GUIDE TO OUR RELATIONSHIP WITH YOU AND OTHERS
This document is Part 2 of the Combined Financial Services Guide (FSG) and Credit Guide (CG). It sets out specific details about me, as an Authorised Representative and Credit Representative of Magnitude Financial Planning (trading name of Magnitude Group Pty Ltd ABN 54 086 266 202 Australian Financial Services Licence No. 221557 Australian Credit Licence No. 221557) (‘Magnitude’). I am authorised by Magnitude to provide the financial services and consumer credit servicees described in Part 1 of the FSG and CG. This Part 2 should be read together with Part 1. I have been authorised by Magnitude to distribute this FSG and CG.
WHO IS YOUR FINANCIAL ADVISER
Your Financial Adviser is Phillip ( Phil ) HARRIS
In this document, the terms ‘I’, ‘me’, ‘us’, ‘we’ and ‘our’ refer to Phil HARRIS and Uberin Pty Ltd, trading as Magnitude Financial Planning. The term 'Representatives' refers generally to Magnitude's Authorised Representatives and Credit Representatives.
I am an Authorised Representative of Magnitude and am authorised by Magnitude to provide financial services, as described in this document.
My Authorised Representative number is 304192
WHAT EXPERIENCE DOES YOUR FINANCIAL ADVISER HAVE?
I have extensive experience in the financial planning industry.
I have spent over 25 years as a Financial Adviser offering advice to individual clients as well as small and large business clients. Prior to Magnitude, I was a Senior Executive Financial Adviser with Westpac Financial Planning for 17 years..
WHAT QUALIFICATIONS AND PROFESSIONAL MEMBERSHIPS DOES YOUR FINANCIAL ADVISER HAVE?
I hold a Diploma of Financial Planning and am a member of the Financial Planning Association of Australia Limited and also a Senior Associate of the Financial Services Institute of Australasia, plus Commissioner of Declarations.
DOES YOUR FINANCIAL ADVISER HAVE ANY ASSOCIATIONS OR RELATIONSHIPS?
I have an association with Uberin Pty Ltd – Magnitude Financial Planning Busselton ABN number 31 003 369 100 as a Director/Employee. Fees and commissions are paid to Uberin Pty Ltd-Magnitude Financial Planning Busselton ABN 31 003 369 100 by Magnitude for distribution to me.
WHAT AREAS IS YOUR FINANCIAL ADVISER AUTHORISED TO PROVIDE ADVICE ON?
I am authorised to provide the following financial services:
- Managed Investments
- Personal Insurance
- Self Managed Superannuation Funds – Investment Advice only (including advice to establish an SMSF)
MANAGED DISCRETIONARY ACCOUNT SERVICE
I may offer you a Managed Discretionary Account (MDA) Service to manage investments held through your nominated Asgard and/or BT Wrap account(s) on your behalf, in accordance with an Investment Program agreed with you. The Investment Program will be documented in an SoA which will detail my advice and how it will assist you in meeting your objectives.
An MDA Service means I can transact on nominated Asgard and/or BT Wrap account(s) without contacting you before each transaction. It is therefore important that you clearly understand how I will exercise the discretion and the limitations it imposes. Magnitude impose certain limits on my discretionary services, however you may tailor these services and apply further limits if you require. I will discuss this with you before I make any such recommendations and these limits will be documented in the Investment Program that is included in your SoA.
The Investment Program complies with Division 3 of Part 7.7 of the Corporations Act, and will contain:
- Statements about the nature and scope of the discretions that I will be authorised and required to exercise under the MDA Service and any investment strategy that is to be applied in exercising those discretions;
- Information about any significant risks associated with the MDA Service;
- The basis on which I consider the MDA Service to be suitable for you; and
- Warnings that the MDA service may not be suitable for you if you provide limited or inaccurate information relating to your relevant personal circumstances or if your relevant personal circumstances change.
This Adviser Profile, part two of the Magnitude FSG & CG, complies with ASIC Class Order [CO 04/194] Managed Discretionary Accounts.
Important information and risks to understand before accepting a MDA Service
If you accept an MDA Service, I may make changes to the investments held through your nominated Asgard and/or BT Wrap account(s) without your agreement, and without first consulting or notifying you. This presents a risk for you as you will not sign off each transaction before it is implemented.
