Nature and Scope confirmation
Letter of engagement
I hereby appoint CM Financial Advisers as my Financial Advisers, to act on my behalf in collating information relating to my KiwiSaver/investment plan for the purpose of providing advice to me.
I understand the services being provided are restricted to the scope of service indicated in the Nature and Scope of Service document I received by email.
Commissions
For services in relation to Kiwisaver, an initial commission of up to $300 may be paid to CM Financial Advisers by the product provider.
Fees
I/We acknowledge that I/we will be presented with a standard written Statement of Advice in respect to the Investment advice sought and that CM Financial Advisers charge a set fee for this service. The cost is outlined below.
KiwiSaver Only – Set-up free of charge. Ongoing advice fee of up to 0.5% p.a. (depending on the provider, this can be covered partially or in full by the existing fund costs).
Getting Started Plan – $1099 (inc. GST) plus an ongoing advice fee of between 0.5% to 1.00% per annum depending on the recommended investment. The exact fee structure will be covered in the plan.
Investment/Retirement Plan – $1499 (inc. GST) plus an ongoing advice fee of up to 1.00% per annum. The exact fee structure will be covered in the plan.
Foreign Exchange – For the exchange of all foreign currencies to the New Zealand dollar, there is a facilitation fee of up to 1.0% of the amount being transferred (in NZD). An Investment/Retirement Plan is required to access and facilitate this service.
Should the advice be more complex you will be charged at the rate of $250 per hour (GST inclusive). You will be notified of this in writing and must acknowledge your consent before any work is carried out.
The fees are to to be invoiced after the Nature & Scope is decided upon and will be payable within 7 days of the invoice date.
The service levels I offer for investing fall into four categories:
Investment Plan/Retirement Plan
An Investment / Retirement Plan is ideal if you have a specific amount of money to invest, either as a lump sum or through regular contributions, and you need assistance in retirement planning, or simply selecting the best investment options for your goals. This plan will likely also include advice around KiwiSaver Investments.
I will gather relevant details about your investment situation through a Needs Analysis process and discuss any investment preferences you have. We’ll determine your Risk Profile through a questionnaire and discuss your financial goals going forward.
Once I have sufficient information on your situation, I will provide a Statement of Advice outlining my recommendations, along with an investment projection to show a likely outcome.
This service focuses only on the money you want to invest now. I won’t analyse your overall financial situation, (Mortgage, Insurance, Estate Planning etc.), which means the recommendations might not fully integrate with other aspects of your financial picture.
Getting Started Plan
A Getting Started Plan is designed for individuals who are just starting out with investing and have other savings goals outside of those that KiwiSaver offers. You might have a regular amount to invest weekly or a lump sum to invest for a minimum of 4 years. We will determine your Risk Profile through a questionnaire and discuss your financial goals for this money. Based on your investment timeframe and risk tolerance, we will recommend a suitable managed fund.
Please note: This recommendation is limited and does not include our specialised Model Portfolios, investment platform, or retirement planning services. It does not consider any other areas of your financial situation, (Mortgage, Insurance, Estate Planning etc.), and therefore may not fully align with your overall financial strategy.
KiwiSaver Only
The Kiwisaver Only is ideal if you have a specific savings goal, such as a first home purchase or retirement. We’ll determine your Risk Profile by completing a questionnaire (either in person or online) and agree on an investment strategy that matches your financial goals and risk tolerance.
Transaction Only Service
A Transaction-Only Service is a good fit if you already know where you want to invest your money and don’t need any advice. I will only collect the basic information needed to complete the transaction, like verifying your identity, but I won’t assess your financial situation or whether the investment is suitable for you. This means you could take on more risk than you’re comfortable with, or you might lose money. You’ll get confirmation once the funds are invested, but I won’t provide a detailed report.
