Financial Services Guide and Fact Finder

Transcription

1 Financial Services Guide and Fact Finder July Tulip Street, Cheltenham, VIC 3192 PO Box 68, Sandringham, VIC Tel Fax This document has been prepared for clients of McMasters. It contains important information about the service we provide our clients. McMasters (VIC) Pty Ltd ABN Corporate Authorised Representative No of Dover Financial Advisers Pty Ltd ABN AFSL Tulip Street Cheltenham Victoria. This document explains our philosophy, our method and our fees. Please contact us on (03) if any aspect of this document is unclear.

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3 Introduction The purpose of this Financial Services Guide FSG This FSG is an important document for McMasters (VIC) Pty Ltd clients. It explains how McMasters and Dover Financial Advisers ( Dover ) provide services to you. You should read this FSG before using our services. Much of the content of this FSG is dictated by the Corporations Act and is mandatory under that law, so please bear with us and also feel free to contact us by telephone, or writing at any time should this FSG be unclear, should you wish to access further information or should you have any concerns about our services. This FSG explains: 1. who McMasters and Dover are; 2. how you can contact us; 3. what documents you will receive from us; 4. the financial services we provide; 5. the relationship between McMasters and Dover; 6. any potential conflicts of interest (we hope there aren t any); 7. our privacy policy; 8. our internal dispute resolution procedures; 9. our external dispute resolution procedures; and 10. our compensation arrangements, ie our professional indemnity insurance arrangements. Dover has authorized the creation and distribution of this FSG by McMasters. About McMasters (VIC) Pty Ltd, McMasters and Dover McMasters (VIC) Pty Ltd ( McMasters ) is part of McMasters Accountants, Solicitors and Financial Planners which through its member firms provide legal, accounting and financial planning services to medical and dental professionals. McMasters (VIC) Pty Ltd is an authorized representative of Dover and Dover is McMasters (VIC) Pty Ltd Australian Financial Services Licensor ( AFSL ). Dover has the same ownership as McMasters (VIC) Pty Ltd and shares McMasters office facilities and staff. Dover licences McMasters (VIC) Pty Ltd to provide financial product advice. Dover is responsible for all financial product advice provided by McMasters (VIC) Pty Ltd but not for any accounting services provided by McMasters (VIC) Pty Ltd. Legal services are provided by McMasters Solicitors Pty Ltd to which Terry McMasters is a Principal. Dover s AFSL licence You can view Dover s AFSL licence on the ASIC website here: Dover s AFSL This licence sets out the financial services that Dover is licensed to provide including deposit products, government bonds and similar investments, life insurance products, managed investment schemes including investor directed portfolio services, retirement savings accounts, securities, margin lending and superannuation. PAGE 1

4 Learn more about McMasters and Dover You can learn more about McMasters at and You can learn more about Dover at McMasters (VIC) Pty Ltd approach to financial planning Our approach to financial management is designed to show clients how to: 1 maximize the amount of income they create; 2 legitimately optimize the tax treatment of that income, to maximize after-tax income and the amount available for living and investing; 3 maximize the level of investment wealth that they create, staying in control at all times and avoiding commissions, middlemen and other wealth reducers; and 4 manage that wealth so that it continues to grow in the most tax advantaged and assetprotected manner available. SMSFs and self-managed investments feature prominently in our advice, along with a strong emphasis on income tax efficiency and diversification into direct shares and, in particular, direct property holdings. Annual planning meetings All new clients receive a statement of advice with step-by-step instructions and implementation assistance, and is assigned a manager who is responsible for making sure everything happens as planned. Thereafter you meet with a director and your manager each year to review your financial profile and to make sure you are doing everything possible to improve your position. Statements of Advice The SOA will be in writing and may be delivered via or via the post, as you prefer. Your SOA contains the information needed to understand our advice and the basis on which it is made. Each statement of advice may cover: 1. ownership and management of your practice whether you own your own practice, are contracting at another practice, or are an employee in someone else's practice; 2. taxation planning; 3. investment strategies; 4. superannuation planning particularly related to industry super funds and SMSFs; 5. asset protection; 6. wills and estate planning; and 7. any other issues relevant to your financial profile. We will also provide other documents as needed. These documents may include educational material or PDSs, as discussed above. Records of Advice Once you have been provided with a SOA further advice may be provided in a form known as a record of advice or ROA, provided there has been no change in your relevant personal circumstances or the basis of the advice set out in the SOA. PAGE 2

