Issued By: KVB Kunlun Pty Limited Last Update: 15 January 2015 KVB Kunlun Financial Services Guide www.kvbkunlun.com 1
FINANCIAL SERVICES GUIDE T F G F G important information and is designed to assist you in deciding whether to use a financial product or service offered by us. If there is any aspect of this document that you our KVB Kunlun Pty Ltd representative for an explanation or seek independent professional advice. This Financial Services Guide explains: the services we offer how we operate how we are paid how we deal with customer complaints About KVB Kunlun Pty Ltd KVB K P L KVB K the KVB Financial Group Ltd, a company listed on the Hong Kong Stock Exchange (8077) with operations in Sydney, Melbourne, Auckland and Hong Kong. We pride ourselves on our professional and disciplined approach to financial markets. Our global team of financial specialists are dedicated to providing our clients with access to visionary investment services. Our vision is represented in our name and logo. We use Knowledge and Versatility to Break the barriers of traditional investment services for The KVB Group is led by a number of highly experienced and qualified investment professionals, including the Group Managing Director and Directors for each country in which we are represented and global leaders in the Investment, Technology and Compliance disciplines. Contact Persons Clients who wish to contact or correspond with KVB Kunlun may use the following details: KVB Kunlun Pty Ltd Level 18, Citigroup Centre 2 Park Street Sydney N.S.W.2000 Australia Tel: +61-2-8263-0188 Fax: + 61-2-8263-0189 Email: info@kvbkunlun.com Our Services KVB Kunlun holds an Australian Financial Services License No: 226602 from the Australian Securities and Investments C ASIC At the date of this FSG issue, KVB Kunlun Pty Ltd offers these services in relation to our licence: (A) provide financial product advice for the following classes of financial products a) deposit and payment products limited to: i. basic deposit product; ii. deposit products other than basic deposit products; b) derivatives; c) foreign exchange contracts; d) general insurance products; e) debentures, stocks or bonds issues or proposed to be issued by a government; f) life products including: i. investment life insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds; and ii. life risk insurance products as well as any products issued by a Registered Life Insurance www.kvbkunlun.com 2
Company that are backed by one or more of its statutory funds; g) interests in managed investment schemes including; i. investor directed portfolio services; h) retirement R A products (within the meaning of the Retirement Savings Account Act 1997); i) securities; and j) superannuation; (B) deal in a financial product by a) issuing, applying for, acquiring, varying or disposing of a financial product in respect of the following classes of financial products: i. derivatives; and ii. foreign exchange contracts; and b) applying for, acquiring, varying or disposing of a financial product on behalf of another person in respect of the following classes of products: c) deposit and payment products limited to: i. basic deposit product; ii. deposit products other than basic deposit products; d) derivatives; e) foreign exchange contracts; f) general insurance products; g) debentures, stocks or bonds issues or proposed to be issued by a government; h) life products including: i. investment life insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds; and ii. life risk insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds; i) interests in managed investment schemes including: i. Investor directed portfolio services; j) R A products (within the meaning of the Retirement Savings Account Act 1997); k) securities; and l) superannuation; and (C) make a market for the following financial products: a) foreign exchange contracts; and b) derivatives; to retail and wholesale clients. A IC A F Services L is limited and does not imply approval or endorsement of the business, trading, or solvency of KVB Kunlun, and the ASIC has not approved this FSG document or any other disclosure documents of KVB Kunlun. KVB Kunlun provides General Advice only on Leverage Trading, whereas for Wealth Management services, KVB Kunlun is able to provide both General and Personal Advice. What is general advice? Any advice in Leveraged Trading alone constitutes general advice only. General advice does not take into account your objectives, financial situation, needs or personal circumstances and you should consider the appropriateness of any general advice in this context. www.kvbkunlun.com 3
