FINANCIAL SERVICES GUIDE Savings and Transaction Accounts Term Investments Payment Services Dispute Resolution Foreign Currency Services Member Insurances Privacy - 1 -
Your Cairns Penny Savings & Loans Limited FSG This Financial Services Guide (FSG) is designed to help you decide whether to use Cairns Penny Savings & Loans Limited ABN 68 087 933 757, AFSL and ACL 244 324 ( Cairns Penny ) products. The FSG contains information on: o Product details and advice; o Our products and services; o Our business partners; o Our fees and commissions; o If you have a complaint; o Our privacy policy; o How to contact us. Product Details and Advice We have a range of product brochures available to you including: o A Terms & Conditions booklet describing the general terms and conditions applicable to our products and services; o A Fees and Charges brochure setting out costs relating to each product; o An Interest Rate brochure listing current interest rates. o Product brochures In respect of insurances we also provide the Product Disclosure Statement ( PDS ) prepared by the insurer issuing that product. In respect of Cash Passport cards we provide the PDS prepared by Access Prepaid Australia Pty Ltd ABN 47 145 452 044 AFSL 386 837 ( Access Prepaid ) who issue that product. Terms and conditions will also be provided to you before taking out other Cairns Penny products including home loans and special purpose loans. - 2 -
About Cairns Penny Savings & Loans Cairns Penny exists to meet Members' needs and help them achieve their goals by building financial relationships for mutual benefit. Our shareholders are our customers as part of a mutual structure regulated by the Australian Securities and Investment Commission (ASIC) and Australian Prudential Regulatory Authority (APRA). Instead of a cash dividend we provide our shareholders (we call them Members) a mutuality dividend. Our mutuality dividend is a bit like a promise. A promise to: o Always offer competitive interest rates; o Never charge excessive fees; o Make sure our product range meets your needs; o Keep you up to date; o Ask you what you want and listen to your response; and o Give you a range of choices when it comes to accessing our services. Our Business Partners and Commissions Unless otherwise stated, we act on our own behalf at all times when providing financial services referred to in this FSG. Our Products & Services We can provide advice on and offer you a range of basic deposit products including: o Savings and Transaction Accounts; o Term Investments; and o Payment facilities such as cheques, direct debits and credits, and Visa Debit cards. We can also arrange insurance products including: o Home and contents o Motor vehicles o Travel o Consumer credit We are also able to arrange your foreign currency needs including pre-paid travel money cards through Travelex Limited ABN 36 004 179 953, AFSL 222 444 ( Travelex ) and Access Prepaid. - 3 -
Referral for Non Financial Services Private Health Insurance Cover In association with Queensland Country Health Fund Ltd ABN 18 085 048 237, we are able to offer Members private health insurance cover. Queensland Country Health Fund is a not-forprofit health fund registered under the Private Health Insurance Act 2007 (Cth). Transaction Accounts Access Plus Account Our Access Plus Account is our main transaction account. It features optional Visa Debit card, internet banking access, personal cheque book, statement and passbook. Other features include BPay, direct debits & credits and periodical payments. Interest is calculated on the daily balance and is paid quarterly (March, June, September and December). Excess transaction fees apply to these accounts. Other fees may apply in certain circumstances. Full details are set out in our Fees & Charges Brochure. Pennywise (Offset) Account Our Pennywise Account is a transaction account which provides additional features to those members with a home loan from us. Interest on these accounts is calculated on a daily basis and offset against the monthly interest charge on the associated loan This account features optional Visa Debit card, internet banking access, personal cheque book, statement and passbook. Other features include BPay, direct debits & credits and periodical payments. Excess transaction fees apply to all of these accounts which have been opened since 19 March 2007 and to those accounts opened on or prior to this date where the member has chosen to enable Visa Debit card, internet or cheque book access. Other fees may apply in certain circumstances. Full details are set out in our Fees & Charges brochure. - 4 -
