Financial Services Guide Effective 1 January 2016 Talk to us today.
About this Financial Services Guide This Financial Services Guide (FSG) is provided by Heritage Bank Limited (Heritage or we/us/ our) as a requirement under the Corporations Act 2001. The FSG is designed to assist you in deciding whether to use any of the financial services offered in this FSG. It contains information on: Documents you may receive Details of the financial services and/or products Heritage can provide Who is responsible for providing the financial services Relationships which might influence Heritage or your adviser in providing financial services Remuneration and benefits received by our staff The complaints procedure and compensation arrangements Documents you may receive Depending on the type of product or service you choose, you may also receive a Product Disclosure Statement (PDS) and/or a Statement of Advice (SoA). Product Disclosure Statement (PDS) We may be required to give you a PDS when we issue, offer to issue or offer to arrange for the issue of a financial product or when we give personal advice recommending a financial product to you. The PDS details all aspects of the product recommended. We will not usually give you a PDS in relation to a basic deposit product or a non-cash payments product related to a basic deposit product. Statement of Advice (SoA) We may be required to give you an SoA when we provide personal advice. The SoA details the financial advice provided to you, and covers such matters as the advice and/or product recommendations, any remuneration payable, the risks and disadvantages associated with the advice and/or product recommendations, and all details of any relationships which might influence your Adviser in providing the financial advice and/or product recommendations. Where you require further personal advice and there are no significant changes to your circumstances, your adviser is required to keep a record of advice for a period of seven years. A copy of the record of advice is available on request. Where you require further personal advice and your circumstances have significantly changed, you will receive a new SoA. 2 Financial Services Guide
About Heritage Our name and contact details Heritage Bank Limited ABN 32 087 652 024 AFSL 240984 400 Ruthven Street / PO Box 190 Toowoomba Queensland 4350 Phone: 13 14 22 Fax: 07 4694 9780 Email: info@heritage.com.au Internet: www.heritage.com.au A full list of Heritage s locations is included in the brochure titled Where to find Heritage which is available from our branches or by visiting the Find a Branch section of our website. Services and products Heritage holds an Australian Financial Services Licence authorising us to deal in (by issuing or arranging the issue of), and provide financial product advice about, the following types of financial products to retail and wholesale clients: deposit and payment products; general insurance products; life insurance products - investment life insurance and life risk insurance; government debentures, stocks or bonds; managed investment schemes including investor directed portfolio services; superannuation and retirement savings accounts; securities; and standard margin lending facilities. Financial Planning Our financial planning services are provided by employees of Heritage. Our advisers can provide personal advice on: savings and wealth creation strategies; social security; superannuation, redundancy and rollover strategies; income streams; risk analysis in life, total & permanent disability, trauma and income protection; consumer credit insurance products (a particular type of general insurance product (CCI)) Effective 1 January 2016 3
retirement planning; tax effective strategies; and portfolio review. Our advisers can recommend products related to these services from an extensive approved products list, compiled from external and internal research. Products not on the approved list require special approval from Heritage. Our advisers cannot provide advice on taxation or direct property investments, estate planning strategies or general insurance (with the exception of CCI). Who we act for Heritage provides the financial products and services described in this FSG as licensee under its own AFSL. When we provide financial services relating to financial products issued by Heritage, we act on our own behalf. When providing the arranging services, Heritage may act on behalf of other product issuers, including issuers of life insurance products, general insurance products, managed investment products, superannuation products, margin lending facilities and securities. Types of financial product advice We can give you two types of