BW Financial Advice Limited. Financial Services Guide

Transcription

1 BW Financial Advice Limited Financial Services Guide BW Financial Advice Limited ABN Australian Financial Services Licence No Contact Details: 11 Harbour Street Sydney NSW 2000 Telephone: Fax: (02) Issue date: 1 July 2016

2 Information about this Financial Service Guide BW Financial Advice Limited ABN ( BW Financial Advice ) is providing you with this Financial Service Guide (FSG) to assist you in making an informed decision about the financial services and products they provide. BW Financial Advice ( we, us or our ) provides financial services through its Australia Financial Services Licence (AFSL No ). Your BW Financial Advice financial adviser ( Adviser ) is a representative of BW Financial Advice and they provide services on our behalf. Our representatives are employees of the Commonwealth Bank of Australia Group. We are responsible for the financial services or product advice provided to you, as well as the content and distribution of this FSG. This FSG is divided into two parts and both parts must be read in conjunction as together they form the FSG. Part One of this FSG outlines the financial services and products we provide and Part Two of the FSG outlines the financial services and products provided by your Adviser, as well as the remuneration that they may receive. Your Adviser will explain to you the areas of advice and product types that they are authorised to provide advice on. Part One Part One of this FSG provides information about: Who we are. Our relationships or associations with other entities. Other documents you may receive. The financial services and types of products we provide advice on. Collecting your personal information and providing us with your instructions. Fees or costs that may apply to you. Remuneration or other benefits that we, your Adviser or a related entity may receive What you can do if you are not satisfied with our services. 1

3 1. About BW Financial Advice At BW Financial Advice, we provide affordable, high quality advice. Our Advisers are professionals with a solid understanding of financial planning, investments, superannuation and financial markets. All our Advisers participate in regular training to keep up-to-date with legislation, industry changes, new financial planning strategies and products. Our relationship with the Commonwealth Bank Group We are a wholly-owned, but non-guaranteed subsidiary of the Commonwealth Bank of Australia (CBA), one of Australia s premier financial services organisations. The CBA is Australia s leading provider of integrated financial services including retail banking, premium banking, business banking, institutional banking, funds management, superannuation, insurance, investment and share-broking products and services. We have associations with and may deal or provide advice on products issued by, the following entities within the Commonwealth Bank Group: Commonwealth Bank of Australia The Colonial Mutual Life Assurance Society Limited (CMLA), trading as CommInsure Colonial First State Investments Limited Commonwealth Securities Limited (CommSec) Avanteos Investments Limited Acadian Asset Management (Australia) Limited Realindex Investments Pty Limited Colonial Services Limited. Any reference to Commonwealth Bank Group product in this FSG relates to products issued by the CBA or its subsidiaries. We are a Professional Partner of the Financial Planning Association of Australia (FPA). The FPA is one of Australia s leading professional associations for financial advisers and we are committed to its Code of Professional Practice, which includes a Code of Ethics, Practice Standards and Rules of Professional Conduct. 2. Other documents you may receive You may receive other documents in addition to this FSG when we provide you with personal financial advice or recommend a financial product. Statement of Advice Any advice that you receive from us which takes your personal objectives, financial situation or needs into account will be presented to you in writing in your Statement of Advice (SoA). The SoA is also sometimes referred to as your financial plan. The SoA is an important document as it sets out our recommendations and why the advice is suitable and appropriate for you. It will contain enough detail for you to make an informed decision about whether to act on the advice. The SoA will document: Our recommendations and the basis on which they are given The costs of the advice, as well as any fees, commissions or other benefits that we, your Adviser or a related party may receive, and Details of any relationships or associations that we or your Adviser may have with product providers or related parties. Record of Advice If we provide you with further personal advice, you may receive a Record of Advice (RoA). A RoA will be provided if your circumstances and the basis of advice are not significantly different from the initial advice you received from us. Where your circumstances have significantly changed, any further personal advice we provide to you will be documented in a SoA. You may request a copy of the advice records that we keep. Any request must be made within seven (7) years after the day you were provided with this advice and can be directed to your Adviser. Product Disclosure Statement If your Adviser recommends a particular financial product or transacts a financial product on your behalf and at your request, you will receive a Product Disclosure Statement (PDS), or other relevant product disclosure material. The PDS will contain information about a particular financial product, including its fees, features and risks, and will assist you in making an informed decision about that product. 2

