Financial Services Guide

This Financial Services Guide (FSG) is issued by KOSEC Group on 28^th of February 2025, by:

KOSEC Group Pty Ltd
Australian Financial Services Licence (AFSL) No. 240713
ABN: 69 095 703 638
ACN: 095 703 638

Head Office
Tower One Barangaroo
International Towers Sydney, 100 Barangaroo Avenue
Sydney NSW 2000

Phone: 1300 854 151
Email: info@kosecgroup.com.au
Website: kosecgroup.com.au

For further inquiries, please contact us directly.

This Financial Services Guide (FSG) outlines the products and services provided by KOSEC Group, the relationship between your adviser and KOSEC Group, essential details regarding remuneration for our services, and the process for addressing and resolving any complaints.

KOSEC GROUP AND YOUR ADVISER

In Australia, financial advisers must either hold their own Australian Financial Services License (AFSL) or be authorised to provide financial advice under the authority of a licensee.

KOSEC Group acts as the licensee, offering comprehensive support and resources to our authorised advisers. This includes technical assistance, access to advanced software, ongoing education, and administrative services, enabling them to provide you with advice.

YOUR ADVISER

When your adviser provides you with this Financial Services Guide (FSG), they will also include their Adviser Profile. This profile is a critical document outlining the specific financial services they are authorised to offer through KOSEC Group. It provides a clear understanding of the types of advice and assistance your adviser can deliver.

It is important that you read this document alongside the individual adviser’s profile to gain a clear and comprehensive understanding of our business structure and advisory processes before engaging our services.

Our advisers may receive remuneration in various forms, such as brokerage, performance bonuses, or other alternative payment structures. Comprehensive details about remuneration arrangements, including fees, will be outlined in each adviser’s individual Adviser Profile for your transparency and understanding.

CODE OF ETHICS

KOSEC Group is committed to upholding the FASEA Code of Ethics at all times when working with retail clients. This ensures we adhere to the highest professional and ethical standards. A copy of the Code is available on our website or can be provided by your adviser upon request.

OUR SERVICES

KOSEC Group is authorised to provide a wide range of financial services to retail and wholesale clients. Our services include offering financial product advice and dealing in a variety of financial products across multiple categories. Below is a comprehensive outline of the services we provide:

Financial Product Advice for the Following Classes of Financial Products:

1. Deposit and Payment Products:
   • Basic deposit products.
   • Deposit products other than basic deposit products.
2. Debentures, Stocks, or Bonds:
   • Issued or proposed to be issued by a government.
3. Life Products, Including:
   • Investment life insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds.
   • Life risk insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds.
4. Interests in Managed Investment Schemes:
   • Investor directed portfolio services.
5. Retirement Savings Accounts (“RSA”) Products:
   • Within the meaning of the Retirement Savings Account Act 1997.
6. Securities:
   • Advice on investments in securities.
7. Standard Margin Lending Facility:
   • Advice and support related to margin lending facilities.
8. Superannuation:
   • Including all superannuation products

Deal in a Financial Product By:

1. Applying for, Acquiring, Varying, or Disposing of a Financial Product on Behalf of Another Person in Respect of the Following Classes of Products:
   • Deposit and Payment Products:
     • Basic deposit products.
     • Deposit products other than basic deposit products.
   • Debentures, Stocks, or Bonds Issued or Proposed to Be Issued by a Government.
   • Life Products Including:
     • Investment life insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds.
     • Life risk insurance products as well as any products issued by a Registered Life Insurance Company that are backed by one or more of its statutory funds.
   • Interests in Managed Investment Schemes, Including:
     • Investor directed portfolio services.
   • Retirement Savings Accounts (“RSA”) Products:
     • Within the meaning of the Retirement Savings Account Act 1997.
   • Securities.
   • Standard Margin Lending Facility.
   • Superannuation.

Each adviser is authorised by KOSEC Group, and their individual adviser profile provides detailed information about the specific authorisations they hold. These authorisations may not be as extensive as those granted to KOSEC Group itself.

LACK OF INDEPENDENCE

KOSEC Group is not classified as independent, impartial, or unbiased under regulatory guidelines because KOSEC Group or its Authorised Representatives may receive the following forms of remuneration:

• Commissions on the sale of life risk insurance products.
• Commissions on share trades.
• Percentage-based fees on funds under advice.

Therefore, although we always prioritise your interests when providing advice, we are legally prohibited from describing ourselves as independent, unbiased, or impartial.

SERVICE MODELS

KOSEC Group offers a variety of service models to cater to the diverse needs and preferences of its clients.

Factual Information Services

Under this model, we provide clients with factual information about financial products and the markets in which we invest. This includes market data such as valuations, performance metrics, and financial reports. It’s important to note that this information is purely factual and does not constitute financial advice.