To ensure the changes I make are appropriate for you I will only undertake transactions which are consistent with my understanding of your relevant personal circumstances and the Investment Program that is established for you.
- You may cancel the MDA Service or request changes to the Investment Program at any time by first notifying me in writing.
- For direct equities investments only and I will seek your instructions in writing on how any rights relating to the direct equity investments in your portfolio are to be exercised (for example, corporate actions). I will only act in accordance with your written instructions on how any rights relating to these products in your portfolio are to be exercised.
- For direct equities investments only, you may give me discretion to exercising any rights relating to the direct equity investments in your portfolio (for example, corporate actions), which are also within my Magnitude authorisation. In all other circumstances, I will only act in accordance with your written instructions on how any rights relating to these products in your portfolio are to be exercised.
- To protect your interests, Magnitude does not allow me to have authority to withdraw funds from the nominated Asgard and/or BT Wrap account(s). Further, I am not authorised to transact funds held outside your nominated Asgard and/or BT Wrap account(s) without your specific prior approval.
- As described above, Magnitude places certain limits on my discretionary services, such as:
- I am not permitted to trade on your nominated Asgard and/or BT Wrap account(s) in an attempt to make short term gains. All investment decisions must be made with long term goals in mind.
- I am required to maintain your portfolio within a specified range for each asset class.
- These limits on my discretion will be described in more detail in your SoA.
- You will be provided with access to on-line reporting for your nominated Asgard and/or BT Wrap account(s) to view the transactions undertaken on your behalf and the impact on your portfolio. If you do not have internet access you should not accept an MDA Service.
- As I will be acting with discretion it is important that I understand your relevant personal circumstances, needs and objectives at all times. If they change at any time, you must inform me immediately otherwise the services I provide may not be appropriate or suitable for you.
- I will review annually the Investment Program and the suitability of an MDA Service in light of your financial circumstances, needs and objectives. The MDA Service does not include a custodial or depository service, as this is facilitated through your nominated Asgard and/or BT Wrap account(s).
How to accept an MDA Service
Should you wish to use my advisory services, I will provide you with an SoA which contains my recommendations to you and this may include a recommendation for you to use the MDA Service offered by Magnitude. If you choose to accept the MDA Service, you must first enter into an MDA Service agreement with Magnitude which is contained in your SoA by signing, amongst other documents which authorise me to transact on your Asgard and/or BT Wrap account(s), the Authority to Proceed attached to the SoA.
ARE THERE ANY SERVICES YOUR FINANCIAL ADVISER IS NOT AUTHORISED BY MAGNITUDE TO PROVIDE?
I am not authorised to provide advice or services in the following areas:
- Consumer credit advice and assistance
- Strategic advice about consumer credit and consumer credit referrals
- Finance Broking
WHAT IS YOUR FINANCIAL ADVISER'S FEE STRUCTURE?
As part of detailed financial planning there are costs to you at various stages of the process. Before making any recommendations, I will discuss and agree the fees with you.
Advice fees are payable by you at the following stages:
- 1_ Recommendation: For having a personalised financial plan (Statement of Advice) prepared, a plan preparation fee (up to $6,000) is payable. The actual fee will depend on the complexity of your situation and the time it takes to prepare personal financial advice for you.
- 2_ Implementation: I may charge a placement fee and/or implementation fee to implement the recommendations in your financial plan. These are payable when you decide to proceed with the implementation of any one or more recommendations that I provide to you. The actual fee will depend on the complexity of your situation and the amount of funds invested, but will not exceed:
- (a) 3% of the initial funds invested; or
- (b) the maximum of entry fees or contribution fees specified in the Product Disclosure Statement (PDS) for the recommended product
- whichever is the greater.
- 3_ Ongoing Service and Reviews: If you choose to have me conduct a review of your financial plan to ensure that your financial strategies and financial products remain appropriate to you, you may be charged a review fee. If you choose to have me provide an ongoing service, you may be charged a fee of up to 2% p.a. of total funds under management.
- Where a placement fee and/or implementation fee is charged, I may rebate all or part of the initial commissions and/or ongoing commissions received from a product issuer, by way of an increase in your investment amount.
- Where I receive an initial commission and/or ongoing commission amount, I may rebate all or part of the implementation and/or placement fee to you.
