Financial Services Guide

Preparation date: 2 October 2023

 

  1. What is the purpose of this guide?

The purpose of this guide is to explain the financial services offered by Strategic Financial Management (Strategic), specifically:

    • Who we are and who will provide financial services to you;
    • How to contact us;
    • What financial services can be provided and how these services will be provided to you;
    • The remuneration received by Strategic and other related parties in relation to the provision of the financial services;
    • How we maintain and protect your personal information; and
    • How to access our internal and external complaints handling arrangements.

 

  1. Strategic

Strategic Financial Management Pty Ltd (ABN 80 817 212 446) is licensed under the Corporations Act to provide you financial advice and deal in financial products. The Australian Financial Services Licence number is 438950.

When we provide you financial services, Strategic will be acting on your behalf, and any advice will be provided to you by representatives of Strategic.

Strategic has been providing financial advice since 1995.

 

How to contact us

    • By Phone: 03 9818 7222
    • By Fax: 03 9818 0399
    • By Email: info@strategic.com.au
    • By Mail: Level 2, 41 Burwood Road, Hawthorn VIC   3122

 

  1. Why we are considered not independent

Strategic does not receive commissions on investments or investment products, nor do we receive any referral fees or benefits from other professionals such as lawyers, accountants, insurers, bankers etc, that we may partner with to assist you achieve the outcomes you are seeking.   Noting, we cannot be referred as being independent, impartial, or unbiased under section 923A of the Corporations Act because:

    • Representatives of Strategic are generally restricted to recommending financial products from our Approved Product List
    • Strategic has a minor equity holder (<5%) and client/s in a company with whom we have a professional relationship, being SG Hiscock and Company. Neither Strategic, nor its representatives hold any equity interest in SG Hiscock and Company;
    • Strategic has an equity interest in Summit Financial Group, a mortgage broker.

 

  1. What financial services can we provide?

We are authorised to provide financial product advice on and deal in:

    • Superannuation;
    • Securities;
    • Government debentures, stocks and bonds;
    • Deposit products;
    • Managed investment schemes;
    • Life insurance;
    • Retirement savings accounts;
    • Margin Lending.

For over 20 years, Strategic advisers have assisted clients with:

    • Investments, including
      • Direct shares
      • Share trusts (managed investments)
      • Property and property trusts
      • Asset allocation
    • Wealth accumulation strategies, including
      • Remuneration planning
      • Gearing – borrowing to invest
      • Taxation considerations including the analysis of alternate investment structures. (such as partnerships, trusts, companies and super)
    • Superannuation, including
      • Self managed super funds
      • Super income streams
    • Finance and banking
    • Wealth protection strategies
    • Life insurance
    • Estate planning
    • Financial projections to ensure that you are on target to reach your financial goals.

 

When Strategic provides you personal financial advice, we will generally take into account your current financial needs and future needs.

Our Representatives can only provide advice on financial products within these classes where they appear on the Strategic “Approved Product List”. The Approved Product List includes a large range of investment products for which the appropriate research and analysis has been undertaken.

A Representative of Strategic cannot advise you on, or influence you in favour of, a financial product which is not on the approved product list; or any arrangement where your Financial Adviser can make changes to your portfolio before obtaining your consent unless they are specifically authorised to.

 

  1. The Strategic process

    1. An initial meeting to ascertain your objectives and your current financial position, including:
      • Assets and Liabilities
      • Tax strategies and associated tax entities (trusts and companies)
      • Investment strategy
      • Life insurance policies
      • Wills and Powers of Attorney
    1. Preparation of a written report (Statement of Advice) that:
      • identifies your financial objectives and your current financial position;
      • details our recommendations;
      • provides an explanation for each recommendation;
      • enables you to make informed financial decisions.
    1. Periodic review of
      • your financial objectives;
      • your financial position; and
      • our advice to you.

 

  1. What ongoing services are provided to you?

Strategic offers a comprehensive service to ensure that you are on track to achieve your financial objectives. In addition to the review of the advice we provide you (as previously detailed), other ongoing services include:

    • Administration of your investment portfolio
    • Comprehensive reports on your investment portfolio including:
    • Portfolio valuation
    • Transaction reports
    • Performance reports
    • Consolidated group holding reports
    • Tax reports

 

  1. Other documents you may also receive

You may also receive other documents when Strategic provides financial services or products to you.

