Financial Services Guide

Before you embark on a relationship with Capital Partners Consulting Pty Ltd (Capital Partners) you have the right to ask us about any aspect of our business. This Financial Services Guide (FSG) is designed to assist you in deciding whether to use any of the services offered by us. The FSG contains information about the type of advice we will give you, our charges and what you can do if you have a complaint against us. We have outlined the answers to commonly asked questions below, however if you need further information, please ask us. This FSG is issued with the authority of Capital Partners Consulting Pty Limited trading as Capital Partners Private Wealth Advisers.

You should be aware that you are entitled to receive a Statement of Advice (SOA) whenever we provide you with any advice which takes into account your objectives, financial situation and needs. The SOA will contain details of the advice, the basis on which it is given and information about fees, commissions and associations which may have influenced the provision of the advice. Where we provide further advice to you that is not significantly different in basis from the recommendations contained in your SOA, we will make you aware of this but may not provide you with a written SOA. In this instance we will keep a detailed record of this advice on file which can be provided to you upon request up to 7 years from day on which the advice is provided.

In the event that we make a recommendation to acquire a particular financial product (other than securities), we must also provide you with a Product Disclosure Statement containing information about that particular product which will enable you to make an informed decision before you decide to acquire that product.

Who will be responsible for the advice given to me?

Your adviser acts as a representative of Capital Partners. Capital Partners holds an Australian Financial Services Licence No. 227148 and is responsible for the advice you receive. Capital Partners acts on your behalf when providing you with financial advice.

Capital Partners is not owned by any fund manager or financial institution. Capital Partners has entered into partnership with Macquarie Investment Management Ltd for the operation of the Assante Custodial and Administration Service. This partnership does not influence the advice that you receive from Capital Partners.

Capital Partners, CP Life Risks Pty Ltd ATF CPRI Unit Trust trading as CP Risk Insurance Advisers (Corporate Authorised Representative Number: 457361) and Wealth Essentials Pty Ltd (ACN 131 725 221) ATF CPFS Unit Trust (Corporate Authorised Representative Number: 327274) are related entities. CP Risk Insurance Advisers specialises in the provision of risk insurance. Capital Partners may refer, or be referred to you to services provided by CP Risk Insurance Advisers and/or Wealth Essentials Pty Ltd. No fees or benefits are paid for referral where applicable. Directors of Capital Partners own units in CPRI Unit Trust. They are entitled to distributions resulting from the profitable operation of CP Risk Insurance Advisers & Wealth Essentials Pty Ltd.

What advisory services are available to me?

Capital Partners can provide the following services:

  • Meeting with you to gain a detailed understanding of your affairs;
  • Liaising with your tax and accounting advisers where necessary;
  • Gap analysis of your existing strategy against what is required;
  • Preparation of a Wealth Management Plan detailing the specific issues and strategies you need to consider to achieve your objectives;
  • Development and implementation of a Family Succession Plan;
  • Preparation of an asset management plan incorporating an investment policy statement detailing the key issues around management of your assets, including asset allocation and risk management;
  • Specific investment recommendations for your core wealth strategy;
  • Co-ordination of any external investment parties;
  • Development of appropriate reporting framework;
  • Review of asset protection and legal structures; and
  • Risk management review and review of insurance policies.

As a Capital Partners client we will provide you with ongoing service and advice. The service level will be agreed with you, and will include regular reviews of your progress towards achieving your goals, as well as a review of your insurance and investment portfolio.

We are licensed to provide financial product advice on shares, unit trusts, debentures, managed funds and other managed investments, basic deposit products, life insurance and superannuation products.

Research

We will only recommend a product or investment to you after considering its suitability for your individual investment objectives, financial situation and needs. We devote considerable resources to researching the investments and products we recommend. We conduct our own in-house research, subscribe to research from external specialists and conduct periodic visits to meet with the fund managers we recommend.

