Financial Services Guide

Transcription

1 Financial Services Guide Version 4 Effective 01 July 2013 The financial services explained in this Financial Services Guide are provided by: Financial Planning Services Australia Pty Ltd ABN: Australian Financial Services Licence No Level 8, 52 Collins St, Melbourne, Victoria 3000 Phone: Fax: Note: This document has two part read in conjunction to give you a full understanding of the services being offered.

2 Purpose of this Financial Services Guide This Financial Services Guide (FSG) contains important information for you about: Financial Planning Services Australia Pty Ltd (FPSA), your financial adviser and the services we offer you; How FPSA and our associates are paid; Any potential conflict of interest we may have in the provision of services to you; and Our complaints handling procedures and how you can access them. You should read this FSG agreement, which is a document that sets out in detail the terms upon which FPSA and your financial adviser will provide financial services to you. FPSA has authorised the distribution of this FSG by your financial adviser. You will have noticed already that we use some abbreviated terms in this FSG. This is to make this FSG easier to read. Abbreviated terms are in italics so that you can easily identify them. Providing financial services to you In providing financial services to you, your financial adviser may give you personal financial advice. This personal advice will be provided to you in writing in a document called a Statement of Advice (SoA). Its purpose is to place you in a position to make informed decisions about your financial future. The SoA will explain: Your current financial situation, personal circumstances, needs and objectives; The process used to reach these recommendations and strategy; How these recommendations and strategy meet your needs and objectives; Any risks or consequences of accepting the advice that you should know about; All remuneration and other benefits that may be received by your adviser, FPSA or related bodies corporate or associates as a result of the services provided; Any associations, relationships and conflicts of interest that may impact on the advice given; and Other relevant information. If your financial adviser recommends that you invest in a specific financial product, they will give you a Product Disclosure Statement or a similar disclosure document such as a prospectus (these documents are referred to here as a PDS). These documents provide important information to help you make an informed decision about whether to invest in a particular product. It is important for you to understand the information in these documents, so you should carefully read the SoA and PDSs provided to you before making any decision relating to recommended strategies or financial products. If you are unsure about any of the information in the SoA or the PDSs, you should ask your financial adviser to explain it to you. Where further advice is provided to you in situations where there has not been a significant change in your circumstances, the further advice may be recorded in a Record of Advice (RoA) which is kept on file for seven years. If you wish, you may request a copy of your RoA from your adviser by phone, fax, or post. If you do not want holistic financial advice, but rather require advice that is more limited in scope, your adviser will tailor the SoA accordingly.

3 However, if you do not obtain personal advice, you face the risk that the financial products you select will not be appropriate to your needs and objectives. Who is FPSA? FPSA is a wholly owned member of the netwealth group, the parent entity of which is netwealth Holdings Limited (ACN ), an unlisted public company. netwealth Holdings Limited and its subsidiaries are referred to in this FSG as netwealth Group provides a wide range of financial products and services to Australian investors and the financial planning industry. FPSA holds an Australian Financial Services Licence (number ) issued under the Corporations Act 2001 (Corporations Act). FPSA provides financial planning services through its financial advisers and their financial planning practices located across Australia. FPSAs financial advisers are authorised representatives of FPSA under the Corporations Act. FPSA also holds an Australian Credit Licence (number ) issued under the National Consumer Credit Act 2009 for the purposes of providing services on credit products such as mortgages, personal loans or credit cards. Where credit assistance is provided, you will receive a separate Credit Guide and other documentation that explains how we provide credit services. Your financial adviser may be an employee of a financial planning practice, which may also be a corporate authorised representative of FPSA. These relationships will be explained to you in more detail in the Adviser Profile part of this FSG. When authorised financial services are provided to you by FPSA financial advisers and their financial planning practices, they are provided to you on behalf of FPSA. Financial services and products provided by FPSA What financial services can your adviser provide? FPSAFPSA to provide financial product advice for, and to deal in relation to financial products in the following classes - deposit products; securities; managed investment schemes (including investor directed portfolio services); life products (including life risk insurance and investment life insurance products); debentures, stocks or bonds issued by a government; standard margin loans; retirement savings accounts and superannuation; provided the products are on FPSAs Approved Product List or are otherwise approved by FPSA. This enables FPSA to provide you with services in the following areas: Financial planning Investments (including managed funds and shares) Superannuation Personal life risk insurance Retirement strategies Gearing strategies (these are strategies using borrowing to invest) Savings and wealth creation and protection Estate planning Social security Margin lending Ongoing review services Transaction/execution only services

