FINANCIAL SERVICES GUIDE
A guide to our relationship with you and others
The Financial Services covered by this Financial Services Guide (FSG) are provided by:
Capital Insurance (Broking) Group Pty Ltd. In Queensland, we trade as Hervey Bay Maryborough Insurance Brokers, Keith White Insurance Broking and Seamac Insurance Brokers. Our ABN number is 47 503 671 671 and our Australian Financial Service License number is 241802.
This guide contains important information. It is designed to assist you in deciding whether to use any of those services and contains important information about:
- the services we offer you
- how we and our associates & others are paid
- any potential conflict of interest we may have
- arrangements we have in place to compensate our clients for losses
- our internal and external dispute resolution procedures and how you can access them
Further information when personal advice is given
We will provide you with further information whenever we provide you with advice which takes into account your objectives, financial situation and needs. This information may include the advice that we have given you, the basis of the advice and other information on our remuneration and any relevant associations or interests. This information may be contained in a statement of advice (SOA).
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 polices we have not compared those policies to other policies available, other than from those insurers we deal with regularly.
Product disclosure statement (PDS)
If we offer to arrange the issue of an insurance policy to you, we will also provide you with, or pass on to you a (PDS), unless you already have an up to date PDS. The PDS will contain information about the particular policy which will enable you to make an informed decision about purchasing that policy.
From when does this FSG apply?
This FSG is valid from August, 2017 and remains valid unless a further FSG is issued to replace it. We may give you a supplementary FSG. It will not replace this FSG but will cover services not covered by this FSG.
Who do we act for?
As an insurance broker we normally act for you. We may enter into an agreement with an insurer to arrange insurance policies on their behalf and not on your behalf. If we are given a binding authority from the insurer, this means we can enter into insurance policies and/or handle or settle claims on their behalf. We will inform you when we act for the insurer and not for you.
How can I instruct you?
You can contact us to give us instructions by post, phone, fax or email on the contact number or details mentioned on our documents.
What kinds of financial services are you authorised to provide to me and what kinds of financial products do those services relate to?
Capital Insurance (Broking) Group P/L is authorised to advise & deal in general insurance products to wholesale and/or retail clients. We will do this for you as your broker unless we tell you otherwise.
There are a wide range of insurance policies we can arrange. These include, but are not limited to, the following insurance policies for retail clients:
- Motor vehicle insurance; • Home building insurance;
- Home contents insurance; • Sickness and accident insurance;
- Consumer credit insurance; • Travel insurance
Will I receive tailored advice?
Maybe not in all cases. However, we may need information about your personal objectives, details of your current financial situation and any relevant information, so that we can arrange insurance policies for you. In some cases we will not ask for any of this information. If we do not ask, or if you do not give us all of the information we ask for, any advice you receive may not be appropriate to your needs, objectives and financial situation.
You should read the warnings contained in any SOA, or any other warnings that we give you, carefully before making any decision about an insurance policy.
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 insurance policies that we arrange for you. We may also maintain records of any recommendations or advice given to you. We will retain records of this FSG and any other FSG given to you as well as any SOA or PDS that we give or pass on to you for the period required by law.
How will I pay for the services provided?
For each insurance product the insurer will charge a premium that includes any relevant taxes, charges and levies. We often receive a payment based on a percentage of this premium (excluding relevant taxes, charges and levies) called commission, which is paid to us by the insurers. However, in some cases we will also charge you a fee. These will all be shown on the invoice that we send you. You can choose to pay by any of the payment methods set out in the invoice. You are required to pay us within the time set out on the invoice.
If there is a refund of premium owed to you as a result of a cancellation or alteration to a policy, we will retain any fee we have charged you. We may also retain commission depending on our arrangements with the insurer.
When you pay us your premium it will be banked into our trust account. We retain the commission from the premium you pay us and remit the balance to the insurer in accordance with our arrangements. We will earn interest on the premium while it is in our trust account or we may invest the premium and earn a return. We will retain any interest or return on investment earned on the premium.
How are any commissions, fees or other benefits calculated for providing the financial services?
Our commission will be calculated based on the following formula: X = Y% x P
In this formula: X = our commission, Y% = the percentage commission paid to us by the insurer. Our commission varies between 0 and 40%.
P = the amount you pay for any insurance policy (less any government fees or charges included in that amount).
