AFS LICENCE NO 247258
GPO BOX 3181
MELBOURNE VIC 3001
TELEPHONE: (61) 3 8625 3333
FACSIMILIE: (61) 3 8625 3385
FINANCIAL SERVICES GUIDE
FOR
GLENOWAR PTY LTD T/AS FENTON GREEN & CO
Australian Financial Services Licence Number: 247258
INTRODUCTION
This Financial Service Guide (FSG) contains important information about our relationship with you and is designed to
assist you in deciding whether to use any of our services. We explain a number of matters, including:
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The services we offer and our standard terms and business
Our remuneration
Any potential conflicts of interest we may have
Our internal and external dispute resolution procedures
Our privacy policy
Our professional indemnity insurance
If we provide you with advice about your personal circumstances in relation to a sickness and accident policy or
consumer credit insurance we will give you a Statement of Advice. This will confirm the advice we have given and explain
our fees for arranging the insurance we have recommended.
If we provide you with advice about your personal circumstances in relation to a home building, home contents, travel,
motor vehicle or personal property policy we will confirm the advice we have given in writing and explain our fees for
arranging the insurance we have recommended.
If we recommend a particular retail insurance product to you, or you ask us to arrange insurance, we will also provide you
with a Product Disclosure Statement (PDS). The PDS is prepared by the insurer and contains information about the
product recommended, to help you make a more informed decision about that product.
OUR SERVICES
Our AFS Licence allows us to provide advice on and deal in general insurance products as an insurance broker. As an
insurance broker, we provide our services as your agent. Where we have a binder agreement we act as the insurers
agent to arrange insurance policies and not on your behalf. However, any advice we give to you in relation to this
insurance we give as your agent. We will tell you when we are acting under a binder agreement.
Our services include:
₋ Reviewing and advising on your insurance needs
₋ Arranging and renewing insurance on your behalf
₋ Assisting you with claims
₋ Arranging premium funding
HOW CAN YOU INSTRUCT US ABOUT YOUR INSURANCE?
You may instruct us about your insurance by telephone or in person, by fax or email or by other means we agree with
you. It is important that you provide us with complete and accurate information about the risk to be insured otherwise
the advice we give you may not be appropriate for your needs. If your circumstances change, our recommendations may
no longer be appropriate. Please tell us about any changes in your circumstances so that we can confirm that your
insurance continues to be suitable for our needs. It is our preference to always receive instructions from you in writing.
Glenowar Pty Ltd t/as Fenton Green & co
ABN 14 074 776 631
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HOW DO YOU PAY FOR OUR SERVICES?
OUR REMUNERATION
Commission and broker fees are our main source of income and also cover the costs of operating our business. We
receive a commission from the insurer with whom we place your insurance. The amount varies depending on the
product, but is in the range of 0% to 25% of the premium (excluding taxes and statutory charges) and is included in the
premium quoted you. We may also charge you a fee for arranging the insurance. This fee varies depending on the type
and complexity of insurance and is payable in addition to the premium. Where we provide advice on your personal
circumstances in relation to retail products our remuneration will be calculated and disclosed to you at the time we
provide the advice. Where we provide general advice in relation to retail products you may request particulars of our
remuneration or other benefits but this request must be made within a reasonable time after you have been given this
Financial Services Guide and before any financial service is provided to you.
We may also receive remuneration for the referral of business from certain companies with which we partner to provide
services to our clients.
At the end of the financial year, we may receive a profit share commission from certain insurers, depending on the
performance and profitability of the portfolio we place with the insurers. Some insurers may give us other non-monetary
benefits. We do not permit our advisors to accept this type of benefit where the value is greater than $500.
See below for information on the Steadfast association and commission.
IMPORTANT ASSOCIATIONS
Fenton Green & co is a shareholder of Steadfast Group Limited (Steadfast). Steadfast has exclusive arrangements with
some insurers under which Steadfast will received between 0.5-1% commission for each product arranged by us with
those insurers. These payments are used to operate Steadfast.