financial product advice: personal and general. Personal advice takes into account your objectives, financial situation and/or needs. For us to give you personal advice, we need to be aware of your individual financial objectives, financial situation and needs. General advice does not take into account your objectives, financial situation and/or needs. We will tell you if the advice we are providing is general advice only. Our staff Not all of our staff are qualified to give you financial advice. Some are authorised only to give general advice or personal advice on a limited range of financial products. If one of our staff cannot help you or provide you with advice, they will refer you to another staff member who can. Giving us instructions Depending on the financial service or product concerned, you may conduct transactions or give instructions to us in person, electronically (examples: fax, email, telephone, internet, ATMs) and via our authorised representatives. In some cases you may also authorise other people to conduct transactions or give instructions on your behalf. It may still be necessary for some instructions to be confirmed in writing. 4 Financial Services Guide
Associations and relationships Not all products offered by Heritage are issued by Heritage. Heritage often acts on behalf of other product issuers. Heritage acts on behalf of other issuers when it sells the following products: Product issuer Access Prepaid Australia Pty Ltd ABN 47 145 452 044 AFSL 386837 Western Union Business Solutions (Australia) Pty Ltd ABN 24 150 129 749 AFSL 404092 Western Union Network (Ireland) Limited Travelex Limited ABN 36 004 179 983 AFSL 222444 AGA Assistance Australia Pty Ltd ABN 52 097 227 177 AFSL 245631 trading as Allianz Global Assistance, a member of the global Allianz Group Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 Allianz Australia Life Insurance Limited ABN 27 076 033 782 AFSL 296559 AIA Australia Limited ABN 79 004 837 861 AFSL 230043 Aon Risk Services Australia Limited ABN 17 000 434 720 AFSL 241141 Example of financial products issued Multi-currency prepaid cards (Cash passports) Telegraphic transfers (inward and outward) Foreign cheque conversion International drafts Money in minutes Foreign currency Travel insurance Complimentary Platinum card insurance including: - International travel insurance - Interstate flight inconvenience insurance - Transit accident insurance - Purchase cover insurance - Extended warranty insurance - Guaranteed pricing scheme Home, contents and motor insurances Caravan and trailer insurance Consumer credit insurance (disability and unemployment component) Landlord insurance Consumer credit insurance (life component) Commercial insurance Effective 1 January 2016 5
Product issuer Asgard Capital Management Ltd ABN 92 009 279 592 AFSL 240695 BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 Questor Financial Services Limited ABN 33 078 662 718 AFSL 240829 TAL Life Limited ABN 70 050 109 450 AFSL 237848 Suncorp Life & Superannuation Limited ABN 87 073 979 530 AFSL 229880 and Suncorp Portfolio Services Limited ABN 61 063 427 958 AFSL 237905 The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 AFSL 235035 Colonial Mutual Superannuation Pty Ltd ABN 56 006 831 983 AFSL 235025 OnePath Custodians Pty Limited ABN 12 008 508 496 AFSL 238346 OnePath Life Limited ABN 33 009 657 176 AFSL 238341 Westpac Life Insurance Services Limited ABN 31 003 149 157 AFSL 233728 Westpac Securities Administration Limited ABN 77 000 049 472 AFSL 233731 Zurich Australia Limited ABN 92 000 010 195 AFSL 232510 Zurich Australian Superannuation Pty Limited ABN 78 000 880 553 AFSL 232500 Example of financial products issued Platform for managed investments Platform for superannuation/pensions Platform for managed investments, superannuation and pensions Business expense cover Business expense cover Business expense cover Business expense cover Business expense cover 6 Financial Services Guide
Benefits relating to financial services Benefits received by Heritage Heritage may charge fees for any of its financial services. Information about the fees charged in relation to our financial planning services are set out in this FSG. We may also receive commissions and other benefits from other product issuers for dealing in financial products on their behalf. The following table indicates the ranges of commissions we may receive. Product Range of commission Who pays commission Multi-currency pre-paid cards (Cash Passports) (non-cash payments product) Australian dollar and foreign currency International drafts Telegraphic transfer Foreign cheque conversion Inward telegraphic transfer Foreign cash (sell) Money in minutes General insurance (other than caravan insurance) Caravan insurance Commercial insurance 1% of the Australian dollar amount transacted 1.1% of the Australian dollar value or $15, whichever is greater, on each load or reload in branch. 