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Issued by FinClear Execution Ltd
ABN 56 061 751 102 AFSL No. 246842
Date: 15 October 2021
The purpose of this Financial Services Guide (FSG) is to help you decide whether to use any of the service arrangements your financial services provider (FSP) has in place with FinClear Execution Ltd (FinEx). It aims to provide sufficient information for you to make an informed decision about using our limited dealing, advisory and related services. Our services, and the financial products they cover, can be complex and subject to special regulations impacting how the services are to be provided. That’s why this FSG describes them in some detail. It is important that you read it carefully and file it away for later reference. Should you wish to discuss the services described in greater depth, you should contact your FSP.
This FSG contains information about, amongst other things, investment risk, interests of ours which may conflict with yours, and remuneration/benefits payable to FinEx if you use our services. Charges, commissions or fees not listed in the body of this FSG are listed in the attached Schedule of Fees. This FSG also tells you what to do if you have a complaint and how we would handle it. It explains the need for, the protection of, and how we use your personal information provided to us by your FSP
FinEx ) holds an Australian Financial Services License (AFSL) issued by the Australian Securities and Investments Commission (ASIC) (AFSL No. 246842) and is an ASX Limited (ASX) Market and Account Settlement Participant.
FinEx is a wholly owned subsidiary of FinClear Holdings Ltd and is a related entity of Finclear Pty Ltd FinClear holds its own AFSL (AFSL No 481017) and is an ASX Clearing and General Settlement Participant of ASX who is the provider of third party clearing and settlement services. As FinEx is not an ASX Clearing Participant, it has entered into a Clearing and Settlement Agreement with FinClear who has the clearing and settlement obligations for all ASX transactions executed by FinEx on behalf of its clients.
FinEx also has commercial arrangements with your FSP for FinEx to provide the services as described in this FSG. FinEx is not controlled by any issuers, and our Directors and staff do not act in that or any other capacity within the business of an issuer of financial products.
To open an account with FinEx you have to complete and sign or electronically acknowledge our Terms of Trade which is available from your FSP or on our website, www.finclear.coma.au. Its acknowledgements, authorisations and consents govern our dealing related services. In particular, you authorise us to deal and do other things on your behalf in accordance with the instructions of your FSP. We do not expect you to contact us directly and we will only act on the instructions of your FSP.
You may receive Product Disclosure Statements (PDS) if we offer to issue or arrange for the issue of certain financial products. A PDS is an important document and sets out the information needed to make an informed investment decision about whether to acquire the product. Any PDS that is required to be provided to you will be provided to you via your FSP. FinEx does NOT provide personal advice (see Section 12 below). We will never provide advice about whether a product is a suitable investment for you personally, and consequently you will not receive Statements of Advice (SOA) from us. If you use your FSP’s stockbroking services, our execution and settlement infrastructure is used. An account will be established at FinEx in your name. You will have to fill out, sign and return our account opening documentation ( You may also have to sign and return certain prescribed product- specific agreements (e.g. ASX Warrants Client Agreement), and receive prescribed Explanatory Booklets or other documentation, before FinEx can accept any orders from your FSP for that product(s).
FinEx is authorised by its AFSL to provide general financial advice on the following financial products
FinEx may also underwrite issues of securities and interests in managed investment schemes and operate custodial or depository services other than investor directed portfolio services to retail and wholesale clients By ‘advice’ we mean a recommendation or opinion, written or verbal, about an investment product or strategy. The important difference between general and personal advice is explained in Sections 11 and 12, below. By ‘dealing’ we mean acquiring and disposing of products on behalf of clients. Our services focus on financial products that may be applied for and settled or redeemed and settled (i.e. they are not listed but are cleared and settled by CHESS) traded or to be traded on ‘live’ markets such as those operated by ASX. In relation to foreign traded products, we have arrangements in place with other stockbrokers operating on major overseas securities or stock exchanges in order to transact on those markets.
FinEx may also provides general advisory and dealing services in relation to other unlisted products such as bank bills,
bonds, other money market instruments, debentures, endowment and other types of warrants, and superannuation and
other trust products (e.g. property and equities trusts).
FinEx is a specialist provider of wholesale stockbroking services to financial service providers such as financial planners and other AFSL holders. We supply execution and settlement services and we can also source model portfolios from third party providers. We take no responsibility for the content of the information provided by these third party providers. Our Clearing Participant will administer the client’s Participant Sponsored Holdings on our behalf of but FinEx Limited remains responsible to the client for any actions or matters done or omitted to be done in respect of the client’s Participant Sponsored Holdings. The Clearing Participant will also provide services to clear and settle the transactions that you execute through FinEx.
