Combined Financial Services and Credit Guide
A guide to the services we provide and how we will work with you
Fortnum Financial Advisers Fortnum Private Wealth Pty Ltd trades as Fortnum Financial Advisers ABN 54 139 889 535 Australian Financial Services Licence 357306 Australian Credit Licence 357306 Contact Address: Unit 3, 36-38 Bydown Street, NEUTRAL BAY NSW 2089 Phone (02) 9904 2792 Registered Office: c/- Ross Ellice-Flint, Level 13, 23-25 Hunter Street, SYDNEY NSW 2000.
We provide financial services through Authorised Representatives and credit services through Credit Representatives. Details of the Authorised Representative and Credit Representative who may provide you with services are set out in the Adviser / Practice Profile, which together with this document, make up the Combined Financial Services Guide and Credit Guide. Neither document is complete without the other. Issued: August 1, 2014 Version: 8
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Welcome to Fortnum Financial Advisers Our Combined Financial Services Guide Credit Guide (our Guide) consists of two parts – this document and the Adviser / Practice Profile. Our Guide provides you with important information about Fortnum Financial Advisers and its Authorised Representatives and Credit Representatives who may provide you with the services described in our Guide. For convenience, we refer to them throughout this document as Authorised Representative. The information in our Guide is not complete without the Adviser / Practice Profile which provides information on the Principal Practice of which your adviser is a director or employee as well as your adviser’s skills and qualifications, their fees structures, and the services they are authorised to provide on behalf of Fortnum Financial Advisers. It’s important that you take the time to read the information provided so that you can make an informed decision about whether to use the services offered by us. If you need any clarification on what you have read, please don’t hesitate to contact us. We are committed to having open and honest communication with you at all times, as this is the foundation for good advice and an ongoing relationship. Our Guide covers: •
Who we are
• The type of advice and other services we can provide •
How Fortnum Financial Advisers and its Authorised Representatives are paid
• Details of our relationships with other institutions and any potential influences • How we deal with complaints against us (whether complaints relate to Fortnum Financial Advisers or its Authorised Representatives) •
How we protect your personal information
As part of services we provide, you may also receive a Statement of Advice (SoA), a Product Disclosure Statement (PDS) and/or an Annual Fee Disclosure Statement (FDS): • A SoA will be given to you if your adviser provides you with personal advice. As well as the personal advice, it will include information such as the scope of the advice, your current personal and financial position, the basis for the advice and how it addresses your needs and objectives. It will also disclose the fees and charges payable by you and the remuneration and other benefits we may receive, as well as potential conflicts of interest. • A PDS will be given to you if we recommend a product as part of your financial strategy. The purpose of a PDS is to assist you in making a decision about the particular product. It contains information about the product’s key features, benefits, risks and fees. • A FDS will be given to you each year if you choose to enter into an ongoing fee arrangement. It will outline the fees paid and the services you received in the preceding 12 months. References in this guide to: •
“We”, “our” and “us” means Fortnum Financial Advisers or your financial adviser.
•
“Advice Document” means Statement of Advice (“SoA”) or Record of Advice (“RoA”).
Your adviser, as an Authorised Representative of Fortnum Financial Advisers, is authorised by Fortnum Financial Advisers to distribute our Guide to you. You should note that Fortnum Financial Advisers acts for you when your adviser provides services on its behalf. Further, if you take out or renew an insurance product as part of the services provided to you, neither Fortnum Financial Advisers nor your adviser acts for the insurer, whether under a binder (ie a power to commit the insurer to an insurer policy), or otherwise.
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Who are Fortnum Financial Advisers? Fortnum Financial Advisers brings together a number of like-minded advisers united in a “client-first” approach, and in which all Principal Practices have a financial stake. Our name comes from a combination of two words – fortress and numbers. This represents our duty to you, the client – our dedication to protecting your financial security and our strength in numbers. We represent a new approach to financial advice, delivering the highest quality financial advice based on integrity, innovation and a commitment to building your financial future. Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306 (FPW) is a company that trades as Fortnum Financial Advisers. FPW is indirectly owned by the Principal Practices, and by participating Fortnum group staff. This means all Principal Practices have “skin in the game” - a vested interest in protecting the Fortnum name, our values and your financial future.
How does Fortnum Financial Advisers maintain adviser standards? Our advisers are required to undertake continuous professional development and we host regular training programs to keep advisers up to date with legislative changes to the taxation, social security, superannuation and investment environments. Our philosophy is one of continually raising the bar and always to act in your best interests. Our advisers have direct access to in-house technical, risk and investment research professionals who can provide additional analysis on strategy and products so that we can provide quality advice to you. Risk management specialists monitor and regularly audit our advisers to maintain high quality advice standards.
Who is responsible for the advice I’m given? Your adviser is an Authorised Representative of Fortnum Financial Advisers. Fortnum Financial Advisers is responsible for any financial service or credit service your adviser provides on its behalf. Please refer to the Adviser / Practice Profile document provided with our Guide for specific information about your adviser.
What is Fortnum Financial Advisers licensed to advise on? Australian Financial Services Licence Fortnum Financial Advisers is licensed to provide financial product advice and deal in the following products: •
deposit and payment products
• derivatives •
life investment or life risk products
• interests in managed investment schemes, including investor directed portfolio services (IDPS or ‘Wrap’) •
interests in managed investment schemes limited to managed discretionary account services
•
retirement savings accounts
• securities •
standard margin lending facilities
• superannuation •
mortgage products.
