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Financial Services Guide

Six Park Asset Management Pty Ltd ACN 610 445 479

Address: Level 2, 696 Bourke St, Melbourne VIC 3000

Website: sixpark.com.au

Email: [email protected]

Authorised Representative Number: 1240305

Preparation date: 26/09/2017

Version: 1

Six Park is authorised to provide Financial Services by Bespoke Portfolio Pty Ltd, the holder of Australian Financial Services Licence number 341991 ( Bespoke, our licensee, the licensee ).

Bespoke can be contacted at:

Address: Level 2, 451 Little Bourke Street Melbourne VIC 3000

Email: [email protected]


1. The purpose of this document

This Financial Services Guide ( FSG ) is an important document. It provides you with information about Six Park Asset Management Pty Ltd ( Six Park, us, our, we ) and our services. Its purpose is to help you understand and decide whether to use any financial service we offer and includes:

  • Our contact details;
  • Who our authorising Australian Financial Services Licensee is;
  • The financial services and products we are authorised to provide;
  • The costs of any services we may provide to you;
  • How any relevant parties are paid and any remuneration we may receive;
  • Any relationships we have with any other organisations affiliated with us or with product issuers, which might influence us in providing financial services to you;
  • Who to contact if you have a complaint and how such complaints may be dealt with;
  • Our compensation arrangements.


2. Who is providing the Financial Services?

Six Park offers an automated Managed Discretionary Account (“MDA”) service. What this means is that, when we provide financial services to you, we will be providing a service by which we will advise you on an appropriate investment program in one or more managed investment schemes or securities. The money you invest with us will be invested in accordance with your investment program. The Investment Program forms part of the MDA Agreement that will be provided to you. Before we can provide you with MDA services, we must enter into an MDA Contract with you. This contract will set out the terms on which we provide you with MDA services, and the risks associated with entering into such a Contract.

The investments will be registered in your name, and you will retain ownership of them. As the MDA Manager appointed by Bespoke, it is our responsibility to make investments on your behalf. We will do so in accordance with the investment program. Full details of the investment program are in the MDA Agreement and Statement of Advice we will provide to you at the time we provide financial services to you.

When we provide Financial Services to you, both we and Bespoke act on your behalf. As an Authorised Representative of Bespoke, we also act on its behalf when providing financial services to you.

Our contact details are at the start of this FSG.

On our website, we provide information about how you may engage with our services.

You should read this information carefully before you engage our services. This information may be general in nature. When you receive general advice from us, we do not take into account your personal or financial objectives or needs. Accordingly, you should consider whether or not the advice is appropriate to your needs before you act on it.

Six Park will provide you with personal advice when you sign up for our MDA service. When you do this, you will be provided with an MDA Agreement and Statement of Advice (SOA).

How we provide MDA services

  • All advice relating to MDA services is provided by Six Park, as your MDA adviser, and Bespoke, as MDA Provider;
  • Bespoke provides all relevant services to you.  Bespoke has quality controls in place to ensure the veracity of the advice that is provided to you, and the advice is regularly reviewed. Bespoke has no reason to believe that the advice provided to you is not appropriate for your circumstances.  
  • You retain custody of any assets held pursuant to the MDA Contract. Therefore, the MDA Contract does not include custodial or depository services;
  • Even though we retain discretion over the operation of your portfolio, you can instruct us in writing to cease taking certain action, or to commence taking other action, in relation to your portfolio.

When you choose to enter into an MDA Contract with us, you will be provided with an Investment Program which complies with Division 3 of Part 7.7 and Division 2 of Part 7.7A of the Corporations Act. The MDA Contract and Investment Program will contain:

  • Details of the discretions we will be authorized to exercise in connection with your MDA Contract;
  • The risks associated with you entering into the MDA Contract;
  • Warnings regarding the potential negative implications of you entering into an MDA Contract.

Risks Associated with Managed Discretionary Accounts

It is important that you are aware of the risks associated with Managed Discretionary Accounts.

Some of these risks are:

  • Investing through an MDA service means that we have discretion to make decisions about your portfolio in accordance with your Investment Program without obtaining your instructions before each transaction we undertake.  Therefore, our acts bind you.  It is important you understand what we are authorised to do and that you carefully read and understand the activities that you are authorising us to do on your behalf.  By authorising us to make changes to your investments, you cannot claim we were not acting on your behalf if we acted within the authority.
  • An MDA service is not suitable for all clients.  If you want to retain control of all investment decisions an MDA service will not be appropriate for you.  However, if you are an experienced investor and understand the risks associated with having someone else make all of the investment decisions on your behalf then it may be suitable for you.
  • There is a risk that using the MDA service and the Investment Strategy we will exercise on your behalf will not achieve your investment goals.
  • We will actively buy and sell financial products on your behalf and there is a risk that you may incur capital gains tax liabilities.  You should seek advice from your tax adviser about this risk.
  • There is a risk of suffering financial loss on your portfolio balance if there is an adverse market movement.
  • There is human error risk in the trading process.