Professional Development

The advice team at Capital Partners is required to meet the highest standards of expertise and service, and adhere to the highest ethical standards. All advisers undertake regular technical training and this is complemented by appropriate external studies.
How will I pay for the service?
We charge you an agreed fee for our services. You will be provided with a detailed Proposal for Services outlining our agreed fees prior to commencing work with you.

How will I pay for this service?

Capital Partners is remunerated in a number of different ways. These may include:

Strategic Advice Fees

Capital Partners charges a strategic advice fee which incorporates the consultative process, preparation of a wealth management plan and the co-ordination and management of project work to deliver integrated solutions for complex financial problems. The fee is based on the complexity and time involved and you will be invoiced directly for these services.

Fees may also be charged to reimburse Capital Partners for costs incurred in obtaining external specialist advice regarding your affairs.

We will provide ongoing services to you to maintain your wealth management strategy and to ensure that it remains relevant. This will include offering a full annual review of your progress towards achieving your goals, as well as a periodic review of your insurance and investment portfolio. For this service we charge a fee to cover the full range of services we offer. This fee will vary depending on the complexity and level of involvement required.

You will have the choice of paying your fees from a nominated bank account or credit card, or having this fee deducted from your investment portfolio on a monthly basis.

Portfolio Management

A portfolio management fee of up to 1.20% p.a. is applied to funds for which we recommend and provide ongoing management services for. Please note, custody and administration fees will also apply and are payable to third party suppliers.

Investment and Trail (Service) Brokerage

Capital Partners may receive commission from fund managers for investments established prior to the 1st July 2013. These costs are normally deducted from your investments, and are based on the size of your investment. We will seek to rebate this brokerage to you; however in some instances this may not be practical. Where we retain this brokerage it will be disclosed to you in writing.

Insurance Brokerage

Where we place an insurance policy on your behalf Capital Partners will normally receive an upfront and ongoing commission from the insurance company, calculated as a percentage of the first year’s base premium ranging from 25% to 121%, and ongoing base premium ranging from 10% to 33%. This includes any medical loadings, and excludes policy fees or statutory charges. We will advise you of this payment in writing prior to you making the application for insurance.

Debt Brokerage

Where we assist in arranging lending facilities on your behalf Capital Partners may receive a referral fee from the lender or mortgage broker. We will advise you of this payment in writing prior to you making the application for lending facilities.

Do I get detailed information about actual commissions and benefits my adviser receives from making the recommendations?

Yes. You have the right to know about the details of any fees and other benefits your adviser or Capital Partners receives for recommending investments. You will be notified in writing of any fees we may receive as a result of specific recommendations made.

As part of our ongoing service to clients we are in contact with the fund managers we recommend on a regular basis. Part of this contact, is in order to administer your investments efficiently and to ensure that the fund managers remain appropriate for your needs and circumstances. As a result, we have formed a close working relationship with these fund managers, and on occasion, may be invited to social or sporting events or receive a hamper or bottle of wine. Capital Partners and the providing fund managers keep a register of all material benefits provided which is publicly available. A copy of this register can be provided upon request within 7 days.

In some circumstances, we will pay a referral fee to a professional financial service provider if they have introduced you to us. Any referral fee payable will be disclosed in writing by us.

Directors

Directors of Capital Partners are remunerated by way of dividends paid to their associated companies and trusts. These dividends are paid based on the profitability of Capital Partners. Additional dividend payments may be received by a Director based on his performance in respect of attracting new client relationships to the company and the successful accomplishment of other agreed performance criteria.

Advisers

If your adviser is an employee of Capital Partners, he will be paid a salary for providing the services to you. In addition your adviser may be paid a bonus based on the successful achievement of agreed performance criteria. These criteria may include: client satisfaction; attracting new clients to the firm and the achievement of other agreed performance criteria; including the company’s profitability.

Our non-advisory employees do not receive specific payments for the services provided to you. They are remunerated by way of salary and discretionary bonus, where applicable.

Will you give me advice that is suitable to my investment needs and financial circumstances?