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A wide range of financial products from various product providers are available and are thoroughly researched by qualified research professionals appointed by Fortnum Financial Advisers. Our advisers are only authorised to advise on products which are approved by Fortnum Financial Advisers for use. Your adviser will only recommend a product to implement your strategy after considering its suitability in relation to your individual objectives, financial situation and needs.
Australian Credit Licence Fortnum Financial Advisers is licensed to engage in credit activities other than as a credit provider in relation to: •
credit contracts such as credit cards, home loans and investment loans, personal loans, car leases and reverse mortgages
•
consumer leases.
We will only recommend that you apply for, make an increase to or remain in a credit / lease contract with a particular provider if we assess that the credit / lease contract is suitable to help you address your stated needs and objectives. The law prohibits us recommending a credit / lease contract that is unsuitable for you. We may provide credit services in relation to credit / lease contracts with a range of credit / lease providers. The 6 credit / lease providers with which Fortnum Financial Advisers conducts the most business are: • ANZ Banking Group (and its subsidiaries) •
Commonwealth Bank (and its subsidiaries)
•
Westpac Bank (and its subsidiaries)
•
St George Bank (and its subsidiaries)
• National Australia Bank (and its subsidiaries) • ING Bank Fortnum Financial Advisers may also use the services of Australian Financial Group (AFG), an aggregation service, to provide access to a wide range of credit products through a large range of credit providers, in addition to the credit providers listed above. If your adviser is not a Credit Representative of Fortnum Financial Advisers, any credit services they provide are not provided as a representative of Fortnum Financial Advisers. Further, Fortnum Financial Advisers is not responsible for the provision of those credit services. Please refer to the Adviser / Practice Profile for further information.
What advice and/or services can Fortnum Financial Advisers provide? Fortnum Financial Advisers’ Authorised Representatives can provide you with a broad range of advice to help you create, grow and protect your wealth. The type of advice you will receive depends on your financial situation, needs and objectives. Strategies may include: • Investment strategies, including gearing and savings plans • Budget and cash flow planning • Debt management •
Superannuation advice, including salary sacrifice and consolidation strategies
•
Personal insurance strategies
•
Centrelink / DVA advice
• Retirement planning advice • Estate planning advice • Advice on ownership and structures eg. discretionary and family trusts, Self Managed super •
Portfolio review services
• Referrals to specialists e.g. accountants, solicitors. Any additional services on offer, or limitations to the list above, will be outlined in the Adviser / Practice Profile.
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What is Fortnum Financial Advisers’ advice process? Fortnum Financial Advisers has a comprehensive advice process in place designed to ensure that the advice provided is suited to your needs and financial circumstances. In summary:
1. Our first meeting with you It’s all about you at this appointment. We will discuss your expectations, help you to identify your financial goals and provide you with details of the services that we can offer. During this meeting or at a follow-up meeting, we may also gather information about your financial situation, needs and objectives and your risk profile and ascertain what the scope of the advice to be provided will be. Your consent and agreement on the scope of the advice will be documented via a Letter of Engagement. If you do not wish to provide the information we require to formulate our recommendations, we will advise you about the possible consequences of not having disclosed your full personal information and the impact on the recommendations given. You should consider these implications carefully.
2. Developing strategies and providing you with advice documents Initial advice Your adviser will formulate a strategy to help achieve your needs and objectives and will put together any personal advice in a Statement of Advice (SoA). A SoA sets out the scope of the advice, your current personal and financial position, the basis for the advice and how it addresses your needs and objectives. It will also disclose the fees and charges payable by you and the remuneration and other benefits we may receive. The SoA will also make reference to any potential conflicts of interest that you need to be aware of when deciding whether to rely on the advice. Your adviser will explain any risks associated with implementing the recommendations. Please ask your adviser to clarify any risks you do not understand. Where credit specific recommendations are made, we generally conduct a preliminary assessment to find out if the product is suitable for you. We will then provide you with an Advice Document which will detail how the recommended credit product and strategy is suitable in addressing your credit needs. You may request, free of charge, a copy of the Advice Document within 7 years of the date of the quotation for credit assistance. If the request is made within 2 years of the date of the Advice Document, we will provide you with a copy of the Advice Document free of charge, within 7 business days. If a request is made later than 2 years from the date of the Advice Document, we will provide you with a copy of the Advice Document, free of charge, within 21 business days.
Further advice Where a further review is conducted and personal advice is provided, the advice may be provided via a new SoA, a supplementary SoA or a Record of Advice (RoA) as applicable to the circumstances. Further advice may be in the form of a RoA where the further advice does not significantly differ from the original advice provided. Where further advice is provided, and if you have not already been provided with a copy of the new SoA, a supplementary SoA or RoA, then you may, for a period of 7 years after the further advice was first provided to you, request a copy of the new SoA, a supplementary SoA or RoA. This can be done by contacting your adviser in writing, by email or telephone.
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Product Disclosure Statement If we recommend a product as part of your financial strategy, your adviser will provide you with the relevant Product Disclosure Statement (PDS). The purpose of a PDS is to assist you in making a decision about the particular financial product. It contains information about the product’s key features, benefits, risks and fees.
