FINANCIAL SERVICES GUIDE

Transcription

1 FINANCIAL SERVICES GUIDE Short Form What you need to know about KNM, our Authorised Representatives and our Financial Services Contents The purpose of this Guide Who is KNM? Who is your adviser? KNM Services Pty Limited ABN Australian Financial Services Licence No What products can my adviser provide advice on? How does my adviser provide advice? Head Office Suite 7, Level Nudgee Road, Hendra Qld 4011 Tel: Fax: newbusiness@knmservices.com.au Website: How can you provide instructions or How will I pay for the services provided? What arrangements does KNM have in place with product providers? Does KNM have any relationships or associations with product issuers which might reasonably influence them? What to do if I have concerns about my advisers services KNM Privacy Statement Version 1a March 2015 (Short Version) Page 1

2 The purpose of this guide is to introduce you to KNM Services Pty Limited (KNM) and your adviser, and to offer you information about the financial services provided under KNM s financial services licence. It aims to assist you in deciding whether to use any of the services offered. This guide contains important information about:- Who KNM is Who your adviser is How KNM and your adviser can be contacted What services we offer you How we are paid for these services; and What you can do if you have any concerns. This guide is only complete when the adviser s profile (part 2) is attached. KNM has authorised the distribution of this guide. Who is KNM? KNM is an Australian Financial Services Licensee (AFSL) licenced by the Australian Investment & Securities Commission (ASIC). Our Financial Services Licence Number is KNM has offices in Cairns, Ingham, Mackay, Kingaroy, Brisbane and the Gold Coast. These are all staffed locations. We have authorised representatives in Cairns, Mackay, Rockhampton, Brisbane, Gold Coast, Sydney and Melbourne. KNM and its advisers are committed to providing specialist advice on life insurance, superannuation and investments to individuals, families and businesses in Australia. Who is my adviser? Your adviser is authorised by KNM to provide you with financial advice on KNM s behalf. Your adviser s profile is attached to this Guide and forms part of this Guide. The profile will provide more detail of their individual qualifications and experience, the services they offer and the remuneration they receive. If the adviser profile is not attached please ask the adviser for this profile or contact KNM s head office. KNM is responsible for the advice and conduct of your adviser. We are not responsible for any unauthorised services they may offer (to the full extent permitted by law), so please check the services your adviser offers in their adviser profile. KNM maintains adequate professional indemnity insurance, as required by the Corporations Act, which covers us and our advisers for errors or mistakes relating to our services. This insurance provides cover for claims made against us and our representatives/employees including claims in relation to representatives/employees who no longer work for us but who did so at the time of the relevant conduct. What can my adviser provide advice on? As an Australian Financial Services Licence holder, KNM s advisers are authorised to provide advice on and deal in the following classes of financial products: life products, including: - investment life insurance products - life risk insurance products superannuation interests in managed investment schemes including investor directed portfolio services deposit and payment products, limited to: - basic deposit products - deposit products other than basic deposit products debentures, stocks or bonds issued or proposed to be issued by a government interests in managed investment schemes, including - investor directed portfolio services retirement savings accounts ("RSA") products securities standard margin lending Your adviser may only be able to provide advice in some of the above areas. The adviser s profile will set out the areas in which they can provide advice. Advisers authorised under KNM s licence can recommend risk insurance, superannuation and investment products on KNM s approved product list (APL). The products on this list are analysed and reviewed regularly by KNM s Compliance Committee. In addition to providing product advice, your adviser can also provide certain services. For example: Product implementation Review service Claim facilitation Page 2

