Financial Services Guide

Transcription

1 Financial Services Guide About this guide The financial services guide helps you to understand who PPS Lifestyle Solutions Pty Ltd trading as ipac south australia ABN Australian Financial Services Licence No is, the services we offer, how we and our associates are paid, any arrangements that may influence our advice and how we deal with complaints. We are licensed to implement our recommendations to you through the use of: cash management trusts managed investments superannuation self managed superannuation funds retirement income streams deposit taking facilities portfolio administration services listed securities life insurance margin lending

2 Our services For over 30 years, our advisers have helped thousands of people to: Achieve financial independence Develop more effective money behaviours, for example to reduce debt or increase savings Plan successfully for retirement Manage superannuation and rollover retirement income strategies Invest smarter to build wealth Deal with the financial impacts of life changes like retrenchments, divorce and ill health What happens when we give advice? Our advisers will only provide advice to you after considering your individual objectives, financial strategies and needs. Your adviser will present you with a Statement of Advice (SoA) which confirms the planning conversations that have taken place. The SoA goes through each recommendation and ties it back to your lifestyle goals and objectives, with explanations as to why the recommendations will help you achieve them. It also outlines any risks, fees associated with the advice and our associations with any product providers. Before any advice strategies are implemented you must be comfortable with the recommendations provided and give us an authorization to proceed. On an ongoing basis, a Record of Advice (RoA) will be prepared if there have been no significant changes in your personal circumstances or the basis of the advice has not significantly changes since your last Statement of Advice. You have the right to request a copy of your RoA from us at any time at no cost to you. Note: It is important that you keep copies of any Statements of Advice or Records of Advice for your own records. PPS Lifestyle Solutions Pty Ltd PPS Lifestyle Solutions Pty Ltd trading as ipac south australia is a holder of Australian Financial License number PPS Lifestyle Solutions Pty Ltd is 100% owned by ipac securities limited (ipac). ipac is a wholly owned subsidiary of the AMP group, a leading financial solutions provider and investment manager. The following entities are also part of the AMP Group and as such are affiliated with ipac south australia: The National Mutual Life Association of Australasia Limited National Mutual Funds Management Limited NMMT Limited N.M. Superannuation Pty Limited ipac asset management limited Multiport Pty Ltd AMP Bank Limited AMP Capital Funds Management Limited AMP Capital Investors Limited AMP Superannuation Limited AMP Life Limited Cavendish Superannuation Pty Ltd Australian Securities Administration Limited (ASAL) Super IQ Pty Ltd 2

