Financial Adviser Disclosure Statement

The following information is provided to help you understand what kind of financial advice I can give you and
other key parts of the service. It is important you read this document in full.

Contact information

Name: Simon Parker
Phone 021 090 30250
Email: [email protected]
FSPR #: 774944
Address: 30 Ponsonby Road
Grey Lynn
Auckland
1011

Licencing information

I am a Financial Adviser; you can find me on the Financial Service Providers Register. I work as a Financial Adviser for The New Zealand Home Loan Company Limited t/a Auckland Metro (“NZHL Franchise”) and my services are provided on behalf of the NZHL Franchise.

The New Zealand Home Loan Company Limited t/a Auckland Metro is an Authorised Body operating under The New Zealand Home Loan Company Limited (“NZHL”) (FSP30301). NZHL is licenced as a Financial Advice Provider with the Financial Markets Authority (FMA).

NZHL, The New Zealand Home Loan Company Limited t/a Auckland Metro and I are regulated by the FMA.

Nature & Scope of financial advice I can give

I can give financial advice on products from the following providers.

Home Loan

  • New Zealand Home Loan product (provided by ASB)
  • New Zealand Home Loan product (provided by Kiwibank)

Personal Insurance

  • AIA
  • Fidelity Life
  • nib
  • NZHL Life

Fees and Expenses

When your loan settles with an NZHL product provider you will pay a fee of $400 to the NZHL Franchise for new lending and $250 for additional lending. How this fee is to be paid will be discussed with you at the time of application.

Commission Clawback Fee: NZHL has an obligation to repay all or a portion of the upfront commissions if, for whatever reason, your loan is repaid or amended (including moving to another provider) within 12 months (“clawback period”) from the date the loan settled. This is referred to as a “Clawback”.

If you move, cancel, or amend your loan within the clawback period without giving me the opportunity to assist you, you may be charged a fee by the NZHL Franchise. The fee is based on my time assisting you to get the loan approved and implemented. The fee is based on my hourly rate ($200 per hour incl. GST), with a maximum charge of the lower value of the clawback or $3,000 (incl. GST).

There are no fees payable for insurance products.

Commissions

Home Loan:

NZHL, the NZHL Franchise, and I are paid an upfront commission by the lender after your loan settles. The
commission varies depending on the type of loan and the loan amount. This one-off payment received by the
NZHL Franchise is calculated on the settled loan amount and NZHL Franchise shares it with me.

The maximum commissions received by the NZHL Franchise are listed below.

  • New Zealand Home Loan product (provided by ASB) – 0.60%
  • New Zealand Home Loan product (provided by Kiwibank) – 0.60%

NZHL, and the NZHL Franchise also receive an ongoing ’Service Commission’ (also known as trail commission) while your loan is active with NZHL. This is for the service and support the NZHL Franchise and I provide to you. Service Commissions are paid to the NZHL Franchise they are: 0.12% for ASB and Kiwibank and 0.10% for Liberty and Resimac, percentage is of the loan balance annually until the loan is repaid.

Personal Insurance:

NZHL, the NZHL Franchise and I are paid an upfront commission by the insurer after your insurance policy is issued. The commission is variable and will depend on the insurance product, and insurer. Commission is calculated based on the annual premium you pay and often has exclusions. Below are details on how the commissions are calculated. The maximum commissions received by the
NZHL Franchise are listed below.

  • Life – 150% of the annual premium.
  • Health Insurance – 100% of the annual premium.
  • Other (including funeral funds and golden life plans) – 30% of the annual premium.
  • Add Ons – Some insurance suppliers will pay commission of between 5% and 10% in addition to the commission above if additional benefits are added to your health policy (for example Dental cover).

Commissions may be less for various reasons including because of alterations to the standard terms of the policy or additional cover for family members.

Service Commission – NZHL and the NZHL Franchise will also receive ongoing service commission (also known as trail commission) from the insurer for the service and support the NZHL Franchise and I provide to you. Service commissions are paid to the NZHL Franchise if your policy is active, and commission rates vary depending on the product. On some policies, such as Life and Health, ongoing commissions are only paid after the policy has been in place for a year. The maximum rate at which the service commission is paid to the NZHL Franchise is 4% of the annual premium.

Adviser remuneration:

I am also remunerated through a salary paid by the NZHL Franchise I work for. I may be eligible to receive other variable remuneration based on business and individual performance.

Referral remuneration:

NZHL, the NZHL Franchise and I cannot provide financial advice on Fire and General Insurance. The NZHL Franchise and I can refer you to Tower Insurance Limited (“Tower”) or Vero Insurance New
Zealand Limited (“Vero”) any Fire and General Insurance requirements you may have. If a Fire and General Insurance policy is issued, The NZHL Franchise will be paid new business commission as well as
commission on any policy renewal. These payments are received by the NZHL Franchise and may be shared with me.

The commission rates vary depending on the product listed below:

  • House and Contents – 12%
  • Motor Vehicle – 9%
  • Rural and Business – 9%
  •  Earthquake – 4%

The NZHL Franchise and I can refer you to FG Link for any Commercial Insurance requirements you may have. If your commercial insurance policy is issued, the NZHL Franchise will be paid upfront commission as well as commission on any policy renewal. These payments are received by the NZHL Franchise and may be shared with me. These payments are 25% of any such commission paid to FG Link.

The NZHL Franchise and I can refer you to an NZHL Advisory financial adviser who has access to other product options. If you are referred to NZHL Advisory and you take out a loan with their assistance, NZHL Advisory will pay the NZHL Franchise a referral fee of $500 or 50% of the upfront commission paid, dependent on the type of loan and the loan amount. This payment is received by the NZHL Franchise and may be shared with me.

The NZHL Franchise and I can refer you to Approved Suppliers for commercial group insurance requirements your company may have for employees. If a commercial group insurance policy is issued, the
NZHL Franchise will be paid upfront commission as well as commission on any policy renewal. These payments are received by the NZHL Franchise and may be shared with me. These payments are 75% of any such commission paid by the Approved Supplier.

Conflicts of Interest

NZHL is owned by Kiwi Group Capital Limited. Kiwi Group Capital Limited also owns Kiwibank Limited who are a home loan provider for NZHL. NZHL owns NZHL Mortgage Advisory Limited (“NZHL Advisory”) who you may be referred to by an NZHL franchise or financial adviser. NZHL also has a majority shareholding in Link Financial Group 2022 Limited. Link Financial Group 2022
Limited has a majority shareholding in Insurance Link General Limited (“FG Link”) who you may be referred to by an NZHL franchise or financial adviser.
NZHL will receive payment from third parties in connection with the services I provide to you on behalf of the NZHL Franchise.

NZHL, the NZHL Franchise and I do not have any volume-based performance targets with any of the providers.

To manage conflicts of interest, loan and insurance providers are selected based only on your needs and circumstances. I follow NZHL’s advice process to ensure my advice is tailored to your individual needs. NZHL also provides regular training on how I can best manage any conflict of interest to ensure your needs are prioritised. The NZHL Franchise I work for may pay me, in part, based on volume-based performance targets. To manage risks related to that the NZHL Franchise ensures that the calculation of such pay takes into account the achievement of client-focused measures including good conduct and service.

Privacy

NZHL and the NZHL Franchise recognise the importance of protecting your privacy and complies with the Privacy Act 2020 and the Code of Professional Conduct for Financial Advice Services. We will collect, use, disclose, store, and protect your personal information in accordance with the NZHL privacy policy. To know more on how your personal information is treated please read the privacy policy at https://nzhl.co.nz/privacypolicy-2023/