FinSec Planners Our business, FinSec Planners, has been established for more than 25 years, providing a range of wealth advice and assistance to help people grow, manage and protect their wealth. We can help you create the financial security that lets you focus on what s really important in your life. This member firm profile contains some important information on the services we offer and how we charge for these services. Please read it carefully. You can also find information on our member firm at www.finsecplanners.com.au. FinSec Planners is a Member Firm and Corporate Authorised Representative of Genesys. Our Corporate Authorised Representative number issued by the Australian Securities and Investments Commission (ASIC) is 316505. Our firm is made up of 9 advisers, who together provide advisory services designed to help you create, manage and protect your wealth, including: Debt Management Self Managed Super Funds Direct Equities Tax Effective Investments Personal Insurances Business Insurances (other than General Insurance) Succession Planning Although we provide estate planning advice as part of or incidental to the provision of financial planning advice, we can arrange to provide access to specialist estate planning services, where required. We also offer mortgage broking, commercial financing and leasing services. We can facilitate the purchase of direct equities both through a number of reputable stockbrokers, and through an on-line share broking service. 1
Our team (L to R - David Gilbert, Craig Medlow, Karen Eley, Nathan Pech, Elwyne Smith, Scott Noell & David Wade) Peter Cowley Adviser Peter has been providing financial advice to clients since 1990. Representative Number issued by ASIC is 239736. Peter s Authorised Peter specialises in giving advice in the following disciplines: Self Managed Super Funds Personal Insurances (other than General Insurance) Tax Effective Investments Direct Equities Peter s qualifications are: Certified Practising Accountant (CPA) Senior Associate of FINSIA (SA Fin) Fellow of the Taxation Institute of Australian (FTIA) SMSF Accreditation (Tribeca) ASX ALPA Course (Kaplan) Peter is remunerated by salary. 2
Karen Eley CFP BBus.Acc DipFP Karen Eley has been involved in financial advice to clients since 1999 and is a partner of FinSec Planners. Her Authorised Representative Number issued by ASIC is 276754. Karen specialises in giving advice in the following disciplines: Business Insurance Life Insurance and Personal Risk Management Debt / Cashflow Management Karen s qualifications are: Certified Financial Planner (CPF) Bachelor of Accountancy - University of South Australia (BBus Acc). Karen is an active member of the Australian Financial Advisers Association. In her spare time, Karen enjoys travel, food & wine, painting and photography. Karen is remunerated by salary and percentage of total remuneration paid to the Member David Gilbert DipFP, CFP, BCom David has been providing financial advice to clients since 1986. David s Authorised representative number issued by ASIC is 239407. David is a partner of FinSec Planners. David facilitates advice in the following disciplines: Personal Insurance David s qualifications are: Bachelor of Commerce (BCom) David is married with three children and enjoys spending time with family and the odd water-skiing weekend or round of golf. David is remunerated by salary and percentage of total remuneration paid to the Member 3
Craig Medlow BBG & IntFin Gdip AppFin SA Fin Gdip FP SMSF Specialist Adviser TM Craig has been providing financial advice to clients since 2002. Craig s Authorised Representative Number issued by ASIC is 239805. Craig is a partner of FinSec Planners. Craig specialises in giving advice in the following disciplines: Self Managed Super Funds Personal Insurances (other than General Insurance) Tax Effective Investments Direct Equities Craig s qualifications are: Bachelor of Banking and International Finance (BBG & IntFin) Graduate Diploma in Applied Finance and Investments (GDipAppFin) Senior Associate of FINSIA (SA Fin) Graduate Diploma in Financial Planning (GDipFP) Professional Certificate in Self Managed Superannuation (Tribeca) Craig is remunerated by salary and percentage of total remuneration paid to the Member Scott Noell CFP DipFP Scott has been providing financial advice to clients since 1988. His Authorised Representative Number issued by ASIC is 239461. He is a partner of FinSec Planners and a beneficial shareholder of Pension Transfers Direct Pty Ltd. Scott heads up the Pension Transfers Direct area of our business, which specialises in providing advice to people with UK Pension funds. Scott specialises in giving advice in the following disciplines: UK Pension Advice and Transfer Service (in conjunction with PTD P/L) Business Insurances Succession Planning Scott s qualifications are: Scott Noell is active within the Financial Planning Association of Australia Scott is married with two sons and enjoys spending time with his family, and a good movie. Scott is remunerated by salary and percentage of total remuneration paid to the Member 4
