Financial Services Guide & Credit Guide

Transcription

1 Financial Services Guide & Credit Guide

2 Contents Financial Services Guide Page 1 Page 1 The purpose of this guide Who will be providing the financial services to me? Principal Adviser s Profile Page 2 Page 3 Page 4 Page 4 Benjamin Kohn - Director and Representative of Link Financial Services What financial services are available to me? What information do I need to provide and will you give me advice which is suitable to my needs and financial circumstances? What should I know about any risks of the financial products or strategies you recommend to me? Fees and Charges Page 5 Page 5 Page 5 Page 6 Page 6 Page 7 Page 8 Page 8 Page 8 How will I pay for the services? Statement of Advice Fee Portfolio Implementation Fee Portfolio Review Management Fee Other payment options Do any relationships or associations exist which may influence you in providing me with the financial services? Will anyone be paid for referring me to you? What information do you maintain in my file and can I examine my file? How can I give you instructions about my financial products? Credit Guide Page 9 Page 9 Page 9 Page 9 Page 10 Page 10 Our Services Collection of Information and Assessment Payment for Fees Fees Commissions What should I do if I have a complaint? Privacy Page 11 Page 11 Page 12 Page 13 Page 13 Page 13 Our commitment to privacy Collection of personal information Use and disclosure of personal information Storage and security Quality of the personal information Access to your information

3 Financial Services Guide The purpose of this guide This Financial Services Guide (FSG) is intended to inform you of certain basic matters relating to our relationship, prior to us providing you with a financial service. The matters covered by the FSG include, who we are, how we can be contacted, what services we are authorised to provide to you, how we are remunerated, details of any potential conflicts of interest, and details of our internal and external dispute resolution procedures and how you can access them. You should also be aware that we will document significant advice in a Statement of Advice ( SoA ). Advice that is not significant may be recorded in another format called a Record of Advice ( RoA ). We will hold the RoA for seven years and you may have access to it. The SoA will contain the advice, the basis on which it is given and information about fees, commissions and associates. In the event we make a recommendation to acquire a particular financial product [except direct shares], we must also provide you with a Product Disclosure Statement containing information about the particular product which will enable you to make an informed decision. Link Financial Services holds Professional Indemnity Insurance ( PII ) that meets the compensation requirements of the Corporations Act and ASIC s Regulatory Guide 126. The PII also provides cover for a period of time in relation to the conduct of past representatives/employees who may no longer work for Link Financial Services. If you have any questions about our compensation arrangements please ask your representative. You have the right to ask us about our charges, the type of advice we will give you, and what you can do if you have a complaint about our services. Key information is set out in answers to the following questions. Who will be providing the financial services to me? All services are provided by Link Financial Services. Benjamin Kohn as principal of the business supervises all advice given. You will be provided with an Adviser Profile if advisory services are provided by other staff. Link Financial Services Pty Ltd. Ground Level 2, Floor, 205 Balaclava 71 Kooyong Road, Road, Caulfield Caulfield North, North Victoria ABN AFSL , prepared on 10/11/ /05/2014 V.3 1 V.6

4 Principal Adviser s Profile Benjamin Kohn Benjamin Kohn is a Director and employee of Link Financial Services. Benjamin draws a regular wage during the year, and shares in any profit distributions from the company. Benjamin has provided financial services under licensees since He holds a Bachelor of Business in Financial Planning from RMIT University. He graduated with distinction. Benjamin is able to provide advice relating to the following; Fixed Interest and Managed Investments Personal, Corporate, and DIY Superannuation Retirement Income Planning Wealth Creation, including various Gearing Strategies Centrelink Entitlements Wealth Protection products and strategies Estate Planning strategies Risk Insurance advice Direct Shares Credit Assistance If Benjamin is unable to help you in any area, he will refer you to the appropriate expert within Link Financial Services referral network. 2

5 What financial services are available to me? Link Financial Services is able to provide advice on, and deal in, the following; Fixed Interest and Managed Investments Personal, Corporate, and DIY Superannuation Debentures, Stocks or Bonds issued or proposed to be issued by Government Wealth Protection Products and strategies Risk Insurance advice pertaining to life products Interests in Managed Investment Schemes Direct Shares Floats Link can also provide; Retirement Income planning Wealth Creation Assistance with budgeting and cash flow management Social Security Entitlements Estate Planning Restructuring of existing loans and mortgages Corporate structures and establishment of discretionary trusts, unit trusts, companies and superannuation funds A personal consultation and strategic review, with your Adviser which will include: Review of your needs, goals and objectives Strategic reviews, updates and advice Technical and legislative development review Centrelink benefit planning and calculations (if applicable) Investment performance review Comprehensive investment research Benefit projections (if applicable) Comprehensive management tools, including: Portfolio valuations 3