3 How does my adviser provide advice? To ensure we understand your financial needs and recommend the most appropriate solutions, your adviser will: Provide you with this FSG and agree on a basis for providing services to you. Obtain the relevant information about your financial needs and objectives and your current financial affairs so that they can provide the most appropriate advice. Research the solutions that will best help you satisfy those needs and objectives. Provide you with a written Statement of Advice (SOA) which sets out their recommendations and the basis for them, the key issues involved and our remuneration for providing our professional advice to you. You may request a copy of the SoA or RoA at any time up to 7 years from the date your adviser gave the advice to you. How can you provide instructions or You can give your adviser instructions verbally or in writing. In some cases, instructions will be required in writing. How will I pay for the services provided? KNM and your adviser are remunerated for the services you receive via the following methods: Receipt of initial and ongoing commissions from product providers; Fee for service which means any of the following: a fee for providing a Statement of Advice, a management fee, an ongoing advice or services fee, or any fee that you will pay for the service; or A combination of both Personal Risk Insurance Unless we advise you otherwise, we are remunerated by commission from the relevant insurer when you enter into an insurance policy arranged by your adviser. The amount of commissions paid by product issuers varies from company to company. Discuss the SOA with you and vary the recommendations if necessary. Provide you with a Product Disclosure Statement (PDS) for each product recommended in the SOA. The PDS is prepared by the product issuer and contains information about the product. Implement the agreed recommendations. Review your financial situation as agreed. If you are an existing client, you may have been through this process already. If you receive further advice from us you will receive either a Record of Advice (RoA) or SoA. You will receive a SoA if the advice is in relation to a different type of product or your circumstances have changed. The commission is paid by the product provider and is not an additional charge to you. Investment & Superannuation Advice For investment advice, you pay for advice in one or a combination of these four ways: upfront commission, ongoing commission, adviser service fee, or fee for service. 1. Upfront We may be paid a commission upfront by the company issuing the product. This is taken from the amount you invest. 2. Ongoing We may be paid an ongoing commission by the company issuing the product. This may be included in the cost of the product you invest in. 3. Adviser service fee We may be paid a fee by the company issuing the product. This is usually taken directly from the amount you invest. 4. Fee for service You agree upfront with your adviser to pay for the services you receive either on an hourly rate, a set fee per year, a percentage of funds invested, or a combination of these. All remuneration will be disclosed in detail in the Statement of Advice that is given to you prior to proceeding with your business. Page 3

4 Other remuneration information Where a third party has referred you to us, they may be paid a referral fee of up to 30% of the commission or fees received by KNM. The adviser profile will contain further information in relation to your adviser s remuneration. How are fees, commissions or other benefits calculated for providing financial services? KNM s advisers are permitted to set their own fees and the amount of commission they will receive from product issuers. The fees charged and commissions received by your adviser are contained in Part 2 of this FSG. All fees and commissions generated by your adviser are paid to KNM. Any cheques you write to pay fees should be payable to KNM and not your adviser. KNM will then pass an agreed percentage of those fees and commissions onto the adviser. Do KNM have any relationships or associations with product issuers which might reasonably influence us? KNM is owned by a number of shareholders, none of whom is a bank, insurance company or super fund. Our shareholders are staff, accountants and advisers. What arrangements does KNM have in place with product providers? KNM may receive conditional commissions from product issuers. As at the date of this FSG, TAL pays KNM a conditional commission based on the increase in the value of the premiums paid to TAL which is attributable to KNM s recommendations and arrangements. Based on current projections KNM expects the maximum amount payable to be less than 15% of the growth in the premiums from year to year. In addition, KNM receives 1% of the total inforce premium. AIA pays KNM an additional 5% commission on all new business premium submitted and an additional 2% commission on renewal premiums. AMP may pay an annual conditional commission of between 0.7% and 3% on the total of the annual in force premiums for the average of the relevant 12 month period. AMP may also pay a biannual conditional commission of between 0.015% and 0.15% on the total of the funds invested at the date of calculation, but this does not apply to any new funds invested. At this point, any payment from AMP is expected to be minimal. IOOF pays KNM 0.05% on all funds under management in the IOOF Employer Super Fund (formerly Spectrum Super). Macquarie may pay an annual conditional commission on business that KNM completes in excess of $250,000 net new premium per year. If KNM were to qualify, the rate applicable on such business would be in the range of between 5% and 9% of new business premium placed with Macquarie. Product providers may also provide other benefits to KNM and KNM advisers, including but not limited to: Entertainment such as lunches or sporting events etc. Sponsorship of KNM professional development events. These benefits are outlined in KNM s soft dollar register. They are provided infrequently, if at all. What do I do if I have concerns about my adviser s services? Firstly, please speak to your adviser to discuss your concerns. If your adviser has not been able to resolve your concerns satisfactorily, or you do not wish to speak to your adviser, please contact: The Managing Director KNM Services Pty Limited Suite 7, Level Nudgee Road, Hendra Qld cosc@knmservices.com.au KNM will always seek to resolve your concerns quickly and efficiently. If KNM has not been able to resolve your concerns satisfactorily you may lodge a complaint with: Financial Ombudsman Services (FOS) GPO Box 3, Melbourne VIC 8007 Tel: Fax: info@fos.org.au Web: FOS is an industry sponsored company that seeks to advise and assist clients to resolve complaints with their financial advisers. FOS is an independent and impartial company. The Australian Securities and Investments Commission also has a free call info line on You can contact the Managing Director at KNM s Brisbane address (above) or on telephone number if you have any further questions. Please retain this document for your future reference. Page 4

