FINANCIAL SERVICES GUIDE – JULY 2015

Introduction


This Financial Services Guide (“FSG”), dated 24 May 2015, is designed to assist you in deciding whether to use any of the financial services offer by APP Securities Pty Ltd ("APP Securities") – Australian Financial Services License (“AFS License”) No. 307706.

Any financial product or service described in this FSG is considered to be regulated by the Australian Securities and Investments Commission (“ASIC”) under the Australian AFS License regime and provided in Australia only.

APP Securities may be referred to within this document as APP Securities or simply by the use of the words ‘us, we or our.’ Any APP Securities FSG dated prior to 14 July 2015, is replaced in whole by this document.

The purpose of the FSG is to explain
  • What type of advice you might receive from us.
  • How you can give us instructions.
  • The kinds of financial services that we provide and the financial products to which those services relate.
  • Who we act for in providing financial services.
  • Risks involved when using financial products and services.
  • How we, our staff and other relevant persons are paid for the financial services offered.
  • The associations or relationships between us and any related persons and issuers of financial products that might influence how we provide financial services.
  • How complaints against us are dealt with.
  • Where to find the APP Securities Privacy Statement.

What type of advice you might receive from us

We do not provide personal financial product advice to our clients. Any general financial advice that we provide has been prepared without taking into account any of your personal investment objectives, financial situation or needs. Therefore, before acting on any advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

There may be a product disclosure statement or prospectus, terms and conditions, an outline of fees as well as a document outlining specific risks for the financial products discussed by our staff members or communicated via written, verbal or electronic means. If provided to you, the purpose of these documents is to provide you with general information about the financial product to provide you with background information in relation to the acquisition and features of that product. You should obtain a copy of the product disclosure statement, prospectus or related product or service documents before making any decision about whether to acquire the security, product or service.

How you can give us instruction

We accept instructions from you by telephone, email and direct market access through IRESS.

The kinds of financial services that we provide and the financial products to which those services relate

For retail and wholesale clients, we are authorised to carry on a financial services business to:
  • Provide financial product advice on: basic deposit products and deposit products other than basic deposit products; derivatives; interests in managed investment schemes excluding investor directed portfolio services and securities.
  • Deal in a financial product by: applying for, acquiring, varying or disposing of a financial product on behalf of another person in respect of basic deposit products and deposit products other than basic deposit products, derivatives, interests in managed investment schemes excluding investor directed portfolio services, and securities; underwriting interests in managed investment schemes and an issue of securities.
  • Provide custodial or depository services: operate custodial or depository services other than investor directed portfolio services.

Who we act for in providing financial services

We act for you on our own behalf when we provide the financial services detailed above and not as an agent or representative for anyone else. We arrange for our clients to trade in securities through our arrangement with a third party.

Risks involved when using financial products and services

The securities that APP Securities will advise and deal in include only listed equities (or shares) and listed equity derivatives at this time. All types of securities carry financial risks.

Fully-paid equities may lose up to 100% of their initial purchase value, or 100% of your initial investment. Certain types of equities can also carry a future liability, meaning you might be required to contribute future payments under the terms of the security being traded.

Listed equity deriatives may lose more than 100% of any initial margin paid, or more than 100% of your initial investment, when a position is initiated in these products on your behalf.

How we, our staff and other relevant persons are paid for the financial service offered

APP Securities and its staff are remunerated in the following ways:
  • Dealing: Transactions in securities such as shares are conducted by our third-party broking partners. In most cases, these broking partners will rebate APP Securities fees, interest, financing, spreads and commissions that are paid by APP Securities clients when dealing in securities and derivatives. For example, a APP Securities dealing client might purchase shares that incur a brokerage fee of $100; up to 100% (or in this example $100) of this fee may be rebated to APP Securities.
  • Deposit products: We may hold your money in an APP Securities Trust Account where relevant and will do so in accordance with the Corporations Act 2001 (Cth) (“Corporations Act”). APP Securities may receive, derive and retain any interest or income generated from a APP Securities Trust Account. For example, if a client deposits $10,000 in the a APP Securities Trust Account to trade shares, the bank may pay APP Securities a percentage of the interest earned on that account of between 0 and 3%. On $10,000 this would be $300.00 on an annualised basis.

The associations or relationships between us and any related persons and issuers of financial products that might influence how we provide financial services

If a client is introduced to APP Securities by another AFS Licensee, APP Securities may provide a one-off fee and/or percentage commission of client revenue to that licensee. This fee could be up to 50% of the commission paid. For example, if the commission paid is $100, the fee could be up to $50.

If APP Securities introduces a client to another AFS Licensee, APP Securities may receive a one-off fee and/or percentage of commission of client revenue from that licensee.

Employees

Our Advisors are remunerated on the basis of a salary and/or a variable component based on the amount of brokerage and commission they generate. The variable component is determined by the level of brokerage received by APP Securities. As a general rule our advisors can receive between 0% and 60% of the fees APP Securities receives.

How complaints against us are dealt with

If you have a complaint or concern, you should contact the Complaints Officer on +61 2 9226 0000 or by email on clients@appsecurities.com.au . We will acknowledge receipt of the complaint and aim to respond to all matters within 30 days however we must give you a final response within 45 days of receiving your complaint. If your complaint or concern has not been resolved satisfactorily, you may wish to contact the independent industry arbiter, the Financial Ombudsman Service (FOS). The contact details for FOS are set out below.

Financial Ombudsman Service
GPO Box 3 MELBOURNE VIC 3002
Telephone: 1300 78 08 08
Facsimile: +61 3 9613 6399
Email: info@fos.org.au
Website: http://www.fos.org.au

Compensation arrangements/professional indemnity insurance

APP Securities has Professional Indemnity insurance in place, which APP Securities considers is adequate to meet the requirements of Section 912B of the Corporations Act to support its obligations in relation to compensation. This includes conduct of current and former representatives and employees.

Privacy

For information of how we use and disclose your personal information, collected from you to ensure we are able to give you advice, please refer to our privacy policy on our website referred to below.

Contact details

APP Securities Pty Ltd
Level 17, 60 Margaret Street
Sydney, New South Wales 2000

Telephone: +61 2 9226 0000
Facsimile: +61 2 9281 7611

Email: accounts@appsecurities.com.au
Website: http://www.appsecurities.com.au

APP Securities is wholly owned subsidiary within the AIMS Financial Group and is a related party to the Asia Pacific Stock Exchange (“APX”).