Distribution of this FSG by your adviser, who is a Lifespan Authorised Representative, is authorised by the licensee, Lifespan Financial Planning Pty Ltd (Lifespan).

This Financial Services Guide (“FSG”) dated 12 March 2014 outlines your rights as a client and our obligations and responsibilities as the licensee and your adviser.

You have the right to ask us about our charges, the type of advice we will provide to you, and what you can do if you have a complaint about our services. This FSG is intended to inform you of certain basic matters relating to our relationship, prior to us providing you with a financial
service.

Who provides the financial services offered in the guide?

The financial services are provided by Lifespan and your adviser. Lifespan’s Australian Financial Service Licence and contact details are stated on page 4.

The key matters covered by the FSG include the following:

  • who Lifespan and your adviser are;
  • how we can be contacted;
  • how Lifespan and your adviser are paid;
  • what services we are authorised to provide to you;
  • details of any potential conflicts of interest ;
  • details of our dispute resolution procedures and how you can access them

This FSG comprises and must be read in conjunction with:

Statements of Advice and Product Disclosure Statements

You should also be aware that you must receive a Statement of Advice (SOA) and Product Disclosure Statements when personal advice involving a financial product is provided to you, i.e. advice that takes into consideration your personal objectives, financial situation and needs. The Statement of Advice will contain the advice, the basis on which it is given which may have influenced the advice. If your adviser provides further advice to you, but not in writing, and that further advice is related to the advice provided in a previous Statement of Advice, that further advice will be recorded in a Record of Advice (ROA). You may request an ROA from your adviser may recommend the Omniport products to you.

The transactional, administrative and custodial systems underlying Omniport are provided by Avanteos Investments Ltd, a company fully owned by the
Commonwealth Bank. Lifespan has no ownership connections with any other financial product issuers.

Omniport pays Lifespan a 0.10% pa volume based payment from its administration fees. Up to 60% of this payment may be shared with advisers contribution to Lifespan’s gross profit.

What financial services are available to me?

Financial planning basically involves determining your current situation; establishing your realistic and reasonable goals and needs including your risk profile; and exploring the costs and benefits, potential risks and returns, advantages and disadvantages of the various options reasonably available to you to reach those goals within the limits of relevant laws and available solutions. A course of action is recommended, selected and implemented. The results are periodically reviewed in the light of changes in investment markets, legislation and your own circumstances, needs and goals.

Unless their authorisation is restricted (see the Adviser Profile) Lifespan advisers can generally provide you with sound advice relating to a wide range of important areas such as wealth creation, retirement, redundancy, superannuation, risk insurance, estate planning, centrelink payments, cashflow management, budgeting and debt repayments, structuring of investment portfolios, borrowing to invest, complex company and trust structures, and so on. Lifespan’s research and technical support services enables advisers to provide value added advice on a broad spectrum of financial problems which takes into account relevant situation and goals.

Lifespan is licensed to deal in and provide financial advice on the following range of financial products: Deposit and payment products, standard margin lending, managed investment schemes including Investor Directed Portfolio Services and Managed Discretionary Accounts, securities including shares, Retirement Savings Accounts, superannuation, life insurance investment and risk products and government issued debentures, stocks and bonds.

Lifespan advisers act on your instructions following your acceptance of their advice in the Statement of Advice. They should not act independently of your specific instructions. Any special instructions you provide should be communicated to your adviser in writing. These instructions should be forwarded in an email, fax or posted letter to your adviser.

Lifespan provides tailored, general and ongoing advice

Lifespan usually provides advice tailored to your individual circumstances and we generally have the capacity of implementing the advice we give, except where this may require the use of other professionals.

All commissions are payments made by the product provider to Lifespan and are calculated as a percentage of the amount of the current investment or initial insurance premium. Commissions are of four types: (a) upfront or initial which apply only to insurance products; (b) trail or ongoing investment commissions, which only apply to investment products that were purchased before 1 July 2013 and any further contributions made to
investment products that were first purchased before 1 July 2013; (c) risk insurance products renewal commissions; (d) and volume based or additional
payments, sometimes called rebates, revenue shares, overrides or marketing allowances.

The precise amount of all these commissions and any other fees charged is provided in your Statement of Advice.

The typical range of commission and fee rates for investments and insurance products is as follows.

Upfront fees can vary between nil and 5.5% on investment products. Upfront commissions can be up to 135% of the premium paid on insurance products.
Example: $100,000 invested in a wrap service may involve an upfront fee payment of say 3% or $3,000 which would be deducted from your investment account and paid to Lifespan leaving a net investment of $97,000.

