Financial Services Guide
Australian Financial Risk Management Pty Limited
ABN 21 001 696 868
AFS Licence 237186
Version 4.4 - Click the PDF icon to open the document
FSG prepared and issued 12 December 2020
By authority of Australian Financial Risk Management Pty Limited
Postal address, phone and fax for all offices
PO Box 866
The Junction NSW 2291
Telephone 1300 364 341
Fax 02 4929 4815
What is a Financial Services Guide (FSG)?
Our ‘Financial Services Guide’ or ‘FSG’ has been prepared to heighten client awareness of their basic rights in the financial services market. We want you to know what type of financial services we provide so that you may make an informed decision about whether to use our service.
This guide contains important information about:
The financial services we can offer you
How we and our associates are paid
Any potential conflict of interest we may have that may influence our advice
Our internal and external complaints handling procedures and how you can access them
When we give you financial advice it will be in the form of a Statement of Advice which will consider your objectives, financial situation and needs. This statement will also describe our fees, commissions and any associations which may have influenced the provision of the advice. We may also provide you with a Record of Advice, subsequent to a Statement of Advice, if there have been no significant changes in your personal circumstances or the basis of the advice has not significantly changed since your last Statement of Advice.
This will outline any changes in strategy and may include revised information on fees or commissions.
If we recommend a particular financial product to you we will also give you information about that product in the Product Disclosure Statement (PDS). To purchase products, you will be required to complete an application form online or attached to the relevant PDS.
The PDS contains information about the particular product and will assist you in making an informed decision about that product.
Who is responsible for the financial services provided?
Australian Financial Risk Management Pty Limited (AFRM) is responsible for the financial services provided including the distribution of this FSG.
Australian Financial Risk Management Pty Limited
ABN 21 001 696 868
Australian Financial Services Licence No. 237186
Level 4, 33 Alfred Street, Sydney, NSW 2000
Level 11, 699 Collins Street, Docklands, Melbourne, VIC 3008
Suite 16a, Level 1, 50 Glebe Road, The Junction, NSW 2291
Suite 26, Level 1, 25-27 Hay Street, Port Macquarie, NSW 2444
Level 6, 180 Ann Street, Brisbane, QLD 4000
What kinds of financial services and products are you authorised to provide?
Your adviser is authorised by AFRM to provide financial services advice on Risk Management, Business Succession and Insurance Planning. The products this authority relates to are specifically risk products e.g. Income protection, business expenses, life insurance, disablement and critical illness/trauma insurance products.
Tax implications of our advice
Under the Tax Agent Services Act 2009, AFRM is authorised by the Tax Practitioners Board to provide tax (financial) advice services on matters that are directly related to the nature of the financial planning advice provided to you. We will not consider any other tax matters in our advice to you. Where tax implications are discussed they are incidental to our recommendations and only included as an illustration to help you decide whether to implement our advice.
Do you have any relationships or associations with a Financial Product issuer?
ipac securities limited, through its 100% subsidiary ipac Group Services, is a 94.8% shareholder in Australian Financial Risk Management Pty Limited. AFRM LT Pty Limited holds the remaining 5.2%.
ipac securities limited (trading as AMP Advice) is a member of the AMP Group. The following entities are related or associated with ipac:
National Mutual Funds Management Limited
N.M. Superannuation Pty Limited
ipac asset management limited
Multiport Pty Limited
AMP Capital Funds Management Limited
AMP Capital Investors Limited
AMP Superannuation Limited
AMP Life Limited*
AMP Bank Limited
AMP Financial Planning Pty Limited
Cavendish Superannuation Pty Ltd
Australian Securities Administration Limited (ASAL)
Super Concepts Pty Ltd
SMSF Administration Solutions Pty Ltd
* AMP Life Limited ceased to be a related body or associated on 1 July 2020 following the sale of AMP's Australian and New Zealand wealth protection and mature businesses to Resolution Life.
What information should I provide to receive personalised advice?
You need to provide us with details of your personal objectives, current financial situation and any other relevant information, so that we can offer you the most appropriate advice possible.
You have the right not to disclose this information. If you do not provide full personal information the advice you receive may not be appropriate to your needs, objectives and financial situation.
You should read any warnings contained in the Statement of Advice very carefully before deciding on acquiring a financial product.
What information do you maintain in my file and can I examine my file?
How can I give you instructions about my Financial Products??
You may tell us how you would like to give us instructions. For example, by writing, telephone, fax or other means such as e-mail. To acquire a risk product a written application from the relevant PDS will be necessary.
How will I pay for the services provided??
We may receive a payment called brokerage, which is paid to us by the Financial Product issuer for placing new financial products. We may agree to rebate any financial risk advice fees to you by amounts we receive in this manner.