1% of the Australian dollar value on all Bpay reloads. Foreign exchange revenue share on the Australian dollar value of all loads and reloads (excluding Bpay) in a contract year: 20% less than or equal to $12,000,000; 22.5% greater than $12,000,000 and less than $20,000,000; 25% greater than $20,000,000. 30% share of total foreign exchange revenue and fee 30% share of total foreign exchange revenue 1% commission and 20% of the foreign exchange revenue 20% share of total foreign exchange revenue and fee Up to 20% of each premium (excluding government fees and charges, plus GST) Up to 10% of each premium (excluding government fees and charges, plus GST) Up to 10% of each premium (excluding government fees and charges, plus GST) Up to 10% of the fees charged by Aon (excluding government fees and charges, plus GST) Access Prepaid Australia Pty Ltd Western Union Business Solutions (Australia) Pty Limited Western Union Business Solutions (Australia) Pty Limited Travelex Limited Western Union Network (Ireland) Limited Allianz Australia Insurance Limited Allianz Australia Insurance Limited Aon Risk Services Australia Limited Effective 1 January 2016 7
Product Range of commission Who pays commission Life related insurance (this Up to 125% of each premium AIA Australia Limited includes life cover, total and (excluding government fees and Asteron Life Limited permanent disability (TPD) cover, charges, plus GST) trauma cover, income protection OnePath Life Limited cover, business expense cover and child cover) The Colonial Mutual Life Assurance Society Limited Westpac Life Insurance Limited Zurich Australia Limited Zurich Investment Management Limited Travel insurance Consumer Credit Insurance (Mortgage Repayment insurance and Loan Repayment insurance) Up to 30% of each premium (excluding government fees and charges, plus GST) Up to 20% of each premium (excluding government fees and charges, plus GST) Insurance is underwritten by Allianz Australia Insurance Limited and arranged and managed by AGA Assistance Australia Pty Ltd trading as Allianz Global Assistance Allianz Australia Insurance Limited and Allianz Australia Life Insurance Limited In addition, Heritage refers customers to Australian Investment Exchange Limited ABN 71 076 515 930 for online share trading services. Heritage is entitled to receive 15% of the total brokerage paid monthly by customers referred to Australian Investment Exchange Limited ABN 71 076 515 930 by Heritage via the link on the Heritage website. We provide no financial services in this area and are not responsible for the financial services you receive from the provider or its representatives. Those services are the sole responsibility of the provider and its representatives. We also receive payments from other product issuers or financial product advisers to whom we refer you to. Ask us for more details before we provide you with any services on the product. We may receive other benefits which are not required to be in this FSG. For example, we are not required to include in this FSG details of the benefits we receive in relation to some deposit products such as basic deposit products, non-cash payment products related to basic deposit products. Heritage may pay other providers up to 0.1% of the amount invested in return for making referrals in respect of Heritage s term deposit products. 8 Financial Services Guide
Financial Planning Where personal advice is provided, we may charge you fees for the preparation of the SoA, an initial advice fee, and an ongoing advice fee. Depending on the product recommended we may also receive initial and ongoing commission. Generally the payment we receive will be based on a percentage of the amount you invest. It may vary from one financial product issuer to another. If you receive personal advice from us, information about any fees, commissions and any other benefits payable by you, or made to us by financial product issuers in relation to our financial planning services will be disclosed to you at the time the advice is provided or as soon as practicable after that time. Where we enter into an ongoing advice arrangement with you as part of our Ongoing Service Proposition, we will provide you with a fee disclosure statement (FDS) on an annual basis. This will outline the amount of each ongoing fee paid by you, information about the services you were entitled to receive and information about services you actually received, under the ongoing fee arrangement for the