Financial
Services Guide
The distribution of this Supplementary Financial Services Guide by Financial Wisdom's Authorised
Representatives has been authorised by Financial Wisdom.
The provider of this Supplementary Financial Services Guide is the
Australian Financial Services Licensee:
Financial Wisdom Limited ABN 70 006 646 108 ("Financial Wisdom")
Issue date: 14/09/2009
Head Office Address: Level 16, 52 Martin Place, Sydney NSW 2000
Australian Financial Services Licence Number: 231138
IMPORTANT INFORMATION
Supplementary Financial Services Guide
This supplementary Financial Services Guide ("SFSG") is an important document. It must
be read in conjunction with the Financial Services Guide version 1.7 which is dated 9
February 2009.
It provides you with information about Financial Wisdom (“I”, “us”, “we” andncial outlined in section 2 of the Financial Wisdom Financial Services Guide.
In the list following the statement “Financial Wisdom has associations with the following
entities:” add the two items shown below:
Bank of Western Australia Ltd
BWA Managed Investments Ltd
Adviser: Bradley Smith
Certified Financial Planner
Date of Preparation: 28/1/2009
Financial
Services Guide
Head Office Address:
Financial Wisdom Limited (ABN 70 006 646 108)
Australian Financial Services Licence No. 231138
Level 16, 52 Martin Place,
Sydney, NSW 2000
Telephone: 02 9303 6516
Fax: 02 9303 6128
Version 1.7 - 9/2/2009
We are required by law to give you a
Services Guide (FSG),
protect you and promote honesty and fairness in
financial products and services.
Financialwhich helps educate and
Contents
1. Why have you been given a financial services guide? 1
This section explains why you have been given this guide and tells you about the other documents
that will be given to you if you decide to receive advice from Financial Wisdom.
2. Who will be providing you with financial services? 1
This section explains the roles and relationships between your Adviser, Financial Wisdom and the
Commonwealth Bank Group.
3. Who is your Adviser and how can they be contacted? 2
The background and contact details of the person who will be providing advice.
4. What services and products can your Adviser provide? 2
This section covers:
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The range of advice that your Adviser can offer you.
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How advice must be provided, and the limits of the advice that can be given to you.
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advice.
What needs to be done if you want to transact through your Adviser but do not want to receive
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Security and privacy of your personal information.
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How you can expect your portfolio to be reviewed.
5. What fees and commissions are paid to Financial Wisdom? 4
This section shows you the costs involved in obtaining advice. It explains where costs are paid from
and who they are paid to.
6. What does Financial Wisdom pay your Adviser? 5
Explains how your Adviser is paid.
7. What should you do if you are not happy with the service? 6
The process you should follow if you are dissatisfied.
8. Other services available from Financial Wisdom 6
A summary of all services available from Financial Wisdom. Some services may be beyond what your
Adviser can offer.
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1. Why have you been given a
financial services guide?
This guide will help you decide whether to use our services.
Before you use our services we will explain:
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Who your Adviser is and how your Adviser can be contacted.
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Adviser to provide.
What services and products Financial Wisdom authorises your
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parties are paid.
How Financial Wisdom, your Adviser, and any other relevant
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the services provided.
Who to contact if you have a complaint about your Adviser or
Other important documents that you will be given if
you receive advice from us
Statement of Advice
You will receive a
you receive that takes your personal objectives, financial situation
or needs into account. This SOA is an important document as it
sets out what your Adviser is recommending and why this advice
is suitable and appropriate for you. There will be enough detail for
you to make a decision about whether to act on the advice.
The SOA will contain:
Statement of Advice (SOA) for any advice
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the advice;
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the basis on which it is given;
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information about replacement of existing financial products;
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detailed information about fees and commissions; and
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Adviser have with financial product providers or other parties.
details of associations that Financial Wisdom and/or your
Product Disclosure Statement
If a particular financial product is recommended to you (other than
listed shares) you will be provided with a
Statement (PDS)
your Adviser to transact on your behalf and place a financial
product without providing personal advice. The PDS contains
information about the particular financial product to help you
make a decision about that product.
