Global Progress Financial Services Pty Ltd
FINANCIAL SERVICES GUIDE
Version 5 1 May 2014
Your Adviser
John Krawc
Global Progress Financial Services Pty Ltd ABN 94 151 865 084
34 New North Rocks Rd; North Rocks NSW 2151
MOB 0422 813 656
Tel: (02) 8812 2977 Fax: (02) 8812 2657
Email: [email protected]
Dover Authorised Representative Numbers 360916 (John Krawc) and 409139 (Global Progress Financial Services Pty Ltd )
Authorised Representative
Dover Financial Advisers Pty Ltd AFSL: 307248
ABN: 87 112 139 321 71 Tulip St Cheltenham, VIC 3192 PO Box 68 Sandringham, VIC 3191
Telephone: (03) 9583 6533 Fax: (03) 9583 6733
About your Adviser and Dover Financial Advisers Pty Ltd (“Dover”)
Your Adviser is John Krawc. Your Adviser is employed by Global Progress Financial Services Pty Ltd, a Corporate Authorized Representative of Dover. Your Adviser is the “providing entity” for the purposes of the Corporations Law. The Adviser is an authorised representative of Dover.
Dover holds Australian Financial Services Licence (‘AFSL”) Number 307248 and has authorised the creation of this Financial Services Guide or FSG.
Dover has over 150 authorised representatives who provide high quality advice of clients throughout Australia. Your Adviser has many years experience creating and implementing financial plans to maximize client financial profiles.
Your Adviser and Dover may advise on:
• investments (shares, cash and managed investments); • superannuation (including self-managed superannuation); • life insurances and other risk insurances;
• debt management;
• cash-flow management; and • retirement planning.
Including
• Wealth Accumulation • Income & Asset Protection • Tax Strategies • Superannuation • Redundancy Planning • Estate Planning • Government Benefits • Debt Management
and to provide advice and deal in the following financial products: • Basic Deposit Products
• Non-basic Deposit Products • Non-cash Payment Facilities
• Life Products – Investment Life Insurance • Life Products – Life Risk Insurance • Superannuation
• Retirement Savings Accounts
• Managed Investment Schemes, including Investor Directed Portfolio Services (IDPS) • Government Debentures, Stocks or Bonds
• Securities
• Business Transition • Business Insurance • Borrowing by SMSFs • Margin Lending • Corporate Super • Estate Planning • Gearing to investments • ReverseMortgage
The Corporations Act 2001 defines various financial products and regulates the way in which consumers can be advised about those products. Dover has a list of approved financial products for authorised representatives. This list of approved financial products is one of the longest of any financial planning service in Australia. Ask your Adviser if want a copy of Dover’s Approved Product List (“APL”).
The purpose of this financial services guide (“FSG”)
This FSG is an important document that explains how we provide financial product services to you and your responsibilities as a client and this forms part of our contract with you.
You should read this FSG carefully before using our services. It is intended to give you sufficient information to decide whether to obtain financial services from us.
Most of the content of this FSG is dictated by the Corporations Act and is mandatory under that law, so bear with us regarding its form and content. Please feel free to contact us by telephone, e-mail or writing should this FSG be unclear or should you have any concerns about our services. This FSG explains:
1. who we are;
2. how you can contact us;
3. what documents you will receive from us; 4. the financial services we provide;
5. your responsibilities as a client; 6. any potential conflicts of interest; 7. our privacy policy;
8. our internal dispute resolution procedures; 9. our external dispute resolution procedures; and
10. our compensation arrangements, i.e. our professional insurance arrangements. Product disclosure statements (“PDSs”)
The PDS detail costs and product fees including commissions, and is usually created by the financial institution providing the product.
Getting started with Dover
Getting started with Dover is easy. Simply contact your Adviser to arrange a meeting.
To ensure that this meeting covers all aspects of your financial management we ask that you complete the ‘fact finder’ attached to this Financial Services Guide. Ideally, this should be done a few days before we meet with you. This gives us the opportunity to review your information and prepare ourselves well ahead of our initial meeting.
The fact finder asks for an extensive amount of information and it may take time to gather it. Please take the time to do this.
We also appreciate a copy of the most recent accounts and tax returns for you and any related entities such as a trust or a self-managed superannuation fund.
Please provide us with any other information that you feel is relevant to your circumstances. Getting to know you
We aim to provide advice that suits your circumstances and is generally appropriate and relevant to you. To do this we must first understand your financial profile.
A detailed client questionnaire (‘fact finder’) is attached to this FSG. This fact finder is an important document and you should complete it carefully, either before or during our first meeting. The more information you provide the better our advice will be.
Dover ethics
Dover Financial Advisers Pty Ltd, its directors and staff and each representative ("Dover") are actively committed to a code of ethics designed to achieve best practice in financial planning by emphasising your rights and entitlements as a client at all times.
Observing a formal code of ethics is a mark of a professional person. The Dover code of ethics includes compliance with the Corporations Act 2001, ASIC's regulatory guidelines and similar laws, and extends to a more demanding code of behaviour designed to enhance the standing and perception of Dover with you, the public and the financial planning profession.
Fiduciary duty
We accept a fiduciary duty, or a duty of utmost good faith, to each client. This means your interests are paramount and dominate the Dover financial planning process.
We will do all things necessary to ensure the best possible results for you at all times and we will not be placed in a position where there is an undisclosed or unresolved conflict of interest.
We exemplify integrity and fairness in all client relationships.
We accept your trust, and will honour that trust by displaying integrity, fairness, honesty, candour and personal integrity at all times.
and privacy
Your client information will be secured and access controlled in accordance with professional standards of complete confidentiality and privacy laws and regulations.
All Dover advisors provide copies of statements of advice, fact finders and related documents to Dover to allow it to satisfy the requirements of the Corporations Act and ASIC's requirements regarding the retention of financial advice records.
Knowledge standards
We commit to a high standard of continuing professional education and training including private reading and research, regular attendance at technical and professional training and constant study of the Corporations Act rules and regulations concerning the financial planning process and related fields.
We commit to an on-going process of self-improvement in the preparation and delivery of financial services to you and other clients.
We confirm our on-going professional education and training, including our formal training plans, provided by Dover have been assessed as relevant to our individual practices and the needs of our clients.
