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.
𝙏𝙞𝙢𝙞𝙣𝙜 𝙤𝙛 𝙜𝙞𝙫𝙞𝙣𝙜 𝙁𝙎𝙂
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
𝘛𝘪𝘮𝘦 𝘤𝘳𝘪𝘵𝘪𝘤𝘢𝘭 𝘤𝘢𝘴𝘦𝘴
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.
𝘾𝙤𝙣𝙩𝙚𝙣𝙩𝙨 𝙤𝙛 𝙖 𝙁𝙎𝙂
The title ‘𝘍𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘚𝘦𝘳𝘷𝘪𝘤𝘦𝘴 𝘎𝘶𝘪𝘥𝘦’ must be on the cover of, or near the front of, the FSG. Thereafter, the abbreviation ‘𝘍𝘚𝘎’, 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
𝙈𝙪𝙡𝙩𝙞𝙥𝙡𝙚 𝙙𝙤𝙘𝙪𝙢𝙚𝙣𝙩𝙨
ss942D & 942DA
A FSG may consist of multiple documents such as, for brokers bound by the Code, a 𝘛𝘦𝘳𝘮𝘴 𝘰𝘧 𝘌𝘯𝘨𝘢𝘨𝘦𝘮𝘦𝘯𝘵 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.