Understanding general and personal financial advice

Factual information can describe how a product, process or rule works without expressing a recommendation or opinion. It may help you learn the vocabulary and identify questions, but it does not select a course of action for you.

Even accurate facts can be incomplete when taken out of context. Check the date and source, particularly where rates, thresholds, rules or product terms may change.

General financial product advice may express a recommendation or opinion, but it does not take your objectives, financial situation or needs into account. That limitation matters even if the material seems relevant to people in a similar position.

A general-advice warning is a cue to consider whether you need advice that examines your own circumstances before acting.

Personal financial product advice is advice where the provider has considered one or more of your objectives, financial situation or needs, or where a reasonable person might expect those matters to have been considered.

A provider offering personal advice should explain the scope, information required, costs, applicable authorisations and advice documentation. Personal advice can still be limited to a particular subject, so confirm what is and is not included.

Before relying on a recommendation, ask whether it is factual information, general advice or personal advice. Also ask who is responsible for the service, how to verify relevant credentials and whether any product or referral relationships apply.

AFC helps people find a direction and can facilitate introductions. That introduction is separate from any advice a third-party provider may later give within its own professional scope.