5 PRIVACY STATEMENT We are committed to protecting your privacy This section outlines the KNM Services Pty Limited ( KNM ) policy on handling the personal information it collects about individuals including clients and potential clients. We respect the confidentiality of your information and take your privacy seriously, abiding by the Australian Privacy Principles contained in the Privacy Act 1988 (Cth). When we request personal information, we will normally explain why we need it, how it will be used and who we may share it with. Why does KNM need your personal Understanding and meeting our customers financial needs over the course of their lifetime is a central part of our business. We do this by providing financial products and services under various brands offered by businesses within the KNM group. To do this effectively, we need to collect certain personal information. In this Privacy Statement, personal information is any information that could identify you or be used to establish your identity. The types of financial products and services we provide include: life insurance products investment products superannuation and retirement income products financial planning advice and other services to help you understand your financial needs and make financial and investment decisions management of investment assets such as shares, property, fixed interest and cash. KNM mainly collects, holds, uses and discloses customers personal information so we can establish, manage and provide these products and financial services. We may also use and disclose your information for purposes related to those mentioned above, such as arranging for services to be provided by third parties and enhancing our customer service and product options (see the next section Will my personal information be used for Direct Marketing ). In addition, some laws require us to collect personal information. These include the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), the Corporations Act 2001 (Cth), the National Consumer Credit Protection Act 2009 (Cth) and the U.S Foreign Account Tax Compliance Act. Will my personal information be used for Direct Marketing? We may also use your personal information to keep you informed about the range of financial products and services offered by the KNM group. These may include superannuation, investment, retirement, and life insurance products, and financial planning services. You can opt out of receiving direct marketing information from us at any time (see the How can you contact KNM about privacy? section below). What happens if I do not provide information that has been requested? It s your choice whether to provide your information. However, if you don t, we may be unable to fulfil your request for a specific product or service. Where you are seeking financial planning services, it may also affect our ability to properly analyse your personal circumstances. What types of personal information does KNM collect? We may ask for a range of personal information to assist us in providing you with relevant financial products and services. The information we may request includes (but is not limited to) name, address, date of birth, contact details, income, assets and liabilities, account balances, tax and financial statements, employment details and citizenship status. Does KNM collect sensitive We sometimes need to collect and use sensitive information, such as when we complete applications for some insurance and banking products, or when assisting with a claim. Sensitive information includes information or an opinion relating to a person s racial or ethnic origin, membership of a professional or trade association or trade union, sexual orientation or practices and criminal record. It also includes information about a person s health and medical history. The Australian Privacy Principles set out restrictions about the way sensitive information can be used. Unless you give us your consent, or if we are required or permitted by law, we will only use or disclose sensitive information for the purposes for which it was provided. How does KNM collect personal KNM will collect your personal information directly from you where this is reasonable and practical. We gather this information either through applications or other forms that you complete, or by recording the information you provide via phone calls, interviews and other forms of communication. We may also collect personal information from external sources. Examples of the people or organisations who may provide us with information are: people authorised by you (such as lawyers or accountants) third-party brokers (such as insurance and mortgage brokers) employers, when a new employee joins their superannuation or insurance plan parents or guardians in respect of children public sources of information (such as telephone directories, Facebook) When we are provided with personal information about an individual from a third party, we seek to ensure the individual is aware of certain matters, such as KNM s identity and our contact details. Can you remain anonymous or use a pseudonym when dealing with us? If you wish to remain anonymous or to use a pseudonym when dealing with us, we may be able to provide you with limited information or services, such as general details about our products. However in many cases it will be impracticable for us to assist you if you wish to remain anonymous or use a pseudonym. For example, we are generally not permitted to Page 5

