As consumers, we often underestimate the power that comes with understanding our rights when dealing with financial services providers. It is the responsibility of organizations like ours to raise awareness and educate consumers about their rights. One of the most critical rights that consumers have is to receive clear and understandable information about financial products and services. In this article, we will highlight some of the essential rights that you should be aware of as a consumer, as outlined in the ACT.
As a consumer you have the right to:
- Request a copy of the “Disclosure and Appointment Letter,” which outlines the advisor’s identity, business details, authorized products and suppliers, commission rates, and grievance procedures.
- Receive trustworthy and appropriate advice and solutions, subject to affordability and suitability tests.
- Right to the privacy of their personal and financial information, which should only be used for the purpose for which it was provided.
- Be treated with honesty, transparency, and integrity when dealing with financial service providers.
- Understand the commission charges associated with the financial products and the terms and conditions of the financial product or service they have purchased.
- Cancel a financial product or service within a certain period of time, known as the cooling-off period.
- Know the details of costs and payment methods.
- Receive an annual report on the status of their financial product.
- Receive a copy of the agreement within 30 days of signing it.
- Have access to recourse in case of disputes, meaning that the consumer has the right to have their complaint.
- investigated fairly and impartially and if they are not satisfied with the outcome of the investigations, they have the right to appeal.
It is important for consumers to be aware of their rights and to exercise them when necessary to protect themselves from unfair treatment or practices in the financial services industry. Something of importance that the consumer needs to be aware of is that the FSPs and brokers must conduct a needs analysis to understand the financial needs and objectives of the consumer before recommending a financial product.