4 As an authorised representative of FPSA, your financial adviser may only be authorised to provide some of these services to you. The Adviser Profile part of this FSG outlines the financial services that your adviser is authorised to provide on behalf of FPSA. You should read the Adviser Profile carefully and if you have any questions you should discuss them with your adviser in the first instance, or with FPSA. What services and products are not provided by or on behalf of FPSA? Your adviser is only authorised to provide the services outlined in the Adviser Profile in their capacity as an authorised representative of FPSA and is not authorised to provide any other services or any other products on behalf of FPSA as authorised representative or as an agent or in any other capacity (ie. as employee or contractor). Examples of products and services that are not authorised include: Products that are not on FPSAFPSA Accounting services Legal advice Taxation advice Mortgage origination services* General insurance services Direct property services (including advice and other services in relation to the sale and purchase of real property) Gold bullion and other precious metals advice Foreign exchange advice Advice on collectables, including art *Except where a credit representative of FPSA If your financial adviser or their associates provide any of these products or services to you, it is important for you to understand that these products or services are not provided on behalf of FPSA in any capacity and FPSA is not responsible for those products or services. Why do you need to provide us with information? We have an obligation under the Corporations Act to seek information from you for the purposes of providing personal financial advice. It is up to you to specify how you wish to provide us with this information and instruct us accordingly. Information and instructions can be provided to us by telephone, fax, post or . It is in your interests to provide us with all relevant information about your personal and financial circumstances so as to assist us to assess your situation and be able to make suitable recommendations. How we protect your privacy is outlined in our Privacy Policy. This is referred to later in this FSG. Remuneration received by FPSA and your adviser for financial services provided to you There are various ways that FPSA and your adviser may be remunerated for financial services provided to you. 1. Fee for service Your adviser may charge you fees for services based on an hourly rate, a fixed dollar amount, the value of funds invested or a combination of these methods. The payment method and frequency can be agreed between you and your adviser.

5 If you are charged a fee for service, your adviser may rebate to you part, all or none of any other remuneration that your adviser or FPSA may otherwise receive. Note: Your adviser is prohibited from charging you asset- based fees on borrowed amounts to the extent those amounts are used or to be used to acquire financial products after 1 July Other forms of remuneration FOFA) came into effect, which prohibits FPSA and subject to certain exceptions. Under FOFA- monetary, that could reasonably be expected to influence the choice of financial product recommended or the financial product advice. This includes commissions, bonuses and rebates, and most volume- based benefits, but there are some exceptions, such as remuneration for retail life insurance products. Under FOFA, FPSA and your adviser may continue to accept conflicted remuneration under arrangements that were in place before 1 July 2013 and to add new clients to these existing arrangements up to 30 June FPSA or your adviser may continue to receive the benefits outlined below where they are under arrangements entered into prior to 1 July 2013: Type of remuneration Upfront remuneration* Ongoing remuneration** FPS Portfolio Manager Colonial First S Investments, FirstChoice Personal Super or FirstChoice Pension Macquarie Investment Wrap Products the netwealth Group Rate per annum on your investment balance/insurance premium For investment products - Up to 5% of the value of the initial investment. For insurance products - from 30% to 120% For investment products between 0% and 2% per annum of the total funds invested. For insurance products - between 0% and 75% of the annual premium. Up to 0.47% per annum of the value of your investment, depending on the amount of cash. Up to 0.2% per annum of the value of your investment. Up to 0.165% per annum of the value of your investment. Up to 0.2% of the value of your investments with the netwealth Group. Example using $100,000 investment or $1,000 premium Up to $5,000. From $300 to $1,200. Up to $2,000. Up to $750. Up to $470. Up to $200. Up to $165. Up to $200. *Upfront remuneration may be paid to FPSA by the issuer of the relevant financial product that has been recommended by your adviser. The remuneration may be paid by the product provider and deducted from

