Financial Services Guide (FSG)
This Financial Services Guide (FSG) is an important document.
We ask that you read it carefully to ensure that you understand it
PURPOSE AND CONTENT OF THIS FINANCIAL SERVICES GUIDE
The purpose of this Financial Services Guide (FSG) is to provide you with the key information about the services Lodge Partners Pty Ltd (Lodge) and its Representatives offer and is designed to assist you in deciding whether to use the services that we provide. It is prepared in accordance with Corporations Act 2001 and relevant Regulations and standards prescribed by the Australian Securities and Investments Commission (ASIC).
ABOUT LODGE
Lodge holds an Australian Financial Services License (AFSL) issued by the Australian Securities and Investments Commission (ASIC) (AFSL No. 246271) and is an ASX Limited (ASX) Market Participant.
ASSOCIATIONS – EXECUTION & SETTLEMENT SERVICES
Lodge has commercial arrangements wtih Finclear Execution Ltd (FinEx) to provide the services as described in their FSG.
FinEx is a wholly owned subsidiary of FinClear Holdings Ltd and is a related entity of Finclear Pty Ltd FinClear holds its own AFSL (AFSL No 481017) and is an ASX Clearing and General Settlement Participant of ASX who is the provider of third party clearing and settlement services. As FinEx is not an ASX Clearing Participant, it has entered into a Clearing and Settlement Agreement with FinClear who has the clearing and settlement obligations for all ASX transactions executed by FinEx on behalf of its clients.
FinEx is not controlled by any issuers, and our Directors and staff do not act in that or any other capacity within the business of an issuer of financial products.
DOCUMENTATION YOU WILL RECEIVE
To open an account with Lodge you have to complete and sign or electronically acknowledge FinEx Terms of Trade which is available from the FinEx website.
Its acknowledgements, authorisations and consents govern our dealing related services. In particular, you authorise Lodge to deal and do other things on your behalf in accordance with the instructions of your place. We do not expect you to contact FinEx directly and they will only act on the instructions of Lodge.
You may receive Product Disclosure Statements (PDS) or Prospectus if we offer to issue or arrange for the issue of certain financial products. A PDS or Prospectus is an important document and sets out the information needed to make an informed investment decision about whether to acquire the product.
Lodge and FinEx do NOT provide personal advice. We will never provide advice about whether a product is a suitable investment for you personally, and consequently you will not receive Statements of Advice (SOA) from us. If you use your Lodge’s stockbroking services, FinEx execution and settlement infrastructure is used. An account will be established at FinEx in your name. You will have to fill out, sign and return our account opening documentation (You may also have to sign and return certain prescribed product- specific agreements (e.g.ASX Warrants Client Agreement), and receive prescribed Explanatory Booklets or other documentation, before Lodge or FinEx can accept any orders from you for that product(s).
WHAT FINANCIAL SERVICES CAN LODGE PROVIDE
Lodge is authorised by its AFSL to provide general financial advice on the following financial products
• deposit and payment products limited non-basic deposit products (e.g. term deposits);
• derivatives
• foreign exchange contracts
• debentures, stocks or bonds issued or proposed to be issued by a government
• life products including:
o investment life insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds; and
o life risk insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds;
• interests in managed investment schemes including: investor directed portfolio services;
• securities
• superannuation
• financial products limited to: miscellaneous financial investment products
Lodge is also authorised to deal in terms of issuing, applying for, acquiring, varying or disposing of a financial product in respect of the following classes of financial products:
• derivatives;
• interests in managed investment schemes limited to: own managed investment scheme only;
• securities; and
• securities;
• Lodge is authrorised to applying for, acquiring, varying or disposing of a financial product on behalf of another person in respect of the following classes of products:
• deposit and payment products limited non-basic deposit products (e.g. term deposits);
• derivatives
• foreign exchange contracts
• debentures, stocks or bonds issued or proposed to be issued by a government
• life products including:
o investment life insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds; and
o life risk insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds;
• interests in managed investment schemes including: investor directed portfolio services;
• securities
• superannuation
• financial products limited to: miscellaneous financial investment products
to wholesale clients.
Lodge may also underwrite issues of securities and interests in managed investment schemes and an issue of securities. Operate custodial or depository services other than investor directed portfolio services to wholesale clients
By ‘advice’ we mean a recommendation or opinion, written or verbal, about an investment product or strategy. The important difference between general and personal advice is explained in, below.
By ‘dealing’ we mean acquiring and disposing of products on behalf of clients. Our services focus on financial products that may be applied for and settled or redeemed and settled (i.e. they are not listed but are cleared and settled by CHESS) traded or to be traded on ‘live’ markets such as those operated by ASX. In relation to foreign traded products, we have arrangements in place with other stockbrokers operating on major overseas securities or stock exchanges in order to transact on those markets.