We observe all laws and regulations applying to financial planning and in particular the financial planning process and the preparation of statements of advice and similar documents for clients. We affirm that we have read and understood the Dover Compliance Manual and Advisor Handbook and have agreed to observe and be bound by all procedures contained in it. This includes client complaint procedures and breach reporting procedures. We agree that it is a condition of our contract with Dover to observe all the requirements set out in the Dover Compliance Manual and Advisor Handbook.
We affirm that we have read and understood all written communications provided to us by Dover and will comply with Dover's requirements regarding professional standards and the conduct of our practices.
Delivery of advice
Once we have met and determined a draft plan for you, we will prepare a ‘statement of advice” or “SOA” .The SOA will be in writing and may be delivered via email or via the post, as you prefer. Your SOA contains the information needed to understand our advice and the basis on which it is made. It includes information about:
1. the specific advice;
3. any fees;
4. any associations or relationships that may influence the advice; 5. the implementation plan; and
6. any other relevant matters.
We will also provide other documents as needed. These documents may include educational material or PDSs, as discussed above.
Record of advice
Once you have been provided with a SOA further advice may be provided in a form known as a record of advice or “ROA”, provided there has been no change in your personal circumstances or the basis of the advice set out in the SOA.
Retention of SOA and ROA
We retain all SOAs and ROAs for at least seven years and you may request a copy of the SOA or ROA at any time within that period. This request may be verbal or in writing.
Implementation of advice
Our statement of advice will contain instructions on how the advice should be implemented. We will work with you to ensure that the advice is properly implemented.
Minimum holding period on investments
All investments recommended should be held for a minimum period of at least ten years or as otherwise stated in the SOA notwithstanding any statement made by the product issuer or any other person in a product disclosure statement or similar document.
Your responsibilities as a client
We will ensure that our advice is in your best interests and is appropriate to you at the time it is provided. However, certain aspects of our advice are largely outside our control and are mainly within your control. Therefore responsibility for these matters largely remains with you.
You are responsible for ensuring that our advice remains in your best interests and appropriate to you over time. You must notify us in writing immediately should your personal circumstances change or should general economic conditions or legislation change in a way that affects our advice to you.
You are responsible for ensuring your bank account and investment account details including account numbers, passwords and personal identification numbers are kept confidential, are stored safely and not recorded in a form that can be accessed by other persons including access by hacking computers, are not provided to any person, including your adviser, and are changed on a regular basis and at least once a month. You are solely responsible for any losses caused by a misuse of this data by any person, including cyber fraud or any other form of fraud.
Time limits and responsibility for implementing our advice
You should not act on any recommendation after thirty days of the date of the statement of advice without our written confirmation that our recommendations are still suited to you.
No responsibility will be taken for any advice acted on after thirty days without our separate written confirmation that the advice is still suited to you.
We will not be responsible for any losses connected to our advice if it is not implemented by us, if you do not engage us as your adviser or if you cease to engage us as your adviser.
Regular review of our advice
Economic and legislative environments constantly change and personal circumstances constantly change. This means our advice must be reviewed on, and if necessary, changed on an on-going basis to ensure it remains appropriate and in your best interests.
You are responsible for ensuring our advice remains appropriate to you and in your best interests. You should undertake to request in writing an up-dated statement of advice from us at least every six months or whenever your personal circumstances, including your attitude to risk, change. We will not be responsible for any losses incurred by you as a consequence of any act or omission by us after 6 months from the date of the statement of advice.
Cooling off period
There may be a cooling off period of 14 days on any financial products including insurance products we may recommend and you may change your mind without penalty during this period if you acquire such a product.
Dispute resolution
Dover provides a dispute resolution services to its clients. This obligation is a key tenet of the consumer protection principles of the Australian Financial Services Licensing system.
If you have a complaint about any services you should:
1. contact your Adviser by telephone to explain your situation and let him know of your concerns. Your Adviser will do everything possible to resolve your complaint promptly;
2. if this does not resolve your complaint, put your complaint in writing addressed to Dover Compliance at PO Box 68, Sandringham, Victoria, 3191 where it will be objectively considered and discussed with you and your Adviser with a view to being settled as soon as possible to your satisfaction; and
3. if your complaint is not resolved appropriately by Dover, you can access our external dispute resolution scheme. Dover is a member of the Financial Ombudsman Service (FOS). FOS can be contacted on 1300 780 808. This is a free service to complainants.
Our fees and other charges: who receives the fees?
Dover receives a monthly payment from your Adviser and does not receive any other payment from any person in respect to the services provided to you by the Adviser. Any commission received by Dover is passed on to your Adviser.
Your Adviser will provide you with full details of all fees before doing any significant work for you. Fees will be explained in your meeting and detailed in a statement of advice. Your adviser will also provide you with a detailed breakdown of ongoing fees on an annual basis in a fee disclosure statement.
If your Adviser is employed by a Corporate Authorised Representative your Adviser may be paid a salary or receive profit share from fees and commission paid to that Corporate Authorised Representative.
In the following paragraphs we will refer to your Adviser receiving all fees, for simplicity. Our fees and other charges: how are they calculated?
Our agreed advice fees may include charges for: 1. Initial advice; and/or
1. fees paid directly by you, based on time, the amount invested or some other agreed criteria; and/or
2. a set dollar amount or percentage-based fee that is agreed between you and us and paid via your product; and/or
3. For services in relation to life insurance, banking deposit products, some loan products and older investment products, commissions may be paid by the product provider as follows:
i) commission as a percentage of the value of your investment contributions, loan balance or insurance premiums; and/or
ii) commission – a percentage of the value of your investment balance, outstanding loan amount of premiums, usually calculated at the end of each month in which you hold the investment or loan, or on renewal of insurance products.
(For example. for life insurances and other risk insurances: up to 120% of the initial annual
premium as an initial commission and up to 15% of the ongoing annual premium as a trailing commission. If the annual premium for a life insurance policy is $1,000, your
Adviser may receive $1,200 in the first year and then $150 each year thereafter)
Your Advisor may also provide you with a personally tailored service agreement or letter of engagement. This agreement or letter may contain details in relation to the initial and/or ongoing service offering and fees and should detail the actual remuneration arrangement between you and your Advisor. Your Advisor will provide you with further details where relevant.
Your Adviser will agree a basis for charging fees before providing any chargeable services to you. Your Adviser does not receive ‘soft dollar’ (ie non-cash) payments for amounts greater than $100 from any third party.
