As the FSG is a legal document it’s important that your FSG has legal sign-off. Copying & pasting the FSG of another should be avoided.
A Licensee (s941A) or, independently, an Authorised rep (s940A), must give a person a FSG if a financial service is provided to a retail client.
๐๐๐ข๐๐ฃ๐ ๐ค๐ ๐๐๐ซ๐๐ฃ๐ ๐๐๐
The FSG must be given as soon as practicable after it becomes apparent to the providing entity that the financial service will be, or is likely to be, provided & in any event before the financial service is provided.
Generally, for insurance brokers, this means the earlier of, an appointment or when first providing financial product advice. For insurers & underwriting agencies this generally is at the time of making an offer for insurance products (eg a quote).
In respect of claims handling & settling services; insurance brokers, underwriting agencies, insurers & insurance claim managers are not required to provide an FSG as the FSG was provided at the time of sale/engagement.
However, claimant intermediaries (who act for insureds) must provide an FSG before they provide the financial service.
Refer to s941C for situations in which an FSG is not required
๐๐ช๐ฎ๐ฆ ๐ค๐ณ๐ช๐ต๐ช๐ค๐ข๐ญ ๐ค๐ข๐ด๐ฆ๐ด
If the client immediately requests the financial service or it is not reasonably practicable to give an FSG before providing the service, a statement may be provided (meeting the requirements of s941D(3)) & the FSG provided within 5 days after the statement.
๐พ๐ค๐ฃ๐ฉ๐๐ฃ๐ฉ๐จ ๐ค๐ ๐ ๐๐๐
The title ‘๐๐ช๐ฏ๐ข๐ฏ๐ค๐ช๐ข๐ญ ๐๐ฆ๐ณ๐ท๐ช๐ค๐ฆ๐ด ๐๐ถ๐ช๐ฅ๐ฆ’ must be on the cover of, or near the front of, the FSG. Thereafter, the abbreviation ‘๐๐๐’, may be used.
An FSG must be dated, presented in a clear, concise & effective manner & contain (see s942B also refer to Part 7.7 Div 2 of the regulations):
- details of the provider including AFSL or AR number
- the financial services provided
- who the provider acts for
- details of remuneration & benefits (incl commission)
- details of associations or relationships between the provider & issuer (including any related body corporate)
- for personal advice, details of restricted words or expressions. This includes, for insurance brokers who are paid a commission, that the broker is not independent, impartial or unbiased.
- information about dispute resolution & how it can be accessed (IDR & EDR)
- for underwriting agencies details of any binder
- a statement about PI cover
๐๐ช๐ก๐ฉ๐๐ฅ๐ก๐ ๐๐ค๐๐ช๐ข๐๐ฃ๐ฉ๐จ
ss942D & 942DA
A FSG may consist of multiple documents such as, for brokers bound by the Code, a ๐๐ฆ๐ณ๐ฎ๐ด ๐ฐ๐ง ๐๐ฏ๐จ๐ข๐จ๐ฆ๐ฎ๐ฆ๐ฏ๐ต however must have on the cover a statement to the effect the document is part of a FSG.
For insurers & underwriting agencies, an FSG may be combined with a PDS in a single document.