Effective from August 2019

It is important that you read and understand these Terms of Engagement as they describe both our obligations and yours regarding the services we provide.

General Information

These terms and conditions apply to any engagement, transaction, financial or otherwise provided by us.

You acknowledge that we are not obliged to accept you as a client or to provide services or issue products to you.

Additional terms and conditions may apply to specific products or services we provide.  We will provide you with any such additional terms and conditions if applicable.  In the event of a conflict, such additional terms and conditions will take precedence in respect of the products and services to which they apply.

Our Experience

We provide a highly customised and personalised service for individuals, family trusts and companies looking for tailored KiwiSaver, Insurance, Retirement Planning, Wealth Management and Mortgage advice.

We trade in New Zealand under the name of MacKay Financial Advice & Solutions (MFAS). 

Our team includes five qualified Authorised Financial Advisers (AFAs), and one Registered Financial Adviser.

Each AFA takes responsibility for their own financial adviser services.  This includes making sure they exercise care, diligence and skill in providing financial advice to you.  Code Standard 1 of The Code of Professional Conduct for AFAs prescribes that:  An Authorised Financial Adviser must place the interests of the client first, and must act with integrity.  These obligations are paramount.  Please also refer to your Adviser’s Disclosure Statements.

Your Obligations

Any advice provided as a result of our analysis can only be as good as the information received from you so we ask that you provide us with the information we request.  Without relevant and correct information about your personal and/or business, and financial situation we run the risk of giving advice that is not appropriate to your needs.  If you are unsure as to why we need certain information please ask so that we can explain.

Our Advice

Your Adviser will have regard to your objectives and your personal circumstances as provided by you and this will be set out in their written advice or record of advice, when providing you with personalised financial advice.  In the event that you decline to provide information regarding your objectives, financial situation or particular needs to your Adviser, we will only be able to provide you with execution or product only advice services.

If execution or product only advice is requested, we will not be providing personalised financial advice to you.  This means that we will not consider your relevant personal circumstances such as your current situation, needs, objectives or the appropriateness of what you wish to purchase when actioning your requests, nor provide advice relating to the merits or subject matter of transactions.  We will provide information that you request, suitable to the agreed scope of service, that allows you to make an informed decision.

Any limitations on the scope of our services may mean that the resulting implementation is not totally suitable for your personal circumstances.

If we identify you as a “Wholesale Client” under the definition in the Financial Advisers Act, and the Financial Markets Conduct Act, and you choose to engage our services, you are opting into a retail (personalised) client service, which will provide you with a greater level of protection as a client.

Confidentiality

We will treat all your personal information as confidential.

We will comply with all applicable laws (including the Privacy Act 1993) when we collect, use, and disclose personal information about you.

Privacy Act

  1. We collect personal information from you (and possibly from your Trust and/or Company) including information about your name, your contact information, your interactions with us, your medical, financial, personal identity information and about any financial products you purchase through us or financial products that you ask us to be the adviser for.
  2. We collect your personal information in order to:- confirm identity, be able to provide relevant insurance products to protect you from potential financial risk, offer relevant options for retirement planning, investment planning and KiwiSaver, be able to offer suitable property lending options and, keep in touch with our clients to provide updates and insights on our services.

3.     Besides our Advisers and staff, we may share this information with:

a.   Insurance and financial product providers in order to be able to provide tailored solutions and fit-for-purpose products

b.   Insurance providers in order to claim on insurance products

c.   Financial product providers to assist with making contributions to and withdrawals from investments and KiwiSavers

d.   Compliance advisers, assessors or by any claims’ investigators or regulators (FMA) who may need access to such information; and

  1. Other professionals such as solicitors, accountants, finance and mortgage brokers, fire & general brokers and financial planners when such services are required to complement this advice and as requested by you.
  2. It is understood that any information gathered for this needs analysis is personal and we undertake to keep this information confidential and secure.
  3. Medical information (if applicable) upon which special acceptance conditions have been based for insurance contracts, may be disclosed to our company or to your Adviser by the insurer.
  4. The confidential information will be held by me / us at the Adviser’s office address and may be in paper format and/or electronic files and/or may be held remotely in secure electronic storage systems or via paper records held in safe storage off site.
  5. The Privacy Act 1993 gives you the right to request access to, and correction of, your personal information.

Customer Checks

We are required to comply with all laws binding on us in all applicable jurisdictions, including:

  • The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act); and
  • The United States Foreign Account Tax Compliance Act, the intergovernmental agreement between the United States and New Zealand relating to it, and relevant provisions of the Tax Administration Act 1944 (together, FATCA).
  • The Automatic Exchange of Information – an international initiative to combat global tax evasion (AEOI).
  • We are required to perform customer due diligence and account monitoring, keep records, and report any unusual or suspicious transactions where required by the AML/CFT Act, FATCA, or any other law.

Our Products and Services

Your Adviser will disclose the products and services which he or she can provide advice on, and which may include the following:

·       Life Cover

·       KiwiSaver

·       Income Protection Cover

·       Manged Funds

·       Trauma Cover

·       Superannuation Funds

·       Total & Permanent Disablement Cover

·       Retirement Planning

·       Mortgage Replacement Cover

·       UK Pension Transfers

·       Health Insurance

·       Mortgages

·       Employee Benefits

·       Some Legacy Products

Remuneration

The nature and total percentage or dollar amount of any fees that your Adviser will receive for advice and/or services, and how they will be paid, will be disclosed to you by your Adviser in the Scope of Engagement (nature of fees) and Secondary Disclosure Statement – Remuneration (amount of fees).  We may be remunerated for the implementation and retention of some financial products by the product provider.  Ongoing Adviser Fees are most often paid via the product provider.

Where we have not charged an upfront fee and you have applied for a financial product, including a mortgage, and then not accepted the product offered, assuming the terms are reasonable, or if you fail to complete the application process through no fault of the product provider or us, or if you cancel the financial product within 24 months of its start date, we reserve the right to charge a Planning Fee of up to $350 per hour plus GST to a maximum of $4,000 plus GST.

Consultancy Fees

Where our Advisers are working on a consultancy basis, (generally when there will be no financial product purchased as a solution, or if any fees payable from a financial product are so low as not able to recompense CMFP for our Adviser’s time) the hourly rate is $350 plus GST.

 

A minimum of four hours (or $1,500 plus GST) should be allowed under the consultancy arrangement, to cover any meeting/s, setting up client files, writing and / or completing file notes.

 

The hourly rate for senior administration staff is $200 plus GST per hour and $150 plus GST per hour for general administration staff.

 

We will confirm the amount or basis of calculation of any fee payable in our Scope of Engagement if it will be more than $1,500 plus GST.

Procedures for dealing with your money

We cannot use your money or securities for another client’s benefit or to pay our expenses.  All funds and premiums will be paid to your nominated product provider directly, and are not held by us.

Communications

From time to time we may email you about our other services or offers.  We may also send you newsletters and other information.

Please let us know if you prefer us not to send you emails.

Ending this agreement

Either party may terminate these Terms of Engagement by giving notice in writing.  After termination, we will not action any advice or product orders.  Termination does not affect any rights or obligations that arose prior to termination.  Please refer to the section on Remuneration above.

 

Confirmation of your acceptance of these terms will be recorded in our Scope of Engagement.