From 11 March 2004, persons who carry on a Financial Services business or
provide advice about Extended Warranty Products in Australia are required to
hold an Australian Financial Services Licence (AFSL) pursuant to Section 911a
of the Corporations Act. An alternative to holding a AFSL is to operate as an
authorised representative of an AFSL Holder.
What this means to you, the Consumer:
The Financial Services Reform Act (FSRA) has two primary obligations:
1. Promoting consumer confidence in using financial services (Warranty
Products); and
2. Promoting the provision of efficient, honest and fair financial services by
all licensees and their representatives by imposing uniform disclosure
obligations to consumers by Warranty companies.
How the FSRA protects you:
By introducing the FSRA, it makes the licensee responsible for complying with
the obligations that the legislation places on it. In other words, you have
protection in the financial service that you have invested in and can rely with
confidence on the disclosure that has been made.
IMPORTANT NOTE: Before considering purchasing a Warranty
Product for your protection, ensure:
-
You receive a Product Disclosure Statement (PDS);
-
You receive a Financial Services Guide (FSG); and
-
You satisfy yourself that the Warranty company holds an AFS Licence, or is an
Authorised Representative of an AFS-Licensed Insurer.
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