Licence status and conditions
Affiliated Insurance Brokers Limited, FSP34022, Affiliated Insurance Brokers (Waikato) Limited, FSP770973, and Affiliated Insurance Brokers (Auckland) Limited, FSP1006477, (we, our) hold financial advice provider licences, issued by the Financial Markets Authority, to provide financial advice.
It is a condition of our licence that we, together with any person giving advice on our behalf, can only provide advice on general insurance products.
Nature and scope of financial advice service
We engage financial advisers to provide financial advice on general insurance products on our behalf.
These are policies that insure your personal or business assets or protect you or your business assets, liabilities and business income.
We are not able to provide advice on personal income protection or investment policies but are able to refer you to associates who are licensed to provide advice on such products.
We have access to most insurance markets in New Zealand (excluding direct Insurers) along with access to overseas markets as required.
A list of the types of general insurance we can provide financial advice on and the product providers who provide such insurance products can be found here and here.
Fees, expenses or other amounts payable
Our remuneration is paid by the insurance providers that we place the insurance policy with on your behalf, by way of commission. However, we may charge a fee for the advice given to you and for implementing that advice. If a fee is to be charged it will be based on the amount of work and time required to provide and implement our advice and will be shown on our invoice to you, payable on payment of your premium. The amount of any fee will be discussed with you and disclosed either at the time we know the scope and nature of the advice required or when we provide our advice to you.
Premium funding
Premium funding products enable you to pay the insurance premium over the term of your policy by instalments rather than as one amount. Premium funders charge interest, and they take a power of attorney over your insurance policy, this means they have the ability to cancel your insurance policy if you fail to pay an instalment.
We have facilities with several premium funders and if you enter into such an arrangement the premium funder may pay us a commission as a percentage of the amount they fund. The % amount of this commission, will be disclosed to you when we know the scope and nature of the advice required and whether you intend to utilise the services of a particular premium funder. Commission will be paid to us directly from the premium funder.
We (or our shareholders) own Chartwell Premium Funding Limited (CPF) and Chartwell Premium Funding (Waikato) Limited, premium funding companies. These companies may fund your premium allowing you to spread the payments over the terms of your policy.
Conflicts of interest and commissions or other incentives
Affiliated Insurance Brokers Limited, Affiliated Insurance Brokers (Waikato) Limited and Affiliated Insurance Brokers (Auckland) Limited will receive commission from the insurance companies on whose policies we give advice. If you decide to take out a policy, the insurer will pay us commission based on the premium that you pay.
We are a member of Steadfast NZ Limited (Steadfast). Steadfast supplies technology platforms, management, marketing, professional, technical, and buying benefits and services to support us in providing our financial advice services.
Steadfast has arrangements with insurance companies under which Steadfast receives a professional services fee of up to 1.5% of the premium paid for each policy arranged by us with those insurers. Steadfast may also receive a fee of 0.5% of any amount a customer has funded through a premium funder. These payments are used to operate Steadfast. We will receive a proportion of the professional services fee paid to Steadfast, being 35% of that fee. This will be paid to us by Steadfast at the end of each financial year.
A financial adviser may have a conflict of interest in circumstances where financial advice has been provided to two clients who later have a dispute, including in respect of liability. In this instance the adviser would clearly disclose the conflict of interest to the clients and would refer one of these clients to another of our financial advisers for further advice and assistance.
We manage all conflicts of interest, ensuring our financial advisers prioritise your interests above their own, by following an advice process that ensures our recommendations are made on the basis of your needs and circumstances. All of our financial advisers complete training to understand and manage conflicts of interest. We maintain a register of conflicts of interests and any gifts and other incentives that we may receive. We review our compliance programme annually.
Duties
Affiliated Insurance Brokers Limited, Affiliated Insurance Brokers (Waikato) Limited and Affiliated Insurance Brokers (Auckland) Limited and our financial advisers are bound by the following duties under the Financial Markets Conduct Act 2013 to:
Affiliated Insurance Brokers Limited, FSP34022, Affiliated Insurance Brokers (Waikato) Limited, FSP770973, and Affiliated Insurance Brokers (Auckland) Limited, FSP1006477, (we, our) hold financial advice provider licences, issued by the Financial Markets Authority, to provide financial advice.
