Financial Services Guide: Part One

NEO Financial Solutions Pty Ltd ABN 64 141 607 098 (NEOFS) holds an Australian Financial Services Licence No.385845 (AFSL) issued by the Australian Securities and Investment Commission.

NEOFS conducts business through a network of financial advisers who are appointed as Authorised Representatives under NEOFS’s AFSL. Where NEOFS has appointed a corporate entity as an Authorised Representative, employees of that company who give advice will also be authorised by NEOFS.

Your financial adviser will be the Authorised Representative listed in Part Two of this FSG. NEOFS’s financial advisers act for you and not for any life insurance company, fund manager or bank.

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

NEOFS can provide advice and strategies on the following, but not limited to:

• Savings and wealth creation
• Financial management
• Investment
• Superannuation
• Pre-Retirement and Retirement
• Self-managed superannuation funds
• Financial protection and insurance
• Estate planning
• Centrelink
• Salary packaging
• Business succession
• Finance and gearing

• 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 a Statement of Advice (SOA); and
• Implementation of your strategy.

• Revision of your personal and financial situation at suitable agreed intervals;
• Discussion of whether our recommendations remain appropriate in light of any personal or legislative environment changes; and
• 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.

All fees are payable to Neo Financial Services Pty Ltd.

NEOFS and your financial adviser can be paid by fees or commissions, or a combination, for both the initial and ongoing service. Your financial adviser will discuss and agree both the rate and method of payment with you before any financial services are provided. Where you receive personal advice, your SOA will detail all remuneration and other benefits associated with the advice.

Fees

Fees may be either a fixed rate fee or based on an hourly rate or a combination of both, and will reflect the complexity of your personal situation & the time and effort in our work for you.

Commissions

NEOFS may be paid initial commissions by product issuers in association with the placement of the recommended products and ongoing commissions may be paid for as long as you hold the product. Commissions may vary depending on the circumstances, however may be up to 5% initial and 1% ongoing of the amount for investment products and up to 125% initial and 40% ongoing of the premium for life insurance products. For example, for an investment of $10,000 in a product whose product issuer pays 5%, NEOFS will receive an initial amount of $500.

Referral Fees

If a third party referred you to us, we may forward referral payments or commissions to the third party. These amounts do not involve additional costs and will be disclosed in your SOA.

All fees and commissions are subject to GST.

All fees and commissions disclosed in the SOA are payable to NEOFS. NEOFS will retain up to 20% and forward the balance to your financial adviser. For example, if NEOFS receives $100, NEOFS will retain up to $20 and pay up to $80 to your financial adviser.

Your financial adviser may also pay NEOFS a fixed monthly service fee of up to $550.

NEOFS has relationships with a number of Australia’s leading life risk and wealth management product providers. These companies provide sponsorships, volume payments or marketing payments. NEOFS may also be entitled to receive volume rebates from product providers based on total amounts invested in their products or platforms.

NEOFS has arrangements with the following product providers:

• Colonial First State;
• AXA;
• BT;
• IOOF – formerly Australian Skandia Limited;
• Macquarie Wrap Solutions; and
• TOWER Australia Limited

These amounts are paid to NEOFS by the product provider from the amounts it is entitled to receive, and is not an extra charge to you if you elect to use in these products. If these arrangements are applicable to the advice given to you they are disclosed precisely in your SOA.

Some product providers may also give NEOFS or your financial adviser non commission benefits such as entertainment or sponsorship. Both NEOFS and your financial adviser maintain a Register in line with industry standards to document any alternative forms of payment received. These registers are publicly available and must be provided within 7 days after request.

NEOFS does not have any existing relationships with product providers; your financial adviser is able to provide advice on products from a wide range of product providers.

You may specify how you would like to give us instructions. For example you may nominate to instruct us to act by telephone, fax or email but in all cases written confirmation of your instructions must be received.

Your financial adviser will maintain a record of your personal information including details of your objectives, financial situation and any recommendations made to you. If you wish to examine your file please ask your financial adviser and they will make arrangements for you to do so.

As a financial service provider, we have an obligation under the Anti-Money Laundering and Counter-Terrorism Finance Act to verify your identity and the source of any funds dealt with on your behalf. This means we may require certain identification documentation i.e. a current drivers licence or passport. We will need to retain copies of this information.

NEOFS and your financial adviser are committed to complying with a privacy policy to protect the privacy and security of your personal information. Please ask your financial adviser if you wish to obtain a copy of our Privacy Policy or alternatively, download a copy from NEOFS’s website at www.neofs.com.au.

NEO Financial Solutions Pty Ltd has in place Professional Indemnity (PI) Insurance cover in accordance with s. 912B of the Corporations Act 2001. Our PI insurance, subject to terms and conditions, provides indemnity up to our sum insured for NEOFS and our Authorised Representatives and employees in respect to the services provides under our AFS Licence. Further, this PI insurance will continue to provide coverage for any Authorised Representative who no longer works for NEOFS for the financial services provides whilst appointed by NEOFS.

If you have any complaints about the services provided, please take the following steps:

• Contact your financial adviser and tell them about your complaint.
• If your complaint is not satisfactorily resolved within 3 working days, please contact the NEOFS Complaints Officer by telephone or in writing on the below listed contact details. NEO will try to resolve your complaint quickly and fairly.
• If you do not get a satisfactory outcome, you have the right to take your complaint to the Financial Ombudsman Service, GPO Box 3, Melbourne Vic 3001, telephone toll free 1300 780 808. NEO is a member of this Service.

Your financial adviser will maintain a record of your personal information including details of your objectives, financial situation and any recommendations made to you. If you wish to examine your file please ask your financial adviser and they will make arrangements for you to do so.

As a financial service provider, we have an obligation under the Anti-Money Laundering and Counter-Terrorism Finance Act to verify your identity and the source of any funds dealt with on your behalf. This means we may require certain identification documentation i.e. a current drivers licence or passport. We will need to retain copies of this information.

NEOFS and your financial adviser are committed to complying with a privacy policy to protect the privacy and security of your personal information. Please ask your financial adviser if you wish to obtain a copy of our Privacy Policy or alternatively, download a copy from NEOFS’s website at www.neofs.com.au.