This FSG provides key information about Ausure, the Authorised Representative/s and the services which can be offered. Ausure is responsible for the content and distribution of this FSG which is designed to assist you to decide whether or not to use any of the services and also contains information about:
– Our products and services;
– Our remuneration;
– Any potential conflict of interest we may have;
– Our internal and external dispute resolution procedures and how you can access them;
– Arrangements we have in place to compensate clients for losses;
– Other important information.
Please take the time to read it and keep it safely with your policy documents.
Ausure holds an Australian Financial Services Licence (“AFSL”) and is responsible for the financial services that its Authorised Representatives provide to you, or through you to your family members. The AFSL authorises Ausure to carry on a financial services business by providing financial product advice and dealing in financial products by applying for, acquiring, varying or disposing of those products on behalf of another person.
The services are provided with equal expertise to both Retail Clients and Wholesale Clients. The financial product classes, for which Ausure is authorised, are commonly referred to as General Insurance Broking, Financial Planning, and Life Insurance.
Licensee: Ausure Pty Ltd t/as Ausure Insurance Bro-kers & Ausure Financial Services (“Ausure”)
FSL No: 238433
ABN: 94 096 971 854
Address: L25, 324 Queen St Brisbane Qld 4000
Postal: PO Box 10709 Brisbane Adelaide St Qld 4000
Phone: 07 3319 5100
Fax: 07 3319 5160
Further details regarding Ausure’s AFSL and the authority granted to its Authorised Representatives can be found on the ASIC website at www.asic.gov.au.
About Your Representative
Your Authorised Representative/s is authorised under Ausure’s AFSL to provide specific authorised services on behalf of Ausure. Ausure acts on your behalf; however, if that changes at any time, we will provide you details in writing.
Ausure Authorised Representatives have been recognised by Ausure as experienced professionals in their chosen business fields and who are committed, together with Ausure, to provide quality service and advice on financial products requested by our varied clientele.
Each individual Authorised Representatives will have authority to provide general and personal advice on:
– General Insurance
– General and Personal Advice
Your privacy and how you can communicate with us
You can communicate with us, e.g. to provide your information and requests, by telephone, email, facsimile or in person, or by the means which we agree with you during any particular transaction. Simply contact the Authorised Representative who is advising you and arrange your preferred method of contact.
Service, Advice and Documentation
If required to (and wherever possible) we will give you a Product Disclosure Statement (“PDS”) which contains in-formation on the product and its features to assist you make an informed decision about purchasing that product.If we give our Retail Clients personal advice which takes into account individual objectives, financial situations and needs, we will, if required, provide a Statement of Advice (“SOA”), Record of Advice or Personal Advice Letter. The information may include the advice given to you, the basis of the advice and other information on our remuneration and any relevant associations or interests. In these cases, we may require information about your personal objectives, details about your current financial situation, and any other relevant information.
Not all clients want or expect tailored or personal advice. When we provide a general advice service to you, we will give you a warning which tells you the advice is of a general nature and that you should consider it along with the PDS to decide whether or not the product suits you. Similarly, you should carefully read any warnings or additional important information in the advice or in the documentation we provide you.
When you ask us to recommend a product, we will usually only consider those offered by the insurers or financial product providers that we deal with regularly. In giving you advice about the costs and terms of recommended products, we have not compared those products to others available, other than from those insurers we deal with regularly. If we do not ask you certain questions or receive no or limited answers from you, the resultant advice will be limited and therefore it may not be adequate for your needs. Any advice we provide you will only be current at the time we give it.
Arranging your insurances
While cost is always important, the quality of insurance cover offered by a policy is equally important. Insurance that does not match your needs is worthless, however cheap the premium.
It is always our aim to provide clients with good prices and quality cover from reputable insurers with a good claims paying record. We will endeavour to arrange insurance that meets your insurable risks and needs. However, as it is you who best understands your risks and needs. We also rely on you for the accuracy and completeness of information you provide to us.
You should always consider the appropriateness of any advice we provide or any insurance we recommend to you before acting on our recommendations.
