The questions (and answers) below contain information about the financial services we offer as Authorised Representatives of Securitor; Securitor as the holder of an AFSL; the financial services that Securitor offer; the process we follow to provide financial services; how we, our associates, and Securitor are paid; and any arrangements which may influence our advice to you.

If you receive personal financial advice this will be documented in a Statement of Advice (SoA), or in specific circumstances a Record of Advice (RoA), that confirms the discussions you have had with us, the recommendations we are making and the basis for those recommendations. These documents will also explain how those recommendations will work towards achieving your goals, any relevant fees received by us, and any associations with financial product providers.

When a financial product is recommended to you, you will be provided with a Product Disclosure Statement (PDS) or other disclosure document issued by the product provider. Among other things, the PDS contains information about the risks, benefits, features and fees payable in respect of the product. In combination, these documents will help you make an informed decision about whether to proceed with our recommendations.

As the holder of an AFSL, Securitor is responsible for the financial services we provide to you. Securitor acts on its own behalf when these financial services are provided to you.

In relation to the financial services offered in this FSG, Securitor, as the holder of an AFSL, does not act on behalf of any other person or licensee. Securitor is only responsible for the services offered in the FSG.

The law requires Securitor to have arrangements in place to compensate certain persons for loss or damage they suffer from certain breaches of the Corporations Act by Securitor and/or its Authorised Representatives. Securitor has internal compensation arrangements as well as professional indemnity insurance that satisfy these requirements.

A range of financial products offered by many leading financial product providers are available for recommendation by us. Details of the available products we can recommend are contained in the Approved Product List (APL).

Internal and external experts provide financial product research, which is used to carefully select and maintain an extensive list of Approved Products for us to select from. We conduct due diligence on external research report providers that provide us with research.

We will only recommend a product to you after considering its appropriateness to your individual objectives, financial situation and needs. The recommendations will be made after conducting an investigation into the financial products and may require us to investigate and consider a financial product which is not on the APL.

Securitor has established a Risk Partner Program with various life insurance underwriters, which provides support and resources to assist us in the delivery of life insurance advice.

To ensure we provide advice suitable for your needs and financial circumstances, we firstly need to understand your financial situation, personal financial objectives and needs. We will follow a step-by-step process as outlined below:

  1. We will meet with you for an initial consultation. During this meeting we will discuss your expectations and provide you with details of the services we can offer.
  2. We will collect all the information we need from you, including your personal financial situation, financial objectives and needs. If you do not wish to provide the information we require, we will advise you of the possible consequences of not disclosing your full personal information and the impact on the recommendations given. This may include not being able to provide advice on the subject matter you request.
  3. We will help you identify your goals and may discuss your attitude towards investment risk.
  4. We may consider strategies and areas such as income, social security, insurance, cash and estate planning requirements. Where required we will also conduct a reasonable investigation of the financial products that may be suitable to implement the strategies as part of the recommendations. Based on these and other considerations, we will prepare and present you with a written SoA, or in some cases depending on the circumstances, a RoA. We will explain in the SoA (or RoA) the basis for the advice, and any remuneration, benefits or associations which could have influenced the advice. Where we recommend financial products, we will provide you with a Product Disclosure Statement (PDS) or other disclosure document containing information about each product recommended, to help you make an informed decision about whether to purchase that product.
  5. We will discuss our recommendations with you, make any changes you require and gain your agreement to implement those recommendations.
  6. We will then implement those recommendations.
  7. We will meet with you periodically to review your financial circumstances if we agree to an ongoing advice service arrangement which includes a regular review component. If an ongoing advice service arrangement is entered into, this will be documented in your Ongoing Advice Service Arrangement Letter and/or SoA. Where you have entered into an ongoing fee arrangement after 1 July 2013, we will renew your arrangement with you at a minimum of every two years.

We will also explain to you any significant risks of the financial products and strategies which we recommend to you. If you are unclear of the risks, do not hesitate to question us further. In certain circumstances, we may not provide you with personal advice via a SoA or RoA, as outlined above. These circumstances may include:

  1. Where we provide you with only general advice, such as through seminars and newsletters;
  2. When we are acting under a Managed Discretionary Account (MDA) service which allows us to manage investments on your behalf, once you have accepted this service in a SoA;
  3. Further advice or verbal advice – if you previously received advice recorded in a SoA, any further personal advice provided by us may be recorded in a RoA. We will not necessarily provide you with a copy of the RoA unless you request it (see below).