Yes. In doing so we need to find out your personal investment objectives, financial situation and needs before we recommend any investment to you.

If you do not wish to do so, you have the right not to divulge this information to us. In that case, we are required to warn you about the possible consequences of us not having your full personal information, and you should read these warnings carefully.

What should I know about any risks of the investment strategies you recommend to me?

We will explain any significant risks of investments and strategies that we recommend to you. If we do not do so, you should ask us to explain those risks to you.

What information do you maintain on my file?

We are required, pursuant to the Corporations Act, certain regulations issued by the Australian Securities and Investment Commission and the Code of Professional Practice of the Financial Planning Association to collect information about you for the purposes of providing you with the advisory services described above.

We maintain detailed information about your personal profile that includes details of your investment objectives, financial situation and needs. We also maintain any records of recommendations made to you.

Generally, collection of your personal information will occur in either face to face interviews, over the telephone, facsimile, mail or by way of a client data form. We make a digital audio recording of face-to-face interviews for training, quality assurance and record keeping purposes. You have a right to let us know if you do not wish for our meetings to be recorded.

As a financial services provider, we have an obligation under the Anti-Money Laundering and Counter Terrorism Financing Act 2006 to verify your identity and the source of any funds. This means that we will ask you to present identification documents such as passports and driver’s licence. We will also retain copies of this information.

Capital Partners is committed to implementing and promoting a privacy policy which will ensure the privacy and security of such personal information. In the event that we consider it necessary to use or disclose information about you for purposes other than to provide you with advisory services or related purposes, we will seek your consent.

Can I tell you how I wish to instruct you to buy or sell my investment?

Yes. You may specify how you would like to give us instructions. For example, by telephone, by fax, email or other means. However, in all cases we must receive a written confirmation of these instructions.

Who can I complain to if I have a complaint about the advisory service?

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

  1. Lodge your complaint in writing and send it attention to: Compliance Officer at Capital Partners PO Box 163, West Perth WA 6005. We will then undergo a formal review of your complaint, your circumstances and the advice we have provided you. We commit to responding to you within 10 business days of receipt of your complaint.
  2. Capital Partners is a member of the Credit & Investments Ombudsman (CIO). If you still do not get a satisfactory outcome within 45 days, or such longer period as permitted by CIO, you have the right to refer the matter to CIO. You can contact CIO on 1800 138 422, fax 02 9273 8440 or via email at info@cosl.com.au. The postal address for CIO is PO Box A252 South Sydney NSW 1235 and website http://www.cio.org.au/
  3. The Australian Securities and Investments Commission also has a Free call Info line on 1300 300 630 which you may use to lodge a complaint and obtain information about your rights.

Capital Partners confirms that it has professional indemnity insurance policy (PI) in place which is consistent with regulatory obligations. The PI policy covers Capital Partners and its representatives for claims made against us by clients as a result of our conduct in the provision of financial services.

Financial Services Guide
CP Life Risks trading as Capital Partners Risk Insurance Advisers

Why am I receiving this document?

This Financial Services Guide (FSG) will help you decide whether to use the services that we* offer. It contains information about:

  • Capital Partners Consulting
  • Capital Partners Risk Insurance Advisers & Your Financial Adviser
  • The services we offer and their cost
  • Any conflicts of interest which may impact the services
  • How we are remunerated
  • How we deal with complaints if you are not satisfied with our services.

Financial Product Services

When we provide you with services you may receive:

  • A Statement of Advice (SoA) or Record of Advice (RoA) which documents the financial product advice we provide to you.
  • A Product Disclosure Statement (PDS) which explains the financial products we have recommended.
    * In this document ‘we’ refers to Capital Partners Risk Insurance Advisers and Your Financial Adviser.

Capital Partners Consulting

Capital Partners Consulting Pty Ltd holds an Australian Financial Services Licence (227148) which has been issued by the Australian Securities and Investments Commission (ASIC).