Your Advisor may receive a volume bonus from IOOF (up to 0.2%) and Colonial (up to 0.2%) on any investments with these organisations. You can ask for further details if this is of concern or interest to you. These details will be provided on request.
Fees will be advised in detail in writing in your SOA. Fees will also be advised in detail in the PDSs for recommended financial products.
Referrals
If any fees are paid to a third person for referrals these fees will be provided in your SOA. Salaries to staff and other servicesour Statement of Advice provided to you.
Examples
Initial consultation $250.00 if complex scenario discussed i.e. more than 5hours other ways Free of charge Advice preparation If you elect to pay us a fee for advice the following fees will apply. The fees will depend on the
size of the investment portfolio and the complexity of the advice:
We ask for a $400 deposit when you engage us to prepare your financial plan, and the rest to be paid upon completion of your plan.
The minimum fee charged is $660 while the maximum fee is $22,000.
Implementation (fee for advice) If you elect to pay us a fee for advice the following fees will apply. The fees will depend on the size of the investment portfolio and the complexity of the advice:
Portfolios less than $100,000: Implementation fee of between $660 and $3,300 Portfolios $100,000 - $300,000: Implementation fee of between $2,200 and $7,700 Portfolios in excess of $300,000: Implementation fee of between $5,500 and $20,000 If you elect to pay us a fee for service the following fees will apply( The fees will depend on the size of the investment portfolio and the complexity of the advice):
We offer the following advice and services on a fixed cost basis: • Bronze ongoing advice and service package: $660 p.a. • Silver ongoing advice and services package: $1,320 p.a. • Gold ongoing advice and services package: $3,000 p.a. • Platinum ongoing advice and service package: $5,000 p.a.
You may pay fees by credit card, direct debit, cheque or debit from your investment account. If an agreed advice fee is charged then we may rebate all or some of the commission as agreed between you and us and paid via your product.
Ongoing fee for advice If you elect to pay a fee for the ongoing review of your financial planning strategy, the ongoing fee is based on the complexity of ongoing advice and the services provided. The minimum fee is $660 while the maximum is 3% of the value of your portfolio each year. You may elect one of our packages, described later in this FSG.
Ad hoc advice Where you do not wish to participate in an ongoing service fee arrangement but require ongoing advice on an ad hoc basis, an hourly fee of between $165 and $330 may apply. Margin loans If the relevant product issuer will pay an ongoing commission between 0% and 0.88% of the
outstanding loan balance. Commissions are paid to us by the product provider and are not a direct cost to you.
Insurance products If he relevant insurer will pay initial commission between 0% and 120% and ongoing
commission between 0% and 33% of the annual premium for as long as you hold the product. Commissions are paid to us by the product provider and are not a direct cost to you.
Pre-existing arrangements For existing clients already in an established commission arrangement, we may receive commission on investment products held. The relevant product issuer will pay initial commission between 0% and 5.5% and ongoing commission between 0% and 0.88% of the value of your investments for as long as you hold the product. Commissions are paid to us by the product provider and are not a direct cost to you.
Ongoing fee for service:
If you elect to pay a fee for the ongoing review of your financial planning strategy, the ongoing service fee is based on the complexity of ongoing advice and the services provided. The minimum fee is $660p.a while the maximum is 3% plus GST p.a. of the value of your portfolio each year. We will receive ongoing commission (for any life insurance products you have in addition to this fee.
Bronze Service Package ($660) covers:
• Annual financial health-check & tax effective strategies a session; • Access to Adviser by phone & email;
• Email newsletter;
• Dealing with ongoing service request such as Centrelink/DVA paperwork, liaison with tax advisors, solicitors, banks,
insurance company and fund managers on your behalf;
• Two free Financial Health Check for family members and friends Silver Service Package ($1,320) covers:
• All those listed in Bronze package plus…
• One basic annual review either at your request or at a pre-arranged date to ensure that your strategy is still appropriate and it covers any necessary changes. You can elect to have this review written or verbal; • Quarterly newsletter sent by post;
• Quarterly written report of your investment performance; • Free invitation to our client seminars.
Gold Service Package ($3,000) covers:
• All those listed in Silver package plus…
• Comprehensive written annual review of your financial plans; • Half yearly face to face review to ensure that you are still on track. Platinum Service Package ($5,000) suitable for SMSF & small business client: • All those listed in Gold package plus…
• Unlimited drop-in visit/access to your financial planner; • Choice of appointment time and venues to suit your schedule;
• Personal introduction to our network of trusted Professional Services Providers such as Accountants, Lawyers, Property
Investment Specialist;
• Accompany you to meetings with your Professional Advisers at venues of your choice. (Note: any additional costs such as hotel & travel/flight expenses will be at your expense)
The ongoing service fee may be collected monthly through the product issuer or paid directly by you via credit card, direct debit or cheque.
Compensation arrangements
Dover operates a compensation arrangement to compensate retail clients for losses connected to any breach of the Corporations Act or other law by your Adviser, Dover or other relevant persons. These arrangements comprise comprehensive and extensive professional indemnity insurance. The insurance covers claims in relation to the conduct of former employees.
Protection of personal information
A copy of Dover and your Adviser’s Privacy Policy will be provided to you upon request. Dover’s policy is also available in Dover’s website at www.dover.com.au.
If you are not satisfied with our approach to privacy you are entitled to contact the Office of the Privacy Commissioner who may investigate any complaints you may make.
The Corporations Law requires your personal information to be retained by Dover Financial Advisers Pty Ltd for seven years.
Anti-money laundering and terrorism legislation
Dover must verify your identity before we provide any financial services. This will be discussed at our meeting.
Conflicts of interest
We do not have any relationships that may create a conflict of interest that would influence our advice to you.
A word of warning on risk
All investments have risks. “Risk” means the value of an investment may fall, or even disappear. Dover assumes its clients are conservative, cautious or balanced investors unless the client specifically states otherwise. If a client states otherwise the statement will only be accepted if a reasonable financial planner would assess the client as being otherwise, having regard to income, wealth, age, work experience or academic training.
Dover adopts this conservative assumption to reduce your risk.
Dover does not recommend investments that have significant internal gearing, or that clients borrow significant amounts to acquire investments. This is unless the client understands that these significantly increase the risk that their net equity will fall, or even disappear, if the value of the investment falls.
