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Financial Services Guide

Authorised for distribution by
Accru Wealth Management Pty Ltd

ABN 43 083 409 714
Australian Financial Services Licence No. 238520

50 Camberwell Road, Hawthorn East, Victoria 3123
PO Box 268, Camberwell, Victoria 3124

Telephone: 03 9835 8200
Facsimile: 03 9882 1932
Website: www.accrumelb.com.au

Introduction

This Financial Services Guide (FSG) document is designed to ensure that retail clients are given sufficient information to enable them to make an informed decision about whether to obtain financial services from the providing entity. It is an important document you should read carefully and retain for your records. Please speak to your adviser if you require clarification of any part of this document.

This guide consists of two parts.

Part 1 of this Guide contains important information about:

+ Who we are and how can we be contacted;
+ What products and services we are authorised to provide to you;
+ How your financial advice is documented;
+ How you can provide us with instructions;
+ What type of fees, commissions, payments and other benefits we receive for our services;
+ How we (and any other relevant parties) are remunerated;
+ Details of any potential conflicts of interests, benefits and or associations;
+ How we protect your privacy and how you can access our privacy policy; and
+ Details of our internal and external dispute resolution procedures and how you can access them.

Part 2 of this Guide is an Adviser Profile and includes information on the services your Adviser is authorised to provide on behalf of Accru Wealth Management.

This key information is set out in answer to the questions which follow.

References in this document to ‘we’, ‘our’ and ‘us’ refer to Accru Wealth Management Pty Ltd (ABN 43 083 409 714; Australian Financial Services License (AFSL) Number 238520).

You must read each of the following sections in conjunction with Part 2, which provides more detail to allow you to make an informed decision about whether to use the financial services we offer.

Together, these documents form the complete FSG which we are required to provide.

Before you get our Advice

 

Who is Accru Wealth Management?

Accru Wealth Management Pty Ltd (trading as Accru Wealth Management) is a privately owned company and the holder of an Australian Financial Services License (AFSL) issued by the Australian Securities and Investment Commission (ASIC).
Accru Wealth Management is the wealth management division of Accru Melbourne Pty Ltd, Chartered Accountants and Business Advisors located at 50 Camberwell Road, Hawthorn East, Victoria. Our full contact details are provided on the front page of this FSG.

Who provides the financial services described in this FSG?

The financial services described in this FSG are provided by your Financial Adviser as an Authorised Representative of Accru Wealth Management.
Part 2 of this Guide contains further details about your Financial Adviser, their qualifications and professional memberships.

Who is responsible for those financial services?

As the holder of an AFSL, Accru Wealth Management is responsible for the financial services we provide to you. Accru Wealth Management acts on its own behalf when these financial services are provided to you. In relation to the financial services offered in this FSG, Accru Wealth Management, as the holder of an AFSL, does not act on behalf of any other person or licensee. Accru Wealth Management is only responsible for the services offered in the FSG.

The law requires Accru Wealth Management to have arrangements in place to compensate certain persons for loss or damage they suffer from certain breaches of the Corporations Act by Accru Wealth Management and/or its Authorised Representatives. Accru Wealth Management has internal compensation arrangements as well as professional indemnity insurance that satisfy these requirements.

What financial services do we offer?

Accru Wealth Management is able to provide financial product advice and deal in a wide range of products including:

+ Deposit and payment products;
+ Debentures, stocks or bonds;
+ Life investment products and life risk products
+ Managed investment schemes including investor directed portfolio services;
+ Standard margin lending facilities;
+ Retirement savings account products
+ Securities (eg. Shares); and
+ Superannuation products

Some of the services you are able to access through Accru Wealth Management include:

+ Financial planning advice;
+ Wealth accumulation advice;
+ Superannuation advice, including Self-Managed Superannuation Funds;
+ Redundancy advice;
+ Retirement advice;
+ Gearing strategies
+ Cash flow advice;
+ Social security benefits advice
+ Life and disability insurance advice
+ Estate planning services (financial planning)

What products are available?

Accru Wealth Management has a comprehensive approved product selection process. This means:

+ We are not limited to recommending products from a particular organisation when choosing an appropriate product to suit your individual needs and or financial situation.
+ All products approved for use by Accru Wealth Management are supported by research from external research providers.
+ We conduct due diligence on external research report providers that provide us with research; and
+ Where we consider it in your interests not to advise on a particular product for any reason, we will clearly explain the reasons and assist to you act in a manner consistent with your best interests.

What can I expect?

