Version 8.0 August 2006
Financial services guide – Part A
This guide contains information about:
n AXA Financial Planning (AXAFP)
n Your adviser;
n The financial planning services and products your financial adviser can provide;
n How AXAFP, your financial adviser and other related parties are paid for the financial planning services provided to you;
n Any associations or relationships that could create potential conflicts of interests; and
Details on who to contact should you have a complaint.
Financial services guide – Part B Financial adviser profile
This guide must be read in conjunction with the Financial adviser profile as it forms part of this financial services guide. The Financial adviser profile provides more detailed information about your financial adviser such as their contact details, the types of financial services they can provide and details of fees and charges.
Please retain this document together with the Financial adviser profile for your reference and any future dealings with AXAFP.
What other documents might you receive?
You may also receive the following documents, designed to help you make an informed decision on any financial strategy or product recommended.
Statement of Advice (SoA)
All personal advice provided to you will be outlined in an SoA. The SoA will contain personal advice, the basis on which it is given, details of fees, commissions and information on relevant associations. The SoA is used for initial advice and any subsequent advice provided may be provided in the form of a Record of Advice (RoA), a Statement of Additional Advice (SoAA) or another form of advice documentation.
Product Disclosure Statement (PDS)
You will receive a PDS if your financial adviser has provided advice on a particular product. A PDS will contain the key features of the financial product, significant risks and benefits, and fees associated with the financial product.
Who is AXAFP?
AXAFP is wholly owned by the National Mutual Life Association of Australasia Ltd (NMLA) and is a member of the global AXA group (an international financial services organisation).
AXAFP is one of Australia’s leading financial planning organisations and has been operating since 1996. AXAFP holds an Australian Financial Service Licence and can offer a range of financial services listed within this FSG.
AXAFP is a principal member of the Financial Planning Association (FPA) and as such, AXAFP and their financial advisers have adopted the FPA’s Code of Ethics and rules of professional conduct.
AXAFP has approved the distribution of this FSG.
Who is your financial adviser?
Your financial adviser will be the authorised representative listed in the Your financial adviser profile section of this Financial Services Guide.
Your financial adviser can provide you with tailored solutions to assist you to meet your stated financial needs, lifestyle goals and objectives.
What kinds of financial services and products are available?
The financial advisers of AXAFP can offer a range of insurance, investment, superannuation and retirement strategies and products and AXA owned platforms (Summit, Generations and AXcess).
AXAFP maintains an Approved Product List, containing a list of financial products that have been researched by a number of external research houses. A copy of the Approved Product List can be supplied to you upon request.
How will you pay for the services provided?
AXAFP and your financial adviser may be paid by various methods.
Your financial adviser will discuss and agree the method of payment with you before any financial services are provided to you. In addition, where you receive personal advice, your Statement of Advice will outline all remuneration and other benefits associated with the advice provided.
How are AXAFP and their financial advisers remunerated?
All fees, commissions and brokerage disclosed in the Statement of Advice are payable to AXAFP. AXAFP will retain a portion of the fees, commissions and/or brokerage and forward the balance to your financial adviser.
Your financial adviser may also receive other benefits. All remuneration details are included in the Financial adviser profile. In addition, a public register is available for inspection on request and is to be provided to you within 7 days of the request date. AXAFP and your financial adviser must maintain this register in line with industry standards to document any alternative forms of remuneration received.
Does AXAFP have any relationships or associations with financial product issuers?
Your financial adviser can provide advice on products from a wide range of financial product providers, some of which are part of the global AXA group and as such are affiliated with AXAFP, including:
National Mutual Life Association of Australasia
National Mutual Funds Management Limited
NMMT (Summit & Generations)
National Mutual Superannuation Pty Ltd
Alliance Capital Management Australia Limited
ipac asset management limited
Bernstein Investment Research Management
AXA Rosenberg Investment Management Asia Pacific Limited
AXcess Self Managed Super
What information should you provide to receive personalised advice?
Your financial adviser will complete a Client Questionnaire with you, which will record your personal objectives, lifestyle goals, details of your current financial situation and any relevant information. The information obtained will be assessed by your financial adviser to assist them in providing appropriate advice.
However, you have the right to withhold private information, but this may compromise the effectiveness of advice you receive.
You should read any warnings contained in the Client Questionnaire and Statement of Advice carefully before making any decision relating to a financial strategy or product.
How can you give instructions to your financial adviser about your Financial Product/s?
You can contact your financial adviser directly with any instructions relating to your financial products.
What information is maintained in your file and can you examine the client file?
Your financial adviser will maintain a record of your personal information including details of your objectives and financial situation. Your financial adviser will also maintain a record of any recommendations made to you. If you wish to examine your file please ask your financial adviser and they will make arrangements for you to do so.
Who may access the information you provide?
AXAFP and your financial adviser are committed to implementing and promoting a privacy policy, which will ensure the privacy and security of your personal information. Please ask your financial adviser if you wish to obtain a copy of the privacy policy.