6 Income and Growth reports Cash flow Lump sum tax calculations Implementation of recommendations resulting from reviews Newsletters via and normal mail discussing strategies and investments Priority access to participate in limited investment opportunities including property syndicates and floats on ASX Invitations to various seminars and corporate networking days Access to experts in capital raising for SME s (including seed capital raisings) What information do I need to provide and will you give me advice which is suitable to my needs and financial circumstances? Link Financial Services have the responsibility to understand your financial position, your preferred financial risk profile, and your ongoing financial requirements. In order for us to do so we need you to provide financial and personal information pertaining to your current financial situation, needs and objectives and any other relevant information. This will allow us to offer you the most appropriate advice possible. If you decide not to divulge this information to us, the advice you receive may not be appropriate to your needs, objectives and financial situation. You will be warned of the risk associated with this action. We will also warn you about the possible consequences of Link Financial Services not having your full personal information. You should always note the warnings in your Statement of Advice carefully. What should I know about any risks of the financial products or strategies you recommend to me? We will explain to you any significant risks of the investments and strategies which we recommend to you. If you believe you have not received this information, you should ask us to explain those risks to you. You should only proceed with the strategy once you are comfortable that you understand the risk associated with the strategy. 4

7 Fees and Charges As part of our commitment to providing you with quality service, we will issue you an Authority to Proceed re-confirming the specific terms in the SoA on which you have agreed to engage us. This also includes your specific fees and charges payable for our services. When we provide you with an SoA, we will annex the Authority to Proceed to the Statement of Advice. When you have asked us to provide you with limited advice only, we will give you the Authority to Proceed separately. If you agree with the terms of engagement we will ask you to sign and return a copy of the Authority to Proceed to our office. We will be unable to implement the strategy or advice provided until we receive a signed copy of the agreement. If you wish to view the agreement before receiving your Statement of Advice, or limited advice, you may obtain a copy from our office. How will I pay for the services? Your initial consultation is free of charge. During this meeting we will examine your situation and advise you of the likely course of action should you wish to proceed with us. Statement of Advice Fee Should you request a SoA tailored to your personal situation, our fees will be as follows: Link Financial Services charges a minimum of $3,300 (including GST) for the Statement of Advice. This however increases according to the complexity and scope of advice. Link Financial Services will provide a fee estimate in writing prior to the commencement of work. The SoA fee is payable to us upon presentation. The SoA we present to you will contain in writing, disclosure of any commissions, fees, and any other benefits or payments we may receive. You will also be provided with Product Disclosure Statements (PDS) relevant to any investments placed on your behalf [except direct shares], which will fully disclose any fees applicable to your investment by the funds managers. Portfolio Implementation Fee Link Financial Services will retain trail commissions following implementation, but may rebate all initial and upfront commissions (except mortgages) back to you either via cheque or additional units in the funds. After rebating commissions, Link Financial Services charge a portfolio implementation fee to implement your strategy. 5

8 Flat Fee: 0.9% of funds invested. (minimum implementation fee is $4,500 including GST) The portfolio implementation fee is payable upon signing of the Authority to Proceed. Portfolio Review Management Fee Link Financial Services offer tailored ongoing service packages to suit your individual needs. Our ongoing fees range from $2,000 to $100,000 and is dependent on your required service level, and options to rebate upfront and ongoing commissions in full or partially. Other payment options In the event that you do not want a full service advice (as outlined above), and require a strictly limited scope of advice, Link Financial Services will receive and retain initial commissions as directed by the product providers as follows: Wrap Accounts - within the range of 0% to 5.5% of funds invested and up to 1% per annum ongoing commission; Insurance - within the range of 0% to 110% of initial premium, and up to 33% of annual premium. For Example Invest $100,000 Upfront Ongoing commission commission per annum In a Wrap Account $0 to $5,500 $1,000 Pay insurance premium of $1,000 $1,100 $330 Please note that a SoA fee is still applicable. All fees charged by Link Financial Services will be disclosed in writing in the Statement of Advice (Financial Plan). If you wish Link Financial Services to conduct a subsequent review of the strictly limited scope of advice it will be charged at an hourly rate of $275 per hour, with a minimum payment of $1,250 per review including GST. Please note that Link Financial Services will retain the initial commission on insurance products, as well as trailing commissions on insurance, gearing products, cash management accounts, 6

