Financial Services Australian Securities and Investment Commission (ASIC) Banking

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1 QRMFN 1. Australian Law & Culture Money and Finance The Australian dollar (AUD), which divides into 100 cents is the national currency. Australia s colourful bank notes come in denominations of 5, 10, 20, 50 and 100 dollars and coins come in denominations of 5, 10, 20 and 50 cents and $1 and $2. Although the smallest coin in circulation is 5c, prices are often still marked in single cents and then rounded to the nearest 5c when you come to pay. Financial Services In Australia, you will find a large range of banking, insurance, superannuation and investment products and services. Financial products and services may only be sold by a business that is licensed by the government. Financial services documents should contain an AFSL number e.g. AFSL Australian Securities and Investment Commission (ASIC) ASIC is Australia s corporate, markets and financial services regulator. ASIC contributes to Australia s economic reputation and wellbeing by ensuring that Australia s financial markets are fair and transparent, supported by confident and informed investors and consumers. ASIC is an independent Commonwealth Government body which is set up under and administered by the Australian Securities and Investments Commission Act (ASIC Act). The Australian Securities and Investments Commission Act 2001 requires ASIC to: Uphold the law uniformly, effectively and quickly Promote confident and informed participation by investors and consumers in the financial system Make information about companies and other bodies available to the public Improve the performance of the financial system and the entities within it. ASIC regulate Australian companies, financial markets, financial services organisations and professionals who deal and advise in investments, superannuation, insurance, deposit taking and credit. Phone: Web: Banking Australian banks and credit unions offer a complete range of financial services. You do not necessarily need to have an account with a bank or credit union to do business with them, although they usually prefer if you do. To set up a new bank account you must go into your local bank branch. You must have at least 100 points of identification. You must have at least one form of photo ID and one form of ID must have your current address on it. Check with your local bank exactly what they require.

2 Setting up an Australian Bank Account from Your Home Country Most Australian banks offer migrant banking services which allow you to set up an Australian bank account from your home country. Below is a list of Australian banks and what services they can offer you. * Westpac To start a Westpac bank account you will need to log on to: You have the option of completing the application form online or you can download the form and fax it back or mail it back. Your account will be opened on a Post Credit Only basis which means that you can deposit funds into the account but will be unable to withdraw the funds or transact on the account until you have been identified in accordance with Australian law. This means you must be identified personally, by the bank, before any withdrawals are permitted on your account. National Australia Bank (NAB) If you are planning to relocate to Australia, the National Australia Bank (NAB) is well equipped to assist you with the financial knowledge you need to help make your arrival as smooth as possible. Their dedicated migrant banking team can help you set up business and personal banking requirements before you touch down in Australia. When you arrive, you will have your own banking manager to help you with your financial needs - whether it s a home loan, credit cards or business banking needs. Web: Commonwealth Bank With all the excitement of moving to a new country, it s good to know there s a hassle-free way to manage your finances. At the Commonwealth Bank, you can set up your bank accounts and transfer funds at a competitive foreign exchange rate - before you even leave home. The Commonwealth Bank International Customer Services (ICS) team is a multi-lingual team dedicated to purely assisting new arrivals. Web: ANZ What they generally do with overseas customers is communicate via and the application form to you. They ask for the form to be posted/faxed back along with a photocopy of your passport. Then an account number is issued and you are able to transfer money into it, however, until you have arrived in the country and been identified in person you are unable to withdraw any funds. Web: *NOTE: This list is by no means exhaustive, but can be used as a starting point to help you determine which bank may best suit your requirements.

3 QRMFN 1. Australian Law & Culture General Banking Information Once you arrive in Australia and officially open your bank account, there are a number of options to choose from when making financial transactions. These include: BPAY, EFTPOS (Electric Funds Transfer at Point of Sale), Internet banking and Phone Banking. Using these services is optional and you are under no obligation to use these methods for making financial transactions. Banks are usually open 9.00am to 4.00pm Monday to Thursday and 9.00am to 5.00pm Friday. In some areas selected banking facilities are available on a Saturday morning. Australian ATM cards can be used in Australia at both ATMs (Automatic Teller Machines) and at participating retail locations (through EFTPOS). ATM machines are open 24 hours a day. If you are using your card from home it will need to be enabled for international access. Your ATM card must carry either the CIRRUS, PLUS or STAR international ATM mark or the Interlink or Maestro POS symbol. You will need to contact your bank at home for information on availability and service charges. Credit Cards The most commonly accepted credit cards are American Express, Bankcard, Diners Club, MasterCard, Visa and their affiliates. Use may be restricted in smaller towns and country areas and small retail shops. Credit Card tips The safest form of card is not a credit card at all, but a debit card which offers all the convenience of paying with plastic. A debit card links to your savings account and debits it to cover the costs of purchases. Some cards can act as both a debit and a credit card. If you still prefer to use a credit card, choose one that is most suitable for your spending patterns. If your using a card for extended credit and don t plan to pay off the balance in full each month, choose a card with a lower interest rate. If you use your card for the convenience of paying for everyday purchases such as food or fuel, use a credit card with maximum interest-free days, and then make sure you pay it off in full each month. To avoid paying interest on your credit purchases you must pay the full outstanding balance on your statement (not just the minimum payment required) by the due date. If you don t, you will be charged interest right back to the date of purchase on each item. Some banks and credit unions offer relationship discounts if you consolidate a range of banking business with the one institution. This usually includes things such as; Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers. Be sure to shop around though because credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are nonprofit organisations.