It is important to note that in order to best meet your needs and provide you with financial services and advice, your financial adviser may need to disclose your personal information to other parties. Typically these parties may include fund managers, life companies, related entities and other licensees. Similarly your financial adviser may bring to your attention products and services or other information which may be relevant to your situation. You will be given the opportunity to choose whether or not you continue to receive such information.
AXAFP reserves the right to appoint another financial adviser to ensure your ongoing needs continue to be met. In these circumstances AXAFP will write to you advising you of the change.
What should you do if you have a complaint?
If you have any complaints about the services provided to you or about personal information held you should take the following steps:
1 Contact your financial adviser and tell them about your complaint.
2 If your complaint is not satisfactorily resolved within 3 days, please contact the AXAFP office on 137292 or put your complaint in writing, send it to:
AXAFP Financial Planning
Attention: Compliance and Advisory Services
Level 3, 447 Collins Street
MELBOURNE VIC 3000
AXAFP will try to resolve your complaint quickly and fairly.
3 If your complaint has still not been resolved by AXAFP, you may escalate your complaint to one of the External Complaints Schemes listed in the table, of which AXAFP is a member.
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Type of complaint |
External complaints service |
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Financial advice, investments, superannuation or insurance matters |
Financial Industry Complaints Service (FICS) on 1800 335 405 |
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Superannuation matters |
FICS (as above) or the Superannuation Complaints Tribunal on 1300 780 808. |
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General insurance advice |
Insurance Ombudsman Service on 1300 780 808 |
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Personal information held |
The Privacy Commissioner on 1300 363 992 |
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The Australian Securities and Investments Commission (ASIC) can be contacted on their infoline, 1300 300 630 to confirm which body may assist you to settle your complaint. |
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Financial Services Guide Part
B
Version 8.1.0 - 28 August 2006
| Who is your Financial Planner? |
Your Financial Planner is Ian McLennan. AXA Financial Planning has entered into an agreement with McLennan Financial Solutions and have agreed to supply the services of Ian McLennan. Ian McLennan is an authorised representative of AXA Financial Planning. Ian is authorised to provide financial advice and deal in financial products on behalf of AXA Financial Planning. Ian is also registered with the Australian Securities and Investment Commission (ASIC) and has been allocated a representative number of 250643. McLennan Financial Solutions Contact Details 69 Bent Street PO Box 798 Lithgow NSW 2790 Telephone: 0263 531072 Facsimile: 0263 531961 Email Address: info@mfsolutions.com.au Education and Qualifications · Graduate Diploma of Financial Planning Deakin UniversityCertified Financial Planner, Completed March,2003 Experience: · 15 YearsMembership: · Associate Member of the FPASercices: We offer a renage of services which include: Advice · Guidance on budgeting · Estate planning considerations · Retirement planning· Savings & wealth creation strategies · Centrelink planning · Risk and insurance analysis· Investment planning · Super/divorce planning · Business succession planning· Superannuation planning · Salary packaging advice · Pre-retirement planning
Products · Cash management trusts · Geared products · Superannuation products · Direct fixed interest · Master trust products · Retirement income streams· Direct shares · Personal and group insurance · Retail and wholesale managed investment schemes· Socially responsible investments · Business succession insurance · Hedge funds
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| Costs |
We offer a range of payment options which include: Fee for Service: A Fee for Service is payable for the provision of the following services: · the collection and analysis of your personal and financial situation· the consideration and investigation of financial planning strategies and financial products· the preparation and construction of a Statement of AdviceThe Fee for Service is a flat fee of $880. (Rebated if plan is implemented) Prior to the commencement of any services we will provide you with a Service Agreement which will outline the services you have requested and the payment method agreed upon. Asset Based Fee: An Asset Based Fee is payable for the provision of the following services: · the implementation of the recommendations made in the Statement of AdviceThe Asset Based Fee is calculated using the following sliding scale and is based on a percentage of the size of the investment portfolio on which advice is being given. 4.4% of the investment portfolio up to $50,000 1.5% of the investment portfolio balance. This implementation fee is capped at a maximum of $5,800. Prior to the commencement of any services we will provide you with a Service Agreement which will outline the services you have requested and the payment method agreed upon. Commissions: A Commission may be payable when purchasing a financial product. Commission is calculated as a percentage of the funds you have invested and/or the insurance premium paid by you. Upfront commission: is a one off payment payable at the time of purchase and can range betweenn · Investment and superannuation products – up to 5.5% of the funds invested (deducted from the funds invested)· Insurance products – between 11% and 125% of the premium you pay Ongoing commission is payable during the life of your financial product as part of the product provider’s ongoing charges and can range between: Investment and Super products – up to 0.80% pa of the investment amount. (deducted from the funds Invested) Insurance products – up to 40% pa of the renewal premium. Examples: 1. If you invested $10,000 and an upfront commission of 5.5% was payable AXA Financial Planning would receive an upfront commission of $550. If you retained this $10,000 investment and an ongoing commission of 0.55% was payable, AXA Financial Planning will receive $55 per annum. 2. If you take out Insurance cover with an annual premium of $2,000 and an upfront commission of 125% is payable, AXA Financial Planning will receive an upfront commission of $2,500. If you retain this cover and the annual premium remains at $2,000 and an ongoing commission of 40% per annun is payable AXA Financial Planning will receive $800 per annum.
