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FSG

Part A - Financial Services Guide

1. About this Financial Services Guide 

This Financial Services Guide ('FSG') has been prepared by Præmium Australia Pty Limited ACN 117 611 784 (Præmium) in accordance with the requirements of the Corporations Act 2001 (Cth), and it contains information to assist Australian residents in determining whether they wish to use any of the services or products (including any financial services) provided by Præmium and its representatives.

This FSG is dated 30 August 2010.

The matters covered by the FSG include:

2. Who are we, and how can you contact us?

Præmium is a wholly owned subsidiary of Præmium Limited.

Præmium is licensed under the Corporations Act, Australian Financial Services Licence No 297956, to provide certain financial services.

Præmium does not issue any financial products.

Præmium:

  • Is the promoter of the Praemium SMARTwrap Scheme, a financial product issued by Powerwrap Limited ABN 67 129 756 850).Powerwrap holds Australian Financial Services Licence No. 329829. The Praemium SMARTwrap Scheme is a registered Managed Investment Scheme (‘MIS’) under the Corporations Act 2001 (Cth) (ARSN 137 053 073).
  • Provides a system for reporting on and administering investment portfolios, known as V-Wrap, and related tools (including access to stock market data) which can be accessed by financial advisers, stockbrokers, accountants and professional portfolio administration providers using the internet either via Præmium's own website or the websites of its clients (using interfaces known as ‘V-Wrap’ or ‘V-Wrap Adviser’) or using Præmium's internet application (V-Wrap Adviser);
  • Provides Separately managed accounts platform technology, which is used by licensed operators of managed investment schemes to deliver SMAs (that is, separately managed accounts structured as managed investment schemes).

Præmium does not provide services directly to retail investors and will not accept any instructions from them. Accordingly, if you have questions about Præmium, Praemium SMARTWrap, the V-Wrap System or any of its components, or wish to issue any instructions in respect to your investment portfolio you should contact the adviser who provides you with access to our portfolio administration service.

If you wish to contact Præmium, you can do so at any of the following:

  • Street Address: Level 1, 406 Collins Street, Melbourne VIC
  • Mailing Address: PO Box 322 Collins Street West, Melbourne, Vic 8007
  • Telephone: +61 3 8622 1222
  • Facsimile: +61 3 8622 1200
  • Email: mail@praemium.com
  • Website: www.praemium.com.au

3. What Financial Services is Præmium authorised to provide?

Praemium's AFSL authorises it to carry on a financial services business to:

  • the provision of general financial product advice for the following classes of financial products:
    • deposit and payment products limited to:
      • basic deposit products;
    • interests in managed investment schemes including:
      • investor directed portfolio service, and
    • securities; and
  • deal in a financial product by
    • arranging for another person to apply for, acquire, vary or dispose of financial products in respect of the following classes of financial products:
      • securities

to retail and wholesale clients.

In respect to any financial advice Præmium provides, you should note the following:

 

  • Taxation is only one of the matters that must be considered when making a decision on a financial product; and
  • You should consider taking advice from the holder of an Australian Financial Services License before making a decision on a financial product

Præmium holds an AFSL because some of its activities may be financial services as defined by the Corporations Act. Præmium has no intention of using its licence for any purpose other than to provide the services within its area of expertise, namely, providing online portfolio administration services and online execution services only in securities to retail and wholesale clients and therefore comply with its obligations under the Corporations Act.

A special note about Taxation: Reports generated by Præmium's V-Wrap System may assist a qualified professional in respect to ascertaining liabilities, obligations or entitlements attaching to an investment portfolio for a taxpayer under a taxation law. If you are not a Registered Tax agent you should consider seeking the advice of a Registered Tax Agent before using any reports generated by the V-Wrap System for that purpose. If a report generated by the V-Wrap System has been provided to you by a Registered Tax Agent you should ensure that you take into account any additional advice or materials provided by your adviser before using that report in connection with the preparation of a tax return.

