Factual Information - We are not financial planners
The world of financial planning is a complex one and many are finding it difficult to trust financial planners who are affiliated to large financial institutions and banks, and I don't blame them. Unfortunately the culture of some of these organisations have historically been to focus on sales and commissions and not what is in the clients bests interests. However times are changing and compliance in the financial planning has become a lot stronger.
At Power to My Pension, we are a factual information and administrative service and do not hold an Australian Financial Service License (AFSL). Its important to have an understanding of the below terms used in the financial planning industry and what the keys differences are.
Factual Information
ASIC defines factual information as 'objectively ascertainable information, the truth or accuracy of which cannot reasonably be questioned'. At Power to My Pension we do not require to hold an Australian Financial Service (AFS) License to give Centrelink factual information or administrative support to our clients.
Personal Financial Advice VS General Advice
ASIC defines Personal Financial Advice as; 'Advice that is presented in a way that means a reasonable person might expect you to have considered one or more of the client’s objectives, financial situation or needs'. Generally with Personal Financial Advice you will receive a document called a Statement of Advice (SoA) which outlines your objectives, the financial strategy and recommendations on a financial product and why these recommendations have been made. It must also include the basis on which the advice is given.
ASIC defines general advice as; 'General advice about a financial product will not be personal advice if you clarify with the client at the outset that you are giving general advice, and you do not, in fact, take into account the client’s objectives, financial situation or needs'.
Generally when personal and general advice is provided a copy of the companies financial service guide (FSG) is provided and its contents is explained.
At times, we may suggest that you consult a licensed and trusted financial planner who will take into account your full financial situation, goals and objectives. You can check whether a person is licensed or authorised financial adviser by visiting ASIC at www.moneysmart.gov.au.