It is a condition of our licence that we, together with any person giving advice on our behalf, can only provide advice on general insurance products.
Nature and scope of financial advice service
We engage financial advisers to provide financial advice on general insurance products on our behalf.
These are policies that insure your personal or business assets or protect you or your business assets, liabilities and business income.
We are not able to provide advice on personal income protection or investment policies but are able to refer you to associates who are licensed to provide advice on such products.
We have access to most insurance markets in New Zealand (excluding direct Insurers) along with access to overseas markets as required.
A list of the types of general insurance we can provide financial advice on and the product providers who provide such insurance products can be found here and here.
Fees, expenses or other amounts payable
Our remuneration is paid by the insurance providers that we place the insurance policy with on your behalf, by way of commission. However, we may charge a fee for the advice given to you and for implementing that advice. If a fee is to be charged it will be based on the amount of work and time required to provide and implement our advice and will be shown on our invoice to you, payable on payment of your premium. The amount of any fee will be discussed with you and disclosed either at the time we know the scope and nature of the advice required or when we provide our advice to you.
Premium funding
Premium funding products enable you to pay the insurance premium over the term of your policy by instalments rather than as one amount. Premium funders charge interest, and they take a power of attorney over your insurance policy, this means they have the ability to cancel your insurance policy if you fail to pay an instalment.
We have facilities with several premium funders and if you enter into such an arrangement the premium funder may pay us a commission as a percentage of the amount they fund. The % amount of this commission, will be disclosed to you when we know the scope and nature of the advice required and whether you intend to utilise the services of a particular premium funder. Commission will be paid to us directly from the premium funder.
We (or our shareholders) own Chartwell Premium Funding Limited (CPF) and Chartwell Premium Funding (Waikato) Limited, premium funding companies. These companies may fund your premium allowing you to spread the payments over the terms of your policy.
Conflicts of interest and commissions or other incentives
Affiliated Insurance Brokers Limited, Affiliated Insurance Brokers (Waikato) Limited and Affiliated Insurance Brokers (Auckland) Limited will receive commission from the insurance companies on whose policies we give advice. If you decide to take out a policy, the insurer will pay us commission based on the premium that you pay.
We are a member of Steadfast NZ Limited (Steadfast). Steadfast supplies technology platforms, management, marketing, professional, technical, and buying benefits and services to support us in providing our financial advice services.
Steadfast has arrangements with insurance companies under which Steadfast receives a professional services fee of up to 1.5% of the premium paid for each policy arranged by us with those insurers. Steadfast may also receive a fee of 0.5% of any amount a customer has funded through a premium funder. These payments are used to operate Steadfast. We will receive a proportion of the professional services fee paid to Steadfast, being 35% of that fee. This will be paid to us by Steadfast at the end of each financial year.
A financial adviser may have a conflict of interest in circumstances where financial advice has been provided to two clients who later have a dispute, including in respect of liability. In this instance the adviser would clearly disclose the conflict of interest to the clients and would refer one of these clients to another of our financial advisers for further advice and assistance.
We manage all conflicts of interest, ensuring our financial advisers prioritise your interests above their own, by following an advice process that ensures our recommendations are made on the basis of your needs and circumstances. All of our financial advisers complete training to understand and manage conflicts of interest. We maintain a register of conflicts of interests and any gifts and other incentives that we may receive. We review our compliance programme annually.
Duties
Affiliated Insurance Brokers Limited, Affiliated Insurance Brokers (Waikato) Limited and Affiliated Insurance Brokers (Auckland) Limited and our financial advisers are bound by the following duties under the Financial Markets Conduct Act 2013 to:
- meet the standards of competence, knowledge, and skill set out in the Code of Professional Conduct for Financial Advice Services (Code of Conduct), which form part of the wider regulatory regime for financial advice and ensure we have the expertise necessary to provide you with advice; and
- give priority to your interests by taking all reasonable steps to ensure that the advice given to you is not materially influenced by our own interests or the interests of any other person connected with the giving of advice; and
- exercise care, diligence, and skill that a prudent person engaged in the occupation of giving related financial advice would in the same circumstances; and
- meet the standards of ethical behaviour, conduct, and client care set out in the Code of Conduct, to treat you as we should and to provide you with suitable advice.