4. Who will provide the services to you?

Præmium provides services to advisers and not for you or for any product arrangers. It promotes the SMARTwrap Scheme as a component of its SMARTwrap Investments offering, which is a bundle of products and services which enable AFS Licensees and their representatives to provide a range of investment products to their clients efficiently by combining both wrapped managed investment scheme investments together with consolidated reporting.   Praemium promotes the SMARTwrap Scheme for Powerwrap Limited and provides technology services to BlackRock, but does not provide services to any other issuers. Præmium has authorised its customers (financial advisers, stockbrokers, accountants and professional portfolio administration providers) to allow their investor clients and other third parties involved in advising those investor clients to access and, in some cases to use, the V-Wrap System. Præmium acts in its own right.

5. Why is this guide provided to you?

Under the Corporations Act, Præmium may be deemed to provide general financial product advice to you as a consequence of the way that you may use the functionality of the portfolio administration service, even though we do not intend it to be used for that purpose and we do not deal directly with you. Præmium may also provide arranging services to your adviser or broker and, depending on the way that your broker provides you with access to V-Wrap Investments or V-Wrap Adviser, arranging services may be provided indirectly to you.

You have access to Præmium's services through third party intermediaries, including financial planners, accountants and stockbrokers. Præmium will not ever accept instructions in relation to our services directly from you. If you wish to change the way in which your portfolio is administered or the persons who have access to it, you need to instruct the person who gives you access to it. This will be your financial planner, accountant, stockbroker or portfolio administration provider. General advice provided by Præmium does not constitute personal advice as it does not take into account your personal circumstances, financial needs or objectives.

6. How is Præmium remunerated?

Præmium does not receive commissions for the use of its portfolio administration services. Where Præmium provides the V-Wrap service to an intermediary, it is remunerated by the payment of a subscription fee which is based on the number of investment portfolios which that intermediary administers using Præmium (and the level of services attaching to those investment portfolios). Subscriptions are paid as agreed with Præmium's individual clients.

Præmium does not receive commissions for the use of its arranging services. It charges its clients a fee based on the number of users who have access to the service or the number of trades executed using the services.

Praemium does not receive commissions for the promotion of the SMARTwrap Scheme.  However, as provider of underlying wrap platform technology to the issuer of that technology, Praemium is paid a fee by the issuer of the scheme.  The fee, after achieving a minimum value, is based on a percentage of the funds which are administered and/or managed on that platform.

7. Præmium's Staff

Præmium employees receive a salary and do not receive remuneration, commissions or other benefits from any product issuers. They may be eligible for an annual performance payment which is discretionary and based on reaching agreed performance levels.

8. Are there any relationships that exist that may influence us when we provide advice?

No. 

9. Making Complaints

Should you wish to lodge a complaint about the service provided by Præmium you should lodge a formal complaint directly with Præmium. This can be done by writing to the Company Secretary, Ms Cathryn Nolan , Præmium Australia Pty Limited, PO Box 322 Collins Street West, Melbourne, Vic 8007, or by email to cathryn.nolan@praemium.com.au or phoning her on 03 8622 1222. The Company Secretary is a senior member of the Management team and she is a director of Præmium's parent company.

We will follow our Customer Complaints and Dispute Resolution Procedure which is located on our website at http://www.praemium.com.au/pdf/090713_CustomerComplaintsDisputeResolutionProcessv30_Definitive.pdf and if you are not satisfied with the response to your complaint provided by the Company Secretary, a dispute arises and you may ask for the matter to be referred to Praemium’s Chief Operating Officer - Australia, Christine Silcox,–who is a director of Praemium Australia Pty Ltd. She is a senior member of the management team who has the authority to resolve your dispute. In addition she is able to refer the matter to the company’s Audit, Risk & Compliance Committee and to confer with the Group CEO if she believes it appropriate to do so.

Should the dispute remain unresolved after being referred to the Internal Audit Manager, you refer the matter to the Financial Ombudsman Service (FOS) (http://fos.org.au/centric/home_page.jsp) as described in the Customer Complaints and Dispute Resolution Procedure. You may request further information about the complaints scheme at any time. FOS may be contacted on 1300 78 08 08.

10. Compensation Arrangements

Præmium has in place Financial Institutions Insurance which Praemium considers is adequate to meet the requirements of Section 912B of the Corporations Act having regard to its intention not to use its Australian Financial Services Licence for any purpose other than to provide the services within its area of expertise, namely, providing online portfolio administration services and online order management services only in securities to retail and wholesale clients, and therefore comply with its obligations under the Corporations Act.