Clients should not acquire investments other than those suited to conservative, cautious or balanced investors unless they understand and accept the risk that their equity will fall, or even disappear, if the value of the investment falls.
Can Dover run an individually managed account?
Dover’s AFSL does not allow individually managed account or similar facilities.
Dover regards these facilities as excessively risky and does not allow its authorised representatives to provide them to clients.
Our advice will only be as good as the information you provide to us. We are required to warn you if the advice may be based on incomplete or inaccurate information relating to your relevant personal circumstances. Hence, before acting on any advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. You should not rely on our advice and you should contact us immediately to provide complete and accurate advice if the information you have provided to us is incomplete or inaccurate. We will then prepare a further statement of advice for you.
What you should do if you are not happy with our advice
If for any reason you are not sure what we are recommending, or why, you should not rely on our advice and you should seek clarification and further explanations from us.
We will research any financial products recommended in the SOA and ensure they are appropriate to your personal circumstances and in your best interests under the Corporations Act.
Approved product list
The financial products that will be recommended are limited to those on Dover’s approved product list and do not include all available financial products.
A copy of the approved product list can be provided to you upon request. Risk disclosure and no guarantee of performance
All investments, including products presented as “capital stable” or “conservative” contain some risk. So do investments that are not financial products, such as businesses and properties.
“Risk” means there is a possibility that you will lose capital value and/or the income from the financial product or other investment will be less than expected or performance will otherwise fall below expectations. This risk derives from the general economic environment as well as the specific circumstances of the product provider.
Internet fraud or other fraud is the responsibility of the client
Internet fraud and other fraud is a significant risk that cannot be eliminated and you as the client are solely responsible for minimising this risk and are solely liable for any loss connected to internet fraud or other fraud or negligence by any person other than you.
You are solely responsible for:
1. any losses connected to and/or suffered as a result of an internet fraud or other fraud including the accessing of bank accounts and investments by any person other than you; 2. indemnifying the adviser and its directors and staff against any claim for financial
compensation connected to internet fraud or other fraud or negligence including the accessing of bank accounts and investments by a person other than you; and
3. indemnifying Dover Financial Advisers and its directors and staff against any liability or claim for financial compensation connected to internet fraud or other fraud or negligence including the accessing of bank accounts and investments by a person other than you. This includes any liability or claim attributed to Dover Financial Advisers under the Corporations Act, the law of agency, the law of partnership or any similar law.
You are not to make:
1. any claim against the adviser and its directors and staff for financial compensation connected to internet fraud or other fraud or negligence including the accessing of bank accounts and investments by a person other than you; and
2. any claim against Dover Financial Advisers and its directors and staff for financial compensation connected internet fraud or other fraud or negligence including the accessing of bank accounts and investments by a person other than you. This includes any liability or claim attributed to Dover Financial Advisers under the Corporations Act, the law of agency, the law of partnership or any similar law.
Any questions?
Acknowledgment of Receipt
I/We ………... acknowledge receipt of this Financial Services Guide version 5 dated 1 May 2014.
Client signature 1: ……….
Client name: …... Date: ………..
Client signature 2: ……….
Dover Financial Advisers
CLIENT QUESTIONNAIRE
Please take the time to complete this document as thoroughly as possible. We use this information to develop our advice to you. If any part of the questionnaire is not relevant, please write “N/R” in the space provided. Please also feel free to attach any extra documents that you feel are relevant. Completed forms can be sent to us via the following media:
Fax: (02) 88122657
Email: [email protected]
Post: 34 New North Rocks Rd; North Rocks NSW 2151
Alternatively, you can bring the questionnaire to your first meeting with your Adviser.
Section A: Personal Details
Name (1): ________________________________ DOB: ___/___/___ Name (2): ________________________________ DOB: ___/___/___ Home Address: ________________________________ ________________________________ P/C: ___________ Work Address: ________________________________ ________________________________ P/C: ___________ Postal Address: ________________________________ ________________________________ P/C: ___________ Telephone/Fax: ________________________________ (a/h) ________________________________ (b/h) ________________________________ (mob) ________________________________ (fax) Email: ________________________________ Children: ________________________________ DOB: ___/___/___ ________________________________ DOB: ___/___/___ ________________________________ DOB: ___/___/___ ________________________________ DOB: ___/___/___ Marital Status: Single/Married/Co-Habiting/Separated
Section B: Your Reasons for Seeing Us
In the following sections, we ask you to give us specific information about your financial circumstances. In this section, we ask you to tell us in your own words what you would like us to help you with. Please let us know of any and all other information that is relevant to your financial situation. Please feel free to attach other documents to this questionnaire.
General Information
Short Term Goals – Please list your financial goals for the next 12 months
Medium Term Goals – Please list your financial goals for the next five years
Section C: Assets and Liabilities C1: Your Home
Value of your home: ______________________________________________ Debt Secured Against the home:
Deductible (business/investment): ________________________________________ Non-Deductible (private): ________________________________________
Home is owned in whose name: ______________________________________________ C2: Investment Properties
Address Owner (ie whose name is the property held in) Cost Date of Acquisition Current Value Debt Net Value
Eg 1 Smith St Blacktown Husband $400,000 Oct 2003 $650,000 $150,000 $500,000
C3 Share or Managed Investments
Company/Fund Manager
Owner (ie whose name is the asset held in)
Cost Date of
Acquisition Current Value Debt Net Value
Eg AMP Managed Fund Husband $100,000 Oct 2003 $150,000 Nil $150,000
C4: Other Assets
Cash: ______________________________________________________________ Superannuation: Client 1 member balance: ______________________________________
(see also section D) Client 2 member balance: ______________________________________
Other Assets ______________________________________________________________ C5: Debts:
Section D: Superannuation
Please complete the following tables: D1: Client 1
Name: _____________________________________________________
Fund Annual Contribution Current Value Comments
Eg HESTA 9% of salary: $4,500 $52,000 Invested in high growth
Are you happy with your current superannuation fund/s?
D2: Client 2
Name: _____________________________________________________
Fund Annual Contribution Current Value Comments
Eg HESTA 9% of salary: $4,500 $52,000 Invested in high growth
Section E: Life Insurances (term life, income protection, etc – please do not show general insurances such as home and contents and health cover)
Please complete the following tables: E1: Client 1
Name: _____________________________________________________
Type of Insurance Annual Premium Amount of Cover Insurer
e.g Death Cover $1,000 $1,000,000 AIG
Are you happy with your current life insurances?
