The Purpose Of This Guide
The financial services referred to in this financial services guide (FSG) are offered by PSC Direct Pty Ltd [PSC Direct] (ABN 35 601 684 128) of 96 Wellington Parade, East Melbourne VIC 3004 Tel: 1800 946 000, Email: [email protected].
PSC Direct is the trading name of PSC Direct Pty Ltd is a Corporate Authorised Representative of Professional Services Corporation Pty Ltd which holds a current Australian Financial Services Licence No: 305491. PSC Direct is responsible for the financial services provided to you and for the content and distribution of this FSG.
This FSG sets out the services that we 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 we offer you.
- how we and others are paid.
- any potential conflict of interest we 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.
Further information when personal advice is given
We will provide you with further information whenever we provide you with advice which takes into account your objectives, financial situation and needs. This information may include the advice that we have given you, the basis of the advice and other information on our remuneration and any relevant associations or interests. This information may be contained in a statement of advice (SOA).
When you ask us to recommend an insurance policy for you, we will usually only consider the policies offered by the insurers or insurance providers that we deal with regularly. In giving you advice about the costs and terms of recommended polices we have not compared those policies to other policies available, other than from those insurers we deal with regularly.
Product disclosure statement
If we offer to arrange the issue of an insurance policy to you, we 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 policy.
From when does this FSG apply?
This FSG applies from 1 August 2015 and remains valid unless a further FSG is issued to replace it. We 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 us to give us instructions by post, phone, fax or email on the contact number or details mentioned at the top of this FSG.
Who is responsible for the financial services provided?
PSC Direct 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.
PSC Direct is a corporate authorised representative of Professional Services Corporation Pty Ltd which holds a current Australian Financial Services Licensee no: 305491. The contact details for PSC Direct are on the front of this FSG.
What kinds of financial services are you authorised to provide to me and what kinds of financial product/s do those services relate to?
PSC Direct is authorised to advise and deal in general insurance products to wholesale and retail clients (see definition of retail client). We will do this on behalf of your broker unless we tell you otherwise.
Sometimes we will act under a binder or agency PSC Direct has from an insurer. When we act under a binder or agency, we will be acting as the agent of the insurer. This means that we represent and act for the insurer, not for you. We will tell you when we act under a binder or agency to arrange your insurance or advise you about your insurance needs.
Will I receive tailored advice?
Maybe not in all cases. However, we may need information about your personal objectives, details of your current financial situation and any relevant information, so that we can arrange insurance policies for you, PSC Direct issue insurance policies to you or to give you advice about your insurance needs. We will ask you for the details that we need to know.
In some cases, we will not ask for any of this information. If we do not ask, or if you do not give us all of the information we ask for, any advice you receive may not be appropriate to your needs, objectives and financial situation.
You should read the warnings contained in any SOA, or any other warnings that we give you, carefully before making any decision about an insurance policy.
What information do you maintain in my file and can I examine my file?
PSC Direct maintains a record of your personal profile, including details of insurance policies that we arrange or issue for you. We may also maintain records of any recommendations or advice given to you. We will retain this FSG and any other FSG given to you as well as any SOA or PDS that we give or pass on to you for the period required by law.
If you wish to look at your file please ask us. We will arrange for you to do so.
How will I pay for the services provided?
Payment for the services we provide you are payable directly to PSC Direct. For each insurance product, the insurer will charge a premium that includes any relevant taxes, charges and levies. PSC Direct often receive a payment based on a percentage of this premium (excluding relevant taxes, charges and levies) called commission, which is paid to PSC Direct 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. You are required to pay PSC Direct within the time set out on the invoice.
If there is a refund of premium owed to you because of a cancellation or alteration to a policy, we will retain any fee we have charged you. We may also retain commission depending on our arrangements with the insurer.
When you pay us your premium it will be banked into PSC Direct’s trust account. We will retain the commission from the premium you pay us and remit the balance to the insurer in accordance with our arrangements with the insurer. We will earn interest on the premium while it is in their trust account or may invest the premium and earn a return. We will retain any interest or return on investment earned on the premium.
How are any commissions, fees or other benefits calculated for providing the financial services?