4 3. The financial planning process Financial planning is more than meeting with your Adviser and discussing your personal situation. It is an end-to-end process which can put you on track to achieving your goals for the future. Our financial planning process is straightforward, simple and can be tailored to your needs. Your Adviser will discuss each step of the process with you. Meet and greet Introduce our financial planning services Discuss this FSG. Understand your goals Talk about your goals and objectives for the future Understand your current situation. Analyse and assess Review your objectives, financial situation and needs Determine what you need to do to achieve your goals and objectives Consider solutions or alternatives Prepare your financial plan. Recommendation Present your financial plan which includes our recommendations to help you achieve your goals Discuss our recommendations and assist you in making an informed decision. Implementation Agree on how to proceed with and implement the advice provided to get you moving toward achieving your goals. Ongoing review Your financial plan should be reviewed at least annually or when your circumstances change Where relevant, you will be offered an appropriate ongoing service offering relevant to your circumstances. 3

5 4. Financial services and products we provide Areas of advice Our Advisers can provide advice in the following areas: Investment planning, including borrowing to invest Superannuation and retirement planning Employer superannuation Self-Managed Superannuation Funds Personal and business risk insurance Information on Centrelink benefits, and Portfolio review services. Financial products Our Advisers are able to recommend the following types of financial products: Securities (eg listed securities, hybrid securities and listed property trusts) Managed investment schemes (eg managed funds, unit trusts, Separately Managed Accounts and Investor Directed Portfolio Services) Investment life insurance (eg investment and funeral bonds) Deposit and payment products (eg term deposits, savings accounts) Life risk insurance (eg income protection, total and permanent disability cover, trauma cover, life cover, business overheads and group life insurance) Superannuation (eg rollovers, account-based pensions and annuities) Margin loans, and Retirement Savings Accounts. The advice services or product recommendations that your Adviser can provide may be limited based on their authority or restriction to certain products as a representative of BW Financial Advice. These limitations include derivatives, foreign exchange and general insurance, which your Adviser cannot provide advice on. Your Adviser can only recommend products listed on the BW Financial Advice Approved Product List which contains both Commonwealth Group products and financial products issued by external providers. A product must meet our selection criteria and approval process to be listed on our Approved Product List. Your Adviser may deem it appropriate to recommend a financial product that is not on the Approved Product List. If this happens, any product that your Adviser may recommend needs to meet our selection criteria and approval process. The financial services or products that your Adviser is authorised to provide are outlined in Part Two of this FSG at Financial services and product types your Adviser can provide. BW Financial Advice Limited is registered with the Tax Practitioners Board as a Registered Tax (Financial) Adviser. Based on the information collected from you, your Adviser considers the tax consequences that relate directly to the financial advice being provided. However your Adviser is not a Registered Tax Agent and consequently this advice does not include an assessment of your overall tax position. As such, we strongly recommend you review this advice with a Registered Tax Agent. Other services We may be able to offer advice on a range of financial services or product types other than those your Adviser is authorised to provide. If your Adviser identifies that you require specialist advice on a particular product or service, such as estate planning, they may refer you to a specialist who may be able to help. We are not responsible for any advice or services provided to you by any other professional that we may refer you to. You do not have to consult any professional we refer you to and you may want to consult a professional you have an existing relationship with, or choose another. The professional you choose to consult with is responsible for the advice and services that they provide. 4