If you require any further information about the operation of Managed Discretionary Accounts, or the services we provide, please contact us at any time. 


3. The services and products we are authorised to provide

Six Park is authorised to offer the following financial services to retail and wholesale clients:

Personal Financial advice on, and deal in, the following classes of financial products:

  •  Deposit and payment products limited to:
    •  Basic deposit products
    •  Securities;
    •  Derivatives;
  • Managed Investment Schemes limited to:
    •  Exchange Traded Funds;
    •  Managed Discretionary Accounts (MDA).

We are not authorised to provide advice relating to any other issues except those set out above. If these issues arise and are relevant to you, you should seek specific advice from the appropriate professionals.


4. How do we receive instructions?

You can only give us instructions through our website or our application. The method by which Six Park will accept your instructions is subject to you agreeing to the terms of the MDA Agreement that you will be provided with.

While the MDA Agreement is in force, you may also give us instructions in the following ways:

  • Depositing into or withdrawing funds from your Macquarie Cash Management Account in accordance with the terms of the MDA Agreement;
  • Updating your Six Park profile;
  • Re-taking the Six Park Risk Profile;
  • Terminating the MDA Agreement.


5. How are we paid?

There are a number of costs, fees and commissions that you may be required to pay us, in order to use our services, set out in the tables below.  Additional details can be found in the Annexure at the end of this FSG.


Type of ExpenseAccount ValueAmountHow and when is it paid?
MDA Service fee$10,000 and $199,999.99

$200,000 and $499,999.99

$500,000+
0.50% p.a.

0.40% p.a.

0.30% p.a.
Calculated on a monthly basis using an average monthly balance (e.g. balance at the start and end of the month).

Deducted from your CMA monthly in arrears on or around the 15th day of each month and paid to Six Park.
ETF Management FeeThe management fees for the ETFs that Six Park utilizes typically range from 0.18% to 0.52% (current average of 0.26%)Charged by ETF issuer and reflected in the share price of the ETF. As such, there are no direct cash fees paid by you.

Please note that the Minimum CMA balance must be maintained. Should the balance fall below the minimum, Six Park may contact you requesting you top up your CMA.

If you are referred for insurance or a self-managed super fund and proceed with purchasing a product or service from our partners, Six Park may receive a referral fee, which is a percentage of the fees you pay to the partner.


6. Our Relationships

So that we can provide you with MDA services, both Six Park and Bespoke have relationships with various service providers. These relationships facilitate the operation of the services we provide.

In particular, Macquarie Bank Limited has been engaged to provide Cash Management Account Services and OpenMarkets Australia Limited has been engaged to provide electronic trading services

From time to time, the parties with whom we have these relationships may change. We will advise you if they do.


7. Payment to our staff and third parties

Our directors and employees who provide the financial services described in this FSG are remunerated by way of salary and other employee benefits. They may also be eligible for a discretionary bonus. Some employees may hold shares in Six Park, and thereby derive a benefit from our positive performance.

Employees may from time to time receive other rewards, such as tickets to conferences or functions, or other forms of entertainment. It is not possible to determine in advance what (if any) additional benefits any employee will receive as these benefits are not generally attributed to any particular product or service they provide.

Bespoke receives a monthly fixed dollar licence fee from Six Park in return for authorizing Bespoke under its Australian Financial Services Licence.

You may request further details of the fees and benefits (including any commissions) that may be payable at any time by contacting us via email ([email protected]) or phone.


8. Insurance Arrangements

Our licensee has arrangements in place to maintain adequate professional indemnity insurance as required by s912B of the Corporations Act 2001. This insurance provides cover for claims made against the licensee and its representatives/employees including claims in relation to the conduct of representatives / employees who no longer work for the licensee but who did so at the time of the relevant conduct.


9. Resolution of Complaints

If you have a complaint about the service that we provide, the following steps or avenues for resolution are available to you.

Step 1: Please contact [email protected] detailing the nature of your complaint. A Six Park representative will contact you to discuss the matter.

