Jargon Translator

We try not to use jargon and to explain everything carefully in straight forward terms.  Just in case we slip up from time to time, we maintain here a glossary of financial industry terms.  Please let us know if you come across something that is not on our list.

AFSL – Australian Financial Services License.  An organisation or individual must hold one of these before they can give financial advice.  Summation Strategies’ AFSL is Australian Investment and Insurance Group.

AR – Authorised Representative.  An AFSL appoints its advisers as authorised representatives.  Both Summation Strategies and Anne Taylor are ARs of Australian Investment and Insurance Group.

Cleanskin – A term used within the Life Insurance industry for a person who has no pre-existing medical conditions.

Diversification – The process of spreading an investment across different types of investments in order to reduce risk

Independent – An AFSL that has no financial relationship with any financial institution and that does not receive any commissions or charge percentage based fees.

Liquidity – The speed in which an investment can be converted to cash (eg property is non-liquid, a bank account is very liquid).

Non-aligned – An AFSL that no financial relationship with any financial institution.

Rider – Additional cover or feature added to an insurance policy.

SMSF – Self Managed Superannuation Fund.

Superannuation Pension – An income stream paid from an individual’s personally accumulated superannuation.

TPD – Total and Permanent Disability.