Nathan Pech CFP Dip FP SAFin FTIA SMSF Specialist Adviser TM Nathan has been providing financial advice to clients since 2002. Nathan s Authorised Representative Number issued by ASIC is 239466. Nathan is a partner of FinSec Planners. Nathan specialises in giving advice in the following disciplines: Personal Insurances (other than General Insurance) Tax Effective Investments Nathan s qualifications are: Bachelor of Arts Economics (BA Econ) Diploma in Financial Planning (DipFP) Nathan is an active member of the Financial Planning Association of Australia with CFP status. Nathan is remunerated by salary and percentage of total remuneration paid to the Member Elwyne Smith CFP, DipFP Elwyne has been providing financial advice to clients since 1995. Her Authorised representative number issued by ASIC is 239487. She is a partner of FinSec Planners. Elwyne facilitates advice in the following disciplines: Personal Insurance Elwyne s qualifications are: Elwyne Smith is active within the Financial Planning Association of Australia. Elwyne is remunerated by salary and percentage of total remuneration paid to the Member 5
David Wade CFP DipFP David has been providing financial advice to clients since 1987. His Authorised Representative Number issued by ASIC is 239511. He is a partner of FinSec Planners. He specialises in giving advice in the following disciplines: Life Insurance and Risk Management Business Insurance Succession Planning Debt Management Self Managed Super Funds David s qualifications are: SMSF Accreditation (Tribeca) David Wade is active within the Financial Planning Association of Australia. During his down time, David can be found paddling his boat at Goolwa or playing a round of golf. David is remunerated by salary and percentage of total remuneration paid to the Member Single Discipline Advisers Meredy Andrew DipFP, PNA Senior Risk Paraplanner Meredy has been providing risk advice to clients since 2001. She holds the Diploma in Financial Planning and is also a member of the National Institute of Accountants. Meredy s Authorised representative number issued by ASIC is 284525. She specialises in giving Risk Insurance advice, including the following: Personal Insurances; & Business Insurances & Succession Planning. Meredy is remunerated by salary. 6
Our professional fees We believe the services we offer are valuable and the remuneration received is a fair reward for our expertise and skills. We believe in being very open about any benefits or payments we receive and the costs you will incur for using our services. 1. We charge fees for our initial advice, its implementation, ongoing monitoring and review. 2. We may also charge fees for other advice or services which fall outside the scope of those above. 3. Further details about our fees are contained in our Fee Schedule which forms part of this FSG. 4. No fees are payable unless you have instructed us to proceed with the provision of advice and services by signing our Letter of Engagement. 5. All fees charged by us and any brokerage or commissions paid by product providers (total remuneration) are receivable by Genesys as the AFS Licensee. Genesys retains a percentage of the total remuneration and pays the balance to us. The Genesys percentage is tiered based on the total remuneration earned in conjunction with advice given by the Member The percentage retained currently averages 13% across all Genesys Member Firms. 6. If you purchase or retain a life insurance policy on our recommendation, we may receive brokerage payments from the Insurer who issues the policy. There are a number of ways these payments can be structured. Insurers currently offer brokerage payments of up to 143% of the first year s premium and up to 32% for subsequent years over the life of the policy. 7. If you purchase or retain any retail managed investment products on our recommendation, we may receive commission payments from the product provider. We may receive an initial amount of commission of up to 5% of the amount invested into the product together with an ongoing commission payment of up to 2% per annum. 8. We may also make payment to people or organisations that refer clients to us. We pay up to 50% of the total initial remuneration received by us in conjunction with the referral. 9. The principals of the Member Firm are David Wade, Scott Noell, Elwyne Smith, Karen Eley, David Gilbert, Craig Medlow, Nathan Pech and MHM. They (or their company) receive a dividend from the Member Firm in proportion to their equity. 10. Advisers are paid a salary. 11. FinSec Planners have a formal referral arrangement with Bartons Financial Services. They receive a one-off referral fee of $100.00 for any clients who engage in our financial services. Bartons may also receive between 0% to 25% of any upfront commission FinSec Planners receives on any insurance business written and 25% of all ongoing commission. Full details of all fees, brokerage, commissions or other benefits that we or any other related party receive as a result of recommendations to you will be provided in the Statement of Advice document. 7