3 Who will provide your financial services? The adviser providing your financial services is an Authorised Representative of the licensee, PPS Lifestyle Solutions Pty Ltd. PPS Lifestyle Solutions has entered into an agreement with Corporate Authorised Representatives to supply the services of your adviser. The Corporate Authorised Representatives that represent this license are listed below. PPS Financial Planning Pty Ltd as trustee for the PPS Financial Planning Unit Trust (ASIC No ) PPS Financial Unit Trust employs advisors who are Authorised Representatives of PPS Lifestyle Solutions Pty Ltd and is responsible for the day to day management and operation of its business in accordance with the Standards of Conduct set by PPS Lifestyle Solutions Pty Ltd. PPS Financial Unit Trust is also associated with the Portfolio Planning Solutions Group. bmri Financial Services Pty Ltd (ASIC No ) bmri Financial Services Pty Ltd (bmri) employs advisers who are Authorised Representatives of PPS Lifestyle Solutions Pty Ltd. bmri is responsible for the day to day management and operation of its business in accordance with the Standards of Conduct set out by PPS Lifestyle Solutions Pty Ltd. Product recommendations We offer the ipac iaccess, North and MyNorth platforms which includes products issued by ipac and other companies within AMP, as well as external companies. Within these platforms you gain access to quality investments, superannuation and retirement income funds. While there may be other products and services suitable for you, we only advise and deal with products and services that have been researched and approved by ipac securities and AMP and are on our Approved Product List. Please ask your adviser for a copy of this list if you want more information. If you are recommended a product or investment, you ll receive a Product Disclosure Statement (PDS) that tells you about the key features, risks, benefits and fees associated with the product. To invest in any of our financial products you must complete the application form attached to the PDS. We have a preference for recommending well diversified portfolios specifically designed by ipac asset management to meet our clients needs. Our specialist investment division uses in-depth research and stringent fund manager selection processes to ensure that quality investment outcomes are achieved. Your adviser has direct access to information on how the portfolios are managed. This gives them greater insight into how the portfolio investment strategies impact your overall financial plan. When appropriate, ipac south australia will recommend other investment vehicles. If you do not wish to receive our advice, we may deal on your behalf by carrying out your instructions. If you do not obtain the advice, you will face the risk that the Financial Product/s you select will not fully take into account your objectives and financial situation and may not be appropriate to your needs. Tax implications of our advice Under the Tax Agent Services Act 2009, ipac south australia and its representatives are authorised by the Tax Practitioners Board to provide tax (financial) advice services on matters that are directly related to the nature of the financial planning advice provided to you. We will not consider any other tax matters in our advice to you. Where tax implications are discussed they are incidental to our recommendations and only included as an illustration to help you decide whether to implement our advice. Your relationship with us and using our services You can contact us directly with any instructions relating to your financial products. This includes giving us instructions by telephone, mail or . We can accept your instructions via if you agree to provide your instructions this way. We will work with you to agree what advice and services we will provide and when and how often we will provide them. Where you agree to ongoing advice and services, the details will be documented and provided to you in a service agreement. This includes the frequency of contact between us, service standards that may apply, any ongoing fee arrangements and how the service can be terminated. If at any time you wish to terminate your relationship with us, please contact us using the details shown in this Guide. 3

4 How you pay for our services The table below outlines all the potential fees that may apply to advice you receive and products recommended by ipac south australia. Not all of these charges will apply to you; it will depend on your individual circumstances. All fees are inclusive of GST. Financial advice fees 1. Initial advice fee 1 This fee is based on the time and complexity involved in gathering information about your personal and financial needs, researching and developing the recommendations, preparing your Statement of Advice and implementing the recommendations. This fee may be based between $550 and $11,000. Example: Assume you require advice on a comprehensive range of issues, such as superannuation, income streams, Centrelink benefits and tax implications. This would be provided for a fee of approximately $3, Client services fees 2 (without geared portfolio) 3. Client services fees 2 (with geared portfolio) 4. Additional Advice fee This fee is for ongoing advice services you receive and is deducted from your investments or nominated bank account. This fee will be a maximum of 2.5%pa of the monthly balance of your funds under management or an agreed flat dollar fee. A minimum fee of $2,700 (indexed to inflation each year) may apply if the amount you invest is less than $250,000 and you require Private Client Services. example: Assume you invest $400,000. Your Private Client Service fee would be a maximum of $550 per month ($400,000 x 1.65% pa, then divided by 12) When a geared portfolio, such as margin lending or home equity lending, is implemented, a flat ongoing advice fee of a minimum of $2,700pa up to a maximum of $10,000pa will apply over the non-super portion of the portfolio. A flat fee agreed with your adviser that is deducted from your account. This fee may be charged if you are not a Private Client and you request further advice. This fee may appear on your statement as member advice fee additional advice or client advice fee additional advice depending on which financial product you invest in. This fee may also be invoiced directly to you. 5. Contribution fee This fee may apply if you are not paying a private client service fee. It is deducted from each future contribution you make into an investment and it can be up to a maximum 5.5%. It is agreed between you and your adviser. Example: Assume you contribute $1,000 a month into your superannuation and your agreed contribution fee is a maximum 5.5%. The amount deducted would be $55. Investment product fees 1. Investment Management fees 2. Portfolio Administration fees This fee is received by the product provider for the day-to-day management of your investments. It is calculated as a percentage of each investment in your portfolio and is included in the unit price. The relevant Product Disclosure Statement details these fees ranging from 0% to 2.88% pa depending on the financial product. This fee is received by the product provider for the day-to-day administration of your investments. It is calculated as a percentage of your total portfolio and is deducted monthly from your account. The relevant Product Disclosure Statement details these fees ranging from 0% to % pa. example: Assume you invest $400,000. Your investment management fee would be up to a maximum of $11,560 pa and your portfolio administration fee would be up to $3,790 pa. 3. Guarantee fees This fee is charged through the North product where protection of the portfolio is available as an option. The fee charged will depend on the protection term and your investment strategy. The relevant Product Disclosure Statement details these fees ranging from 2% initially and up to 2.65% pa ongoing. Example: Assume you invest $400,000 in the North Protected Investment Guarantee. Your guarantee fee would be up to $8,000 initially and up to $10,600 pa. 4. Other fees You may incur other fees relating to your products, such as performance fees, buy/sell spreads, trustee fees, switching fees and withdrawal fees. The relevant Product Disclosure Statement details these fees. 1 For new accounts from 1 July 2010, this may appear on your statement as member advice fee initial or client advice fee initial depending on which financial product you invest in. 2 For new accounts from 1 July 2010, this may appear on your statement as member advice fee or client advice fee depending on which financial product you invest in. 4

