This Financial Services Guide (FSG) is dated 3 July 2015 and is provided to you by Sanlam Private Wealth Pty Ltd (Sanlam, we, our, us) to inform you of the financial services provided by us and to comply with our obligations as the holder of an Australian Financial Services Licence (AFS Licence No. 337927).

This FSG is meant to assist you to decide whether to use our services and to explain:

  • who we are;
  • what financial services we provide and the products to which those services relate;
  • what our responsibilities are and what type of advice we give;
  • how you can instruct us;
  • what you can expect to pay for the financial services;
  • what remuneration and other benefits may be paid to us, our employees or others;
  • what to do if you have a complaint, and how it will be dealt with;
  • for what purpose we use your contact data; and
  • how you can contact us.

This FSG contains only general information about the services we offer. If you still have any questions after reading this FSG, please contact us. Our contact details are listed at the end of this document.

What other disclosure documents and statements will I receive?

Although it is not our policy to provide personal advice, if we do provide you with personal advice or further assistance in selecting products or services having regard to your personal and financial circumstances, needs or objectives, we will, where we are required to do so under the law, issue you with a Statement of Advice (SoA) that will set out the personal advice we have given you, including any recommendations we offer along with our rationale for our recommendations and information about any fees, commissions, associations or relationships which might influence the provision of that advice.

If we provide to you a SoA, we may provide further advice to you after we have given you a SoA. If we have not provided you with a record of the further advice you may request, either verbally or in writing, a record of further advice within 7 years (or as prescribed by law) of us providing the further advice.

Generally, where we arrange for the issue of a financial product to you, you will receive a Product Disclosure Statement (PDS) or other relevant disclosure documents that include information about the product so that you can make an informed decision whether to acquire the product. It would include any relevant terms, significant risks and costs associated with the supply of that financial product.

How you can instruct us and your obligations?

We will accept order instructions via telephone, email or facsimile.

You must check and confirm with us that orders sent via fax or email, have in fact been received by us.

You must review any confirmation or statement we send to you immediately upon receipt to ensure its accuracy and report any discrepancies to us.

If you have opened a Managed Discretionary Account with Calibre you will be able to contact us by telephone, email or facsimile to provide instructions relating to your portfolio assets or any corporate actions.

Who are we and what services are we authorised to provide?

Sanlam holds a current AFS Licence No. 337927 which authorises us to provide general and personal advice on and deal in the following classes of financial products:

  • deposit and payment products;
  • derivatives;
  • foreign exchange contracts;
  • government debentures, stocks and bonds;
  • managed investment schemes including IDPS;
  • MDA Services;
  • securities; and
  • standard margin lending facilities

We are also authorised to issue interests in our own managed investment schemes to wholesale clients and issue MDA Services to retail and wholesale clients.

We act on our own behalf and under our own AFS Licence when we provide services to you. We can offer our services to both wholesale and retail clients.

Sanlam is an investment and financial services house with extensive experience in servicing the needs of both private investors and corporate clients. Sanlam has an extensive suite of products to service the needs of private clients and institutional investors.

The mission of Sanlam is to provide honest, timely, objective and accurate advice to help our clients achieve long term financial security and accumulate wealth in an efficient and timely manner. This service is built on personal trust and is based on solid long-term relationships.

Sanlam provides dealing and cash management services, MDA Services and general financial advice to its clients.

What information do we offer to you, as our client?

We can offer you factual market data and information, including general advice, regarding those products and services our AFS Licence permits us to provide. The products on which we may provide this information include:

  • Securities and Exchange-Traded Options traded on local and international exchanges;
  • Futures and Options on Futures traded on local and international exchanges;
  • Over-the-counter derivatives such as Contracts for Difference (CFDs);
  • Over-the-counter foreign exchange contracts such as Margin FX and FX CFDs;
  • Managed Funds;
  • Margin Lending Facilities and Cash Management Trusts; and
  • Client education seminars (product awareness and trading skills).

What are our responsibilities and what type of advice do we give?

