A Financial Services Guide, often called an FSG, is one of the first documents you should read before working with a financial adviser in Australia. It explains who is providing the financial service, what they are authorised to do, how they are paid, and what to do if something goes wrong.
In practical terms, the FSG tells you who stands behind the advice, what they can advise on, how they charge, and how conflicts and complaints are handled. That makes it one of the most useful documents for comparing financial advisers before you commit.
For anyone comparing financial planners, the FSG is not just a compliance document. It is a practical tool for checking whether the adviser’s services, costs and obligations match what you need.
What is a Financial Services Guide?
A Financial Services Guide is a disclosure document that gives retail clients important information about a financial services provider.
In financial advice, it usually explains:
- who the adviser or advice business is
- which Australian Financial Services Licence, or AFSL, the adviser operates under
- what financial services and product areas they can advise on
- how fees, commissions or other benefits are charged or received
- any relationships that may influence the advice
- how complaints are handled
- how privacy and compensation arrangements are managed
You may receive the FSG as a standalone document, as part of a website disclosure page, or in multiple parts. For example, some advice businesses provide one document for the licensee and a separate adviser profile for the individual financial planner.
The important point is that you should be able to access the information before deciding whether to use the service.
Why the FSG matters before choosing a financial adviser
The FSG gives you an early view of how the advice relationship is likely to work, so it’s important to review it before choosing an adviser.
A polished website may tell you an adviser is experienced, reputable, independent, award-winning or focused on retirement planning. The FSG should show the structure behind those claims. It should tell you who is legally responsible for the advice, what the adviser can actually provide, how they charge, and what limitations apply.
Two financial advisers may appear similar on the surface but operate under very different arrangements. One may provide comprehensive wealth management and retirement planning. Another may focus mainly on investment advice, insurance, or advice limited to certain financial products.
Reading the FSG helps you move beyond first impressions and assess whether the adviser’s business model is aligned with your expectations.
Before choosing a financial adviser, review the FSG for:
- Licence details: Check the AFSL holder and whether the adviser is an authorised representative
- Services offered: Confirm the adviser can help with areas like superannuation, retirement planning, investments or insurance
- Fees and commissions: Look for upfront fees, ongoing advice fees, asset-based fees, hourly rates, insurance commissions and referral payments
- Conflicts and ownership: Review any links to product providers, licensees, platforms or related businesses
- Complaints process: Check how complaints are handled and whether the business is a member of AFCA
What to Review in the Financial Services Guide
Below are the 11 top things to look at when reviewing the FSG before hiring a financial adviser.
1. Check who is actually providing the advice
The first thing to identify is the legal structure behind the adviser.
In Australia, a financial adviser may hold their own Australian Financial Services Licence or operate as an authorised representative of an AFSL holder. Many advisers work under a licensee rather than holding their own licence directly.
The FSG should clearly identify:
- the name of the AFSL holder
- the AFSL number
- the authorised representative details, if relevant
- the business name trading under that licence
- contact details for the licensee or advice business
This is important because the person you meet may not be the entity legally responsible for the advice framework. The licensee generally sets compliance standards, approves advice processes, and supervises the authorised representatives operating under its licence.
After reading the FSG, it is sensible to confirm the adviser’s details on the ASIC Financial Advisers Register. The register shows their current authorisation, qualifications, employment history and any disciplinary history recorded by ASIC. Licensed advisers are also subject to a statutory best interests duty when providing personal advice, meaning recommendations must prioritise the client’s interests.
2. Confirm what services the adviser is authorised to provide
An FSG should explain the financial services and product areas the adviser can provide advice on. Do not assume every financial adviser can advise on every area.
Depending on the adviser’s authorisations, they may be able to provide advice on areas such as:
- superannuation
- retirement income streams
- managed investments
- shares or exchange traded products
- life insurance
- self-managed super funds
- margin lending
- aged care
- Centrelink-related strategies
Some advisers provide comprehensive financial planning across several areas. Others provide personal advice within a narrower scope, such as investment advice, insurance advice or retirement planning.