How is the advice provided to you – Statement of Advice

    • We will provide you a Statement of Advice (SoA) when we give you advice that takes into account your personal financial situation, needs and objectives (“personal financial advice”).
    • The objective of a SoA is to assist you to decide whether you should act on the advice provided.   The SoA will detail:
    • The advice;
    • The basis on which the advice is given;
    • Information about fees and commissions;
    • Any associations we have with other parties which may have influenced the advice.
    • After providing you with our Statement of Advice, any ongoing personal advice that we may provide will be documented in a further ‘Statement of Advice’ or a ‘Record of Advice’ depending on the nature of the advice.
    • Copies of all advice documents will be retained on your client file and if you have not already been provided with one you may ask for a copy of these documents at any time.

Financial product information – Product Disclosure Statement

    • If we make a recommendation to acquire a particular financial product (other than securities such as listed shares), we will also provide you with a Product Disclosure Statement (PDS) to assist you in making an informed decision whether to acquire the financial product.
    • The PDS contains information about the particular product including:
    • the features;
    • the benefits;
    • fees; and
    • risks associated with that product.

 

  1. Can Strategic guarantee the success of your financial plan?

    • Strategic cannot guarantee the success of your financial plan.
    • However, Strategic will provide you with the necessary information in order for you to make an informed financial decision.
    • Therefore we will explain to you the advantages and disadvantages associated with all recommendations.
    • You should ensure you fully understand these risks, including:
      • the potential disadvantages of implementing the recommendation, and
      • the potential disadvantages of not implementing the recommendation.

 

  1. Do any relationships or associations exist which may influence the financial product advice we provide?

There are no associations that exist which may influence the financial product advice we provide.

 

  1. Remuneration received by us and other related parties

10.1. The initial appointment

The initial meeting is free and you are under no obligation to proceed further.

10.2. Written report (Statement of Advice)

Strategic will charge a minimum fee of $5,500 (inclusive of GST) for the preparation of your written Statement of Advice – this will vary depending on the complexity of your financial situation and can  only be ascertained once we have all the information. The maximum fee is $22,000 (inclusive of GST).

The fee will be fully disclosed to you prior to Strategic commencing the financial plan.

10.3. Fees payable by you to Strategic
    • Initial placement fee

There is no fee payable by you to Strategic for investments placed by Strategic.

    • On-going management fee

An on-going fee is charged by Strategic for the provision of the following services:

      • financial advice;
      • investment advice;
      • administration services.

The annualised amount is set out in the schedule below:

 

Value of your portfolio assets Ongoing fee (ex GST) Ongoing fee (incl GST)
 First $2,000,000 (1)  1.00% pa  1.10% pa
 Next $2,000,000  0.75% pa  0.825% pa
 Balance over $4,000,000  0.50% pa  0.55% pa

(1) A minimum fee of $1,100 (inc GST) per month will apply.