General advice can include information on or about any KVB Kunlun product or service and the markets in which these products operate. Any information you request about KVB Kunlun products and the markets in which they operate, or information you discuss with a KVB Kunlun employee should only be regarded as general advice. Any discussions with KVB Kunlun employees about any aspect of KVB Kunlun products and services, or their view of markets, both current and future, should not be deemed or regarded as personal advice but as general advice. What is personal advice? Personal advice is advice given to you that takes into account your financial needs and personal objectives. KVB Kunlun and its employees will not give you personal advice on any Leveraged Trading. 1) Leveraged Trading How we operate? We provide clients with the opportunity to deal in derivatives via our KVB Kunlun Leveraged Trading product and our online trading platform. We accept client funds, hold them until we receive a trading instruction, process client trading instructions, provide trade settlement daily Profit & Loss, and deposit & withdrawal facilities. Clients wishing to trade in derivatives with KVB Kunlun must read the Leveraged Trading Product Disclosure Statement ("PDS") and Client Services Agreement ("CSA"). Clients must read, understand and acknowledge their agreement with the terms and conditions of our offer. The PDS includes information about the product, its terms and conditions, the costs and benefits as well as the product risks. Money held on trust Client money received by KVB Kunlun will be held in segregated client bank account(s), in the name of KVB Kunlun Pty Ltd until it is disbursed or distributed in accordance with the T used by KVB Kunlun in accordance with the provisions of the PDS, CSA or as permitted by Law. Money received by KVB Kunlun for client transactions may also be deposited with other banking institutions to facilitate the execution of client trades. Client funds provided to KVB Kunlun may be deposited with KVB Kunlun New ) L KVB N) M trading in derivatives. The client consents to KVB Kunlun (and any Authorised Representative of KVB Kunlun) dealing with client monies as outlined in our FSG, PDS and CSA and consents to KVB Kunlun (and any Authorised Representative of KVB Kunlun) earning interest, fees or commissions in the ordinary course of its business. Conflicts of Interest Since we are the counterparty to each transaction with our clients, we do not perceive that there are any conflicts of interest. We do however have a conflicts of interest policy so that if and when a conflict or perceived conflict arises, we have appropriate measures in place to deal with it. KVB Kunlun may deal on its own account. Staff are not permitted to deal. How we are paid? We may charge fees for the products and services provided to you. Our principal source of revenue (and your principal expense) is the www.kvbkunlun.com 4
spread cost included in the market price we quote you. Spread is the difference between the bid and ask price of the trade. For example, the price of Gold quoted against USD on our online trading platform of XAUUSD $1,440.6 includes our Spread. You may choose to compare our offer price against other market D charges are set out in the PDS and are also available on our website at www.kvbkunlun.com. If you hold a position open overnight, we charge a Swap Fee. This is the differential between the cost of funds in one currency versus the cost of funds of the other currency in the pair you are trading. For Mini account trading, we may charge a commission which ranges from $0-$20 USD per standard lot. External institutions that KVB Kunlun may deal with may also charge their own fees which can include spread costs, bank charges, brokerage clearing charges and fees relating to execution of the trading contracts. We may receive fees, rebates or other direct or indirect benefits from related parties and third parties. Who is involved in providing financial services to me? KVB Kunlun is a company incorporated in and subject to the laws of Australia. The directors and senior management of KVB Kunlun consist of investment, financial and business professionals with entrepreneurial skills and expertise in most international markets. Whilst you deal directly with KVB Kunlun, we manage a range of supplier relationships in order to deliver our service to you. The key relationship is that with our related party service provider, KVB NZ. KVB Kunlun has engaged KVB NZ to undertake all administration activity on our behalf. This arrangement gives KVB Kunlun economies of scale because we operate one dealing function and one administration function, rather than incurring the costs of multiple operations around the world. What returns will I get? KVB Kunlun does not guarantee any returns. Dealing in derivatives is considered high risk due to the use of leverage combined with market volatility. Gains and losses can be magnified. What are my risks? A detailed explanation of the risks involved is contained in the PDS. How do I transact? Clients should first direct their enquiries to their KVB Kunlun representative. Instructions to deal in Derivatives can be provided by internet, email, telephone or fax depending on the nature of the transaction. Please speak with your Representative for further details. Remuneration or benefits paid to those who refer clients to us If you have been referred to us by another party, we may pay them a fee or commission in relation to that referral, where the law allows. 2) Wealth Management What financial services do we offer? KVB Kunlun is able to provide general and personal financial advice as follows: Comprehensive or Scaled financial advice Wealth creation and accumulation (through investments in securities, www.kvbkunlun.com 5