HOW WILL YOUR FINANCIAL ADVISER BE PAID FOR THE SERVICES PROVIDED?
All fees and commissions disclosed in this FSG which are attributed to the services provided to you by me are paid to Magnitude. Magnitude will pay up to 100% of those fees and commissions to Uberin Pty Ltd – Busselton Financial Planning for distribution as directed by me.
OTHER PAYMENTS FROM PRODUCT PROVIDERS
Where I recommend you invest through Asgard eWRAP Investment, Asgard eWRAP Super/Pension, Asgard Master Trust (Asgard Superannuation, Asgard Employee Superannuation or Asgard Allocated Pension) (‘Qualifying Products’) and or another approved portfolio administration services and you accept that recommendation, I will receive the following payments:
When you invest via certain Asgard products, the ‘administrator’ for the Qualifying Products pays a licensee commission to Magnitude of up to 50% of the administration fees you pay to the administrator in relation to your investment. Magnitude may pass on up to 76.5% of the licensee commission it receives from the Administrator to us. This rate will vary depending on the total value of the licensee commissions I generate for Magnitude and the amount of new funds which my clients invest in the Asgard products shown above.
Example: I recommend you invest $100,000 in managed investments through Asgard eWRAP Investment and you accept the advice. This investment will incur an administration fee of $820 p.a., of which the administrator pays up to $410 p.a. to Magnitude. Of this amount, Magnitude may pass up to $314 on to me.
WILL ANY OTHER PARTIES BENEFIT FROM THE FINANCIAL SERVICES OFFERED IN THIS FSG & CG
In addition to the disclosure in Part 1 of the Magnitude FSG & CG, Westpac or a related company (excluding Asgard) receives benefits in the form of fees from fund managers that it selects as preferred partners. To be selected as a preferred partner these fund managers must meet certain hurdles (such as investment fund performance). Preferred partners may be given the opportunity to promote the benefit of their managed funds to Westpac Group representatives and other advisers who use the Asgard platform.
Westpac or a related company (excluding Asgard) receives up to 100% of the management fee received by preferred partners in respect of funds under administration in their products through the Asgard platform. This fee is negotiated individually with preferred partners and may vary from time to time. The total amount of fees received will depend on all relevant circumstances, including funds that flow into, and which remain under administration.
Example: If you were to invest $50,000 into a preferred partner’s product via the Asgard platform and the management fee charged by the preferred partner is 1% p.a., the preferred partner may pay up to $500 p.a. to Westpac or a related company (excluding Asgard). These fees are paid to Westpac or a related company (excluding Asgard) and not to financial advisers.
If you receive personal advice, information about the manner of calculation of the benefits (as set out above) will also be disclosed in the SOA. If you choose to receive financial planning services, you acknowledge that we will be able to advise you on preferred partners’ products. If you invest in a preferred partner’s product as a consequence of such advice, fees, as outlined above, are payable to Westpac or a related company (excluding Asgard) by the preferred partner. Our remuneration is not affected by these arrangements.
We are under no obligation to recommend preferred partners’ products and we receive no fees under the preferred partner arrangements. Westpac or a related company (excluding Asgard) retains 100% of the fees it receives from its preferred partners. Please note that fund managers in general may pay rebates to Asgard and in such cases 100% is passed on to you directly by Asgard.
WHAT OTHER BENEFITS MAY YOUR FINANCIAL ADVISER RECEIVE?
In addition to the remuneration detailed above, I am eligible to qualify for other benefits and entitlements as detailed below:
- Local conferences.
WILL YOUR FINANCIAL ADVISER BE PAID WHEN MAKING A REFERRAL?
I may receive a payment for making a referral to an external specialist such as an accountant or solicitor. Any amount payable will be disclosed in the SOA provided to you. This will be paid by the external specialist and will be at no additional cost to you.
If you have been referred to me by an external party and you accept the services I provide, I may make a payment to the external party for that referral. Any amount payable will be disclosed in the SOA provided to you. This will be paid by me to the external party and will be at no additional cost to you.
HOW CAN YOU CONTACT YOUR FINANCIAL ADVISER?
Your Financial Adviser: Phil Harris
Busselton Financial Planning
21 Queen St
Busselton WA 6280
Phone: 08 97512977
Fax: 08 97512988
Postal: PO BOX 989
Busselton WA 6280