The FSP you have chosen to use, holds an AFSL or is an Authorised Representative of, an AFSL holder and will have the necessary financial services/product authorisations to use our services on your behalf. FinEx has a wholesale service relationship with your FSP. You have a direct, primary relationship with your FSP and a secondary relationship with us. If you wish to execute transactions using our services, please contact your FSP who will arrange to have those transactions executed by FinEx.
Therefore, the client relationship we have with you is essentially limited to dealings conducted on behalf of your account in accordance with the order instructions provided to us by your FSP, following your consultations with them
When providing our execution services, we will be acting on instructions provided by your FSP, and we will be acting as your agent. At times, we may even be acting as agent for another client who is the counterparty to your transaction (e.g. a sale of shares on market between clients).
On rare occasions we may act ‘as principal’ on our own account and appear on the other side of a transaction with you. In such circumstances we cannot charge you brokerage. We may also accumulate and price-average a number of transactions on one Confirmation. Your consent to these scenarios is granted when you sign the acknowledgements, authorisations and
consents in our New Account Application.
Our advisory services are provided only to your FSP and your FSP may pass these services to you.
All market transactions are executed subject to:
You should read our Terms of Trade carefully before signing. The ISA between FinEx and your FSP ensures all the necessary
market related services are available to support the services your FSP provides directly to you
Dealing services means buying, selling, applying for or redeeming financial products on behalf of clients.
Primary market
FinEx provides your FSP with access to investment opportunities made available by an issuer rather than someone selling on market. These involve applying for, or redeeming financial products. Your FSP can assist you make applications for Initial Public Offerings (IPOs) and other new issues of securities (e.g. shares) or interests in managed investment schemes (e.g. equity trust units). We can assist your FSP in arranging applications or redemptions.
Secondary market
Secondary Market transactions are dealt on market. The products have already been issued.
Before using our dealing services for the first time, we require your FSP to verify your identity as required under the AML/CTF
Act and to confirm settlement arrangements.
FinEx has immediate access, when Relevant Exchanges are open, to order execution and transaction settlement platforms.
Subject to the relevant dealing and settlement regulations, FinEx will accept and transact orders placed by your FSP, on your behalf, and will facilitate settlement via its Clearing Participant. There may be other circumstances in which FinEx will not be able to accept order instructions, but they are most unlikely and we would give your FSP reasons for not doing so and assist with alternative arrangements. A Confirmation will be dispatched directly to you following execution of a market transaction. It confirms the detail of the transaction, the contractual terms and conditions which applied to the transaction, and also serves as a Tax Invoice. If you so authorise, in the New Account Application, a copy will go to your FSP. We urge you to have us CHESS sponsor your holdings of traded products (i.e. sign the Sponsorship Agreement in our New Account Application). This service has many advantages and minimises the risk of failed settlement of sell transactions, which incurs additional fees.
Your FSP must instruct us in certain ways
FinEx will accept instructions from your FSP in a number of ways including electronically (email or through an electronic order pad) or over the phone. Notifications and instructions in relation to important matters (e.g. change of your address, payment of sale proceeds to parties other than you) must be provided to us (via your FSP) in writing, signed by you
Market Transactions may be cancelled by ASX
ASX has the power, when market integrity is at stake, to cancel or amend a market transaction (or reinstate an order) which has been executed. Cancellation of an executed transaction would mean the loss of the benefit of the market price and other entitlements flowing from the transaction. Amendment of a transaction may have a similar impact. You would not be entitled to any compensation from us or ASX.
Settlement requirements
FinEx will not, nor is it obliged to, settle cash (currency). We will not pay you in cash and we won’t accept cash from you or your FSP directly. You can make electronic transfers or pay via cheques to settle your transactions. In the case of transactions executed on ASX Markets, funds (i.e. cheques or direct deposits), documents (e.g. share certificates, prescribed statutory declarations) or sponsored holdings must be available to FinEx’s Clearing Participant by the time and date specified on the Confirmation.
Interest on Trust account balances
Any funds you deposit with us and will be held in our Clearing Participant’s Trust Account for limited periods, usually very short periods and the Clearing Participant is entitled to the interest earned on Trust Account balances.
