Provide FSG + Statement of Advice to retail clients
Financial Services Guide before service; Statement of Advice for personal advice.
Who must comply
AFSL holders + ARs providing services to retail clients.
What triggers it
Providing financial service or personal advice.
When due
FSG before service; SOA at time of advice.
Evidence required
Current FSG; signed SOA + file note.
Max penalty
Civil penalties to AFSL maximum; ASIC remediation orders
Summary
Sections 941A-952A Corporations Act require AFSL holders + ARs to provide a Financial Services Guide (FSG) before providing financial service to a retail client. Statement of Advice required for personal advice; SOAs detail subject + basis of advice + remuneration + warnings.
Enforced by
Source legislation
Entity types
Topics
Related obligations
- CWLTHComply with AFSL general obligations (s 912A)AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.
- CWLTHReport reportable situations to ASIC within 30 days (RG 78)AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
- CWLTHComply with Design and Distribution Obligations (DDO)Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.
- CWLTHMaintain adequate PI insurance (AFSL holders, RG 126)AFSL holders providing financial services to retail clients must hold adequate professional indemnity insurance.
- CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
- CWLTHMaintain AFCA membership (mandatory external dispute resolution)AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.
Frequently asked questions
- Who must comply with FSG + Statement of Advice to retail clients?
- AFSL holders + ARs providing services to retail clients.
- What triggers FSG + Statement of Advice to retail clients?
- Providing financial service or personal advice.
- When is FSG + Statement of Advice to retail clients due?
- FSG before service; SOA at time of advice.
- What is the maximum penalty for FSG + Statement of Advice to retail clients?
- Civil penalties to AFSL maximum; ASIC remediation orders
- What evidence is required for FSG + Statement of Advice to retail clients?
- Current FSG; signed SOA + file note.
Source: https://asic.gov.au/regulatory-resources/financial-services/financial-services-guides-fsg/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.