Key points to note:

• The information provided is purely factual.
• Clients are responsible for interpreting this information and determining its relevance to their individual financial situations.
• This model does not involve the provision of a Statement of Advice (SOA) or Record of Advice (ROA).

General Advice Services

Under this model, clients receive general information about financial products, recommendations on top stock picks, and details on capital-raising projects. This advice does not consider the client’s individual circumstances, financial needs, or objectives.

Key points to note:

• Clients must independently assess the suitability of any investment, including whether to proceed and the amount to invest.
• Clients under this model are not entitled to a Statement of Advice (SOA) or Record of Advice (ROA).
• Fee disclosures and any conflicts of interest will be provided as applicable.

Wholesale Client or Sophisticated Investor Services

This model is designed for clients classified as wholesale or sophisticated investors under Chapter 7 of the Corporations Act. Eligibility is based on specific criteria such as investment experience, asset levels, or income thresholds.

Key features:

• Clients generally possess a high level of market understanding and financial capability.
• Advisers provide investment-related information and excluded offers, leaving clients to make their own investment decisions.
• While there is no legal requirement to provide a Financial Services Guide (FSG) to wholesale clients, KOSEC Group does so as a courtesy to outline the scope of services and associated fees.
• Provision of the FSG does not constitute retail advice or imply that the client is a retail client.

Personal Advice Services

This service model involves a tailored approach, where the adviser carefully reviews the client’s unique financial circumstances, needs, and objectives to provide personalised recommendations.

Key features:

• Clients receive a comprehensive Statement of Advice (SOA) detailing the recommendations and their rationale.
• Ongoing advice is offered through a Record of Advice (ROA) where applicable.
• Regular reviews are conducted to ensure the advice remains aligned with the client’s evolving financial goals.

STATEMENT OF ADVICE (SOA)

Whenever we provide financial advice that considers your personal objectives, financial situation, and needs, you are entitled to receive a Statement of Advice (SOA). The SOA includes:

• Details of the advice provided and the reasoning behind it.
• Fee disclosures: A breakdown of any fees, commissions, or other payments related to the advice.
• Influencing factors: Any relationships, associations, or interests that could impact the advice we provide.

In accordance with the FASEA Code of Ethics, we will seek your written consent before receiving any remuneration tied to the advice or products recommended.

PRODUCT DISCLOSURE STATEMENT (PDS)

If we recommend acquiring a financial product (excluding securities) or assist with issuing or arranging a financial product, we will provide you with a Product Disclosure Statement (PDS). The PDS contains comprehensive information about the product, allowing you to make an informed decision about its suitability for your circumstances.

CLIENT RESPONSIBILITIES AND EXPECTATIONS

To ensure that KOSEC Group can provide you with financial advice, we kindly request your cooperation in the following areas:

• Provide Accurate Information: Share comprehensive and truthful details about your financial needs, current situation, and future goals if provided with specific advice services. This enables your adviser to craft advice that aligns with your objectives.
• Review Supporting Documents: Carefully read all materials provided, such as Product Disclosure Statements (PDSs), to make well-informed financial decisions.
• Communicate Changes Promptly: Inform your adviser of any life events or changes in your financial status that could influence the advice you receive.
• Maintain Updated Contact Information: Ensure your adviser always has your current contact details to facilitate effective communication.

If you choose to withhold certain information, please be aware that the advice provided may be less tailored to your situation, if we are providing you with specific advice. It’s essential to consider the relevance and appropriateness of such advice before acting upon it. Always pay close attention to any warnings or disclaimers included in your advice documents.

Before offering advice, your adviser will work with you to define the specific topics to be addressed. For instance, you might seek guidance solely on superannuation or insurance rather than a comprehensive financial plan. This scope will be documented in a ‘Fact Find’ document or a service agreement.

When you decide to act on the advice provided, your formal consent is necessary. Typically, this involves signing an Authority to Proceed (ATP), confirming your understanding of the advice, including its benefits, risks, and associated costs.

COMMUNICATING INSTRUCTIONS TO YOUR ADVISER

At KOSEC Group, we prioritise accommodating your preferred method of communication to ensure seamless management of your financial products. You have the flexibility to provide instructions through various channels, including telephone, email, or in-person meetings. Please inform us of your preferred communication method so we can act promptly and efficiently on your instructions.

OUR COMPENSATION

KOSEC Group provides a variety of payment options to accommodate your preferences, including service fees, brokerage fees on funds invested, or a combination of both. Your adviser will outline these options in detail during your initial consultation to ensure transparency and understanding.

Fee Calculation and Disclosure

The fees we charge are based on the level of service you choose. All service levels, along with their associated fees and ongoing services, will be thoroughly discussed during your first meeting. These details will also be clearly outlined in the advice documents provided to you before any recommendations are implemented.