We provide general advice and information regarding financial products and services (other than under Sanlam’s managed discretionary account service, further details below) that can be dealt through us. This information or advice does not take into account your personal and financial circumstances, needs and objectives and because of that you should, before acting on the advice, consider the appropriateness of the advice having regard to your personal and financial circumstances, needs and objectives.

It should be noted that if you open an account with us you will also be requested to provide some information relating to your financial circumstances and risk profile. This information is collected so that we can:

  • receive some reassurance that you will be able to finance any trading that you enter into and that your attitude to risk is comparable to that of the financial products you intend to trade; and
  • identify who you are as required by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AMLCTF Act 2006).

What is a MDA Service?

A MDA service is a managed investment scheme and a facility for making a financial investment that has the following key features:

  • you give to the MDA Operator, i.e. Sanlam, access to money or money’s worth (client contributions);
  • Sanlam has the discretion to invest in financial products using your contributions without prior reference to you for each transaction;
  • you agree with Sanlam that assets derived directly or indirectly from your contributions are managed as a discrete portfolio belonging to you; and
  • you have an understanding that you will derive benefits from the MDA service, including benefits from Sanlam’s expertise in investment selection and other services offered as part of the MDA service.

Pursuant to ASIC Class Order 04/194, MDA Operators, such as Sanlam, have been granted relief, subject to a number of conditions, from the Managed Investment Scheme legislation contained in Chapter 5C of the Corporations Act and the product disclosure provisions in Chapter 6D and in Part 7.9 of the Corporations Act. This FSG complies with the conditions set out in the ASIC Class Order and the conditions of ASIC relief.

On an annual basis your MDA Contract and the Investment Program will be reviewed by the MDA Manager and/or Sanlam to ensure that it is still suitable for your relevant personal circumstances.

What is the MDA Contract?

In order to provide you with MDA services you need to open an MDA. To open an MDA you must enter into an “MDA Contract” with Sanlam before the MDA service can be provided.

The MDA Contract will include an Investment Program that is prepared in accordance with the requirements in Division 3 of Part 7.7 of the Corporations Act and the Investment Program will contain the following information:

  • the nature and scope of the discretions Sanlam will be authorised and required to exercise under the MDA Contract and any investment strategy that is to be applied in exercising those discretions;
  • any significant risks associated with the MDA Contract;
  • the basis on which Sanlam considers the MDA Contract to be suitable for you; and
  • warnings about the MDA Contract, such as:
    – it may cease to be suitable for you if your relevant circumstances change; and
    – it may not be suitable for you if you have provided Sanlam with limited or inaccurate personal information about your relevant circumstances.

Who holds the legal title to your portfolio of assets?

You open an MDA in your own name or the name of a company or trust you control and thus, the entity/ person that owns the MDA holds the legal title to the portfolio of assets. The MDA service provided by Sanlam does not include custodial or depository services.

You will be required to open either a cash management account and/or trading account with a Third Party Service Provider and deposit funds in such account or link an existing cash management account or bank account (that you have opened with a third party service provider) to your trading account to facilitate any trading you do on your account. You will retain legal title over any cash management account, bank account or trading account at all times however your funds and assets will be held with the Third Party Service Provider in either a Clients’ Segregated Account or a Clients’ Trust Account. The Third Party Service Provider which may or may not have been nominated by Sanlam provides dealing services to you (under its own AFS Licence), which includes execution and clearing services and holding client funds.

Risk Disclosure

There are significant risks associated with an investment via an MDA, of which not all can be outlined.Investment via the MDA may not be suitable for all investors. There can be no assurance that the MDA will achieve its investment objectives. Each prospective investor should carefully review the MDA Contract and carefully consider the risks before deciding to invest. Accordingly, in evaluating the merits and suitability of an investment in the MDA, careful consideration should be given by prospective investors to the risk factors some of which are summarised below:

