Useful financial terms
Invest View has a policy of talking to you in plain English. We steer clear of confusing acronyms and technical financial terms. However, here are a few terms that you should be aware of as they are used widely in financial planning.
SoA
SoA stands for "Statement of Advice". This is a legally required document that sets out the individually tailored plan that we develop for your financial circumstances. The SOA is your Financial Plan.
FSG
FSG stands for Financial Service Guide. This is a detailed, legal document that the regulator ASIC requires all product and advice providers to give investors. It explains the services and types of products they offer and should help you decide whether to use their financial services.
PDS
PDS stands for Product Disclosure Statement. This is a document that contains information about a financial product, including any significant benefits and risks, the cost of the financial product and the fees and charges that the financial product or advice issuer may receive.
Cooling off period
A period of 14 days set by the regulator ASIC that allows consumers time to change their mind after purchasing a financial product or service (it does not apply to share transactions).
SMSF
SMSF stands for Self Managed Superannuation Fund (also known as DIY (do-it-yourself) super fund). A superannuation vehicle that enables individuals, families and self-employed to reduce the cost and complexity of their superannuation whilst increasing the level of control and direction of their financial retirement and lifestyle goals.
ASIC
ASIC stands for Australian Securities & Investments Commission. The financial services regulator set up by the government to protect consumers.
FPA
FPA stands for Financial Planning Association of Australia. This is the peak industry body for financial planners.