3. Gaining your consent to go ahead We will discuss our recommendations with you, make any changes you require and gain your agreement to implement those recommendations. We will then implement those recommendations.
4. Keeping you on track To ensure that the advice we provide you with continues to meet your financial situation, needs and objectives, we offer an Ongoing Review Service, which provides regular reviews and written reports on the valuation and status of your investment portfolio. If you wish to take up this service please contact your adviser so they can provide more information and outline their fees.
How can I make changes without being provided with advice? At times you may wish to make changes without receiving advice. In these cases, we can take your instructions by telephone, fax, email or in person at the Principal Practice office you are dealing with and arrange for the transaction to be completed, without providing personal advice. If you wish to proceed without advice from us, we will ask you to confirm your instructions in writing. Once implemented, we will provide you with a Statement of Transaction (SoT) letter which confirms your instructions, informs you that no advice has been provided, and discloses any fees and charges payable by you and any benefits we may receive.
What will I be charged for the advice provided to me? The remuneration and other benefits listed below and in the accompanying Adviser / Practice Profile generally cover what Fortnum Financial Advisers, its advisers and associates may receive as a result of the services provided to you. Specific amounts and benefits can only be calculated once the recommendations are made to you. There are various ways that you may pay Fortnum Financial Advisers for the services we provide to you, including: •
fee for service: where you pay a fee for the services that we provide
•
commission (paid by product and service providers) in the form of initial (up-front) and / or ongoing (trail) commission
•
a combination of both.
Each of these is discussed in further detail below.
Fee for service Fees for service payments may be payable for: • Initial advice: We may charge fees for the preparation, presentation and implementation of our advice to you. 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 on the fees before we provide you with advice. The fee will also be disclosed to you in your Advice Document. • Ongoing adviser services: We may charge a fee for the services provided on an ongoing basis commencing from the implementation of the recommendations contained in the Advice Document. The amount and the services included will be determined in consultation with your adviser. • Ongoing review and advice services: We may charge a fee to provide ongoing portfolio reviews including further advice suitable to your needs. This fee will be determined in consultation with your adviser.
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In all instances, your adviser will discuss the precise calculation of the fees when you meet and agree on the services to be provided. Fees charged are generally payable after the services have been provided, however, ongoing adviser service fees are paid in advance. The agreed fees will be set out in the Advice Document.
How are fees for services calculated and paid? Fees charged for our services may be: •
a dollar amount
•
a percentage of the amount invested
•
an hourly rate as set out in the Adviser / Practice Profile
•
a combination of some or all of the above.
Payment of fees for services We will discuss and agree the method of payment with you before we provide you with our services. Generally, we will either invoice you directly, or deduct from your investments, or adopt a combination of these methods for the fees payable. Cash transactions will not be accepted.
Commissions Fortnum Financial Advisers may receive payments in the form of initial commissions and/or ongoing commissions from the product providers for any product you choose to use that is recommended by us. These commissions are included in the fees and / or premiums you pay for the product. You do not pay these fees to us directly. We may, after negotiation with you, agree to rebate some or all of these.
How are commissions (initial and ongoing) from a product and service provider calculated and deducted? Initial commission from a product and service provider is typically: • Investment products: between 0% and 5.12% (including GST) of the amount invested, with the exception of some agribusiness products where it may be up to 11% (including GST). • Life insurance products: up to 125% of the first year’s premium that you pay. • Credit card contracts: No commission is received by Fortnum Financial Advisers or its Authorised Representatives when you enter into a credit card contract. •
Home loan contracts: Fortnum Financial Advisers will receive 95% of the administration fee for any home loan established through the AFG aggregation service. Fortnum Financial Advisers may then pay a proportion of this to the Principal Practice as per the table shown on page 9, with any balance being retained by Fortnum Financial Advisers
Example If you invested $10,000 in an investment product recommended to you and the applicable initial commission is 2%, then Fortnum Financial Advisers will receive initial commission of $200 (ie.$10,000 x 2%). Fortnum Financial Advisers may then pass on anywhere up to the full amount, $200 in this example, to its adviser. Some product and service providers also pay Fortnum Financial Advisers ongoing commission out of their revenue for the period of time you hold the product as follows: • Investment products: between 0% and 1.1% (including GST) of the value of your investment, with the exception of some agribusiness products where it may be up to 2% (including GST). • Life Insurance products: up to 35% of the premiums you pay after the first year. • Credit card contract: no ongoing commission is received by Fortnum Financial Advisers or its Authorised Representatives during the term of your credit card contract.
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• Home loan contracts: Fortnum Financial Advisers will receive 95% of the ongoing administration fee for any home loan established through the AFG aggregation service. Fortnum Financial Advisers may then pay a proportion of this to the Principal Practice as per the table shown below, with any balance being retained by Fortnum Financial Advisers.
Example If you invested $10,000 in an investment product recommended to you and the applicable ongoing commission is 0.4% per annum, then, Fortnum Financial Advisers would receive 0.4% pa x $10,000 ($40pa). The ongoing commission payable is dependent on the portfolio value. Fortnum Financial Advisers may then pass on anywhere up to the full amount, $40 in this example, to its adviser. All remuneration percentage rates paid from the product and service provider are dependent upon the specific products you hold, and are inclusive of GST where applicable. Specific details of the initial and ongoing commission paid from the product and service provider will be fully disclosed in your Advice Document.
