Financial Services Guide (FSG)

A Financial Services Guide (FSG) is a disclosure document required under the Corporations Act 2001 that must be provided to retail clients before, or at the time, a financial service is provided. For insurance purposes, any person or company providing advice or dealing in insurance products must issue an FSG. The document must clearly explain: what financial services are offered; who will provide the service; how the adviser or broker is paid (including commissions from insurers); any conflicts of interest or associations with product providers; the complaints handling process; and whether the adviser is independent or holds only limited authorizing licensee authority. FSGs help consumers make informed decisions about whether to use a particular adviser or broker and understand any potential biases in the advice. The guide must be written in clear, concise language accessible to retail clients. Failing to provide an FSG, or providing one with misleading information, can result in significant penalties from ASIC.