Where a further review is conducted and personal advice is provided, in some circumstances we are not required to provide you with a SoA for this further advice. Where this is the case, if you have not already been provided with a RoA, you may request a copy of the RoA from us by contacting us (on any of the contact details set out in Part 2 of this Guide) for a period of seven years from when the further advice was first provided to you.

You may specify how you would like to give us instructions, for example, by phone, fax or email, using any of the contact details set out in Part 2 of this Guide. Alternatively, you may provide instructions to us in person. Where instructions are provided by telephone, these must be confirmed in writing.

We may provide services other than financial planning services. For example, we may also act as your accountant or legal adviser, or advise you on real estate investments or your finance needs (performing credit activities for you). While we may provide these other services, you should understand that these other services are not provided under Securitor’s AFSL and Securitor does not train, support or supervise the provision of these other services and has no responsibility in relation to these services. Examples of the services which Securitor is not responsible for include:

  • general insurance services (e.g. car insurance)
  • real estate and direct property advice
  • taxation services, such as completion of tax returns
  • accounting and audit services
  • legal services
  • consulting services; and
  • credit activities.

We and Securitor may receive:

  • fees paid by clients;
  • • commissions paid by product providers;
  • • other payments by product providers; and
  • • other benefits.

Fees and commissions are payable (as directed by your Authorised Representative) to any of Securitor, your Authorised Representative, Corporate Authorised Representative or to any other approved party. We may receive up to 100% of any fees and commissions received. Details of any fees, commissions or other benefits that we, Securitor or other associated persons are entitled to receive if you implement our recommendations in relation to a specific financial product, will be disclosed to you in your SoA or RoA when personal advice is given.

The types of fees, commissions and other benefits that may be received by us and by Securitor include the following:

  • Service fees - We will discuss and agree our fee structure with you before we provide you with services. The types of fees you can be charged are listed below. You may be charged a combination, or part of, any of these fees.
  • Fees for advice - We may charge fees for the preparation, presentation and implementation of our advice. These fees will be based on your individual circumstances, the complexity involved in your situation and the time it takes to prepare personal financial advice for you. We will discuss these fees with you and gain your agreement to the fees before we provide you with advice.
  • Ongoing advice fees - We may charge a fee to provide ongoing portfolio reviews and/or for the provision of ongoing services. This fee will be agreed with you and is either a set amount, or an amount based on the amount of funds under our advice, and/or the time involved in reviewing your portfolio and circumstances.
  • Referral fees - If we refer you to another business to provide you with services, we may receive referral fees. Those fees may vary according to the party to whom we are referring, and the products involved. We will provide written notification to you if we are likely to receive referral fees for referring you to another service provider.
  • Payment methods - Our fees are either invoiced to you directly, or deducted from your investments, or a combination of these methods. Where it is debited from your investments, it is normally referred to as the Adviser Service Fee. In most instances you will be able to select the method of payment that suits you best. We will discuss and agree the method of payment with you before we provide you with services.
    • Investment Products - For investment products, including superannuation and annuities, commissions are generally deducted from the funds you invest. Commissions on investment products may only be payable in certain circumstances where an arrangement exists as at 1 July 2013. Where you acquire an investment product before 1 July 2014, commissions may be payable where Securitor had an existing arrangement with the product issuer prior to 1 July 2013. Securitor may receive between 0% and 1% of your initial investment as initial commissions from product providers whose products are recommended to you. Securitor may also receive ongoing commissions from the management fees of the product providers. Ongoing commissions range between 0% and 1% p.a. of your investment balance. Securitor may pass up to 100% of these commissions to us.
    • Life Insurance Products - Depending on the product you purchase, Securitor may receive between 0% and 140% of the annual premium as initial commission, and between 0% and 38.5% p.a. of the annual premium for ongoing (trail) commission. Securitor may pass up to 100% of these commissions to us. In addition, Westpac Group may receive benefits as part of the Securitor Risk Partner Program in the form of education, training and other support and resources to assist in the delivery of life insurance advice. Participants in the Risk Partner Program may pay a fee to Securitor. Participants may be given the opportunity to promote the benefits of their life insurance products. The total amount of fees, or the fees that may be paid by each individual life insurance product provider, will depend upon the commercial arrangements that may be negotiated from time to time between Securitor and each product provider. These payments will not change the amount of the premium payable by you. Securitor may enter into arrangements with life insurance providers relating to the sale of certain life insurance products that provide for payment(s) to Securitor in the form of a licensee commission based on the volume of sales. No amounts received by Securitor relating to these arrangements are passed through to us. Currently, Securitor may receive remuneration of up to 17% p.a. of the premiums written annually with applicable life insurance providers.
    • Margin Lending Products - If we organise, or increase a margin loan for you, Securitor may receive payments in the form of ongoing commissions from the margin loan provider. Commissions on margin lending products may only be payable in certain circumstances where an arrangement exists as at 1 July 2013. Where you have entered into a margin lending product arrangement prior to 1 July 2014, commissions may be payable where Securitor had an existing arrangement with the margin loan provider prior to 1 July 2013. These commissions range between 0% and 0.5% p.a. of your loan balance. Securitor may pass up to 100% of these commissions to us.