Step 2: If the matter is not satisfactorily resolved within seven days by talking with our representative, we will apply our internal complaints process to manage your concerns. In these circumstances the complaint will be escalated to the Complaints Manager of our licensee, Bespoke or you can contact them on 1300 652 511 or in writing at [email protected].

Step 3: If you still do not get a satisfactory outcome within 45 days, then you may send your complaint to the Financial Ombudsman Service (FOS) at GPO Box 3, Melbourne Victoria 3001. Bespoke is a member of FOS. Their toll-free number is 1300 780 808. The complaints service they provide is a free service. FOS is an independent body which has been approved by the Australian Securities and Investments Commission (ASIC) to deal with complaints against its members. To use the FOS, you must have firstly attempted to use our internal dispute resolution service.

You can contact the FOS on 1300 780 808 (if in Australia) or +613 9613 7366 (if outside Australia) or in writing at GPO Box 3, Melbourne, Victoria 3001, Australia. You can also contact the FOS through their website: www.fos.org.au[email protected].


10. Privacy

In order for us to provide the services to you, we must collect personal information about you.

You can find details about how we manage your privacy here.

Please retain this FSG for your reference and any future dealings with us. Documents which will form part of this FSG may also be added at a later date, and should be read in conjunction with this FSG. These documents will include the word “FSG” in the heading.



Annexure to Financial Services Guide Dated [26 /09/2017] – Fees and other costs

 

Did you know?

Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns. For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example reduce it from $100 000 to $80 000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable. 


To find out more

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.moneysmart.gov.au) has a managed funds fee calculator to help you check out different fee options.

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from your assets held under our MDA service.

You should read all the information about fees and costs because it is important to understand their impact on your investment.


Fees when your money moves in or out of the MDA account

Type of fee or costAmountHow and when paid

Advice fee:

Nil

N/A

Establishment fee

The fee to open your investment

Nil

N/A

Contribution fee

The fee on each amount contributed to your investment

Nil

N/A

Withdrawal fee

The fee on each amount you take out of your investment

Nil

N/A

Exit fee

The fee to close your investment

Nil

N/A

 

Management costs

Type of ExpenseAccount ValueAmountHow and when is it paid?
MDA Service fee$10,000 and $199,999.99 $200,000 and $499,999.99 $500,000+ 0.50% p.a.  0.40% p.a.  0.30% p.a.  Calculated on a monthly basis using an average monthly balance (e.g. balance at the start and end of the month).  Deducted from your CMA monthly in arrears on or around the 15th day of each month and paid to Six Park.
ETF Management Fee>td >Charged by ETF issuer and reflected in the share price of the ETF. As such, there are no direct cash fees paid by you.

Please note that the Minimum CMA balance must be maintained. Should the balance fall below the minimum, Six Park may contact you


Type of fee or costAmountHow and when paid

Management fee

0.5% p.a. (on balances of $10,000 – $199,999.99)

 

0.4% p.a. (on balances of $200,000 – $499,999.99)

 

0.3% p.a. (on balances of $500,000+)

 

Charged monthly using an average monthly balance

 

 

The other fees and costs for managing your investment

Nil

N/A

Switching fee

The fee for changing investment options

Nil

N/A

 

Additional Fees and Costs

Type of fee or costAmountHow and when paid

Performance Fee

Nil

N/A

Brokerage/ Commission

 

Nil

N/A

Standard commission rates

Nil

N/A

Other Costs charged by executing brokers

Nil

N/A


Example of MDA fees

This table gives an example of how the fees for the MDA service can affect your investment over a 1 year period. You should use this table to compare this product with other MDA services.

Total fees paid to Six Park on a portfolio with an average annual balance of $50,000 would be $250 or 0.50% per annum.

ANNUAL FEES EXAMPLE ON $50,000 INVESTMENTANNUAL COST
Total Six Park Fees - Calculation: 0.50% x $50,000$250 or 0.50%


Fee changes

Under the MDA Contract, we  will give you at least 30 days' prior notice in writing of increases to the fees. In relation to a change that is not an increase in fees or charges, we will give you prior notice in writing of a material change.  

 

Withdrawals of Funds / Closing Account

We strongly believe that your investment account is your property and that you should have the right to withdraw any or all of your funds at any time that you wish. With this being one of our core beliefs, and unlike many other managed investment funds, we don't place restrictions on your right to withdraw your funds at any time (subject to you maintaining sufficient funds to satisfy your margin obligations). We do not charge any exit penalties or fees.



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