What fees for services and remuneration from product and service providers does Fortnum Financial Advisers pay its Principal Practices? All fees for services paid by you and/or commission paid by product and service providers are paid to Fortnum Financial Advisers. Fortnum Financial Advisers will pay an amount to its Principal Practices which depends on the gross revenue generated by the Principal Practice over the previous 12 months. This amount will be paid in accordance with the table below. The Principal Practice may share part of this amount with its advisers. Fortnum Financial Advisers pays its other expenses from its share of these amounts and pays the balance (if any) to its associated entity Fortnum Financial Group Limited. Your Advice Document will provide further details of amounts paid to Fortnum Financial Advisers, the Principal Practice and your adviser. Gross Annual Revenue of business is between ($)
Proportion paid from Fee for Service by customers and Remuneration paid by product and service providers to the Practice (%)
0 – 400,000 85 400,001 – 1,000,000 90 1,000,001 – 4,000,000 95 Over 4,000,000 100
How is my adviser remunerated? Please refer to the Adviser / Practice Profile for details on how your adviser is remunerated. You should have a clear understanding of how your adviser is paid before you act on any recommendations.
Referral If you have been referred to Fortnum Financial Advisers by another party we may pay them a fee or reward. A referral fee and / or commission may also be payable by Fortnum Financial Advisers to a third party for the introduction of credit business. The third parties to whom referral fees may be paid include advisers within the Group who are not credit representatives, accountants, legal professionals, general insurance agents, real estate agents and other professional referral sources. A reasonable estimate of the referral fee and / or commission payable to the third party and how it is calculated will be disclosed in the Advice Document. The referral payment will be paid from the remuneration received by us and will not be an additional cost to you.
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Other Benefits Fortnum Financial Advisers and Principal Practices and/or their advisers may be entitled to other benefits when providing services to you. Fortnum Financial Advisers and Principal Practices and their advisers keep a register of small value benefits (ie $100 to $300 in value) which may be received by them from product and service providers. These benefits are permissable unless they are received frequently or similar benefits when combined exceed $300. If you would like a copy of the register, please ask your adviser and a copy will be made available to you within 7 days.
1. Product provider partnership payments Fortnum Financial Advisers receives partnership payments from product and service providers of up to 0.40% (inclusive of GST) per annum of amounts invested with the relevant providers. Of the amount received, the Principal Practice receives 60% and the balance is retained by Fortnum Financial Advisers and used in paying its expenses. As at the date of our Guide, Fortnum Financial Advisers receives partnership payments from the following product and service providers: OnePath, Colonial First State, Perpetual, Aviva, AXA and IOOF. For example, if the total revenue generated from investing with a particular provider is $100,000, the Practice receives $60,000 (ie. $100,000 x 60%) and Fortnum Financial Advisers receives the balance of $40,000 (ie. $100,000 - $60,000). Fortnum Advice Platform Trust (FAP Trust) is an entity that sponsors the Fortnum Advice Wrap. All partnership payments received by Fortnum Financial Advisers in respect of investments through the Fortnum Advice Wrap are held for the FAP Trust. Of this amount, the FAP Trust distributes payment to the Principal Practice and the balance is paid to participating Fortnum group staff. For Example, if $100,000 revenue is generated from investing with Fortnum Advice Wrap, the Trust will distribute 60% to its Principal Practices who hold Class A units in the trust (ie $100,000 X 60% = $60,000). A further 20% is distributed to participating staff who hold Class B units in the trust ( ie $100,000 X 20% = $20,000). The remaining 20% is distributed to the holders of Class C units which are held by both Principal Practices and participating staff (ie $100,000 X 20% = $20,000)
2. Product and service provider sponsorship payments Fortnum Financial Advisers may receive sponsorship payments from product and service providers. Your adviser does not receive any of these payments. Fortnum Financial Advisers may use these payments to pay for the cost of conferences, training or professional development for our advisers. The product/service provider receives a range of benefits including being recognised as a sponsor, attendance at conferences and the right to give presentations to our advisers. As at the date of our Guide, the following product and service providers make sponsorships payments to Fortnum Financial Advisers: OnePath, Asteron, Hunter Hall Investment Management Limited, CommInsure, BT Financial Group, Perpetual, Aviva Investors, AMP, Zurich, MLC, Macquarie, Colonial First State, Charter Hall Direct Property, Equity Trustees, Ironbark Asset Management, Magellan Asset Management Limited, Fidelity International and Schroders.
3. Volume bonuses (credit) Fortnum Financial Advisers and our advisers do not receive any volume bonus payments for credit business placed with particular credit providers.
Professional Indemnity Insurance Fortnum Financial Advisers is covered by professional indemnity insurance satisfying the requirements under section 912B of the Corporations Act and section 48 of the National Consumer Credit Protection Act relating to insurance obligations.
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Our insurance arrangements cover claims made against us as the licensee and for the conduct of our advisers whilst acting as our Authorised Representatives. In addition, the professional indemnity insurance policy covers claims against Fortnum Financial Advisers in relation to the conduct of representatives and employees (during their tenure as authorised representatives or credit representatives of Fortnum Financial Advisers) even if they are no longer a representative under our licence (subject to the terms of the policy in relation to providing indemnity).