5 Payments we receive from product providers These payments are not an additional cost to you but are paid to ipac by the product provider. 1. Investment Products 2. Insurance Protection 3. Other providers referral arrangements ipac south australia will not receive any initial or ongoing commissions on investment products within the ipac and AMP Group of companies for accounts established after 1 July If we have previously recommended an investment product we may receive an ongoing servicing payment of up to 0.60% of the amount invested. Example: Assume you invested $400,000 in a product. If the provider pays us the maximum ongoing servicing payment of 0.60% pa, ipac south australia would receive $2,400 pa. On placement of all life insurance ipac south australia may receive a commission. This commission is paid to us by the relevant life insurance company at their standard rates, and is not an additional cost to you. The initial commission for life insurance products may be up to 88% of the initial premium and the ongoing commission can be up to 33% of the annual premium that you pay. Details of the actual amounts will be in your Statement of Advice. Example: Assume your insurance premium is $1,000 pa, ipac south australia may receive up to $1,240 initially and up to $400 for each year that you hold the product. Where you have been referred to us by someone else, if we pay them a fee or commission in relation to that referral, we will tell you in the Statement of Advice who will receive that fee or commission and the amount they will receive. When we refer you to another service provider, ipac south australia may receive a referral fee. How does PPS Financial Planning get paid? Financial advice fees paid by you and the payments received from product providers as detailed above are paid to ipac south australia. ipac south australia has a management deed in place with PPS Financial Planning Pty Ltd. This agreement allows PPS Financial Planning Pty Ltd to receive a management fee for the services it provides to ipac south australia. This is not an additional cost to you. Alternative remuneration? In addition to salary and cash bonuses the adviser may, from time to time, be eligible to participate in various sales incentive programs with the potential to receive non-pecuniary benefits offered by other third parties subject approval by the General Manager. We maintain a register that records any forms of alternative remuneration. This is available to you upon request. How does bmri Financial Services get paid? Financial advice fees paid by you and the payment received from product providers as detailed above are paid to ipac south australia and then 100% of these fees & commissions are passed on to bmri Financial Services Pty Ltd. This is not an additional cost to you. How does your adviser get paid? Your adviser receives a salary, and may also receive a bonus or rewards. Your adviser must meet our professional and technical standards to qualify for a bonus based on their contribution to profitability. Your Statement of Advice provides detail of any remuneration your adviser will receive. 5