listed products, managed funds and/or Structured Investments) Wealth Protection (through the use of income protection, life, trauma or disability insurance) Superannuation Asset allocation Services not provided by KVB Kunlun: Estate Planning Taxation Centrelink entitlements Discretionary account services (KVB Kunlun will only act in accordance with your instructions prior to executing a transaction within your account) Portfolio reviews KVB Kunlun offers, on request, a portfolio review service where an adviser can review your investments and provide you with updated portfolio information and recommendations. Our adviser will work with you to agree what advice and services we will provide and when and how often we will provide them. Where you agree to ongoing advice and services, the details will be documented and provided to you. This includes the frequency of contact between us, any service standards and fees that apply and how the service can be terminated. What documents I may receive? You may receive the following important documents if you choose to engage in the Wealth Management services. Statement of Advice ("SOA") financial product recommendations. You will receive this document as a retail client when we provide you with personal advice that takes into consideration your needs, goals and financial situation. description of your objectives and personal financial circumstances the advice, including the strategy, products and services recommended the basis on which the advice was given, information about fees, commissions and benefits payable. Record of Advice ("ROA") Where you maintain the advice relationship with us and we provide further personal advice, an ROA may be provided instead of an SOA if there have been no significant changes in your personal circumstances or the basis of the advice has not significantly changed since the last SOA was provided. Product Disclosure Statement ("PDS") If a recommendation is made to acquire a financial product, you will be provided with a PDS (or terms and conditions). A PDS provides important information about the product, such as its features, benefits, costs and risks, to help you decide whether or not to buy that product. The PDS should be read carefully, and where provided, the SOA and ROA, before deciding whether to utilise the product. How will I pay for the service? You pay for the service through the fees and charges paid to KVB Kunlun. You will also pay for the cost of acquiring a product issued by a third party financial product issuer (the issuer). An SOA is a document that sets out your needs, goals, financial situation, and your adviser's www.kvbkunlun.com 6
KVB Kunlun is remunerated through the fees charged directly to you and commissions paid, where permissible, by issuers or other service providers in connection with advice given to you and executing transactions on your behalf. If necessary, this commission may be paid at your direction. The nature of the fees and commissions will depend on the type of service and the size of your transaction. 1. Personal advice fees If you receive personal advice from KVB Kunlun, either on a once-off or ongoing basis, you may be required to pay a fee or fees to KVB in relation to the service. 2. Acquisition of investment products KVB Kunlun may receive, where permissible, upfront (e.g. establishment, entry, and contribution, initial) and ongoing (e.g. administration/service/adviser/account) fees on the amount you invest in the following ranges, depending on the financial product: Upfront fees of between 0% - 5.5% (inclusive of GST) of the initial amount invested, and/or brokerage fees Up to 2.2% (inclusive of GST) ongoing fees of the investment balance each year, or a flat annual management fee to be mutually agreed. In addition, KVB Kunlun may, where permissible, receive rebates from certain product issuers and administration service providers. These amounts may be based on the total funds placed and may be paid out of fees charged by the issuer/administration service provider. These rebates do not represent a direct additional cost to you. Full details of fees and commissions (and/or the method of calculation) relevant to the financial advice or service we provide you with will be included in the SOA or as soon as practicable after that time. 3. Acquisition of Insurance products Upfront commissions of up to 130% (inclusive of GST) of the first year premium From second year onward, ongoing commissions of up to 30% (inclusive of GST) of the annual premium. 4. Other remuneration KVB Kunlun may, where permissible, receive marketing rebates, sponsorship payments or non-monetary benefits, such as market reports, briefings, training and sales material from issuers with whom investments and insurance policies are placed. Remuneration or benefits paid to those who refer clients to us If you have been referred to us by another party and you invest through KVB Kunlun, we may pay the other party a fee or commission in relation to that referral, where the law allows. Privacy We require you to provide us with certain information in your dealings with us. It is KVB K privacy of individuals. This Privacy Statement sets out the ways KVB Kunlun manages your information. KVB Kunlun is required to collect certain information in order to provide financial services and satisfy your needs in customer services from time to time. The requested information may include but is not limited to your name, date of birth, address, email www.kvbkunlun.com 7