Finally, please note that we cannot guarantee the availability of insurance for your particular risks or the solvency of insurers.
Who do we act for?
As your insurance broker, we normally act for you in providing our insurance services. We will tell you before or at the time if we are not acting for you in providing any part of our service. For example, an insurer may give us ‘binding authority’ to arrange or enter into insurance products on their behalf. We could also agree to handle or settle claims on an insurer’s behalf. We will inform you if we act for an insurer in this way in relation to your insurances and this will be noted on your invoice.
How you pay for the services you receive
Payment for the services provided are payable directly to Ausure as stated in the invoice. The insurer will charge a premium that includes any relevant taxes, charges, levies and fees. Ausure often receive commission from the insurers and you may also be charged a fee. See below for more information. You can choose to pay by any of the methods stated in the invoice and you must pay within the time stated in the invoice.
If you do not pay the premium on time we are obliged to advise the insurer who has the right to cancel your policy. The insurer may also have the right under certain circumstances to charge you for the time you were insured if during the policy period you decide you do not want it. Failure to pay as required may lead to your insurance becoming ineffective.
When you pay your premium, it will be banked into Ausure’s trust account. Ausure will retain the commission from the premium and remit the balance to the insurer in accordance with arrangements with the insurer. Ausure will earn interest on the premium while it is in their account or may invest the premium and earn a return; such interest and/or returns are retained by Ausure.
Remuneration – how we are paid for the services we provide
There are several ways Ausure can be paid. In general, the principal remuneration for arranging financial services products is either by way of commission paid by the in-surer and/or a fee paid by you:
For General Insurance products we may be remunerated in the following ways;
Commission paid to us by the insurer as a percentage of the insurance premium paid by you before stamp duty, fire services levy, GST and any other government charges, taxes, fees or levies. It will vary depending on the insurer and the policy; however, the range is from 0 to 40%; or
A fee charged to you by us; or
A combination of commission paid to us by the insurer and a fee paid by you.
Any fees that are charged to you will depend upon the amount and type of work we perform. The fee is separately disclosed when we provide a quotation to you.
For Financial Services and Life Insurance products we may be remunerated via Initial & Ongoing Commissions and Fees or a “fee for Service” arrangement. (See below for further information on fee for service)
The initial commission for financial services products can range between 0% and 5%, while on-going commissions may range between 0% and 3%. For example, for an investment of $10,000 in a managed investment paying 4% initial commission and 1% ongoing commission, the up-front commission would be $400 and the ongoing commission $100 per year.
The upfront commission for Life Insurance products can range between 0% and 130% depending on the product provider, while ongoing commission may range between 0 and 40%. For example, on an insurance premium of $1,000 paying 110% initial commission and 11% on-going commission, the upfront commission would be $1,100 and the on-going commission $110 per year.
Fee for Service
We may charge a fee for our service in conjunction with, or instead of, commission. The fee charged will depend on the advice you have sought and whether we receive a commission. We may rebate to you part or all of the com-mission we would otherwise receive. You may also be charged a Statement of Advice (SoA) preparation and im-plementation fee. This fee can range between $0 and $10,000 (inclusive of GST) depending on the complexity and the time spent. Any fee for service arrangement will be communicated and agreed by you before we com-mence the advice process.
Example: Client is nearing retirement and is seeking ad-vice on retirement options, superannuation, pensions and social security. The initial meeting may be free of charge or an hourly rate charged. If the client agrees to receive personal advice, a Statement of advice preparation fee could be $2,500 plus GST and an Implementation fee could be $500 plus GST.
Further details about commissions and /or other benefits your adviser receives for recommending investments will be available to you when specific recommendations are made in the SoA or Record of Advice (RoA).
The total commission and fees received is split between Ausure and the Authorised Representative. Ausure may retain up to 50% of the total commission and fees.
If there is a refund or reduction of your premium as a re-sult of a cancellation or alteration to a policy, or as part of your policy such as a premium adjustment clause, we may retain any fee we have charged you. We may also retain commission depending on our arrangements with the in-surer, or charge you a cancellation fee equal to the reduction in commission.