Trails usually range from 0% to 0.6% per annum. Where trails are not payable, your adviser may agree with you to charge fixed dollar or percentage based service fees which are collected by platforms and other product providers and the percentage based fees can be up to 2% pa but normally in the range of 0.5% to 1.5% pa depending on the size of the portfolio. Example: A portfolio of $300,000 may be subject to an ongoing portfolio review fee of 1% per annum paid quarterly. This would amount to $3,000 per annum. Alternatively you may have an investment of $200,000 on which a trailing commission of 0.6% is payable to Lifespan. This would amount to $1,200 per annum.

Volume based payments are described in another section below but the same calculations and examples apply as for trail commissions.

Fees can be based on either:

  • a percentage of funds invested or funds
  • hourly rates multiplied by the hours worked,
  • an agreed dollar cost for the value of the specific service being performed, or
  • a combination of these.

The three stages of financial planning are Initial Advice, Implementation and Ongoing Reviews. There is usually a separate fee for each of the three stages. Your adviser’s remuneration structure for each advice stage will be found in their Adviser Profile and the exact amount disclosed to you in the SOA.

Fund Manager Sponsorship and Other Benefits

Other forms of remuneration refer to what is commonly called ‘soft dollar benefits’ and is defined as benefits other share your adviser receives will be fully disclosed in your Statement of Advice.

Please note that the ranges of all commission percentages referred to in this document may vary up or down at any time. The actual amounts relevant to you are provided in your SOA.

What should I know about any risks of the investments or investment strategies you recommend to me?

Lifespan advisers may only recommend to you investment products that are researched, analysed and approved by Lifespan. Your adviser should explain any significant risks of investments and financial planning strategies. If the adviser does not do so, you should contact us to explain those risks to you.

What information do you maintain in my file and can I examine my file?

We maintain a record of your personal profile including details of your personal objectives, financial situation and needs. We also maintain records of any recommendations made to you. We are committed to implementing and promoting a privacy policy, which will ensure the privacy and security of your personal information. If you wish to examine your file please ask us. We will make arrangements for you to do so.

Who do I complain to if I have a problem with your services?

If you have a complaint about the service provided to you, you should take the following steps:

Contact your adviser and tell your adviser about your complaint;

If your complaint is not satisfactorily resolved within 3 business days, please contact The Compliance Manager, by telephone on (02) 9252 2000 or, in writing, at Level 1, 20 Loftus Street, Sydney NSW 2000. We will try to resolve your complaint quickly and fairly;

If you still do not receive a satisfactory outcome, you have the right to complain to the Financial Ombudsman Service at GPO Box 3, Melbourne, VIC 3001 or on the local call number -1300 780 808. Lifespan is a member of this disputes resolution service.

Alternatively, you may contact the Australian Securities & Investments Commission (ASIC) on their free call Info Line on 1300 300 630 which you may use to make a complaint and obtain information about your rights.

Compensation Arrangements

Lifespan holds Professional Indemnity Insurance that complies with the compensation arrangements under Section 912B of the Corporations Act. The Professional Indemnity Insurance policy we hold covers the financial services provided by Lifespan’s past and present representatives. This insurance is not intended to cover product failure or general investment losses. Lifespan’s adviser or Lifespan up to seven years after the further advice was provided at no additional cost. In the event we make a recommendation to acquire a particular financial product (other than securities), we must also provide you with a Product Disclosure Statement containing information about the particular product that will enable you to make an informed decision.

Who is responsible for the financial services provided to me?

Your adviser acts on behalf of Lifespan who is responsible for the advice given to you. However, your adviser may operate separate businesses which do NOT involve Lifespan in any way, such as: accounting; auditing; tax return preparation; self-managed super fund compliance and administration; property sales and referrals; and other products and activities. Therefore Lifespan is NOT responsible for advice and work associated with products and services where your adviser is not acting as an authorised representative of Lifespan. If you are uncertain you should ask either your adviser or
Lifespan Head Office who is responsible for that particular advice or transaction.

Who is Lifespan?

Lifespan is a holder of an Australian Financial Services Licence which enables it to act as a financial services provider under the Corporations Act. Lifespan was established in August 1994 and is privately owned by the family interests of the Joint Managing Director, John Ardino who has over 30 years experience in financial planning. Lifespan is a Professional Partner of the Financial Planning Association of Australia Ltd, and abides by their Code of Ethics and Rules of Professional Conduct. Lifespan provides a wide range of services to a large network of representatives across Australia to enable them to provide sound advice.

These services include: compliance; supervision; investment research and advice; ongoing professional development and training; an adviser help desk across all financial planning issues and general technical support and advice.

Does Lifespan have any relationships or associations with product issuers?