6 5. Your personal information and providing us with your instructions Collecting your information We collect personal information about you when you meet with your Adviser, request or use our products or services, us, phone us or visit our websites. This information may include: your personal objectives details of your current financial situation, and other relevant information. We may also collect information about you from others, such as service providers, agents, advisers, brokers, employers or family members. Where collecting sensitive information, such as health and lifestyle information, usually for insurance purposes, we will ask you for your consent. You do not have to disclose all of your personal information, however without it your Adviser may not be able to provide advice that is appropriate for your objectives, financial situation or needs. To access your personal information, please contact your Adviser. If your personal information is incorrect, we can correct it. Exchanging your information We may exchange your personal information with other members of the Group who can use this information in the same way we can. We disclose information to third parties as permitted by law or for the uses listed below. Third parties include service providers where we outsource activities, persons acting on your behalf, other financial institutions, auditors, insurers, employers and government agencies. We may disclose your information overseas to overseas Group members, service providers or other third parties who operate or hold data outside Australia, or when required for a particular transaction or by overseas law. Australian law may not apply to some of these overseas parties. Using your information We collect, exchange and use your information so that we can: provide advice that is appropriate for your objectives, financial situation and needs; manage our relationship with you; price, design and administer our services or inform you about other products and/or services that may be of interest to you; manage our risks, help identify and investigate illegal activity, comply with our legal obligations, and assist government and law enforcement agencies. The law requires us to establish your identity and assess applications for products and services by verifying your full name, date of birth and residential address and to do so, we need to sight and maintain records of various identification documents, such as a drivers licence or passport. Your Adviser may sometimes use programs, calculators or worksheets as illustrative tools when you meet with them. Your Adviser uses these tools to find out about your relevant objectives, financial situation or needs. You should not rely or act on any representations made in these meetings as any personal advice that you receive will be set out in your SoA. Respecting your privacy We are committed to ensuring the privacy and security of your personal information. As part of our continuing commitment to client service and maintenance of client confidentiality, we have adopted the principles set out in the Privacy Act The Group s Privacy Policy will assist you in ascertaining how to complain, how your complaint is dealt with and provide further information on our personal information handling practices. Please refer to the Group s Privacy Policy available at commbank.com.au/security-privacy/ general-security/privacy.html or from your Adviser. Instructing your Adviser You will generally need to instruct your Adviser in person as your signature will be required for verification. For some products and services though, special arrangements can be put in place to instruct your Adviser by phone, , SMS or fax. We can take instructions from you to transact on your behalf and place a financial product (that we are able to offer) without providing personal financial advice. In most circumstances we can accept instructions from a person who is authorised to give instructions on your behalf. Reviewing your portfolio We recommend you review your financial situation at least annually or when your personal or financial circumstances may change. Reviewing your financial plan is an important step in the financial planning process as it makes sure you are on track to achieving your goals and objectives whilst also ensuring that your advice remains appropriate for you. Ongoing service We provide ongoing advice services for customers who may need an ongoing advice relationship or for those clients who would like to work more closely with an Adviser over time. Depending on the package you select, the services you may be provided could include access to an Adviser, an annual invitation to have your financial plan reviewed and or exclusive access to online educational content. If you choose not to take up our ongoing services and would like us to review your financial plan, you should contact your Adviser. Additional fees may apply for these services and your Adviser will discuss them with you before providing advice. 5

