BDO PRIVATE WEALTH ADVISERS PTY LTD Financial Services Guide. Distinctively different it s how we see you. AFSL No: ABN:

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1 BDO PRIVATE WEALTH ADVISERS PTY LTD Financial Services Guide 1 July 2013 Version Number 8 AFSL No: ABN: Distinctively different it s how we see you

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3 CONTENTS What we do...4 How we can help...5 Providing advice...6 About our Private Wealth Advisers Team...7 Fees and services...8 Our complaints process...10 A dedicated team of experts...12 BDO Private Wealth Advisers Pty Ltd Financial Services Guide 3

4 WHAT WE DO What do we do? Our starting point is How can we best help our clients?. And the answer is very simple - by putting them in control. There are many reasons that people initially come to see us. However, the underlying reason is always the same, people want to know if their finances are on track. People want to establish: Whether they are spending too much If they could spend a little more If they are making sufficient provision to ensure they can afford the retirement lifestyle they want. Assisting clients to engage with their financial situation and see how their financial future is shaping up is the most powerful thing we can do for our clients. It allows them to take control. We know that financial advice isn t really about investments - investments are secondary. Providing financial advice is really about enabling our clients to understand their financial situation, decide what type of life they would like to lead and developing strategies in consultation with them to make that happen. When we can show our clients that, in fact, they can do more than they had hoped then we know that we have made a difference. BDO Private Wealth Advisers Pty Ltd Financial Services Guide 4

5 ADVICE Providing financial advice is really about enabling our clients to understand their financial situation, decide what type of life they would like to lead and developing strategies in consultation with them to make that happen. HOW WE CAN HELP How can we help? By giving meaning to our client s financial situation we can allow them to engage with their finances and take control of them. Putting our clients in control of their financial situation means that they can get on with living the life that they want to lead. In order to help our clients, we need to understand where they are at and what drives them. We believe that there is very little in people s lives that exists in isolation. This means that where people choose to take their holidays, how they would like to educate their children and what plans they have for their estate are just as important to us as their income, expenditure and savings. Once we collect all of this information, we put it into a discussion paper and start to give it some meaning. Often the discussion paper is the first time a client will have seen their entire position all in one place. The paper is a valuable tool as it can show what all the numbers mean in terms of lifestyle. Some situations that people find themselves include: You know, you are going to have your debts paid off in five years. What would you like to do after that? Even with the savings that you have right now, you can afford an income of $XYZ in retirement. You could look at retiring early or spending some more money, if you would like. The insurances you have at the moment would provide an income of $100,000 a year but you are spending around $250,000 per year. How do you feel about the impact this would have if you were unable to work? The purpose of the discussion paper is to allow clients to have a greater understanding of their financial position. With this data they are able to have an in-depth and detailed discussion about their financial situation and make some definite choices about the kind of life they would like to lead. Once they have considered the discussion paper and had a chance to talk about what it means, they may come back to us with a new set of circumstances that they would like to provide for. This is great because it means that, armed with the knowledge of what they are capable of, they can choose what they would like to do. We can assist clients in gaining more certainty around their lifestyle goals and with this, peace of mind soon follows. BDO Private Wealth Advisers Pty Ltd Financial Services Guide 5

6 RELATIONSHIPS No matter what their stage of life, we are committed to forging a long-term, values-based relationship with our clients. PROVIDING ADVICE Whenever we provide any advice to our clients, they are entitled to receive a Statement of Advice which takes into account their 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. In the event that we make a recommendation to acquire a particular financial product (other than securities), we will also provide our clients with a Product Disclosure Statement which contains information about the particular product. This will enable them to make an informed decision in relation to the acquisition of that product. We will explain to our clients any significant risks associated with the financial products and strategies that we recommend. If our advisers provide further advice to you, and we do not give that further advice in writing, you may request a copy of the record of that advice at anytime up to seven years from the date our representative gave the further advice to you. You can request the record of advice by contacting the adviser or us in writing, by phone or by . We can provide the following services: Wealth creation Wealth protection Retirement planning Superannuation needs Centrelink benefits Estate planning Salary packaging. We are licensed to provide advice on, and deal in, the following products to retail and wholesale clients: Deposit products Government debentures, stocks and bonds Life insurance investment products Life insurance risk products Managed investment schemes, including investor directed portfolio services Retirement savings account products Securities Superannuation Basic margin lending. We will explain any significant rules that are associated with the product or strategies recommended by us. BDO Private Wealth Advisers Pty Ltd Financial Services Guide 6