Referrals: If a third party has referred you to us, we may pay the referrer a percentage of our total commission and fees for doing so. That payment will be out of our commission and fees and not in addition to those amounts.
Employees at Ausure and employees in Authorised Representative offices are generally paid a market salary, but may receive a bonus payment for meeting sales targets or making referrals.
Commission and fees are earned for the policy period and we are entitled to retain all commission and fees for poli-cies placed by us on your behalf. When you do business with us, you agree to us retaining such amounts. If your policy is cancelled for any reason during the period, we may retain any commission paid by the insurer and/or any fee we have charged you.
Be aware that some insurers do not refund premiums or, if the policy is cancelled effectively prior to the expiry date, they may charge a cancellation fee or apply short term rates. Therefore, you should consult us about associated costs before you make your decision.
If we give you personal advice, we will inform you of any fees, commission or other payments we, our associates or anyone referring you to us (or us to any insurer) will receive in relation to the policies that are subject to the advice.
Premium Funding: If we refer you to a premium funding company and facilitate a funding agreement, we may receive commission up to 4% of the amount of premium funded. We may also charge you a fee for that service. When we arrange premium funding, you can ask us what commission is paid to Ausure compared to the other arrangements that were available to you. The amount of commission and any fee that we charge will be set out in the premium funding contract.
In addition to the above, Ausure may receive other types of income from premium funders, insurers or underwriting agencies ranging from 0.5% -1 .5% including:
profit commissions or profit shares paid by insurers on certain classes of business;
Over-riding commissions or administrative service fees or expense reimbursements for some services we provide to insurers as part of distributing their products.
When requested or legally obliged, we will endeavour to calculate and disclose the amount or reasonable estimate of any additional income which we may receive. This also applies to any non-monetary benefit we may receive such as gifts, entertainment or other incidentals where it could influence the service we provide you. Please see the next section about associations and relationships, and contact us if you have any questions about our remuneration, associations or relationships.
Enhancing our services with associations and relationships
In all business dealings, conflicts of interest can arise. We have efficient procedures to handle such situations to en-sure your protection. In this FSG and at certain other times, we will tell you about those that are capable of influencing our services so that you can make an informed decision before you proceed.
Steadfast: Ausure is a Steadfast Group Limited (“Steadfast”) Network Broker. Steadfast has exclusive arrangements with some insurers and premium funders (“Partners”) under which Steadfast will receive between 0.5-1.5% commission for each product arranged by Ausure and its Authorised Representatives with those Partners. Ausure may receive a proportion of that com-mission from Steadfast at the end of each financial year or other agreed period.
As a Steadfast Network Broker, Ausure has access to member services including model operating and compliance tools, procedures, manuals and training, legal, technical, banking and recruitment advice and assistance, group insurance arrangements, product comparison and placement support, claims support and group purchasing arrangements. These member services are either funded by Steadfast, subsidised by Steadfast or available exclusively to Steadfast Network Brokers for a fee. You can obtain a copy of Steadfast’s FSG at www.steadfast.com.au. Please also see the section above for information about Premium Funding which can also be arranged as part of the steadfast membership.
Hollard Insurance – Ausure Pty Ltd has entered into an agreement with The Hollard Insurance Company Pty Ltd (Hollard) to provide products and services to clients of Ausure. Ausure may from time to time expect to receive a profit share from the agreement with Hollard based on a formula after deduction of claims and expenses. The percentage of profit payable is variable and is not guaranteed. Ausure is also authorised to accept premiums, issue products and pay claims for Hollard on certain classes of business.
Ensuring your satisfaction – what to do if you have a complaint?
We are committed to providing quality services to our clients. This commitment extends to giving you easy access to people and processes that can resolve a service issue or complaint.
