Financial Services Guide

This Financial Services Guide (“FSG”) is an important document which we as an Australian Financial Services Licensee are required to provide to you. This FSG is designed to help you consider whether to use our financial services and provide you with an understanding of what to expect from our relationship.

About this document

The FSG contains important information about:

• who we are and how we can be contacted
• the services and types of products we are authorised to provide
• how we (and any other relevant parties) are remunerated
• potential confl icts of interestM
• internal and external dispute resolution procedures and how you can access them.

Other documents you may receive

If you choose to use any of our products or services you may also receive other important documents. These include:

Statement of Advice (SoA), Statement of Additional Advice (SoAA) or Record of Advice (RoA)

An SoA/SoAA is a document that sets out your situation, goals and your adviser’s fi nancial recommendations. Retail clients will normally receive an SoA/SoAA when we provide you with personal advice that takes into consideration your objectives, fi nancial situation and needs. The SoA/SoAA will contain:

• the advice
• the basis on which it is given
• information about fees, commissions and associations related to the provision of this advice.

The SoA/SoAA may not be required in certain circumstances, such as when the advice is in connection with a basic deposit product or non-cash payment facility and dependant on the type of advice provided by your adviser. Where an SoA/SoAA is not required, the details of such personal advice will be documented in an RoA.

An RoA is similar to an SoA/SoAA in that it captures the personal advice that your adviser provides, however the adviser retains the RoA. You can request a copy of the RoA from your adviser for up to seven years after the advice has been given. Your request can be made in writing or verbally.

Product Disclosure Statement (PDS)

A PDS is a document (or group of documents) that describes a fi nancial product. A PDS contains important information to assist you make a decision about the product. You will receive a PDS if a recommendation is made to acquire a particular fi nancial product (other than securities) or an offer is made to issue or arrange the issue of a fi nancial product.

Personal financial advice

In order for us to give you personal fi nancial advice you will need to provide details of your personal objectives, current fi nancial situation, needs and any other relevant information, so that we can provide you with appropriate advice.

You do not have to provide us with this information. If you choose not to provide this information, we may not be able to provide you with advice, or the advice you receive may be general in nature and may not be appropriate to your objectives, fi nancial situation and needs. You should read the warnings contained in any SoA carefully with regards to any decision relating to a fi nancial product.

We only give personal advice to you if you use the services of one of our advisers. We will not give you personal advice in our regular updates or marketing material, when you visit our website, or contact our Client Service Centre.

We maintain a record of your personal profi le including details of your objectives, fi nancial situation and needs. We also maintain records of any recommendations made to you. For information on how to access these records, please refer to the section “Personal information”.

Providing instructions to MEL

You can give us instructions by telephone, mail, email, fax or via our website. Please contact your adviser and alert them to your email, mail or fax if you are working within tight timeframes. There may be special instruction arrangements for some products and services. Any special instructions are explained in the relevant PDS.

Telephone conversations with MEL may be recorded.

Payments to MEL for the services provided

MEL may charge fees for services and products it provides. Where we provide you with personal advice, detailed information about fees, commissions or other benefi ts will be contained in the SoA, SoAA or RoA.

These fees may be charged in various ways, including:

• advice preparation fees
• an advisory fee or ongoing service fee
• funds under management
• brokerage on share trades and/or
• commission.

If you invest in a product we recommend, MEL may receive fees and/or commissions based on the value of your holding and the total value of MEL’s client holdings from the product issuer. These fees may include upfront fees, management fees (which includes transaction, ongoing and, if applicable, any borrowing costs) and/or brokerage. In some situations exit fees, account fees and transaction fees may apply. In addition, where you place funds in our trust account MEL will retain any accrued interest.

What MEL may charge you*

Broking fees

Brokerage will apply on all equity and derivative transactions undertaken with your adviser. The schedule of fees is shown below.

In addition to the above, there may be incidental fees charged for other administrative services. Details of any such fees are set out in our account opening forms and client terms and conditions.

Advice preparation fee

The fee for the preparation of advice will vary depending on your individual circumstances and your adviser’s assessment of the complexity of the advice provided (based on an estimation of the time taken to prepare the advice). The maximum fee charged will be $16,500, however depending on the complexity of the advice you may occasionally be charged a higher fee which will be agreed with you prior to your adviser preparing the advice.

The advice preparation fee is not limited to the preparation of advice on your original investment. You may be charged for additional advice. The fee charged will be agreed with you prior to your adviser preparing the advice.

Advisory fee

You may be charged an ongoing advisory fee of between 0% to 5% of the ongoing value of your investment.