From time to time we may accept alternative forms of remuneration from product providers or other parties, such as hospitality or support connected with our professional development (e.g. training or sponsorship to attend conferences). We maintain a register detailing any benefit we receive which is valued at between $100 and $300 and other benefits that relate to information technology software or support provided by a product issuer, or that relate to educational and training purposes.

A copy of the register is available on request for a small charge.

Westpac may benefit from remuneration paid in respect of the financial services offered in this FSG.

Product providers in the Westpac Group receive product fees and may be entitled to certain expense reimbursements if you invest in their products. Product fees are generally calculated as a percentage of the amount or value of your investment in these products.

Sometimes Westpac Group companies do not charge specific fees for their products or services. This may be the case where, for instance, Westpac buys, sells or issues derivatives, foreign exchange products and certain other financial products from or to a customer. In these circumstances, instead of a fee, Westpac incorporates margins (being the difference between what you pay for a financial product and what it costs Westpac to issue it to you) into the buy, sell or issue price or rate.

Westpac Group companies may also benefit from other roles they perform in a transaction. When these products or services are provided to you, details of these fees or benefits and how they are calculated will be disclosed in the relevant PDS or other disclosure document that will be provided to you by us.

Preferred partners – Asgard platform Westpac or a related company (excluding Asgard Capital Management Ltd) receives benefits in the form of fees from fund managers that it selected as preferred partners, where those arrangements were put in place prior to 1 July 2013. To be selected as a preferred partner, these fund managers must have met certain quality hurdles (such as investment fund performance). Preferred partners may be given the opportunity to promote the benefit of their managed funds to Westpac Group representatives and other advisers who use the Asgard platform, including Securitor advisers.

Westpac or a related company (excluding Asgard Capital Management Ltd) receives up to 100% of the management fee received by preferred partners in respect of funds under administration in their products through the Asgard platform. This fee is negotiated individually with preferred partners and may vary from time to time.

The total amount of fees received will depend on all relevant circumstances, including funds that flow into, and which remain, under administration. We do not receive any part of this payment.

If you choose to receive financial planning services, you acknowledge that we will be able to advise you on preferred partners’ products. If you invest in a preferred partner’s product as a consequence of such advice, fees, as outlined above, are payable.

We are under no obligation to recommend preferred partners’ products. Please note that fund managers in general may pay rebates to Asgard and in such cases 100% is passed on to you directly by Asgard.

Securitor’s Approved Product List includes some Westpac and Asgard financial products, as well as a range of financial products from product providers not associated with the Westpac Group. Securitor does not require its Authorised Representatives to recommend only Westpac Group products.

We are generally only permitted to recommend Wrap services provided by platform providers within the Westpac Group, however we can recommend other Wrap services to you where it suits your objectives, financial situation and needs.

Any other relationships or associations we have that may influence our advice to you will be disclosed to you.

If you are referred to us we may pay the referrer a fee. We may also provide the referrer with gifts such as branded promotional items, hampers or gift vouchers.

The fee varies according to the referrer and financial products involved.

The fee may be a percentage of our fees, a percentage of the total amount invested paid through the referral, or a flat fee. We may pay these fees upfront when the financial service is provided, or the financial product is provided, or periodically as ongoing fees.

Date issued: 9 November 2015