5 Retention of SOA and ROA We will retain all SOAs and ROAs for at least seven years and you may request a copy of the SOA or ROA at any time within that period. Product disclosure statements PDS McMasters recommends clients do not invest in managed funds other than Vanguard index funds. Vanguard does not pay commissions. McMasters recommends clients use industry super funds, particularly HESTA and Health Super and self-managed super funds. Neither of these funds pays commissions. Whenever such a financial product is recommended a PDS must be provided. The HESTA PDS is provided here: HESTA Product Disclosure Statement. The Health Super PDS is provided here: Health Super Product Disclosure Statement. The McMasters SMSF PDS is provided here: The McMasters' SMSF PDS. McMasters occasionally recommends index funds run by the Vanguard group and the Vanguard PDSs are provided here: Vanguard PDSs. The purpose of a PDS is to provide you with the information you need to understand the financial product and to make an informed decision about the product, and is usually created by the institution providing the product. The costs connected to the product will be stated in the PDS. All financial products, including these financial products, contain risks. These risks are described in the PDSs and will be discussed in all meeting with clients. Please contact us immediately if you need more information regarding these risks. If we recommend other financial product a PDS for that product will be provided to you at that time. Structural financial planning The Corporations Law requires McMasters (VIC) Pty Ltd to have a reasonable basis for all advice provided to clients. This requires us to ascertain your individual financial circumstances, and this is usually done by meeting with you and discussing your specific circumstances, and obtaining a completed fact finder document and perusing your accounts and income tax returns. McMasters (VIC) Pty Ltd assumes clients are conservative and risk averse at all times. If you believe you are not conservative and risk averse you should advise us of this in writing before the initial meeting or as soon as possible thereafter. We never retain a commission McMasters (VIC) Pty Ltd does not retain any permitted commissions from third parties. This includes all initial commissions, trail or service commissions and similar payments. We do our best to avoid commissions but when they must be encountered we pass them on to you under our Commission Rebate Scheme, as explained below. PAGE 3

6 McMasters (VIC) Pty Ltd s Commission Rebate Scheme ( CRS ) Sometimes commissions are unavoidable. Life insurance and income continuance insurance are examples of this. We rebate all commissions, including initial commissions and trailer commissions. A handling fee of $160 plus GST per rebate is charged to clients who have one policy and $100 plus GST for subsequent policies. The Commission Rebate Scheme means cheap insurances for our clients, particularly in the first year when the commission rebate is usually more than the premium paid. Commissions on risk insurances can be as high as 120% of your annual premium in the first year and 20% of your subsequent annual premiums. You can learn more about our CRS here: McMasters' Commission Rebate Scheme. Any un-allocatable commissions will be paid to the Sumba Foundation Australia, a charity helping poor people on the island of Sumba in Indonesia. You can always ask for more information about payment arrangements, including information about the range of amounts or rates of remuneration from us. Accounting and taxation services McMasters (VIC) Pty Ltd also provides the full range of accounting and taxation services to our clients. McMasters (VIC) Pty Ltd does not provide taxation advice to clients in its capacity as a financial planner and an authorized representative. McMasters (VIC) Pty Ltd provides taxation advice to clients in its capacity as a registered taxation agent. Terry McMaster may also provide taxation advice to clients in his capacity as a solicitor of McMasters Solicitors Pty Ltd. Fees for initial meetings and Statements of Advice Each new client meets with a director or associate director and receives a written statement of advice setting out what they can do to improve their financial position. The length and content of these statements of advice differs from client to client, and they draw heavily on the extensive materials and resources from and The fee for these meetings and statement of advice is up to $1,000 plus GST. Fees for implementing advice There are no fees connected to financial products except for time spent arranging risk insurance policies. These may cost up to $960 + GST per policy. Any commissions connected to these policies are received on trust for you and rebated to you under the Commission Rebate Scheme, the details of which are provided above. PAGE 4