Lifespan and Omniport Ltd have the same shareholders. Omniport Ltd is an unlisted public company, which issues the Omniport Wrap Service. Omniport Ltd is also a product sponsor of the Omniport Superannuation and Pension Service, which is issued by Avanteos Investments Ltd, the Approved Trustee of
Omniport. If appropriate for your needs and objectives, (accountants and lawyers). You may choose to enter into an agreement with your adviser to provide you with both initial advice and ongoing advice. If appropriate, we may also provide general advice only, where you are ultimately responsible for ensuring that this advice is suitable to your particular needs, personal circumstances and financial situation. In this case, you should also
obtain any related product disclosure statements to assist in this purpose.

Should I ever make out cheques for investment monies to a Lifespan Representative’s account?

Lifespan does not allow representatives to receive your investment funds into their own accounts or into any Lifespan trust account. You should at all times only write out cheques for financial products to those approved financial institutions recommended by your adviser (as specified in the Product Disclosure Statement or similar document), and never to any entity or person other than those institutions.

You should also not sign any blank forms; appoint your adviser as your attorney or authorised signatory without the approval of Lifespan; or appoint any other person as your attorney or authorised signatory unless you have received legal advice.

What information should I provide to receive personalised advice?

You will need to provide us with your current personal and financial situation such as details of assets, liabilities, income and expenses and personal objectives. This can best be accomplished by completing a Lifespan Client Data Form. The amount and type of information we will require from you depends on what financial services you require.

If you choose not to supply the required information, the advice you receive may not be appropriate to your needs, objectives and financial situation. You should read the warnings contained in the Statement of Advice carefully before making any decision relating to this limited advice
and obtain any related product disclosure statements to assist you.

How will I pay for the services provided?

Your adviser’s specific method of remuneration and fees, including referral fees are detailed in the Adviser Profile. The exact details will be disclosed to you in an invoice or in the Statement of Advice.

Where the Adviser charges you a fee the cheque will need to be payable to “Lifespan Financial Planning Pty Ltd”. If the adviser’s remuneration includes commission paid by the product provider, such commission payment will be made to Lifespan. Lifespan pays 75% or more of all commissions and fees to your Adviser depending upon their total revenue.

How are any commissions, fees or other benefits calculated for providing the financial services?

than standard commission payments or a direct client fee. Soft dollar benefits include monetary payments as well as non-monetary payments. These soft dollar payments may be paid by product providers or the licensee to authorised representatives or may be paid by product providers to the licensee. Lifespan and its authorised representatives may receive the following direct dollar and business benefits:

Sponsorship of the Lifespan Annual Conference and professional development training seminars.

Lifespan seeks and sometimes obtains sponsorship from product providers and platform operators who have been previously approved, following our search conducted into the product providers and platform operators. The amount of sponsorship varies from year to year and is provided for costs associated with the general operation of Lifespan’s business as well as to provide speakers for educational sessions at professional development days
or conferences. The specific sponsorship amounts are entered into our Alternative Remuneration Register which can be provided to you on request within 7 days.

Lifespan and its authorised representatives also receive non-financial assistance from product providers relating to technical and professional educational services, receipt of economic research, business development management support, client seminars and presentations.

Lifespan representatives and staff may also receive entertainment benefits, for example, tickets to sporting events and theatrical performances, the value of which is restricted to $300 and these will be recorded in the Alternative Remuneration Register.

Alternative Remuneration Registers

The Financial Planning Association (FPA) has developed an Industry Code of Practice requiring that Lifespan, your adviser and Omniport each maintain a Register detailing alternative forms of remuneration paid and received. You may ask your adviser or Lifespan to see any of the above registers and it will be provided within 7 days.

Additional Payments

Lifespan has negotiated or will negotiate volume based and other additional volume based payments with several fund managers and platform providers including Omniport, and also with risk insurance providers. These volume based payments are sometimes referred to as rebates or platform margins or other names. Volume based payments on various wholesale and retail managed funds and platforms range from 0.05% pa of funds under advice (FUA) to potentially 0.30% pa of FUA. These percentages may vary from year to year. Additional volume based risk insurance commissions may range from 10% to 40 % of the premiums paid. A share of this volume based commission currently ranging from nil to 60% may be payable to your adviser.

This share may vary from year to year and is dependent upon Lifespan’s gross profit from your adviser’s activities and other criteria. All relevant details of Lifespan’s additional commissions on any financial products and the policy covers loss or damage suffered by retail clients due to breaches of all obligations under Chapter 7 of the Corporations Act by the licensee and its representatives. This includes negligent, fraudulent or dishonest conduct.

Our Privacy Policy

Our business is governed by legislation protecting your personal information, including the Privacy Act 1988 and Australian Privacy Principals (APPs) Privacy Amendment (Enhancing Privacy Protection) Act 2012 which replaced the National Privacy Principles established under the
Privacy Amendment (Private Sector) Act 2000. Our privacy policy is available on our website or on request from us direct as detailed below.

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