    • The fee is payable monthly via direct debit from your nominated bank account and is only levied on assets that fall under the responsibility for advice by Strategic or as mutually agreed.
    • For example, if you have $4.0 million of assets managed by Strategic, then the fee payable by you to Strategic (including GST) will be $38,500 pa. This is an effective rate of 0.96% pa on the $4 million (and 0.55% pa will be charged on any additional assets over and above this that are managed by Strategic).
    • If we are able to calculate precisely what our fees will be at the time we give you personal advice, we will tell you the amount then. Otherwise, we will provide as good an indication as we can at that time.
10.4. Fees payable by you for buying and selling listed securities
    • When you buy or sell listed securities (such as an Australian share), fees are payable by you to a share broker. The fees payable should be fully disclosed by the share broker before the transaction.   The brokerage rates and terms will depend on the share broker utilised.
    • Strategic does not receive any brokerage commission.
10.5. Fees payable by you to investment fund managers
    • All fees charged by an investment fund manager will be disclosed in the fund’s Product Disclosure Statement (PDS).
    • The PDS will be provided to you before investing in a Fund and the following provides a general overview of the various fees a fund manager may charge:
      • Entry fees.   Fund managers may charge an entry fee to invest. This fee is deducted as a percentage of the amount invested. We currently do not use any funds that charge an entry fee. We do not intend to use a fund that charges an entry fee unless there is no alternative method to access that manager’s expertise.
      • On-going fees.   The management expense ratio (MER) measures the total fees payable by the client to the fund managers for operating expenses and managing the investment fund. This is payable on a monthly basis out of the assets of the fund. The intention of Strategic is to invest in ‘wholesale’ managed funds which reduce the MER.
      • Exit fees.   Fund managers may charge an exit fee when you redeem money. This fee is deducted as a percentage of the amount redeemed. We currently do not use any funds that charge an exit fee. We do not use a fund that charges an exit fee unless there is no alternative method to access that manager’s expertise.
10.6. Fees Strategic may receive from Fund Managers
    • We currently do not use any Fund Managers that pay Strategic a commission.
    • We do not intend to use a Fund Manager that pays us a commission unless there is no alternative method to access that manager’s expertise.
    • Any fees that Strategic may receive from fund managers will be disclosed to you, and if it is greater than $100 pa, then these fees will be fully rebated to you.
10.7. Fees Strategic may receive from Insurance Companies
    • When you purchase life insurance, (including disability insurance), part of your insurance premium may be payable to your life insurance broker.
    • The fees payable should be fully disclosed by the insurance broker before the transaction.
    • The brokerage rates and terms will depend on the insurance broker utilised.
    • Strategic does not receive any brokerage commission from any life insurance you purchase.

 

  1. How are representatives and associates of Strategic remunerated?

    • All Strategic employees receive a salary.
    • Bonuses may be paid to Strategic employees based on a combination of their own performance and the overall performance of Strategic.
    • Equity Holders of Strategic receive a share of Strategic’s profits.
    • Representatives, directors and related parties of Strategic do not directly or indirectly receive any commissions or fees.

 

  1. What are your rights and Strategic’s obligations?

    • Strategic must provide you a FSG (this document) before providing you financial advice or dealing on your behalf.
    • If there is any change to the FSG (relating to information that must be disclosed to you), then Strategic must provide you with an updated FSG before providing further financial services to you.
    • If we provide you personal financial advice, Strategic must provide you with a Statement of Advice (SoA).
    • A SoA must disclose the exact amount of any commission received by a referring party, Strategic or other related parties in relation to that advice. (If the exact amount cannot be calculated at that time, the method of its calculation will be disclosed.)
    • If we make a recommendation to acquire a particular financial product (other than securities such as listed shares), Strategic must provide you with a Product Disclosure Statement (PDS).
    • You have the right to know about details of commissions and other benefits Strategic receive for recommending investments when we have considered your financial situation, objectives and needs.
    • You have the right to be told of any material benefits or interests of Strategic which may influence any personal financial advice provided by us.
    • You have a right to receive advice that is suitable to your investment objectives, financial circumstances and particular needs if you have given us adequate and accurate details about these matters.
    • This requires Strategic to maintain a confidential record of your financial situation, investment objectives and lifestyle objectives. You have the right to examine this file at any time.
    • You have the right not to divulge any personal or financial information to us. However, this may result in a recommendation that is not suitable for you.
    • You have the right to know about the risks associated with any investment or strategy recommended.
    • The Australian Securities and Investment Commission (ASIC) also has a Freecall Infoline on 1300 300 630 which you may use to obtain information about your rights.

 

  1. How can you give instructions to us?

    • You may specify how you would like to give instructions to us – for example by:
      • Telephone
      • Fax
      • Email
      • Mail
      • In person
    • However, all investment lodgements and redemptions must generally be in writing and accompanied by your signature.

 

  1. What happens if you have a complaint?

If you have a complaint regarding the provisions of financial service provided, you should take the following steps:

  1. Speak to your Representative about your concerns; or
  2. Contact the Complaints Manager of Strategic about your complaint on 03 9818 7222
  3. If after speaking to your Representative or the Complaints Manager and your complaint is not resolved within three (3) days, please put your complaint in writing and send it to us, addressed to:

The Complaints Manager
Strategic Financial Management
PO Box 6056
Hawthorn West LPO, VIC 3122

Whilst every endeavour will be made to resolve the matter promptly and impartially, if you are still not satisfied with our handling of the complaint and wish to proceed further, you can lodge a complaint with the Australian Financial Complaints Authority or AFCA. AFCA provides fair and independent financial services resolution that is free to consumers.

