Gallivan Magee & Associates Pty Ltd Insurance Brokers & Risk Management Consultants

Financial Services Guide

Gallivan, Magee & Associates Pty. Ltd.
Australian Financial Services Licence No:243558
ACN: 006 079 429 ABN: 73 769 789 032

66 Stevedore St., Williamstown. 3016.
P.O. Box 490, Williamstown. 3016.
Telephone: (03) 9397 3200 Facsimile: (03) 9397 3099

Email: [email protected]
Website: www.gallivanmagee.com.au

Financial Services Guide ~ The Purpose of this Guide

This Financial Services Guide (FSG) is designed to assist you in deciding whether to use any of our services and contains important information about:

  • The services we offer you
  • How we and our associates are paid
  • Any potential conflict of interest we may have
  • What to do in the event of a complaint

Who is Responsible for the Financial Services Provided

Gallivan, Magee & Associates Pty. Ltd. hold a current Australian Financial Services Licence (No: 243558) to provide general insurance broking services.. We are authorised to advise and deal in the full spectrum of general insurance products. We are responsible for the financial services provided to you, or through you to your family members, including the distribution of this FSG. The issue and retention of our Licence requires us to meet stringent requirements in areas such as: staff training, organizational competence, management expertise, financial control and compliance disciplines. We have an ongoing requirement to maintain and enhance our professionalism to ensure that you receive fair and honest Financial Services from us.

Who do we act for

We usually act on your behalf and in your interests in all matters. In some cases, it may be more appropriate to access insurance arrangements or manage claims where we act as the agent of the insurer. If this happens, we will clearly explain and highlight this to you.

How to Contact Us

You are able to contact us by phone, in writing, by email or in person.

Our Services

We offer a range of services to assist you to protect your assets and guard against unexpected liabilities including:

  • Reviewing and advising on your insurance needs
  • Identifying risk factors to avoid claims
  • Seeking competitive premium quotations
  • Providing Product Comparison reports.

Our Products

We can advise and arrange a broad range of insurances on your behalf including ~ Domestic, Private Motor, Farm Insurance, Business Packages, Salary Continuance, Industrial and Professional covers.

THE CHOICE AND SECURITY OF INSURERS

Where possible we will select Insurers who are authorised to transact Insurance Business in Australia, and who meet the stringent requirements of the Australian Prudential Regulation Authority (APRA). If a locally authorised Insurer cannot be found that suits your needs, then we may use Lloyds of London (Lloyds) who is also authorised to transact business in Australia. If for the purpose of the arrangement of cover, which can not be sourced locally or through Lloyds, we have to place cover via a Direct Offshore Financial Insurer (DOFI), who is not authorised by APRA, then this will be done. However it will only be done with full notification to you and only with your approval.

In the selection of an insurer, we also refer to information provided by The National Insurance Brokers Association who provide monthly updates from The Standard and Poors Rating Agency. If you ever want more information concerning an Insurer or have any queries please contact us on 03 9397 3200.

Retail Clients
Under the Financial Services Reform Act (The Act) Retail Clients are provided with additional levels of protection from other insurance purchasers. The Act defines Retail Clients as ~ Individuals or a small manufacturing business employing less than 100 people or any other business employing less than 20 people. And that are being provided a financial services or products that relates to the following insurance covers ~ Motor Vehicle, Home building, contents, personal and domestic, Sickness and Accident or Travel, Consumer Credit and other classes as prescribed by regulations. Some information in this FSG only applies to Retail Clients and it is important that you understand whether you are covered by the additional protection provided.

Retail Client Issues
If you are a Retail Client and obtain personal advice, that is, advice that takes into account your particular circumstances, we will give you a Statement of Advice that sets out the advice provided as well as the basis on which the advice is made. If recommendations about the purchase of a particular financial product are made, we will also give you a Product Disclosure Statement at that time, which sets out details specific to that product.

What We Expect From You
To enable us to provide the right advice we need you to provide us with complete information about the risk(s) that you face and those that you want to be insured for.

This should include information about your situation, needs and objectives. You should also tell us about any relevant changes as they occur so that we can review your insurance needs accordingly. If we do not have your complete information, we will be unable to properly review your circumstances, limiting our ability to give you the right advice. In such cases, before acting on it, you should check whether our advice is appropriate for your needs. We also ask you to pay our invoices on time and complete all proposal forms honestly, accurately and to return them to us by the required date.

Personal Information
Privacy Legislation sets out the standards for the collection and management of personal information. With your consent, we will only use your personal information in relation to general insurance services. Further information on this is available upon request.

