LETTER OF ENGAGEMENT FOR SERVICES

Transcription

1 Chapter Two Australia Pty Ltd Level 57, MLC Centre 19 Martin Place Sydney NSW 2000 GPO Box 348 Sydney NSW 2001 Tel: ABN: LETTER OF ENGAGEMENT FOR SERVICES The purpose of this letter is to confirm the terms of Our engagement by You and the disclosure of Our services and fees ( Agreement ). This letter also sets out Our respective rights and obligations when working with each other to achieve Your aims. By accepting the terms of this engagement letter you acknowledge that you are entering into a legally binding agreement. We strongly encourage and recommend that You obtain independent advice from Your financial and/or legal advisor prior to entering into this Agreement to determine whether You are happy with the services that We will provide and the fees We will charge. INTERPRETATION In this Agreement, references to: Our or Us or We refers to Chapter Two Australia Pty Ltd its directors, staff, representatives and agents; You or Your means all persons or entities who entered into this Agreement. Schedule means the schedule to this Agreement. Services means the services recorded in the Schedule to this Agreement INSTRUCTIONS YOUR OBLIGATIONS: We cannot act for You without your specific instructions on certain issues. Therefore, to help Us look after You most timely and cost effective manner you must: Provide us with clear and full instructions about what You want us to do for You. We will assist You to do this by providing You with a document requesting the information and details required to enable Us to perform the Services; Tell us what You want to achieve in your matter and select the Services from the Schedule; Tell us if You have important time limits including payment due dates and key dates of any Court initiated proceedings or debt collection process; Tell us if You are unclear about any aspects of the work or anything we have told You; Tell us promptly if You have any questions that you would like Us to address;

2 Make sure that You understand the likely fees and disbursements involved in Us providing the Services to You. Provide Us with all requested information in a timely manner. Provide Us with a letter of authorisation prepared by Us in order to contact Your creditors. Fully disclose Your true financial position. Pay Your first instalment of your Direct Debit within fourteen days of engagement with Us. Pay Your Full and Final Settlement success fee, as referred to in the Schedule within 14 days of being issued a tax Invoice. OUR OBLIGATIONS: We agree to do the following: Conduct an initial consultation to gather relevant information about Your financial situation and assess your personal financial position; Prepare a strategic plan with recommendations; Perform the work set out in the Schedule of Services for each nominated creditor; Seek further instructions from You as required and resolve or settle the matter on Your behalf once a result from within the pre- authorised range of outcomes can be achieved by us; Report back to You on completion of the Services; Act in a professional and diligent manner when acting on Your behalf. PROPOSED TERM OF AGREEEMENT The term of this Agreement is six months. The Agreement will be extended should you choose to engage us for further services outlined in Schedule 1. PROFESSIONAL SERVICES: You instruct Us to perform the Services set out in the Schedule. ACCEPTANCE OF OUR OFFER You may negotiate and enter into this Agreement with Us based on the information contained in this letter. If you wish to do so, you may accept the terms and conditions of this Agreement by providing your electronic consent via our website. Upon electronic acceptance of the terms and conditions of this Agreement You will be bound by them.