6 the initial amount you have invested or may be based on the insurance premium you have paid. The actual amount of upfront remuneration will vary depending on the product and may be agreed with your adviser. **Ongoing remuneration may also be paid to FPSA by the product provider for the period that you hold the investment or insurance product. This is intended to remunerate your adviser for the ongoing support that you receive in relation to that investment or insurance policy. If your adviser receives any of the above benefits, this information will be detailed in your SoA. 3. Other fees Referral fees and rebates may also be paid to your adviser or their Corporate Authorised Representative. If any are relevant to your adviser or their Corporate Authorised Representative, then details will be provided in the Adviser Profile part of this FSG and/or in your SoA. 4. Other benefits Your adviser may receive alternative forms of remuneration from time to time. Non- monetary benefits worth more than $300 are consifofa unless they are covered by an exception e.g. for training and education. Receipts of non- monetary benefits worth between $100 to $300 will be recorded by FPSA in a register at least each quarter, in line with the FSC/FPA Industry Code of Practice on Alternative Forms of Remuneration in the Wealth Management Industry. Alternative remuneration registers are maintained by fund managers, IDPS (platform) providers, financial advisers and licensees. FPSAs register is available to you for inspection at FPSA 5. Where are details about remuneration disclosed? If you receive personal advice from your adviser, they will inform you in the SoA about any remuneration and other benefits that FPSA or the employer financial planning practice or the adviser may receive from the issuer of a financial product and, where possible, in actual dollar amounts. Details are also in the Adviser Profile part of this FSG. 6. Details of remuneration paid If you have entered into a fee arrangement with your adviser that is for a period of more than 12 months, you ees you paid and details of services you were entitled to receive and of services received in the previous 12 month period. Otherwise you may receive details of fees you have paid, from your adviser and/or in statements issued by your product providers. Relevant associations and relationships of your adviser and FPSA Your adviser will usually be the principal or an employee of a financial planning practice or partnership that is authorised to provide financial services on behalf of FPSA. In most cases that employer practice or partnership will be unrelated to FPSA. However, in some cases the practice may be part of the netwealth Group in which case it will be an associate of FPSA. netwealth Group will receive fees if you invest in a netwealth Group product. In addition, netwealth Holdings Limited is an unlisted public company and some financial planning companies or their principals hold shares in it. Any associations between your financial adviser and the netwealth Group will be disclosed to you in the Adviser Profile.

7 FPSA has relationships with different organisations that help FPSA and our advisers in different ways. This support may include subsidising training and education events by way of sponsorship. These sponsors may change from time to time. Some FPSA advisers may have referral arrangements with other professionals. In some circumstances referral fees may also be paid. General information will be included in the Adviser Profile, with more specific details in your SoA (if relevant). How do we protect your privacy? The privacy of your personal information is important to us. We have systems and processes in place to protect your privacy. We need to collect personal and financial information to administer our client relationships and provide you with appropriate products and services. For example, we may need to provide information to fund managers, platform operators and insurance providers for the purpose of giving effect to your financial plans. We also need to collect copies of identification material to meet our obligations under the Anti- Money Laundering and Counter- Terrorism Financing Act Unless you tell us you do not want us to send you information on products and services, we may use your personal details to send you information on products and services. request. For detailed information on how we handle your personal information and to whom this information will be provided, please read our Privacy Policy online at or request a copy from us on What if you have a complaint? s on the quality of our service. However, even with the best of intentions there is the possibility of disagreement or dispute with you about our services. If you have any complaint about the services provided to you, we want you to tell us as soon as you can and we will endeavour to resolve it as quickly as possible. If at any time you have any complaint about the services provide to you, you should take the following steps: 1. Please first contact your adviser and discuss your concern. 2. Hopefully, your adviser will be able to rectify the problem. If for any reason your concern is not resolved to your satisfaction within five business days, you should write a letter to us setting out details of your concern at the following address: The National Compliance and Risk Manager Financial Planning Services Australia Pty Ltd PO Box 2711 Sydney NSW 2000 Alternatively, you can contact us on or admin@fpsa.com.au to discuss your concerns. 3. FPSA will investigate and seek to resolve your complaint within 45 days from when we receive the notification.

