Personal v General Advice CDP - Price Financial Intelligence

What is the difference between Personal Advice, General Advice & Factual Information

What is Personal Advice

The provision of personal advice requires the provider of that advice to know the personal objectives of the client and to act efficiently, honestly and fairly in providing this advice.

To meet these objectives the provider of the advice must undertake detailed investigations into the personal circumstances of the client/clients including a detailed fact find on their personal circumstances, risk profile, and investment goals.

The cost of providing this advice ranges from $3,500 to as much as $15,000 for complex cases. The average cost is about $4,500 depending on the time taken.

Options

As our client, you can choose to have your account designated as a Client Directed Portfolio” and what this means is “You will choose your investment product options based on General Product Advice only”.

What is General Advice

General advice is restricted to advice limited to the product that you have requested information about, prior to you making your own decision to invest in that product.

At PFI, we have no interest in any investment you may select, and you are free to choose any investment from a range of ASX Listed Securities, Exchange Traded Funds, Listed Investment Companies and Term Deposits that may be available on your selected platform.

Because, we are not providing Personal Advice, we will not be undertaking detailed investigations into your personal circumstances, and we will not be billing you for these services.

Because of the reduced ongoing compliance requirements, we have reduced your ongoing fee by one-third.

What is Factual Information

General advice is different to factual information.

Factual Information can give you useful facts about a financial product. Examples of factualinformation may include descriptions of basic features of superannuation accounts and/or fees and interest rates on term deposits.

This information is usually available free of charge from places like websites, banks and the ASX.

As PFI will not be making the decision on your actual investment portfolio, you will lose the right to hold us responsible for the selection of your investment portfolio.

With a “Client Directed Portfolio” you will still be entitled to an annual review of your portfolio performance, and you will be free to change your portfolio at any time.

We will always provide you with a general recommendation, however many stocks contain a spread of investments such as Washington Soul Pattenson SOL or Wilson Asset Manager WAM which will enable you to spread your risk.

The purpose of this document is to ensure that you understand the difference between Personal Advice and General Advice and the difference in the costs between these services.

At PFI, we are committed to providing affordable advice that can be accessed either as one-off advice or by way of a retainer to ensure that you can access advice as and when you need it.

In providing this service, PFI will be arranging on your behalf as our client to apply for, and acquire, a range of financial products. These may include financial products in the form of a bank deposit account, Managed Investment Scheme, Superannuation interests and securities. PFI holds appropriate AFSL authorities to offer these services.

PFI’s financial product advice is factual information and is statement of opinion on the suitability of a particular investment which may or may not be suitable for inclusion in your Client Directed Portfolio.

In providing general advice PFI, the advice provider does NOT take into account your own objectives, financial situation or needs and you should consider if the advice is appropriate for you before acting on it.

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