What’s a Disclosure Statement?
Why is it important?
Why are there different types of advisers?
What are the different types of advisers?
What are Category 1 or Category 2 Products?
How do I decide which advisers or financial providers to use?
What does an adviser need to tell me before I sign up?
What do I do if something goes wrong?
Any more questions?
What’s a Disclosure Statement?
A Disclosure Statement is a special document put together by your bank (or other financial service provider) that lets you know which financial products they offer financial adviser services on. It also tells you about different people you can talk to if you need more information, or if things go wrong.
Why is it important?
Whenever you get advice about your finances, you need to know that the people you’re talking to are qualified to help. A Disclosure Statement tells you more about this, and explains which type of adviser you’re talking with. It may assist you in choosing the financial adviser you wish to use.
Why are there different types of advisers?
There are many different financial products and some are more complicated than others. Some financial advisers hold different types of licenses and this affects the type of advice they can provide. Some look after more straight-forward products like bank accounts and credit cards (called ‘Category 2 products’), others are licensed to help with more complicated things like investments (called ‘Category 1 products’). There are also advisers who can offer a full investment planning service across all categories and products.
What are the different types of advisers?
The types of advisers you might come across at ABC Bank are Qualifying Financial Entity (QFE) advisers and Authorised Financial Advisers (AFAs).
- What’s a QFE?
A QFE is a Qualifying Financial Entity. This is a business that is authorised by the FMA to provide financial adviser services. ABC Bank is a QFE and a member of the QFE group known as ABC Bank QFE Group. As a QFE, ABC Bank takes responsibility for the conduct of the financial advisers it employs and any employees of other members of the ABC Bank QFE Group. - QFE Advisers
A QFE adviser is an employee of a QFE or a member of the QFE Group who is not an AFA. Anyone who can help you out with your banking at ABC Bank will be a QFE adviser. However, if you require assistance with certain investment products we may refer you to an AFA. - Authorised Financial Advisers (AFAs)
AFAs have met certain qualification requirements and are authorised by the Financial Markets Authority (FMA). They can advise on the widest range of products, including both Category 2 products and Category 1 products. They may also be able to provide an investment planning service. Their license will set out the types of products and services they are authorised to offer. ABC Bank provides AFA services to customers.
What are Category 1 or Category 2 Products?
- Category 1 products have more of an investment focus and include securities, land investment products, futures contracts and investment-linked insurance contracts.
- Category 2 products are generally less complicated. They include term deposits, transaction and savings accounts, home loans, personal loans, personal overdrafts, personal credit cards, most personal insurance and more.
How do I decide which advisers or financial providers to use?
That’s totally up to you. Your banking is personal and it’s important to bank with someone that you feel comfortable with. You may consider the disclosure you get from different advisers when deciding who to choose.
What does an adviser need to tell me before I sign up?
Before you get any financial advice, your adviser needs to explain what type of adviser they are and either give you a disclosure statement, or make sure you already have one.
What do I do if something goes wrong?
If you have a problem, concern, or complaint about our products or financial adviser services, please let us know so we can try and fix the issue. You can do this in several ways as detailed in our Disclosure Statement.
Any more questions?
If you have more questions about our Disclosure Statement, just ask in any branch or call +19293602951. Or if you’d like to know more about Disclosure Statements in general, get in touch with the FMA.