Are there any medical reasons why you might not be able to increase or change your cover?
E2: Client 2
Name: _____________________________________________________
Type of Insurance Annual Premium Amount of Cover Insurer
e.g Death Cover $1,000 $1,000,000 AIG
Are you happy with your current life insurances?
Section F – Estate Planning and Financial Management F1: Client 1:
Do you have a will? Y/N. Last reviewed: ___/___/___ Do you have powers of attorney? Y/N. Last reviewed: ___/___/___
Do you have a solicitor? Y/N
Name of solicitor: ____________________________
Address: ____________________________
____________________________
Telephone: ____________________________
Have you previously used an accountant? Y/N
Name of accountants: ____________________________
Address: ____________________________
____________________________
Telephone: ____________________________
F2: Client 2:
Do you have a will? Y/N. Last reviewed: ___/___/___ Do you have powers of attorney? Y/N. Last reviewed: ___/___/___
Do you have a solicitor? Y/N
Name of solicitor: ____________________________ Address: ____________________________ ____________________________ Telephone: ____________________________ Have you previously used an accountant? Y/N
Name of accountants: ____________________________ Address: ____________________________ ____________________________ Telephone: ____________________________ F3: Other Details
Do you expect to inherit any major amounts in the next five years?
Section G: Income and expenses
G1. Please provide details of your current income. Client 1 Name: __________________ Occupation: __________________ Employer: __________________ SOURCE GROSS $ PA Salary Business Trust Income Centrelink Superannuation Rental Dividends
Other (please specify)
TOTAL Client 2 Name: __________________ Occupation: __________________ Employer: __________________ SOURCE GROSS $ PA Salary Business Trust Income Centrelink Superannuation Rental Dividends
Other (please specify)
TOTAL
G2. Do you expect to inherit any major amounts in the next five years?
G3. Is there any other further information about your income that may be relevant to the development of your financial plan?
________________________________________________________________________________ ________________________________________________________________________________ G4. How reliant are you on investment income to meet your day to day living expense?
________________________________________________________________________________ ________________________________________________________________________________ G5. How reliant will you be on investment income in the future to meet your daily living expense? ________________________________________________________________________________ ________________________________________________________________________________ G6. What is your annual combined living expenses including interest on loans? (refer to budget template on Section I for assistance)
________________________________________________________________________________ ________________________________________________________________________________ G7. Do you anticipate any major expenses in the next five years?
Section H: Investment Profile
H1: Please rate how comfortable you would feel investing in the following types of assets: 1 = very uncomfortable; 3 = reasonably comfortable; 5 = very comfortable
1 2 3 4 5
Residential Property Commercial Property Direct Australian Shares Direct International Shares Managed Equity Funds Managed Property Funds Other Managed Funds Fixed Rate Investments Speculative Investments
H2: Investment Time Frame
Time Frame < 10% 10-20% 20-60% 60-80% 80-100%
< 1 Year 1-5 Years > 5 Years
H3: Retirement Plans
Retired < 5 Years 5-10 Years 10-20 Years > 20 Years Client 1
Client 2
H4. Using the descriptions on the last page of this document, how would you describe yourself as an investor?
________________________________________________________________________________ ________________________________________________________________________________ H5. How comfortable are you with debt?
________________________________________________________________________________ ________________________________________________________________________________ H6. How comfortable are you in borrowing to finance investments?
________________________________________________________________________________ ________________________________________________________________________________ H7. What is/would be the main purpose of your investments?
Section I – Your Budget (Optional)
The following planner can be used to list out the major areas of expenditure in your lifestyle. The planner is a very useful tool to help you learn about your spending habits. If you are a couple, please complete this as a couple.
Item Per Month Per Annum Item Per Month Per Annum
Mortgage Rent
Council Rates Water
Body Corporate/Maintenance Electricity
Household Help Gas
Home Phone Mobile Phone
Cable TV Internet
Other Mortgage Loans Investment Loans
Personal Loans Credit Cards
Life Insurance Financial Planning
Trauma Insurance Accountant
Income Protection Solicitor
Car Registration Insurance
Lease/Loan Repayments Petrol/Repairs/Maintenance
Other Childcare
Children/Dependants Clothing Other Activities
School/University Fees
Allowance Alcohol
Groceries Sports & Fitness
Entertainment/Restaurants Holidays
Club Membership/Hobbies Clothes/Shoes-Work
Related Clothes/Shoes-Personal
Furniture/Appliances Pharmacy/Prescription
Medical/Dental Consultations
Private Health Insurance Subscriptions/Newspapers
Pet Costs Fifths/Donations
Books Lunch/Coffee
Cigarettes Other
Section J: Client Signatures
Please complete this page before sending the questionnaire to us.
The contents of this fact finder represent a true and accurate reflection of my financial circumstances.
I understand that this information will be used for the purposes of providing financial and investment advice to me.
My information will not be used for any other purpose unless directed by me.
I confirm that I have received a Financial Services Guide from Dover Financial Advisers.
Client 1: ____________________________________________ ___/___/___
(please sign)
Client 2: ____________________________________________ ___/___/___
SectionK: Fees for Preparation and Implementation of Advice
This section is to be completed by your adviser following your initial meeting.
Your Adviser will be paid the following amounts for providing financial advice: Fees Paid By You
Fee for preparing Statement of Advice - $400.00 (plus GST 10% total of $440.00).
Please note that the fee for preparing the Statement of Advice is payable upon delivery of the advice. This fee will be payable regardless of whether the advice is implemented. Fees for subsequently implementing the advice will be disclosed in the Statement of Advice.
Fees Paid by a Third Party (Commissions)
These fees will be communicated to you in your Statement of Advice. These fees will not be payable if you do not accept the advice.
Acceptances of Fee Arrangements
Adviser: ____________________________________________ ___/___/___
We accept the fees outlined above and authorize our adviser to proceed with preparing a written statement of advice. We undertake to pay the fee for the preparation of advice. We understand that fees for implementing the advice will not be charged until we accept the written statement of advice and agree to its implementation.
Client 1: ____________________________________________ ___/___/___
(please sign)
Client 2: ____________________________________________ ___/___/___
Determining Your Investment Risk Profile
When investing it is important that you consider the level of risk as well as the return on an investment in view of your circumstances and investment goals. Risk means different things to different investors. For some, investment risk means the likelihood of a loss of capital, while for others it is the level of volatility of an investment, or the risk of an asset not producing enough to
live on.