In this guide:
Product Disclosure. A PDS will also be provided if you instruct
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'you' means you, our client or our prospective client.
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outlined in section 3.
'I', 'us', 'we' and 'our' means your Adviser whose details are
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006 646 108, Australian Financial Services Licence No.
231138.
Financial Wisdom means Financial Wisdom Limited ABN 70
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to products issued by the Commonwealth Bank of Australia or
its subsidiaries.
Any references to "Commonwealth Bank Group product" relate
2. Who will be providing you
with financial services?
By law anyone who advises you, or promotes financial products
to you, has to have an
licence
is the holder of an AFS Licence (AFS Licence No. 231138) and is
Australian Financial Services (AFS)or be authorised by an AFS Licensee. Financial Wisdom
responsible for the financial product advice given to you
Your Adviser is an
Wisdom and provides services on Financial Wisdom's behalf.
Financial Wisdom is also responsible for the content and
distribution of this FSG.
Financial Wisdom is a Principal Member of the Financial Planning
Association (FPA), the professional association for qualified
financial planners in Australia, and is committed to the FPA's
Code of Ethics and Rules of Professional Conduct.
.authorised representative of Financial
Financial Wisdom's relationship with the
Commonwealth Bank Group
Financial Wisdom is a wholly owned, but non-guaranteed
subsidiary of the Commonwealth Bank of Australia, one of
Australia's largest financial services organisations.
Financial Wisdom has associations with the following entities:
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Commonwealth Bank of Australia
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trading as CommInsure
The Colonial Mutual Life Assurance Society Limited (CMLA)
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Colonial First State Investments Limited
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Commonwealth Securities Limited (CommSec)
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452 Capital Pty Ltd
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Avanteos Investments Limited
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Acadian Asset Management (Australia) Limited
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Realindex Investments Pty Limited
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3. Who is your Adviser and how
can they be contacted?
The details of your
Name:
Financial Wisdom authorised representative:Bradley Smith
Certified Financial Planner
ASIC Adviser
identification number:
235639
Address: 108 Elphinstone Street
City: North Rockhampton
State and Postcode: QLD 4701
Telephone: (07) 4926 6600
Facsimile: (07) 4926 6611
Email: bsfs1@bigpond.net.au
Website: www.bradsmith.financialwisdom.com.au
I have had considerable financial experience over the last 18
years. Starting out in the insurance industry, I realised at least 10
years ago that I should improve my educational qualifications and
in 2003 obtained a Diploma of Financial Planning.
I have built up a considerable client base since I began as a
Financial Planner, and have been an authorised representative of
Financial Wisdom for the last ten years.
I am a member of the Financial Planning Association and have the
distinction of being a Certified Financial Planner.
4. What services and products
can your Adviser provide?
Will you receive personal financial advice?
Yes, your Adviser is
with
objectives and financial situation.
qualified and authorised to provide youpersonal financial advice that is tailored to your needs,
What information should you provide to receive
personal financial advice?
In order to provide you with appropriate advice, your Adviser will
ask you to provide information about:
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your personal circumstances;
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details of your current financial situation; and
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You have the right not to disclose all information but your Adviser
may not be able to provide advice that is appropriate to your
needs, objectives and financial situation without it.
You should read the warnings contained in any documentation
carefully before making any decision relating to a financial
product.
other relevant matters.
What is the extent of the advice that your Adviser can
offer you?
Your Adviser is authorised to provide
personal financial advice
on the following:
Personal Financial Advice:
Investment and Retirement Planning
Personal and Employer Superannuation and Rollover
Personal Life Insurance
Self-Managed Super Fund - investment and risk management
strategies
Information on Centrelink benefits
Information on Veterans' Affairs benefits
Portfolio review services
Margin Lending
Product Types:
Securities - (eg shares and debentures)
Managed Funds - (eg unit trusts)
Deposit Products - (eg term deposits, savings accounts)
Government Debentures - (eg stocks and bonds)
Life Insurance - (eg income protection, trauma and life cover)
Superannuation - (eg rollovers, account based pensions and
annuities)
Retirement Savings Accounts
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How advice must be provided
Personal financial advice will be provided to you in writing (in an
SOA) only after your Adviser has reviewed the information you
provide to us and has carefully considered your financial goals.
