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fee for service

An amount paid to a service provider such as an accountant, adviser or lawyer, for specific work, completed at your request, for your benefit. Different to a commission.

finance broker

A go-between who negotiates with banks and other credit providers to arrange loans on behalf of others. They must be licensed by ASIC or be an authorised representative of someone who is licensed. See check ASIC lists for how to check for a licence.

financial adviser

A person or authorised representative of an organisation licensed by ASIC to provide advice on some or all of these areas: investing, superannuation, retirement planning, estate planning, risk management, insurance and taxation.

financial counsellor

A person who gives free, confidential and independent assistance to people with financial problems. Financial counselling services are usually provided by community or welfare organisations.

financial plan

A plan, usually created with help from a financial planner or adviser, that defines your financial goals and sets out investment strategies to reach your stated goals, with reference to your personal circumstances.

financial planner

See financial adviser.

financial product

A facility that helps you to save, invest, get insurance or borrow money.

financial service

A service dealing with the management of money. It includes providing advice on financial products, dealing in financial products, making a market for financial products, operating a registered scheme or providing a custodial or depository service.

Financial Services Guide (FSG)

A guide that contains information about the entity providing you with financial advice. It should explain the financial service offered, the fees charged and how the person or company providing the service will deal with complaints.

First Home Owners Grant

A grant provided by state governments to first home buyers, to offset the effect of the GST on buying or building a home. For more information see the Government's First Home Owner's Grant website.

First Home Saver Account

A savings account for consumers who are saving to buy or build their first home. The Australian Government makes a contribution each year based on how much you have saved. Interest on your savings is taxed at a low rate. There is a maximum balance the account can hold.

fixed deposit

See term deposit.

fixed interest investment

An investment where you lend money to a government or semi-government body, a company or a fund in return for a fixed rate of interest. The investment can be held until maturity or traded beforehand. Examples include term deposits, bonds, debentures and mezzanine investments.

fixed interest rate

Interest is paid at a fixed rate over the term of a loan or investment. Opposite of variable interest rate.

fixed rate home loan

Allows you to lock in an interest rate on your loan, typically for 1 to 5 years. Protects against interest rate rises but also means you won’t benefit from falling interest rates. Opposite of variable rate home loan.

fixed term deposit

Money left with a bank or other investment provider for a fixed period at a pre-agreed interest rate.

flag fall

A fixed fee for connecting a phone call. It is added to the charge of the length of the call.

float

When a company lists on a stock exchange and offers shares to the public for purchase. Also known as an initial public offering (IPO).

franking credit

Your share of the tax a company has already paid on the profits you received as a dividend or distribution.

FSG

See Financial Services Guide.

fully franked dividend

A share dividend on which the company has already paid tax. This means shareholders are entitled to a credit for the amount of tax the company has already paid. This credit is known as an imputation credit or franking credit.

fund choice

Allows employees to choose the super fund their employer pays their super contributions into.

fund manager

Individual or organisation responsible for investing funds on behalf of a financial institution. See also investment manager.

funeral bond

A capital guaranteed managed fund to accumulate benefits to help meet the future cost of funeral expenses. Funeral bonds have tax and Centrelink advantages.

futures

Legally binding contracts to buy or sell a particular asset, currency or other index, for a specified price on a specified future date.

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