As a new client you are entitled to a free initial, no obligation introduction of our services. This free consultation will not include specific financial planning advice, a financial plan or Statement of Advice (SoA), however it will help you to decide whether our services offered are right for your needs.
From our initial meeting, we work with you to understand your relevant needs, objectives and personal circumstances and the scope of the advice you need to achieve your goals and improve your current position.
Once you are ready to engage our services we will confirm the scope of advice being provided and importantly what is not being provided.
We will then review your current resources and assess strategies and financial products in order to prepare and present our recommendations on how to meet your goals (the advice) in a Statement of Advice (SoA).
We will explain in the SoA the basis for the advice, and any remuneration, benefits or associations which could have influenced the advice.
We will then ask you to sign the Authority to Proceed, which will enable us to commence the process of implementing the strategies we have recommended.
To ensure that your financial strategies continue to work for you, we have ongoing care services that can be tailored to your circumstances and the level of service you wish us to provide.

What documents will I receive?

This FSG is the first of several important documents you will receive from your financial adviser. If you decide to proceed with obtaining financial services from us, we will also provide you with the following:

+ Statement of Advice (SoA) – sometimes referred to as a Financial Plan.
+ Record of Further Advice (RoFA) – where the advice is of a summary nature.
+ Product Disclosure Statement (PDS) – relating specifically to recommended products and investments.

While the FSG will provide you with disclosure of the products and services available to you, the SoA will detail the personal advice you will receive. An SoA will contain the advice, the basis upon which the advice is given, full disclosure about fees, commissions and benefits payable by you and what benefits are paid to your adviser and their associates.
Where a further review is conducted and personal advice is provided, in some circumstances we are not required to provide you with an SoA for this further advice. Where this is the case, if you have not already been provided with a RoFA, you may request a copy of the RoFA from us by contacting us (on any of the contact details set out in this Guide) for a period of seven years from when the further advice was first provided to you.

How can I provide my instructions?

We are guided by your instructions and what you choose to tell us; from the preparation of the advice to our ongoing service. We encourage you to tell us as soon as your circumstances change so that we can adjust our recommendations as required.
On an on-going basis, you may contact us and provide us instructions in person by making an appointment to see us or alternatively, by phone, fax or email. Our contact details are provided on the front page of this document and in all our correspondence with you.
Where instructions are subject to tight time frames, please contact your adviser and alert them to your email, mail or fax as required.
If we receive an email instruction from your known email address, we will accept your notification as authorisation and we will action the instruction without further confirmation. However, where an instruction is to transfer funds to a third party bank account we will require verbal confirmation of this request from you prior to processing. We will do our best to action all such instructions on our receipt; however we cannot always guarantee same day processing.

How will I pay for any advice or services?

Generally, our remuneration takes the form of:

+ Fees charged at a fixed rate for services provided
+ Fees based on the value of your funds under management;
+ Upfront and ongoing commission paid to us by insurance providers (as detailed in the previous section);
+ Initial and/or ongoing commissions from product providers in relation to some financial products under an arrangement that began prior to 1 July 2013.

Details of any fees, commissions or other benefits that we, Accru Wealth Management or other associated persons are entitled to receive if you implement our recommendations in relation to a specific financial product, will be disclosed to you in your SoA or RoFA when personal advice is given.

Do you receive any remuneration, commission, fees or other benefits in relation to providing the financial services to me and how are these payments calculated?

The types of fees, commissions and other benefits that may be received by Accru Wealth Management include the following:

Service fees
We will discuss and agree our fee structure with you before we provide you with services. The types of fees you can be charged are listed below. You may be charged a combination, or part of, any of these fees.

Fees for advice
We may charge fees for the preparation, presentation and implementation of our advice. These fees will be based on your individual circumstances, the complexity involved in your situation and the time it takes to prepare personal financial advice for you. We will discuss these fees with you and gain your agreement to the fees before we provide you with advice.

Ongoing advice fees
We may charge a fee to provide ongoing portfolio reviews and/or for the provision of ongoing services.
This fee will be agreed with you and is either a set amount, or an amount based on the amount of funds under our advice, and/or the time involved in reviewing your portfolio and circumstances.

Referral fees
Accru Wealth Management does not receive any referral fees if we refer you to another business to provide you with services. Accru Wealth Management does not make any referral payments to any third party or internal business which could influence advice.

Payment methods
Our fees are either deducted from your investments directly or invoiced to you directly, or a combination of these methods.
Where it is debited from your investments it is normally referred to as the Advice Fee.
In most instances you will be able to select the method of payment that suits you best. We will discuss and agree the method of payment with you before we provide you with services.