This section of the FSG helps you work out whether the adviser’s authority matches your needs. For example, if you want SMSF advice, defined benefit superannuation guidance, or detailed retirement income planning, the FSG should give you an early indication of whether those areas sit within the adviser’s service offering.
3. Understand the scope of advice available
The FSG does not usually provide personal recommendations. Instead, it explains the types of advice and services that may be available.
Look closely at whether the firm offers:
- comprehensive financial planning
- limited or scaled advice
- one-off advice projects
- ongoing advice and review services
- implementation support
- portfolio management
- insurance advice
- retirement planning
The service model affects both cost and depth. A comprehensive financial plan may involve cash flow, superannuation, investments, insurance, retirement strategy and estate planning considerations. Limited advice may focus on one clearly defined question.
Neither is automatically better. The issue is whether the scope matches the decision you are trying to make.
4. Review how the adviser is paid
Fees are one of the most important parts of the FSG.
A good FSG should explain, in plain language, the types of fees and benefits the adviser, licensee or related parties may receive. It may not always list your exact fee, because that often depends on the scope of advice, but it should explain the possible charging methods.
Common fee types include:
| Fee or payment type | What it usually means | What to check |
|---|---|---|
| Initial advice fee | A fee for preparing your first advice document or strategy | Whether implementation is included or charged separately |
| Ongoing advice fee | A recurring fee for reviews, support and ongoing service | What services are included and how annual consent works |
| Hourly rate | A fee based on time spent | Whether there is an estimate or cap before work begins |
| Asset-based fee | A percentage of funds under advice | How the fee changes as your portfolio grows or falls |
| Insurance commission | A payment from an insurer when insurance is arranged | Whether commissions apply and whether fee-for-service alternatives exist |
| Referral fee | A payment for referring you to or from another professional | Who pays it and whether it could influence recommendations |
Fee disclosure should be specific enough for you to understand the adviser’s business model. If the FSG is vague, ask direct questions before proceeding.
5. Look for ongoing advice fee details
If an adviser offers ongoing service, the FSG should explain how those arrangements work at a high level.
Ongoing advice can include annual strategy reviews, portfolio monitoring, access to the adviser during the year, reporting, rebalancing, and updates when your circumstances change. However, the details vary widely between firms.
Ask what the ongoing fee covers and how often you will receive contact. Ongoing advice fees in Australia generally require clear consent and renewal arrangements, particularly following reforms introduced after the Royal Commission into the financial services industry. You should not be left unsure about what you are paying for or whether the service continues automatically.
The FSG gives you the first layer of information. Later, if you proceed, the specific fees and services should be documented in your advice documents or service agreement.
6. Check for commissions, benefits and conflicts of interest
The FSG should disclose remuneration and benefits that may be relevant to the advice relationship.
This can include:
- insurance commissions
- referral fees
- benefits from product providers
- ownership links
- relationships with platform providers
- related-party arrangements
- non-monetary benefits such as training, sponsorship or hospitality
Not every disclosed relationship is automatically a problem. Advisers are required to identify and manage conflicts of interest as part of their regulatory obligations, and the FSG is one of the places where those arrangements are disclosed.
For example, some advisers can receive commissions for life insurance advice where permitted. Others operate on a fee-for-service basis and rebate or avoid commissions. Some firms may use preferred platforms or approved product lists. Again, this does not automatically mean the advice is unsuitable, but you should understand the limitations before engaging the adviser.
If an adviser describes themselves as independent, it is worth checking this carefully. In Australia, independence has a specific legal meaning and cannot be used casually if commissions, conflicted remuneration or certain ownership links exist.
7. Review the adviser’s approved product list or product limitations
Some FSGs explain whether the adviser uses an approved product list. This is a list of products the licensee has approved for consideration or recommendation.
An approved list can be part of a normal advice process, but it may also limit what products are considered. Focus on how broad the list is, how products are selected, and what happens if a suitable option is not on the list.
