.
Statement of Advice (SoA):
When you take into consideration the individual circumstances of a client e.g. their age, risk profile or financial circumstances you are considered to have given personal advice. You must provide the customer with a SoA outlining why you have given the said advice.
What is a Product Disclosure Statement (PDS) ?
A PDS contains important information required by the FSRA. It is designed to assist the insured in understanding the insurance policy and making an informed choice about their insurance requirements. A PDS sets out:
- Features of the product
- Fees that apply
- The benefits and risks of investing
- Commissions that may affect your returns
- Information about complaints handling and cooling off rights, and
- Other information that is material to your decision to invest.
For more information regarding the FSRA, please click on the attached link http://www.asic.gov.au
 Some documents on this page require Microsoft Word
If you do not have Microsoft Word, click here to download the free viewer.
|
FSRA - Financial Services Reform Act
Home