Financial Services Guide
About this Financial Services Guide
This Financial Services Guide (FSG) provides you with key information about services offered by Vested Equities Pty Ltd. You should read it carefully and make sure you understand it.
This FSG is dated 28th April 2016 and is provided to you by Vested Equities Pty Ltd (Vested Equities, we, our, us) to inform you of the financial services we are able to provide and to assist you in deciding whether to use any of the services offered in this FSG. This FSG replaces all prior versions .
Vested Equities Pty Ltd (ABN: 54 601 621 390) holds a current Australian Financial Services Licence (AFSL) No: 478987. Vested Equities is responsible for the financial services provided to you and for the content and distribution of this FSG.
This FSG explains:
- other disclosure documents we may give you
- who we are and how you can contact us
- financial services and products we are authorised to provide
- how you can instruct us
- how we get paid (remuneration, brokerage charges, benefits)
- how we deal with customer complaints and where you can go for further help
- our compensation arrangements
- potential conflicts of interest
This FSG contains general information only. If you have further questions after reading the FSG please contact Vested Equities.
Further Disclosure Documents we may provide you
Vested Equities will provide clients with documentation to facilitate transactions including client agreements, terms and conditions and confirmation of transactions. Where we make a recommendation on a product (other than securities listed on the ASX) to a retail client, we will provide a Product Disclosure Statement (PDS) which will assist you in deciding whether to acquire the financial product. The PDS contains important information about the product features, benefits, risks and fees associated with that particular product. The PDS should be read carefully to enable you to make an informed decision about whether to utilise the product. You are entitled to receive a Statement of Advice (SOA) when we give personal advice if you are a retail client. Personal advice is advice that takes into account your personal objectives, financial situation and needs. The SOA will set out the advice and will include information regarding the basis on which the advice was given, any fees or brokerage charges received in providing the advice and a warning where the advice has been provided based on incomplete information. The SOA presents the advice and basis on which it was given. Where you obtain regular advice from us, once we have provided you with an initial Statement of Advice a further Statement of Advice may not be provided each time we provide you with further advice so long as your circumstances and the basis of the advice are not significantly different to your circumstances at the time the initial advice was provided. However, we are required to keep a record of any such advice we provide. You may request a copy of the Record of Advice (ROA) which we will keep for up to 7 years after the advice was given .
About Trading Equities
Trading Equities is a financial services firm that deals primarily in securities listed on the Australian Securities Exchange (ASX) and over-the-counter and exchange-traded derivatives. Trading Equities is a corporate authorised representive of Vested Equities.
Trading Equities Pty Ltd contact details
Address Level 11
50 Cavill Avenue
QLD 4217 Phone:
Fax: +617 5655 5331
+617 5655 5341
Financial Services we are authorised to provide
provide general and/or personal financial product advice and to deal (apply for, acquire, vary or dispose) in relation to:
- deposit and payment products
- standard margin lending facilities
- managed investment schemes including IDPS
to retail and wholesale clients.
Our Advice and Responsibilities
Vested Equities is authorised to provide personal advice but may not always do so. If we provide ‘general advice’ only to you, it is important to remember that this ‘general advice’ will not take account of your personal objectives, financial situation or needs. Therefore, we recommend that you take all reasonable steps to fully understand the outcomes of specific products and strategies adopted in relation to utilising the services provided by Vested Equities. Newsletters and research papers are examples of general advice we may give you.
a. Personal Financial Advice
Personal advice is advice provided after your Adviser considers one or more of your investment objectives, ﬁnancial situation and needs. For Vested Equities to give you appropriate personal financial advice, you will need to provide details of those personal objectives, your current financial situation, needs and any other relevant information.
You do not have to provide us with this information. If you choose not to provide this information, however, we may not be able to provide you with advice, or the advice you receive may be general in nature and may not be appropriate to your objectives, financial situation and needs. You should read the warnings provided in any document that we provide to you carefully in regard to any decision relating to a financial product.
We only provide personal advice to you where you use the services of one of our representatives. We will not give you personal advice in our regular updates or marketing material or when you visit our website. We maintain a record of your completed personal profile including details of your objectives, financial situation and needs.
We also maintain records of any recommendations made to you.
b. Limitations on the Advice provided
It is important that you understand that the advice your adviser provides may be limited because:
- you have only provided selected personal information
- you have sought scaled advice e.g. only in respect of a security or securities
- your adviser has limited authorisation e.g. is not a tax agent
- your adviser is restricted to advising on products on that are Vested Equities approved products
- your adviser is restricted to dealing and advising only on the products described in our licence.
In formulating recommendations, your adviser does not consider taxation, legal and estate planning implications. As we are not specialists in these areas, you should seek further advice, as relevant, from an appropriate specialist. If you want specific advice, you should consult a specialist.