How we protect your personal information We keep a record of your personal information over time, including details of your investment objectives, financial situation and needs, as well as records of any discussions of significance we may have had with you, and recommendations made. Fortnum Private Wealth Pty Ltd | ABN 54 139 889 535 trades as Fortnum Financial Advisers and is committed to ensuring the confidentiality and security of your personal information. It will be necessary for us to collect, use and disclose your personal information. If you do not consent to this, or we are unable to collect all the necessary personal information, we will not be able to provide you with the relevant financial planning and advice services or manage your investment portfolio. In most cases, we collect personal information directly from you. In other cases, however, we may collect your personal information from third parties. The third parties we may collect from include; •
Your accountant
•
Your Lawyer or solicitor
• Other financial services institutions • Insurance providers • Any other third parties where you have provided consent In order to manage and administer our financial planning services, it may be necessary for us to disclose your personal information to third parties. The parties to whom we may disclose your personal information include: •
Financial institutions for the provision of financial products such as investments, superannuation and life insurance
•
Fortnum Financial Advisers representatives for the purpose of managing your investments and financial products
• Organisations undertaking compliance review of our financial advisers or review of the accuracy and completeness of our information • Organisations providing mailing services, maintenance of our information technology systems and printing of our standard documents and correspondence. We will only disclose your personal information to these organisations to enable them to undertake the specified services. Fortnum Financial Advisers will not disclose your information for any other purpose unless you have consented. It is possible that an organisation listed above may disclose your personal information to overseas recipients, but it is not practicable for us to provide any further details of that in this document. Fortnum Financial Advisers will not disclose your personal information to overseas recipients without informing you. Your adviser may disclose your personal information to overseas recipients in order to access services they provide, such as paraplanning and administration. Your adviser will provide you with details, including the relevant countries. If you consent to this overseas disclosure, it is on the basis that Fortnum Financial Advisers has not checked that the overseas recipient complies with the Privacy Act. In some cases, it may be necessary to share your personal information with other members of the Fortnum group for the provision of certain services such as information technology or for the provision of financial products which you have selected. Where you wish to authorise any other parties to act on your behalf, to receive information and/or undertake transactions, please notify us in writing.
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Where your adviser becomes an authorised representative of another licensee or sells their business to another licensee, Fortnum Financial Advisers may also use and disclose the information collected about you to enable your adviser or the new business owner to continue to provide you with financial products and services on behalf of that other licensee. We may send you further information from time to time about Fortnum Financial Advisers financial planning services. You may elect to stop receiving such information at any time by telephoning us or by visiting our website. You may at any time, advise us that you wish to recommence receiving Fortnum information. We collect your personal information as permitted by, and in accordance with, the Privacy Act. Other legislation may also apply, such as the Anti-Money Laundering and Counter-Terrorism Financing Act. You may access the privacy policy of Fortnum Financial Advisers by visiting our website or by telephoning us. The privacy policy includes details of how you may access, and seek correction of, your personal information which we hold. It also includes details of how you may complain that we have breached the Australian Privacy Principles under the Privacy Act, and how we deal with complaints. You may contact Fortnum Financial Advisers by telephoning us on (02) 9904-2792 or by visiting our website at www.fortnum.com.au
What to do if you have a complaint If you are unhappy about the advice or service provided by your adviser or Fortnum Financial Advisers, please put your concerns in writing to: Client Liaison Manager Fortnum Financial Advisers PO Box 1899 Neutral Bay NSW 2089 We will investigate your complaint and respond to your concerns as quickly as possible and within 45 days. If we have not responded to your complaint within 45 days or if you feel it has not been resolved to your satisfaction, you may refer your concerns to the Financial Ombudsman Service (FOS), which provides an accessible, fair and independent dispute resolution service. You can contact FOS at: Financial Ombudsman Service GPO Box 3 Melbourne VIC 3001 online at www.fos.org.au; by email at
[email protected]; or by calling 1300 780 808.
What arrangements may influence the products we recommend to you? Relationships and associations The extensive list of products and services approved by Fortnum Financial Advisers includes products and services provided by entities with whom Fortnum Financial Advisers, Principal Practices or their advisers may have a relationship or association. We believe that your interests should be placed first and that products and services should only be recommended if it is in your best interests. However, it is important that you know of, and are comfortable with, those relationships and associations.
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e-Clipse UMA In addition to trading as Fortnum Financial Advisers in its financial planning division, Fortnum Private Wealth Pty Ltd (FPW) also trades as Innova Investment Services in its investment services division. FPW’s licence authorises Innova Investment Services to operate a Managed Discretionary Account (MDA) for the e-Clipse Unified Managed Account (UMA) and it does so through e-Clipse Online Pty Limited. If appropriate for your needs, advisers of Fortnum Financial Advisers may recommend services provided by Innova Investment Services, including the e-Clipse UMA. If so, this means that another division of FPW may receive benefits associated with investments you might make.
