Factual information
Describes features without recommending a course of action — for example, explaining that super guarantee exists and employers must contribute at the statutory rate. No consideration of whether a product suits you personally.
General advice
Recommends a course of action but not tailored to your full circumstances — still requires AFSL authorisation for financial products. Marketing seminars and some bank “reviews” sit here; PDS and FSG still matter.
Disclosure documents in meetings
Financial Services Guides, Product Disclosure Statements and Statements of Advice each serve a distinct purpose. Clients should receive the right document before acting on a recommendation.
Personal advice
Takes into account your objectives, financial situation and needs — typically requires a Statement of Advice for retail clients. Implementation without SOA where required is a serious compliance failure by the provider.
Practical recognition cues
- Did they ask detailed questions about your income, debts, dependants and goals?
- Did they name a specific product and urge immediate application?
- Did you receive an FSG and PDS before signing?
- Is the person on ASIC’s register with appropriate authorisations?
Warning: Social media influencers and property seminars often cross into advice territory without licensing. “Educational” labels do not override substance.
What to do when uncertain
Ask the provider to state in writing which category applies. If personal advice is appropriate, engage an AFSL licensee. If you only needed information, our regulation education or orientation may suffice without product sales.
Case vignette: property seminar
A client attended a seminar promoting “wealth structures” around off-the-plan property. Slides used educational branding but urged immediate application forms. We classified the event as likely general or personal advice territory requiring licensing — the client did not sign on the night and later engaged a licensee separately with SOA. The vignette illustrates why labels on flyers matter less than substance.
Records to keep
Retain FSG, PDS, SOA, and email confirmations. If disputes arise, AFCA and licensees review what was disclosed at the time of advice — not hindsight market performance.