‘Advisory services’ means recommendations or opinion, whether in written or report form or provided verbally, that are intended to influence a person in making an investment decision. ‘Advice’ falls within one of two categories: either General or Personal advice.
Personal advice is advice given to a person in circumstances where consideration has been given to whether the product is personally suitable in light of what is known about one or more of the person’s objectives, financial situation and needs, or where it might reasonably be expected one or more of those matters has been considered. General advice is strictly limited to an assessment of the investment and/or other merits of the product itself (see section 11 below).
FinEx may provide General or Product Advice. FinEx will never provide Personal Advice to you.
Your FSP has engaged FinEx to provide execution services. . Your FSP has that role and responsibility.
What are the limitations of research, newsletters and other opinions we provide?
Research and other product advice presents the opinion of specialist analysts. The assumptions on which that opinion is based mean that forecast performance cannot be guaranteed. Past performance is not a reliable indicator of future investment performance. A recommendation or rating may only be valid for a limited time and is often subject to movements in market price.
Just because you see that a product is recommended or rated in a report or a newsletter as a ‘buy’, ‘sell’, ‘hold’, ‘accumulate’, ‘underweight’, ‘overweight’, ‘neutral’, ‘out-perform’ or ‘under-perform’ does not mean that recommendation is appropriate for you specifically. You must consult your FSP before acting on any report or recommendation presented in a newsletter.
Product advice is a rating or assessment based solely on the attributes of the financial product, the portfolio or investment strategy alone without considering whether it is also appropriate for someone’s financial circumstances. Product advice is considered to be General Advice.
Model Portfolio Services
FinEx also has arrangements with Investment Managers whereby FinEx is provided with access to the Investment Manager’s Model Portfolios. Your FSP may determine that a direct investment in a portfolio of market traded products would be appropriate as part of your overall financial plan, and request FinEx to arrange a portfolio to a particular value based on one of the Model Portfolios. There are a number of notional Model Portfolios, each having different collective investment/risk characteristics. The portfolio proposal prepared for your FSP is general product advice. It is based solely on the investment merits of the Model Portfolio selected, and the shares or other products making up the particular portfolio. Even though FinEx is asked to propose a portfolio to a particular value, and to give a view on your existing holdings (if any), our advice remains limited to general product advice. Whether the proposed portfolio is suitable for you personally is entirely the responsibility of your FSP. If you see the proposal, it will usually be supporting your FSP’s Statement of Advice to you.
Personal advice recommends a product as being appropriate for a client personally, following consideration of their personal financial circumstances and investment objectives. Your FSP, not FinEx, will provide this category of advice.
A Statement of Advice is only relevant in the context of personal advice, not product advice. You will never receive Statement of Advice from FinEx.
For clients considering FinEx’s MDA service please refer to its Supplementary FSG.
In general, all investments have associated risks and in most cases, the higher the return, the higher the risk to your investment.
By ‘risk’ we mean the possibility that you will suffer some financial harm by investing. Your preparedness and capacity to carry a particular level or type(s) of risk in pursuit of your investment strategy is a fundamental element of your financial circumstances.
Risk should be considered when developing or reviewing your overall investment and wealth-creation strategy and this is a matter for you and your FSP to discuss in detail.
How are we remunerated and what other benefits might we receive for the services we provide?
FinEx may be paid in one or any combination of the following ways:
How are our staff remunerated?
FinEx’s directors and staff receive a salary. Directors and staff may also receive other benefits such as bonuses. They do not receive a proportion of the fees, charges or commissions you pay. The range of our transactional charges Brokerage on each purchase or sale on a relevant exchange or foreign market is calculated as a percentage of the dollar value of the transaction, subject to an agreed flat minimum fee. The total Brokerage you will pay on a transaction is set by your FSP but this will include the negotiated execution fee that FinEx has negotiated with your FSP. You should refer to your FSP’s FSG for disclosure relating to the fees imposed by your FSP.
For a purchase, the total brokerage (which includes FinEx’s fee and any brokerage your FSP may charge), together with any applicable duty or tax, is added to the transaction value and the total is the overall consideration payable by you. If payment in full is not received by the time and date shown on the Confirmation, you may be charged an administration fee (refer attached Schedule of Fees) or, ultimately, the holding may be sold-out in the market at your risk and expense.
