Stage 1 Disclosure
The purpose of the regulation is to help consumers find a financial advice provider that meets their needs.
A website or internet site maintained by a FAP would be the most common place where publicly available information would be found by consumers.
The information must be prominently displayed on the home page or somewhere easily found on the site. It could also be via a link from the home page.
Ensure that the public can easily access this information at all reasonable times.
This information is required to be given upon request to a client/consumer at no cost.
This could be done via a marketing document or PDF to cover all the required information
How to use this information
This guide has been put together to assist you with preparing your Stage 1 disclosure.
Use this as a checklist for your website and written disclosure document.
Please edit the ‘template’ pages to fit your business and all the relevant information required.
Disclaimer
This document has been prepared for KAN businesses only and should not be shared outside of our network. No liability is accepted for anyone who uses this information without guidance or sign-off by our compliance team. This is a guidance-only document and not legal advice.
Important information about our business
Mortgage A to Z is a Licensed Financial Advice Provider issued by the FMA to provide financial advice
services. Financial Services Provider Number is 1006287
We are a FAP Licence Holder and operate under Mortgage A to Z Limited
Our office contact details:
Address: 71 Orbell Street, Sydenham
Phone: 0800 629 629
Email: hello@maz.co.nz
Website: www.maz.co.nz
Nature and Scope of financial advice services
Our Services:
● Mortgages & Loans
● Residential, business and Commercial loans
● KiwiSaver investment strategies and retirement
planning
● Personal insurance
Products we can provide financial advice about or refer
● KiwiSaver investments
● Managed investments
● Personal and Group insurance
○ Life cover
○ Disability
○ Income protection
○ Trauma
● Loans including mortgages, reverse mortgages and deposit bonds
● Life investment products including whole of life, endowment and bonds
Product providers we might recommend
● ASB
● ANZ
● BNZ
● Westpac
● Co-Op
● Kiwibank
● SBS
● TSB
● Pepper Money, Asap Finance, Avanti, Basecorp, Cressida Capital, DBR, First Mortgage Trust, Funding Partners CFML, Heartland Bank Reverse Mortgages, Unity, Plus Finance, Prospa, Southern Cross Partners
Our fees
The actual fee charged to you will depend on the nature and scope of the advice or service we provide. We will discuss and agree on the actual fees with you before we proceed and explain how they are payable.
The following section outlines the types of fees that may apply:
● The fees charged for our advice and services may be based on a combination of:
○ A set dollar amount; OR
○ a percentage-based fee.
● Our agreed advice and service fees may include charges for:
○ Initial advice ongoing; OR
○ annual advice and services.
We will not change you where we receive commission from the lender I may receive commissions at settlement from the relevant lender if you choose to take out a mortgage following my advice. The commissions are between 0.55% and 0.85% of the initial mortgage balance or amount funded. I may/will also receive 0.15% to 0.2% of the mortgage balance on each anniversary. The commission I receive is shared with Mortgage A to Z for providing me with compliance support, training, and back-office support.
I/we do not charge you a fee if you decide to take a loan. The lender may pay us a commission if you decide to take up our advice and when your loan settles. However, I may charge you for the financial advice that I provide if you cancel or refinance your mortgage within the first three years after it settles.
We will use the following formula to calculate the fee:
Fee for our financial advice = $3,000 for 10 hours of work calculated at $300 per hour
Or
We will invoice you for this fee and it will be payable on the 20th of the month following the
cancellation of your policies. Details of how to make payment will be included on the invoice.
If you decide not to act on my advice, then I will charge you an hourly fee of $300 for the
services performed. This will be based on the time it has taken to prepare my advice. The
average charge for this service is $3,000 which is calculated at 10 hours x $300 per hour.
Other Cost
Where other costs are incurred in the process of providing our advice and services to you, myou will be liable for these costs. However, we will agree on all additional costs with you prior to incurring them; OR We don’t charge our clients fees, expenses or anything else directly for the financial advice we provide.
Commissions
For services in relation to insurance/ investments/ loan products, commissions may be paid by the product provider as follows:
Initial Commission
A percentage of the value of your investment contributions, loan balance, or insurance premiums; and Kiwisaver
Ongoing Commission
A percentage of the value of your investment balance, outstanding loan amount or premiums, usually calculated at the mend of each month in which you hold the investment or loan, or on renewal of insurance products.
Conflicts of interest or other incentives
We are here for our clients and to advise you as best we can. Your interests are our priority although we do have business relationships with product providers also.
Kiwsaver and Insurance advisers From time to time our product providers assist us with funding so we can bring our advisers together for conferences and professional development training. We may receive referral income from real estate companies or builders
(Discounted CRM, subsidized training for advisers or other non-monetary benefits.)
(Set targets or volume-based agreements or contracts with providers
How we manage any conflicts of interest To ensure our advisers prioritise our clients’ interests:
● We follow an advice process that ensures our recommendations are made appropriately, based on
clients’ goals and circumstances.
● All our advisers undergo annual training about how to manage conflicts of interest.
● We maintain registers of conflicts of interest and the gifts and incentives we receive. These registers
are monitored regularly, and additional training is provided as required.
● We undertake an annual independent Compliance Assurance Review
Our duties and obligations to you We are bound by the duties of the Financial Markets Conduct Act (431I, 431K, 431L and 431M) to:
● Meet the standards of competence, knowledge, and skill set out in the Code of Conduct
● Give priority to the clients’ interest, and
● Exercise care, diligence and skill, and
● Meet the standards of ethical behaviour, conduct, and client care set out in the Code of Conduct.
Our Internal complaints process
If you have a problem, concern, or complaint about any part of our advice or service, please tell us so that we
can try to fix the problem.
Our internal complaints contact is email at complaints@maz.co.nz will reply to you within 48 hours. ( working
days)
Our internal complaints handling process is as follows:
Please email on complaints@maz.co.nz for any complaints
Our internal complaints handling process is as follows:
1. To lodge a complaint, please email your complaint to hello@maz.co.nz
2. We will reply to you within 2 business days.
3. We will aim to resolve your complaint within 10 working days
Our external complaints process
If we cannot agree on how to fix the issue, or if you decide not to use the internal complaints scheme, you can
contact our external disputes resolution scheme – FSCL. This service will cost you nothing, and will help us
resolve any complaints.
You can contact FSCL at:
Address: Financial Services Complaints Limited PO Box 5967
Wellington 6140
Phone number: 0800 347 257
Email address: complaints@fscl.org.nz