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The financial services referred to in this Financial Services Guide (FSG) are offered by:
CKA Risk Solutions Pty Ltd (CKA) (ACN: 33 109 033 123 AFS: 276915) Level 5, 22 Delhi Street, West Perth Phone: +61 (0)8 9214 7400, Fax: +61 (0)8 9214 7499, E-mail: This e-mail address is being protected from spambots, you need JavaScript enabled to view it
This FSG sets out the services that we can offer you. It is designed to assist you in deciding whether to use any of those services and contains important information about:
Statement Retail clients are entitled to receive a “Statement” whenever CKA provides any personal advice which takes into account your objectives, financial situation or needs. The Statement will include information about the ($) amount and/or description of fees, commissions, other benefits and any associations that may have influenced the giving of this advice and will be included on the schedule of the Tax Invoice for all retail clients. When you ask CKA to recommend an insurance policy for you, we will usually only consider the policies offered by the insurers or insurance providers that we regularly deal with. In giving you advice about the costs, terms and conditions of the recommended policies, CKA has not compared those policies to other policies available, other than from those insurers we deal with regularly.
Product Disclosure Statement If CKA offers to arrange an insurance policy for you, we will also provide you with, or pass on to you, a Product Disclosure Statement (PDS), unless you already have an up to date PDS from the insurer. The PDS will contain information about the particular policy, which will enable you to make an informed decision about purchasing that policy. Detailed below are some typical questions regarding CKA's FSG, if you have any particular questions, please contact CKA's office.
From what date does this FSG apply? This FSG applies from the 1st January 2009 and will remain valid until a further FSG is issued to replace it.
How can you instruct CKA? You may give CKA instructions by any practical means including verbal, phone, fax, email or in writing, however, CKA recommends that your verbal instructions always be confirmed in writing.
What does CKA expect from you? As a financial services provider, CKA has an obligation under the Anti-Money Laundering and Counter Terrorism Finance Act to verify your identity and the source of any funds. This means that CKA will ask you to present identification documents such as passports and drivers licence. CKA will also retain copies of this information. CKA assures you that this information will be held securely.
Who is responsible for the financial services provided? CKA is responsible for the financial services that will be provided to you, or through you to your family members, including the distribution of this FSG. CKA holds a current Australian Financial Services Licensee no: 276915.
What kind of compensation arrangements are in place and are these arrangements complying? CKA confirms that it has arrangements in place to ensure it continues to maintain Professional Indemnity insurance in accordance with S.912B of the Corporations Act 2001 (as amended). In particular CKA's Professional Indemnity insurance, subject to its terms and conditions, provides indemnity up to the Sum Insured for CKA and its representatives / employees in respect of it's authorisations and obligations under its' Australian Financial Services Licence. This insurance will continue to provide such coverage for any representative / employee who has ceased work with CKA for work done whilst engaged with it.
Does CKA have a relationship or association with any insurers or service provider who will or may issue the policies? CKA does not have any material relationship with any insurer, however we may receive a performance based incentive or bonus over time based on the mix and volume of business placed with certain insurers, it may also receive assistance by way of training or marketing from insurers. CKA is a shareholder of Steadfast Group Limited (Steadfast). Steadfast has exclusive arrangements with some insurers under which Steadfast will receive between 0.5% - 1.0% commission for each product arranged by us with those insurers. These payments are used to operate Steadfast. Depending on the operating costs of Steadfast (including the costs of member services provided by Steadfast to us and other Steadfast shareholders) and the amount of total business we place with the participating insurers in any financial year, we may receive a proportion of that commission at the end of each financial year. As a shareholder of Steadfast, CKA has access to member services including model operating and compliance tools, procedures, manuals and training, legal, technical, banking and recruitment advice and assistance, group insurance arrangements, product comparison and placement support, claims support and group purchasing arrangements. These member services are either funded by Steadfast, subsidized by Steadfast or available exclusively to shareholders for a fee. You can obtain a copy of Steadfast’s FSG at www.steadfast.com.au. From time to time CKA may receive certain ‘hospitality benefits’, such as tickets to sporting events, movies, meals, bottles of wine, hamper etc. The receipt of these benefits may be based upon the volume of business placed with the provider but may also be more of an ad hoc reward. The maximum value of these during the year is unable to be determined. However, the details of such benefits so far received are able to be viewed on a specially maintained Register upon your request.
What kind of financial services is CKA authorised to provide me? CKA is authorised to advise and deal in general insurance products to wholesale and/or retail clients. Sometimes CKA will be acting as the agent of the insurer. This means that CKA represent and act for the insurer, not for you. CKA will tell you when we act under a binder or agency to arrange your insurance or advise you about your insurance needs. Will I receive tailored advice? Yes you will, but not necessarily in all cases. CKA may need information about your personal objectives, details of your current financial situation and any other relevant information, so that we can arrange insurance policies for you, issue insurance policies to you or to give you advice about your insurance needs. In some cases CKA will not ask for any of this information. If CKA does not ask, or if you do not give us all of the information we ask for, any advice you receive may not be appropriate to your needs, objectives and financial situation.
