FINANCIAL SERVICES GUIDE Issued 1 July 2015

Transcription

1 Page 1 of 7 FINANCIAL SERVICES GUIDE Issued 1 July 2015 This Financial Services Guide (FSG) is designed to assist you in determining whether to use any of the services described in this FSG. In particular, how we are paid is detailed on Page 4 and how complaints are handled is detailed on Page 6. Contents Company Profile 1 Your Rights and Obligations 3 Before you receive our Advice 3 When you receive our Advice 5 If you have any concerns about our Services 6 Annexures o Individual Investment Client Schedule of Fees 7 Company Profile Our Firm My Financial Advisor Pty Ltd ( mfa ) is a boutique financial advisory firm based in Brisbane, Australia. Our Firm was founded in 1997 to serve individual and corporate clientele within Australia and the United States of America. mfa is an Australian private company that is wholly owned and controlled by its staff. In its capacity as a principal holder of AFSL No , mfa is responsible for the financial services provided to you - including financial services provided by our representatives. The emphasis of our firm is on the long-term management of clients financial assets, rather than gathering funds and/or premiums. We strictly limit the number and type of clients that we service, employ no sales staff, and pay no inducements to promoters of our services. Our compensation is received in a completely transparent fee structure, and for investment assets administered through our own Portfolio Administration Service ( PAS ) platform, we do not seek compensation from any party other than the client. In the few instances that we are forced to accept payment from an investment provider in order to access the desired product, this amount is credited to our client. Our People mfa has a team of four employees. Nathan Dick and Amber Mina are advisers, and also work together to manage the business. Judy Peard - who retired as an adviser in November 2010, after over 13 years with mfa - assists part-time with ongoing and special projects. Mary Pac joined us in May 2015 on a casual basis as an administrative assistant. Mary is in her final year of studies in financial services and business at university. Our Services At mfa, our mission is to provide appropriately tailored advice that optimizes our clients long-term financial outcomes. We achieve this by providing customised advice with respect to the formulation, implementation and maintenance of longterm financial strategies. We pride ourselves on the intellectual rigour, attention to detail, and high service levels that we apply to each client's evolving long-term financial requirements. We combine this with an emphasis upon efficiency in the day-to-day management of each client's financial affairs, particularly with respect to the bureaucracy inherent in governments and large institutions. With respect to our Corporate Superannuation clients, we also provide the following services as appropriate: Fund member education and assistance, including a companyspecific dedicated website

2 Financial Services Guide Issued 1 July 2015 Page 2 of 7 Policy Committee compliance and functionality Ongoing HR/Payroll assistance Fund Platform Reviews & Tenders Fund Platform Transition Our internally-developed Portfolio Administration System provides individual clients with an up-to-date and convenient online financial reporting service. We are continually broadening its functionality in order to provide the most effective communication and administration tool possible for connecting our firm, our clients and the global financial marketplace. Our Approach For the management of growth investment assets, we focus upon maximizing long-term performance within the risk level that is appropriate for each client. We undertake our own investment research and concentrate upon only a very small number of investment opportunities that satisfy our strict requirements. We do not transact often within client portfolios, given that longterm strategic considerations - both for the client and for investment markets - are usually not subject to frequent alterations. However, when any change is required, we move quickly to reposition the client to the preferred portfolio structure. Typically, we will recommend Investment Managers - rather than direct share purchases - for exposure to equity markets. We seek Investment Managers who have proven track records of significant long-term out-performance and have structured their organizations so that significant long-term out-performance should continue in the future. Alternative - usually higher risk/return - investment opportunities are also considered if appropriate to each client s specific profile. For investment assets in drawdown phase, our primary objective is to fully protect the capital value of these assets. For insurance assets, we seek to tailor the correct policies for each individual s or corporation s overall financial needs - ensuring that the chosen insurance providers have strong reputations and capabilities for ongoing claim payments, as well as providing policies that offer attractive value for money. Our Advantage Our firm s emphasis is upon optimising the performance of our clients financial assets through a continual process of evaluation and review. In pursuing this objective, our firm s business structure and operating strategy shields us from the following structural impediments that plague the financial advisory industry: The provision of financial advice is dominated by groups that are controlled by product providers, thereby creating conflict between the advisers and their clients. Many advisers receive some form of compensation from investment product providers, whether it be salary, one-off or ongoing commissions, other cash payments, or payments in kind (such as paid travel, gifts, or low interest rate loans). Again, these practices conflict with the adviser s independence when making recommendations to the client. The wide use of upfront fees and commission fosters a transaction mentality, rather than the required focus on the achievement of superior longterm investment returns at acceptable risk levels. The ongoing aggregation of the industry reflects the desire of advisory groups to achieve economies of scale from their operations. As firms become larger they tend to become highly dependent upon a committee-based decision process, thereby allowing bureaucratic and political dynamics to stifle independent and creative thinking. The usual result is that opinions are forced to regress to the conventional norm, and consequently, the key client issues of performance and service often recede in importance to the internal objectives of growth and stability.

