ENTRY LEVEL COMPETENCIES
PART 1: Financial Services Guide
Format: Written Report or Table
Word Limits: 1400 (approx. 1264)
Within the practical example pack provided is a Financial Services Guide (FSG). Clearly identify any shortcomings it may have and provide suitable recommendations for correction.
The introductory page should be a summary of what is to follow in the FSG.
INSERT as the opening paragraph …
The matters covered by the FSG include, who we are, how we can be contacted, what services we are authorised to provide to you, how we are remunerated, details of our internal and external dispute resolution procedures and how you can access them.
The introductory page should also state that the client can instruct the firm to take any type of action in regards to his or her portfolio at any time.
INSERT as the closing paragraph …
Any instructions you have in regards to your portfolio may be sent to the address outlined or the fax number stated in this guide.
The ‘Who will be providing the financial service to me?’ section does not contain enough detailed background information on the 360 degrees financial solutions advisory group.
INSERT as the second last paragraph within this section…
We have a strong commitment to adding value, and to making a positive impact on our clients’ long-term financial futures. We strive to form a strong relationship with our clients – a financial partnership for life.
The 360 degrees Financial Solutions team has been carefully selected and includes a diversity of professional experience, combining a wealth of skill and expertise to provide a unique level of personalised, professional service to all clients.
From our client service and administrative team to strategists and advisers, each member of 360 degrees Financial Solutions is working for you. Some will become well known to you, while others working hard behind the scenes may not be familiar, but you can be assured we all work for one goal…. the solution to your financial objectives.
As Harrison Planning Pty Ltd is a company; I would assume that there is more than one adviser. The FSG should therefore make note that each client would receive a separate document detailing his or her individual adviser.
INSERT in the ‘Before you get our advice,’ section and under the ‘Who will be providing the financial services to me?’ section…
Who is my individual adviser?
Your adviser (financial planner) is an employee of Harrison Planning Pty Ltd. The details of your adviser are provided to you as a separate Adviser Profile document.
The section on ‘How will I pay for the service?’ does not give sufficient specifications in regards to the fees charged and how they will be paid.
INSERT after the 5th paragraph in this section…
For regular monthly investments we usually set up so a small fee is paid to us automatically out of each deposit rather than having to send very small bills.
The investment manager and fund you choose will have certain management fees and expenses which are clearly set out in their prospectus or information brochure.
INSERT after the 2nd last paragraph…
In regards to the fees and commissions you will pay for our strategic financial planning advice,, our billing arrangements are as follows:
- For lump sum investments we may bill you up to $500 or 1% of the first $50,000 and no more.
- We will rebate to you the possible 4% brokerage on the whole amount and on regular savings plans and on-going superannuation contributions we will rebate some of the entry brokerage/commission but still accept 1% which will then be deducted by the fund manager and sent to us.
INSERT after last paragraph…
Our initial fees or time related fees are calculated by us and you are given an invoice to be paid at your earliest convenience.
Where an amount of initial brokerage is left in place for convenience (eg. Regular contributions, or rollovers), this is debited from your investment account by the fund manager and then sent to us. Any further entry fee charged by the fund manager is also deducted as funds are deposited. For most funds this is NIL but for some it may be up to 1%.
Annual trail fees are usually a portion of the fund manager’s own annual management fee that is calculated at whatever the specified percentage is per annum and deducted on a monthly basis from the fund. The portion paid to us by the fund manager is paid to us either monthly or quarterly according to their administration arrangements.