This Investment Risk Profile questionnaire has been designed to assist you in making an investment decision. It asks some questions regarding your goals, time frames and comfort with investments to provide a guide to your investor profile. Your investor profile then determines a benchmark asset allocation for your investments. Please complete the questions below by choosing the answer which
most closely describes you.
1. For how long would you expect most of your money to be invested before you would need to access it?
Less than 12 months
Between 1 and 3 years
Between 3 and 5 years
Between 5 and 7 years
Longer than 7 years
2. If you consider current interest rates what overall level of return (after inflation) do you reasonably expect to achieve from your investments over the period you wish to invest
for? A reasonable return without losing any
capital *
1-3%
4-6% 7-9% Over 9%
3. Assuming you had no need for capital, how long would you allow a poorly performing investment to continue before cashing it in (assuming the poor
performance was mainly due to market influences)? You would cash it in if there was any loss
in value* Less than 1 year Up to 3 years Up to 5 years Up to 7 years Up to 10 years
4. How familiar are you with investment markets?
Very little understanding or interest
Not very familiar
Have had enough experience to understand the importance of diversification I understand that markets may fluctuate and that different market sectors offer different
income,
growth and taxation characteristics
5. What would your reaction be if six months after placing your investments, you discovered that due mainly to market conditions your portfolio had decreased in value
by 20%?
Horror – Security of your capital is critical and you do not intend to take risks.* You would cut your losses and transfer your funds to more secure investment sectors. You would be concerned, but would wait to see if the investments improve. This was a risk you understood – you would leave your investments in place expecting
performance to improve.
You would invest more funds to take advantage of the lower unit/share prices expecting futuregrowth.
6. Which of the following best describes your purpose for investing?
You have an investment time frame of over 5 years. You understand investment markets and are mainly investing for growth to accumulate long-term wealth, or are prepared to use
aggressive investments to provide income.
You are not nearing retirement, have surplus funds to invest and are aiming to accumulate long term wealth from a balanced portfolio.
You have a lump sum (eg inheritance or a superannuation rollover payment from your employer) and you are uncertain about what sort of investment alternatives are available. You are nearing retirement and you are investing to ensure you have sufficient funds
available to enjoy your retirement.
You have some specific objectives within the next 5 years for which you want to accumulate sufficient funds.
You want to provide a regular income and/or totally protect the value of your investment capital.*
Based upon your responses and our detailed discussion we have mutually agreed your Investor Risk Profile as the following:
X
Investor Risk Profile
Common Risk Profiles
The following is a list and description of the main risk profiles for investors based on Van Eyk’s analysis. You can use these descriptions to answer question H4.
These descriptions are general in nature. Your Adviser will take into consideration your personal circumstances when providing advice and may advise on a different asset mix as they see fit.
Whilst property does not form part of the Van Eyk’s asset mix, property is inherently conservative with the appropriate strategy considered.
A. Ultra Conservative - Cash Management
As an Ultra Conservative investor, your risk tolerance is extremely low and you have a short time-frame for investment. You are not comfortable with growth assets and the only appropriate investment for you is cash-based investment such as bank accounts, cash management trusts and term deposits.
B. Conservative
As a Conservative investor, you are not in favour of risk and find it difficult to cope with losses. You feel more comfortable maintaining what you already have. You are more contented to accept lower returns rather than taking up too much risk for higher returns. Based on your risk profile, your preferred investment mix would generally be in defensive assets, such as bonds, cash, term deposits and fixed interests funds, and a small portion in growth assets, such as shares and property investments.
Below is Van Eyk’s asset mix for a Conservative investor:
Defensive Cash 25%
Fixed Interest 40% 65%
Growth Australian Equities 15%
International Equities 10%
REITs and Infrastructure 5%
Alternatives 5% 35%
C. Moderately Conservative
As a Moderately Conservative investor, you tolerate low levels of variability in returns and prefer not to have large fluctuations in short term performance. Although increasing your wealth is not paramount and that you may have some nervousness about investing, you are prepared to accept some risks to your capital for the chance of moderate growth. Based on your risk profile, you generally prefer a balance mix of defensive assets, such as bonds, cash, term deposits and fixed interests funds, and growth assets, such as shares and property investments.
Below is Van Eyk’s asset mix for a Moderately Conservative investor:
Defensive Cash 15%
Fixed Interest 29% 44%
Growth Australian Equities 21.5%
International Equities 13.5% REITs and Infrastructure 8.5%
D. Balanced
As a Balanced investor, you look to achieve modest growth in your capital and at the same time aim to protect the wealth you already have. You understand that you will experience short term fluctuations in performance in order to potentially gain higher returns over the long term. Based on your risk profile, you are comfortable to invest more towards growth assets such as shares and property.
Below is Van Eyk’s asset mix for a Balanced investor:
Defensive Cash 5%
Fixed Interest 18% 23%
Growth Australian Equities 28%
International Equities 17%
REITs and Infrastructure 12%
Alternatives 20% 77%
E. Growth
As a Growth investor, you seek for a high return for a greater growth potential. You are prepared to accept high levels of volatility in your portfolio to create substantial returns for extra wealth over the longer term. Based on your risk profile, you are comfortable to invest most of your assets into growth investments, such as shares and property, and a small percentage towards defensive assets, such as bonds, cash, term deposits and fixed interests funds.
Below is Van Eyk’s asset mix for a Growth investor:
Defensive Cash 2.5%
Fixed Interest 9% 11.5%
Growth Australian Equities 34%
International Equities 23.5% REITs and Infrastructure 13.5%
Alternatives 17.5% 88.5%
F. High Growth
As a High Growth investor, you are looking for wealth creation and are prepared to trade-off portfolio balance in pursuit of potential long term gains. You are comfortable with a portfolio that includes a substantial proportion of high risk investments and are prepared to accept short term fluctuations in performance. Based on your risk profile, you generally prefer a portfolio that only focuses on growth assets such as shares and property.
