Terms of Engagement & Fee Proposal

Transcription

1 Cloud Financial Planning Pty Ltd ABN Authorised Representative Dover Financial Advisers Pty Ltd Australian Financial Services Licensee Geelong Office Level 1 / 2a Belle Vue Arcade Highton Shopping Centre Highton Postal Address PO Box 6332 Highton VIC January 20XX Victorian callers Interstate callers admin@cloudfp.com.au website Mr Homer and Mrs Marge Simpson 123 Simpson Street SPRINGFIELD VIC 3000 Dear Homer and Marge, Terms of Engagement & Fee Proposal It was a pleasure to be contacted by you recently to discuss ways Cloud Financial Planning can help you secure your financial future. The following confirms our discussions concerning your financial planning requirements, along with ways we believe our advice can be beneficial to your needs and the cost of advice. How can advice help you? Outlined below are general ways we believe our holistic range of advice services can be beneficial to you. 1. Cash Reserve & Planned Expenditures 1.1. Maintain a provision for a cash reserve of at least $10, Provide for your planned lump sum expenditure including a new car and regular overseas holidays. 2. Debt Management 2.1. Analyse your debt position to determine if selling your shares and managed funds to repay part of your loans would be beneficial to you Develop various debt reduction strategies to ensure your loans are repaid by the time you retire. This includes a projection of when your loans will be repaid by. Shaun Liddicoat and Cloud Financial Planning Pty Ltd, ACN , are Authorised Representatives of Dover Financial Advisers Pty Ltd, ABN , an Australian Financial Services Licensee with its registered office at 71 Tulip Street, Cheltenham, VIC, 3192.

2 3. Non-Superannuation Investments 3.1. Review your current managed funds and share investments to ensure they remain appropriate for your circumstances The recommendation of new investments which we believe will be appropriate to your circumstances The establishment of a regular savings plan with regards to your surplus cash flow. 4. Superannuation 4.1. Review your current superannuation funds and recommend an alternative superannuation fund only if this is beneficial for you The development of an investment plan for your superannuation. This will cater for your short, medium and long term investment needs. The investment plan may include assets such as cash, fixed interest securities, shares, managed funds and property. All investments will be actively managed as part of our ongoing service offering An analysis of how much you should be contributing to superannuation with the aim of reducing the amount of tax you pay and maximising your retirement savings A review of your superannuation beneficiary nominations to ensure your superannuation transfers in a timely and tax effective manner should you pass away. 5. Tax Planning 5.1. The identification of any further tax reduction strategies if they are appropriate for your circumstances. This includes the reduction of potential capital gains taxes which may be payable in the future. 6. Personal Insurance 6.1. Conduct an analysis of how much Life, Disability and Income Protection insurance you require Provide specific quotations with various life insurance companies for any shortfall in insurance cover. 7. Estate Planning 7.1. Ensure your estate planning requirements are up to date to ensure your assets pass to the right person at the right time. 8. Retirement Planning 8.1. An analysis of how much money you will have at retirement and what kind of retirement lifestyle this would be able to provide for. 9. Financial Projections 9.1. Detailed cash flow and financial projections which show the likely outcome under various scenarios and the benefits of implementing our strategic recommendations. Shaun Liddicoat and Cloud Financial Planning Pty Ltd, ACN , are Authorised Representatives of Dover Financial Advisers Pty Ltd, ABN , an Australian Financial Services Licensee with its registered office at 71 Tulip Street, Cheltenham, VIC, 3192.

3 Cost of Advice At Cloud Financial Planning we do not offer different service packages. Our pricing system is based on the number of hours it takes for us to complete the work you engage us to do. These costs comprise of an upfront Statement of Advice fee, an Implementation Fee and an Ongoing Service fee. We rebate all commissions where payable and do not receive any sales bonuses from any financial institutions. Statement of Advice fee The next step in the advice process is the preparation of a Statement of Advice. Please note that these fees do not include fees charged for other professional services such as accountants, mortgage brokers and solicitors. Implementation Fee Ongoing Service fee The cost to complete a holistic Statement of Advice will be $1,320 and will incorporate strategies 1 to 9 as outlined above. The cost to implement any recommendations as outlined in the Statement of Advice will be $660. Based on the financial strategies and investments you are likely to hold within your portfolio we estimate the time to manage your financial affairs on an ongoing basis will be as follows: The cost to manage your financial affairs on an ongoing basis will be $90 per month ($1,080 per annum). For ongoing service members this fee is all inclusive and you are never charged any amount in addition to this fee unless you require more than 1 Statement of Advice each year or require excessive use of our services. Our fee for the delivery of ongoing advice will be disclosed again in the Statement of Advice. This fee can be directly debited from a nominated bank account and in this instance will be tax deductible. For example if your current marginal tax rate was 46.5% you could expect to receive a tax deduction of $502 per annum bringing the real cost for ongoing service down to approximately $578 per annum. You may also have the option of electing for this fee to be deducted from an investment product, such as your superannuation. In this instance the fee is tax deductible within the fund and not personally. This amount is payable monthly upon acceptance of our Ongoing Service Agreement which will be provided to you in the Statement of Advice. The ongoing advice fees are renewed each year at your Annual Planning Meeting. Your fees may increase by CPI or vary if significant changes to your advice needs are required. The ongoing service fee is optional. If you decide not to opt in for ongoing service and choose to see us on a discretionary basis then you will likely incur a Statement of Advice fee for each appointment necessary. This fee is likely to be much higher compared to the fee for ongoing service. Shaun Liddicoat and Cloud Financial Planning Pty Ltd, ACN , are Authorised Representatives of Dover Financial Advisers Pty Ltd, ABN , an Australian Financial Services Licensee with its registered office at 71 Tulip Street, Cheltenham, VIC, 3192.