We may also charge you:
- an administration fee in addition to commission when you enter into an insurance policy.
- a flat fee for arranging an insurance policy or a fee based upon the time we spend advising you.
- an annual management fee.
We may also receive other income or benefits from insurers, including:
- commission or allowances from insurers for managing binding authorities or other similar facilities;
- profit commissions, profit shares or reward points paid by insurers on certain classes of insurance;
- expense reimbursements e.g. some training costs or resources;
- administrative fees for services we provide to insurers.
Our employees that will assist you with your insurance needs will be paid a market salary that may include bonuses based on performance criteria.
We do not often pay any commissions, fees or benefits to others who refer you to us or refer us to an insurer. If we do, we will pay commissions to those people out of our commission or fees (not in addition to those amounts), in the range of 0 to 40% of our commission or fees.
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 the subject of the advice.
See below for information on the Steadfast association and commission.
Do you have any relationships or associations with the insurers who issue the insurance policies or any other material relationships?
- Capital Insurance (Broking) Group P/L is a shareholder of Steadfast Group Limited (Steadfast). Steadfast has exclusive arrangements with some insurers under which Steadfast will receive between 0.5 – 2% commission for each product arranged by us with those insurers. These payments are used to operate Steadfast.
- Depending on the operating costs of Steadfast (including the costs of member services provided by Steadfast to us and other Steadfast shareholders) and the amount of total business we place with the participating insurers in any financial year, we may receive a proportion of that commission at the end of each financial year.
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.
Steadfast is also a shareholder of Various Underwriting Agencies (partners). As a shareholder, Steadfast may receive dividends from these Underwriting Agencies. These amounts will indirectly contribute towards the benefits we receive from Steadfast.]
Steadfast has a shareholding in Macquarie Pacific Funding. If we arrange premium funding with Macquarie Pacific Funding for you, under its agreement with Macquarie Pacific Funding, Steadfast will receive 0.5% of your insurance premium (including government fees or charges). As an equity shareholder of Macquarie Pacific Funding, Steadfast may also receive dividends from profits of Macquarie Pacific Funding. The amount of the Steadfast dividend is based on the share of profit attributable to funding arranged by Steadfast shareholders. The payments (commission and dividends) that Steadfast receives from Macquarie Pacific Funding are used to operate Steadfast. Depending on the operating costs of Steadfast and the amount of total business we place with Macquarie Pacific Funding in any financial year, we may receive a portion of those amounts at the end of each financial year.
You can obtain a copy of Steadfast’s FSG and details of the Underwriting Agencies (partners) it has a shareholding in at www.steadfast.com.au
If we arrange premium funding for you we may be paid a commission by the premium funder. We may also charge you a fee (or both). The commission that we are paid by the premium funder is usually calculated as a percentage of your insurance premium (inc. government fees or changes). If you instruct us to arrange or issue a product, this is when we become entitled to the commission.
Our commission rates for premium funding are in the range of 0 to 3% of funded premium. When we arrange premium funding for you, you can ask us what commission rates we are paid for that funding arrangement compared to the other arrangements that were available to you.
We do not deal with all premium funders or consider all available products when we make recommendations to you about premium funding.
What should I do if I have a complaint?
Contact us and tell us about your complaint. We will do our best to resolve it quickly & fairly. If your complaint is not satisfactorily resolved within 2 days, please contact our Complaints Officer on (07) 4128 3455 or put your complaint in writing and send it to: Complaints Officer, Capital Insurance (Broking) Group Pty Ltd, PO Box 1071 Hervey Bay Qld 4655
We are also a member of the Financial Ombudsman Service Australia (FOS). If your complaint cannot be resolved to your satisfaction by us you have the right to refer the matter to FOS. FOS can be contacted on 1800 367 287.
What arrangements do you have in place to compensate clients for losses?
Capital Insurance (Broking) Group P/L has a professional indemnity insurance policy (PI policy) in place. The PI policy covers us and our representatives (including our authorised representatives) for claims made against us and our representatives by clients as a result of the conduct of us, our employees or representatives in the provision of financial services
We may provide all disclosure documents electronically to maximise efficiencies. If you do not want to receive these documents electronically, please notify us within 7 days to opt out. If you do want to opt out of electronic notifications, please email email@example.com accordingly.
If you have any further questions about the financial services we provide, please contact us.