What other information will I need from you?
If you decide to implement my advice, the law requires me to
obtain additional information from you and to confirm the
accuracy of that information. In particular, I will need to verify your
full name, date of birth and residential address. In order to do so I
will need to sight various identification documents such as a
current Australian Driver's Licence or Australian Passport, and
keep records of the identified documents. To minimise your
inconvenience I will generally try to verify this information at the
same time as I collect information about your financial needs and
objectives. However, if you would prefer the verification not to
occur until you decide to implement the advice please let me
know. Please appreciate that the verified information will be made
available to your product provider(s) and that they are unable to
process your application without this verification.
The scope of products used to meet your needs
The advice provided can include recommendation of both
Commonwealth Bank Group products and products offered by
other companies. Any product recommended has been drawn
from a list of products that has been examined and approved by
our Product Review Committee. By considering both
Commonwealth Bank Group products and investment and
insurance products from other Fund Managers and Life
Companies, we can prepare an SOA that more effectively meets
your needs.
Limits on the advice that can be provided
When making recommendations to you, tax, social security and
estate planning issues can be discussed but we are not
authorised to give advice relating to these issues. If you want
detailed advice you should consult a specialist in that area.
It is important to note that
your Adviser cannot provide advice
on the following:
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General Insurance
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Direct Share Investments
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Derivatives
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Foreign Exchange
Other services available from Financial Wisdom
Financial Wisdom is able to offer advice on a range of financial
products that may be broader than your Adviser can offer you. A
summary of all the services available from Financial Wisdom is
provided in section 8.
Can you make a transaction without receiving
personal financial advice?
Yes, we can take your instructions to transact on your behalf and
place a financial product (that Financial Wisdom is able to offer)
without providing personal financial advice.
How do you provide instructions to your Adviser?
Generally we need you to instruct your Adviser in person, as your
signature will be required for verification. However, for some
products and services it is possible for special arrangements to
be put in place where instructions can be given to your Adviser by
fax, phone or e-mail.
What personal information is maintained in your file
and is it kept secure?
Your Adviser must keep a record of your personal profile. This
has to include details of your personal needs, objectives and
financial situation and a record of any advice given to you.
Financial Wisdom is committed to ensuring the privacy and
security of your personal information. As part of our continuing
commitment to client service and maintenance of client
confidentiality we have adopted the principles set out in the
Privacy Act. For further details please refer to the Commonwealth
Bank Group's Privacy Policy at
wish to examine your file please ask your Adviser.
www.commbank.com.au. If you
Will your portfolio be reviewed?
We recommend that you review your financial situation every 12
months or whenever your personal or financial circumstances
change. It is your responsibility to initiate the review process. If
you would like a review, or you have any concerns, please
contact your Adviser.
You will, of course, receive regular information from the product
providers about the value and performance of your investments,
as well as details of any insurance policy cover.
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5. What fees and commissions are paid
to Financial Wisdom?
What are the costs involved in obtaining advice and
to whom are they paid?
A range of fees and commissions may be paid for the advice you
receive and the financial products used. These fees and
commissions
and are not paid directly to your Adviser
paid is set out in section 6, "What does Financial Wisdom pay
your Adviser?" and will be fully detailed in your SOA.
The types of payments are outlined below. Before providing any
financial advice your Adviser will discuss these options with you
and help you select the payment method that suits you best.
In all cases, details of payment required for the services provided
will be given to you at the time of any personal financial advice or
when executing a transaction on your behalf. All fees detailed
below are inclusive of GST (where applicable).
are paid to Financial Wisdom as the Licensee. How your Adviser is
Fee for Service Provided
Under this method of payment, there are set fees for each service
provided to you.
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You will not be charged for your initial consultation with me.
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of up to $1,100.00.(GST inclusive)
There is a set fee for the preparation of a Statement of Advice
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review report of up to $550.00.(GST inclusive).
