Financial Services Guide

PART 1 – A GUIDE TO OUR RELATIONSHIP WITH YOU

The purpose of this Financial Services Guide is to help you decide whether to use the financial services that we provide on behalf of Qi Financial Pty Ltd [ABN 11 124 979 666][AFSL 313217].

You should read this Financial Services Guide carefully before using our services. It sets out information about:

  • The services we offer
  • The cost of our services
  • Our association with product issuers
  • Our service commitment to you
  • Your avenues for queries or complaints
  • Our compensation arrangements
  • Profile of your financial adviser

WHO IS RESPONSIBLE FOR THE FINANCIAL SERVICES PROVIDED?

Qi Financial Pty Ltd (Qi Financial) holds Australian Financial Services Licence Number 313 217. Qi Financial is responsible for the financial services provided and has authorised the distribution of this Financial Services Guide (“FSG”). This FSG is made up of Part 1 – A Guide to Our Relationship with You, which should be read in conjunction with Part 2 – Adviser Profile.

Qi Financial is authorised to advise on and arrange the following classes of financial products:

  • Basic deposit products;
  • Derivatives;
  • Debentures, stocks and bonds issued by a government;
  • Life insurances and other risk insurances;
  • Managed investment schemes including Investor Directed Portfolio Services;
  • Managed Discretionary Account services;
  • Retirement savings account products;
  • Securities;
  • Standard margin lending facilities; and
  • Superannuation.

WE WILL PROVIDE YOU WITH A STATEMENT OF ADVICE WHEN PROVIDE YOU WITH PERSONAL FINANCIAL ADVICE.

The process of financial planning involves translating your personal financial affairs and life goals into a written plan called a Statement of Advice. A Statement of Advice is designed to help you determine whether and how you can meet your financial needs and life goals through the proper management of your financial resources. The Statement of Advice includes information about:

  • our specific advice;
  • the basis for our advice;
  • any remuneration, commissions and other benefits that we may receive;
  • any associations or relationships that may influence the advice; and
  • any other relevant information.

Your Adviser will give you a Statement of Advice, before proceeding to act on your instructions. If you receive advice in a time critical situation, the Statement of Advice will be provided within 5 days of the advice.

When we provide you with further advice which is directly related to our original advice, we will provide you with a Record of Advice, provided there has been no change in your personal circumstances or the basis of the advice set out in the Statement of Advice.

We will retain all Statements of Advice and Records of Advice for at least seven years and you may request a copy of the Statement of Advice or Record of Advice at any time within that period. This request may be verbal or in writing.

WE WILL PROVIDE YOU WITH A PRODUCT DISCLOSURE STATEMENT WHEN WE RECOMMEND A SPECIFIC FINANCIAL PRODUCT.

When we recommend a particular Financial Product we will give you a Product Disclosure Statement (PDS). A PDS contains information prescribed by law to enable you to make an informed decision before acquiring a Financial Product.

The PDS also contains details regarding the costs and product fees, including commissions, and is usually created by the financial institution providing the product.

INFORMATION YOU NEED TO PROVIDE US TO RECEIVE PERSONAL ADVICE.

You need to provide us with details about yourself, your family, your life goals and your current financial situation. We also need details about your health, your current investments, risk protection and your attitude to investing, including the level of financial risk you are comfortable with. A good Statement of Advice relies on good information. Your information helps us offer you the most appropriate advice possible.

You have the right not to provide this information. However, if you do not, we are required to warn you about the possible consequences that the advice you receive may not be appropriate to your individual needs, lifestyle objectives and financial goals.

HOW CAN YOU GIVE US INSTRUCTIONS ABOUT YOUR FINANCIAL PRODUCTS?

You may tell us how you would like to give us instructions. This can be in writing, fax, email, letter or another method as agreed by us.

WE WILL EXPLAIN THE RISKS ASSOCIATED WITH THE STRATEGIES AND FINANCIAL PRODUCTS WE RECOMMEND TO YOU.

We will explain all significant risks associated with the strategies and financial products we recommend to you. If you do not fully understand the risks, you should ask us to explain those risks further.

HOW ARE OUR FEES, COMMISSION OR OTHER CHARGES CALCULATED?

When you receive personal advice, your adviser will tell you about any platform payments, fees, commission and any other benefits, where possible in actual dollar amounts in the Statement of Advice.

We may charge you a fee for any personal advice provided. This may be based on the time we spend developing your Statement of Advice, or depending on the value of funds you invest. We will advise you of our fee prior to you engaging our services. We will issue a tax invoice for the agreed amount.