Shareholdings and other interests Principal Practices and/or their advisers (and their associated entities) (Principal Practice entities) may hold shares or have other interests in Fortnum Financial Group Limited (FFG) which indirectly gives them an interest in FPW and dividends or other benefits distributed by FPW. 60% of dividends distributed by FFG are paid to Principal Practice entities in proportion to the number of shares they hold in FFG. Principal Practice entities may hold units or other interests in Fortnum Advice Platform Trust (FAP Trust) which gives them an interest in benefits distributed by FAP Trust. 60% of distributions by FAP Trust are paid to Principal Practices in proportion to the gross revenue of FAP Trust referable to clients of the Principal Practice entity. FFG holds, and Principal Practice entities may hold, shares or have other interests in e-Clipse Online Pty Limited (e-Clipse Online) which gives them an interest in e-Clipse Online and dividends or other benefits distributed by e-Clipse Online. If appropriate for your needs, advisers of Fortnum Financial Advisers may recommend products or services sponsored by FAP Trust or provided by e-Clipse Online or entities in which employees or officers of Fortnum Financial Advisers or Principal Practice entities may be directors, officers or employees. If so, this means that Fortnum Financial Advisers or the adviser or their Principal Practice may receive benefits associated with investments you might make.
Fortnum Private Wealth Pty Ltd trades as Fortnum Financial Advisers ABN 54 139 889 535
Australian Financial Services Licence 357306 Unit 3, 36-38 Bydown Street, Neutral Bay NSW 2089 P.O. Box 1899, Neutral Bay NSW 2089
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Fortnum Principal Practice Profile
Priority Advisory Group Pty Limited
Fortnum Private Wealth Pty Ltd (ABN 54 139 889 535), AFSL 357306 (“Fortnum Private Wealth”) is a Group representing a number of like-minded advisers united in a "client-first" approach, in which all Principal Practices have an equity stake.
Authorised Representative Number: 240499
Our name comes from a combination of two words – fortress and numbers. This represents our duty to you, the client, – our strength in numbers, our commitment to building your financial future, our dedication to protecting your financial security. We represent a new approach to financial advice, delivering the highest quality financial advice based on integrity, innovation and a commitment to building your financial future. Priority Advisory Group Pty Limited (ABN 42 003 743 379) and its advisers are Authorised Representatives of Fortnum Private Wealth. Where indicated, the advisers of Priority Advisory Group Pty Limited may also be Authorised Credit Representatives of Fortnum Private Wealth, Australian Credit Licence 357306.
Our Practice has been established since 1989 providing a range of wealth advice and expertise to assist clients with every aspect of their financial situation. Our firm has a disciplined approach to helping you build and manage your plan for financial independence.
Our team Larry Fingleson B.Bus, CA Larry Fingleson is a Director and Shareholder of Priority Advisory Group Pty Limited and is its Managing Director. Larry has worked in the financial services industry for over 18 years. He joined Fortnum Financial Advisers in November 2010. Larry holds a Bachelor of Business and is a Chartered Accountant with a specialisation in Financial Planning.
David Gibson Note: This Principal Practice Profile forms an essential part of the Combined Financial Services and Credit Guide (“Our Guide”). Our Guide is not complete without it. Issued:
28/01/2015
Version:
2.9
®
CFP
Authorised Representative Number: 253112
David Gibson is a Director and Shareholder of Priority Advisory Group Pty Limited. David has worked in the financial services industry for over 30 years and has been providing personal advice since 2003. He joined Fortnum Financial Advisers in November 2010. David holds the internationally recognised ® ® Certified Financial Planner or CFP qualification. He has completed the Diploma of Financial Planning. He is a member of the Australian Institute of Management and a member of the Finance and Treasury Association and a registered Tax (financial) Adviser with Tax Practitioners Board.
1 FORTNUM FINANCIAL ADVISERS
Michael MacQuillan ®
AFP , Dip FS, FAFA, JP Authorised Representative Number: 239299
Michael MacQuillan is an employee and Shareholder of Priority Advisory Group Pty Limited.
Zvi holds a Diploma of Financial Planning and is a Financial Planner AFP® with the Financial Planning Association and is a registered Tax (financial) Adviser with Tax Practitioners Board. Zvi is currently completing a Master of Commerce.
Chad Hohnen DipFS(FP)
Michael has worked in the financial services industry since 1980. He joined Fortnum Financial Advisers in November 2010. ®
Michael is a Financial Planner AFP with the Financial Planning Association of Australia; a Fellow of the Association of Financial Advisers Ltd; a Life & Qualifying Member of Million Dollar Round Table; a registered Tax (financial) Adviser with Tax Practitioners Board; and he holds a Diploma of Financial Services and a Diploma of Life Insurance and is a Justice of the Peace.
Rob Hustler
Authorised Representative Number: 452270 Chad Hohnen is an employee of Priority Advisory
Group Pty Limited. Chad has worked in the financial services industry since 2008 beginning as a paraplanner. Chad continued in this role for 3½ years before becoming a financial adviser. Chad holds a Diploma of Financial Services (Financial Planning), and is a registered Tax
(financial) Adviser with Tax Practitioners Board
DipFS(FP), B.Ec, CPA
and is completing a Bachelor of Accounting/Financial Planning.
Authorised Representative Number: 339932
Chris (Riste) Jurukovski
Rob Hustler is an employee and Shareholder of Priority Advisory Group Pty Limited. Rob has worked in the financial services industry since 1982. He joined Fortnum Financial Advisers in November 2010. He holds the Diploma of Financial Services (Financial Planning) and also holds a Bachelor of Economics degree. Rob is a Certified Practising Accountant and a registered Tax (financial) Adviser with Tax Practitioners Board.
