Important documents you can expect to receive

When your adviser provides personal financial advice for the first time, you will generally be given a Statement of Advice (“SoA”). The SoA sets out our advice, the basis on which it is given, the cost of the advice, and information about any associations or relationships that could influence the advice. If you require further advice at a later time, providing your circumstances have not changed significantly since your previous SoA, your adviser may be able to provide the further advice verbally or via a shorter Record of Advice (“RoA”). If you are given verbal advice, your adviser will document the discussion and a copy of this record can be made available to you on request. If you are given further advice and your circumstances have changed significantly since your previous SoA, you will generally be given another SoA.

To help you make an informed decision about acquiring a financial product, you will generally be given a Product Disclosure Statement (“PDS”) which outlines the product features and costs in detail. In certain circumstances, there is no requirement to provide a PDS (including, for example, where one has already been provided).

If you ask your adviser to undertake a transaction without receiving advice from them, you may be given a letter confirming your instructions and disclosing any costs payable by you in relation to that transaction.

About us

LFG Financial Services is registered in Australia and holds an Australian Financial Services Licence (“AFSL”) No. 227096 issued by the Australian Securities and Investment Commission (“ASIC”). LFGFS conducts business through financial advisers appointed as Authorised Representatives under its AFSL.

Financial Services and Products Available

LFGFS’s financial advisers can offer a range of insurance, investment, superannuation and retirement strategies and products. LFGFS maintains an Approved Products List (“APL”) containing financial products that your adviser can recommend, and which have been researched by one or more external Research houses. A copy of the APL can be supplied to you upon request.

LFGFS’s financial advisers act for you and not for any life insurance company, fund manager or bank.

What advice is available to you

LFGFS and your adviser can provide advice and strategies on the following, but not limited to:

• Savings, wealth creation & investment

• Superannuation & Retirement planning

• Centrelink

• Financial management

• Estate planning

• Asset protection & insurance

• Self-managed superannuation

• Business succession

Initial services that may be provided

The initial services that may be provided include:

• Identification of your financial goals and objectives

• Collection and analysis of your existing personal and financial situation

• Investigation and consideration of possible financial planning strategies and products that will assist you to meet your goals and objectives

• Presentation of our recommendations, usually in an SoA

• Implementation of your strategy

Ongoing services that may be provided

The ongoing services that may be provided include:

• Revision of your personal and financial situation at suitable, agreed intervals

• Discussion of whether our recommendations remain appropriate, should your personal circumstances or the legislative environment change

• Implementation of any recommendations made as part of our ongoing service to you

You and your financial adviser may agree in writing on a more extensive ongoing service.

How we are paid

We receive remuneration from:

• Advice and service fees paid by you (fee for service)

• Commissions from insurance providers

• Other payments and benefits as outlined above under the heading ‘Other payment or benefits’

As the licensee, LFGFS receives all fees and commissions paid upon the provision of services by your adviser and under contract deducts a Licensee fee from the amounts received. LFGFS then forwards the residual onto your adviser’s practice who will then meet the costs of operating their business, which may include payment of a salary, bonus and/or distributions to your adviser.

Advice and service fees paid by you Before providing personal advice, your adviser will discuss and agree both the fee and payment options with you. These fees will be based on your individual circumstances, the complexity of your situation and the time it takes to prepare your advice. Details of all remuneration and other benefits associated with the advice being provided will also be disclosed in the written advice provided to you. Any and all fees and commissions will be discussed and agreed with you prior to commencing any work. The initial meeting may be at no charge. We generally charge fixed price fees for initial advice and implementation of the advice up to

$15,000 but it could be more depending upon complexity (and will be specifically quoted and agreed by you in advance). We also provide annual service packages on either a 12-month or an ongoing basis with fees generally in the range of $1,000 to $25,000 per annum.

We may charge an hourly rate for the advice we provide up to $500 per hour.

All fees are exclusive of GST.

You will be invoiced directly for these fees and may elect to pay LFGFS directly or have these fees deducted from your investments.

Your adviser may charge other fees for the ad hoc provision of advice or services including if you instruct your adviser to complete a transaction such as buying or selling specific financial products. This can be a flat fee, an hourly rate (up to $500 per hour excluding GST) or a combination of both.

Fees can usually be paid by invoice, direct debit, deducted from a financial product, or a combination of two or more of these methods.

Commissions from insurance providers

Initial commission may be up to 66% of the initial annual premium. Ongoing commission may be up to 50% of the ongoing annual premium.