For a detailed list of fees and charges, please refer to the profiles of our individual authorised representatives. You have the right to request further information regarding the remuneration received by KOSEC Group and its authorised representatives at any time.

Independence and Related Entities

KOSEC Group operates independently and is not owned by any fund managers, ensuring that the advice you receive is unbiased. However, KOSEC Group may have relationships with related entities that share common directors or officers. Any potential benefits arising from these associations, such as profit-sharing arrangements, will be transparently disclosed to maintain trust and integrity.

Execution and Settlement Services

To facilitate market transactions, KOSEC Group collaborates with third-party providers offering execution, clearing, settlement, and sponsorship services. To transact on the ASX or other markets, you may be required to open an account with one of these providers. Any associated costs, fees, or brokerage will be disclosed in the Financial Services Guides (FSGs) of these providers, which are available upon request.

Adviser Interests and Disclosures

Your adviser may hold interests in financial products. Any significant interests or ownerships will be recorded in a register and disclosed in the Statement of Advice (SOA) or Record of Advice (ROA) provided to you.

HOW ARE WE AND YOUR ADVISER PAID FOR THE SERVICES PROVIDED?

Your adviser may offer an initial meeting free of charge. After this meeting, they will discuss the fees and charges applicable to your specific circumstances. Given the diverse nature of individual client situations, fees for plan preparation, implementation, and ongoing support will vary. Your adviser will structure and disclose these fees on an individual basis.

Fee Structures

• Fee for Service: This is an agreed-upon rate based on an estimation of your adviser’s time and effort.
• Hourly Rate: Your adviser may charge an hourly rate for services, which will be discussed with you prior to proceeding.

Combination of Fees and Commissions

Full disclosure of all remuneration will be included in the Statement of Advice prepared for you. You will not be charged unless you have agreed to engage our services.

Payment Methods

You can pay in the following ways:

• Deductions from your investment as a one-off and/or ongoing payment or in instalments.
• Direct invoice for initial and ongoing advice.
• Commission that we (and therefore your adviser) may receive from a financial product provider when you commence an insurance contract.
• A combination of the above.

Superannuation and Investment Products

Your adviser may receive adviser service fees or ongoing fees for the advice and services provided to you. Investment and superannuation product providers generally deduct their costs from the investments. Some products or platforms may have additional fees.

Life Insurance Products

Your adviser may receive an upfront commission of up to 66% (inclusive of GST) of your first annual insurance premium for arranging your cover. Additionally, after the first year, your adviser may receive an ongoing annual commission of up to 22% (inclusive of GST) of your annual insurance premium. Note that where commissions are the same for initial upfront and ongoing annual commission (i.e., level commissions), the above commission caps do not apply.

These commission payments are made by the relevant product issuers and are not an additional cost to you. However, your adviser may charge a fee for the initial advice and ongoing adviser services. Insurers can deduct premiums directly from you or from your superannuation account balance.

If you do not continue with a purchased life insurance product for a full 24 months, the commission received by KOSEC Group and the adviser is returned to the insurance company, in full or part.

Additional Payments and Benefits

In the course of providing financial advice and services, KOSEC Group and your adviser may receive additional benefits from product providers. These can include sponsorships for events, subsidised educational conferences, rebates, bonuses, preferred product rates, or other fees.

Non-Monetary Benefits

These discretionary benefits are related to future events, making it challenging to assign a specific dollar value in advance. Advisers may receive non-monetary benefits such as:

• Educational conferences and seminars
• IT software or support
• Business lunches, tickets to sporting and cultural events, or other minor benefits, provided they are infrequent and do not exceed $300 in value

Each adviser maintains a register of benefits received. If you wish to review this register, please contact us or your adviser directly.

Fee Disclosure

All fees and charges will be discussed and agreed upon between you and your adviser before any services are provided or implemented. Any remuneration paid to KOSEC Group or your adviser for advice, or by a product provider related to a financial product recommendation, will be disclosed in the advice document provided to you. Unless otherwise noted, all fees are inclusive of GST.

Payment Process

KOSEC Group initially receives all fees from clients and product providers and then distributes them to financial advisers and their practices after deducting our fees and other expenses. Typically, KOSEC Group retains a percentage of the fees paid under its arrangements with advisers.

Referral Fees

We, or your adviser, may pay a referral fee to a third party for client referrals. Further information about referral fees, including a reasonable estimate of the amount and how it is calculated, is available upon request from your adviser or us. This information may also be included in the Statement of Advice provided to you.

KOSEC Group is committed to full transparency regarding any additional payments or benefits received, ensuring you have all the information necessary to make informed financial decisions.

HOW DOES KOSEC GROUP PROTECT YOUR PRIVACY?

At KOSEC Group, we are committed to safeguarding your personal information in accordance with the Australian Privacy Principles. Our Privacy Policy outlines how we collect, use, maintain, and disclose your personal data to ensure its security and confidentiality.