3 PROFESSIONAL FEES We will charge You for the Services in accordance with the Schedule. We can also recommend other service providers in related fields that may be of assistance to You. You will need to enter into separate arrangements with these providers. The professional fees paid to Udo not include the fees of other service providers that We may recommend to You from time to time. INTEREST ON UNPAID TAX INVOICES You agree that if Your account remains outstanding for more than 14 days, interest will be charged at a rate of 8% per annum on all unpaid fees and disbursements. This rate is subject to change and We will write to you if We change this rate at any time, no minimum period of notice is required to be given by Us RECOVERY OF OUTSTANDING FEES DISBURSEMENTS/INDEMNITY If You do not pay Our tax invoice and the tax invoice remain outstanding for 30 days We may commence legal proceedings for the recovery of the tax invoice along with interest and legal costs. You agree that if this occurs then You will indemnify Us in respect to all associated costs and expenses. If We commence proceedings against You, You agree that we may serve You with any court document, including initiating process, by posting the documents to the last known address that We have for You. TERMINATION OF OUR AGREEMENT We may terminate this Agreement at any time with immediate effect if You fail to pay to us the fees and disbursements claimed in a tax invoice. We may also terminate this Agreement, should We feel that you have misled or misrepresented any information that You should have been disclosed at the time of the initial engagement and fail to provide us with requested documents, details or other information within a timely fashion. We will write to you in the event we terminate. You may terminate this Agreement at any time but this will not affect your liability to Us for any unpaid tax invoices, or services provided up to the time of notice of termination. In the event of termination by either party, You will be required to pay to us any amounts which have fallen due for payment pursuant to this Agreement and which, at the date of termination, remain unpaid. On termination, We are entitled to retain possession of Your papers and documents while there is money owing to Us for our charges and expenses. PRIVACY POLICY We are committed to respecting the privacy of your personal information. We bound by the Privacy Act ( Act ) and the 13 Australian Privacy Principles ( APPs ) set out in that Act. The APPs regulate the way that certain entities handle personal information. If You want more information about this privacy policy, if you want to enquire about any of Your personal information, or if You believe Your personal information is inaccurate, out- of- date or incomplete, please contact Us. You can obtain more information on privacy at the website for the Office of the Australian Information Commissioner: Please note that disclosure of Your personal information may be

4 compelled by law (for example under the Social Security Act). You authorise us to disclose such information where necessary to others in furtherance of the scope of this Agreement (e.g. internally within ChapterTwo, to any appointed liquidator or trustee, to financial institutions, lawyers, experts etc). For a copy of our Privacy Policy, please go to statement APPLICABLE LAW AND FORUM This Agreement will be governed and construed in accordance with the laws in force in the State of New South Wales and You submit to the non- exclusive jurisdiction of the Courts of New South Wales. DISCLAIMER You acknowledge and agree that: We have been engaged to provide general advisory services with respect to Your financial position and structure and available alternatives; Nothing in this Agreement constitutes a representation or warranty by Us as to the viability, possibility, probability or achievability of any available alternatives or that any one or more of the available alternatives will be achieved; We will only be required to advise You generally and to Use our best endeavours to assist You in Your efforts to achieve any one or more of the available alternatives; We will not be liable to You for any loss or damages in the event that any one or more of the available alternatives is not in fact achieved; and If applicable, the person or entity that introduced You to us has access to view this letter at any time throughout the period in which you are engaged with Us. ENTIRETY OF AGREEMENT This Agreement constitutes the entire agreement between the parties in relation to our engagement and You agree and acknowledge that You have not relied on any warranty, representation, guarantee or other term or condition of any nature, which is not contained or recorded in this Agreement. Yours sincerely CHAPTER TWO AUSTRALIA PTY LTD

5 CRITIQUE PRIVATE CLIENTS INFORMATION, ACKNOWLEDGEMENT, AND PRIVACY AGREEMENT I/We agree that: 1. I am/we will supply necessary personal information that is accurate for the purposes of cash flow analysis, to Critique Private Clients 1A. I am/we are to receive financial planning services from an adviser within Critique Private Clients [ adviser ] and understand that my/our personal information (including any sensitive information such as health information and membership of professional organisations [ sensitive information ]) is being collected primarily for that purpose. 2. I/We acknowledge the privacy notification in the Financial Services Guide, that I have access to the Privacy Policy and understand that my personal information will be used and disclosed as outlined in the Policy available from my adviser. 3. I/We consent to the disclosure of my/our personal information (including my/our sensitive information): to organisations involved in providing my/our adviser with marketing services and to their service providers (for example posting services), so that my/our adviser may offer me/us products and services that might meet my/our financial needs; and to other organisations in connection with the sale or proposed sale of all or part of the adviser s business and to the use of that personal information by those organisations for those purposes. to other professionals who may need to be engaged in order to implement certain components of my adviser s business succession advice. 4. I/We also consent to the collection of my/our personal information for the purpose of my/our adviser providing the services stated above. This consent also relates to my/our sensitive information. 5. If I/we have provided personal information about an individual (such as a partner, dependant, employer or accountant) I/we have or will as soon as practicable, provide the individual with a copy of the Financial Services Guide which includes how you manage personal information and make them aware that this section applies to their personal information that has been collected for the purpose of my adviser providing me/us with the financial advice I/we have requested. 6. If I/we have provided sensitive information about someone else, I/we have or will obtain the consent of that person to that information being collected by my/our adviser and my/our adviser s service providers. 7. I consent to the release of my personal information (including my sensitive information) to my partner. 8. The adviser will supply information regarding cash flow analysis undertaken for the period that Chapter 2 are administering the debt and supply any insights back to the client that will assist for that current period as per fee arrangement with Chapter 2, and if requested, for periods beyond the Chapter 2 administration, however this would fall outside of the fee paid to Chapter 2 and would need to be discussed with Critique Private Clients before proceeding further. 9. It is important that you notify us of any material changes to your financial and personal situation so we can ensure our advice continues to be appropriate. These may include events such as changes in investments, employment or key life events. 10. If the circumstances or the information that these recommendations are based on changes, I accept responsibility for informing my adviser of such changes. 11. Projections and assumptions have been based on current information. I understand that projections are indicative only