7 Implementing our advice may involve our accounting staff and McMasters Solicitors Pty Ltd lawyers. Fees for such work will be charged on a time spent basis for this work. These extra charges will be set out in your SOA and may include: 1. setting up a company, SMSF or trust; 2. setting up a life insurance or similar insurance policy; 3. estate planning fees, i.e. wills, powers of attorney and related costs; or 4. stamp duties and similar transaction costs property purchases, etc.; 5. the cost of time spent implementing the financial plan. Typical costs include $1,800 to set up a company and trust, $500 to set up a SMSF, $375 payable to McMasters Solicitors for a will creating a testamentary trust and $200 for accounting services connected to obtaining tax file numbers, Australian Business Numbers and similar registrations. The PDSs provided to you for Health Super, HESTA and Vanguard set out the fees charged by each of these institutions. Fees for ongoing accounting and consulting services Some clients pay on-going accounting fees on a time spent basis, with the expected cost advised in writing before any significant work, such as the annual accounts and tax returns, is done. Other clients pay a fixed annual fee in equal monthly instalments. In both cases costs are agreed in writing with clients in a form that complies with the ethical requirements of the Institute of Public Accountants. Fees for legal services Legal services are provided by McMasters Solicitors Pty Ltd who are part of McMasters Legal services are charged on a time spent basis, with some fixed fees for specific legal tasks, such as preparing a will or a trust deed. Costs are agreed in writing with clients in a form that complies with the ethical and professional conduct rules of the Law Institute of Victoria and Legal Profession Act Referrals McMasters (VIC) Pty Ltd does not pay any third parties for referring clients to it. McMasters (VIC) Pty Ltd may refer work to practice groups within McMasters. For example legal work may be referred to McMasters Solicitors Pty Ltd. Adviser incentives McMasters (Vic) Pty Ltd does not receive any direct adviser incentives but may be given non-cash benefits from product providers. These may result in a potential conflict of interest, however we adhere to our obligations to ensure the advice is in your best interest and not in our interest. They are not additional charges to you and are paid out of the fund manager or platform provider s own resources. They include training assistance and resources, marketing allowance or tickets to entertainment events. They PAGE 5

8 are sometimes given because of the amount of product placed with that provider. Other times the benefits are purely discretionary on the part of the product provider. Relationships which might influence Dover or McMasters (Vic) Pty Ltd in providing financial services There are no relationships that might influence Dover or McMasters (Vic) Pty Ltd in providing financial services to you. Anti-money laundering and counter terrorism legislation Dover must verify your identity before we provide any financial services. This will be discussed at our meeting. A word of warning on risk All investments have risks. Risk means the value of an investment may fall, or even disappear. McMasters (Vic) Pty Ltd assumes its clients are conservative investors unless the client specifically states otherwise. If a client states otherwise the statement will only be accepted if a reasonable financial planner would assess the client as being otherwise, having regard to income, wealth, age, work experience or academic training. McMasters (Vic) Pty Ltd adopts this conservative assumption to reduce your risk. McMasters (Vic) Pty Ltd does not recommend investments that have significant internal gearing, or that clients borrow significant amounts to acquire investments. This is unless the client understands that these significantly increase the risk that their net equity will fall, or even disappear, if the value of the investment falls. Clients should not acquire investments other than those suited to conservative investors unless they understand and accept the risk that their equity will fall, or even disappear, if the value of the investment falls. Privacy considerations Your information is private and confidential and is not disclosed to any third parties unless required to do so under the law. We comply with the National Privacy Principles and these principles are explained here: National Privacy Principles. If you are not satisfied with our approach to privacy you are entitled to contact the Office of the Privacy Commissioner who may investigate any complaints you may make. McMasters (VIC) Pty Ltd employees McMasters employees are paid salaries. This does not affect our advice to you in any way. Getting Started with us: the first meeting We ask you complete the fact finder attached to this FSG before our meeting, and let us know in writing of any issues that may be of particular concern. This gives us the opportunity to review your information and prepare ourselves for our initial meeting with you. PAGE 6