4 Variations In the event that Cloud Financial Planning identifies a variation (increase or decrease in the fee estimate) due to unforeseen circumstances we will inform you of the fee variation before it is incurred by you. It is rare that variations occur, however when issues of greater complexity arise this can lead to periods of extended research and strategy development that impact the cost of advice. Cancellation If services are cancelled by either party then notice is to be given as soon as practicable and a fair and reasonable assessment will be made for fees due for work carried out up to the date of cancellation. Acceptance To proceed with the above please read and sign the Authority to Prepare a Statement of Advice document. Once completed please return this to our office at which time we will commence preparing the Statement of Advice. If you have any questions or concerns then please do not hesitate to contact me on or admin@cloud Financial Planning.com.au. Kind regards, Shaun Liddicoat B.Fin, B.Sc, ADFS(FP) Principal Adviser Authorised Representative Shaun Liddicoat and Cloud Financial Planning Pty Ltd, ACN , are Authorised Representatives of Dover Financial Advisers Pty Ltd, ABN , an Australian Financial Services Licensee with its registered office at 71 Tulip Street, Cheltenham, VIC, 3192.

5 Authority to Prepare a Statement of Advice Personal Information provided I/we will ensure the information provided to my adviser is accurate and to the best of my/our knowledge (except where I/we have indicated that I/we have chosen not to provide the information). I/We understand and acknowledge that by either not fully disclosing my personal details, any recommendation or advice given by the adviser in these circumstances may be inappropriate to my/our needs and that I/we risk making a financial commitment to a financial product that may be inappropriate for the needs identified. Financial Services Guide I/We have read and understood the Financial Services Guide version 6.0 prior to obtaining financial planning services and/or recommendations. Authority for current Adviser I/We authorise the elected employees of Cloud Financial Planning to contact any of my/our existing advisers whose details I/we have provided. Statement of Advice Related Documents Consent Where required, you will be provided with a Statement of Advice confirming in writing the advice provided to you. Your initial and all future Statements of Advice will refer to various Understanding Series documents that set out general information about investment fundamentals such as risk, return and diversification (if applicable) and the benefits, costs and risks associated with various strategies recommended to you. Receipt of Documents(s) referred to in Statements of Advice I confirm that: I consent to receiving Documents referred to in Statements of Advice being made available to me electronically via the Cloud Financial Planning web site or CD. In consenting, I acknowledge that: (i) (ii) OR I am able to access the Documents electronically; and If I wish to obtain a printed copy of the Documents I can contact my financial adviser who will provide these documents to me at no cost. I wish to obtain the Documents referred to in Statements of Advice in printed form. Information and Privacy Agreement I/We agree that: 1. Subject to the authorisation of the preparation of a Statement of Advice, I am/we are to receive the following services from Cloud Financial Planning and understand that my/our personal information (including any sensitive information such as health information and membership of professional organisations [ sensitive information ]) is being collected primarily for these purposes: superannuation & retirement planning estate planning investment planning & managed investment schemes budgeting life, trauma insurance and income protection insurance

6 direct equities & instalment warrants gearing, banking including credit and debit products arranging for the acquisition and disposal of all relevant products of the type described above; and an ongoing review service for my/our investment portfolio or life insurance program. Your adviser will only provide you with advice that your adviser is permitted to offer you. 2. I/We also consent to the disclosure of my/our personal information (including my/our sensitive information): to organisations involved in providing my/our adviser with marketing services and to their service providers (for example posting services), so that my/our adviser may offer me/us products and services that might meet my/our financial needs; and to other organisations in connection with the sale or proposed sale of all or part of the adviser s business and to the use of that personal information by those organisations for those purposes. 3. I/We also consent to the collection of my/our personal information for the purpose of my/our adviser providing the services stated above. This consent also relates to my/our sensitive information. 4. If I/we have provided personal information about an individual (such as a partner, dependant, employer, or accountant) I/we have or will as soon as practicable, provide the individual with a copy of the Privacy Notification Statement (PNS) that was provided to me/us with the Financial Services Guide and made them aware that the PNS applies to their personal information that has been collected for the purpose of my adviser providing me/us with the financial advice I/we have requested. 5. If I/we have provided sensitive information about someone else, I/we have or will obtain the consent of that person to that information being collected by my/our adviser and my/our adviser s service providers. 6. I consent to the release of my personal information (including my sensitive information) to my spouse or partner. Delete any item or consent in paragraphs 1 to 6 above which you do not agree with. Signature Date / / Name Signature Date / / Name Adviser Signature Date / / Adviser Name Shaun Liddicoat

7 Information Release Form To Whom It May Concern, I, of Date of birth authorise that all relevant information about my investments, insurances, superannuation, bank accounts and/or other financial information be released, upon request, to: Adviser* Name: Including the following adviser s staff: Adviser s address and contact details: Please accept a photocopy, facsimile or electronic copy of this form as my authority. The original signed form will be held on file at the adviser s address above. Client s Signature: Date: * The adviser named above will only send this form to those institutions disclosed by the client and the information provided by those institutions will only be used for the preparation of financial planning services for the aforementioned client.

8 Information Release Form To Whom It May Concern, I, of Date of birth authorise that all relevant information about my investments, insurances, superannuation, bank accounts and/or other financial information be released, upon request, to: Adviser* Name: Including the following adviser s staff: Adviser s address and contact details: Please accept a photocopy, facsimile or electronic copy of this form as my authority. The original signed form will be held on file at the adviser s address above. Client s Signature: Date: * The adviser named above will only send this form to those institutions disclosed by the client and the information provided by those institutions will only be used for the preparation of financial planning services for the aforementioned client.