7 6. Fees that may apply to you A range of fees and costs may be charged for the advice you receive and the financial products used. These fees and costs are paid to us and not directly to your Adviser. Your Adviser will explain any fees or costs that may apply to you. In all cases, details of any charges for the services provided will be given to you at the time that we provide you with personal financial advice or when executing a transaction on your behalf. Where we are aware that you have used borrowed funds (i.e. funds that are either secured or unsecured) to invest through us, we will charge you a flat dollar advice fee. The types of fees that we may charge for the services provided are detailed below and are inclusive of GST. You may choose to pay fees directly to us or you may instruct us to deduct the fee from a product. Initial Advice Fee The primary way you pay for our services is through an Initial Advice Fee. This fee includes all upfront costs, except for insurance premiums, as well as other costs that we may incur for other services provided. Upfront costs may include product entry fees, one-off adviser service fees, one-off plan service fees, upfront fees or any combination of these. Our Initial Advice Fees can be up to a maximum of $20,000. If you choose to take up our services you may be asked to commit to the payment of a deposit of $199, which is generally payable at any time up to the presentation of your financial plan. Depending on the complexity of your situation, we may need to liaise with external providers for additional information. External providers may charge us a fee for their services and if this occurs, we will seek reimbursement from you for the costs we incur as a result of obtaining the relevant information. Regular Savings Plan or Regular Superannuation Contribution Additional fees may apply when we recommend regular savings plans or regular superannuation contributions. The amount of these fees will depend on the complexity of the advice, your situation and the amount you invest. These fees consist of initial fees and are determined prior to implementing our advice to you. Initial fees are deducted by product providers as an Entry Fee or Contribution Fee and the amounts may range from 0% to 3% (in increments of 0.5%) of the regular amount invested or contributed. Ongoing Advice Fees Ongoing Advice Fees may be charged for additional services agreed to be provided by us in relation to your investments under our Ongoing Service Program. Fees for these services are generally deducted from your investment platform and can be up to a maximum of $2,200 per annum (or up to a maximum of 0.90% per annum of your total portfolio balance if you commenced an investment through us before 2 December 2013). When this fee is deducted from your investment account, it will generally be charged as an Ongoing Adviser Service Fee. If you commenced an investment through us before 1 July 2013, we may receive ongoing trail commissions from investment platforms based on the level of funds that our clients have invested in those platforms. Where we receive ongoing trail commissions that relate to your investment, we will reduce the ongoing trail commission where an Ongoing Adviser Service Fee has been deducted from your investment platform and where it is possible to do so. Implementation Fee We may charge an Implementation Fee of up to $250 for transacting a financial product on your behalf. The amount of this fee is agreed with your Adviser. 6

8 7. Benefits we receive Commission payments When you invest in a product or commence an insurance policy through us, we may receive initial or ongoing commission payments from product providers. An initial commission is a one-off payment made upon entry to a financial product and an ongoing commission is paid each year for which a financial product is maintained. These commissions are based on a percentage of the funds you invest or the premiums you pay. They are not paid directly by you and are instead deducted from the investment, superannuation, loan or insurance premium by the product provider. INVESTMENT AND SUPERANNUATION PRODUCTS The initial commission we receive on an investment or superannuation product may be up to 5.125% of the investment amount. The ongoing commission we receive may be up to 0.60% per annum of the investment amount. We will only receive initial or ongoing commission payments on investment or superannuation products, where we are entitled to receive these payments through existing arrangements with product providers. INSURANCE PRODUCTS The initial commission we receive on insurance products may be up to % of the first year s premium. The ongoing commission we receive may be up to 33% per annum of the renewal premium. We only receive commission where we are entitled to receive these payments through existing arrangements with product providers. Any commission payments that we receive are not an additional cost to you. Additional Indirect Incentives REVENUE SHARING ARRANGEMENTS As a result of the recommendations made by your Adviser, we may receive payments from certain product providers based on the total amount of funds under administration, new business placed or new insurance premiums where policy lapse rate targets are met. We receive these payments on a quarterly basis and they are not passed to your Adviser. They are not an additional cost to you and any relevant details of these arrangements which apply to you will be disclosed in your SoA. We will continue to receive payments where we have an entitlement to do so under an arrangement with a product provider prior to 1 July BW FINANCIAL ADVICE PARTNER PROGRAM We may receive sponsorship payments from a number of product providers which are in no way linked to volume of sales. We offer various package arrangements to product providers where they may contribute up to $110,000 per annum towards partnering with us in providing education and training services for our Advisers. Referral fees We may make payments for referrals that are made to us. These are not an additional cost to you and are designed to recognise the efforts by those who refer you to us. It is not possible to calculate the amount of any of the payments (eg cash, gifts, prizes, bonuses or referral fees) at this time. The manner in which non-cash payments to business units, bonus cash payments and referral fees are calculated will be disclosed in the SoA provided to you, but are described in general terms below. REFERRALS FROM INTERNAL PARTIES If you have been referred to us by another Commonwealth Bank Group staff member, the referrer and their business unit may be eligible for payments and other benefits from us and/or CBA. We are responsible for: Cash payments to recognised business units of a referrer. These cash payments are generally calculated by reference to the amounts you invest and the risk insurance products lodged; and Any combination of cash payments, gifts or prizes not exceeding $1,000 in total value per referral to a referrer. The CBA is responsible for annual bonus cash payments to referring staff members who are in recognised business units. Eligibility for a bonus is determined by the CBA, the recognised business unit and the referrer meeting predetermined objectives. A referrer s objectives include the number of or value of referrals made. Bankwest staff members who are not in retail stores will earn credits for referring customers to us (1 credit per referral) and additional credits when that customer implements the advice we provide (up to 40 credits per implementation of advice). These credits are cumulative and can be exchanged for goods and services, such as movie tickets or appliances. Promotional incentive programs may also be conducted from time to time which can include conducting competitions amongst Bankwest staff members. Some of the prizes from these incentive programs have historically included gift vouchers. REFERRALS TO INTERNAL PARTIES If we refer you to another department of the Commonwealth Bank Group, we may receive a referral fee from that department. The referral fee may be a fixed dollar amount or a percentage. REFERRALS FROM OTHER ADVISERS WITHIN THE COMMONWEALTH BANK GROUP If you have been referred to us from an adviser within the Commonwealth Bank Group, we may pay the referrer a cash payment based on the initial fees and commissions received as a result of the advice. REFERRALS FROM EXTERNAL PARTIES If you have been referred to us by an external party, we, or another member of the Commonwealth Bank Group may pay an authorised third party a referral fee. The referral fee may be a fixed dollar amount and or a share of the Initial Advice Fees and commissions received as a result of the advice. 7

