Document background
The Financial Engagement Letter is a fundamental document used in the Australian financial services industry to formalize the professional relationship between financial service providers and their clients. It is typically used when commencing a new financial services engagement or updating existing service arrangements. The letter must comply with Australian regulatory requirements, including ASIC guidelines and the Corporations Act 2001, and should contain detailed information about service scope, fees, professional obligations, and required disclosures. This document is particularly important in the context of Australian financial services licensing requirements and serves as a key risk management tool for both service providers and clients. The Financial Engagement Letter also helps demonstrate compliance with professional standards and ensures clarity regarding the nature and limitations of the services being provided.
