Financial Services Guide

FSG 2017-06-27T17:44:30+00:00

Purpose of this Financial Services Guide

This Financial Services Guide (FSG) aims to help you make an informed decision whether to use our services and contains information about:

  • Who we are
  • The services we offer you
  • What documents you can expect to receive from us
  • How we are remunerated for our services
  • Any potential conflict of interest we may have
  • Our complaints handling procedure and how you can make use of them

About Primestock Securities Ltd. and Prime Financial Group Ltd.

Primestock Securities Ltd (Primestock) holds an Australian Financial Services Licence (239180) and is part of Prime Financial Group Ltd (Prime), an ASX listed integrated wealth management firm for business owners and family groups.

Our Services

Primestock is authorised to provide advice about and deal in the following financial products:

  • Securities;
  • Superannuation;
  • Managed investment schemes, including investor directed portfolio services;
  • Deposit products;
  • Life insurance;
  • Derivatives;
  • Government debentures, stocks or bonds;
  • Standard Margin Lending;
  • Retirement savings accounts.

Your adviser is an Authorised Representative of Primestock. Primestock is responsible for the financial services provided to you by its representatives, and for ensuring you receive appropriate strategic advice, service and product based on your needs. Authorised Representatives of Primestock are required to act in your best interests at all times. Additional information about your Adviser can be found in their Adviser Profile.

How can I give you instructions?

You can contact us in person, by phone, fax, text or email. For some matters, we can only implement your wishes if you provide written instructions. We will always tell you if this is needed.

It is important that you provide us with complete and accurate information about your circumstances and you take the time to check any assumptions we make and the basis for our advice. If you don’t, our advice may not be appropriate for your needs.

Naturally, your circumstances may change over time. When this happens, our initial advice and recommendations may no longer be appropriate for you. We can periodically review your financial position, personal circumstances, financial goals and investment strategies to decide whether those strategies and goals and the financial products you hold continue to be appropriate for you. Or, you can contact us for a review when your circumstances change.

How we are remunerated for our services?

Our fees depend on the services we provide to you. We will always agree our fees with you before we provide any services. Broadly, however, our fees are as follows:

Strategic Advice

We will charge on the basis of the time required to prepare your advice at an hourly rate of between $330 – $495 including GST. Once we understand the scope of advice you seek, we will provide you with an estimate before we provide the advice. We will ask you to sign an engagement letter confirming your acceptance of the estimate.

Implementation

If you instruct us to implement our strategic advice, we will charge up to 1.1% including GST of the funds that you instruct us to invest on your behalf.

Other

We may also receive the following additional

remuneration, which is paid by the product providers:

  • A commission of 0.23% in respect of investments administered using the BT Wrap provided by BT Portfolio Services;
  • A commission of between 0.33% – 0.385% p.a. in respect of money held in Cash Management Accounts;
  • Stamping fees on initial public offerings and issue of hybrid securities, subordinated notes or similar like securities.

How is my Private Client Adviser paid?

The maximum remuneration a Private Client Adviser may receive is 40% of the revenue that Primestock receives from you. The calculation of the actual percentage they will receive is based on their overall performance in the year including meeting client service standards, financial, compliance and other objectives set by Prime.

What products will my Adviser recommend?

Primestock undertakes due diligence on our products and service providers and also uses independent research providers to select a range of offerings for our clients. While other products and services may also be suitable to your needs, your Adviser will generally only provide advice on products and services that are listed on Prime’s Approved Product List (APL).

The APL contains both financial products issued by providers external to Prime and products offered within the group. All products must meet our rigorous selection criteria and approval process to be listed on our APL.

Depending on your objectives, financial situation and needs, your Adviser may need to recommend a financial product that is not on our APL. If this happens, any product that your Adviser may recommend needs to meet our selection criteria and approval process.

What other documents will we give you?

We may give you other documents when we provide our services. These will include:

Statement of Advice

When we provide you with personal advice, we will give you a Statement of Advice (SoA). This will confirm the advice we have given and explain our fees for giving advice and arranging the financial products we have recommended.