Pensioner Account Our Pensioner Account is a deeming account. Deeming rates are used to assess income from financial investments for social security and Veterans' Affairs pension/allowance purposes. Deeming assumes that financial investments are earning a certain rate of income, regardless of the amount of income they are actually earning. Our S5 Pensioner account features optional Visa Debit card, internet banking access, personal cheque book, statement and passbook. Other features include BPay, direct debits & credits and periodical payments. Interest is calculated on the daily balance and is paid annually on 30 June. Excess transaction fees apply to all of these accounts which have been opened since 19 March 2007 and to those accounts opened on or prior to this date where the member has chosen to enable Visa Debit card, internet or cheque book access. Other fees may apply in certain circumstances as set out in our Fees & Charges brochure. Business Account Our Business Account is a transaction account specifically for small businesses. It features optional Visa Debit card, internet banking access, cheque book access and monthly statements. Other features include BPay, direct debits & credits and periodical payments. Interest is calculated on the daily balance and is paid monthly. Excess transaction fees apply to all of these accounts. Other fees may apply in certain circumstances. Full details are set out in our Fees & Charges Brochure. Savings Accounts Christmas Club Accounts Our Christmas Club Account has restricted access to funds in return for a higher interest rate. Funds are generally only available between 1 November and 31 December each year. - 5 -
Interest is calculated on the daily balance and is paid annually on 31 October. There are generally no transaction or account keeping fees on these accounts although fees may apply in certain circumstances. Full details are set out in our Fees & Charges brochure. Internet Saver Account Our Internet Saver account has restricted access to funds in return for a higher interest rate. Funds can only be withdrawn by transferring them to a nominated transaction account at Cairns Penny. Interest is calculated on the daily balance and is paid monthly. There are no transaction or account keeping fees on these accounts. First Penny Account Our S16 First Penny account has been designed to encourage and reward good saving behavior by our younger generation. The account is only available to members under the age of 18 and pays a high interest on the first $2,000 saved. Interest is calculated on the daily balance and is paid monthly. There are no transaction or account keeping fees on these accounts. Accounts No Longer Offered We do not offer new accounts of the following types. Existing accounts are maintained. S2 Savings Investment Accounts Our S2 Savings Accounts held by other members who opened these accounts prior to 20 March 2007. These accounts feature passbook and statements and can have BPay, direct debits & credits and periodical payments. Interest is calculated on the daily balance and is paid annually on 30 June. - 6 -
There are generally no transaction or account keeping fees on these accounts although fees may apply in certain circumstances. Full details are set out in our Fees & Charges brochure. Existing accounts are required to be converted to one of our currently offered transaction accounts if our new services such as Visa Debit card, internet banking or our S7 Internet Saver account are required. S4 Personal Cheque Accounts Our S4 Personal Cheque Account is held by many members who opened these accounts prior to 20 March 2007. We do not offer new accounts of this type. Existing accounts are required to be converted to one of our currently offered transaction accounts if our new services such as Visa Debit card, internet banking or our S7 Internet Saver account are required. Fixed Term Deposit Accounts We offer fixed term deposits on amounts of $1,000 and over for terms from 1 month to 2 years. Interest is generally payable annually or on maturity. For deposits on terms of 12 months or greater you may elect to have your interest paid monthly. Details of rates are set out in our Interest Rate brochure. Members with $100,000 or more invested on term deposit are eligible for our loyalty rate on further amounts invested. Additional deposits by these members attract the top interest rate for the term regardless of the amount. Payment Services Full details of our payment services are set out in our Electronic Payments and Savings & Transaction Account brochures. BPay Members have the convenience of paying bills using BPay from their transaction account. BPay can be arranged using internet banking or over the counter at our branch. We receive commission on BPay transactions at rates up to 41cents per transaction. - 7 -
Periodical Payments Regular payments can be made using a periodical payment arrangement whereby funds are transferred between accounts at Cairns Penny or even to other financial institutions on a regular basis. Member Chequing Member chequing access can be added to an Access Plus Account, Pennywise Account, Pensioner Account or a Business Account. Direct Debits & Credits These are transactions established directly with a third party (not Cairns Penny) for automatic payment from or into your account. Insurance We have arrangements with the insurance companies listed below, whereby we can arrange for you to obtain insurance policies. While we can arrange insurance cover for you, your contract of insurance will be with the insurer and not us. The insurer will be responsible for the performance of the insurance contract. We act as distributors for the following general insurers: o Vero Insurance Limited (Vero) o St Andrew s Insurance (Australia) Pty Ltd o St Andrew s Life Insurance Pty Ltd - 8 -