8 4. If, after 45 days, we have been unable to resolve your complaint to your satisfaction, you may address your complaint to Financial Ombudsman Service at the following address: Financial Ombudsman Service Limited GPO Box 3 Melbourne, Victoria, 3001 Ph: Professional indemnity Insurance The Corporations Act requires Australian Financial Services Licensees, such as FPSA, to have adequate arrangements in place to compensate retail clients in the case of certain loss caused by FPSA or an FPSA authorised representative. FPSA maintains professional indemnity insurance that complies with these Corporations Act requirements, including section 912B. The insurance also covers claims in relation to the conduct of representatives and employees who are no longer authorised or working for FPSA (but who did at the time of the relevant conduct).

9 Adviser Profile Version 2 Effective 1 July 2013 This Adviser Profile forms part of the FSG issued by FPSA and dated 1 July 2013, and must be read in conjunction with the rest of the FSG. Who is your Adviser? Your financial adviser is: Philip Enger philip.enger@dollargrowth.com.au NSW Office Address QLD Office Address Postal Address Level 1, Suite 2 Mudgeeraba Shopping Village PO Box Cooks Avenue 8 Railway Street Kingsgrove NSW 1480 Canterbury NSW 2193 Mudgeeraba QLD 4213 Philip Enger is an employee of Dollar Growth Financial Planning Pty. Ltd. a Corporate Authorised Representative of FPSA. Dolla ASIC representative number is Philip is an Authorised Representative of FPSA (ASIC representative number is ). What experience does your adviser have? Philip Enger has over 37 financial services industry, specialising in: Wealth Accumulation & Cash Flow Management Personal Portfolio Management Personal Risk Management Strategies Pre and Post Retirement Planning and Management Self Managed Superannuation Funds Corporate Superannuation Funds Philip holds a Bachelor of Economics and is a Senior Fellow of FINSIA. Who is responsible for the financial services provided? FPSA is responsible for the distribution of this FSG and for the financial services provided by Philip Enger and Dollar Growth Financial Planning Pty. Ltd, within the scope of the authority described in this FSG What kinds of financial services is your adviser authorised to provide to you and what kinds of financial products do these services relate to? Philip Enger is authorised by FPSA to provide financial product advice on, and to deal in relation to financial products in the following classes, provided the products are on Approved Product List: Deposit and payment products limited to basic deposit products and deposit products other than basic deposit products Debentures, stocks or bonds issued or proposed to be issued by a government

10 Life products including investment life insurance products and life risk insurance products Interests in managed investment schemes including investor directed portfolio services Retirement savings accounts Securities Superannuation Please note that Philip Enger is not authorised to provide any services on behalf of FPSA except in relation to the financial products listed above. For example, Philip Enger is not authorised to provide any other services on behalf of FPSA, such as property services (including advice and products are not provided by or on behalf of FPSAFSG gives examples of other services that are not provided on behalf of FPSA. Dollar Growth Financial Group provide services such as Modern Estate planning, Mortgage Broking, Insurance and other professional services through an incorporated legal practice headed by Terry Purcell of Retire law in Dollar Growth Estate Planning, Carr Financial who provides special expertise to identify the most appropriate home, business circumstances and a special partnership with George Jakab to establish Dollar Growth Business Services to provide small and medium enterprise management with advice on a wide range of issues to improve operational efficiency, including, succession planning, marketing, human resources and personnel selection policies, staff assessment, IT systems analysis, etc. Philip Enger also provides other services including tax advice through Dollar Growth Tax and Accounting Services Pty Ltd. It is important for you to understand that these services are not provided by Philip Enger on behalf of FPSA (either as an authorised representative or as an agent or in any other capacity) and FPSA is not responsible for these services. Philip Enger also provides an ongoing review service. As part of this service Philip will conduct a review of your personal situation and the previous advice and recommend changes where they are needed. How is your Adviser paid for services provided to you? This FSG has previously outlined the source and method of remuneration and other benefits payable to your adviser for the services provided to you. without prior consultation. The basis on which Dollar Growth Financial Planning Pty Ltd charges for its professional services is: Initial Consultation: Initial consultation is without cost or obligation. Fact Find Process: Before we can give you advice, we need to conduct a thorough fact finding process establishing your current position and your concerns for now and in the future. This may be conducted at the end of the Initial Consultation meeting or alternatively scheduled at a subsequent meeting. Professional Fees: Hourly Charge of $231. SOA Preparation fee: The SOA preparation fee is determined on a time/ cost basis of $231 per hour and is discussed with the Client prior to any work commencing. We will quote you a fee which covers our research, modelling, drafting and a subsequent meeting to discuss our findings (if required). We will give you a time frame for completion and work will commence after a payment of 50% of this fee has been paid by you. The SOA may take the form of a Strategy Paper and/ or Financial Plan subject to your initial requirements.