7 ABOUT OUR PRIVATE WEALTH ADVISERS TEAM Who is my Wealth Adviser? A financial planner must have more than excellent qualifications to join our team. We seek out people who are willing to dig a little deeper and discover the things that are keeping our clients awake at night and who are then willing to go the extra mile to help them resolve those issues. We believe that any client of BDO Private Wealth Advisers is a client of the whole organisation, not just one adviser. We always want our clients to be able to access our help. If your adviser is unavailable and if you wish to speak with another adviser, someone else will be available to help you. Our advisers are employees of BDO Private Wealth Advisers. Information about your individual Wealth Adviser is available in the Adviser Profile section of this guide. All of our advisers are salaried by BDO Private Wealth Advisers and may be entitled to bonus payments based on the income they generate. About us BDO Private Wealth Advisers have been in business since We hold our own license and are responsible for the advice given by our advisers. We are not owned by or affiliated with a bank or a product provider. We have no obligation to sell products and are free to conduct our business in the way we think is best. We believe it is key to act in our clients interests, to try and see things from their point of view and to offer whole of life advice. Guiding values We believe that reliability, communication and understanding are the keys to a successful relationship. They are our guiding values and we endeavour to demonstrate them in every area of our business. This Financial Services Guide This Financial Services Guide is designed to help you decide whether we are the right advisers for you. It will provide you with all the information you should know about us including who we are, the services we provide, our fees and charges and our dispute resolution process. We hope that you find it helpful and that it answers all of your questions. However, if you have any further queries, please call us on BDO Private Wealth Advisers Pty Ltd Financial Services Guide 7

8 FEES AND SERVICES How are we paid for the services we provide? Strategy Development Fee BDO Private Wealth Advisers charge on a fee for time basis, meaning that the cost will vary, depending on the complexity of preparing a discussion paper on strategy. An outline of the cost of the strategy being developed is provided to clients prior to their acceptance. Advice Implementation Fee If a client proceeds with specific advice resulting from the Strategy Development, an outline of the fee is provided prior to us proceeding with the advice. The fee will cover the specific advice and any implementation of investments or insurances that may apply. Payment will generally be by invoice. Ongoing Review Fee We also provide a comprehensive ongoing review service. The fee can vary depending on the chosen level of ongoing service. The maximum charge for this service is 0.88 per cent per year (e.g. the ongoing service fee on a portfolio valued at $100,000 would be $880 per year). Annual Fee Disclosure If you have an ongoing review service arrangement with us, you will be sent a Fee Disclosure Statement (FDS) annually. The FDS notes the services you were entitled to receive, the services you actually received and the fees you paid for those services in the previous 12 months. An ongoing review service arrangement is an arrangement under which you are charged an ongoing fee during a period of more than 12 months for personal advice (but does not include commissions paid to us). If you are a new client and you have entered into an ongoing review service arrangement with us, you will also be sent an opt-in renewal notice every two years. This will contain information about how you can elect to renew the ongoing fee arrangement or, if you do not elect to do so, when the arrangement will end. Commissions Although we are working towards being entirely fee based, the fact remains that we are currently unable to avoid commission payments from some product providers. At the time of writing, only four per cent of our business is commission based. 1. Although BDO Private Wealth Advisers does not sell retail products a client will occasionally ask us to manage their existing retail investment (which often pay an ongoing commission). The commission varies, depending on the product and manager, and is calculated at a maximum rate of 0.6 per cent of the account balance. This commission is usually paid monthly. 2. Where a life insurance company product has been recommended the issuer of the product will pay BDO Private Wealth Advisers a commission. This commission, which varies depending on the product, can be up to per cent of the first years premium (eg for a $1,000 risk premium, the maximum brokerage would be $1,225). BDO Private Wealth Advisers Pty Ltd Financial Services Guide 8

