Initial contact & meeting
After a prospective client initiates contact with us, we shall arrange a conference. During this conference we shall provide further information on our services, and if the client is interested in moving forward, we shall provide a copy of our Financial Services Guide. We may also then provide information on the Macquarie WRAP services or funds that we use. During this initial discussion you may be prepared to discuss your personal situation and requirements in confidence, as this will enable us to provide a preliminary view upon which service option is more suited to you. We do not give oral investment advice and no such advice will be provided at this initial meeting.
Formulating the proposal
There will be no obligations arising from this initial conference. If you do decide to move forward with us we shall request that you complete a Personal Financial Profile. This is a key document and will guide us in the formulation of any proposal and consequential advice provided to you. At this stage we would look for trust and openness, and positive portends for a willingness to work together. From hereon, utmost confidentiality is essential.
Following receipt of this information, we shall then be able to provide you with a Proposal for advice and the provision of services. Your requirements and circumstances will determine the scope of any advice we are to give. The pre-existing circumstances of each client are different, and we shall not encourage you to mandate us to provide advice in areas where you already have settled your affairs – eg, in succession planning through work with your solicitor. Our objective at this stage is to determine the scope of the advice that is appropriate for your circumstances, and then to make a specific proposal to you for the provision of such advice.
Agreeing the service level
In our Proposal to you we will generally place a ceiling upon the hours to be charged at $330 p/h (incl. GST), and thus you will know the extent of your commitment to us for the advice we have undertaken to give to you. This up-front time charge will cover follow-up meetings and implementation of your investment strategy, and will generally fall into the 6 to 18 hour range, depending upon complexity. In our making of this proposal, it will usually be sensible for you to already feel comfortable with the on-going service option that is most suited to your situation and requirements – for our advice will be couched in terms to recommend this suitable service model.
After your acceptance of our Proposal, we shall promptly provide you with a Statement of Advice. This document is regulated by the Corporations Act 2001, which has been amended under the Financial Services Reform Act 2001 – and there are specific requirements in this legislation that we must address in this document. Our Statements of Advice are tailor-made and customised documents, which are the result of a rigorous thought/analysis process – they are not bank/institutional computer driven templates. Every client is different and advice is personalised.
When we provide you with this advice, you will be obliged to pay the agreed fee for advice, but you will not be under any commitment to invest.
In virtually all cases there will be one or more meetings with you after the provision of a written Statement of Advice: to answer your queries; to adjust the strategy to your particular requirements; and to analyse further with you the investment recommendations and the service option that is best suited to you. It is your decision whether to invest funds under our advice.
Implementation & dealing
Finally, we shall assist you with execution of relevant documentation to implement your investment strategy, and then take the requisite steps to transact for you after the crediting of cleared funds into your account. In some cases, where clients hold pre-existing portfolios, we shall assist you in the transfer of securities and managed funds into your account, and also in the completion of capital gains records where these are incomplete. There is no incidence of CGT when assets are transferred into your Macquarie account, as beneficial ownership always remains with you at all times, and accordingly there is no “CGT event”.
The continuing relationship
Under both service options, we see our on-going relationship with the client as being much more than a pure business contract – it is a partnership, based on mutual trust and with shared interests. Our asset based fees rise with the growth in value of your portfolio.