11 Ongoing fee: (Structure Discussed at Appropriate Time) Flat fee indexed by 5.00% p.a. or % of assets under management 1.10% p.a. subject to the complexity of portfolio service required or One off project fee base rate $231 per hour or flat fee subject to prior discussion. Execution only services: Either % of asset, time/ cost or a combination thereof subject to prior discussion. The above fees and charges are all inclusive of GST. Our Policy is that we do not accept volume bonuses, kick- backs or incentives from any source. Your adviser is paid a salary and is an employee of Dollar Growth Financial Planning Pty. Ltd. Dollar Growth Financial Planning may pay additional pecuniary or non- pecuniary remuneration appraisal. Neither you nor FPSA pays your adviser directly. Dollar Growth Financial Planning Pty. Ltd pays FPSA an annual fee, in exchange for which FPSA provides a range of services, including paying on all remuneration and other benefits that FPSA receives in connection with financial services provided by your adviser and other representatives of FPSA appointed by Dollar Growth Financial Planning Pty. Ltd to Dollar Growth Financial Planning Pty. Ltd. Philip Enger holds or has an interest in shares in netwealth Holdings Limited. The operator of the netwealth Wrap Service and the trustee of netwealth Superannuation Master Fund, netwealth Investments Limited, is a wholly- owned subsidiary of netwealth Holdings Limited. The holding or interest is less than 0.5% of the shares on issue. It is possible that your adviser may receive dividends from netwealth Holdings Limited from time to time and the value of the shareholding may increase as a result of additional business being done by your adviser on behalf of FPSA. Will anyone be paid for referring me to my Adviser? If you are referred to Dollar Growth Financial Planning Pty Ltd by Carr Financial, Dollar Growth Financial Planning pays Carr Financial 20% of the yearly revenue. This method of remuneration will be disclosed at the time that personal advice is provided.

12 Further questions? If you have any further questions about the services FPSA provides, please contact your adviser on You should retain this FSG for your reference and any future dealings with your adviser and FPSA.

13 Adviser Profile Version 2 Effective 1 July 2013 This Adviser Profile forms part of the FSG issued by FPSA and dated 1 July 2013, and must be read in conjunction with the rest of the FSG. Who is your Adviser? Your financial adviser is: Simon Enger simon.enger@dollargrowth.com.au NSW Office Address QLD Office Address Postal Address Level 1, Suite 2 Mudgeeraba Shopping Village PO Box Cooks Avenue 8 Railway Street Kingsgrove NSW 1480 Canterbury NSW 2193 Mudgeeraba QLD 4213 Simon Enger is an employee of Dollar Growth Financial Planning Pty. Ltd. a Corporate Authorised Representative of FPSA ASIC representative number is Philip is an Authorised Representative of FPSA (ASIC representative number is ). What experience does your adviser have? Simon Enger has over 8 : Wealth Accumulation & Cash Flow Management Personal Portfolio Management Personal Risk Management Strategies Pre and Post Retirement Planning and Management Simon has completed the following qualifications Dip. FS (FP), Cert. Inv & FP (ITC) and is enrolled in continuing study towards further qualifications. Who is responsible for the financial services provided? FPSA is responsible for the distribution of this FSG and for the financial services provided by Simon Enger and Dollar Growth Financial Planning Pty. Ltd, within the scope of the authority described in this FSG What kinds of financial services is your adviser authorised to provide to you and what kinds of financial products do these services relate to? Simon Enger is authorised by FPSA to provide financial product advice on, and to deal in relation to financial products in the following classes, provided the products are on Approved Product List: Deposit and payment products limited to basic deposit products and deposit products other than basic deposit products Debentures, stocks or bonds issued or proposed to be issued by a government Life products including investment life insurance products and life risk insurance products Interests in managed investment schemes including investor directed portfolio services