If arranged with your adviser, Vested Equities can provide limited personal advice that is limited to a particular financial product range and/or based on limited relevant personal information. This may mean the advice and resulting investment may not be appropriate to your individual investment objectives and personal circumstances. You should make your own assessment of the appropriateness of any such advice. If we provide you with personal advice, you will receive a SOA. If we provide you with further advice, we will not give you a SOA but you can request a copy of the Record of Advice (ROA) up to 7 years after the advice is provided.
c. General Advice
While Vested Equities believes the general financial product advice and information we provide is accurate and reliable, we will not assume any responsibility for the accuracy and completeness or currency of that advice and information.
Products and services provided by us
Vested Equities may provide you with an execution-only service and/or may provide you with general or personal advice in relation to the authorised financial products. Vested Equities arranges for you to be supplied with financial services and products issued by non-related product providers. Vested Equities may receive a fee or brokerage payment from these non-related issuers as a result if you are provided with one of their products or services. Any remuneration that Vested Equities may derive is included in the fees and brokerage charges you pay as outlined under the heading “Remuneration”.
Before transacting you will need to have opened an account with our preferred third party service providers.
For shares and options trades, we have appointed market participants to provide execution, clearing and settlement services for:
- transactions in securities and other financial products executed through the ASX;
- for transactions in all derivatives (such as Exchange Traded Options) executed through ASX;
- settlement services for transactions executed by, or on behalf of our clients; sponsorship services; and
- nominee and other custody services.
This means you will become a client of our preferred service providers. Vested Equities will arrange for you to be provided with the service provider’s FSG and other documents which provide further information about the services provided.
Please note that a PDS is not required for investments in securities. We have prepared a guide to investing in securities and this is available on our website www.vested.com.au or by contacting us directly. You should ensure that you understand the risks and procedures before investing in securities. You will receive your contract notes from the service provider. You should contact the service provider if you do not receive a contract note or it there are any discrepancies immediately. In arranging for a third party to provide these services to you, Vested Equities will act as your agent, not as the agent of the third party.
For Contracts For Difference, Vested Equities will arrange for its clients to be provided with the FSG, PDS and other disclosure and documents which provide further information about the services provided by our preferred third party product issuer. You will receive your daily statement from the product issuer. Vested Equities will act as your agent, not as the agent of the product issuer.
You can give instructions to us in any of the following ways:
- by the telephone (note your telephone calls to us may be recorded);
- in writing (including email or facsimile by prior arrangement only, note you must confirm with us that such instructions have in fact been received by us as electronic communications may fail or not be received in a timely manner); and
- electronically via direct entry into trading systems that we provide access to.
For Margin Lending products, on specific request by the client, Vested Equities provides the disclosure documents and the application. Vested Equities makes no recommendation as to which is the best provider or whether the product is suitable for the client . Vested Equities advises clients that they should seek independent financial advice to determine whether margin lending product is suitable for their purposes and circumstances. Vested Equities will forward completed application forms to the product provider. Vested Equities receives a brokerage from the product provider. The product provider undertakes the assessment of client’s income and liaises directly with the client on all subsequent events such as credit assessment, loan to valuation limits, margining etc. Vested Equities will not notify you of a margin call.
For Wealth Management products, Vested Equities follows the steps below.
- Gathering financial data – such as details of your income and expenses, goals and objectives etc.
- Gather the relevant personal circumstances that you have disclosed and determine whether this is sufficient information to provide advice on the products or services that you seek.
- Conduct a reasonable investigation into the financial products that may achieve your objectives and meet your needs
- Take any other step that would reasonably be regarded as being in your best interests
- Preparing your Statement of Advice if personal advice is given. This will identify recommended investments and will address your attitude to risk.
- Implementing the advice.
- Reviewing and revising your advice as to ensure it stays up-to-date and relevant to the economic climate and your changing lifestyle.
Vested Equities arranges for its clients to be provided with the Financial Services Guide, PDS and other disclosure documents which provide further information about the products and services provided by our preferred third party product issuers. You should also be aware that you are entitled to receive an SOA whenever we provide you with personal advice, which takes into account your objectives, financial situation and needs . This Statement of Advice will contain the advice, the basis on which it is given and information about fees, brokerage charges, business relationships and associations which may have influenced the provision of the advice. If our representative provides further advice to you, and that further advice is related to the advice we have provided to you in a previous Statement of Advice and we do not give that further advice in writing you may request a copy of the record of that further advice at any time up to 7 years from the date our representative gave the further advice to you. You can request the record of the advice by contacting the representative or us in writing or by telephone or by email.