previous year. A description of the fees are set out in the table below. Statement of Advice Preparation Fee Financial Planner Minimum fee of $500 up to a maximum of $7,500 Product Service Advice Implementation Up to 5.50% (excluding Gearing and Margin For example, up to $5,500 Lending) / Initial Fee on an investment of $100,000 Advice Implementation Gearing and Margin Lending Ongoing Adviser Service Fee (excluding Gearing and Margin Lending) / Ongoing Fees Ongoing Adviser Service Fee Gearing and Margin Lending Wealth Protection Advisor Nil Up to 125% of the first year s annual premium For example, up to $1,250 on an annual premium of $1,000 $2,000 flat fee Not applicable Up to a maximum of 1.10% of portfolio balance. For example, up to $1,100 on a portfolio balance of $100,000 $1,000 per annum flat fee Note: All initial and ongoing fees and commissions are inclusive of GST Up to 33% of renewal premium For example, up to $330 on a renewal premium of $1,000 Not applicable Effective 1 January 2016 9
Benefits received by our staff and others Our staff are paid either salary or wages. They may also be paid an incentive for either or both of: their performance against sales budgets as part of a team or individually; and their participation in our overall financial performance. Depending on the kind of work they do, the incentive may be paid quarterly, half-yearly or yearly. At the time this FSG is given to you, it is not possible to determine whether a staff member qualifies for an incentive or the amount of that incentive. No commissions, incentives or benefits are paid to our staff on a per sale basis. Payment of any incentives earned will be subject to satisfactory adherence to regulatory and company compliance requirements. Incentives are paid by Heritage and are not an added cost to you. Adviser payments are not linked to particular products. Alternative Remuneration Periodically, Heritage and/or its representatives may receive benefits such as marketing allowances, business lunches, tickets to sporting or cultural events, corporate promotional merchandise and other minor benefits from product providers whose products we recommend. Any non-monetary benefit received is accepted on the express condition that no preference whatsoever will be given to the products provided by any of the organisations concerned. Non-monetary benefits between $100 and $300 will be recorded in a public register. This register is available for inspection on request and we undertake to provide this information within 1 month of the request being received. Non-monetary benefits valued over $300 and monetary benefits of any value are prohibited. Compensation arrangements Heritage has professional indemnity insurance cover and other internal arrangements in place in respect of financial services provided to our retail clients. These arrangements satisfy the requirements for compensation arrangements under Section 912B of the Corporations Act 2001. 10 Financial Services Guide
Resolving complaints If you have a complaint about Heritage or any of our authorised representatives or staff, please tell us. The various ways to access our dispute resolution procedure are to: call us on 13 14 22; or visit one of our branches and talk to our staff; or write to us at PO Box 190, Toowoomba, Queensland, 4350; or fax us on 07 4694 9780; or email us at feedback@heritage.com.au. Our dispute resolution procedure requires that we seek to acknowledge receipt of the complaint immediately, or as soon as possible up to a maximum of 5 business days and to resolve your complaint within 21 days or up to 45 days for more complex matters (or in relation to a Visa dispute up to 60 days), although it is not always possible to resolve a complaint within these time frames. You are entitled to refer your matter to the Financial Ombudsman Service (FOS) at any time. You just need to advise us and we will facilitate the referral free of charge. Effective 1 January 2016 11
Find out more Drop into your nearest Heritage branch Visit heritage.com.au Call 13 14 22 Connect with us Facebook: facebook.com/heritage Twitter: @heritagebank YouTube: youtube.com/heritagepeoplefirst Talk to us today. Speak with your local branch direct or call 13 14 22. www.heritage.com.au This environmentally responsible brochure is printed using vegetable based inks on a paper that is produced using only sustainable resources under the guide of Responsible Forestry Practices. This paper is endorsed by the Forest Stewardship Council, is elemental chlorine free, and is manufactured under Environmental Management System ISO 14001. Heritage Bank Limited. ABN 32 087 652 024. AFSL and Australian Credit Licence 240984. G57 Effective 01/16