Below is Van Eyk’s asset mix for a High Growth investor:
Defensive Cash 0%
Fixed Interest 0% 0%
Growth Australian Equities 40%
International Equities 30%
REITs and Infrastructure 15%
A word of warning on risk
All investments have risks. “Risk” means the value of an investment may fall, or even disappear. Dover assumes its clients are conservative, cautious or balanced investors unless the client specifically states otherwise. If a client states otherwise the statement will only be accepted if a reasonable financial planner would assess the client as being otherwise, having regard to income, wealth, age, work experience or academic training.
Dover adopts this conservative assumption to reduce your risk.
Dover does not recommend investments that have significant internal gearing, or that clients borrow significant amounts to acquire investments. This is unless the client understands that these significantly increase the the risk that their net equity will fall, or even disappear, if the value of the investment falls.
[date]
[Client Name] [Address]
[Salutation]
Service Agreement
Thank you for your interest in our initial and ongoing advisory services. This document formalises our arrangement and sets out the terms and services offered to you by Global Progress Financial Services Pty Ltd. As a valued client, you will receive the benefits of our personal attention, professional advice, timely information and efficient administration.
Initial Service Offer
Our Initial Service Offer is designed to gather all your relevant personal information and understand your key financial goals and objectives. This information will be used to formulate and implement appropriate strategies to set the course for your financial future.
Service Component Benefits to you
Initial Consultation At the initial stage of our relationship it is important for us to understand your unique personal and financial situation, including your lifestyle goals. During this stage, we will discuss your current financial situation, your specific financial needs along with your lifestyle and financial goals and objectives.
Preparation of your Statement of Advice
From the details obtained during the initial
consultation we will develop an appropriate strategy which will be tailored to your needs. [This may include a diversified investment portfolio which is consistent with your tolerance to risk/volatility.] We will prepare a detailed Statement of Advice,
Presentation of the Statement of Advice
We will clearly explain all the details contained in your Statement of Advice. This discussion will be focused around the strategic advice we believe will help you achieve your goals and objectives. We will take this opportunity to ensure you clearly
understand and agree with our recommendations. [If you are ready to proceed at this stage, we will arrange for you to sign the appropriate
documentation to implement our recommendations.]
Implementation of our recommendations
We will place the agreed investments/ insurance needs on your behalf and review the progress of your applications with the Product Providers to ensure all details are attended to in a timely manner. We will liaise with any third party specialists such as; an estate planning lawyer or mortgage broker and we will assist them where appropriate with the implementation of the advice.
We will confirm your investment details and
implementation of our recommended strategies. We will also discuss any outstanding issues or questions you may have at this time.
Ongoing Service Offer
We strongly believe that maintaining an ongoing relationship will enable you to remain accountable to your goals and objectives. We believe regular reviews of your strategy, advice, personal
circumstances and desired goals are essential to ensure you will achieve what’s important to you. Our [Service Package Name] will be comprised of the following ongoing service components on an annual basis.
[Service Package Name]
Service Component Benefits to you
Review of your financial plan An offer of a formal [period] review of your
financial strategy, goals and objectives to ensure our advice remains relevant.
Tax planning Providing advice recommendations towards the end of the financial year for your specific tax position.
Education seminars and workshops Invitations to education seminars and events covering a wide variety of topics for you, your family and friends.
Periodic newsletters [Market Commentary] Newsletters providing you with insights [into economic conditions, financial strategies and other information] relating to your financial situation.
Changes to your circumstances The opportunity to review your financial plan when key life events affect your goals and your current strategy and advice. These may include
retirement/redundancy, a birth/death in the family, receipt of an inheritance etc.
Advice on other financial matters In addition to the core areas of advice detailed above, we can provide direct links to specialists in business services, tax planning, legal work and aged care.
Client website access Secure access to our online client website providing access to your investment details, the latest
legislative updates, our financial planning services and advice as well as “links” to other relevant websites
Priority access to your financial advice specialist
Direct access to John Krawc to help you with
financial planning questions, concerns, feedback and advice outside scheduled appointments.
We are also pleased to offer the service package/s below to compliment our Ongoing Service Offer and supporting your additional financial planning requirements:
Service Element Benefits to you
Listed securities package • Ability to access a broad range of securities • Trades will be actioned and implemented on
your behalf upon your request
• Access to wholesale trading rates and services • Access to wider broker research with the use of
multiple research and broker options
Cash Flow management package Cash flow management support and advice relating to:
• Personal financial analysis & cash flow modelling
• Spending assistance to ensure financial
obligations are being met with management of day to day cash flow
• Education and support with effective and efficient budgeting
• Assistance in planning for additional spending needs
• The ability for your financial planner to view transactions and your spending trends to assist with cash flow modelling
• Assistance with Margin Lending / Line of Credit management.
Personal CFO / Project Manager package
• Direct consultation with your other professional advisers ie Solicitor, Accountant, Personal Banker or Estate Planning professionals, to ensure your financial needs are implemented consistently and efficiently
• Assistance with applications for additional financial assistance ie personal or business loans • Access to your Financial Planner – phone, email
or face to face as required
• Complete outsourcing solutions to provide you with a fully delegated relationship of financial affairs with your planner
Centrelink support package This offering will provide you with the necessary support relating to your Centrelink position. In some circumstances we can update Centrelink directly or provide you with this information. Other services include:
• Reviewing Centrelink legislation and payments options to match your financial planning strategy • Annual review or updates relating to your
income stream payments
• Providing the necessary information and documentation, directly to Centrelink
• Reviewing your Centrelink position as part of our ongoing strategy and review process • Administration authority to the Centrelink
website with “View Only” access to ensure your financial records are accurate and up to date.
Self Managed Super Fund (SMSF) package
This service offer is tailored to support the
administration, regulation and strategic requirements of operating a SMSF. Our service offer will also align with the ongoing legal and administration requirements you may require from your accountant, solicitor or other professional advisers relating to the operation of your SMSF.
We at Global progress Financial Services Pty Ltd may be able to implement and/or co-ordinate (with third parties) one or more of the following services for you in relation to your SMSF:
(a) Establishment
(b) Corporate Trustee Establishment,
(c) Accounting, tax and audit co-ordination package (d) Strategic advice only package
(e) Administration package
(f) Insurance analysis and implementation package
Your Obligations
It is important that you notify us of any material changes to your financial and personal situation so we can ensure our advice continues to be appropriate. These may include events such as changes in investments, employment or key life events.
Our Agreement
These services will be provided on an ongoing basis until this agreement is terminated. While this agreement is in place you will receive a Fee Disclosure Statement every year. This document will outline the ongoing fees you have paid over the previous 12 month period along with information about the services you were offered.