Depending on the operating costs of Steadfast (including the costs of member services provided by Steadfast to us and
other Steadfast shareholders) and the amount of total business we place with the participating insurers in any financial
year, we may receive a proportion of that commission at the end of the each financial year.
As a shareholder of Steadfast we have 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 shareholders for a
fee.
Steadfast is also a shareholder of Miramar Underwriting Agency Pty Limited (Miramar). As a shareholder, Steadfast may
receive dividends from Miramar. These amounts will indirectly contribute towards the benefits we receive from
Steadfast.
Steadfast has a shareholding in Macquarie Premium Funding. If we arrange premium funding with Macquarie Premium
Funding for you, under its agreement with Macquarie Premium Funding, Steadfast will receive 0.5% of your insurance
premium (including government fees or charges). As an equity shareholder of Macquarie Premium Funding, Steadfast
may also receive dividends from profits of Macquarie Premium Funding. The amount of the Steadfast dividend is based
on the share of profit attributable to funding arranged by Steadfast shareholders. The payments (commission and
dividends) that Steadfast receives from Macquarie Premium Funding are used to operate Steadfast. Depending on the
operating costs of Steadfast and the amount of total business we place with Macquarie Premium Funding in any financial
year, we may receive a portion of those amounts at the end of each financial year.
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 charges). If you instruct us to arrange or issue a product, this is when
we become entitled to the commission.
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Our commission rates for premium funding are in the range of 0% to 2% of funded premium. When we arrange premium
funding for you, you can ask us what commission rates we are paid for the funding arrangement compared to the other
arrangements that were available to you. The amount of our commission and any fee that we charge will be set out in
the premium funding contract.
WHO WE PAY
Our advisers are paid an annual salary. They may also receive a performance bonus which is paid at the discretion of our
directors where the adviser’s performance has been exceptional in terms of meeting our business goals.
If you were referred to us we may pay the person who referred you up to 20% of the commission we earn for placing
your insurance.
OUR PROFESSIONAL INDEMNITY INSURANCE
We have professional indemnity insurance in place which covers us for any errors or mistakes relating to our professional
broking services. This insurance meets the requirements of the Corporations Act and covers the services provided by us
and our authorised representatives even after they cease working with us provided we notify the insurer of the claim
when it arises and this is done within the relevant policy period.
WHAT TO DO IF I HAVE A COMPLAINT?
Glenowar Pty Ltd t/as Fenton Green & co has its own “complaints handling system” which commences with our
Complaints Officer who will initially consider the details and hopefully resolve the problem.
You may lodge any complaint by contacting the Complaints Officer on (03) 8625 3333.
We will acknowledge receipt of your complaint within 3 days and attempt to resolve it within 4 weeks.
We are a member of the Financial Ombudsman Service, an external dispute resolution scheme. If you are not satisfied
with the manner in which we handled your complaint, you are entitled to take your complaint to them. Their contact
details are:
The Financial Ombudsman Service Limited
GPO Box 3
Melbourne Vic 3001
Tel.: 1300 780 808 Website: www.fos.org.au
OTHER INFORMATION
Renewals
We will give you at least 14 days notice of expiry of any insurance policy which we arrange or last renewed for you.
Unless you tell us otherwise, we will automatically renew your insurance to ensure you continue to be covered. At that
time we will send you an offer to renew the insurance policy and invoice you for the cost of renewal. If there is a change
to your circumstances or if you want to change the details of the cover, contact us as soon as you receive the renewal
offer.
Our Payment Terms
We will invoice you for the premium, statutory charges and any fees we charge for arranging your insurances. You must
pay us within 14 days of the date of the invoice, or in the case of renewal, before the expiry date of the contract of
insurance. If you do not pay the premium on time, the insurer may cancel the contract of insurance and you will not be
insured. The insurer may also charge a short term penalty premium for the time on risk.
Premium funding products enable you to pay your premium by instalments. Premium funders do charge interest and
they take a power of attorney over your insurance policy. We can arrange premium funding on your behalf if you require
it. Please note that our policy for refunds following cancellation of a policy applies to any policies cancelled as a result of
a premium funding default.