9 property syndicates and mortgage funds. Details of these amounts will be disclosed to you in the Statement of Advice. Client Directed Fee Link Financial Service charges a fee for the implementation of advice to buy direct investments through a stock broker in a range of 50% 55% of the transaction cost. The fee will be negotiated with the stock broker and specifically authorised by you. For convenience the stock broker will collect the client directed fee at the time of the transaction and remit the agreed amount back to Link Financial Services. For Example From the purchase of $15,000 worth of direct shares in three transactions, at a client directed fee of $100 per transaction, totalling $300 is charged by the stock broker. Link Financial Services may receive up $165 in fees ($300 x.55%) from the stock broker. Do any relationships or associations exist which may influence you in providing me with the financial services? Link Financial Services is 100% privately owned. We have no ownership link with any product or product provider however Link Financial Services does receive commissions, and may qualify for volume bonuses from Macquarie Wrap based on the Funds Under Management lodged with Macquarie Wrap as below. For Example % per annum $ per annum For each $100,000 invested 0.22% $220 Directors and staff are strong believers in the publicly listed parent companies of financial providers and may own shares or hold investments in products which are on our recommended lists. Like most other boutique financial advisers Link Financial Services utilises support services provided by financial institutions. These support services have in the past included: Assistance with ongoing training of Advisers, Paraplanners and Support Staff Provision of software, research and assistance with client education services The SoA will also provide you with the following information before you decide whether to implement our advice: a) the extent (if any) to which Link Financial Services (or any 7

10 associated person) has a legal or beneficial interest in the financial products that are the subject of the financial product advice; b) the extent (if any) to which Link Financial Services (or any associated person) is related to or associated with the issuer or provider of the financial products that are the subject of the financial product advice; and c) the extent (if any) to which the Link Financial Services (or any associated person) is likely to receive financial or other benefits depending on whether the advice is followed. Link Financial Services maintains a register of any non-monetary benefits (valued at more than $300) it receives from Financial providers. You may inspect this register from our office, on request. Will anyone be paid for referring me to you? Link Financial Services has commercial arrangements in place with certain parties to which we pay a fee for the referral of business. Payments are up to 25% of fees generated from the referred account. When we pay a referral fee we will provide you with the exact details in your Statement of Advice. This will include who will receive that fee and the amount they will receive. Any fees payable to referrers are paid by Link Financial Services from its own funds and are not charged to you. What information do you maintain in my file and can I examine my file? Link Financial Services maintain a record of your personal profile including details of your objectives, financial situation and needs. We also maintain records of any recommendations made to you. Link Financial Services is committed to implementing and promoting our Privacy Statement, which will ensure the privacy and security of your personal information. A copy of our Privacy Statement is enclosed for your information. If you wish to examine the records of personal information, and records of any recommendations we have made, please contact us. Records are normally kept for seven years. If you have previously been provided with documentation fees and charges may apply for the retrieval and provision of duplicate records. How can I give you instructions about my financial products? Instructions can be given to Link Financial Services via various means including telephone, fax, and mail. 8

11 Credit Guide Our Services Link Financial Services is registered to provide credit assistance to clients. We choose the credit providers based on research and your objectives. The main credit providers that we recommend, depending on our research and analysis, are: 1. ANZ 2. Commonwealth Bank 3. Westpac Banking Corporation 4. BankWest 5. St. George 6. NAB Homeside Collection of Information and Assessment We and our representatives must provide you with credit assistance that is not unsuitable for your financial situation and objectives. To do this a preliminary assessment must be conducted. For our representative to conduct this assessment they must collect information about your financial situation and the objectives you have for seeking credit. If you do not provide the requested information we may not be able to provide any credit assistance to you. You can request a copy of the preliminary assessment conducted by our representative within 7 years of the date that the written quote was provided to you for credit assistance. If you make the request within 2 years of the written quotation we will provided the copy of the assessment within 7 business days. If the request is made after 2 years but before the end of 7 years we will provide the copy within 21 business days. If you make the request after 7 years have passed we are not obligated to retain a copy so may not be able to provide it to you. Payment for Services We are remunerated by a combination of fees charged directly to you and commissions received from the credit providers with who you take the credit contract with. The details are set out below. Fees We have a range of fees that we charge based on an hourly rate of $275 (including GST) per hour. For example if the assistance we provide to you took 2 hours the fee based on the top hourly rate would be $550 (including GST). Our representatives receives a salary. 9

12 Commissions The credit providers that we recommend to you pay us a commission calculated as a percentage of the amount of credit you receive. There is an initial commission of up to 0.6% which is received on settlement of the loan. There is also an ongoing commission of up to 0.25% per annum of the outstanding balance of the loan which is paid to us monthly. To illustrate the application please see the example below: Upfront Ongoing Loan Amount ($100,000) $600 $250 per annum Link Financial Services will provide in writing, disclosure of any commissions, fees, and other benefits or payments we may receive. What should I do if I have a complaint? If you have any complaints about the service we have provided to you, you should take the following steps: 1. Contact your Adviser and tell him/her about your complaint. 2. If your complaint is not satisfactorily resolved within 7 days you should put your complaint in writing and send it to us at Link Financial Services address, noted on the back of this FSG. We will try and resolve your complaint quickly and fairly. 3. If the complaint can t be resolved to your satisfaction within 45 days [or longer for complicated matters, or with your consent] you have the right to refer the matter to the Financial Ombudsman Service ( FOS ). Link Financial Services is a member of FOS. FOS can be contacted on or you can write to them at GPO Box 3, Melbourne, Victoria, 3001 or on info@fos.org.au. If you still believe that your complaint has not been dealt with fairly, then the Australian Securities and Investments Commission (ASIC) also has a free call Infoline on which you may use to make a complaint and obtain information about your rights. If you have any further questions about the financial services the Financial Ombudsman Service provides, please contact Benjamin Kohn on (03) Retain this document for your reference and any future dealings with Link Financial Services. 10

