Level 7,34 Charles St Parramatta NSW 2150 PO Box 103 Parramatta NSW 2124 Phone: 02 9687 1966 Fax: 02 9635 3564 Web: www.carnegiefin.com.au Guide Build Protect Manage Wealth Financial Services Guide This Financial Services Guide will clarify who we are, what we do and the services we provide. This allows you to make an informed decision on whether to use our services. It also contains information on how you pay for our services and how we ensure your satisfaction with our advice. Contents About Carnegie Financial Planning... 2 What We Do... 2 Your Relationship with Carnegie Financial Planning... 4 Managing Your Information... 4 Using your Personal Information... 4 Consent to Marketing Activity... 5 Receiving Our Advice... 5 Other Payments and Benefits we can receive... 6 When and How You Pay for our Advice and Services... 6 How we Charge for our Advice and Services... 6 Your Confidence in Our Advice... 5 Our Complaints Procedure... 5 1
About Carnegie Financial Planning Carnegie Financial Planning Pty Ltd (ABN 94 128 285 110) is an Australian Financial Services Licensee (AFSL No. 389528). Carnegie Financial Planning is a Proprietary Limited Company. The Directors are Sheila Cabacungan and Jonathan Fowell. The majority shareholder is Sheila Cabacungan and her related entities. Sheila Cabacungan is our Principal Financial Planner and also serves as the Responsible Manager. Sheila Cabacungan CFP, SSA, B.Ec, Dip FP. Principal Financial Planner and Director Sheila has practised as a Financial Planner for over 15 years providing personal financial advice. She has the professional experience and formal education to practise as a Certified Financial Planner. Sheila is an accredited Self-Managed Super Fund Specialist Adviser and is also a Tax Agent (Financial Services) Jonathan Fowell CPA Director Jonathan has 30 years of experience in public practice as a Certified Practising Accountant. He is also a registered tax agent. He has significant expertise in a variety of industries, in tax law, financial and management accounting. He provides tax advice, business and accounting services to individuals and corporations. Jonathan is the Principal Accountant of Carnegie Financial Services and is also a Director of Carnegie Finance. Our Associations and Relationships Carnegie Financial Services is an independently owned provider of Financial Advice. We are not owned by or associated with any Financial Institution or Insurance Provider. Carnegie Financial Planning works in partnership with the following companies located at Level 7/34 Charles St Parramatta NSW 2150 Carnegie Financial Services Pty Ltd ABN 77 108 186 189 Carnegie Finance Pty Ltd ABN 11 116 248 590 Sheila Cabacungan as Principal Financial Planner and Responsible Manager is associated with: Self-Managed Super Fund Professionals Association of Australia (SPAA) as a Specialist SMSF Adviser. Financial Planning Association (FPA) as a Certified Financial Planner (CFP) Practitioner What We Do Our Purpose is to empower our clients to make smart decision about money. We provide personal advice, strategies and solutions to achieve their life and wealth goals. To do this we partner with you to gain an understanding of what is important to you. We work in harmony with our business partners and your trusted advisers. We create and manage solutions to address your concerns and achieve your wealth goals. 2
Carnegie Financial Planning can provide you with Financial Advice in Relation to: Building Wealth Wealth Accumulation Superannuation Retirement Planning Self-Managed Superannuation Protecting Wealth Income and Asset Protection Family and Personal Protection Business Ownership Protection Estate Planning Managing Wealth Tax Strategies for individuals, trusts and business owners Government Benefits for individuals Debt Management for individuals, trusts and business owners Redundancy Planning for individuals Administration and Accounting services for Self-Managed Superannuation Funds Wealth Education Group seminars on Building, Protecting, Managing Wealth tailored to the needs of the group We are able to provide Advice and Deal in the following financial products: Financial Products to Building Wealth Government Debentures, stocks or bonds Managed Investment Schemes including Investor Directed Portfolio Services Superannuation Retirement Savings Accounts Securities Standard Margin Lending Facilities Financial Products to Protect Wealth Life Products Investment Life Insurance Life Products Life Risk Insurance Financial Products to Manage Wealth Basic Deposit Products Non Basic Deposit Products 3