  • General Economic Conditions and Market Risks – The MDA’s operating and financial performance may be influenced by a variety of general domestic and international economic factors and business conditions which are outside the control of the MDA Operator and the MDA Manager. These include changes in the inflation rate, commodities prices, exchange rates, interest rates, the government and government fiscal, monetary and regulatory policy, natural disaster and acts of terrorism.
  • Industry Risk – There are a number of industry risk factors that may affect the future operational performance of the MDA. These factors are outside the control of the MDA Operator and the MDA Manager. Such factors include increased regulatory and compliance costs and variations in legislation and government policies generally.
  • Financial Market Volatility – A fall in global or Australian financial markets or the rapid change in the value of the Australian dollar against other major currencies may discourage investors from investing in financial markets. This may have a negative effect or a positive result on the price of the financial products in the MDA, however these factors are taken into account when taking a trade.
  • Liquidity Risk – The MDA may invest in markets that are volatile and which may become illiquid. Accordingly, it may be impossible (in the event of trading halts) or expensive for Sanlam to liquidate positions against which the market is moving. Alternatively, it may not be possible in certain circumstances for a position to be initiated or liquidated promptly (in the event of insufficient trading activity in the relevant financial product).
  • Exchange Rate Risk – Investment in a MDA must be converted to Australian Dollars. Accordingly, investors other than Australian nationals should be aware that exchange rate fluctuations could cause the value of the investment to diminish or increase. In addition, the price of any financial products traded on international markets and, therefore, the potential profit and loss therein, may be affected by any variance in the foreign exchange rate between the time the order is placed and the time it is liquidated, offset or exercised.
  • Diversification – the MDA may be less diversified than portfolios operated by other investment managers, as the MDA is likely to be concentrated in a limited number of financial products, to maximize the investment strategy. The fundamental and technical performance of a financial product and its associated factors are taken into consideration when trading and investing.
  • Size of MDA – The size of the MDA will determine the allowed diversity and risk profile of the MDA. Effective risk management depends on a range of factors, including insurance of these positions with put or call options and other factors, including a defined and successful Investment Program.
  • The MDA Operator and MDA Manager – The profitability of the MDA is dependent on the MDA Operator’s and MDA Manager’s successful implementation of the investment strategy set out in the Investment Program. There can be no guarantee that the investment strategy will be realised.
  • Tax Considerations for Investors – There may be tax implications arising from the receipt of profit from the MDA. Applicants should carefully consider these tax implications and obtain advice from an accountant or other professional tax adviser in relation to the application of tax legislation.
  • No guarantee can be given in respect of the future earnings of the MDA or the capital appreciation of your investments. The price of investments that the MDA Manager has purchased in the MDA can fall as well as rise over time. Further, no assurance can be given that the strategies employed by the MDA Operator or the MDA Manager in the past to achieve attractive returns will continue to be successful, or that the return will be similar to that achieved in the past.
  • Sanlam makes no representation as to any return that investors will earn via the MDA and there can be no assurance that the target performance information, set out in the Investment Program, will be in any respect indicative of how the MDA will perform (either in terms of profitability or low correlation with other investments) in the future.
  • The performance of the MDA will be affected by charges relating to the investments. Typically, high portfolio turnover may result in correspondingly high transaction costs and the exact amount of brokerage and related transaction costs that will be incurred will depend upon a number of factors, including the nature and
    frequency of the market opportunities presented, the size of transactions and the transaction rates in effect from time-to-time. Refer to information in the Disclosure of Fees and Commissions outlined in the Statement of Advice – Investment Program.
  • As MDA investing is not carried out on a ‘‘pooled’’ basis, but rather is separated as discrete portfolios, individual account balances and portfolio valuations may vary substantially in comparison to other MDAs.
  • Inaccurate and incomplete relevant personal information provided by you may result in investments in financial products that are not suitable to your needs.

Details of Associations or Relationships

Sanlam has a relationship with providers of execution, clearing and settlement services and portfolio administration services. These relationships in no way influence the provision of financial services by Sanlam to you.

The costs, remuneration and other benefits that may be received by us, our employees and others?

The information in this section is subject to change and does not include information in relation to taxes or duties that you may be required to pay in relation to an investment. Unless otherwise stated, all fees, charges, commissions and benefits disclosed in this FSG are exclusive of the Goods and Services Tax (GST).