These brokerage payments are not an additional cost to you but are paid to AFRM by the Financial Product issuer. All brokerage payments are shown exclusive of any GST (unless otherwise indicated) and disclosed to you at the time you consider our financial product recommendations.
Fees will only be outlined in the form of a “Letter of Engagement” for your acceptance prior to any financial risk advice or claims management services commencing.
In our Letter of Engagement we may outline a fee payable for provision of our advice. The circumstances under which a fee will, and will not be charged, will be outlined in the Letter of Engagement.
AFRM may charge you (in the manner described above) between $550 and $5,500 (including GST) for the provision of financial risk advice.
Alternatively, we may charge a fee between $550 and $33,000 (including GST) for other agreed services such as the management of complex insurance claims.
These amounts should be used as a guide only. Fees (if applicable to you) will be considered in light of the complexity and extent of services we agree to provide you. A fee will only apply if we have obtained written agreement in a Letter of Engagement prior to provision of our advice of services.
How are any commissions, fees or other benefits received for providing the financial services?
Where a risk/life insurance product has been recommended the issuer of the product will pay AFRM brokerage.
The brokerage rates will range between O% and a legislated maximum 60% of your first year’s premium, varying from one product issuer to another. For example, assume you pay an insurance premium of $1,000, AFRM may receive a one-off payment of up to $600 in upfront brokerage.
Where a risk / life insurance product has been recommended the issuer of the product will pay AFRM ongoing brokerage. This brokerage can vary, depending on the product, and may range between 0% and 34.1% of your premium. For example, assume you pay an insurance premium of $1,000, AFRM may potentially receive up to $341 pa ongoing brokerage for as long as you hold the product.
Certain product issuers may provide AFRM with an annual additional payment where certain policies were commenced before 1 January 2018. The payment is based on set criteria and may be based on; the total amount of in force premium, the length of time policies have been held and/or the percentage of policies lapsed in any one year.
The maximum additional payment (excl GST and as a % of existing premium in force) that we may receive each year from product issuers is outlined below:
TAL may pay AFRM an additional payment of up to 2.39% based on the criteria above.
AIA may pay AFRM an additional payment of up to 10.00% based on the criteria above.
The amount of any fees, commissions/brokerage, bonuses or additional payments AFRM expect to receive will be included in the Statement of Advice we provide to you.
Will anyone be paid for referring me to you?
Where you have been referred to us by someone else we may pay them a fee or commission in relation to that referral. We will inform you in the Statement of Advice who will receive that fee or commission and the amount they will receive.
How does your adviser get paid?
Your adviser is an employee and receives a salary from AFRM, and may also receive a bonus or rewards. Where your adviser is also a Director of AFRM, they may also be entitled to profit share.
Your adviser may also receive non-monetary forms of benefits from product providers. They may include conferences, with respect to training and education, (excluding travel and accommodation for the conference), or token gifts, invitations to sporting or cultural events and dinners with less than a $300 value.
We maintain a register that records any forms of alternative remuneration. This is available to you upon request.
Does AFRM have Compensation Arrangements?
Australian Financial Risk Management Pty Limited has appropriate Professional Indemnity Insurance arrangements in place as required by the Corporations Act. This insurance will cover claims in relation to the conduct of current representatives / employees and those who may now no longer work for AFRM.
What should I do if I have a complaint?
Contact your adviser, or the ‘Complaints Manager’ at AFRM, and tell us your concerns.
If your complaint is not satisfactorily resolved within 3 days please write to:
Australian Financial Risk Management
PO Box 866
The Junction, NSW 2291
We recommend that you provide as much detail as possible in your correspondence. We will then seek to resolve your complaint quickly and fairly.
3. If your complaint is not satisfactorily resolved you have the right to refer the matter to the:
This service is provided free of charge and Australian Financial Risk Management Pty Limited is a member of this service.
The Australian Securities and Investment Commission (ASIC) also has an infoline 1300 300 630 where you can raise a complaint. If the complaint is in relation to the handling of your personal information, the Office of the Privacy Commissioner’s infoline is 1300 363 992.
Appendix: Privacy and Information Collection Statement
As part of the risk management advice process, we need to collect information about you. Where possible we will obtain that information directly from you, but if authorised by you we may also obtain it from other sources such as your financial planner or accountant. If that information is incomplete or inaccurate, this could affect our ability to fully or properly analyse your needs, objectives and financial situation, so our recommendations may not be completely appropriate or suitable for you.
Your adviser and AFRM may have access to this information when providing financial advice or services to you;
Your adviser may, in the future, disclose information to other advisers and those who are authorised by Australian Financial Risk Management Pty Ltd (AFRM) to review customers' needs and circumstances from time to time, including other companies within the group;
Your information may be disclosed as required or authorised by law and to anyone authorised by you.