6 SCHEDULE Service Hardship Arrangement: Review and assist with completion of Statement of Financial Position (SOFP) for submission to your nominated creditor(s); Compile all necessary supporting information to address the relevant hardship criteria under Credit Code; Contact your nominated creditors on your behalf; and Utilise our knowledge of Australian Consumer Law and policies of Financial Services Providers to negotiate with your nominated creditor(s) to obtain hardship assistance in the form of obtaining a moratorium period on your unsecured debts. Cash flow and Budget Plan Assessment of income and expenditure under a hardship scenario with recommendations to be provided if options exist to maximise any savings potential; Provision of a tailored savings plan over the hardship period; Financial settlement analysis estimates based on the current client liabilities; Insights to be outlined (where applicable) in relation to utilising existing assets, restructuring of personal insurances, and any other strategies available; Contact is to be made every two months to assess if savings targets are being achieved. Fees $ (GST incl) per credit card during the proposed term of the agreement. $ (GST incl) is the cost of the cashflow and budget plan. Any services additional to the cashflow and budget plan will be charged according to our financial services guide. Full and Final Settlement: You wish Chapter Two to assist you in negotiating a full and final payment settlement arrangement with your nominated creditor(s). The success fee will only be charged where we succeed through our negotiations on your behalf. The amount of settlement will be determined by reference to the amount recorded by your creditor(s) as owed at the time of our formal engagement by you. If you have indicated that you would like to proceed with settlement and a settlement is reached our fees will be payable. Our success fee will be calculated as a percentage of the amount by which we manage to reduce your debt at the commencement of negotiations. It is essential you authorize us in writing to commence the settlements procedures prior to negotiations. In consideration of these services to be provided You will pay Us, a service fee of 15% of the total amount saved from each current outstanding creditor balance will be incurred. We will issue you with a tax invoice after acceptance of settlement by your creditors.

7 Long Term Payment Arrangement: If you are unable to raise adequate funds for a Full and Final Settlement, We can negotiate a Long Term Payment arrangement on Your behalf. This will occur after the initial six month engagement and will incur extra fees. We will: Compile all relevant supporting documentation and prepare Your proposal(s) to enter long- term payment arrangements with your creditors; Utilise our knowledge of Australian Consumer Law and policies of Financial Services Providers to negotiate the best possible terms for a long- term arrangement. Ensure all required details of arrangements confirmed are communicated promptly. $ (GST Incl) per credit card. By submitting the form you are signing this agreement electronically. You agree your electronic signature is the legal equivalent of your handwritten signature on this Agreement. By selecting I Accept using any device, means or action, You consent to be legally bound by the terms and conditions set out in this Agreement. You further agree that Your signature on this document ( e- signature ) is valid as if You signed the document in writing. You also agree that no certification authority or other third party verification is necessary to validate Your e- signature, and that lack of such certification or third party verification will not in any way affect the enforceability of Your e- signature or any resulting agreement between You and Us. You also represent that you are authorised to enter into this Agreement and agree that You will be bound by the terms and conditions of this Agreement. It is recommended that you print a copy of this Agreement for future reference.