For financial products (other than securities), we must also provide you with a PDS containing information about the particular product, which will enable you to make an informed decision in relation to the acquisition of that product.
a. Transaction fees
Vested Equities is remunerated through the fees and brokerage charges that we charge you for executing transactions on your behalf. Fees and brokerage charges charged to you will depend on the type of financial product being traded, the frequency of your trading activity, the type and level of service required and the size of your transaction. Rates are subject to negotiation prior to transacting any business. Fees and brokerage charges, once disclosed and agreed, will be charged to your trading account when you buy and sell at the time your transaction is executed. The brokerage rates below are the maximum that Vested Equities could charge and are provided as a guide. Please contact us for your most competitive rate.
|Type of Product Basis||Maximum fee|
|Securities and warrants||per transaction up to $220 or 2.2% (including GST) of the transaction value (whichever is greater); typical fee is $110 or 1.1% (including GST)|
|Exchange traded options||per transaction up to $220 (including GST) per transaction of up to 40 options contracts and $2.20 (including GST) per contract after that;|
|Contracts for Difference (CFDs)||Notional value of the transaction up to 1.1% (including GST); typical fee is a flat rate fee of $100 or 0.25% product issuer spreads may widen by up to 15 points either side|
These rates are subject to change from time to time. Should there be a change in the fee structure, Vested Equities will notify you by email or post a notice to our website www.vested.com.au. Goods and Services Tax (GST) may be levied on brokerage charged to Australian Residents. We recommend that you seek advice from a professional tax agent who can provide advice in relation to the tax deductibility of any fees that we charge. A detailed description of the fees, charges and brokerage charges payable can be found in the Product Disclosure Statement for the relevant financial product. If you request to trade via Direct Market Access (DMA), you may be charged royalties from IRESS. Please speak to your adviser for confirmation of costs and IRESS Terms and Conditions.
b. brokerage charges, remuneration and other benefits received by Vested Equities
Vested Equities charges fees for the services and products provided. Where we provide you with personal advice, detailed information about fees, brokerage charges or other benefits we may receive will be provided within your SoA, RoA or Advice Confirmation letter. These fees may be charged in various ways, including
- an advisory fee or ongoing service fee, e.g. initial fee, account fees, management fees (which include transaction, ongoing and, if applicable, any borrowing costs) and/or brokerage
- administration fees
- fees based on funds under management or advice.
More details in relation to your advice and the brokerage charges paid will be disclosed in your SOA and/or by request. Vested Equities may receive brokerage charges from some product providers other than for insurance for some pre-existing arrangements. We may receive remuneration from a product issuer in the form of upfront brokerage where authorised by you. These fees or brokerage charges are different for each product and will be disclosed in the relevant PDS. They will be disclosed to you if we have provided you with personal advice in relation to a particular product. As a guide, Vested Equities may receive:
Type of Product Basis for calculation brokerage/Payment we may receive Managed Funds Funds under management Upfront brokerage can range from 0 to 3%(paid by client to Vested Equities) Ongoing brokerage can range from 0% to 3% p.a. %(paid by client to Vested Equities) Management Fee Daily Portfolio Value Ongoing brokerage can range from 0% to 3% p.a. %(paid by client to Vested Equities) Margin Lenders Amount of facility Ongoing brokerage can range from 0% to 1.5% p.a. Cash Management Trusts Daily balance of account Ongoing brokerage can range from 0% to 0.75% p.a. For the above Wealth Management transactions, a fee for service may be negotiated. An hourly rate of $375 + GST upfront will be payable with ongoing combination of fees and brokerage charges . We may also receive fees in relation to Initial Public Offerings and underwriting activities. Fees can vary from 0% to 10% of the amount raised or underwritten, and on occasion we may also receive some free shares or options in the company we are sponsoring or underwriting. These fees will be disclosed in the offer document, prospectus or PDS issued by the issuer. We may receive referral fees from time to time from Margin Lenders . These will vary depending on the product provider and the balance of your loan. Generally we may earn a fee of up to 1.5% of the loan amount.
c. Miscellaneous fees and charges
|Service||Fees and Charges (including GST)|
|Non- STP Contract||$31.50|
|Postage of confirmation contract note||$2 per confirmation contract note|
|Initial fail fee charge||10.0 bps with a minimum of $110.00 per day|
|ASX levied fail fees||On charged|
d. Interest on Client Segregated Account
We may receive interest on credit balances of the Client Segregated Account and Vested Equities will retain any such interest received.
e. brokerage charges, remuneration and other benefits paid by Vested Equities
You may have been referred to us by a service provider who may receive financial or non-financial benefits from us. These should be disclosed to you by the service provider in question. Please note that such benefits will not impact transaction fees or the rates you will be offered for financial products or services undertaken with Vested Equities.
f. Soft dollar benefits
Vested Equities may from time to time receive a benefit from preferred product providers including educational seminars, conferences, and training days. Details of benefits above $300 received by us will be maintained on a register.
g. How do we get paid?