13 Privacy Our commitment to privacy This statement applies to the financial planning operations of Link Financial Services. Link Financial Services recognises that it is important for you to know how we deal with your personal information and for that reason this statement provides details in relation to our current Privacy Statement. This Privacy Statement has been developed to comply with the relevant provisions of the Privacy Amendment Act 2012 about how and when personal information is collected, stored and distributed by Link Financial Services. Collection of personal information To provide the highest quality service and advice, Link Financial Services is required to obtain some personal information about you. As a financial planning organisation Link Financial Services is subject to certain legislative and regulatory requirements which necessitate us obtaining and holding detailed information which personally identifies you and/or contains information or an opinion about you ( personal information ). Personal information is defined under the Act as information or an opinion that can identify a person. In addition, our ability to provide you with a comprehensive Financial planning and advice service is dependent on us obtaining certain personal information about you. Therefore Link Financial Services, its representatives and staff may request personal information from you which will generally comprise, but not be limited to, the following: Personal details e.g. name, address, contact details (phone, fax, ), date of birth Employment details and employment history Details of your financial needs and objectives Financial details including your assets and liabilities (both actual and potential) and income Details of your current investments, insurance cover and superannuation including amounts, investor numbers and bank account details Details of your personal goals and objectives Details of your investment preferences and aversion or tolerance to risk 11

14 Health information including current health & smoker status and historical medical records Centrelink details including your benefit type and reference number Taxation information including your tax file number Estate planning details including status of wills, beneficiaries and powers of attorney. We do not collect information about anyone s political or religious beliefs, ethnic background or sexual preferences. Use and disclosure of personal information Any personal information about you collected by Link Financial Services will be used for the following purposes: To construct a financial plan and provision of recommendations suitable to your personal situation To give effect to the recommendations made to you Reviewing your financial plan and reviewing the recommendations made in relation to various financial products Providing you with information about issues that may affect your personal and financial situation including details of alternative financial products The organisations we may be required to disclose information include, but are not limited to: Related entities and internal divisions of Link Financial Services Any financial institution (including fund managers, life companies, share brokers) with whom you will be investing, are invested in or have previously invested in. Government departments e.g. Australian Taxation Office and Centrelink Your professional Advisers such as solicitor, accountant and medical practitioner Your executor or power of attorney if required External mail house for bulk mail-outs I.T. contractors working on our systems Any other external party as authorised by you at the time Furthermore, we will not use or disclose information collected about you otherwise than for a purpose made known to you unless the disclosure is: 12

15 Required by law (e.g. the Australian Tax Office and the Australian Securities and Investments Commission have the power to order us to disclose information about your situation); Authorised by law (e.g. to protect our interests or where we have a duty to the public to disclose) or You have consented to us disclosing the information about you Link Financial Services undertakes not to sell, rent or trade your personal information. Storage and security Link Financial Services recognises how important the privacy of your personal information is to you and has undertaken to store such information in a secure environment. Your personal information may be stored both in hard copy and electronically. Link Financial Services restricts access to your information by maintaining login and password control on the computer systems and has in place secure, lockable filing cabinets with premises under electronic security, to store hard copies of personal information. Quality of the personal information Link Financial Services is committed to ensuring that your personal information that we hold is accurate, complete and up to date and has implemented a review service to aid the process To assist us with this, please contact us if any of the details you have provided change. Furthermore, if you believe that the information we have about you is not accurate, complete or up to date, please contact us and we will take all reasonable steps to correct the information Access to your personal information If at any time you wish to know exactly what information we are holding about you, you are welcome to request your details by contacting the Link Financial Services Privacy Officer at the following address: Benjamin Kohn - Director Link Financial Services Pty Ltd Level 2, 205 Balaclava Road Caulfield North, Victoria 3161 Telephone Facsimile bk@linkfs.com.au 13

16 Financial Services Guide & Credit Guide Link Financial Services Pty Ltd ABN Australian Financial Services Licence No: Level 2, 205 Balaclava Road Caulfield North, Victoria 3161 PO Box 2473 Caulfield Junction, Victoria 3161 Telephone Facsimile