Secondary Disclosure Statement (Authorised Financial Adviser)

Transcription

1 Secondary Disclosure Statement (Authorised Financial Adviser) Contact Details: Name and registration number of Authorised Financial Adviser: Anthony Harold Chave FSP Address: 6/5 Liverpool Street, Dunedin 9016 Trading name: Tony Chave Financial Services Limited Telephone number: / tony@tcfs.co.nz This disclosure statement was prepared on 22 July 2014 My experience and qualifications I am an authorised financial adviser and have been since 31 st March 2011 I have completed the following relevant qualifications: National Certificate in Financial Services (Financial Advice) (Level 5). Associate Financial Planner Institute of Financial Advisers (IFA): Obtained in Associate Life Underwriter Institute of Financial Advisers (IFA): Obtained in Business Financial Solutions (Merit) Adviserlink: Obtained in 1998 / Introduction to Financial Planning (Honours) Adviserlink: Obtained in I have been a financial adviser for 31 years and give advice on the following: life insurance, total and permanent disability insurance, trauma insurance, mortgage insurance, medical insurance, income protection insurance, key person, business insurance, business expense cover, group covers including group life, total and permanent disability, trauma, income and medical cover, ACC advice. In January 2014 I established Tony Chave Financial Services Limited. This company specialises in providing business and personal risk advice to self-employed clients, small business owners and farmers. I am also an agent for OFS Insurance Brokers Limited. I keep my qualifications up-to-date through continuing education (consisting of seminars, technical briefings, product accreditation and conference workshops) for a minimum of twenty hours per year and sixty hours of continuing professional development every two years. This includes keeping up-to-date with changes to the Code of Professional Conduct for Authorised Financial Advisers and relevant consumers laws such as the Fair Trading Act. Page 1

2 How I Operate When I give advice I follow the internationally recognised six-step process: 1. Establishing the client-adviser relationship, 2. Gathering client data and determining your goals and expectations, 3. Analysing and evaluating the client's financial position and personal and business insurance needs, 4. Developing and presenting our written advice, 5. Overseeing the implementation of the plan, and 6. Monitoring and reviewing the plan. This can require a series of meetings with a prospective client before our advice is finalised. It also means I maintain a close ongoing relationship with clients, regularly reviewing progress and working with them over time to ensure their goals can be met. The services I provide will depend on your needs. They may include any or all of those detailed in this Disclosure Statement. My advice will take account of your personal objectives, financial situation and needs. It will be clear and concise, with enough detail for you to make an informed decision about whether to act on it. Professional Bodies I am a member of the Institute of Financial Advisers (IFA) and, as a condition of my membership I adhere to the IFA Code of Ethics and IFA Practice Standards in all facets of my practice. Professional Indemnity Insurance I have professional indemnity insurance which covers all my areas of practice as listed above. This insurance provides protection for clients for: any error or omission; defamation; employee dishonesty; and includes full "prior acts" protection. The underwriter is: NZI (a business division of IAG New Zealand Limited) As with all insurance, this cover has limitations and is subject to certain exclusions and terms and conditions. Page 2

3 Services and products I provide I provide the following types of financial adviser services: Financial advice I provide advice in the following subject areas: Risk Management (Insurance) Personal Risk Management (Insurance) Business The financial adviser services I provide are in relation to the following financial products: Life insurance, total and permanent disability insurance, trauma insurance, mortgage insurance, medical insurance, income protection insurance, key person, business insurance, business expense cover, group covers including group life, total and permanent disability, trauma, income and medical cover, ACC advice. I only provide financial adviser services in respect of financial products provided by: Asteron Life Limited Fidelity Life Assurance Company Limited NIB NZ Ltd - Health Insurance Fees I charge a fee for business risk audits, these will be calculated on the following basis (all plus GST). The fee I charge is a fixed amount depending on the turnover of the business. The fees will be charged by invoicing you after the financial advisor service is provided. Business Risk Audit fees are; Turnover up to $1 million Turnover $1 million to $3 million Turnover $3 million and over $ GST $ GST $ GST I do not charge a fee for business risk insurance where an audit is not completed. I also do not charge a fee for personal risk advice. If it becomes apparent that this fee estimate is likely to be exceeded I will provide you with a further fee estimate at this time. You will need to pay this fee to me within 14 days of receiving the relevant invoice. Page 3