Zvi Teichtahl ®
AFP DipFP
B.Bus (EconFin), DipFP Authorised Representative Number: 309044 Chris Jurukovski is an employee of Priority Advisory
Group Pty Limited. Chris has worked in a variety of advice and management roles with the financial services industry. He specialises in offering both personal and business advice associated with a client’s wealth protection needs. Having been in the advice industry for over 15 years, Chris has been able to assist varying clients (private, SME and large corporate clients) in establishing their required protection needs, as well as structuring benefits appropriately to meet their needs of their clients.
Authorised Representative Number: 401926 Zvi Teichtahl is a Director and Shareholder of Priority Advisory Group Pty Limited. Zvi has worked in the financial services industry since 2000 and held various positions in the industry, in both Melbourne and Sydney, ranging from financial planning management in one of the big four banks, through to advising clients in a highly reputable boutique financial advice firm. He joined Fortnum Financial Advisers in March 2011.
2 FORTNUM FINANCIAL ADVISERS
Products Offered
Client Fees
The advisers noted in this profile are authorised to provide financial product advice to their clients and deal in:
There are various ways that you may pay for the services that are provided.
Deposit and payment products
Derivatives
Life investment or life risk products
Interests in managed investment schemes, including investor directed portfolio services (IDPS)
Retirement savings accounts
Securities
Superannuation In addition, David Gibson, Michael MacQuillan, Robert Hustler, Zvi Teichtahl and Chad Hohnen are authorised to provide advice in relation to: Standard margin lending facility
Services Offered The advisers noted in this profile are able to offer their clients the following services:
Investment strategies including gearing and savings plans
Budget and cash flow planning
Debt management
Superannuation advice, including salary sacrifice and consolidation strategies
Personal insurance strategies
Centrelink / DVA advice
Retirement planning advice
Estate planning advice
Advice on ownership and structures eg. Discretionary and family trusts
Portfolio review services
Ongoing advisory services
Referrals to specialists, eg. Accountants, solicitors
In addition, Zvi Teichtahl, Rob Hustler and David Gibson are authorised to provide advice in Self Managed Superannuation Funds and ASX Listed Securities.
Fee for advice
Commissions from product and service providers
A combination of the above
Your adviser will obtain your agreement to the arrangement prior to proceeding.
Fee for Advice The cost of the first meeting will be borne by Priority Advisory Group Pty Limited. It is an opportunity for you, our prospective clients, to get to know us, our advice philosophy and ask whatever questions you have. It provides us with an opportunity to understand you, your long term goals and objectives and any key issues we need to be aware of to provide wise advice. The first meeting is ideally held with both parties to a couple in order to ensure joint goals are understood and ultimately achieved. Once we are in a position to identify your current position and have agreed the key issues to be addressed, we will provide a fixed annual fee for our services. The quantum of the fees and duration of the term may vary based on complexity. Work will commence once this has been agreed. In addition to the fixed fee, should any commissions be payable by insurers for policies placed, these will be fully disclosed and retained by our practice. Should investment portfolio advice and monitoring be required a further ongoing management fee may apply – these would be discussed, disclosed and agreed to, prior to any service commencing.
All fees are annually renewable and reviewable we only seek to provide advice where we add significant value.
3 FORTNUM FINANCIAL ADVISERS
If you pay a fee for advice to Fortnum Private Wealth, they may pay a proportion of this to Priority Advisory Group Pty Limited as detailed in Our Guide under the heading ‘Commissions’. If your adviser receives a proportion of this remuneration they will inform you of the amount at the time they provide you with advice.
Commissions from product and service providers Commissions may be paid to Fortnum Private Wealth by product and service providers who, in turn, may pay a proportion of this to Priority Advisory Group Pty Limited as detailed in Our Guide under the heading ‘Commissions’. If your adviser receives a proportion of this remuneration they will inform you of the amount at the time they provide you with advice. A combination of fee for advice and remuneration from product and service providers may be payable.
Other benefits Your adviser may also receive other benefits, all of which are detailed in Our Guide under the heading ‘other benefits’. Your adviser is also required to keep a register of small value benefits (i.e. $100 to $300 in value) which may be received by them from product and service providers. These benefits are permissible unless they are received frequently or similar benefits, when combined, exceed $300. These registers are available at your adviser’s office for inspection with 7 days’ notice.
Contact details If you would like to make an appointment, please contact our office on: Phone: (02) 9415 1611 Fax: (02) 9415 2002 Address: Level 4, Tower B, 799 Pacific Highway, Chatswood NSW 2067
Adviser Remuneration The advisers noted in this profile may be remunerated by one or more of the following methods. If any are relevant to the advice provided to you, further details will be set out in your advice document.
Salary
Your adviser may be paid a salary based on experience and capability.
Bonus
Your adviser may be eligible to receive a bonus based on a combination of revenue and other non financial measures that relate to compliance, staff training and the quality of service.
4 FORTNUM FINANCIAL ADVISERS
Privacy Statement & Tax File Number Declaration Introduction Fortnum Private Wealth Pty Ltd (FPW) and its Principal Practices and associated entities (Fortnum group members) take very seriously our obligations under the Commonwealth Privacy Act (Privacy Act) to protect your personal information. Under the Privacy Act, we are bound by the National Privacy Principles, and in this Privacy Policy, we describe how we intend to meet our privacy obligations.
