Financial Services Guide
The Purpose of this Guide
This Financial Services Guide (FSG) is designed to assist you in deciding whether to use any of our services and contains important information about:
• The services we offer you
• How we and our associates are paid
• Any potential conflict of interest we may have
• What to do in the event of a complaint
Who is Responsible for the Financial Services Provided?
Scott Winton Nominees Pty Ltd trades as Scott Winton Insurance Brokers. We hold a current Australian Financial Services Licence (No: 239955) to provide general insurance broking services. We are authorised to advise and deal in the full spectrum of general insurance products.
Scott Winton Insurance Brokers is responsible for the financial services provided to you, or through you to your family members, including the distribution of this FSG.
In order to be granted and then retain our license we are required to commit to meeting stringent requirements in areas such as: staff training, organisational competence, management expertise, financial control and compliance disciplines.
We have an ongoing requirement to maintain and enhance our professionalism to ensure that you receive fair and honest Financial Services from us.
Who do we act for
We usually act on your behalf and in your interests in all matters. In some situations, it may be more appropriate for us to access insurance arrangements or manage claims where we act as the agent of the insurer. If and when this situation arises we will clearly explain and highlight this to you.
How to Contact Us
You are able to contact us by phone, in writing, by fax, email or in person.
We offer a range of services to assist you to protect your assets and guard against unexpected liabilities including:
• Reviewing and advising on your insurance needs
• Identifying risk factors to avoid claims
• Seeking competitive premium quotations
We can advise and arrange a broad range of insurances on your behalf including:
Home Building and Contents, Private and Commercial Motor, Farm, Business Packages, Construction, Liability, Industrial and Professional covers.
Under the Corporations Act 2001 (The Act) Retail Clients are provided with additional levels of protection from other clients. The Act defines Retail Clients as:
Individuals or a small manufacturing business employing less than 100 people or any other business employing less than 20 people. And that are being provided a financial service or product that relates to the following insurance covers: Motor Vehicle, Home building, contents, personal and domestic, Sickness and Accident or Travel, Consumer Credit and other classes as prescribed by regulations. Some of the information in this FSG only applies to Retail Clients and it is important that you understand whether you are covered by the additional protection provided.
Retail Client Issues
Typically we only provide General Advice to our Retail Clients. General Advice does not take into account your particular needs and requirements and you should consider the appropriateness of this advice to your circumstances prior to acting upon it. We will provide you with a General Advice Warning in such cases.
If you are a new Retail Client purchasing Personal Accident or sickness insurance and obtain Personal Advice, that is, advice that takes into account your particular circumstances, we will give you a Statement of Advice (SOA), that sets out the advice provided as well as the basis on which the advice is made and out remuneration should you purchase the product.
For existing Retail Clients we may not provide an SOA but rather provide the advice to you orally. In such cases you may request us to provide you with a Record of Advice (via the phone or in writing) which we will provide to you within 28 days of such request.
When you ask us to recommend an insurance policy for you, we will usually only consider the policies offered by the insurers or insurance providers that we deal with regularly. In giving you advice about the costs and terms of recommended policies we have not compared those policies to other policies available, other than from those insurers we deal with regularly.
If we recommend the purchase of a particular financial product, we will also give you a Product Disclosure Statement at that time, which sets out details specific to that product and the key benefits and risks in purchasing the product.
What We Expect From You
To enable us to provide the right advice we need you to provide us with complete information about the risk(s) that you face and those that you want to be insured for. You should also tell us about any relevant changes as they occur so that we can review your insurance needs accordingly.
The Federal Privacy Act 2000 sets out standards for the collection and management of personal information. With your consent, we will only use your personal information in relation to general insurance services. Further information on this is available upon request.
We will try and take the pain out of the claims process by assisting and advising you in regard to the scope of cover and explaining how the claims process works.
We will promptly forward to you all claims documentation, insurance company settlement cheques and other information.