Useful questions include:
- Do you use an approved product list?
- How broad is the list?
- Can you recommend products outside the list if appropriate?
- Are any products linked to the licensee or related parties?
- How do you compare existing products I already hold?
If this is unclear, ask for a plain-English explanation of how products are selected and compared.
8. Check complaints and dispute resolution information
The FSG should explain what to do if you are unhappy with the service or advice.
Look for:
- the internal complaints process
- who to contact first
- expected response timeframes
- membership of the Australian Financial Complaints Authority, known as AFCA
- AFCA contact details
AFCA is the external dispute resolution scheme for financial complaints in Australia. If a complaint cannot be resolved directly with the advice business or licensee, eligible consumers may be able to escalate the matter to AFCA.
A clear complaints process indicates the business has a structured way to deal with problems if they arise.
9. Look at privacy and document handling
Financial advice involves sharing sensitive personal and financial information. The FSG should usually explain how your information is collected, used and protected, or refer you to the firm’s privacy policy.
This is especially important if advice is delivered online or through secure portals. Before sending bank statements, tax details, superannuation information or identification documents, make sure you are comfortable with how the firm handles client data.
Practical questions include:
- How should documents be uploaded or shared?
- Who has access to my information?
- Is information stored in Australia or overseas?
- What happens if I stop being a client?
The FSG may not answer every operational detail, but it should point you toward the firm’s privacy arrangements.
10. Check compensation and professional indemnity arrangements
An FSG will often include information about compensation arrangements, usually professional indemnity insurance.
This does not guarantee that every loss will be covered. Investment losses, market movements and poor outcomes are not automatically compensation issues. However, compensation arrangements are part of the regulatory framework for licensed financial services businesses.
You do not need to become an insurance expert. The key is that appropriate arrangements are in place and clearly described in the FSG.
11. Compare the FSG with what the adviser tells you
One of the best ways to use an FSG is to compare it with the adviser’s website and first conversation.
If the adviser says they specialise in retirement planning, the FSG should support that by showing relevant service areas and authorisations. If the website suggests broad wealth management, the FSG should help clarify what is actually included. If the adviser emphasises independence, the FSG should not reveal commission structures or ownership links that contradict that claim.
Consistency builds confidence. Gaps do not always mean something is wrong, but they are worth questioning.
FSG checklist before engaging a financial adviser
Use this checklist when reviewing a Financial Services Guide.
| FSG section | What to look for | Why it matters |
|---|---|---|
| Licence details | AFSL holder, AFSL number, authorised representative details | Shows who is legally responsible for the advice framework |
| Services offered | Advice areas such as super, investments, insurance or retirement planning | Helps confirm whether the adviser can support your needs |
| Scope of advice | Comprehensive, limited, one-off or ongoing advice options | Clarifies what type of relationship you are entering |
| Fees and costs | Initial fees, ongoing fees, hourly rates, asset-based fees and implementation costs | Helps you understand the likely cost structure |
| Commissions and benefits | Insurance commissions, referral fees, related-party benefits | Highlights possible conflicts or incentives |
| Product limitations | Approved product lists or restricted product areas | Shows whether recommendations may be limited |
| Complaints process | Internal complaints contact and AFCA details | Explains your options if something goes wrong |
| Privacy | How personal and financial information is handled | Protects sensitive documents and client data |
Red flags in a Financial Services Guide
Some FSGs are long and technical, but they should still be understandable. Be cautious if you notice any of the following:
- the AFSL holder or authorised representative details are hard to identify
- the services are described so broadly that you cannot tell what is actually offered
- fee descriptions are vague or difficult to compare
- commissions or referral arrangements are mentioned but not clearly explained
- the complaints process is missing or incomplete
- ownership links or related-party relationships are unclear
- the document is outdated or does not match the adviser’s current business details
A single unclear section does not necessarily mean the adviser is unsuitable. It does indicate areas that should be clarified before proceeding.