Further advice to you will be documented in a new SoA or in certain circumstances this will be recorded using a Record of Advice (RoA). You can request a copy of the RoA by contacting us within a period of seven years from the date the advice was provided.

When you instruct us to place business on your behalf, you can expect to receive an Execution Only letter.

Product Disclosure Statement

If we recommend a particular financial product to you, we will also provide you with a Product Disclosure Statement containing information about the product such as its features and risks.

Engagement to Provide Ongoing Financial Services If you engage us to provide ongoing review and advice services, we will provide you with an “Engagement to Provide Ongoing Financial Services” as part of the Statement of Advice. This engagement details the ongoing services you will receive and the fees and charges that you direct us to receive.

Fee Disclosure Statement

If we provide ongoing services to you, we will provide an annual summary of the services we agreed to provide and the services we did provide, as well as the fees you have paid us in the past 12 months.

Transactions

If we buy or sell any ASX listed securities or managed investments for you, we will charge up to 1.65% including GST of the value of the trade with a minimum of $100 per trade. This is in addition to our Implementation and Ongoing Service Program Fees. This includes the fees of the stockbroker we use. The minimum fees for the stockbroker Patersons is $22 or 0.055% of the value of the trade. The fees for E*TRADE are $22 for trades up to $40,000 or 0.066% for trades over $40,000.

Ongoing Service Program

If you ask us to provide ongoing review and advice services, we will charge you up to 1.65% p.a. of funds that we review and manage for you. For example, if we charge you 1.65%, the annual fee on a portfolio of $200,000 would be $3,300 including GST.

Please note that our minimum ongoing service fee is $2,750 including GST.

This fee will vary according to the size and complexity of your portfolio and the services you ask us to provide to you. We will agree this with you when you engage us to provide ongoing services. We may charge for any additional services outside your ongoing service program at an hourly rate of between $330 – $495 including GST

Insurance Advice

If we arrange life insurance for you, we will receive commission from the insurers with whom we place your insurance. The amount will vary depending upon the type of insurance and can be between 0% and 124% of the first year’s premium (excluding taxes and statutory charges).

We will also receive an ongoing commission from the insurer during the life of your policy and these can be between 0% and 33% of the premium (excluding taxes and statutory charges). These commissions are included in the premium for the policy.

The insurance adviser may receive up to 60% as remuneration of the revenue that Primestock receives from you.

Important associations

Primestock has established joint ventures with over 30 accounting firms to provide financial services to their clients. These firms receive dividends in accordance with their shareholding in the joint venture company.

Professional indemnity insurance

Primestock has professional indemnity insurance which covers us for any errors or mistakes relating to our financial advisory services. This insurance meets the requirements of the Corporations Act and covers the services provided by our Advisers after they cease working with us, provided we notify the insurer of the claim when it arises and this is done within the relevant policy period.

What should I do if I have a complaint?

If you have any complaints about the service provided to you, you can either discuss the matter with your Adviser or our Complaints Officer on 1800 064 959. We may ask you to put your complaint in writing. We will try and resolve your complaint quickly and fairly and within 45 days.

If the complaint cannot be resolved to your satisfaction within 45 days, you have the right to refer the matter to the Financial Ombudsman Services. They can be contacted on 1300 780 808, or you can write to them at GPO Box 3, Melbourne, VIC 3001. Their services are free of charge to you.

Our privacy policy

To obtain a copy of our privacy policy visit www.primefinancial.com.au, or contact our Client Services team on 1800 064 959.

Get In Touch »

Contact Us »

VICTORIA

Level 17, Como Office Towers
644 Chapel Street
PO Box 6105
South Yarra, VIC 3141
T: 1800 064 959

NSW

Level 17,
9 Castlereagh Street
Sydney, NSW 2000
T: 1800 988 141

QLD

Suite 2, First Floor
280-286 Sheridan Street
Cairns, QLD 4870
T: 1800 796 096

WA

Unit 16, First Floor
100 Railway Road (Cnr Hay St)
Subiaco, WA 6904
T: 1800 785 855