Should you cancel an insurance contract within the first two years your adviser reserves the right to invoice you an amount equal to the costs they have incurred as a result of the provision of financial services to you.

All commissions are exclusive of GST.

For insurance products purchased prior to 1 January 2018, we may continue to be paid commissions in the same manner as what would have previously been advised to you at the time of obtaining the product(s).

Where possible we may agree to refuse to receive these commissions, rebate these commissions to your account, or use the commissions to offset some or all of your agreed fee for service.

Referral Partners

Your adviser may have referral relationships with third parties. These third parties may include accountants, mortgage brokers, general insurance brokers, solicitors and other third parties who specialise in a specific field.

If you are referred to your adviser by one of these third parties, that third party may receive a referral fee, commission or non-monetary benefit. These amounts do not involve additional costs to you and will be disclosed in your SoA. All Fees and Commissions are subject to GST.

Where you are referred to a third party (including to other financial advisers) by your adviser, your adviser does not receive any payment for that referral. We also do not approve or endorse their advice. You must assess the merits of their advice in the light of your own circumstances and objectives.

Other payments or benefits

We keep a register of any benefits received by advisers of between $100 to $300. By law, your adviser is not permitted to receive benefits in excess of $300 per year from a product issuer. Further, LFGFS keeps a register of any other non-monetary benefits your adviser may receive in relation to education, training, technology support or software that is relevant to the provision of financial advice. If you would like a copy of either register, please ask your adviser and one will be made available to you.

LFGFS has no relationships or association with issuers of financial products

LFGFS and your financial adviser do not have any relationships nor associations with any suppliers of products that might be recommended, other than in relation to the direct supply of their products.

Information required to provide personal advice

Your financial adviser will complete a Client Questionnaire or Fact Find with you, which will record your personal objectives, lifestyle goals, details of your current financial situation and any other relevant information. The information obtained will be assessed by your financial adviser to assist them in providing appropriate advice. You may withhold personal information, but this might compromise the appropriateness of the advice you receive.

You should carefully read any warnings contained in the client questionnaire and SoA before making any decision relating to a financial strategy or product.

How to give instructions about your financial products

You may specify how you would like to give us instructions. For example, you may nominate to instruct us to act by telephone, fax, email or other.

Information maintained in your file – your right to access it

Your financial adviser will maintain a record of your personal information including details of your objectives, financial situation, any recommendations made to you and Tax File Numbers if they are specifically needed to be passed to superannuation funds, investment and fund managers or insurers.

If you wish to examine your file, please ask your financial adviser and they will make arrangements for you to do so.

LFGFS and your financial adviser are committed to complying with a privacy policy to protect the privacy and security of your personal information.

Professional Indemnity Insurance

LFGFS holds Professional Indemnity (“PI”) Insurance, which covers claims against us for errors or mistakes relating to our financial planning services. This insurance meets the requirements of the Corporations Act and covers the serviceFull Widths provided by your adviser for advice provided whilst they are authorised by LFGFS.

If you have a Complaint

If you have a complaint about the financial services provided to you, your complaint should be directed to your adviser in the first instance. You can also raise your complaint at any time by contacting us at:

By email: [email protected]

Or in writing to: LFG Advice Complaints PO Box 1766 Sydney NSW 2001

We will investigate and endeavour to resolve your compliant quickly and fairly.

If your complaint has not been resolved to your satisfaction within 30 days, you may refer the matter to the Australian Financial Complaints Authority (AFCA). AFCA is an external dispute resolution scheme which provides fair and independent financial services complaint resolution that is free to consumers. LFGFS is a member of this scheme.

AFCA’s contact details are:

Email: [email protected]

Website: www.afca.org.au

Telephone: 1800 931 678 (free call)

In writing to: Australian Financial Complaints Authority GPO Box 3 Melbourne Vic 3001

Your privacy

Your personal information will be collected for the primary purpose of providing you with the services described in this FSG. If you do not provide the personal information requested, we may be unable to provide you with the financial services you have requested.

As a financial service provider, we have an obligation under the Anti-Money Laundering and CounterTerrorism Finance Act 2006 (Cth) to verify your identity and the source of any funds. This means that we will ask you to present identification documents such as your passport or driver’s licence. We will also retain copies of this information.

In connection with providing our services to you, we may disclose information about you to our Authorised Representatives and to other professionals, insurance providers, superannuation trustees, product issuers, auditors and our service providers. Your personal information will be handled in accordance with our Privacy Policy which is provided below.