14 Retirement savings accounts Securities Superannuation Please note that Simon Enger is not authorised to provide any services on behalf of FPSA except in relation to the financial products listed above. For example, Simon Enger is not authorised to provide any other services on behalf of FPSA, such as property services (including advice and other services in relation to the FPSAFSG gives examples of other services that are not provided on behalf of FPSA. Dollar Growth Financial Group provide services such as Modern Estate planning, Mortgage Broking, Insurance and other professional services through an incorporated legal practice headed by Terry Purcell of Retire law in Dollar Growth Estate Planning, Carr Financial who provides special expertise to identify the most appropriate home, business tances and a special partnership with George Jakab to establish Dollar Growth Business Services to provide small and medium enterprise management with advice on a wide range of issues to improve operational efficiency, including, succession planning, marketing, human resources and personnel selection policies, staff assessment, IT systems analysis, etc. FPSA is not responsible for these services. Simon Enger also provides an ongoing review service. As part of this service Simon will conduct a review of your personal situation and the previous advice and recommend changes where they are needed. How is your Adviser paid for services provided to you? This FSG has previously outlined the source and method of remuneration and other benefits payable to your adviser for the services provided to you. consultation. The basis on which Dollar Growth Financial Planning Pty Ltd charges for its professional services is: Initial Consultation: Initial consultation is without cost or obligation. Fact Find Process: Before we can give you advice, we need to conduct a thorough fact finding process establishing your current position and your concerns for now and in the future. This may be conducted at the end of the Initial Consultation meeting or alternatively scheduled at a subsequent meeting. Professional Fees: Hourly Charge of $231. SOA Preparation fee: The SOA preparation fee is determined on a time/ cost basis of $231 per hour and is discussed with the Client prior to any work commencing. We will quote you a fee which covers our research, modelling, drafting and a subsequent meeting to discuss our findings (if required). We will give you a time frame for completion and work will commence after a payment of 50% of this fee has been paid by you. The SOA may take the form of a Strategy Paper and/ or Financial Plan subject to your initial requirements. Ongoing fee: (Structure Discussed at Appropriate Time) Flat fee indexed by 5.00% p.a. or % of assets under management 1.10% p.a. subject to the complexity of portfolio service required or One off project fee base rate $231 per hour or flat fee subject to prior discussion. Execution only services: Either % of asset, time/ cost or a combination thereof subject to prior discussion. The above fees and charges are all inclusive of GST. Our Policy is that we do not accept volume bonuses, kick- backs or incentives from any source. Your adviser is paid a salary and is an employee of Dollar Growth Financial Planning Pty. Ltd.

15 Dollar Growth Financial Planning may pay additional pecuniary or non- pecuniary remuneration annually Neither you nor FPSA pays your adviser directly. Dollar Growth Financial Planning Pty. Ltd pays FPSA an annual fee, in exchange for which FPSA provides a range of services, including paying on all remuneration and other benefits that FPSA receives in connection with financial services provided by your adviser and other representatives of FPSA appointed by Dollar Growth Financial Planning Pty. Ltd to Dollar Growth Financial Planning Pty. Ltd. Will anyone be paid for referring me to my Adviser? If you are referred to Dollar Growth Financial Planning Pty Ltd by Carr Financial, Dollar Growth Financial Planning pays Carr Financial 20% of the yearly revenue. This method of remuneration will be disclosed at the time that personal advice is provided. Further questions? If you have any further questions about the services FPSA provides, please contact your adviser on You should retain this FSG for your reference and any future dealings with your adviser and FPSA.

16 Financial Services Guide Acknowledgement of Receipt I/We acknowledge receiving a copy of the FSG dated / / (dd/mm/yyyy) including the Adviser Profile dated / / _ (dd/mm/yyyy). I/We acknowledge that I/we have read the FSG and the Adviser Profile. Client Name Client Signature Date Client Name Client Signature Date OR complete as follows if FSG is mailed to client(s): I confirm that I sent a copy of the FSG dated / / (dd/mm/yyyy) including the Adviser Profile dated / / (dd/mm/yyyy) as follows: Sent to <<Client Name/s>> Sent on <<date>> Sent by <<Adviser Name>> This acknowledgement must be retained on the client file