We may receive a share of remuneration received as outlined above. We may receive up to 100% of transactions based fees, brokerage charges or other fees. More details in relation to your advice and the brokerage charges paid will be disclosed in your SOA and/or by request.
h. How do we pay our advisers?
Our advisers may be paid a flat salary or receive a share of remuneration received as outlined above. They will usually receive between 50-60% of transactions based fees, brokerage charges or other fees that Vested is entitled to.
We take every reasonable step to ensure we provide you with quality service. Vested Equities has an internal dispute resolution policy in place to help resolve any complaints or concerns you may have about the service provided to you. These should be directed to the Complaints Officer (by telephone, facsimile, or letter) at the address on the first page of this FSG, or by email to email@example.com.
We will provide you with acknowledgement of written complaints within 2 business days, and seek to resolve and respond to your complaint within 30 days of receipt. We will investigate your complaint, and provide you with our decision, and the reasons for which it is based in writing. We will endeavour to resolve your complaint quickly and fairly.
If the complaint cannot be resolved to your satisfaction within 45 days and you wish to proceed further, you may lodge a complaint with the Financials Ombudsman Service (FOS) via the following means:
Financial Ombudsman Service
GPO Box 3, Melbourne Vic 3001
Toll Free Telephone: 1300 78 08 08
Fax: (03) 9613 6399
You may also contact Australian Securities and Investments brokerage (ASIC) freecall Infoline on 1300 300 630 to make a complaint and obtain information about your rights.
Vested Equities holds Professional Indemnity Insurance cover for the activities conducted under its AFSL. The policy provides coverage in the aggregate of up to $2,500,000 with an excess of $25,000 to cover claims regarding professional indemnity, directors and officers liability, crime (fraud) and the conduct of representatives/employees who no longer work for us (but who did at the time of the relevant conduct). Vested Equities Professional Indemnity insurance cover is subject to the policy terms and conditions; however the cover satisfies the requirements of s. 912B of the Corporations Act.
Conflicts of interest
Vested Equities nor any of its related bodies corporate, nor any of our authorised representatives, have any ownership links with any financial product issuer that could be expected to influence us.
Conflicts of interest may occur from time to time. You have the right to be advised of any material interest that could reasonably be expected to be capable of influencing the recommendation of a financial product to you.
Accordingly, you should be aware that:
- Vested Equities is remunerated wholly or in part on a share of brokerage or brokerage basis
- If you have been referred to us by a third party, that person may receive a share of brokerage charged to you
- Vested Equities may have material interests in companies from time to time. These may be companies we have raised capital for, provided advice to or produced research on.
Should a conflict occur, you will be advised either verbally by your Client Advisor or this will be outlined in a SOA or ROA. Should you have any concerns or would like to discuss this matter further please contact us.
Record keeping and Privacy
We will maintain complete records of the services we provide to you in accordance with Australian Laws. As a financial services provider, we have an obligation under the Anti Money Laundering and Counter Terrorism Financing Act to verify your identity, amongst other things. If we are unable to collect all information requested in the account opening process or requested during the subsequent services, we may be unable to provide or continue to provide services. We will also retain copies of this information.
We also keep a record of personal information you provide to us. Your privacy is important to us and we are committed to compliance with the Privacy Act and the National Privacy Principles. We maintain a record of your personal profile which includes your personal details and the details of your objectives, financial situation and needs, if provided to us. We also maintain records of any recommendations made to you.
We may disclose your personal information to external parties, such as our financial services providers, for the purposes of arranging your investments or transactions. Such external parties are required and committed to protecting your privacy.
Telephone calls with us may be recorded to allow for a record to be kept of orders taken and to ensure that our service standards are met.
The distribution of this Financial Services Guide has been authorised by Vested Equities.
Trading Equities Pty Ltd is an Authorised Representative of Vested Equities Pty Ltd ABN 54 601 621 390 AFSL 478987. All advice (if any) is general advice only. Your personal circumstances and financial objectives have not been taken into consideration. Accordingly you should consider if the advice is right for you. Past performance is not a reliable indicator of future performance. Please be aware that all investment and trading activity is subject to both profit & loss and may not be suitable for you. All advice and education content is of the nature of general information only and must not in any way be construed or relied upon as legal, financial or personal advice. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. Investing and Trading involves an inherent level of risk. The decision to trade or invest and execution methods employed are a personal decision. You must obtain your own advise and undertake your own research when making investment decisions regarding the suitability of a product for your circumstances.
© Copyright 2017 Trading Equities Pty Ltd ABN 55 605 460 811