If at any time you would like to discuss the services offered please do not hesitate to contact us. If you wish to end this agreement you can do so at any time. If Global Progress Financial Services Pty Ltd decides to end the agreement you will be given one month’s notice. This agreement also terminates immediately if you stop paying our fees.
Our Fee
The fee for our Initial Service Offer is $[XXXX], based on [describe calculation basis - hourly charge, flat dollar, percentage of investment portfolio, etc] and the value and complexity of the advice. This fee, which is inclusive of GST, will be payable by [cheque, deduction from the nominated administration service etc.] at the time of implementing your recommendations. The fee for our Ongoing Service Offer is $[XXX] based on [describe calculation basis – flat fee, percentage of investment portfolio, etc] and is payable [annually in advance, quarterly in advance, or monthly in arrears] by [cheque, deduction from the nominated administration service, product name etc].
Third Party Referrals
Where required, we can provide you with referrals to third party professionals for specialist
[taxation, accounting, legal, estate planning, finance, general insurance, mortgage broking] advice. Please note, neither Global Progress Financial Services Pty Ltd nor Dover financial Advisers shall be liable for the provision of services by a third party.
Confidentiality
All information you provide will be treated as confidential and only disclosed to third parties (your other advisers or service providers) with your agreement or as required by law.
Please sign below to indicate that you accept the terms and conditions set out above.
John Krawc
Of Dover Financial Advisers
Customer signatures:
Customer 1______________________________________
Information Release Form
To Whom It May Concern,
I, ___________________________________________________
of ___________________________________________________
___________________________________________________
Date of birth ___________________________________________________
authorise that all relevant information about my investments, insurances, superannuation, bank accounts and/or other financial information be released, upon request, to:
Adviser Name:
Janek Krawc of Global Progress Financial Services Pty Ltd
Authorise representative of Dover Financial Advisers Pty Ltd - AFSL NO AFSL: 307248
Adviser’s address and contact details: John Krawc
34 New North Rocks Rd; North Rocks NSW 2151
MOB 0422 823656, (02) 88122977, Fax (02) 88122657 E-mail: [email protected]
___________________________________________________
Please accept a photocopy, facsimile or electronic copy of this form as my authority. The original signed form will be held on file at the adviser’s address above.
Client’s Signature:
___________________________________________________
Date: ___________________________________________________
*
The adviser named above will only send this form to those institutions disclosed by the client and theInformation Release Form
To Whom It May Concern,
I, ___________________________________________________
of ___________________________________________________
___________________________________________________
Date of birth ___________________________________________________
authorise that all relevant information about my investments, insurances, superannuation, bank accounts and/or other financial information be released, upon request, to:
Adviser Name:
Janek Krawc of Global Progress Financial Services Pty Ltd
Authorise representative of Dover Financial Advisers Pty Ltd - AFSL NO AFSL: 307248
Adviser’s address and contact details: John Krawc
34 New North Rocks Rd; North Rocks NSW 2151
MOB 0422 823656, (02) 88122977, Fax (02) 88122657 E-mail: [email protected]
___________________________________________________
Please accept a photocopy, facsimile or electronic copy of this form as my authority. The original signed form will be held on file at the adviser’s address above.
Client’s Signature:
___________________________________________________
Date: ___________________________________________________
*
The adviser named above will only send this form to those institutions disclosed by the client and theOption to Quote Tax File Number
Most investment and superannuation application forms request the applicant to provide their Tax File Number (TFN).
As you will be receiving ongoing service from Global Progress Financial Services Pty Ltdwe offer you the option of authorising Global Progress Pty Ltdto hold your TFN, and/or details of your exemption status, in our records.
The collection, use and disclosure of TFNs are strictly controlled by taxation and superannuation laws and the Privacy Act. As an authorised representative of Dover Financial Advisers Pty Ltd , Janek Krawc is authorised to collect TFNs under the Income Tax Assessment Act 1997.
You are not required to provide us with your TFN and it is not an offence if you choose not to do so.
If you do not provide us with your TFN and you wish to quote your TFN on investment and/or superannuation application forms, you will need to bring your TFN with you when calling into our office to complete these documents.
Important Information
Investment Bodies
Investment bodies are authorised to collect TFNs under the Income Tax Assessment Act 1997. It is not an offence if you choose not to provide your TFN to an investment body. However, if you do not quote your TFN, or
exemption status, tax will be deducted from your income distributions at the highest marginal rate.
Some persons/entities are exempted from the TFN quotation arrangements, if the exemption status is notified to the investment body:
• Persons receiving any part of an age, service, widow pension or other types of qualifying pension/benefit
state type of pension/ benefit received.
• Children under the age of 16, where the investment is NOT public company share/s and the income will be less than $420 pa
state age.
• Entities not required to lodge income tax returns
state reason not required to lodge return.
• Non-residents state country of residence.
Superannuation Bodies and Approved Deposit Funds
Superannuation Bodies and Approved Deposit Funds are authorised to collect TFNs under the Superannuation Industry (Supervision) Act 1993. It is not an offence if you choose not to provide your TFN, however, if you do not provide your TFN:
− you may pay more tax on your superannuation benefit than you have to (you will get a refund at the end of the financial year in your income tax assessment);
− your fund is generally required to reject your non-concessional (after-tax) contributions; − your concessional (pre-tax including employer) contributions may be taxed at 46.5%; and
Your Election
Please record your TFN, and/or exemption status, at the bottom of this page.
I instruct Global Progress Pty Ltd to hold my Tax File Number in their records. I authorise Dover Financial
Advisers Pty Ltd, or other recipients approved by Dover Financial Advisers Pty Ltd, to disclose my TFN, or
exemption status, to me, the Australian Taxation Office and investment bodies.
Note: Dover Financial Advisers Pty Ltd is not permitted to disclose your TFN to superannuation bodies; Approved Deposit Funds or assistance agencies.
I acknowledge that:
− I have read and understood the information above; and
− this authority will remain in force until cancelled by me in writing.
If signing under Power of Attorney, I hereby certify that I have not received notice of revocation of that Power. Full name of client 1
(individual/entity)
Full name of client 2 (individual/entity) Address Client 1 Signature Client 2 Signature Company Seal (if applicable)
Client 1 Tax File Number:
Client 2 Tax File Number::