6 issue a financial product to a person without first collecting their personal information. Also, the provision of many financial services is highly personalised, with the quality and scope of financial advice heavily dependent on the individual circumstances of each customer. Because of this, if you choose not to identify yourself or wish to use a pseudonym, we may be unable to provide you with the specific product or service you want. It may also affect our ability to properly analyse your personal circumstances so our recommendations may not be completely appropriate or suitable for you. How does KNM protect your personal Whether your personal information is gathered through face-toface meetings or by interacting with us via telephone, mail, internet or other methods, we take steps to store your information securely. We hold your personal information in a combination of secure computer storage facilities, paper-based files and other formats. We take a number of steps to protect personal information from misuse, loss, unauthorised access, modification or improper disclosure. These include instructing our staff and financial advisers who handle personal information to respect the confidentiality of customer information and the privacy of individuals. Who does KNM share personal information with? From time to time we may share your personal information with other entities both within and outside of the KNM group. The entities that we might share your personal information with vary according to the product or service involved, but could include: other areas and organisations within KNM that provide financial and other services employers contributing to or otherwise participating in our superannuation or insurance plans anyone authorised by you or to whom you have provided your consent (either expressly or impliedly), including but not limited to other financial services providers that we may need to deal with on your behalf anyone to whom we are required or authorised by law to disclose your personal information (for example, law enforcement agencies, and national and international government and regulatory authorities including but not limited to the Australian Taxation Office, the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission, the Australian Transaction Reports and Analysis Centre and the United States Internal Revenue Service) other financial services institutions - in order to detect, investigate or prevent actual or potential fraud in connection with the products or services we provide to you. Is KNM likely to disclose personal information to overseas recipients? KNM does not send information overseas. However you should be aware that some product providers may outsource functions using overseas contractors or companies that process services using offshore resources. Where this is a concern to you, we suggest that you carefully read their privacy policy. How does KNM update personal We realise that your personal information changes frequently people move house, change jobs and update other personal circumstances on an ongoing basis. In most cases you can alter your details over the telephone or via . How long will KNM keep your We may be legally required to maintain some of your records for a significant period of time. However once we believe information is no longer needed we may remove any identifying details or destroy the records entirely. How can you contact KNM about privacy? You can contact us to: - seek more information about anything contained in this statement, or to request a copy of this statement in a different format - update or correct your personal information - opt out of receiving direct marketing material - ask about accessing or correcting the personal information we hold about you; or - make a privacy related complaint in one of the following ways: By telephone: By cosc@knmservices.com.au In writing: KNM Services, Suite 7, Level 1, 463 Nudgee Road Hendra QLD 4011 How do I find out about the personal information KNM holds about me? Under the Privacy Act you have the right to access the personal information we hold about you, with some exceptions. To make a request you will need to outline what information you require. Contact us as set out above. KNM is permitted to refuse access to personal information in certain situations. Examples include where: giving access would have an unreasonable impact on the privacy of other individuals giving access would be unlawful, or where denying access is required or authorised by an Australian law or a court order both of the following apply:- i) we have reason to suspect that unlawful activity, or misconduct of a serious nature, that relates to our functions or activities has been, is being or may be engaged in; and ii) giving access would be likely to prejudice the taking of appropriate action in relation to the matter giving access is likely to interfere with law enforcement activities. Before providing the requested information we will give you an estimate of any potential costs associated with this, including expenses for locating, retrieving, reviewing and copying any of the material you need. What should I do if I have a complaint? To raise any concerns you might have in relation to privacy, please contact us via the contact channels listed. We may then refer a complaint to a specific area within KNM and a representative of that area may respond to your concerns. We take privacy-related complaints very seriously and consider all complaints carefully as part of our commitment to being open, honest and fair in dealing with your concerns. In most cases, we ll contact you within five working days of receiving your complaint to let you know what actions we are taking regarding the matter. Page 6