Clients not satisfied with our services should contact our Complaints Officer. We are members of the Financial Obudsman Service (FOS), a free consumer service. Further information is available from our office, or contact FOS directly on 1300 780 808 or visit ww.fos.org.au. We also follow The Insurance Brokers Code of Practice.
We hold a Professional Indemnity Policy. This policy is designed to pay claims by Third Parties (including our clients) arising out of our Professional Negligence. The policy extends to cover us for work done for us by representatives/employees after they cease to work for us and satisfies the requirements for compensation arrangements under Section 912B of The Act.
To ensure that we provide you with appropriate products and services, you agree to us calling you to discuss any new products and services. If you do not wish to receive such calls please advise us and we will place you on our Do Not Call Register.
Our Sources of Income
We have the following sources of income:
When we placing your insurance, we usually receive a commission from the insurer. The amount payable varies between 0% and 25% of the base premium you pay. Where a policy is cancelled before the period of insurance has ended we will usually retain the commission on any return premium involved.
If you are a Retail Client and we give you Personal Advice, commission amounts will be provided in any SOA or (where an SOA is not Full details on commission will be included in any Statement of Advice we send you. We may also receive profit share or non-monetary payments from underwriters if we have met set targets.
We have a set of standard Broker Fees that we charge you for the cost of services that are not covered by the commissions received from insurers.
Activities that such fees cover include:
• Market research on products available.
• Assessing the claims paying ability of insurers.
• Sourcing alternative quotations and coverage.
• Risk analysis and insurance portfolio co-ordination.
All fees payable for our services will be advised to you at the time of providing the advice or service.
Any premiums received from you are held in a trust account prior to forwarding to your insurer. The interest earned on this money will be retained by us.
Scott Winton Insurance Brokers is a shareholder of the buying group – Steadfast Group Ltd. Steadfast receives up to 1% commission on premiums paid from certain insurers. This income is used to operate Steadfast and any surplus funds may be paid to us as a dividend or as a rebate.
As a shareholder of Steadfast we have 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 shareholders for a fee. You can obtain a copy of Steadfast’s FSG at www.steadfast.com.au.
Scott Winton Insurance Brokers is a member of the Zenith program through Zurich Insurance which is a profit share agreement, paid if a target set by Zurich is met. The profit share will be a maximum of up to 30% of the difference between the target level accident year claims and the actual accident year claims. This only applies to insurances placed through Zurich.
As a Zenith member we have access to member services including operating, compliance, procedures, advice and assistance, training and other services. These member services are funded by Zurich up to $5,000 per annum. Once this limit is reached all services must be paid by Scott Winton Insurance Brokers.
We are also a member of QBE’s profit share agreement. Scott Winton Insurance Brokers can receive a payment for meeting a target set by QBE. The bonus potential will be 50% of the annual Distributable Profit (Target NCOR – Actual NCOR x NEP) but limited to a maximum of 2% of the nett premium earned as calculated by QBE.
How our Representatives are Paid
Our representatives do not receive any benefit directly from the sale of a product to you. Our focus is on ensuring that staff concentrate on your needs first in all dealings with you.
Our representatives may receive bonuses payable based on the overall performance of our business. These may be monetary or non-monetary bonuses. Any such bonuses are not directly and solely linked to the sale of Financial Services.
Staff may also be rewarded by underwriters in non-monetary form for their support. This is not a common occurrence but can be attributed to our staff’s overall benefits.
Cooling Off Provisions
All retail products are subject to a 14 day ‘cooling off period’. This means that if you are not happy with the product, you have 14 days to withdraw from the contract at no cost to you.
Conflicts of Interest
As a business we have relationships with and receive income from various third parties as detailed in this FSG. For Retail Clients receiving Personal Advice, details of relationships that impact the advice will be included in any SOA or invoice documentation we send you. All material conflicts that impact our advice, that are not mentioned in this FSG, will be advised to you on the invoices related to that advice.
When Does This FSG Apply From
This FSG was prepared on the 30 April 2009.