You will be provided with a tax invoice for the service provided
and you will need to provide a cheque or money order payable to
Financial Wisdom in accordance with the invoice.
There is a current fee for the preparation of your Portfolio
Hourly Rate Direct Charges
Bradley Smith Financial Services may charge an hourly rate for
financial services. The current rate is $250.00 per hour or part
thereof. Part or all of the initial commissions received from a
product provider may be rebated to you if this charging option is
used.
Before going ahead you will be given an estimate of the time that
your Adviser will need. Under this fee structure, you will be given
a tax invoice for the service provided. Payment is made to
Financial Wisdom in accordance with the invoice.
Commissions & Adviser Service Fee
i) Commissions
Under this method of payment, Financial Wisdom receives a
commission directly from the product provider. This commission
is based on a percentage of the funds you invest or the premiums
you pay. Commissions are not paid directly by you, but are
deducted from the investment or premium by the product
provider.
These commissions fall into two general categories:
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start of an investment or insurance policy. The initial
commission on an investment product, including
superannuation, can be up to 5.5% (GST inclusive) of the
investment amount. The initial commission on an insurance
product can be up to 125% (GST inclusive) of the first year's
premium.
Initial Commission - This is a one off commission paid at the
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investment or insurance policy is maintained, as part of the
product provider's ongoing charges. The ongoing commission
on investment products, including superannuation, can be up
to 1.1%pa (GST inclusive) of the investment amount. The
ongoing commission on insurance products can be up to
38.5%pa (GST inclusive) of the renewal premium.
Ongoing Commission - This is paid every year in which the
ii) Adviser Service Fee
The Adviser Service Fee is a fee agreed between you and your
Adviser for their ongoing advice and service. It is paid to Financial
Wisdom, and Financial Wisdom may pay part or all of the fee to
your Adviser.
Some products offer the option to deduct the Adviser Service Fee
from your funds on a periodic basis.
If this fee is to apply to you, it will be fully detailed in your SOA.
Margin Lending
If you take up a margin loan upon our recommendation, Financial
Wisdom will receive a commission based on the loan amount,
paid on an annual basis. Financial Wisdom may pass this on to
your Adviser. It will be fully detailed in your SOA.
Other benefits that may be received
Financial Wisdom assesses and rewards its Advisers based on
the quality of advice provided to clients, the continuing
professional development of Advisers, and the management, size
and growth of an Adviser's practice. Together these measures
form a Practice Quality score ("PQ") which is compiled by
Financial Wisdom.
Financial Wisdom Advisers may be entitled to receive the benefits
outlined below.
cost to you.
These other benefits are not an additional
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Short Term Incentive:
Financial Wisdom may receive payments from certain product
providers on the Financial Wisdom Approved Product List. These
payments are based on the level of investments by Financial
Wisdom clients in those products. The payments form part of a
pool maintained by Financial Wisdom. From this pool, the
Financial Wisdom Adviser may qualify for a Short Term Incentive
(STI) payment provided he/she obtains a minimum PQ and
achieves minimum levels of advice quality, business revenue, and
for productivity and business retention.
receives under the STI is not an additional cost to you.
Any benefit the Adviser
In addition:
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sometimes with their partners, in domestic and international
educational conferences and seminars arranged by Financial
Wisdom. It is not possible to estimate a dollar value of these
benefits at this time. Their attendance may be paid for in full or
subsidised by Financial Wisdom, or it may be at their own cost.
Financial Wisdom Advisers may be invited to participate,
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benefits including business lunches, tickets to sporting and
cultural events, corporate promotional merchandise, and other
minor benefits from Financial Wisdom or product providers
whose products Financial Wisdom recommends. Given that
such benefits are discretionary and relate to future events, it is
not possible to provide an estimated dollar value. The details of
any benefit received will be recorded in our register of
alternative forms of remuneration, which is available for
inspection by contacting Financial Wisdom.
Financial Wisdom Advisers may receive minor unquantifiable
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Valuation Package offered by Financial Wisdom, which is
subject to certain conditions. The amount Financial Wisdom
would pay for the Adviser's business depends on a range of
factors including compliance history and financial performance.