6 Providing information to us It is important that we understand your circumstances and goals, so that we can provide you with appropriate advice and services. You have the right not to provide us with any personal information. Should you choose to withhold information, or if information you provide is inaccurate, the advice or services we provide you may not be appropriate for you. It is also important that you keep us up to date by informing us of any changes to your circumstances so we are able to determine if our advice continues to be appropriate. Privacy Your privacy is important to us. To learn more about our collection and handling of your personal information and for details on how to access our Privacy Policy please refer to the last page of this document. Professional indemnity insurance ipac south australia maintains professional indemnity insurance policies on behalf of your adviser. These policies cover advice, actions and recommendations which your adviser has been authorised by ipac south australia to provide to you. These arrangements satisfy the requirements imposed by the Corporations Act 2001 and financial services regulations. This insurance will continue to provide such coverage for any adviser who is no longer authorised by ipac south australia. Confidence in the quality of our advice If, at any time, you are not satisfied with the advice you receive, or any other aspect of the service provided by your adviser, you should take the following steps: Contact your adviser and tell them about your complaint. If your complaint is not satisfactorily resolved within three days, please put your complaint in writing and send it to: Complaints Resolution Officer, ipac south australia, PO Box 21, GOODWOOD, SA We will try to resolve your complaint quickly and fairly. If your complaint has not been resolved satisfactorily, you may escalate your complaint to one of the following External Dispute Resolution Schemes listed in below. Type of complaint Any issues relating to financial advice, investments, superannuation or insurance matters Any issue relating to your personal information External complaints service Financial Ombudsman Service (FOS) Address: GPO Box 3 Collins Street West Melbourne Victoria 3001 Phone: Website: info@fos.org.au The Privacy Commissioner Address: Phone: GPO Box 5218 Sydney NSW info@fos.org.au You may also contact the Australian Securities & Investments Commission (ASIC) on freecall infoline to make a complaint and obtain information about your rights. You can also contact the Financial Planning Association (FPA) at to make a complaint (please note that the FPA cannot award compensation). 6

7 Privacy Collection Statement As part of the financial planning process, we need to collect information about you. Where possible we will obtain that information directly from you, but if authorised by you we may also obtain it from other sources such as your employer or accountant. If that information is incomplete or inaccurate, this could affect our ability to fully or properly analyse your needs, objectives and financial situation, so our recommendations may not be completely appropriate or suitable for you. We are also required under the Anti-Money- Laundering and Counter-Terrorism Financing Act (AML/CTF) 2006 to implement client identification processes. We will need you to present identification documents such as passports and driver s licences in order to meet our obligations. We keep your personal information confidential, and only use it in accordance with our Privacy Policy. Some of the ways we may use this information are set out below: Your adviser and ipac may have access to this information when providing financial advice or services to you; Your adviser may, in the future, disclose information to other financial advisers, brokers and those who are authorised by PPS Lifestyle Solutions Pty Ltd to review clients needs and circumstances from time to time, including other companies within the group; Your information may be disclosed to external service suppliers both here and overseas who supply administrative, financial or other services to assist your adviser and the group in providing financial advice and services to you. A list of countries where these service providers are located can be accessed via our Privacy Policy; Your information may be used to provide ongoing information about opportunities that may be useful or relevant to your financial needs through direct marketing (subject to your ability to opt-out as set out in our Privacy Policy); Your information may be disclosed as required or authorised by law and to anyone authorised by you. Your adviser and PPS Lifestyle Solutions Pty Ltd will continue to take reasonable steps to protect your information from misuse, loss, and unauthorised access, modification or improper disclosure. You can request access to the information your adviser or PPS Lifestyle Solutions Pty Ltd holds about you at any time to correct or update it as set out in our Privacy Policy. Our Privacy Policy also contains information about how to make a complaint about a breach of the Australian Privacy Principles. For a copy of our Privacy Policy visit or you can contact us. Questions? If you have any questions relating to this Financial Services Guide, please discuss these with your adviser ipac.com.au/sa PPS Lifestyle Solutions Pty Ltd trading as ipac south australia ABN AFS Licence No Ground Floor, 67 Greenhill Road Wayville SA December 2016 version