For a sale, the total brokerage (which includes FinEx’s fee and any brokerage your FSP may charge, together with any duty or tax payable, is deducted from the proceeds of your sale transaction. You may also be charged ‘fail fees’ (refer attached Schedule of Fees) if you fail to settle a sale by the time and date shown on the Confirmation. Ultimately, the unsettled position may be bought-back at your risk and expense. All these amounts (except Fail Fees) are specified on the Confirmation sent to you.
Brokerage on transactions traded on ASX markets
The standard brokerage rates for transacting ASX traded financial products are set by your FSP and a guide is found in the attached Schedule of Fees. CHESS Sponsorship fees are also detailed in the attached Schedule. We do not charge to sponsor your holdings, but we do charge for certain transfers other than those relating to settlement of on market transactions.
Brokerage on transactions NOT traded on ASX markets
We can arrange transactions in products other than ASX traded products (e.g. fixed income securities) with specialists in the relevant product. Brokerage will be negotiated with your FSP prior to accepting the order instructions. The method of calculating the brokerage is the same as described above.
Duties and taxes may not be payable depending on the product. See the attached Schedule.
Brokerage on International transactions
For transactions on a foreign stock exchange, the brokerage charged may also include some or all of the charges of the foreign stockbroker. Again, the methodology is the same as described above. Please refer to the attached Schedule of Fees. Lodgment, Application, Acceptance Incentives and Trailing Commissions If you apply for financial products by way of a PDS or Disclosure Document (e.g. a Prospectus), and your application is stamped by us and is accepted, we will usually receive an application / lodgment fee from the issuer in the range of 0.5% – 3% of the value of the application. FinEx may also receive acceptance incentives to encourage clients to accept a takeover or other offer. These range between 0.5% – 6% of the value of acceptance.
FinEx may receive trailing commissions from Cash Management Trust operators or WRAP platform providers if we have placed your funds to them. Trailing Commissions range from 0.5% – 2.5% calculated on the value of the funds remaining deposited or invested, and are usually payable every quarter.
All these are disclosed in the product’s PDS, Disclosure Document or by us when providing advice.
Managed Investment Schemes
FinEx’s can on the request of your FSP provides a Managed Investments Scheme service (FinEx Managed Accounts) to you. The fees for these services are based on a percentage of the total Funds Under Management (FUM) as well as a fee for any transactions required to maintain your portfolio. The fees for providing these services will be negotiated with your FSP. Refer attached Schedule of Fees. Some FSPs have commercial arrangements with FinEx where we pay a rebate to the FSP. If such an arrangement is in place this will be detailed in your FSPs FSG
Model Portfolio Service
FinEx’s fee for providing this service will be negotiated with your FSP. Refer attached Schedule of Fees.
Fees or Other Rebates or Benefits payable to Referrers
FinEx may also receive fees directly from issuers as a result of handling your IPOs, capital raisings or new issue applications. This fee may be split between your FSP and FinEx and the amount of that split is negotiated on a commercial basis between your FSP and FinEx
Detail of remuneration and other benefits can be requested
You are entitled to ask your FSP to request detailed particulars from FinEx of the remuneration or other benefits we will receive if you use a particular service, but that request must be made within a reasonable time after you receive this FSG and before any service is provided to you.
If you are dissatisfied with the services we’ve provided, take the following steps:
Website: www.afca.org.aus
Email: info@afca.org.au
Telephone: 1800 931 678 (free call)
In writing to: Australian Financial Complaints Authority, GPO Box 3, Melbourne Vic 3001
ASIC also has a free call info line on 1300 300 630 which you can use to make a complaint about our or your FSP’s services and to obtain information about your rights.
FinEx has in place Professional Indemnity Insurance which satisfies the requirements of Section 912B of the Corporations Act. Section 912B relates to Retail Client compensation arrangements.
In very general terms, Section 912B requires FinEx to have arrangements for compensating a Retail Client for loss or damage suffered because of breaches by FinEx, or by our representatives/employees, of obligations under Chapter 7 (‘Financial Services and Markets’) of the Corporations Act, including losses caused by negligence, fraud, dishonesty or other misconduct that amounts to a breach of Chapter 7 and gives rise to a liability to a Retail Client. Section 912B also requires our arrangements to cover our liability to a Retail Client for an award (i.e. a compensation order) made in favour of that Retail Client by the AFCA (see Section L), an ASIC approved External Dispute Resolution Scheme of which we are a member. The Professional Indemnity Insurance we have in place will cover claims in relation to the conduct of representatives / employees who no longer work for FinEx, but who did at the time of the relevant conduct.