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| How will I pay for the services provided? |
It is important that you understand the costs associated with the financial services we provide. We offer a range of payment options which include:
* Fee for service * Asset based fee * Commissions * Review fee
All fees and/or commissions charged will be fully detailed in the Statement of Advice you receive. All fees disclosed are inclusive of GST.
Fee for service A fee for service is payable for the provision of the following services: * The collection and analysis of your personal and financial situation * the consideration and investigation of financial planning strategies and financial products * the preparation and construction of a Statement of Advice The fee for service is a flat fee of $880. (Rebated if plan in implemented) Prior to the commencement of any services we will provide you with a Service Agreement which will outline the services you have requested and the payment method agreed upon.
Asset based fee An Asset based fee is payable for the provision of the following services: * The implementation of the recommendations made in the Statement of Advice. The Asset Based Fee is calculated using the following sliding scale and is based on a percentage of the size of the investment portfolio on which advice is being given. 4.4% of the investment portfolio up to $50,000 1.5% of the investment portfolio balance. This implementation fee is capped at a maximum of $5,800. Prior to the commencement of any services we will provide you with a service agreement which will outline the services you have requested and the payment method agreed upon.
Commissions: A commission may be payable when purchasing a financial product. Commission is calculated as a percentage of the funds you have invested and/or the insurance premium paid by you.
A. Upfront Commissions: Upfront commissions are a one off payment payable at the time of purchase. They are calculated as a percentage of the funds you have invested and/or the premium paid by you. The commissions are deducted from the amount invested and/or premium paid. Investment and Super products – up to 5.5% of the investment amount (deducted from the funds invested). Insurance products – between 11% and 125% of the premium you pay.
B. Ongoing Commissions: Ongoing commission is payable during the life of your financial product as part of the product provider’s ongoing charges and can range between: Investment and Super products – up to 0.80% pa of the investment amount (deducted from the funds invested). Insurance products – up to 40% pa of the renewal premium. Example: 1)If you invested $10,000 and an upfront commission of 5.5% was payable AXA Financial Planning would receive an upfront commission of $550. If you retained this $10,000 investment and an ongoing commission of 0.55% was payable, AXA Financial Planning would also receive this ongoing commission on the balance of the investment for as long as you held the investment. 2)If you take out Insurance cover with an annual premium of $2,000 and an upfront commission of 125% is payable, AXA Financial Planning will receive an upfront commission of $2,500. If you retain this cover the annual premium remains at $2,000. Review Fee: A review fee may be charged to ensure the financial strategies and products remain appropriate to your needs. The review fee can be charged as a commission (a maximum of 1.65%) or a fee for service based on an hourly rate of $121, inclusive of GST. Prior to the commencement of any review services we will provide you with a Review Service Agreement which will outline the review services you have requested and the payment method agreed upon. All Fees and/or commissions charged will be fully detailed in the Statement of Advice you receive. All fees disclosed are inclusive of GST
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How will Ian McLennan be paid for the services provided? |
Remuneration - Practice AXA Financial Planning will pay 97% of the gross revenue received for the Financial services and/or products recommended. AXA Financial Planning will retain 3% of the gross revenue received. Remuneration - Authorised Representative Ian received a commission and may receive bonuses and other benefits for the provision of Financial Services. Other Benefits: McLennan Financial Solutions and/or their Financial Planners may receive the following benefits. These benefits are payable by the entities noted below and are not an additional charge to you A public register is held by AXA Financial Planning and Ian outlining the particulars of other benefits provided. You may request to see a copy of this register. AXA Financial Planning · Covering the cost of education programs (upto $250 per annum)· Covering the cost of business equipment and training. Points are accrued if net practice earnings are over $50,000. One point is earned per $1.25 (inc GST). For example, if net practice earnings are $100,000, 40,000 points would accrue (equates to $320).· payment of professional membership fees, prizes, awards, hospitality events (e.g. tennis, football), & subsidised conferences to the value of $5,000 per annum.· Ability to transfer client base to AXA Financial Planing. The amount payable is based on a multiple of the annual revenue, ranging from 1.5-3 (for both AXA and non AXA products). For example, if a client base generated $200,000 revenue of both AXA and non AXA term insurance this would result in a buy out value of $480,000.· To streamline the services we provide, we may recommend AXA products. As a consequence, we participate in the Value Participation Scheme (VPS). VPS is a cash payment based on total funds under management for AXA products.
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Will anyone be paid for referring me to you? |
From time to time you may be referred to an external service provider to assist you in areas that are not covered under Ian’s authority with AXA Financial Planning. In these Instances, a third party referrer may receive a referral fee or commission for introducing you to Ian McLennan. The fee will be paid to the referrer by AXA Financial Planning and will not involve any additional costs to you. Any referral fees payable will be detailed in your Statement of Advice.
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