This FSG sets out the services that I can offer you. It is designed to assist you in deciding whether to use any of those services and contains important information about:
- the services I offer you.
- how I and others are paid.
- any potential conflict of interest I may have.
- our internal and external dispute resolution procedures and how
you can access them.
- arrangements that are in place to compensate clients for losses.
Product disclosure statement
If I offer to arrange the issue of an insurance policy to you, I will also provide you with, or pass on to you, a product disclosure statement (“PDS”), unless you already have an up to date PDS from the insurer. The PDS will contain information about the particular policy, which will enable you to make an informed decision about purchasing that product.
From when does this FSG apply?
This FSG applies from 1 November 2018 and remains valid unless a further FSG is issued to replace it. I may give you a supplementary FSG. It will not replace this FSG but will cover services not covered by this FSG.
How can I instruct you?
You can contact me to give me instructions by post, phone or email on the contact number or details mentioned on this FSG.
Who is responsible for the financial services provided?
Alliance Insurance Broking Services Pty Ltd is responsible for the financial services that will be provided to you, or through you to your family members, including the distribution of this FSG. Alliance Insurance Broking Services Pty Ltd holds a current Australian Financial Services Licence no. 244127. The contact details for Alliance Insurance Broking Services Pty Ltd are on the front of this FSG.
What kinds of financial services are you authorised to provide to me and what kinds of financial products do those services relate to?
I am authorised to advise, issue and deal in general insurance products to wholesale and/or retail clients under Alliance Insurance Broking Services Pty Ltd’s Australian Financial Services Licence. I will do this on your behalf as your broker unless I tell you otherwise. Sometimes I will act under a binder or agency that Alliance Insurance Broking Services Pty Ltd has from an insurer. When I act under a binder or agency, I will be acting as the agent of the insurer. This means that I represent and act for the insurer, not for you. I will tell you when I act under a binder or agency to arrange your insurance or advise you about your insurance needs.
Will I receive tailored advice?
I am authorised to provide you with general advice only and not with tailored advice. Where I provide you with advice about your insurance
arrangements, that advice is current at the time that I give it. I will review your insurance arrangements when you inform me about changes in your circumstances, at the time of any scheduled status review or upon renewal of your insurances.
Contractual Liability and your insurance cover
Many commercial or business contracts contain clauses dealing with your liability (including indemnities or hold harmless clauses). Such clauses may entitle your insurers to reduce cover, or in some cases, refuse to indemnify you at all. You should seek legal advice before signing and accepting contracts. You should inform me of any clauses of this nature before you enter into them.
What information do you maintain in my file and can I examine my file?
Alliance Insurance Broking Services Pty Ltd maintains a record of your personal profile, including details of insurance policies that I arrange or issue for you. They may also maintain records of any recommendations or advice given to you. Alliance Insurance Broking Services Pty Ltd will retain this FSG and any other FSG given to you as well as any PDS that I give or pass on to you for the period required by law.
How will I pay for the services provided?
Payment for the services I provide to you are payable directly to Alliance Insurance Broking Services Pty Ltd. For each insurance product, the insurer will charge a premium that includes any relevant taxes, charges and levies. Alliance Insurance Broking Services Pty Ltd often receive a payment based on a percentage of this premium (excluding relevant taxes, charges and levies) called commission, which is paid to them by the insurers. In some cases, you will also be charged a fee. These will all be shown on the invoice that is sent to you.
You can choose to pay for our services by any of the payment methods set out in the invoice but you are required to pay within the time set out on the invoice.
If there is a refund or reduction of your premium as a result of a cancellation or alteration to a policy, or based on a term of your policy (such as a premium adjustment provision), we will retain any fee we have charged you. We will also retain commission depending on our arrangements with the insurer, or charge you a cancellation fee equal to the reduction in commission.
When you pay us your premium it will be banked into Alliance Insurance Broking Services Pty Ltd’s trust account. They will retain the commission from the premium you pay us and remit the balance to the insurer in accordance with their arrangements with the insurer. Alliance Insurance Broking Services Pty Ltd will earn interest on the premium while it is in their trust account or they may invest the premium and earn a return. Alliance Insurance Broking Services Pty Ltd will retain any interest or return on investmentearned on the premium.
How are any commissions, fees or other benefits calculated for providing the financial services?
Alliance Insurance Broking Services Pty Ltd’s commission will be calculated based on the following formula: X = Y% x P
In this formula: X = Alliance Insurance Broking Services Pty Ltd’s commission.
Y% = the percentage commission paid to Alliance Insurance Broking Services Pty Ltd by the insurer. Their commission varies between 0% and 30%.