Your Relationship with Carnegie Financial Planning Operating under our own Australian Financial Services License gives us the ability to put your personal and financial interests foremost in all our dealings with you. How to give us instructions: You can give instructions to us in any one of the following ways: In person By phone By mail By fax By email Who are we acting for: When we provide financial services we are acting on your behalf and not on behalf of any product issuers. Managing Your Information To give you appropriate advice we need to know about you. Collecting information about your current financial situation, your personal circumstances and what you hope to achieve is the first step in our Financial Planning Process. Without this information, our advice may not be appropriate and relevant to your circumstances. Why We Collect Personal Information We collect your personal information to provide you with the financial services you have requested and to contact you about other strategic solutions, products and services that may be relevant to your current and future needs. We have an obligation to ensure that our Advice and Product dealings with you are appropriate for your needs and circumstances. We are required to know our client to know our products and act in the best interests of our client. These obligations and our fiduciary duty require us to obtain your personal information. Protecting your Privacy To protect your privacy your client file will be kept securely by us. Your client file will contain your personal information, risk profile, personal objectives and financial circumstances along with our recommendations and file notes. You are entitled to obtain access to the information we hold about you. In some cases as permitted by law we may withhold access and in that event we will explain in writing the reasons why. Using your Personal Information Carnegie Financial Planning may provide your personal information to the following services providers. We may also with your written consent obtain information from these providers: Other advisers, Para-planners and organisations who work with us Insurance providers, superannuation trustees, product providers Organisations that help us operate our business providing administration, financial, accounting, insurance, research, legal, strategic advice, auditing, computer or other business services. Your nominated representatives and service providers Organisations involved in a business restructure or transfer of assets for our business and Government Authorities and Organisations when required by law. 4
Consent to Marketing Activity We presume that you consent to being contacted by us about suitable products, services and strategic advice relevant to you. This contact will be made using the agreed contact methods you provide to us. We can continue to contact you for this purpose until you withdraw your consent. You can withdraw your consent by contacting us. For more information about your Privacy you can visit the Federal Privacy Commissioner s website at www.privacy.gov.au Your Confidence in Our Advice As a valued client, your satisfaction with our Financial Advice and Services is important to us. We have procedures in place to manage and resolve any concerns you have fairly and promptly. If you are unhappy with the advice you receive or other aspects of our service, please let us know so we can act on it immediately. Our Complaints Procedure Carnegie Financial Planning is a member of Financial Ombudsman Service We will work to resolve your complaint within 45 days from receiving your complaint in writing. If your complaint isn t resolved within 45 days or isn t resolved to your satisfaction, you can refer to The Financial Ombudsman Service (FOS). FOS is a free, accessible and fair independent dispute resolution service available to consumers. You can contact FOS on 1300 78 08 08 at www.fos.org.au or by writing to: The Manager Financial Ombudsman Service GPO Box 3 Melbourne VIC 3001 Carnegie Financial Planning holds Professional Indemnity Insurance that satisfies the requirements (Section 912B) of the Corporations Act. Carnegie Financial Planning has Professional Indemnity in place to cover us for the financial services we provide. We understand it is adequate to meet our requirements as financial services licensee. The policy includes coverage for claims in relation to the conduct of representatives/employees who no longer work for us (but who did at the time of the relevant conduct) 5
Receiving Our Advice In addition to this Financial Services Guide, when we provide you with financial advice we will present you with a Statement of Advice (SOA). Your SOA will describe the strategies, products and services we recommend. It will outline any fees and commissions we will receive as a result of our recommendations. It will disclose any associations we have with the financial product providers and other parties we recommend. If you receive further advice from us, it will also be documented in either a Record of Advice (ROA) or in another SOA. You can request a copy of any SOA and ROA written for at any time up to seven years from the date of the advice provided. We will also provide you with a Product Disclosure Statement (PDS) or offer documents for all financial products we recommend, where applicable to help you make a smart and informed decision. We will also take instructions from you to deal in a Financial Product or make changes to your SOA. Generally instructions will be required in writing (e.g. by fax, email or letter) we can also agree on other methods as required. Other Payments and Benefits we can receive We will provide you with details of all fees, commissions or other benefits we may receive as a result of our advice to you. Where possible we will advise you of these payments and benefits in dollar amounts and in relation to your funds under advice. If we are unable to provide this detail, worked examples will be provided. Even if you don t receive personal advice from us, we may still receive payments and benefits resulting