9 8. How your Adviser is remunerated For details on the remuneration that your Adviser may receive, please refer to Part Two of this FSG at How BW Financial Advice pays your Adviser. Other benefits In addition to the remuneration that your Adviser may receive, your Adviser may also receive other non-financial benefits. These other benefits may include invitations to participate in educational or training conferences that we organise. These may be sponsored by Commonwealth Bank Group entities and other product providers. From time to time, BW Financial Advice and your Adviser may also receive other benefits such as business lunches, tickets to sporting or cultural events, promotional merchandise or other minor benefits from product providers. If other benefits are received, they can only be valued at less than $300 per provider each year. If other benefits over this limit are received, they will be declined or if delivery has already been made, they will be disposed of. In the instance that a benefit has been received and needs to be disposed of, that benefit will be passed on to charity or disposed of by other means. BW Financial Advice and your Adviser maintain a public register of all other benefits received, regardless of whether they are accepted or declined. We also maintain a conflicts of interest register. Conflicts of interests are circumstances where some or all of your interests are inconsistent with, or diverge from, some or all of our interests or those of your Adviser. If you would like to see a copy of these registers, you can speak with your Adviser or contact us. The amounts that are payable to us and your Adviser will be disclosed in your SoA. If the amount cannot be calculated at the time your SoA is given, the way the amount is calculated will instead be disclosed. The salary, bonuses or other benefits that BW Financial Advice or your Adviser may receive are payable by us, some product providers or Colonial Services Limited. These will be disclosed in your SoA and are not an additional cost to you. 9. What you should do if you are not satisfied with our services If you are not happy with your Adviser or the services provided to you, we encourage you to: Discuss your complaint with your Adviser in the first instance. If you would prefer not to discuss your complaint with your Adviser directly or if your complaint has not been resolved to your satisfaction, you can contact the CBA Group Customer Relations team. CBA Group Customer Relations is the Commonwealth Bank Group s primary escalation point for customer feedback with a particular responsibility for resolving complaints. You can contact them by: Writing: CBA Group Customer Relations Reply Paid 41 Sydney NSW customerrelations@cba.com.au Phone: If you are still not satisfied, you can refer the matter to the Financial Ombudsman Service Limited (FOS) which we are a member of. The FOS provides an independent dispute resolution process between consumers, as well as some small businesses and member financial services providers, and covers financial services disputes including general insurance, life insurance, financial planning and pooled superannuation trusts. You can contact the FOS by: Writing: Financial Ombudsman Services Limited GPO Box 3 Melbourne VIC 3001 Phone: Professional Indemnity Insurance Our professional indemnity insurance satisfies the compensation arrangements required under Australian law, being section 912B of the Corporations Act. We are also covered for claims against former representatives, whilst they acted on our behalf. 8