Commissions
Accru Wealth Management does not accept any commissions for new client arrangements entered into after 1 July 2014, except for insurance commissions.
An upfront commission is a one-off payment paid by the product provider based on a percentage of the amount of funds you invest or the insurance premium you pay.
Ongoing commissions are generally monthly payments paid by the product provider based on a percentage of the amount of funds you invest and/or the insurance premium you pay. These are generally paid each month, for as long as you hold the product and while we continue to act for you.
It is important to note that commissions are not an additional cost to you and are paid by the product provider at the time you purchase the investment or insurance.
Where we receive fees for our services from you indirectly, that is through other service providers, such as platforms, we will seek your prior consent to receive fees this way.
We may also receive selling commissions when our clients participate in initial public offerings (IPO) or secondary capital raisings. However these selling commissions or fees are disclosed and fully rebated to clients who participate and pay Accru Wealth Management a fee. When advice is provided regarding these IPOs or secondary capital raisings, you can request further particulars about any commissions concerned.
Ongoing commissions (when they are paid) are not rebated, but instead retained by us to enable the provision of ongoing research and training.

Life Insurance Products
Initial and ongoing commissions from insurance providers may be received by Accru Wealth Management. These commissions are paid to Accru Wealth Management by the company that issues the product that Accru Wealth Management’s Advisers recommend to you and they are included in what you pay for the product. The commissions vary and are based on the policy cost, which is the sum of the premiums you pay and may include other fees related to the product.

The initial commission is paid in the first year by the product issuer to Accru Wealth Management. Ongoing commissions are payments paid by product issuers to Accru Wealth Management in the years after the first year.

 

Example

We recommend an insurance product to you and it is applied for and issued on 2 February 2018. The annual policy cost is $450. Accru Wealth Management may receive up to $360 (80% excl. GST) as an initial commission and may pass up to $360 to us. Assuming the policy cost stays the same each year, Accru Wealth Management may receive up to $90 pa (20% excl. GST) as an ongoing commission and may pass up to $90 pa to us.

From 2 April 2018, you decide to increase your insurance cover. The cost of this increased cover is $100. The initial commission payable to Accru Wealth Management in respect of this increase will be $80 (80% excl. GST) as the increase has occurred in 2018. The ongoing commission payable to Accru Wealth Management in respect of this increased policy cost will be $20 pa (20% excl. GST), payable in respect of the period starting from the first anniversary of the date on which you increased your insurance cover (i.e. 2 April 2019). These commissions may be passed onto us.

From 2 April 2020, you decide to increase your insurance cover again. The cost of this increased cover is $100. The initial commission payable to Accru Wealth Management in respect of this increase will be $60 (60% excl. GST). The ongoing commission payable to Accru Wealth Management in respect of this increase will be $20 pa (20% excl. GST), payable in respect of the period starting from the first anniversary of the date on which you increased your insurance cover (ie 2 April 2021). These commissions may be passed onto us.

You’ll find details of how your insurance policy cost is calculated in the relevant PDS that we provide you. Where personal advice is provided to you, you’ll also find details of the commission that Accru Wealth Management are entitled to receive if you decide to purchase a life insurance product, in your SoA or RoA.

In addition, Accru Wealth Management may receive benefits as part of the Partner Programs in the form of education, training and other support and resources to assist in the delivery of life insurance and investment product advice. Participants in the Partner Programs may pay a fee to Accru Wealth Management. Participants may be given the opportunity to provide training about their products. The total amount of fees, or the fees that may be paid by each product provider, will depend upon the commercial arrangements that may be negotiated from time to time between Accru Wealth Management and each product provider. These payments will not change the amount of the product cost payable by you.

When recommending AIA Australia Limited insurance policies we may also recommend for you to become a member of AIA’s Health & Wellbeing Program Vitality (which provides additional benefits to the policy holder).
For every AIA Vitality membership activated by a client, Accru Wealth Management receives a one-off payment of $250.
It is important to note that this payment is not an additional cost to you and is paid by the product provider at the time you purchase the insurance.

Do you receive any other other benefits in relation to providing the financial services to me?

We may also receive additional benefits such as help with marketing expenses, complimentary or subsidised attendance at conferences, and other rewards such as gift vouchers, tickets to sporting events and invitations to social events that are below $300. These benefits that are between $100 and $300 in value, and other benefits, that relate to information technology software or support provided by a product issuer or that relate to educational and training purposes, are recorded in a register which meets legislative requirements. This Register is publicly available and a copy can be provided to you for a small charge at your request.

Do any relationships or associations exist which might influence you in providing me with the financial services?

Accru Wealth Management is wholly owned by the Directors and Partners of the accountancy firm Accru Melbourne Pty Ltd.
Some product providers, who had an existing arrangement with Accru Wealth Management prior to 1 July 2013, pay a licensee commission to Accru Wealth Management based on the total funds invested in their products, insurance premiums paid for their insurance products or amount of margin loans made by Accru Wealth Management’s Authorised Representatives.
It is important to note that we do not receive any licensee commissions on new clients or new investments from 1 July 2014.
Asgard and or BT may pay up to 40% of their net administration fees to Accru Wealth Management for their investment in all investments into these platforms.
ING Direct may pay Accru Wealth Management an inbuilt trail of 0.10% p.a. commission based on the balance of your ING Direct account.