Claims
We attempt to simplify the claims process with assistance and advice in regard to the scope of cover and explanation as to how the claims process works. We will promptly forward all claims documentation, insurance company settlement cheques and other information.

Our Sources of Income
We have the following sources of income ~ When we place insurance for you, we usually receive payment from the insurer. The amount payable varies between 0% & 20% of the base premium you pay. This is known as the commission. For Retail Clients, details on commission will be included in any Statement of Advice we send you. We also have a set of standard Broker Fees charged for the cost of services that are not covered by the commissions received from insurers. For other Wholesale or Business Clients, we are remunerated via a mix of Brokerage and Commission which is set at a level to enable us to provide a professional level of service. It is our policy to only arrange insurance covers that suit our clients’ needs and attempt to avoid potential conflicts of interests. Cover is never arranged with a criteria of remuneration or benefit to us.

Activities that such fees cover include:

  • Market research on products available.
  • Assessing the claims paying ability of insurers.
  • Sourcing alternative quotations and coverage.
  • Risk analysis and insurance portfolio co-ordination.

All fees payable for our services will be advised to you at the time of providing the advice or service. Any premiums received from you are held in a trust account prior to forwarding to your insurer. The interest earned on this money will be retained by us.

STEADFAST CLUSTER GROUP
We are members and shareholders of Steadfast Group Limited, which is a cluster group that enables members to pool resources to achieve underwriting and claim concessions for clients. Steadfast also produces economies on certain overheads, which enable us to keep our remuneration and fee structure at competitive levels. A dividend is paid to members based on the nett difference on group overheads, as against any commission earnings. Steadfast has exclusive arrangements with some insurers under which Steadfast will receive 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 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 minority shareholder in Miramar Underwriting Agency P/L (Miramar). As a shareholder, Steadfast may receive dividends from Miramar. These amounts will indirectly contribute towards the benefits we receive from Steadfast. Members also are required to pay annual membership fees. Membership of this group is a decided benefit for our clients. The Steadfast Group also has a Financial Services Guide (FSG) which is available to our clients. You can obtain a copy of Steadfast's FSG at www.steadfast.com.au .

PREMIUM FUNDING
As a service to Wholesale / Business Clients (and some select Retail clients), we can arrange a Premium Funding Alternative for clients. Normal costs associated with finance contracts generally apply. We do receive commission for arranging these contracts however it is mainly an offset against administrative costs involved. It is our policy to only engage in activities that suit our clients’ needs and attempt to avoid potential conflicts of interests. Funding is a service and benefit to clients.

INTEREST ON MONIES HELD IN TRUST
We are legally permitted to invest monies held in trust and earn interest on those funds. There are very strict rules and guidelines that govern where and how we may invest these funds. Our representatives do not receive any benefit directly from the sale of a product to you. Our focus is to ensure that staff concentrate only on your needs at all times. Our representatives may receive bonuses payable based on the overall performance of our business. These bonuses are not directly and solely linked to the sale of Financial Services. If a person has referred you to us, we may pay them a part of fees or commission received. This will be disclosed in any Statement of Advice you receive.

Cooling Off Provisions
All retail products are subject to a 14 day ‘cooling off period’. This means that if you are not happy with the product, you have 14 days to withdraw from the contract at no cost to you.

Professional Indemnity Cover
It is a statutory requirement that we maintain a Policy of Insurance, covering professional negligence. We are insured for a Limit of $ 50,000,000 any one claim and a Total Limit for all claims in the policy period, of $ 112,600,000. This policy provides cover for actions citing negligence against us. e.g. If a client provided clear and firm instructions to arrange a cover and we neglected to do so, or if we provided negligent advice that caused financial loss.

Cancellation Provisions ~ Our Terms of Trade
In the event of amendment or cancellation of an insurance policy prior to expiry, we usually retain brokerage and or commission earned in the arrangement of the cover and /or charge an additional Broker cancellation fee.

Complaints
Clients who are not fully satisfied with our services should contact our complaints officer. We are also members of the Financial Ombudsman Service (FOS)., a free consumer service. Our Dispute Resolution officer is Fintan Magee (03) 9397 3200 and we also adopt the General Insurance Brokers Code of Practice. Further information is available from our office, or you can contact the Financial Ombudsman Service (FOS). If your complaint cannot be resolved to your satisfaction by us you have the right to refer the matter to FOS. FOS can be contacted at Level 5, 31 Queen St, Melbourne VIC 3000 on 1300 780 808, fax 03 9613 6399, email [email protected] or website www.fos.org.au.

When Does This FSG Apply From
This FSG was prepared in November, 2009.