Document background
The Financial Advisor Engagement Letter is a mandatory document in the Australian financial services industry that formalizes the professional relationship between financial advisors and their clients. This document must comply with various regulatory requirements, including the Corporations Act 2001, ASIC regulations, and FASEA standards. It is used when establishing new client relationships or updating existing arrangements with financial advisory clients. The letter outlines essential elements such as service scope, fee structures, advisor obligations, client responsibilities, privacy commitments, and required regulatory disclosures. It serves as both a legal protection mechanism and a clear communication tool, ensuring transparency and understanding between parties while meeting regulatory obligations in the Australian jurisdiction.