Collection and Maintenance of Personal Information

We, along with your adviser, maintain a comprehensive record of your personal profile, which includes details such as your investment objectives, financial situation, and specific needs. Additionally, we keep records of any recommendations provided to you. This information is collected primarily to establish and manage your investments, communicate effectively with you, and provide access to secure areas of our website. We also collect certain personal information to comply with legal obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act and the Corporations Act.

Use and Disclosure of Personal Information

Your personal information is used to administer your investments, conduct product and market research, and address any concerns or inquiries you may have. We collect this information through direct interactions with you, and in some cases, from your financial adviser, authorised representatives, public sources, or information brokers. We may also verify the information collected to ensure its accuracy.

We may disclose your information to our related bodies corporate and service providers who assist us with various services, including data storage and archiving, auditing, accounting, customer contact, legal and business consulting, banking, payment processing, data analysis, information broking, research, and technology services. Your personal information may also be disclosed to Australian and overseas regulatory authorities upon reasonable request. Furthermore, we may share your information with external parties acting on your behalf, such as your financial adviser, unless you instruct us otherwise.

Accessing and Updating Your Information

You have the right to access and review your personal information held by us. If you wish to examine your file, please contact your adviser or us directly to arrange this. We encourage you to inform us of any changes to your personal information to ensure our records remain accurate and up-to-date. If you provide us with personal information about other individuals (e.g., directors), please ensure they are aware of this privacy policy.

Security of Personal Information

We are committed to implementing and promoting a privacy policy that ensures the privacy and security of your personal information. We and our partnering companies employ password management, backup data management, security measures, and firewall technology to prevent unauthorised access, loss, destruction, alteration, or leakage of your personal information. Additionally, we use SSL (Secure Sockets Layer) technology to encrypt and protect information transmitted over the Internet.

Marketing Communications

We, along with our related bodies corporate, may use your information to inform you about other services or products offered by us or them. This communication may occur via telephone, electronic messages (such as email), online, and other means. You may opt out of receiving such communications at any time by contacting us.

Use of Cookies

Our website uses cookies to identify your browser during your visit. While cookies do not personally identify you, they help us track usage patterns and improve your browsing experience. If you prefer not to receive cookies, you can adjust your web browser settings to refuse them.

WHAT IF SOME OF THE INFORMATION KOSEC GROUP HOLDS IS INCORRECT?

If you believe that any information KOSEC Group holds about you is inaccurate, incomplete, or outdated, we encourage you to inform us. Maintaining accurate and up-to-date records is crucial for providing you with appropriate and tailored financial recommendations.

In most cases, we will promptly correct any errors or inaccuracies upon your request. If we cannot make the requested changes, we will provide you with the reasons for our decision and document your objections in our records.

We are committed to ensuring transparency and maintaining the integrity of our client records. Please reach out to us if you have concerns about the information we hold.

COMPLAINT HANDLING PROCESS

If you have a compliant, we have established a straightforward process to address your concerns promptly and fairly.

Steps to Resolve Your Complaint:

1. Contact Your Adviser: Begin by discussing your complaint directly with your adviser. Many issues arise from miscommunication, and your adviser is responsible for ensuring you understand the strategies, products, and services provided. Addressing your concerns with them first can often lead to a quick resolution.
2. Acknowledge Your Complaint: If your adviser cannot resolve your complaint within five days, please contact KOSEC Group by phone at 1300 854 151 or via email at complaints@kosecgroup.com.au. We will acknowledge your complaint within 3 days and work towards resolving the matter within 30 calendar days from the initial complaint.
3. External Dispute Resolution: If you are dissatisfied with our response, you have the right to escalate your complaint to the Australian Financial Complaints Authority (AFCA), an independent external dispute resolution scheme.

Australian Financial Complaints Authority

3. Mail: GPO Box 3, Melbourne VIC 3001
4. Phone: 1800 931 678
5. Email: info@afca.org.au
6. Website: www.afca.org.au

We value your feedback and are committed to resolving any issues to ensure your satisfaction with our services.

PROFESSIONAL INDEMNITY INSURANCE

KOSEC Group maintains Professional Indemnity Insurance in compliance with section 912B of the Corporations Act 2001. This insurance provides coverage, subject to its terms and conditions, up to the insured sum for KOSEC Group and our authorised representatives, employees, and representatives concerning our authorisations and obligations under our Australian Financial Services Licence.

IMPORTANT INFORMATION

Any advice provided is general in nature and does not consider your personal objectives, financial situation, or needs. It’s important to understand that all investments carry inherent risks, including the potential loss of capital. Past performance should not be relied upon as an indicator of future performance. Please be aware that KOSEC Group reserves the right to update this Financial Services Guide as necessary.