Questions to ask after reading an FSG
The FSG should make your first conversation more productive. Once you have read it, consider asking:
- Are you the adviser who will provide my advice, or will another adviser be involved?
- Which AFSL are you authorised under?
- What areas are you authorised to advise on?
- Do you provide comprehensive financial planning or limited advice?
- What fees would apply to my situation?
- Are implementation fees separate from advice fees?
- Do you receive insurance commissions or referral payments?
- Do you use an approved product list?
- How are conflicts of interest managed?
- What happens if I choose not to proceed after the first meeting?
A strong adviser should welcome these questions. Clear answers are often a good sign that the relationship will be transparent from the beginning.
What an FSG does not tell you
An FSG is useful, but it has limits.
It does not tell you whether a particular strategy is right for you. It does not assess your goals, risk tolerance, cash flow, superannuation position or retirement needs. It also does not replace a Statement of Advice.
If you proceed with personal advice, your recommendations should be set out in written advice documentation. That document should explain the basis of the advice, the recommended strategies, relevant risks, fees, and why the advice is appropriate for your circumstances.
Think of the FSG as the document that helps you decide whether to engage the provider. The Statement of Advice, where required, is the document that explains the personal recommendation.
How the FSG fits into the advice process
In a typical advice process, the FSG comes early in the financial planning process.
You may receive it before your first meeting, during the initial consultation, or through the adviser’s website disclosure information. After that, the adviser may complete a fact-find, request supporting documents, analyse your position, and prepare written advice if you decide to proceed.
The sequence often looks like this:
| Stage | What usually happens |
|---|---|
| FSG or website disclosure | You learn who provides the service, what they offer, how they charge, and how complaints are handled. |
| Initial discussion | The adviser learns about your goals and explains whether they may be able to help. |
| Fact-finding | You provide detailed financial information and documents. |
| Advice preparation | The adviser develops recommendations based on the agreed scope. |
| Statement of Advice | You receive written personal advice, including recommendations, risks and fees. |
| Implementation and review | Recommendations are implemented only if you agree, with reviews if ongoing advice is arranged. |
Understanding this order helps reduce confusion. You are not expected to commit simply because you have received an FSG.
Frequently Asked Questions
Do financial advisers have to give me an FSG?
Financial services providers giving advice to retail clients must provide required disclosure information. In many cases this is done through a Financial Services Guide. In some limited situations, particularly where advice is delivered digitally, ASIC allows certain information to be provided via website disclosures instead of a traditional FSG format. Either way, you should be able to access clear information about the provider, services, fees and complaints process before deciding whether to engage them.
Is an FSG the same as a Statement of Advice?
No. An FSG explains the adviser, licensee, services, fees, conflicts and complaints process. A Statement of Advice sets out personal recommendations based on your objectives, financial situation and needs.
Should I read the FSG before the first meeting?
Yes. Reading it early helps you ask better questions about fees, services, authorisations and conflicts. It can also help you compare two financial advisers more clearly.
What if I don’t understand the FSG?
Ask the adviser to explain it in plain English. Disclosure should help you make an informed decision, not leave you more confused. If basic questions about fees, licence details or conflicts cannot be answered clearly, consider pausing before proceeding.
Can an FSG show whether an adviser is independent?
It can help. Look for references to commissions, ownership links, product provider relationships and approved product lists. In Australia, “independent” has a specific legal meaning, so an adviser should only use that term if they meet the required conditions.
Where can I check an adviser after reading the FSG?
You can search the ASIC Financial Advisers Register to confirm an adviser’s authorisation, qualifications, employment history and any disciplinary history recorded by ASIC.
The bottom line
A Financial Services Guide is not just paperwork to skim past. It is one of the simplest ways to understand who you are dealing with before receiving financial advice.
A well-prepared FSG outlines the adviser’s licence structure, services, fees, conflicts and complaints process in a way that supports an informed decision. Read alongside the adviser’s website, first meeting and ASIC register listing, it helps build a clearer picture of how the advice relationship will work.