9 VALUES We believe that reliability, communication and understanding are the keys to a successful relationship. They are our guiding values and we endeavour to demonstrate them in every area of our business. There may also be an ongoing commission. This commission, which can vary depending on the product, can be a maximum of 35 per cent of renewal premiums (e.g. for a $1,000 risk insurance renewal premiums, the maximum ongoing brokerage could be $350). 3. When clients have been referred to BDO Private Wealth Advisers by another party, BDO Private Wealth Advisers may pay that party a fee of up to 20 per cent of fees generated, depending on the individual agreement with that party. 4. The exact amounts of any fees, commissions, bonuses or other incentives received by BDO Private Wealth Advisers will be included in the Statement of Advice provided to you. What other benefits do BDO Private Wealth Advisers and my financial adviser receive from product providers? BDO Private Wealth Advisers receives support from fund managers to assist with the provision of financial and marketing services, invitations to industry seminar presentations and conference registration fees. The maximum value of any such benefit is $300. Where any such relationship or association exists with a fund manager, and we recommend a client invest in a product issued by them, we will fully explain the details of any benefit we may be entitled to receive. This information will also be included in the written Statement of Advice we provide. BDO Private Wealth Advisers receive a marketing allowance from MLC. This marketing allowance is currently 25 per cent of any administration fee charged to clients by MLC Navigator and is not an additional charge to the client. As an example, for an investment of $500,000, this would result in a marketing allowance paid to us of $900 per annum. BDO Private Wealth Advisers have a Revenue Share Agreement with BT for business placed with BT Wrap. We do not currently receive anything through this agreement, however in the future we may receive up to 30 per cent of any administration fee charged to clients by BT Wrap and would not be an additional charge to the client. As an example, for an investment of $500,000 this may result in a revenue share being paid to us of $900 per annum. At no time do any of our advisers receive direct remuneration from any fund manager. Our clients can provide us with instructions and tell us how they wish to instruct us to buy or sell financial products You may specify how you would like to give us instructions (for example by fax or written original advice). It should be noted that financial product issuers may also require written instructions in order to act on your instructions. BDO Private Wealth Advisers Pty Ltd Financial Services Guide 9

10 SOLUTIONS Our objective is to deliver high quality tailored wealth management solutions and advice, to help our clients meet their financial and lifestyle goals. OUR COMPLAINTS PROCESS If a client has a complaint about the service we have provided, they should take the following steps: 1. Contact their Wealth Adviser to discuss the complaint. 2. If the complaint has not been resolved within three working days, contact Trevor Bridger, Managing Director, BDO Private Wealth Advisers Pty Ltd on (07) or put the complaint in writing and send it to GPO Box 860, Brisbane, Qld, We will endeavour to resolve the complaint quickly and fairly. 3. If we are unable to reach a satisfactory resolution, the client has the right to contact the Financial Ombudsman Service (FOS). They can be contacted on This service is provided free of charge. 4. The Australian Securities and Investments Commission (ASIC) also has a free information line on which clients may use to make a complaint or to obtain information about their rights. 5. If the client concerns involve ethical conduct they may wish to consider raising their concerns in writing with the Financial Planning Association of Australia. They can be contacted at: PO Box 109 Collins Street West Melbourne Vic 8007 BDO has in place Professional Indemnity Insurance that meets the Corporations Act and ASIC s requirements and covers present and past advisers. BDO Private Wealth Advisers Pty Ltd Financial Services Guide 10

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12 A DEDICATED TEAM OF EXPERTS Trevor Bridger Managing Director trevor.bridger@bdo.com.au Trevor has worked in the Financial Services Industry for 24 years and has been Managing Director of BDO Private Wealth Advisers Pty Ltd since Trevor has substantial experience in providing personal financial advice to clients who are executives and small medium sized business owners. He advises on financial planning matters ranging from marital separations to next generation succession. Trevor also provides expert opinions to major law firms on financial planning matters. Andrew White Director andrew.white@bdo.com.au Andrew has worked in the Financial Services Industry for 24 years and has been with BDO Private Wealth Advisers Pty Ltd for the last 11. He consults to, and serves on, the boards of private and family owned businesses on investment matters. Andrew also sits on an Investment Advisory Committee for a large private school in Brisbane. Andrew also has extensive experience in dealing with professionals, small to medium sized business owners and senior executives including Directors of public companies. As a Director, Andrew s role includes working with Wealth Advisers to develop strategies and provide advice to clients to meet their needs and objectives. Denise Harrison Wealth Adviser denise.harrison@bdo.com.au With more than 20 years experience in the financial services industry, Denise has held several senior roles including Business Development Manager and State Manager for the Australian operation of a global superannuation, pension and insurance provider, and Senior Financial Adviser for a national financial planning firm. Denise believes success is based on working with her clients to navigate through the options available to find the best fit for their individual circumstances and personal views; not using a one size fits all approach. Denise works with her clients to help them understand how they are tracking in relation to their goals so they can secure control and achieve the freedom and peace of mind to enjoy what they have worked for. Guy Taylor Wealth Adviser guy.taylor@bdo.com.au A member of the BDO Private Wealth team since 2007, Guy has worked with a diverse range of clients, ranging from young professionals, small business owners, farmers, professional athletes, corporate executives and medical specialists. Guy s focus is on assisting high net worth individuals and their families maximise their situation. His expertise is in providing personalised strategic advice on wealth creation, debt reduction and retirement planning strategies. This includes investment portfolio construction and management, asset structuring, tax minimisation, Self Managed Superannuation Funds (SMSF), risk management (insurance) and estate planning. Academically, Guy completed a Bachelors Degree in Business Management at QUT in He holds a Diploma and an Advanced Diploma of Financial Planning and has achieved the Certified Financial Planner (CFP ) certification, the highest level of certification that a financial planner can achieve internationally. He is also a Justice of the Peace (Qualified). BDO Private Wealth Advisers Pty Ltd Financial Services Guide 12

