Financial Planning Glossary of Terms
What does it mean?
Terms used in Financial Planning can often be difficult to understand. Therefore, we have provided the meaning of some of these terms for you.
Australian Financial Services Licence (AFSL)
An Australian Financial Services Licence (AFSL) is the authority given by the Australian Securities and Investment Commission (ASIC), and authorises a person, or company, to carry out financial services that are specified in the licence. Changes to the Corporations Act as a result of the Financial Services Reform Act specify five main classes of financial services for which an AFSL is required:
- Provide financial advice
- Deal in a financial product
- Make a market for a financial product
- Operate a registered scheme
- Provide a custodial or depository service
Taggart Nominees Pty Ltd has been granted an AFSL effective 1 January 2004, and commenced operating under their licence on 19 January 2004. Taggart Nominees Pty Ltd, ABN 74 808 036 976, operates under AFSL number 234973. Taggart Nominees Pty Ltd has been granted authority to provide financial advice and to deal in a financial product.
Representative or Authorised Representative
A Representative or Authorised Representative of a financial service licensee means a person employed and/or authorised by the licensee to provide a financial service on behalf of the licensee. Taggart Nominees Pty Ltd does not have any Authorised Representatives; only employee Representatives.
Certified Financial Planner (CFP® )
This is the highest professional recognition that can be given to a financial planner, and is a designation given by the FPA. A CFP practitioner has extensive experience and has undergone rigorous study. The qualifications gained by a CFP practitioner are well in excess of those required under Australian standards. Jim Taggart has gained CFP status, which he achieved in 2002.
Financial Services Guide (FSG)
This guide outlines information about the licensee and the financial planner. Information such as who the planner works for, how they can charge for their services, the range of services provided by the licensee, and products that can be recommended is generally included in the FSG. Please click here to access our FSG.
Product Disclosure Statement (PDS)
A PDS is the document/booklet given to you where a recommendation is made to buy a financial product or an offer is made for a financial product. PDS's were previously known as prospectus or customer information brochures.
Statement of Advice (SoA)
The SoA was previously known as a financial plan. You may still here the SoA called a financial plan. The SoA is customised and tailored to your individual needs and circumstances. It recommends strategies and relevant investments to achieve your financial goals. An SoA will also be provided to you if you are seeking defined scope [limited] advice such as personal risk insurance or superannuation investments or rollovers.
General Advice and What you need to know.
Important: Please Read our 'General Advice Disclaimer'.