Lodge may also provides general advisory and dealing services in relation to other unlisted products such as bank bills,
bonds, other money market instruments, debentures, endowment and other types of warrants, and superannuation and other trust products (e.g. property and equities trusts).
YOUR REPRESENTATIVE
Your representative is authorised by Lodge Partners to provide you with some or all of the financial services under its Licence as noted above. If you do not have a Representative, please contact Lodge Partners so that we may introduce you to a Representative to assist you with your personal circumstances.
WHO DO WE ACT FOR WHEN PROVIDING OUR SERVICES
When providing our adviosry and execution services, we will be acting on your instructions and Lodge will be acting as your agent At times, we may even be acting as agent for another client who is the counterparty to your transaction (e.g. a sale of shares on market between clients).
Before using our services for the first time, we require you to verify your identity as required under the AML/CTF Act and to confirm settlement arrangements.
On occasions we may act ‘as principal’ on our own account and appear on the other side of a transaction with you. In such circumstances we cannot charge you brokerage. We may also accumulate and price-average a number of transactions on one Confirmation. Your consent to these scenarios is granted when you sign the acknowledgements, authorisations and consents in
our New Account Application.
TERMS AND CONDITIONS APPLYING TO OUR SERVICES
All market transactions are executed subject to:
• the Intermediary Services Agreement (ISA) Lodge have with FinEx;
• the acknowledgements, authorisations and consents you agree to when you sign our New Account Application form; the ASIC Market Integrity Rules, the directions, decisions and requirements of ASX, ASX Operating Rules, ASX Clear Rules and ASX Settlement Rules and any other relevant market operator;
• the customs and usages of the relevant market and the correction of any errors and omissions.
You should read the FinEx Terms of Trade carefully before signing. The ISA between FinEx and Lodge ensures all the necessary market related services are available to support the services Lodge provides directly to you.
TYPES OF ADVICE
Personal Advice
Lodge will not provide you with “personal” advice, we will not provide a Statement of Advice (SoA). Personal advice can only be provided to you after considering at least one of your Relevant Personal Circumstances.
We do not provide taxation advice and do not take into account taxation implications. We suggest that you seek independent taxation advice from a registered tax agent.
General Advice
General advice is a rating or assessment based solely on the attributes of the financial product, the portfolio or investment strategy alone without considering whether it is also appropriate for someone’s financial circumstances. Product advice is considered to be General Advice.
INVESTMENT RISK
In general, all investments have associated risks and in most cases, the higher the return, the higher the risk to your investment.
By ‘risk’ we mean the possibility that you will suffer some financial harm by investing. Your preparedness and capacity to carry a particular level or type(s) of risk in pursuit of your investment strategy is a fundamental element of your financial circumstances.
Risk should be considered when developing or reviewing your overall investment and wealth-creation strategy and this is a matter for you to assess and/or discuss with a personal advice practice before acting on any investment.
LODGE REMUNERATION AND BENEFITS
Rates of Brokerage and fees
The rate of brokerage is a rate agreed by you and your nominated Representative and ranges up to 2.5%, depending on the size of the transactions, frequency of dealing and level of services required.
In the case of new issues of securities for which you subscribe, the fee payable to Lodge Partners by the issuing company or underwriter or lead manager would be determined at the time that the details of the new issue are determined and could be expected to range from 1% to 10% and may also be subject to a management fee.
REMUNERATION OF REPRESENTATIVES
Our Representatives may be remunerated by salary and commissions, or fees, or both. They may be eligible to receive a bonus or other employment benefit which is discretionary and based on the achievement of business objectives.
COMMISSIONS AND BENEFITS FROM OTHER PARTIES
From time-to-time Lodge may receive fees for referral business for providing you with financial services; however, if at the time of any transaction with you, we have such an arrangement, you will be informed accordingly.
RELATIONSHIPS AND ASSOCIATIONS WITH OTHER FINANCIAL PRODUCT PROVIDERS
Lodge Partners is an independently owned company, which is not affiliated with any other financial services provider or issuer However, Lodge Partners may recommend financial products that are issued and provided by other financial services organisations and Lodge Partners may receive direct remuneration by way of commission. Such rate of commission can vary greatly and therefore you will be informed of any specific commissions when you contract for such products.
PAYMENT FOR TRANSACTIONS OF SALES AND PURCHASES OF FINANCIAL PRODUCTS
The date on which payment is due is included on the Confirmation and is generally 2 days for securities and warrants and 1 day for options from the date of the transaction. Brokerage and GST are included in the details on the Confirmation. The terms and conditions are printed on the Confirmation.
PRIVACY
At Lodge Partners the privacy of your personal information is important to us. If you would like a copy of our privacy policy please contact us on (03) 9200 7000 or you can access it at our website.
If you have any questions in relation to this FSG or the products and services Lodge Partners offers, you can contact Lodge Partners or your representative via the contact on the bottom of the page.