For example for a portfolio balance of $250,000 where the maximum advisory fee of 5% is charged, MEL will receive $12,500.

*All noted fees are GST inclusive.

What commissions are paid to MEL by product issuers and others

Investment product commissions

Macquarie Group products

When we advise you about products offered by another member of the Macquarie Group and you acquire that product, we may receive commission up to a maximum of 12% of the investment amount.

For example for an investment of $100,000 in a product with an initial commission of 12%, MEL will receive an upfront commission of $12,000.

Trail commission – This will vary depending on the product and will be disclosed to you at the time of the financial recommendation.

For example for an investment of $100,000 in a product with a trail commission of 1%, MEL will receive $1,000.

Non Macquarie Group products

Below is a summary of the range of commissions we may receive from product issuers where you purchase their investment products:

Upfront commission – 0% to 6.60% of the amount you invest.

For example for an investment of $100,000 in a product with an initial commission of 6.6%, MEL will receive an upfront commission of $6,600.

Trail commission – 0% to 1% (per annum) of the ongoing value of your investment.

For example for an investment of $100,000 in a product with a trail commission of 1%, MEL will receive $1,000.

Personal risk insurance product commission

Where we recommend and you accept a personal risk insurance product, we will be entitled to commission from the product issuer. Macquarie will retain the commission relating to that product.

Below is a summary of the range of commissions we may receive from the product issuer where you purchase their insurance products:

Upfront commission – 0% to 134.75% of the fi rst year’s premium.

For example for a fi rst year premium of $1,000 with an initial commission of 134.75%, MEL will receive $1,347.50.

Trail/Renewal commission – 0% to 30% (per annum) of the ongoing annual premium.

For example for a renewal premium of $500 on an insurance product with an ongoing commission of 30%, MEL will receive $150.

Portfolio management service commission

Below is a summary of the range of commission we may receive from referring clients into Macquarie or non-Macquarie portfolio management services.

Establishment commission – 0% to 5% of the amount you invest.

For example for an investment of $250,000 with a maximum upfront commission of 5% MEL will receive $12,500.

Advisory commission – 0% to 5% per annum of the ongoing value of your investment.

For example for a portfolio balance of $250,000 where the maximum advisory commission of 5% is charged MEL will receive $12,500.

Broking fee – will apply on all equity transactions. The minimum brokerage charged will be $110 or up to maximum of 2.75% of the amount transacted, depending on the size of the transaction.

For example for a trade of $50,000 where the maximum brokerage of 2.75% is charged, MEL will receive $1,375.

Brokerage will apply on all equity transactions placed online, via the Macquarie Wrap Solutions website. For transactions valued up to and including $50,000, brokerage charged is $31.90. For transactions valued at greater than $50,000, brokerage charged is 0.33% of the amount transacted.

For example for a trade of $100,000 where the maximum brokerage of 0.33% is charged, MEL will receive $330.

Transaction fee – you may be charged up to 1.1% of the value of managed fund transactions within the portfolio management offering, Macquarie Premium Portfolio Service.

For example if you buy units to the value of $10,000 in a managed fund within the Macquarie Premium Portfolio Service with a transactional fee of 1.1%, MEL will receive $110.

DirecTrade (online execution only service) fees

When you trade online, you pay the following brokerage fees:

When you trade equities and warrants, over the phone you pay the following brokerage fees:

When you trade Exchange Traded Options and warrants, you pay the following brokerage fees:

If you choose to subscribe to DirecTrade Plus, the fees are $150 per month for Level 1 access or $200 per month for Level 2 access.

Level 1 access includes advanced charting, live streaming prices, dividend information, company profi les and live Australian Securities Exchange (ASX) headline announcements (please note there is a 20 minute delay on announcements). Level 2 access includes Level 1 access plus Financial Newswire and live full ASX announcements.

These monthly fees are waived if you average (over 3 months) 15 trades per month (Level 1) or 20 trades per month (Level 2).

In addition to the above, there may be incidental fees charged for other administrative services. Details of additional fees are set out in our account opening forms and client terms and conditions.

Remuneration or other benefits received by Macquarie staff

Our employees and directors receive salaries, bonuses, commission and other benefi ts from us. The benefi ts may be infl uenced by meeting certain sales, compliance and other targets. Your adviser will set out the remuneration and commissions they receive in the SoA given to you when providing personal advice.

Remuneration or benefi ts paid to those who refer clients to us

Where you have been referred to us by someone else, if we pay them a fee or commission in relation to that referral, we will make a separate disclosure to you. Additionally, we may receive payments to refer you to other professionals. These referral fees will be disclosed to you at the time of referral.