4 Other interests and relationships Solutions Financial Services Limited (SFSL) SFSL provide me with continuing professional development to help me maintain my qualifications, skills and knowledge. As a result of providing me with this support, SFSL are paid an over-ride commission and in some situations share the initial commission with me. These commissions payable to SFSL are not additional fees that you must pay. Ginger Group Financial Services Limited (Ginger Group) The Ginger Group provides me with access to the products provided by Asteron Life Limited and Fidelity Life Assurance Company Limited. As a result of providing me with access to these products, the Ginger Group are paid an over-ride commission and in some situations share the initial commission with me. These commissions payable to the Ginger Group are not additional fees that you must pay. RMS Software Limited RMS Software Limited provides me with the InControl software program. The InControl program is a risk needs analysis and report writer for personal and business insurance. OFS Insurance Brokers Limited (OFS) OFS Brokers Limited is a Dunedin based general insurance brokerage. I am an independent contractor to OFS. OFS will provide professional and independent advice across all areas of commercial and domestic general insurance. OFS receive a brokerage for placement of business with general insurance companies. This brokerage is not an extra payment by a client, but is based on a percentage of the annual premium payable to the insurance company. Standard brokerage payable to Insurance Brokers is for example 20% on material damage, business interruption, 10% on motor vehicles. Preferential Terms Performance Agreement I do not have any preferential terms (other than those readily offered to other market participants) or production performance agreements with any particular product provider. I do not have any commercial relationships or contractual arrangements that present any particular conflicts of interest to consumers generally which would be reasonably likely to materially influence me in providing the financial adviser service. I place business with each of: Asteron Life Limited, Fidelity Life Assurance Company Limited and NIB NZ Ltd. I am not required to place any level of business with any supplier or financial organisation. I do not have any other financial or other relationship with any other person that would be reasonably likely to influence me in giving advice, except as described above. Page 4

5 Remuneration I will or may receive remuneration from the following sources: Asteron Life Limited (Asteron) In the event that you follow my recommendation and successfully place insurance with Asteron Life then I will be remunerated as follows: I have a choice of three commission levels on cover provided by Asteron. The three options are: *Initial Commission Service Commission Production Bonus Upfront Option 100% years 2&3 5% 80% years 4 onwards 10% Spread 20 50% years 2&3 20% 80% years 4 onwards 20% Level 30 Nil years 2 & 3 30% 80% years 4 onwards 30% *Note; the maximum initial commission payable is 80% of the initial premium I will disclose to you the option I select when I provide my written advice to you. Fidelity Life Assurance Company Limited (Fidelity) In the event that you follow my recommendation and successfully place insurance with Fidelity then I will be remunerated as follows: Initial commission can be paid to a maximum of 160% x the annual insurance premium payable by the client in the first year, and renewal and service commission will be paid at 10% of the annual premium payable in subsequent years. I can choose to take between % of the upfront commission from Fidelity. If I choose to take a lower upfront commission the balance then converts to a higher renewal commission. I will disclose to you the option I select when I provide my written advice to you. Page 5

6 NIB NZ Ltd (NIB) In the event that you follow my recommendation and successfully place insurance with NIB then I will be remunerated as follows: Product Commission type Initial Commission Servicing Commission Volume Bonus Commission Ultimate Health Level Commission 17% 17% 70% Ultimate Health Max Base cover only Standard 70% 5% 70% Commission Base Cover Only Where Base Plan is 17% 17% Level Specialist Option Where Base Plan is 70% 5% Standard Specialist Option GP Option % 7.5% GP option age 7.5% 5% GP option age 5% 2.5% 65+ Dental and 10% 0% Optical Option age 0-54 Dental and 7.5% 0% Optical Option age Dental and 5% 0% Optical Age 65+ Serious Condition 100% 5% 70% Financial Support option Proactive Health option 10% 10% Page 6

7 OFS Insurance Brokers Limited (OFS) In the event that you place your business through OFS then I will be remunerated as following: Standard Brokerage will be paid to OFS, which is for example 20% on material damage, business interruption, 10% on motor vehicle. I will be paid 40% of the standard brokerage rate received by OFS. I receive this brokerage each year the policy is renewed. Non-cash additional rewards I receive free or heavily discounted travel and/or corporate gifts from Asteron, Fidelity and NIB, if I recommend them as a product provider, depending on the total volume of business placed with Asteron, Fidelity and NIB. I may also receive benefits in the form of entertainment (e.g. rugby and concert tickets, golf days, etc), subsidised professional development (e.g. below actual cost conference attendance, subsidised cost training courses, etc), or office supplies (e.g. notepads, pens, etc) from Asteron, Fidelity and NIB. Safeguards to manage, identify and avoid potential conflicts of interest. Potential conflicts of interest and other material influences associated with remuneration and other reward related to or arising from financial product providers are disclosed to clients in my disclosure statements. In addition, a written scope of service or engagement is provided to clients which sets out the limits of the work to be undertaken. A written statement of advice is given to clients and where remuneration arises, disclosure of fees and / or commission (including commission rebates to clients if any) arising from that particular advice is given in writing. Any potential conflicts of interest that may arise are avoided and managed in the following ways: I do not face any prescribed quotas or similar arrangements that require a minimum proportion of sales with a particular provider. I am required to follow an advice process whereby client needs and objectives are identified and product recommendations are made on the basis of those needs. I must disclose and explain any perceived or potential conflict of interest to each client when completing the advice process with that client. Other information about me and the services I provide No additional information Declaration I, Anthony Harold Chave, declare that to the best of my knowledge and belief, the information contained in this disclosure statement is true and complete and complies with the disclosure requirements in the financial Advisers Act 2008 and the Financial Advisers (Disclosure) Regulations Signed Date Page 7