3 Financial Services Guide Issued 1 July 2015 Page 3 of 7 Your Rights and Obligations You have the right to ask us about our charges, the type of advice we will provide you, and what you can do if you have a complaint about our services. This Financial Services Guide ( FSG ) is intended to inform you of certain basic matters relating to: who we are, how we can be contacted, what services we are authorised to provide to you, how we (and any other relevant parties) are remunerated, details of any potential conflicts of interest, and details of our internal and external dispute resolution procedures, along with how you can access them. You should also be aware that you are entitled to receive a Statement of Advice ( SOA ) whenever we provide you with initial advice, which takes into account your objectives, financial situation and needs. The Statement of Advice will contain the advice, the basis on which it is given and information about fees, commissions and associations which may have influenced the provision of the advice. If our representative provides further advice to you, and that further advice is related to the advice we provided to you in a previous Statement of Advice and we do not give that further advice to you in writing you may request a copy of the record of that further advice at any time up to 7 years from the date our Representative gave the further advice to you. In the event we make a recommendation to acquire a particular financial product (other than securities), 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 in relation to the acquisition of that product. Before you receive our Advice Who are your Advisers and who are they representing when providing a financial service to you? mfa is responsible for the financial services provided to you. Nathan Dick and Amber Mina are authorised to provide advice under the mfa license. Nathan Dick nathan@myfinancialadvisor.com.au As a representative of mfa, Nathan specialises in providing investment and superannuation advice. Prior to founding the practice in 1997, Nathan held executive positions with a number of leading Australian and International companies including CS First Boston and Lauder Investments (manager of the Estee Lauder family wealth). During that time he was active within the areas of mergers and acquisitions, equity research, and funds management. His academic qualifications include a Bachelor of Commerce and a Bachelor of Law from the University of Queensland, and a Master of Business Administration from Columbia University. Nathan is also a Fellow of the Financial Services Institute of Australasia and a Justice of the Peace. Amber Mina amber@myfinancialadvisor.com.au As an Authorised Representative (Number ) of mfa, Amber provides advice to the firm s client base on Corporate and Personal Superannuation, Group Life, as well as Individual and Business Risk matters. Amber also acts as the firm s Client Services and Business Manager. Amber has been working in the industry since 2005, holds a Diploma of Financial Planning from Kaplan Education and is currently undertaking studies towards a Bachelor of Business Management (Accounting) at the Queensland University of Technology.

4 Financial Services Guide Issued 1 July 2015 Page 4 of 7 What kinds of financial services are we authorised to provide and what kinds of products do those services relate to? mfa can provide the following services: Financial Strategies Investment Advice Superannuation and Retirement Advice Risk Management Estate Advice We are licensed to provide advice on and deal in the following products: Deposit products; Non-cash payment products; Government Debentures, Stocks and Bonds; Life Insurance Investment Products; Life Insurance Risk Products; Managed Investment Schemes; Securities; and Superannuation. We can advise you in respect of Securities however we cannot provide a service to buy or sell Securities. We are able to refer you to a stockbroker who will arrange for your purchase or sale of Securities. mfa 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 mfa. If you have any questions about our compensation arrangements please contact our office. Investment Portfolio Review: Do we receive remuneration, commission, fees or other benefits in relation to providing the financial services to you and how is that commission calculated? For individual investment clientele, mfa operates on a fee-for-service basis. Our Schedule of Fees in this regard is annexed to this FSG. Our Representatives and Authorised Representatives may receive a Salary from mfa. Ongoing advisory fees are based upon Funds Under Advice: For clients who have their investment assets administered through mfa s PAS platform, there is no Entry, Exit or Switching Fees into or from any recommended investment. All of your funds are invested on a wholesale basis (which means the management expense rates are approximately 50% less than retail rates). Under wholesale investment, mfa receives neither upfront nor on-going payments from the investment managers that we recommend. Consequently, the only payment mfa receives is from the client. For clients investing their money through a third-party administration platform (such as an Employer Superannuation Fund) Entry Fees, Exit Fees and Switching Fees may be charged to their account. mfa may receive upfront as well as on-going payments from a Financial Services Platform Provider (such as the Trustee of an Employer Superannuation Fund), although mfa receives neither up-front nor on-going payments from the investment managers for investments that we recommend. Internet databases are maintained detailing clients investments recommended by mfa. Portfolios are reviewed on a regular basis, with ongoing client contact as appropriate.