Sanlam (through Third Party Service Providers) will arrange, as authorised by you, for brokerage/commissions/transaction fees to be debited from your account when a transaction has been completed in consideration for services rendered. The amount of commission can differ greatly depending on the services provided (ie. ranging from execution only services to advisory and dealing services). Generally, the commission may be charged on a per trade basis or on a cash under management basis. The following ranges are an indication of the brokerage/commissions/ transaction fees that may be charged:

Per Trade Basis

Product Minimum Commission Maximum Commission
Equities $19 per trade. 2% of trade value
Options $7.50 per trade $100 per trade
Futures $7.50 per trade $50 per trade
Managed Funds 0.25% of funds invested 2% of funds invested

Cash under Management Basis

Product Minimum Commission Maximum Commission
Management Fees 0.1% of funds under
management
0.75% of funds under
management
Performance Fees 0% 20% of profit generated during
the reporting period*
Ongoing Advice Fees $0 per annum $70 per annum

* The reporting period is defined in the MDA Contract and can be either monthly or quarterly.

If you have opened a Managed Discretionary Account (MDA) with Sanlam then you may be subject to the following fees:

  • Brokerage/ Commissions/ Transaction Fees charged by the Third Party Service Provider; and
  • MDA Fees which are charged on Cash under Management Basis (refer to above table for further details) by Sanlam.

These rates are indicative rates only as the MDA Fee structure is different for different MDA Models. The actual fees will be disclosed in your MDA Contract.

The actual brokerage, commissions, transaction fees and charges payable will depend upon the relevant service provided by Sanlam. Sanlam will include full details of commission payable by you in the Client Agreement or MDA Contract (as applicable) entered into between Sanlam and you.

Included within the brokerage, commissions and transaction fees will be any administration or agents’ execution fees. In addition to these, Sanlam may require you to reimburse it for any fees levied on Sanlam by a market operator or clearing and settlement facility in respect of transactions entered into by Sanlam for you.

Our employees may, if authorised by you, be remunerated on a commission basis for the services provided to you. Their remuneration is included in the fees discussed above.

Where your business has been referred to Sanlam or your trade instructions require the use of a third party, Sanlam may be required to share a percentage of the fees or other charges with other parties, as disclosed and authorised by you in the Client Agreement or MDA Contract (as applicable) entered into between Sanlam and you.

If you have a complaint, how it will be dealt with?

If you wish to make a complaint, the Compliance Manager can be contacted on (03) 8640 5508 or by email compliance@privatewealth.sanlam.com.au..

Sanlam has a formalised client complaint resolution procedure. All complaints are reviewed and investigated by our Compliance Manager. If you make a complaint, our first response will be to contact you to discuss the complaint and to register a formal record of such complaint. We will try to resolve your complaint quickly and fairly.

If, despite our best efforts, you believe your complaint has not been satisfactorily dealt with, we offer the use of an independent industry arbiter, namely, the Financial Ombudsman Service (FOS). Sanlam has agreed not to contest a final resolution from FOS.

You can contact FOS by writing to:

Financial Ombudsman Service

GPO Box 3
Melbourne VIC 3001
Toll Free: 1300 780 808
Facsimile: (03) 9613 6399
Website: www.fos.org.au

In accordance with Regulatory Guide RG126 and Section 912B of the Corporations Act 2001, Sanlam has Professional Indemnity Insurance in place which covers the work done for it by its representatives and employees.

For what purpose do we use your contact data.

Privacy is an important issue for us and we are committed to ensuring full compliance with Privacy Act requirements.

The personal data that we collect from you will only be used by us to assist in the planning of marketing proposals, education seminars, provision of general product advice to clients and as permitted under the AMLCTF Act 2006.

How you can contact us?

Telephone: (02) 8245 0500
Facsimile: (02) 8245 0599
Mail: Level 15, 37 York St, Sydney NSW 2000
Website: www.sanlamprivatewealth.com.au
Email: compliance@privatewealth.sanlam.com.au

In person:

Level 15, 37 York St, Sydney NSW 2000