Financial Wisdom Advisers have access to a Business
Partners in Wisdom Program
Financial Wisdom may receive support from product providers to
assist in conducting conferences, professional development
programs, study tours and various other functions attended by
Advisers. Financial Wisdom currently offers platinum, gold and
silver packages where the product provider can contribute
amounts of $75,000, $50,000 and $20,000 respectively towards
partnering Financial Wisdom in providing Adviser training and
conferences. A list of current Partners in Wisdom is available on
the Financial Wisdom website.
Are fees paid for referrals?
If you have been referred to us by someone else, or if we refer
you to someone else, Financial Wisdom or the Adviser may pay
them a fee or commission, or may receive a referral fee. The SOA
will disclose these referral payments and the amounts paid.
6. What does Financial Wisdom
pay your Adviser?
Once Financial Wisdom receives payment for a service, it will pay
your Adviser a percentage of the commission, fee and bonus
amount received by Financial Wisdom and retain the balance.
The exact amounts payable to Financial Wisdom and your
Adviser will be disclosed in your SOA. If the amount is not
calculable at the time the SOA is given, the way the amount
is calculated will be disclosed in the SOA.
Financial Wisdom and your Adviser maintain a public register of
alternative forms of remuneration of $300 or equivalent value
received from product providers or fund managers whose
products or platforms Financial Wisdom Advisers recommend. It
also maintains a Conflicts of Interest register. Copies of these
registers are available for inspection by contacting:
Financial Wisdom Limited
Level 16, 52 Martin Place
Sydney NSW 2000
Phone: 1800 024 864
Email: customerrelations@cba.com.au
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7. What should you do if you are
not happy with the service?
If you are not happy with the services provided or your Adviser,
please:
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Contact your Adviser and discuss your complaint.
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please contact by telephone or in writing:
Customer Relations
Financial Wisdom Limited
Reply Paid 41
GPO Box 41
Sydney NSW 2001
Phone: 1800 805 605
Fax: 1800 028 542
Email: customerrelations@cba.com.au
We will aim to resolve your complaint quickly, fairly and within
prescribed time frames.
If you are still not satisfied you have the right to refer the matter to
Financial Ombudsman Service Limited (FOS), which Financial
Wisdom is a member of. They can be contacted on 1300 780
808.
Financial Wisdom Limited's professional indemnity insurance
arrangements satisfy the compensation arrangements required
under section 912B of the Corporations Act and includes cover
for claims against former representatives, whilst they acted for
Financial Wisdom Limited.
If your complaint is not satisfactorily resolved within 3 days,
8. Other services available
from Financial Wisdom
The advice, services and products your Adviser can offer are
described in section 4 of this guide. Some of the services
Financial Wisdom can provide may be beyond those which your
Adviser can provide. Below is a complete listing of all the types of
advice and financial products Financial Wisdom offers:
Advice Financial Wisdom can offer:
Investment and Retirement Planning
Personal and Employer Superannuation and Rollover
Personal Life Insurance
Self-Managed Super Fund - investment and risk management
strategies
Information on Centrelink and Veterans' Affairs benefits
Portfolio review services
Margin Lending
Mortgages
Product Types:
Securities - (eg shares and debentures)
Managed Funds - (eg unit trusts)
Deposit Products - (eg term deposits, savings accounts)
Government Debentures - (eg stocks and bonds)
Life Insurance - (eg income protection, trauma and life cover)
Superannuation - (eg rollovers, account based pensions and
annuities)
Retirement Savings Accounts
Reverse Mortgages
Separately Managed Accounts
Agricultural Schemes
If you have any further questions about obtaining personal
financial advice, or the financial products Financial Wisdom is able
to offer you, please contact your Adviser. Your Adviser's details
are listed in section 3.
Please retain this FSG for your reference and any future
dealings with Financial Wisdom.
“our”) to help you to decide whether to use the financial services we offer.
This SFSG provides additional information about “Who will be providing you with fina
services?”
Supplementary