Financial Advice Provider Disclosure Statement

 Please see below some important disclosures in relation to:

  1. JBWere’s Financial Advice Provider licence,
  2. the nature and scope of the advice that we provide to our clients,
  3. potential conflicts of interest that may occur in the provision of financial advice,
  4. the type of fees we charge, and 
  5. how you can complain if you are unsatisfied with our services.


LICENCE STATUS AND CONDITIONS

JBWere (NZ) Limited (JBWere or we or our or us) holds a licence issued by the Financial Markets Authority to provide financial advice services. JBWere will provide financial advice directly to you or through financial advisers or nominated representatives (together referred to as advisers) employed by us to give financial advice on our behalf.


NATURE AND SCOPE

JBWere and our financial advisers provide a range of financial advice services to suit different client needs and circumstances. 

We primarily offer personalised portfolio management services, in addition to targeted portfolio advice, transactional advice, and execution-only (non-advice) services. 

Through our services, we provide advice on a wide range of financial products, including:

  • Listed and unlisted equities (domestic and international)
  • Fixed interest investments, such as bonds
  • Cash and term deposits
  • Managed funds
  • Alternative investments, such as hedge funds and private equity
  • Currency hedging through the JBWere hedging service
  • Tailored investment solutions to meet your investor visa requirements (however we do not provide New Zealand immigration or visa application advice)
  • Margin lending facilities

From time to time, you may receive financial advice from a nominated representative in our Investment Strategy & Research Group. The advice from these employees will be general in nature and not take into account your personal circumstances, unless otherwise explicitly agreed as part of your service.  

Once you choose your scope of service, we will provide you with a document outlining the full nature and scope of the services we agree to provide to you, the fees payable in connection with the services and extent to which your personal circumstances are taken into account. 

JBWere and our advisers do not advise on any of the following:

  • Insurance
  • Taxation
  • Law or regulation
  • Estate planning or structuring
  • Direct property or unlisted property trusts
  • Physical assets (including real estate)

In addition, JBWere and our advisers do not provide financial advice in relation to any financial products for which we do not have an adequate basis for providing advice.

FEES, EXPENSES OR OTHER AMOUNTS PAYABLE

JBWere charges fees in relation to the services we provide. Fees may be charged as follows:

  • on a funds-under-management basis (involving a regular percentage-based fee deducted from your investment portfolio to cover custody, portfolio management and monitoring services), and / or 
  • on a transactional basis (such as brokerage, when  investments are bought or sold), depending on the type of service provided to you, and / or
  • Margins may be taken on cash balances, foreign exchange transaction and term deposits, and /or
  • Additional fees may be payable.

While the above outlines the types of fees you may be charged, the fees relevant to your chosen service will be disclosed in writing and confirmed with you before we commence any service. 

CONFLICTS OF INTEREST / COMMISSIONS AND OTHER INCENTIVES

Outlined below are the various relationships we have that may potentially give rise to a conflict of interest for us and a brief explanation of how these conflicts will be managed.

Custodian

JBWere is an associated person of JBWere (NZ) Nominees Limited (JBWere Nominees), which provides custodial services to some of our clients. JBWere Nominees charges a fee for its services, and JBWere receives a fee from JBWere Nominees in relation to those services. 

Details of the relevant custodiam (that holds assets on your behalf in custody) and the applicable fees will be clearly disclosed prior to the commencement of the agreed scope of service.

Margin Lending

JBWere is an associated person of Margin Lending (NZ) Limited which provides margin lending services to our clients and charges a fee for those services. The fees that JBWere charges on a funds-under-management basis may increase as the client portfolio size increases by the loan amount. The variable component of your adviser’s revenue would therefore also increase.

Other related companies

JBWere is a wholly owned subsidiary of FirstCape Group Limited (FirstCape) whose indirect shareholders are: 

National Australia Bank (NAB) 40.5%
Investment funds managed and/or advised by Pacific Equity Partners (PEP) 31.5%
Jarden Group Limited 18.0%
FirstCape Trustee Limited 10.0%


NAB, PEP, and FirstCape’s subsidiary Harbour Asset Management, are issuers of financial products that may be recommended to you. NAB and BNZ may be a lender to an entity relevant to your investment. From time to time, JBWere may recommend a financial product:

  • issued by a member of the FirstCape Group; or
  • for which a member of the FirstCape Group or their related companies may be part of the offering syndicate (including a subsidiary of Jarden Group Limited, Jarden Securities);

and those companies may receive fees, and we may be paid a commission. Also, Jarden Securities is one of several Trading and Clearing Participant’s that JBWere uses to execute trades for JBWere clients, and it acts as custodian for certain clients.

Shareholding

Your adviser may be a minority shareholder of FirstCape Group or Jarden Group Limited, which means they may receive dividends or other distributions. JBWere has processes in place to monitor for suitability of the products recommended to you. Any payment of dividends or other distributions to shareholders has no effect on the service provided.