address, telephone number, identification document particulars, income and employment details, etc. The internet service provider of KVB Kunlun may also record your information upon your access to our website including but not limited to your domain name, time of access, contents you access and type of browser. If you choose not to supply information as requested, we may not be able to provide our services to you. Your information may be used for the purpose of daily operation of the service provided to you, managing your account, reviewing your ongoing needs, improving and enhancing customer service and products, promoting and marketing investment, dealing or related services and products, and providing information or opportunities that may be relevant to you. KVB Kunlun will take reasonable steps to protect your information from unauthorized access or use by third parties. Depending on the business operation and product and services concerned, KVB Kunlun may be required to disclose your information to: a) any agent or third party service provider of KVB Kunlun; b) associated or affiliated companies within KVB Kunlun who will undertake to keep such information confidential; c) any person or institution with which you have or propose to have dealings; d) credit reporting or reference agencies; e) courts, tribunals and any regulatory authorities or exchanges which relate to or govern any business of KVB Kunlun; f) In particular, and to meet the requirements of the AML/CTF legislation, we may be required to provide information to Government, Regulatory, Police and Judicial Authorities; g) By opening an account with KVB Kunlun you acknowledge and agree to the terms of our Privacy Statement. Records The following records relating to client money and property are kept by KVB Kunlun: Books of accounts Client statements Records of activities Instructions received from clients Trades executed Commissions or other fees charged Accounting and dealing records are kept for a period of at least seven (7) years. The record of telephone conversations may be kept for a period of one (1) year. Clients may have access to these records. A request for a copy of any or all of the above records must be made to KVB Kunlun in writing. Dependent on the quantity of information requested, and the time to produce the requested information, a fee may be applied. KVB Kunlun will provide a copy of the records by fax, mail, or through an electronic medium. How We Deal with Customer Complaints The information below will describe the complaints resolution procedures of KVB Kunlun. KVB Kunlun is regulated by the ASIC and has established a complaints handling system for any client who is not satisfied with the level of service provided. The first step in resolving a complaint is to call or otherwise contact your KVB Kunlun Representative and discuss the issue. This may provide a quick resolution, or at the very least, will automatically initiate the KVB Kunlun internal complaints handling system. If the nature of the complaint relates to services provided by KVB Kunlun, then your complaint www.kvbkunlun.com 8
will be forwarded to KVB Kunlun. If this initial contact does not satisfy your complaint, or if you simply do not wish to talk to your Representative, then you should detail your complaint in writing and send it to: Compliance Officer KVB Kunlun Pty Ltd Level 18, 2 Park Street Sydney NSW 2000 The letter should contain all details relating to the nature of the complaint, the name of your KVB Kunlun Representative and any other details which you think may be relevant to the complaint. Within 3 business days of KVB Kunlun receiving your complaint, you will be contacted by KVB Kunlun Management staff acknowledging receipt and an attempt will be made to rectify the problem. If the matter is still not resolved at this point, you will receive a letter from KVB Kunlun within 20 business days of the complaint first being reported outlining your rights and results of the investigation. In the event that you are still not satisfied with the result, you can take your matter to an external complaints resolution scheme. KVB Kunlun is a member of the Financial Ombudsman Service (FOS) and in the event that your complaint relates to the KVB Kunlun service provided and that it has not been resolved within 20 business days of it first being reported to KVB Kunlun, you have the right to contact and complain to: Financial Ombudsman Service (FOS) GPO Box 3 Melbourne Vic 3001 (Australia) Tel: 1300 78 08 08 Fax: +61 3 9613 6399 Web: www.fos.org.au www.kvbkunlun.com 9