You should read the warnings contained in the on the schedule of your Tax Invoice, or any other warnings that we give you, carefully, before making any decision about an insurance policy.
What information does CKA collect and do I have access to my file? CKA maintains a record of your personal profile, including details of all insurance policies that we arrange for you. CKA also maintain records of any recommendations or advice given to you. CKA will retain this FSG as well as any SOA and/or Statement or PDS that we give to you. CKA is committed to promoting a privacy policy which will ensure the privacy and security of your personal information. A copy of CKA's privacy policy is available on request. If you wish to review your file please contact CKA and arrangements will be made for you to do so.
How will I pay for the services provided? How are the brokerage and/or fees that I will be charged calculated? The brokerage paid by insurers varies on each policy and can range from 0% to 25%, however, as a general rule, it averages about 15% of the base premium before the application of government charges e.g. stamp duty, GST, Fire Service Levy and any other charges.
CKA's brokerage will be calculated based on the formula: X = Y% x P In this formula: X = our brokerage, Y% = the percentage brokerage paid to us by the insurer. P = the amount you pay for any insurance policy (less any government fees or charges included in that amount). CKA may also charge you a broker fee in arranging your insurances and which will also be recorded on our invoice. The broker fee is calculated and based upon the time, complexity, nature and insurer involved in arranging your insurance policy or insurance program. Do CKA receive any other income in arranging my insurances? Premium Funding If CKA arranges premium funding for you it may be paid a commission by the premium funder. CKA may also charge you a fee (or both). The commission that CKA is paid by the premium funder is usually calculated as a percentage of your insurance premium (including government fees or charges). If you instruct CKA to arrange or issue a product, this is when it becomes entitled to commission.
CKA's commission rates for premium funding are in the range of 1% to 2% of funded premium. When CKA arranges premium funding for you, you can ask it what commission rates it is paid for that funding arrangement compared to the other arrangements that are were available to you.
Sunrise Where CKA has used electronic data interface (Sunrise) to process your policy, it may, as a result, receive an additional brokerage amount of between 1.0% and 2.0% for utilising the system. This amount will be included in the brokerage amount declared in the schedule of your Tax Invoice and is not an additional charge to you.
Interest All monies paid to CKA for insurance premiums are held in a government approved trust account until payment is made to the relevant Insurers. CKA may earn interest on monies held in the trust account and any interest earned is for the benefit of CKA.
QBE Insurance (Australia) Limited CKA has a profit share arrangement with QBE Insurance (Australia) Limited in relation to developing and issuing contracts of insurance through QBE Intermediary Distribution. Profit share amounts are calculated based on total Net Profit or (Loss) over any one year. The amount is capped at 12% of net profit and cannot exceed 5% of gross written profit.
What if I want to cancel my policy or my insurance program? You may request cancellation of your policy or policies at any time (in writing), in which case CKA would on your behalf, request cancellation and a refund of the unexpired portion of the premium from your insurer. Some policies may be “minimum premium” policies in which case refunds may not be allowed by insurers. In the event that you are entitled to a refund and the insurer allows this, we will pass this refund onto you (less any brokerage and broker fee charged by us) as soon as it is received by CKA from the insurer.
What about refunds of premiums? If you are entitled to refund of premium from the insurer (eg change of your motor vehicle results in a credit), CKA will refund the premium (less any brokerage and broker fee charged by us) to you as soon as this is received by CKA from the insurer. CKA does not refund brokerage or broker fees as these have been earned by CKA in placing and servicing the relevant policies, irrespective of the period they have been in force.
Mis-Statement of Premiums CKA take all reasonable effort to ensure the premiums (including all statutory charges) quoted to you are correct. The statutory charges in particular, are subject to constant change and vary markedly on a “state by state” basis. Some charges, such as Fire Service Levy (in NSW and Victoria) are subject to retroactive adjustments 12 months in arrears. In the event that a premium is incorrectly quoted by CKA or is subject to change (ie NSW Fire Service Levy), CKA reserves the right to amend the premium to the correct amount for which you are liable to pay.
What should I do if I have a complaint? Tell CKA about your complaint and it will immediately address and endeavour to resolve it quickly. If your complaint is not satisfactorily resolved within 20 working days, please put your complaint in writing together with full details of the matter and send it directly to our Complaints Officer, Mr Naser Kerimi. He will independently address and try to resolve your complaint within a short period of time of receiving your written complaint. If your complaint cannot be resolved to your satisfaction by CKA, you have the right to refer the matter to the Financial Ombudsman Service (FOS), who you may directly contact on telephone 1300 780 808 or www.fos.org.au,
Financial Services Guide (V8) 01/01/2009
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