Adviser remuneration

JBWere pays its advisers a salary and a discretionary variable remuneration payment. In most cases, the discretionary variable remuneration is determined by the fees JBWere receives from the clients of that person in total and it is subject to certain measures of good conduct being met. JBWere has absolute discretion whether to pay any variable remuneration and the amount of any payment.

Brokerage

Some clients pay fees based on brokerage. This means that the adviser’s remuneration increases with the number of trades that the client carries out (as opposed to a funds-under-management based fee, where an adviser’s remuneration increases consistent with the increase in the value of the client’s portfolio).

All JBWere clients will receive written disclosure of the fees agreed with JBWere and how they are calculated.

Fees

JBWere may receive commissions, rebates, fees or brokerage from issuers of managed funds, fees from corporate issuers of securities, commissions or other fees payable on the sale of financial products to you and these will be disclosed to you.

Our advisers may attend conferences and seminars, and other events subsidised in whole or in part by product providers. Eligibility to attend is dependent on meeting our internal quality standards and accreditations, and may also be based on business factors such as volume of business referred.

Managing conflicts of interest

JBWere takes a range of approaches to managing conflicts of interest. These depend on the nature of the relevant conflict but are all designed to ensure we are always placing your interests first in whatever we do. 

The ways in which conflicts are controlled or managed are as set out below:

  • Controlled: Processes are put in place to reduce the impact of a conflict. An example of a control is to ensure that knowledge of the conflicting information is shared only with those who need to know within JBWere.
  • Disclosure: The conflict is disclosed to relevant clients in a clear, concise and effective way in order to enable the client to make confident and informed decisions. Wherever possible, the disclosure is made in writing.
  • Avoid: Where the conflict cannot be managed effectively through controls and/or disclosure, it must be avoided. If the conflict is likely to have a serious impact on clients, JBWere will refrain from providing the financial service or activity.

To ensure JBWere’s advisers prioritise clients’ interests above their own:

  • Advisers undergo training on how to manage conflicts of interest.
  • Advisers follow an advice process that ensures recommendations are made on the basis of each client’s goals and objectives (if relevant to the scope of service agreed with the client).
  • JBWere has monitoring in place to check that conflict management processes are followed, and advice is suitable for the client (if relevant to the scope of service agreed with the client).
  • All employees are subject to our Code of Conduct to ensure personal and business interests never interfere with the employees’ ability to make sound, objective decisions.

INTERNAL COMPLAINTS PROCESS

If you are not satisfied with our financial advice services, you can make a complaint by emailing ComplaintsNZ@jbwere.co.nz, or by calling 0800 555 555 or +64 9 927 1200. You can also write to us at PO Box 3394, Wellington 6140.

When we receive a complaint, we will follow our internal complaints process:

  • If possible to resolve your complaint to your satisfaction on the spot, we will do so.
  • We will immediately notify our Head of Advisory and the Head of Legal, Risk and Compliance who will ensure that the matter is notified and assessed accordingly.
  • If we are unable to resolve your complaint within 2 working days of receiving it, then we will contact you to formally acknowledge your concerns and let you know how we intend to resolve them before the end of the second working day.
  • We may need to contact you to get further information about your complaint to help us understand your concerns and how best to resolve them.
  • We aim to resolve complaints within 20 working days of receiving them. If we cannot, we will contact you within that time to let you know we need more time to consider your complaint and work out how best to resolve it for you.

You will be contacted by phone or email to let you know how we propose to resolve or otherwise deal with your complaint.

EXTERNAL DISPUTE RESOLUTION SCHEME

If JBWere cannot resolve your complaint, or you are not satisfied with the outcome of our internal process, you can contact Financial Services Complaints Ltd (FSCL) - A Financial Ombudsman Service.

JBWere is a member of FSCL which provides a free, independent dispute resolution service that may help investigate or resolve your complaint if we have not been able to resolve your complaint to your satisfaction.

You can contact FSCL by emailing complaints@fscl.org.nz, or by calling 0800 347 257 (free phone). You can also write to them at PO Box 5967, Lambton Quay, Wellington 6145. For more information, please visit their website at https://fscl.org.nz/.

DUTIES

JBWere and our advisers have duties under the Financial Markets Conduct Act 2013 and the Code of Professional Conduct for Financial Advice Services (Code) in relation to giving financial advice.

We are required to:

  • give priority to your interests by taking all reasonable steps to make sure our advice is not materially influenced by our own or any of our financial adviser’s or related parties’ interests
  • exercise care, diligence, and skill in providing you with advice
  • meet applicable standards of competence, knowledge and skill under the Code
  • meet standards of ethical behaviour, conduct and client care under the Code.

More information is available by contacting us, or by visiting the Financial Markets Authority website.