4 Watch out for ancillary fees and penalties charged for using your credit card. It s not just the annual fee and interest charges you have to worry about but fees for late payment of your monthly statement, exceeding your credit limit, having a periodical payment refused, issuing secondary cards on the same account, replacing a lost card, duplicate statements and making overseas ATM withdrawals. Interest-free periods offered on credit card accounts do NOT apply to cash advances. In most cases, you will pay interest on that cash right from the time you withdraw it. Also, using your credit card to make purchases may incur an additional cost to the purchase price. This is usually around 1-2% of the purchase price and is set by the business you are dealing with, not the institution you have your card with. Travellers Cheques You should cash travellers checks at banks or larger hotels, as it may be difficult elsewhere. Some banks may charge a small fee for cashing travellers checks. Banks will cash most travellers checks in every currency. Most widely accepted are American Express, Thomas Cook, Barclays, Bank of America, Visa and MasterCard. There are also Currency Exchanges located in major tourist locations. Additional Information Banking and Financial Services Ombudsman (BFSO) BFSO is a free and independent dispute resolution service which deals with complaints about financial services providers including banks, foreign exchange dealers, deposit takers, credit providers, mortgage brokers and some insurance and investment providers operating in Australia. Post: GPO Box 3, Melbourne, Victoria 3001 Fax: Web: The Credit Ombudsman Service Limited (COSL) COSL is the external dispute resolution scheme for the non bank credit industry, approved by the Australian Securities and Investments Commission (ASIC). The Credit Ombudsman Service is a free and independent external dispute resolution (EDR) scheme. It provides consumers with an alternative to legal proceedings for resolving disputes with participating Members of the scheme operating in the Credit marketplace. Consumer / Complaint Enquiries Post: PO Box A252, Sydney South, NSW 1235 Phone: or Fax:

5 QRMFN 1. Australian Law & Culture Financial Co-operative Dispute Resolution Scheme The Financial Co-operative Dispute Resolution Scheme (FCDRS) is an external dispute resolution scheme. The FCDRS is designed to provide an effective and independent resolution of disputes between customers and Scheme participants in relation to financial products or services provided. One of the key benefits of the FCDRS is that it provides a means of settling disputes without the need to involve the legal profession, and to avoid the costs associated with any legal action. The Dispute Resolution Scheme is free of charge to the customer who is making an enquiry or wishes to lodge a dispute application. Post: The Ombudsman. FCDRS, PO Box 372 Clayfield Qld ombudsman@fcdrs.org.au Web: Credit Union Dispute Resolution Centre (CUDRC) CUDRC was established in November 1996 to assist participating credit unions and their members resolve complaints in a fair, timely and cost-effective manner. The CUDRC is funded by participating credit unions as part of their ongoing commitment to member services. Fax: info@cudrc.com.au Web: Insurance Insurance is when you pay an amount of money each year to protect you from the risk of losing money if something goes wrong. There are many forms of insurance including: car insurance; home and contents insurance; income protection insurance; and travel insurance, to name a few. There are many institutions that deal with insurance. Your bank is the best place to start your search for insurance. Keep in mind they are not the only institutions who deal with insurance and they may not be the most competitive or appropriate. Have a good look around and way up your options. The Insurance Ombudsman Service The Insurance Ombudsman Service assists in resolving disputes between consumers and participating companies. Post: Insurance Ombudsman Service. PO Box 561, Collins St West Melbourne, VIC 8007 Phone: Fax: ios@insuranceombudsman.com.au Web: Finance Industry Complaints Scheme Limited (FICS) FICS is an external dispute resolution (EDR) scheme that was established to provide free advice and assistance to consumers to help them in resolving complaints relating to members of the financial services industry, including life insurance, pooled superannuation trusts, funds management, financial advice, stock broking, investment advice and sales of financial or investment products. There is no charge to consumers for any service provided by FICS in handling complaints.

6 Post: FICS. PO Box 579, Collins St., West Melbourne Vic 8007 Address: FICS. Level Queen St., Melbourne Vic 3007 Fax: Web: Income Protection Insurance People on a temporary Australian visa can now get life cover while abroad from one insurance firm. AXA Insurance has upgraded its services to include cover for people on the Australian visa (subclass 457), whereby the visa holders can get a two-year income protection policy. AXA Web: AXA Financial Services Phone - Financial Planning: Web: FAN?OpenDocument&brand=AXAFP Income Protection Plan: Product Disclosure Statement OfferDoc_Insurance.pdf Stocks and Shares ASX Limited The Australian Securities Exchange (ASX) helps listed companies raise capital -providing opportunities for investors to build their wealth - enabling buyers and sellers to transact with confidence. ASX spans the markets for corporate control, capital formation and price discovery and functions as an operator, supervisor, central counterparty clearer and payments system facilitator. The diverse domestic and international customer base of the ASX includes issuers of a variety of listed securities, corporates, investment banks, trading banks, fund managers, hedge funds, CTAs, proprietary and retail traders. Web: Useful Websites InfoChoice The InfoChoice website is an Australian independent infomediary in the market place for financial and investment services. CANNEX Australia Find rates & compare best value loans, cards, accounts, insurance.