Alternative Remuneration Register

Alternative forms of remuneration, also called ‘soft dollar benefi ts’, are recorded by MEL. The Register outlines all alternative forms of remuneration received by MEL representatives. The Register is publicly available upon request.

Personal information

At Macquarie the privacy of your personal information is important to us. Any personal information collected will be handled in accordance with our Privacy Policy. Our Privacy Policy details how we comply with the requirements of the Privacy Act in the handling of your personal information. A copy of that policy can be obtained by visiting the Macquarie website at www.macquarie.com.au.

If you would like a copy of the information we hold, please contact your adviser. We may charge you our reasonable costs of accessing and/or photocopying personal information that you request.

Compensation Arrangements

Macquarie holds a Professional Indemnity Insurance Policy, which satisfi es the requirements for compensation arrangements under section 912B of the Corporations Act. Subject to the terms and conditions, the Policy provides cover for civil liability resulting from third party claims concerning the professional services provided by Macquarie and its employees and representatives.This policy continues to provide coverage for past employees and representatives in respect of professional services performed whilst engaged by Macquarie.

Making a complaint

Macquarie is committed to providing a high standard of client service and to maintaining our reputation for honesty and integrity. If our level of service or quality of products has failed to meet your expectations, we would like you to tell us about your concerns. Macquarie’s complaint handling process is designed to ensure that your concerns are treated seriously and that your complaint is addressed promptly and fairly. Your complaint may be lodged either verbally or in writing and will be dealt with in strict confidence.

If you are a retail client and have a complaint about the service provided to you, you should take the following steps:

• Contact your adviser and discuss your concerns
• Contact our Client Service Centre on 1800 789 789, or
• If your complaint is not satisfactorily resolved within 3 days, you can contact the Complaints Manager, Macquarie Private Wealth, PO Box 192, Australia Square NSW 1215.

If you are not satisfi ed with how your complaint is handled you may direct your concerns to:

Financial Ombudsman Service (FOS)
GPO Box 3
Melbourne VIC 3001

Phone:1300 780 808
Fax: (03) 9613 6399

www.fos.org.au
nfo@fos.org.au

 

Information about Macquarie Equities Limited

Any financial services offered are provided by advisers of Macquarie Private Wealth, who are representatives of Macquarie Equities Ltd ABN 41 002 574 923 (“MEL”). MEL is part of the Macquarie group of companies and as such is associated with other Macquarie Group companies that issue financial products. Should an investment recommendation be required, we may recommend that you invest in a Macquarie issued or branded product.

The Macquarie companies that MEL is associated with include Macquarie Private Portfolio Management Limited ABN 26 089 987 388 (‘MPPM”), Macquarie Investment Management Limited ABN 66 002 867 003 (“MIML”), Macquarie Bank Limited ABN 46 008 583 542 (“MBL”), Macquarie Financial Products Management Limited ABN 38 095 135 694 (“MFPM”), Macquarie Mortgages Pty Limited ABN 23 057 760 175 (“MMPL”) and Macquarie Direct Property Management Limited ABN 56 073 623 784 (“MDPML”).

MEL is a Participant of the Australian Securities Exchange Group (ASX).

MEL is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959, and MEL obligations do not represent deposits or other liabilities of Macquarie Bank Ltd ABN 46 008 583 542. Macquarie Bank Ltd does not guarantee or otherwise provide assurance in respect of the obligations of MEL.

Our financial services and financial products

MEL is authorised to offer advice (both general and personal) and deal in the following financial services and financial products:

• basic deposit products
• non-basic deposit products
• non-cash payment products
• derivatives
• government debentures, stocks or bonds
• investment life insurance products
• life risk insurance products
• managed investment schemes
• managed investment warrants
• retirement savings account products
• securities
• superannuation
• foreign exchange
• custodial or depository services.

We also provide an extensive range of financial advice and planning services including:

• investment planning advice
• superannuation and rollover advice
• retirement planning advice
• personal insurance advice
• portfolio review services.

MEL advisers have different levels of accreditation that allows them to advise on some or all of the services noted above. Your adviser can provide you with further details of their accreditation levels and the type of advice they can offer to you.

We can also assist you in relation to many products offered by members of the Macquarie Group and other financial institutions.

If you have any questions about our products or services you can speak to your adviser. If you do not have an adviser you can:

• Call our Client Service Centre on 1800 789 789
• Visit our website at www.macquarieprivatewealth.com.au
• Write to us at Macquarie Private Wealth, PO Box 192, Australian Square NSW 1215.