On settlement of a loan, I usually receive commission from the applicable product provider. The commission is generally of an upfront nature but may also include a renewal or trail commission. I can also receive a fixed rate roll over fee from some product providers if we assist you in refixing or refinancing your loan.
This commission is used to remunerate the financial adviser that provides the advice, and to pay the expenses associated with running our business including any rent, staff costs and IT resources. From this commission I also pay NZ Financial Services Group Limited for services they provide to us in connection with our authorisation under their licence from the Financial Markets Authority.
I take steps to ensure that the receipt of commissions does not influence the advice I give to you and that our advisers prioritise your interests by recommending the best product for your purpose regardless of the type and amount of commission we or they may receive. I do this by:
- Ensuring I follow an advice process that ensures I understand your needs and goals and that my recommendations meets those needs and goals.
- Ensuring I receive regular training on how to manage conflicts of interest.
- Providing you with a schedule showing commission amounts and types by product provider. This schedule is contained within each Financial Adviser’s personalised Disclosure Guide. A Financial Adviser will provide you with more information about commissions during the advice process.