9 Our head office is in Cheltenham, Melbourne. We make extensive use of Skype and teleconference facilities with interstate clients and clients who have trouble getting to our office. Dispute resolution If you have a complaint about our service you should contact us on (03) to explain your complaint and we will do our best to resolve it quickly and efficiently. If this does not resolve your complaint you should write (or ) setting out the full details of your complaint so we can consider the complaint in more detail and do our best to resolve it and meet your service expectations. Written complaints should be addressed to: Dover Compliance Dover Financial Advisers 71 Tulip Street Cheltenham Victoria 3192 If your complaint is still not resolved, you can access our external dispute resolution scheme. Dover is a member of the Financial Ombudsman Service (FOS). FOS can be contacted on This is a free service to complainants. Compensation arrangements Dover operates a compensation arrangement to compensate retail clients for losses connected to any breach of the Corporations Act by McMasters or Dover. Dover has comprehensive and extensive professional indemnity insurance. This insurance covers claims in relation to the conduct of former employees. PAGE 7

10 MCMASTERS ACCOUNTING AND FINANCIAL PLANNING CLIENT QUESTIONNAIRE Please take the time to complete this document as thoroughly as possible. We use this information to develop our advice to you. If any part of the questionnaire is not applicable, please write N/A in the space provided. Please also feel free to attach any extra documents that you feel are relevant. Completed forms can be sent to us via the following media: Fax: (03) ; Post: McMasters VIC Pty Ltd 71 Tulip St Cheltenham Vic 3192 Section A: Personal Details Name (1): DOB: / / Name (2): DOB: / / Home Address: Business Address: Postal Address: Telephone/Fax: Marital Status: (please circle) P/C: P/C: P/C: (a/h) (b/h) (mob) (fax) Single / Married / Co-Habiting / Separated Children: DOB: / / DOB: / / DOB: / / DOB: / / DOB: / / PAGE 8

11 Section B: Goals & Objectives Please describe what you want to achieve from using our services. (For example, you may be concerned about paying off a home loan or that your tax bill is too high). Listing your short term, medium term and long term goals and objectives will help us tailor our advice to your specific circumstances. Short term goals & objectives (next 2 years): Medium term goals & objectives (next 2-7 years): Long term goals & objectives (next 7+ years): PAGE 9

12 Section C: Work Details Please describe your occupation: Client 1 Client 2 Employee Client 1 Are you an employee? (For example, hospital employee) Y N If yes, please provide details of employment including annual salary and fringe benefits: Client 2 Are you an employee? (For example, hospital employee) Y N If yes, please provide details of employment including annual salary and fringe benefits: PAGE 10

13 Independent associate / Contractor Client 1 Are you an independent associate / contractor? (For example, a GP who works in a practice and pays it a service fee equal to a % of billings) Y N If yes, do you earn your income as: Sole trader Y N Company Y N Trust Y N Please provide details of the arrangement including service fee %, annual billings and a copy of any written contract and most recent tax returns and financial statements: Client 2 Are you an independent associate / contractor? (For example, a GP who works in a practice and pays it a service fee equal to a percentage of billings) Y N If yes, do you earn your income as: Sole trader Y N Company Y N Trust Y N Please provide details of the arrangement including service fee %, annual billings and a copy of any written contract and most recent tax returns and financial statements: PAGE 11