P = the amount you pay for any insurance policy (less any government fees or charges included in that amount).
As an Authorised Representative, I receive a fixed percentage of the commission that is received by Alliance Insurance Broking Services Pty Ltd.
Any fees that Alliance Insurance Broking Services Pty Ltd or I charge you will be shown on your invoice. Any fees that we charge you will be based on the service we provide and will be a fair and reasonable amount according to industry standards.
Alliance Insurance Broking Services Pty Ltd and I do not often pay any commissions, fees or benefits to others who refer you to us or refer us to an insurer. If we do, we will pay commissions to those people out of our commission or fees (not in addition to those amounts), in the range of 0% and 30% of our commission or fees. See below for information on the Steadfast association and commission.
Do you have any relationships or associations with the insurers who issue the insurance policies or any other material relationships?
Alliance Insurance Broking Services Pty Ltd is a Steadfast Group Limited (“Steadfast”) Network Broker. Steadfast has exclusive arrangements with some insurers and premium funders (“Partners”) under which Steadfast will receive between 0.5 – 1.5% commission for each product arranged by Alliance Insurance Broking Services Pty Ltd with those Partners. Steadfast is also a shareholder of some Partners.
Alliance Insurance Broking Services Pty Ltd may receive a proportion of that commission from Steadfast at the end of each financial year (or other agreed period).
As a Steadfast Network Broker, Alliance Insurance Broking Services Pty Ltd has access to member services including model operating and compliance tools, procedures, manuals and training, legal, technical, banking and recruitment advice and assistance, group insurance arrangements, product comparison and placement support, claims support and group purchasing arrangements. These member services are either funded by Steadfast, subsidised by Steadfast or available exclusively to Steadfast Network Brokers for a fee.
You can obtain a copy of Steadfast’s FSG at www.steadfast.com.au. If I arrange premium funding for you Alliance Insurance Broking Services Pty Ltd may be paid a commission by the premium funder. I may also charge you a fee (or both). The commission that Alliance Insurance Broking Services Pty Ltd is paid by the premium funder is usually calculated as a percentage of your insurance premium (including government fees or charges). If you instruct us to arrange or issue a product, this is when Alliance Insurance Broking Services Pty Ltd become entitled to the commission.
Alliance Insurance Broking Services Pty Ltd’s commission rates for premium funding are in the range of 0% and 5% of funded premium. When we arrange premium funding for you, you can ask us what commission rates are paid for that funding arrangement compared to the other arrangements that were available to you.
What should I do if I have a complaint?
- If you have a complaint please refer to our complaints and disputes policy located on our website at www.alliance-group.com.au. You can contact me directly on the contact number or details noted at the beginning of this FSG and I will do my best to resolve it quickly.
- If your complaint is not satisfactorily resolved within 21 days, please contact Alliance Insurance Broking Services Pty Ltd by email at email@example.com or by telephone on 03 9647 0600. Alternatively, you can put your complaint in writing and send it to Alliance Insurance Broking Services Pty Ltd at the address noted at the beginning of this FSG. They will try to resolve your complaint quickly and fairly.
- Alliance Insurance Broking Services Pty Ltd is a member of the Australian Financial Complaints Authority (“AFCA”). If your complaint cannot be resolved to your satisfaction by Alliance Insurance Broking Services Pty Ltd, you have the right to refer the matter to AFCA. AFCA provides fair and independent financial services complaint resolution that is free to customers.
AFCA can be contacted at:
Address: Australian Financial Complaints Authority
GPO Box 3
Melbourne VIC 3001
Telephone: 1800 931 678
- If you have a complaint about a policy that was arranged under a binder that cannot be resolved to your satisfaction by us you have the right to refer the matter to AFCA at no cost to you.
What arrangements do you have in place to compensate clients for losses?
Alliance Insurance Broking Services Pty Ltd has a professional indemnity insurance policy (“PI policy”) in place.
The PI policy covers us, our employees and our representatives (including our Authorised Representatives) for claims made against us, our employees and our representatives by clients as a result of the conduct of us, our employees or representatives in the provision of financial services.
Our PI policy will not cover us for claims relating to the conduct of our employees and representatives who no longer work for us. This policy satisfies the requirements for compensation arrangements under section 912B of the Corporations Act.
If you have any further questions about the financial services Alliance Insurance Broking Services Pty Ltd provides, please contact us. Our contact details can be found at the start of this FSG.
Please retain this document for your reference and any future dealings with Alliance Insurance Broking Services Pty Ltd.