Advice Disclosure Statement
AI Financial Services
PRODUCTS WE CAN PROVIDE FINANCIAL ADVICE ABOUT
- Loans including mortgages and business and commercial loans.
- Personal, group & medical Insurance (life cover, disability, income protection and trauma)
- House, contents, and vehicle insurance
- KiwiSaver
PRODUCT PROVIDERS WE CAN RECOMMEND
COMMERCIAL & RESIDENTIAL MORTGAGES (INCL. CONSTRUCTION LOANS)
I can advise on products from the following providers:
ANZ, ASB, Sovereign Home Loans Westpac, Asap Finance Limited, Avanti Finance, Cressida, DBR, First Mortgage Trust, Heartland Bank, NZCU, Pepper Money, Resimac, SBS Bank, Select, Southern Cross, The Co-Operative Bank, Zip Business, Basecorp Finance & CFML
OUR FEES
- Drawdown/Settlement of mortgages
- Re- Fix fee on existing loans
- Trail commission based on outstanding balance.
- Issuing of risk policies
- Issuing of short-term insurances
There are two exceptions to this general position which are explained below – “For NO commission received” & “Clawback”.
A full schedule of all Product Providers and their commission rates are available on request.
COMMISSION
INITIAL COMMISSION
A percentage of the value of your investment contributions, loan balance or insurance premiums. For Insurance commission is paid up to 100% of the first-year premium plus production bonus and ongoing renewal commission and for home loans between 0.5% to 0.80%. Some lenders offer trail commission with a low initial commission.
FOR A HOME LOAN
We are registered to receive commissions from the product providers as per their schedule. I will be paid between 0.5% to 0.8% of the loan amount. Some Lenders do provide a trail commission for on-going service to our clients. The trail commission is paid monthly for our service and part of the agreement.
FOR NO COMMISSION RECEIVED FOR A HOME LOAN
If you request that we provide Services in relation to a product or service and we do not receive a commission. Any such fee would be agreed and authorised by you in writing before we complete the Services. This may arise in the rare event that you request that we provide Services in relation to either a product that is offered by a provider that we do not hold an accreditation with, or a product that is outside our usual arrangements with our Product Providers.
CLAWBACK
Clawback of commission happens when the client cancels a mortgage (refinance via another advisor or sells the property) or risk insurance, within 36 months of settlement of mortgage or issuance of a risk policy. The product provider will calculate a commission clawback amount, due to early settlement of the mortgage or insurance arranged for you.
FOR MORTGAGES ONLY, should we obtain an approval (Finance offer) from the bank, and you decide to go directly to another bank or use another advisor, we will charge (invoice you) a clawback based on the number of hours reasonably spent on your application. Please note: Before submission of your application, you will receive my “Statement of Advice” and we require your acceptance.
AI Financial Services Ltd will ask you to repay to AI Financial Services Ltd the commission that is to repay to the provider, to a maximum of $3,000 (including GST), as cost recovery for the service provided. This fee has been calculated on an average of 12 hours of advice, negotiation, and administration to complete and submit your loan/insurance application to the provider, at our hourly rate of $217.39 per hour plus GST.
CONFLICT OF INTEREST AND OTHER INCENTIVES
If there is any conflict of interest in our advice or recommendation with our product provider, we will let you know during our first meeting. We do not have any conflict of interest with our product providers and our advice.
We are here for our clients and to advise you as best we can. Your interests are our priority although we do have business relationships with product providers also. From time to time our product providers assist us with funding so we can bring our advisers together for conferences and professional development training.
- We follow an advice process that ensures our recommendations are made appropriately, based on clients’ goals and circumstances.
- All our advisers undergo annual training about how to manage conflicts of interest.
- We maintain registers of conflicts of interests and the gifts and incentives we receive. These registers are monitored regularly, and additional training is provided as required.
- We undertake an annual independent Compliance Assurance Review.
- Meet the standards of competence, knowledge and skill set out in the Code of Conduct
- Give priority to the clients’ interest and
- Exercise care, diligence, and skill and
- Meet the standards of ethical behaviour, conduct, and client care set out in the Code of Conduct.
More information is available by contacting us, or by visiting the Financial Markets Authority website https://www.fma.govt.nz
COMPLAINTS HANDLING AND DISPUTE RESOLUTION
INTERNAL COMPLAINTS
If you have a problem, concern, or complaint about any part of our advice or service, please tell us so that we can try to fix the problem.
Our internal complaints manager is Richard who can be reached via email at info@aifinancial.co.nz. Richard will reply to you within 24 hours.
Our internal complaints handling process is as follows:
- We record all complaints regarding our advice.
- We will research the nature of complaint.
- We enter the nature of complaint and time and date in our record ledger.
- We use the internal process to resolve the complains.
- We will endeavour to resolve the issue in an amicable manner.
EXTERNAL COMPLAINTS
If we cannot agree on how to fix the issue, or if you decide not to use the internal complaints scheme, you can contact our external disputes resolution scheme Financial Services Complaints Ltd. This service will cost you nothing and will help us resolve any disagreements.
You can contact Financial Services Complaints Ltd – FSCL:
Financial Ombudsman Service
Address: FSCL PO Box 5967, Lambton Quay, Wellington 6145 Wellington
Phone number:0800-347-257
Email address: complaints@fscl.org.nz
Website: www.fscl.org.nz
OUR CONTACT DETAILS
AI Financial Services Limited (FSP709091, trading as AI Financial Services) is the Financial Advice Provider. Our Financial Advisor is Richard Piechazek (FSP111124).
You can contact us at:
Phone: (09) 479 8449
Mobile: 027 222 2116
Email: info@aifinancial.co.nz
Web: www.aifinancialservice.co.nz
Address: 753 Beach Road, Browns Bay, Auckland, 0630