14 Practice Owner / Partner Are you a sole owner or part owner in a practice? Client 1 Y N Client 2 Y N If yes, please provide a copy of the practice s current structure diagram (if available) and most recent business and personal tax returns and financial statements for all entities and individuals. If no, please skip to Section D on page 14. Description of Your Practice Please briefly describe your practice: What specialty/practice areas does it cover? What legal form is your practice in now (eg solo practitioner, partnership, associateship etc)? Does your practice use a medical practice company? Y N Or practice trust? Y N How long has your practice been operating? Does your practice use a service trust or company? Y N If yes, please provide details of how services are charged. (For example, a mark-up on costs or a % of billings) PAGE 12

15 How many other doctors, dentists or other health professionals are engaged in the practice? As owners As non-owners How many total sessions / hours per week are worked by: Owners Non-owners Are there any unusual features of your practice compared to other practices in the same speciality/practice area? Do you practice outside of this main practice? (EG, are you employed part time at a public hospital? Do you do occasional sessions in another practice? Do you receive blended payments such as PIP? Plans for Your Practice Where do you see your practice going over the next five years? Do you wish to expand the practice? Y N PAGE 13

16 Do you wish to sell the practice? Y N Do you wish to employ or engage other practitioners? Y N Do you wish to employ or engage other health professionals? Y N Do you aim to increase, maintain or reduce your current working hours? Y N Do you intend to increase your prices more than the inflation rate? Y N Are you concerned about how you can retire from your practice? Y N Are you concerned about the level of administration connected to your practice? Y N How do your prices compare with other similar practices? Are you satisfied that your costs are minimised in the current pattern of practice? Y N Are you aware of any costs that can be reduced without reducing the standard of care that you provide? Y N PAGE 14

17 Section D: Assets and Liabilities Please provide details of your assets and liabilities in the table below and attach latest statements for your superannuation fund/s. Description Owner Original Cost Date of Acquisition Real Estate Your home Investment property Current Value Debt Shares Managed Funds Superannuation Cash Other Assets Other Debts Eg. Credit cards TOTAL Further Information: (For example, rent received from rental properties) PAGE 15

18 Section E: Insurances Please provide details of your current life and income continuance insurances and attach details of policies. Type of Insurance Life insured Held via superfund? Life / TPD Annual Premium Amount of Cover Income continuance Trauma Further Information: (For example, do you feel you are under or over insured?) Are there any medical reasons why you might not be able to increase or change your cover? Client 1 Client 2 PAGE 16

19 Section F Estate Planning and Financial Management Client 1 Do you have a will? Y N Last reviewed: / / Do you have powers of attorney? Y N Last reviewed: / / Do you have a solicitor? Y N Name of solicitor: Address: Telephone: Do you have an accountant? Y N Name of accountants: Address: Telephone: Do you expect to inherit any major assets/cash in the next five years? Do any of your beneficiaries need particular protection in your will? Client 2 Do you have a will? Y N Last reviewed: / / Do you have powers of attorney? Y N Last reviewed: / / Do you have a solicitor? Y N Name of solicitor: Address: Telephone: PAGE 17

20 Do you have an accountant? Y N Name of accountants: Address: Telephone: Do you expect to inherit any major assets/cash in the next five years? Do any of your beneficiaries need particular protection in your will? Section G: Other Information Please let us know of any other information that is relevant to your personal and financial situation. Please feel free to attach additional documentation. PAGE 18

21 Section H: Client declaration Please complete this page before sending the questionnaire to us. The contents of this fact finder represent a true and accurate reflection of my financial circumstances. I understand that this information will be used for the purposes of providing financial and investment advice and ongoing accounting services. My information will not be used for any other purpose unless directed by me. I confirm that I have received a Financial Services Guide from McMasters. In presenting this completed fact finder to McMasters, I am agreeing to commence the fee paying arrangements detailed in that financial services guide. Client 1: / / (please sign) Client 2: / / (please sign) PAGE 19

22 71 Tulip Street, Cheltenham, VIC 3192 PO Box 68, Sandringham, VIC ACN PAGE 20