13 Sunitha Chamala Associate Wealth Adviser sunitha.chamala@bdo.com.au With a background in both financial planning and accounting, Sunitha brings a well rounded approach to her dealings with clients. Combine this knowledge with a commitment to building strong client relationships and continuous enthusiasm for what she does, and it is no surprise Sunitha is a highly regarded member of the BDO Private Wealth team. Her enthusiasm for getting to know her clients allows her to tailor advice specifically for her clients needs, helping them with not only their financial goals but their lifestyle aspirations as well. Sunitha s strength lies in her ability to present options and solutions to clients in a highly understandable manner, helping them understand where they are at now, their options for the future and how they can achieve their goals and objectives. Jessie Hinds Associate Wealth Adviser jessie.hinds@bdo.com.au Jessie Hinds has worked in the Financial Services Industry since the achievement of a Bachelor of Business in Accounting in Since her completion of her university studies, Jessie has successfully attained both her Diploma and Advanced Diploma of Financial Planning and is a Commissioner for Declarations. Jessie is currently undertaking her Certified Financial Planner (CFP) certification, the highest level of certification that a financial planner can achieve internationally. Her personable approach coupled with her passion for ensuring the best outcomes for people enable Jessie towork collaboratively with clients in obtaining the lifestyle they desire. Through her client focused approach, Jessie can add value by creating tailored advice designed to leave her clients in the best financial situation possible. Michael Ryan Associate Wealth Adviser michael.ryan@bdo.com.au Michael completed a Bachelor of Business (Finance) in 2010 and has worked in the Financial Planning Industry since then. He has since completed both the Diploma and Advanced Diploma of Financial Planning and is now studying towards achieving his Certified Financial Planner (CFP) certificate, the highest qualification available in the industry. Michael is equipped with the technical and personal skills to ensure his clients are on the path to success. He is dedicated to ensuring clients are on track to meet their goals and consistently strives to achieve the best possible outcome. Michael s holistic approach entails an appraisal of the entirety of a client s situation before tailoring advice that will fulfil their personal aspirations. Michael works closely with his clients to provide advice on a range of issues from debt reduction, cash flow management, tax minimisation, investments inside and outside of superannuation, personal insurance and estate planning. Shaun Haden Associate Wealth Adviser shaun.haden@bdo.com.au Shaun commenced work in the Financial Services Industry in 2007 whilst undertaking his Bachelor of Business in Economics and Financial Management. His study continued with the completion of his Advanced Diploma of Financial Planning and currently he is working towards his certification (CFP) the internationally recognised highest level of certification a financial adviser can achieve. Shaun understands that the most valuable service he can provide his clients is an understanding of the things that matter most to them. He knows this is much more than just money. He understands the importance of focusing on the bigger picture and long term goals, while still tailoring advice to meet their short term plans. His ethos is all about working with clients in long-term strategic partnership to unlock the potential of the lives they want to lead. BDO Private Wealth Advisers Pty Ltd Financial Services Guide 13

14 You can contact BDO Private Wealth Advisers by: Calling: (Monday to Friday 8.30am 5.00pm) Visiting our offices at: Level 10, 12 Creek Street Brisbane Qld 4000 Visiting our website: Writing to us at: BDO Private Wealth Advisers GPO Box 860 Brisbane Qld 4001 Sending us an Sending us a fax: BDO Private Wealth Advisers Pty Ltd ABN AFS Licence No is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN , an Australian company limited by guarantee. BDO Private Wealth Advisers Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania. BDO is the brand name for the BDO network and for each of the BDO member firms.