We receive commission on insurance products on a percentage of the premium paid (excluding stamp duty, fire levy and GST) for each policy as follows: Insurance Policy Commission Received Vero Building & Contents 0-15% Na Landlord 0-15% Na Motor Vehicle 0-10% Na Travel 0-20% Na St Andrew s Consumer Credit Insurance Na 0-20% Financial Planning For any Financial Planning needs our referral partner is Professional Investment Services (Walden Financial Services local representative). Cairns Penny has an agreement with Professional Investment Services that we will receive commission for any new clients that are referred by us. This commission is based on 20% of any commission received by Walden Financial Services from Professional Investment Services Pty Ltd when providing you with initial advice. (For example, for every $10 commission received by Walden Financial Services we receive $2.) We do not receive trailing commission payments. All commissions are paid to us by our business partners when you take out or use the product or service. We do not take part in providing any Financial Planning related services to our members. Foreign Currency Services We sell pre-paid travel money cards ( Cash Passport cards). These are not Cairns Penny products. Access Prepaid arranges for the issue of the Cash Passport in conjunction with the issuer, Heritage Building Society Limited (ABN 32 087 652 024, AFSL 240984).Accordingly, we provide the PDS prepared by Access Prepaid with these products. - 9 -
We receive commissions from Access Prepaid generally at the rate of 1% upon the sale of these products. We provide other foreign currency services through Western Union Business Solutions (Australia Pty Ltd) ABN 24 150 129 749 including the sale and repurchase of foreign currency and telegraphic transfers. We receive commissions from Western Union Business Solutions (Australia Pty Ltd) generally at the rate of 1% upon the sale of these products. Visa Debit Cards We may receive a commission of 2.65% of the value of a transaction where you use your Visa Debit card outside of Australia. Our Fees and Other Payments We charge the service fees and excess transaction fees applicable to our products and services as set out in our Fees and Charges brochure. Access Prepaid provides incentives to our employees based upon the value of sales on Cash Passport Cards. Incentives are by way of gift cards with a value up to $100. Our employees are representatives of Cairns Penny and other tan as disclosed here no other payments are received by our staff that would influence the advice they provide you on our financial products and services. If You Have a Complaint Contact the General Manager direct on (07) 4031 4460. If the complaint is in connection with Insurance products, Cash Passport Cards, Travelers Cheques or Financial Planning services then we recommend you contact the provider of those products or services. Cairns Penny is a participant in the Credit Ombudsman Service Ltd ( COSL ) and is happy to offer its Members an internal dispute resolution procedure that is readily accessible and free of charge. - 10 -
What is a dispute? A dispute arises if you make a complaint to us about a Cairns Penny product or service and you are not satisfied with the response that you receive. You should be aware that: o Our Dispute Resolution System has been established with the aim of resolving problems and enhancing the quality of service provided to our Members. o You are not obliged to pursue a dispute with us using our Internal Dispute Resolution procedure. If you do not use the Internal Dispute Resolution procedure, you may commence legal proceedings before, after or at the same time as using the Internal Dispute Resolution Procedure. o Our participation in the Internal Dispute Resolution procedure is not a waiver of any rights we may have under the law, or under any contract between you and Cairns Penny. o An example of a contract between you and Cairns Penny may be a loan contract, a mortgage, a guarantee, the terms and conditions of an account. How to request resolution of a dispute If you are not satisfied with the result of your complaint you should write to Cairns Penny asking for the matter to be reviewed. The matter will be referred to our General Manager for consideration and you will be advised of the outcome accordingly. If the General Manager is able to resolve the dispute, they will promptly notify you in writing of, and give reasons for, the outcome. The General Manager will normally deal with a dispute within one month of receiving a complaint. Where you are still not satisfied with the result of your dispute, you may seek further consultation through external facilities available from the COSL. They may be contacted by telephone on 1800 138 422. - 11 -
We care about your Privacy At Cairns Penny we acknowledge the importance of your privacy and the safeguarding of your personal information along with maintaining your trust in the credibility and ability of our systems and staff to satisfy these important mutual needs. Full details of our approach to privacy are set out in our booklet Australian Privacy Principles Privacy Policy A Guide for Members a copy of which is available on our website at www.cairnspenny.com.au or by contact us. About this FSG and Updates All details are current as at the date of this FSG. We will update the FSG if there are material changes. If you require more information, if you have an issue or if you have any suggestions on how we can improve our service please contact us on Ph (07) 4031 4460, email us at info@cairnspenny.com.au or write to us at PO Box 5272, Cairns QLD 4870. - 12 -