We may also agree that you will pay us a management fee annually, or as negotiated, by installments.

INITIAL FEE

Generally the payment of initial fixed fee ranges from $3,300 to $22,000 and from 15.0% to 110.0% (plus GST) on the first years premiums on risk products. It may vary from one Financial Product issuer to another.

ONGOING FEES

An Annual Service Fee of $1,200 +GST per entity will be charged as a simple, monthly direct debit of $100 +GST per month. Additional fees may be applied dependent on the service provided. This will be advised prior to any additional work undertaken.

Ongoing fees on investments will generally range from 0.0% to 1.1% of your investment.

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Qi Financial and its authorised representatives may receive initial or ongoing commission based on the placement of your home loan or payment of your insurance premium. These amounts are to be paid to Qi Financial by the financial institution and or the life company. Ongoing commission will generally range from 0.15% (plus GST) on home loans and 80.0% to 20.0% (plus GST) of each year’s premium on risk products (i.e. insurance).

Qi Financial Pty Ltd receives 100% of all fees and commission.

BENEFITS

Fund managers and life companies may also provide financial support for professional development training, business tools such as financial planning software and compliance services. The value of these benefits would not exceed $5,000 per representative per annum.

All known non-monetary benefits received in relation to a financial product recommendation will be disclosed in our Statement of Advice. We also maintain an Alternative Remuneration Register. This register lists non-monetary benefits greater than $300 in value and is available upon request.

WILL ANYONE BE PAID FOR REFERRING ME TO YOU?

Where you have been referred to us by someone else, if we pay them a fee or commission in relation to that referral, we will tell you in the Statement of Advice who will receive that fee or commission and the amount they will receive.

ASSOCIATIONS WE HAVE WITH PRODUCT ISSUERS

We can arrange the issue of financial products from an extensive range of approved financial product issuers. However your adviser will only recommend that you acquire Qi Financial’s Approved Products.

Premium Choice may receive a benefit attributable to the financial services provided by the adviser in the form of future payments from MLC. The amount of any such benefit will vary depending on the Funds remaining invested with Premium Choice by investors in the fund before 1 July, 2014. It will be dependent on future events and cannot be determined at this time. An associate of your adviser may receive a portion of this benefit. Such portion will be discretionary and cannot be determined at this time.

YOUR INFORMATION AND RIGHTS TO PRIVACY

We understand the importance of protecting your rights to privacy. In handling your personal information we are subject to the Privacy Act 1988 and we comply with the Australian Privacy Principles.

We are required by law to collect personal information about you for the purpose of providing advice. We also maintain records of any recommendations made to you. We are required by law to retain these records for a period of seven years.

In the event we consider it necessary to use or disclose information about you for purposes other than those detailed above, we will seek your consent. A copy of our Privacy Statement can be obtained by phoning us on (02) 8247 2700.

If you are not satisfied with our approach to privacy, we offer a few internal complaint resolution schemes. Should you have a privacy complaint, please contact us to discuss your concerns.

You are also entitled to contact the Office of the Privacy Commissioner who may investigate complaints you may make.

WHAT SHOULD YOU DO IF YOU HAVE A COMPLAINT?

There are avenues open to you if a dispute or complaint arises; however, we hope that you will raise any query or complaint with us and that it can be resolved to your satisfaction.

If you have a complaint about the service provided to you, you should take the following steps.

  1. Contact us and tell us about your complaint.
  2. If your complaint is not satisfactorily resolved within 5 days, please contact our Complaints Officer on (02) 8247 2700 or put your complaint in writing and send it to:

Qi Financial Pty Ltd
Level 7, 32 Martin Place
Sydney NSW 200

   We endeavour to resolve all complaints quickly and fairly.

  1. If your complaint is not resolved to your satisfaction you have the right to refer the matter to the Financial Ombudsman Service Limited (FOS). They can be contacted on 1300 780 808 or you can write to:

The Manager
Financial Ombudsman Service Limited
GPO Box 3
Melbourne VIC 3001

  Alternatively you may call the ASIC Info line on 1300 300 630 between 9am and 8pm Monday to Friday.

OUR COMPENSATION ARRANGEMENTS

We hold a Professional Indemnity Insurance Policy which satisfies the requirements for compensation arrangements under section 912B of the Corporations Act. Subject to its terms and conditions, the Policy provides cover for civil liability resulting from third party claims concerning the professional services provided by Qi Financial and its employees and representatives. This Policy covers professional services provided by employees and representatives of Qi Financial while they are in our employ, even where that employee or representative has subsequently left our employ.