Is the Personal Information provided to us about you private and confidential, and why do we need, and how do we use,
that Personal Information?
We are committed to protecting the privacy, accuracy and security of the personal information provided to us about you by your FSP. The information is protected in accordance with our Privacy Policy.
Your personal information will be used for establishing and maintaining you as an account holder, to facilitate transaction execution and settlement, registration of your holdings of financial products, and to provide other related services to you through your FSP. All this is required by the Corporations Act and the Rules of ASX Group or other Operator of a market on which we transact. Should you choose not to provide the personal information requested, we may be unable to provide some or all of the services required.
We are obliged to confirm and record your identity in accordance with the Corporations Act and other legislation preventing criminal activity such as money-laundering and the financing of terrorism. Consequently, your FSP must notify us of changes to personal information (e.g. change of address) already provided to us.
Your personal information will only be disclosed internally within FinEx in accordance with internal administration and operations procedures.
In relation to transactions involving ASX traded products, we usually disclose personal information about identity and address to ASX Settlement, the operator of CHESS, and to product holder Registries. In relation to transactions on other Australian or foreign markets, we disclose the minimum information required by the Stockbrokers we use. They use and disclose that information to the extent necessary to transact, settle and register or transfer product holdings.
We may also be required to disclose information to your bank, cash management trust operator or other deposit taker. We may be required to disclose your information to ASX (and other ASX Group members and tribunals), ASX Clear, the Securities
Exchanges Guarantee Corporation Ltd (SEGC) which is the operator of the National Guarantee Fund, and any court or tribunal, authority or regulatory body such as ASIC, AUSTRAC and operators of disputes or complaints resolution schemes in order to comply with relevant legislation, regulations and rules.
We may be required to disclose your information to debt collectors, credit reporting agencies, our auditors, contractors or service providers (such as those we use to settle your transactions) and to other parties authorised and/or required by law to collect or access your information.
Generally, unless required by law, regulation or rule your personal information will not be passed to any third-party without your consent or the consent of your FSP. Nor will it be used for purposes other than described above.
Your personal information is stored securely and you have the right to access and review it, and to request its correction if in error.
If you are a company and personal information about an officer or employee has been provided by your FSP to us, you must provide them with a copy of our Privacy Policy or show them this section of our FSG and explain how to access our Privacy Policy.
If you wish to receive a copy of our Privacy Policy or to review personal information we hold, or if you have a complaint in relation to your privacy, please contact your FSP in the first instance.
FinEx charges your FSP a fee for executing your transaction and for arranging the clearing and settlement services for that transaction. The fees charged by FinEx may be a fee per trade or a fixed monthly fee with minimum monthly charges.
FinEx may also charge a fee from the table below to your FSP and your FSP may in turn pass the fee on to you in which case, FinEx will be instructed by your FSP to debit your account for that fee.
FinClear Execution Financial Services Guide (151021) 6 Your FSP may also charge you brokerage and commission and other fees for the transaction that FinEx executes on your behalf. Please contact your FSP for information about those fees and charges.
| Fees for financial products traded on international fees (exclusive of GST) | |
|---|---|
| Settlement Fees for Non DTC Markets (Europe) | USD $75.00 - $250.00 |
| Settlement Fees for DTC Markets (North America) | USD 400 - $1,000.00 |
| International stock transfer fee | $75.00 - $250.00 |
| MDA Services | |
| FinClear PMP Management Fee | 0.30% of FUM +GST of the total FUM per annum |
| FinClear PMP – ETF Series Management Fee | 0.20% of FUM + GST |
| Investment Manager Fee | Please see PMP Investment Manager Fee Menu @ www.finclear.com.au |
| Account Administration Fees | |
| Booking Correction/Rebooking | $25.00 - $50.00 |
| Printing and postage of contract notes | $2.00 -$10.00 |
| RTGS Payments | $50.00-$100.00 |
| Initial Settlement Fail Fee | $250.00 (min) or 0.10% of failed trade value capped at $5,000 per day per security |
| Subsequent day settlement fail fee (ASX levied fee) | $100.00 (min) or 0.10% of failed trade value capped at $5,000 per day per security |
| Direct Debit Dishonour | $50.00 - $100.00 |
| Aged Debtor (fail fee charge per day) | $50.00 - $100.00 |
| Off Market Transfers | $25.00 - $50.00 |
| Off Market Transfers (Estates) | $50.00 - $100.00 per transfer |
| SRN search request | $20.00 - $50.00 per security |