Capital Partners Consulting is required to comply with the obligations of the Corporations Act and the conditions of its licence. This includes the need to have adequate compensation arrangements in place with a Professional Indemnity insurer for the financial services that it and its representatives provide.

Capital Partners Risk Insurance Advisers and Your Financial Adviser

Capital Partners Risk Insurance Advisers has been appointed as a Corporate Authorised Representative of Capital Partners Consulting. Serena West and Luke Towers have been appointed as Authorised Representatives of Capital Partners Consulting. We act on behalf of Capital Partners Consulting who is responsible for the services that we provide.

What services do we provide?

We are authorised to provide personal advice and dealing services for personal risk insurance and superannuation.

The financial advice process

We recognise that the objectives and personal circumstances of each client are different. What is right for one client may not be right for another. Where we provide personal advice, we will listen to you to understand your objectives and circumstances. We will also ask questions to make sure we address all issues.

When we first provide personal advice to you it will be explained thoroughly and documented in a Statement of Advice which you can take away and read. The Statement of Advice will explain the basis for our advice, the main risks associated with the advice, the cost to you of implementing the advice, the benefits we receive and any conflicts of interest which may influence the advice.

We will provide you with a Product Disclosure Statement which contains information to help you understand the products we recommend. At all times you are able to contact us and ask questions about our advice and the products we recommend.

You can provide instructions to us in writing, via phone or via email/fax.

We may provide further advice to you to keep your plan up to date for changes in your circumstances, changes in the law and changes in the economy and products. If we provide further advice it will typically be documented in a Record of Advice which we retain on file. You can request a copy of the RoA document at any time up to 7 years after the advice is provided.

Commissions

Capital Partners Risk Insurance Advisers receives commissions and other benefits from product providers. The commission will vary depending on the product or service which is recommended. You will be advised of the exact amount in the SoA or RoA.

Insurance Commissions

Capital Partners Risk Insurance Advisers receives a one-off upfront commission when you take out an insurance policy we recommend. We also receive a monthly commission payment for as long as you continue to hold the policy.

Other Benefits

We may also receive additional benefits by way of sponsorship of educations seminars, conferences or training days. Details of any benefits received above $100 will be maintained on a register which is available to you on request.

Adviser Remuneration

Serena West and Luke Towers are employees of Capital Partners Risk Insurance Advisers and are paid a salary. They may also receive a performance bonus which is based on a number of factors including the revenue that they generate for the practice.

Referral Fees and Commissions

In some situations Capital Partners Risk Insurance Advisers receive fees or commissions where you are referred to an external party. You will be advised of the referral arrangement whenever you are referred to an external party.

In some situations Capital Partners Risk Insurance Advisers pay fees or commissions to external parties who have referred you to us. You will be advised of the referral arrangements in the SoA provided to you.

Making a Complaint

We endeavour to provide you with the best advice and service at all times. If you are not satisfied with our services then we encourage you to contact us. Please call us or put your complaint in writing to our office. If you are not satisfied with our response you can refer it to the Credit & Investment Ombudsman Service. You can contact the CIO on 1800 138422. This service is provided to you free of charge.

Your Privacy

We are committed to protecting your privacy. We have a Privacy Policy which sets out how we collect, hold, use and disclose your personal information. We will collect personal information from you so that we can understand your personal situation and provide you with advice which meets your needs and objectives. We will also collect information from you to meet our obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act.

We will generally collect this information directly from you however in some cases we will seek your authority to collect if from other parties such as your accountant or your superannuation fund. If you do not provide us with all of the information that we request, we may not be able to provide our services to you.

We will hold and use your personal information so that we can continue to provide our services to you. We will only disclose your personal information to external parties where:

  • The law requires us to do so;
  • You consent for us to do so; and,
  • It is necessary for the purpose of implementing recommendations made by us.

Our Privacy Policy contains further information on how we collect, hold, use and disclose your personal information. It also sets out how you can access the information we hold about you, how to have it corrected and how to complain where you are not satisfied with how we have handled your personal information.

 

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