10 BW Financial Advice Financial Services Guide Date of preparation: 1 July 2016 Part Two Personal Financial Adviser Tier 1 Personal Financial Adviser Tier 2 Senior Personal Financial Adviser The BW Financial Advice Financial Services Guide (FSG) is divided into two parts and both parts must be read together. Part One of the FSG outlines the financial services and products we provide and Part Two of the FSG outlines the financial services and products provided by your Adviser. Part Two also provides information on the remuneration or other benefits that your Adviser may receive. Financial services and product types your Adviser can provide Areas of advice Your Adviser can provide advice in the following areas: Investment and retirement planning Personal superannuation and rollover Self-Managed Super Fund establishment, investment and risk management strategies* Personal insurance (eg personal and family protection) Business risk insurance (eg business succession, key person and business loan cover)* Employer super and group insurance* Information on Centrelink Benefits Portfolio review services Borrowing to invest.* Product types Your Adviser is able to recommend the following types of financial products: Securities (eg listed securities, hybrid securities and listed property trusts)* Managed investment schemes (eg managed funds, unit trusts, Separately Managed Accounts and Investor Directed Portfolio Services)* Investment life insurance (eg investment and funeral bonds) Deposit and payment products (eg term deposits, savings accounts)* Life risk insurance (eg income protection, life cover, total and permanent disability, trauma cover, business overheads and group life insurance) Superannuation (eg rollovers, account-based pensions and annuities) Margin loans* Retirement Savings Accounts. How BW Financial Advice pays your Adviser As an employee, your Adviser is paid a salary and superannuation. In addition, they may also receive quarterly short term incentive payments ( bonus payments ). These bonus payments may be a discretionary payment that we pay your Adviser, or it may be a portion of the fee revenue that we receive as a result of the advice they provide. Any bonus payment that your Adviser may receive is based on their performance against both financial and non-financial targets. These targets include satisfying certain revenue objectives, providing quality advice, meeting compliance and behavioural standards, as well as client retention and customer service measures. Your Adviser may receive bonus payments over the course of a year, up to a maximum of 53% (excluding GST) of the fee revenue that we receive. Other benefits Your Adviser may also receive other non-monetary benefits. For more information, please refer to Part One of the FSG at Other benefits. The amounts that are payable to your Adviser will be disclosed in your SoA. If the amount cannot be calculated at the time your SoA is given, the way the amount is calculated will instead be disclosed. The salary, bonuses or other benefits that BW Financial Advice or your Adviser may receive are payable by us, some product providers or Colonial Services Limited. These will be disclosed in your SoA and are not an additional cost to you. * Where an asterisk appears BW Financial Advice requires Advisers to complete additional training in those areas so the types of advice and products your Adviser can recommend may not encompass the areas identified by an asterisk above.

11 TEAR HERE CLIENT RECEIPT My Adviser has provided me with both Parts One and Two of the BW Financial Advice Financial Services Guide dated 1 July 2016, and has explained its contents to me. Full Name (please print):... (Client 1) Signed:.... Date:... /... /... Full Name (please print):... (Client 2) Signed:... Date:... /... /... TEAR HERE

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