Fee schedule Initial Consultation An introductory consultation is provided to all new clients without cost or obligation. Our Advice and its Implementation 1. Wealth Plan Our fee is determined by the complexity involved and is based on a standard hourly rate of $220 (GST inclusive). An estimate of the anticipated time and cost will be provided in our Letter Of Engagement and, should you accept, we will proceed with the preparation of your Wealth Plan. After your Wealth Plan is presented, we will also issue you with an invoice which will provide several options for payment. A popular option is to deduct the fee from your investment portfolio 1. As a guide we charge a minimum amount of $1,100 (GST inclusive) and usually our fee does not exceed $3,300 (GST inclusive). 2. Wealth Protection Plan Wealth Protection Plan Fee minimum of $1,100 (GST inclusive) This fee is payable by invoice normally issued to you after the Wealth Protection Plan has been presented. Year one income earned as a result of the recommendation/s being accepted may be rebated against the above Wealth Plan fee. 3. Implementation fees We discount our implementation fee for clients who join our ongoing Financial Care Program. Financial Care Program Member First $500,000 0.77% Balance Negotiable Hourly Consultation Rate If we need to charge advice fees that fall outside the scope of our normal Fee Schedule, we will charge an hourly rate of $220 (GST inclusive) per hour. Transfer of UK Pension Funds to Australia Should you use our UK pension service a separate Financial Services Guide for our associated member firm (Pension Transfers Direct Pty Ltd) will be provided. That document will disclose the separate fees applicable for this service. Portfolio Management Service The minimum charge for the management of a direct equities portfolio is a flat fee of $3,300 (GST inclusive) per annum. Self Managed Superannuation Fund (SMSF) Service There are various fees incurred with establishing and managing a SMSF. A detailed schedule will be provided where required. 1 This may not be possible on respect of some investments 8
Ongoing review & maintenance You may choose to join our ongoing review and maintenance service - Client Care Program. Further details regarding the client care program/ongoing review and maintenance service will be provided to you if you choose this service. Financial Care Program There is an Adviser Service Fee for the Financial Care Program. This will be added to the standard trail commission paid by the administrator, where appropriate. The combined standard trail commission and Adviser Service Fee will not exceed a total of 1.1% p.a and is reduced for larger amounts. The minimum combined trail commission and Adviser Service Fee charged for the service is $1,000 p.a (GST inclusive). This combined fee will be the total of your Ongoing Service Fees. Ongoing Service Fee: First $250,000 1.10% Next $250,000 0.88% Next $500,000 0.66% Next $500,000 0.44% Next $500,000 0.22% >$2M Negotiable Please note any additional request for advice outside the scope of the Financial Care Program, will be charged on a fee for service basis. This will be fully disclosed prior to any undertaking and after seeking your authority to proceed. Insurance or Investment Transaction Service If you have chosen to use our Investment Transaction Service, there is no formal ongoing service provided, however please note that you may request further advice, if required. Any cost for further advice on non-related issues or formal reviews in relation to existing investments will be fully disclosed prior to any undertaking and after seeking your authority to proceed. The normal adviser trail commission will be paid to FinSec Planners and you will be charged fees as per our schedule for further advice. Understanding Our Relationship with Others AXA Asia Pacific Holdings Limited AXA Asia Pacific Holdings Limited (AXA), ultimately through one of its wholly owned subsidiaries, owns 39.85% of FinSec Planners Pty Ltd. As an equity investor AXA receives a return on its investments that corresponds to its equity exposure. 9