 

AFCA can be contacted at:

Mail                  GPO Box 3, Melbourne   VIC   3001
Telephone       1800 931 678
Email                info@afca.org.au
Internet            www.afca.org.au

 

Alternatively, other matters can be referred to the industry regulator, the Australian Securities and Investments Commission (ASIC) on free call 1300 300 630 or you can visit the website www.asic.gov.au

 

  1. Insurance

Strategic Financial Management Pty Ltd has Professional Indemnity insurance in place to cover itself and its representatives for the financial services we provide. We believe that the cover is adequate to meet Strategic Financial Management Pty Ltd’s requirements as an Australian Financial Services licensee.

 

  1. How we maintain and protect your personal information

Strategic Financial Management Pty Ltd (ABN 80 817 212 446) (‘Strategic’, ‘we’, ‘our’, ‘us’) is committed to ensuring the confidentiality and security of your personal information. Our Privacy Policy, which details our handling of information, is available upon request or by accessing our website: www.strategic.com.au.

 

The entity collecting the information

The identity and contact details of Strategic are as follows:

Strategic Privacy Officer
info@strategic.com.au
Level 2, 41 Burwood Road, Hawthorn, Vic, 3122
PO Box 6056, Hawthorn West LPO, Vic, 3122

 

Circumstances of collection

We collect information about you from your discussions with our representatives, application forms you complete online or on paper, your website enquiries, email or postal correspondence, or telephone enquiry. We may also obtain on your behalf personal information (including credit information) about you from providers of financial products or services to you, if necessary for us to provide our services.

 

Consequences of not providing us with the information

If you do not provide some or all of the personal information requested by us, we may be unable to provide you with our services.

 

Use and disclosure of information

We may use and disclose the personal information we collect about you to:

    • provide you with financial advice
    • implement your instructions, including to establish and manage investments and accounts, and arrange and maintain insurance cover;
    • make arrangements to accept and process deposits or contributions, transfer funds or pay benefits;
    • report on the implementation of your financial plan or performance of your investments;
    • let you know about other products or services we offer or invite you to events;
    • conduct our business and perform other management and administration tasks;
    • consider your concerns or complaints and manage legal actions involving Strategic;
    • comply with relevant laws, regulations and other legal obligations; and
    • help us improve the products and services and enhance our overall business.

 

Who will the information be disclosed to?

    • The types of organisations to whom we may need to disclose your personal information to include:
    • a related entity of Strategic;
    • any organisations that provide you with, manage or administer financial products or services, including any fund (administrator or trustee) to which your benefit is to be transferred or rolled over;
    • other financial advisers, custodians, external dispute resolution services, insurers, investment managers or mail houses;
    • your employer (regarding employer sponsored superannuation arrangements);
    • medical practitioners and other relevant professionals, where you have applied for insurance cover or made a claim;
    • any financial institution who holds an account for you;
    • any professional advisers appointed by us;
    • businesses that may have referred you to us;
    • an agent, professional adviser, or service provider we engage to carry out our functions and activities, such as our lawyers, accountants, information and IT managers;
    • organisations involved in a transfer or sale of all or part of our assets or business;
    • organisations involved in managing payments, including payment merchants and other financial institutions such as banks;
    • regulatory bodies, government agencies, law enforcement bodies and courts;
    • anyone else to whom the individual authorises us to disclose it or is required by law.

 

Overseas disclosure

We will not disclose personal information to overseas recipients without your consent unless:

    • We have taken reasonable steps to ensure that the recipient does not breach the Act, or the APPs; or
    • The recipient is subject to a similar information privacy regime

 

Your rights

Our Privacy Policy contains information about how:

    • you may access the personal information we hold about you;
    • you may seek the correction of your personal information; and
    • you may complain about a breach of the Privacy Act, including the APPs; and
    • Strategic will deal with a privacy complaint.