Example
We recommend you invest $100,000 in managed investments through an Asgard eWRAP Investment account and you accept the advice. This investment will incur an administration fee of $480p.a. of which the administrator pays up to $192p.a. to Accru Wealth Management.

Who are your associates and specialist advice referral partners?

Accru Wealth Management have an extensive network of business contacts and affiliates who can provide specialist services that are not part of the core licensed financial services offered by Accru Wealth Management and its financial advisers, however can be accessed or facilitated by your financial adviser. These services can include:

+ Accru Melbourne – Taxation, accounting and auditing services
+ Accru Melbourne – Business advisory and consultancy
+ Accru Wealth Management – Mortgage, loan financing and restructuring. (Provided under Accru Wealth Management’s Australian Credit License (ACL) (ASIC No 238520)
+ External legal advisory such as estate planning, wills and family law
+ External property specialists

While we may provide these other services; you should understand that these services are not provided under Accru Wealth Management’s AFSL. Accru Wealth Management does not train, support or supervise the provision of these other services and has no responsibility in relation to those services (except for mortgage and loan, financing which is provided under Accru Wealth Management’s Australian Credit License (ASIC no 238520) who are under separate arrangements explained in Accru Wealth Managements separate Credit Guide.

Our Privacy Statement

 

How do we protect your personal information?

We aim to protect and maintain the privacy, accuracy and security of the personal and financial information you give us.

Keeping this information private is very important to us. If you want to access your personal information at any time, please let us know.
Our Privacy Policy explains the main ways we protect your privacy and how we comply with the Australian Privacy Principles.

You may obtain a copy of our Privacy Policy by visiting the Accru Wealth Management website.
https://accrumelb.com.au/awm-privacy-policy/

We are required, pursuant to the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF) and its corresponding rules and regulations, to implement certain client identification processes.

We may be required to obtain information about you at the time of providing financial services to you and from time to time in order to meet our legal obligations. We have certain reporting obligations pursuant to the AML/CTF Act, and information obtained from or about you may be provided to external third parties and regulators in accordance with the requirements imposed on us.

Any Concerns

 

What do I do if I have any concerns about the advice or services I’m provided?

Accru Wealth Management is committed to providing a fair and responsible system for the handling of complaints from parties whose personal information we hold. If you have any complaints, we are committed to resolving them as quickly and as fairly as possible.

If you have a complaint or concern about the advice and or service provided to you, we encourage you to take the following steps.

Contact us about your concern. If your concern is not resolved to your satisfaction within five days, you may contact Accru Wealth Management by speaking to:

+ Complaints Manager of Accru Melbourne Pty Ltd or put your complaint in writing and send it to the address noted at the beginning of this FSG.

If your concern is not resolved, or if you are not satisfied with the decision, you may contact the Australian Financial Complaints Authority (AFC). The AFC independently and impartially resolves disputes between consumers, including some small businesses and participating financial services providers. The AFC provides an independent dispute resolution process covering complaints about financial services including; banking, credit, loans, general insurance, life insurance, financial planning, investments stock broking, managed funds and pooled superannuation trusts. You may contact the AFC by writing to:

GPO Box 3 Melbourne VIC 3001
E mail: info@afc.org.au
Website: www.afc.org.au
Phone: 1800 931 678 (free call)

The Australian Securities & Investments Commission (ASIC) is Australia’s corporate, markets and financial services regulator. ASIC contributes to maintaining Australia’s economic reputation by ensuring that Australia’s financial markets are fair and transparent, and is supported by informed investors and consumers alike. ASIC seeks to protect consumers against misleading or deceptive and unconscionable conduct affecting all financial products and services. You may contact ASIC by writing to:

Australian Securities & Investments Commission
GPO Box 9827
Your Capital City
OR
PO BOX 4000
Gippsland Mail Centre VIC 3841
WEBSITE
www.asic.gov.au
PHONE
1300 300 630

Other Information:

Accru Wealth Management has internal compensation arrangements as well as professional indemnity insurance that satisfy our legislative obligations to have arrangements in place to compensate certain persons for loss or damage they suffer from certain breaches of the Corporations Act by Accru Wealth Management or its Authorised Representatives. The Professional Indemnity Insurance covers out obligations to you for advice provided by our Authorised Representatives whilst they were authorised by Accru Wealth Management, even if they are no longer authorised by us.

Individual Advisor Guides:

Financial Services Guide – James Pastellas

Financial Services Guide – Richard Addison

Financial Services Guide – Tom Harris

Financial Services Guide – James Grindrod

Financial Services Guide – Craig Smith

Financial Services Guide – Katherine Rhodes