5 Financial Services Guide Issued 1 July 2015 Page 5 of 7 Where a life insurance company product has been recommended the issuer of the product will pay mfa a commission. This commission ranges between 20% and 100% (excluding GST) of your first year s premium. Where a life insurance company product has been recommended the issuer of the product will pay mfa an ongoing commission. This commission which can vary depending on the product is calculated in a range of between 4% and 34%. This commission is paid monthly, quarterly or annually. Our Advisers may be entitled to a bonus from the licensee based upon total income generated by the licensee. The quantum of this bonus is calculated at the end of each financial year. There is no other financial incentive payable to our Advisers by the licensee and we are not aware of any other incentives payable to our Advisers by product issuers. The exact amounts of any fees, commissions, bonuses or other incentives received by us and the licensee will be included in a Statement of Advice that we will provide to you. Do any relationships or associations exist which might influence us in providing you with the financial services? Neither Nathan Dick, Amber Mina, mfa, nor any related corporate entity, have any relationships or association with any product issuer that could be expected to influence us in the provision of the financial services. When you receive our Advice Will we provide you advice, which is suitable to your needs and financial circumstances? Yes, but to do so we need to find out your individual objectives, financial situation and needs before we recommend any financial products or services to you. You have the right not to divulge this information to us, if you do not wish to do so. In that case, we are required to warn you about the possible consequences of us not having your full personal information. You should read the warnings carefully. What should you know about the risks of the financial products or strategies we recommend to you? We will explain to you any significant risks of financial products and strategies which we recommend to you. If we do not do so, you should ask us to explain those risks to you. What information do we maintain in your file and can you examine your file? We maintain a record of your personal profile, which includes details of your objectives, financial situation and needs. We also maintain records of any recommendations made to you. We are committed to implementing and promoting a privacy policy which will ensure the privacy and security of your personal information. Details of our Privacy Policy can be obtained by visiting our website If you wish to examine your file, we ask that you make a request in writing and allow up to fourteen (14) working days for the information to be forwarded. We may charge a fee to cover the cost of verifying the application and locating, retrieving, reviewing and copying any material requested. If the information sought is extensive, we will advise of the likely cost in advance and can help to refine your request if required. Can you provide us with instructions and tell us how you wish to instruct us to buy or sell any financial products? Yes. You may specify how you would like to give us instructions, for example by , fax, or other means.

6 Financial Services Guide Issued 1 July 2015 Page 6 of 7 If you have concerns about our Services Who can you contact if you have a complaint about the provision of the financial services to you? mfa is a member of the Financial Ombudsman Service. If you have any complaint about the service provided to you, you should take the following steps: 1. Contact us and tell us about your complaint. 2. If your complaint is not satisfactorily resolved within 3 days, please contact the Manager of mfa or put your complaint in writing and send it to: GPO Box 1255 Brisbane QLD 4001 We will seek to resolve your complaint quickly and fairly. 3. If the complaint cannot be satisfied to your satisfaction you have the right to complain to the Financial Ombudsman Service (FOS). They can be contacted on , 9am-5pm Melbourne time weekdays. This service is provided to you free of charge. The Australian Securities and Investments Commission (ASIC) also has an Infoline on , which you may use to make a complaint and obtain information about your rights.

7 Financial Services Guide Issued 1 July 2015 Page 7 of 7 Annexure 1. Initial Meeting An introductory meeting is provided at no cost. 2. Financial Plan If the client wishes to proceed after the initial meeting, a Financial Plan will be prepared at a cost of $5,500 (including GST), payable upon its completion and presentation to the client. 3. Ongoing Advice (i) myfinancialadvisor Schedule of Fees for Individual Retirement and Investment Advice As at 1 July 2015 Where the client invests a minimum of $1 million in products recommended by mfa, the following fees apply for the value of these investments: Funds Under Advice (FUA) Up to $250,000 Fees (% p.a. of FUA) 2.20% p.a. $250,001 - $1,000, % p.a. $1,000,000 - $5,000, % p.a. $5,000,000 - $10,000, % p.a. $10,000,000 - $20,000, % p.a. $20,000,000 - $50,000, % p.a. > $50,000, % p.a. mfa receives no payment from investment product providers - the only payment we receive is from the client. This ensures that we remain free from potential conflict when providing investment advice. The above fee structure provides for an on-going evaluation of your portfolio, with comprehensive and timely advice on the ever-changing investment environment. Our fee also includes the supply of a Valuation and Performance Report every month, or more regularly upon request. We are available for investment queries and advice at any time at no additional cost, either to yourself or to your other professional advisers. Our fees are fully tax deductible; thereby reducing the cost of ensuring your financial structure is correctly positioned to meet your longer-term objectives. (ii) In all other cases, ongoing advice is provided at a rate of $550 per hour (including GST). The $5,500 cost of the Financial Plan will be fully rebated against any ongoing fees. All client fees include 10% GST and are calculated and billed monthly in arrears.