PSC Direct’s commission will be calculated based on the following formula:
X = Y% x P
In this formula:
X = PSC Direct’s commission
Y% = the percentage commission paid to PSC Direct by the insurer. Our 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).
Any fees that we charge you will be:
- An administration fee in addition to commission when you enter into an insurance policy.
- A flat fee for arranging an insurance policy or a fee based upon the time we spend advising you.
- An annual management fee.
We 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 its commission or fees (not in addition to those amounts), in the range of 0% to 25% of its commission or fees.
Our employees that will assist you with your insurance needs will be paid a market salary that may include bonuses based on performance criteria.
If we give you personal advice, we will inform you of any fees, commission or other payments we, our associates or anyone referring you to us (or us to any insurer) will receive in relation to the policies that are the subject of the advice.
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?
PSC Direct is a Steadfast Group Limited (Steadfast) Network Broker. Steadfast has exclusive arrangements with some insurers and funders (Partners) under which Steadfast will receive between 0.5 – 1% commission for each product arranged by PSC Direct with those Partners. Steadfast is also a shareholder of some Partners.
PSC Direct 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 PSC Direct 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 we arrange premium funding for you we may be paid a commission by the premium funder. We may also charge you a fee (or both). The commission that we are paid by the premium funder is usually calculated as a percentage of your insurance premium (including government fees or changes). If you instruct us to arrange or issue a product, this is when PSC Direct becomes entitled to the commission.
Our commission rates for premium funding are in the range of 0% to 4% of funded premium. When we arrange premium funding for you, you can ask us what commission rates we are paid for that funding arrangement compared to the other arrangements that were available to you. The amount of our commission and any fee that we charge will set out in the premium funding contract.
We may, from some insurers, receive profit share payments at the end of a financial year based upon the overall performance of the portfolio of business placed with them.
We keep the details of these arrangements confidential to certain PSC Insurance Board members only who have no involvement with placement of insurance business, in order to prevent any prejudicial treatment in our dealings between you and the insurers with which we place your policies. Any profit share received is used to help relieve corporate expenses and is not directly passed on to employees as a bonus/profit share.
PSC Direct is a member of the PSC Insurance Group network which is a group of related financial services providers. For specific scheme policies, the PSC Insurance group does have underwriting agencies, Breeze Underwriting and Chase Underwriting which specialises in specific industries. These businesses operate independently from the PSC Direct broking business although they are related companies.
What should I do if I have a complaint?
- Contact us and tell us about your complaint. We will do our best to resolve it quickly.
- If your complaint is not satisfactorily resolved within 24 hours, please contact our Complaints Officer on (03) 8696 9105 or put your complaint in writing and send it to the Complaints Officer at 96 Wellington Parade, East Melbourne VIC 3002. We will try to resolve your complaint quickly and fairly.
- Professional Services Corporation Pty Ltd is a member of Financial Ombudsman Service Limited (FOS). If your complaint cannot be resolved to your satisfaction by us, you have the right to refer the matter to FOS which can be contacted on 1300 78 08 08.
What arrangements are in place to compensate clients for losses?
PSC Insurance Group has professional indemnity insurance policy (PI policy) in place.
This PI policy covers PSC Direct and its representatives (including authorised representatives) for claims made against them by clients as a result of their conduct in the provision of financial services. The PI policy will cover us for claims relating to the conduct of former representatives who no longer work for PSC Direct and satisfies the requirements for compensation arrangements under Section 912B of The Act.
Definition of a Retail client
Under the Corporations Act 2001 Retail Clients are provided with additional protection from other clients. The Act defines Retail Clients as:
Individuals or a manufacturing business employing less than 100 people or any other business employing less than 20 people and that are purchasing the following types of insurance covers:
Motor vehicle, home building, home contents, personal and domestic property, sickness/accident/travel, consumer credit and other classes as prescribed by regulations.
Some of the information in this FSG only applies to Retail Clients and it is important that you understand if you are covered by the additional protection provided.
If you have any further questions about the financial services we provide, please contact us:
PSC Direct Pty Ltd
96 Wellington Parade, East Melbourne VIC 3002
T 03 9851 3208
F 03 9840 6029
E [email protected]