Personal Information The Privacy Act sets out the information that it protects. Personal information generally means information or an opinion about a person, where the person's identity can be derived from the information or opinion. Some types of personal information are "sensitive information". Sensitive information means a person's health and genetic information. Other forms of sensitive information, for example, an opinion about a person's:• racial or ethnic origin; • political opinions; • membership of a political association; • religious beliefs or affiliations; • philosophical beliefs; • membership of a professional or trade association; • membership of a trade union; • sexual preferences or practices; or • criminal record will seldom be relevant for collection by FPW or Fortnum group members (other than some information which may be required for insurance applications).
Personal information collected FPW and Fortnum group members only collect information that is relevant to, and necessary for, the financial and other servic es FPW and Fortnum group members provide you. The kind of information we will be likely to collect includes your name, address and contact details, your date of birth and details about your financial circumstances, goals and strategies.
Consequences of not providing your personal information You are not obliged to give us your personal information. However, if you decide not to give us information your Fortnum group member needs in order to provide you with services, FPW and your Fortnum group member may not be able to provide those services to you.
How your personal information is collected FPW and your Fortnum group member will usually only collect your personal information directly from you, for example, by interviews with you. It may be necessary to collect personal details from third parties, for example, issuers or operators of financial products or financial services. If we collect sensitive information, we will not do so without your consent (subject to some exceptions, for example where collection is required by law). However we will endeavour to collect such information directly from you wherever practicable. When we collect personal information about you, we will tell you why it is being collected, the organisations, or the types o f organisations, to whom we usually disclose that kind of information, any law that requires the information to be collected, and the main consequences for you if the information (or part of the information) is not provided. We will also give you our contact details and tell you about how you can access the information.
How your personal information is used Personal information is collected so that FPW and your Fortnum group member can provide you with services you request. This i s known as the "primary purpose" for collection of personal information. FPW and your Fortnum group member cannot use or disclose your personal information for any secondary purposes unless certain circumstances apply. Generally, we can use or disclose personal information for a secondary purpose where you give us your consent to do so; or • the secondary purpose is related to the primary purpose of collection (where the information is sensitive information, it must be directly related to the primary purpose); and
Priority Planners (Aust) Pty Ltd ABN 42 003 743 379 PO Box 1117, Chatswood NSW 2057 p. +612 9415 1611 f. +612 9415 2002 www.priorityplanners.com.au
Priority Planners (Aust) Pty Ltd and its advisers are authorized representatives of Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306 trading as Fortnum Financial Advisers. www.fortnum.com.au
• you would reasonably expect us to use or disclose the information for the secondary purpose. The types of secondary purposes for which we would ordinarily use or disclose your personal information include contacting you regarding other services that we believe may be of interest to you. We will also use or disclose information where such use o r disclosure is required by law, or is necessary in relation to dealing with unlawful activity or threats to life, health or safety. Some of the uses described above will require disclosure of your personal information to third parties. Some examples of when this wo uld be required include for the purpose of providing you with services. The likely recipients would be the issuers or operators of financial products or financial services and providers of office and related services to us. We will require that any third parties to whom we disclose personal information will only use that information for the purposes for which we disclosed it to them and on the ba sis that they will comply with their privacy obligations. If your Fortnum group member moves to another Australian Financial Services Licensee, we may provide your personal information to the other licensee to enable your Fortnum group member to continue providing you with services.
Data quality and protection FPW and your Fortnum group member will take reasonable steps to make sure all personal information we collect, use or disclose is accurate, complete and up-to-date at all times. We will also take reasonable steps to protect your personal information from misuse and loss, and from unauthorised access, modification and disclosure. Once your personal information is no longer required by us, we will take reasonable steps to destroy or permanently de-identify that personal information.
Data access and correction If you think the personal information FPW and your Fortnum group member have about you is not accurate, complete or up-to- date, you should contact us, and if you provide us with sufficient evidence, we will take reasonable steps to correct the information. Also, please let us know any relevant changes to your personal circumstances as soon as possible. If you require access to personal information we hold about you, please send us an email to
[email protected]. We will generally allow access, unless certain exceptions apply - for example, if providing access would pose a serious and imminent threat to the life or health of any person, providing access would prejudice action being taken by an enforcement body, or providing access would be unlawful. Your request should specify the information to which you require access. We will keep a record of your request for access and the manner in which it was dealt with. We will not charge you for requesting access to your personal information. We may, however , charge you the costs associated with meeting your request, for example photocopying and postage costs. We will aim to respond to your request within 2 days of receipt of your request. If we cannot meet your request for access or correction, we will provi de reasons by email.
Anonymity You can contact us anonymously. However, being unable to identify you will limit the services your Fortnum group member can provide you.
Complaints and further information If you would like further information about how we handle your personal information, please send us an email to
[email protected]. If you wish to make a complaint in relation to privacy, please put your concerns in writing to:The Compliance Manager Fortnum Private Wealth Pty Ltd PO Box 1899 Neutral Bay NSW 2089 Telephone: 02 9346 4686 FPW will investigate your complaint and respond to your concerns as quickly as possible and within 45 days.
Policy review This policy will be reviewed at least annually.
Tax File Number Declaration I give permission for you to retain my tax file number (s), as provided by me or via my tax information being made available to you, and for it to be forwarded to financial institutions as requested or as necessary.