If you pay by credit card we may charge you a non-refundable credit card fee. This fee will be shown on your invoice and
reimburses us for the bank interest, extra charges/costs and internal time generated for credit card use.
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Cancellation
We cannot cancel a contract of insurance without written instructions from a person authorised to represent each of the
parties who are named as insureds. We cannot cancel any contract of insurance which is subject to the Marine Insurance
Act 1909.
If you cancel your insurance mid-term, we will refund the net premium we received from your insurer. 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
our commission.
MARKET SECURITY
We assess the financial soundness of the proposed insurers and markets we recommend using public information
including that produced by recognised rating agencies. However, we will not in any circumstances act as an insurer nor
will we guarantee or otherwise warrant the solvency of any insurer or market used for your requirements. As a
consequence the decision regarding the suitability of any insurer or market rests with you. If you have any concerns
regarding any insurers chosen for your insurance requirements you must advise us as soon as possible and we will discuss
them with you.
If requested, where available we will provide information in respect of listed insurance carriers proposed to be used for
your requirements. Further, we can consider market security details on an ad hoc basis but this may be subject to the
agreement of an additional fee.
DOCUMENTATION AND CLAIMS
We will send you documentation confirming the basis of the cover secured on your behalf, including details of the
insurers, with a premium invoice, showing separately all the amounts payable. The date the money is due together with
any potential penalties for late payment will be clearly stated to you.
We will forward an insurance policy documents, if applicable, and any amendments or endorsements to your policy as
soon as reasonably practicable.
Except where we agree otherwise with you, or because we are otherwise constrained to do so, we will provide our claims
handling services during the policy period for the policies placed by us. Our claims handling services include, upon
receiving the required information from you, the notification of the claim or circumstances to insurers; representing you
in the resolution of the claim and arranging the collection and/or settlement of the claim in accordance with market
practice and your policy terms and conditions. Where claims are to be dealt with by you with insurers directly, we will
provide advice and support as requested.
Further, our claims handling services will cease where we are satisfied that you have instructed another entity to assume
the claims servicing obligations for your insurance.
Where we collect claims payments on your behalf these will be remitted to you as quickly as possible. However, we will
not remit claims monies to you before we have received them from insurers.
HOW WE PROTECT YOUR PRIVACY
We are committed to protecting your privacy. We use the information you provide to advise about and assist with your
insurance needs. We only provide your information to the insurance companies with whom you choose to deal (and
their representatives). We do not trade, rent or sell your information.
You can check the information we hold about you at any time. For more information about our Privacy Policy, ask us for
a copy or visit our website at www.fentongreen.com.au.
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YOUR DUTY OF DISCLOSURE
To make an informed assessment of the risk and calculate the appropriate premium, your insurer needs information
about the risk you are seeking to insure.
For this reason, before you enter into a contract of insurance, you have a duty under the Insurance Contracts Act 1984 to
disclose to your insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer’s
decision whether to accept the risk and, if so, on what terms. The duty also applies when you renew, extend, vary or
reinstate a contract of insurance.
You do not have to disclose anything that:
₋ Reduces the risk to be undertaken by the insurer
₋ Is common knowledge
₋ Your insurer knows, or in the ordinary course of its business, ought to know, or
₋ If the insurer has waived your obligation to disclose.
If you do not comply with your duty of disclosure, your insurer may be entitled to reduce its liability in respect of a claim
or may cancel your contract of insurance. If the non-disclosure was fraudulent, the insurer may be able to avoid (or
cancel) the contract of insurance from its beginning. This would have the effect that you were never insured.
One important issue to be disclosed is the history of losses suffered by the person seeking insurance or any closely
associated person or entity. As you are responsible for checking that you have made complete disclosure, we suggest
that you keep an up to date record of all such losses and claims.
If you have any questions about whether information needs to be disclosed to your insurer, do contact us.
VERSION 5 - ISSUE DATE 1 AUGUST 2011
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