from any other financial service we provide to you. In this case we will disclose these payments and benefits to you. Carnegie Financial Planning can also receive non-monetary benefits such as subsidised Professional Education, Continuing Professional Development Workshops, Event Sponsorship, Merchandising Sponsorship and provision. A register of these non-monetary benefits will be kept by Carnegie Financial Planning and will be available for client view on request. When and How You Pay for our Advice and Services Carnegie Financial Planning is proud to hold our own Australian Financial Services License. We are independently owned by the Directors and Shareholders listed on page 2. This allows us the autonomy and ability to provide a Fee for Advice service to you. This allows you to know that you are paying for our advice irrespective of any product you use. It clarifies the advice you receive and ensures that all recommendations are driven by your needs and goals. We will agree on the cost for obtaining our Advice and the cost for implementing our recommendations. You can choose to pay in the following ways: A one off deduction from your initial investment A direct invoice payable within 30 days of receiving our Statement of Advice or Implementing our Advice Via a commission we receive from a financial product provider when you commence an insurance or loan contract or Any combination of the above. All Fees are inclusive of GST 6
How Are our Representatives Are Paid Our Representatives are paid by share of operating profit derived from our Advice and Service Fees below. How we Charge for our Advice and Services Initial Advice Initial consultation Discovery and Scoping consultation Strategy Presentation At our expense At our expense At our expense Advice preparation A fee for service based on an hourly rate of $330. With a minimum fee of $660. We can also cap our hourly rate based on the complexity of your Advice needs. Transactional Advice $1,650 Strategic Advice $3,300 Complex Strategic and Structural Advice $6,600 Before we give you our Advice we will determine the appropriate category of advice and get your consent to proceed. We will ask you to agree to Terms of Engagement that will form the basis of our relationship with you. Implementation Under a Fee for Advice Agreement If you elect to pay us a fee for service the following fees will apply. The fees will depend on the size of the investment portfolio and the complexity of the advice: A fee for service based on an hourly rate of $330. With a minimum fee of $660. We can also cap our hourly rate based on the complexity of the implementation. Transactional Implementation $660 Complex and Structural Implementation $1,320 Paying your Initial Advice and Implementation Fees You may pay fees by credit card, direct debit, cheque or debit from your investment account. 7
How we Charge for our Advice and Services Ongoing Advice Ongoing fee for service If we agree to provide ongoing advice the agreed scope, terms and conditions of this service will be documented in an Ongoing Service Agreement. This document will provide the basis for our ongoing service to you and the fees payable. If you elect to pay a fee for the ongoing service and review of your financial planning strategy, the ongoing service fee is based on the complexity of ongoing advice and the services provided. The minimum fee is $1,650 while the maximum is 1.173% of the value of your portfolio each year. For example the fee in a $200,000 investment could be between $1,650 and $2,346 per annum. We will receive ongoing commission (as detailed below) for any life insurance products you have in addition to this fee. Ad hoc advice Commission on Investment Products and Margin Loans for Implementation & Ongoing services The ongoing service fee may be collected monthly through the product issuer or paid directly by you via credit card, direct debit or cheque. Where you do not wish to participate in an ongoing service arrangement but require ongoing advice on an ad hoc basis, an hourly fee $330 may apply. Unless you have agreed to a fee for advice arrangement we will receive commission for our initial and ongoing services to you. The relevant product issuer will pay initial upfront commission is between 0% and 5. 5% and ongoing commission between 0% and 0.88% of the value of your investments (including margin loans) for as long as you hold the product. For example an investment of $100,000 could result in an initial upfront commission payable to us in the range $0 to $5,500. Ongoing commissions on an investment of $100,000 could result in an annual commission payable to us in the range of $0 to $880). Commission on Life Insurance Products For Implementation & ongoing services. Commissions are paid to us by the product provider and are not a direct cost to you. We will receive commission for our initial and ongoing services to you. The relevant insurer will pay initial commission between 0% and 130% and ongoing commission between 0% and 33% of the annual premium for as long as you hold the product. For example on an insurance premium of $1,000 the initial commission will range from $0 to $1300. Ongoing commission on an insurance premium of $1,000 will range from $0 to $330. Commissions are paid to us by the product provider and are not a direct cost to you. 8