If you have a complaint about the service provided to you, please address your enquiry or complaint to the Authorised Representative providing the service. If the Authorised Representative is not able to resolve the issue immediately or within five (5) days, it will be referred to the Ausure Complaints Manager, who will review the complaint and advise you in writing of the expected time for resolution and other important details in accordance with Ausure’s Complaints Policy. You can also refer your enquiry or complaint to the Ausure Complaints Manager at any time using the Ausure contact details noted in this FSG.More complex complaints may take 45 days to resolve. If you are not satisfied with our response or proposed resolution, you may refer your complaint to the Financial Ombudsman Service (“FOS”). Ausure is a member of FOS. FOS provides a conciliation and arbitration service to assist consumers in the resolution of complaints. FOS services are free to complainants and deal with all complaints in accordance with the FOS Rules. You can obtain a copy of these from FOS or from the website at www.fos.org.au.
You can alternatively contact the FOS at:
Street Address: Financial Ombudsman Service, Level 12, 717 Bourke Street, Docklands 3008
Mailing Address: Financial Ombudsman Service, GPO Box 3, Melbourne, VIC 3001
Ph: 1300 78 08 08
Fax: 03 9613 6399
Ausure is a member of National Insurance Brokers Association of Australia (“NIBA”) and strives to comply at all times with the Insurance Brokers Code of Practice. You can download a copy of the Code from www.niba.com.au or from the Ausure website.
If you have any further questions about the financial services Ausure provides, please contact us.
Please retain this document for your reference and any future dealings with Ausure.
Professional Indemnity Insurance and compensation
Ausure has a Professional Indemnity Insurance policy in place. The policy adequately covers Ausure and certain authorised representatives for claims made against them by clients as a result of their conduct in the provision of financial services. Other authorised representatives maintain separate Professional Indemnity Insurance. Ausure has taken careful and reasonable steps to ensure that all policies are current and satisfy the requirements under section 912B of the Corporations Act 2001 (Cth) for compensation arrangements. Furthermore, subject to policy terms and conditions, the policies cover claims relating to the conduct of former employees and representatives who no longer work or act for Ausure.
Other important information to assist you
Cooling Off Period: Retail Clients may be entitled to a minimum 14 day cooling-off period from the date cover commences during which you may return the insurance policy and receive a refund of the insurance premium paid (less amounts lawfully deducted). This is subject to the requirements of the Corporations Act 2001 and the terms and conditions of your policy. This does not affect any other cancellation rights you may have under your policy.
Your Duty of Disclosure: The Insurance Contracts Act 1984 requires insurance companies to provide certain in-formation to those intending to insure with them. In general terms, the information to be provided is as follows:
“Before you enter into a contract of general insurance with an Insurer, you have a duty, under the Insurance Con-tracts Act 1984, to disclose to the Insurer every matter that you know, or could reasonably be expected to know, that is relevant to the Insurer’s decision whether to accept the risk of the insurance, and if so on what terms. You have the same duty to disclose those matters to the Insurer be-fore you renew, extend, vary or reinstate a contract of general insurance. Your duty, however, does not require dis-closure of matter:
that diminishes the risk to be undertaken by the Insurer,
that is of common knowledge,
that your Insurer knows or, in the ordinary course of his business, ought to know,
as to which compliance with your duty is waived by the Insurer.”
Non-disclosure: If you fail to comply with your duty of disclosure, the Insurer may be entitled to reduce their liability under the contract in respect of a claim or may cancel the contract. If your non-disclosure is fraudulent, the Insurer may also have the option of avoiding the contract from its beginning.”
Some examples (by no means exhaustive) of matters that could be considered of importance in relation to your duty of disclosure are as follows: matters relating to physical risk including alteration of risk; new or changed business activities or locations; past losses or claims; refusal, cancellation or increased premiums by insurers; fines or penalties; criminal convictions; insolvency or bankruptcy matters. Your disclosure requirement may not be limited to specific questions in any application form or questionnaire, or matters applying to you alone. It may also include other matters such as past business or private insurance and may apply to all persons and entities to be insured under the policy.
Company: River Ega Pty Ltd T/as Ausure North Sydney
Ruben Alvaro AR 298 048
Telephone (02) 9929 3637
Ausure Pty Ltd (AFSL 238433)
Address: P O Box 21 Cardiff NSW 2285
Phone: 02 4948 1155
Fax: 02 4947 4211
Financial Services Guide (FSG) Version 10.3 Date of Preparation – 7 December 2010