Financial Advice Provider Disclosure - Legaseed NZ Ltd

V7 – 23/04/2024

 Legaseed NZ Ltd trading as Legaseed is the Financial Advice Provider, that holds a license (FSP 1005404) issued by the Financial Markets Authority (FMA) to provide financial advice services. You can find Legaseed NZ Ltd listed on the Financial Service Providers Register at fsp-register.companiesoffice.govt.nz.

Contact details

Legaseed NZ Ltd

Phone: 07 2132270

Email: support@legaseed.co.nz

Physical Address: 4a Tamamutu Street, Taupo.

This disclosure statement provides important information about the services provided by Legaseed NZ Ltd (referred to as “we,” “us,” or “our”) as an investment planning, KiwiSaver and personal risk insurance, advisory business in New Zealand. It is designed to help you make an informed decision about engaging our services. Please read this document carefully before making any decisions.

Nature and Scope of Advice

The conditions of the Legaseed NZ Ltd licence allow me to provide the following financial advice services:

●     Advice on your KiwiSaver scheme

●     Personal Life Risk, Disability & Medical Insurance

●     Financial & Retirement Planning & advice around investments (including managed investments)

Our role is to provide you with advice based on your individual circumstances and objectives. We will assess a variety of factors which may include, but is not limited to; your risk tolerance, financial & personal goals, and time horizon to offer suitable investment and insurance solutions.

Throughout our entire business, we follow a documented advice process that uses factors as mentioned above to make product recommendations, where appropriate, whilst maintaining our clients best interests at all times.

Providers Legaseed NZ Ltd work with include;

Legaseed NZ Ltd have chosen to work with the following personal risk insurers:

Chubb Life Insurance New Zealand Limited

NIB NZ Ltd

Partners Life Ltd

AIA New Zealand Ltd

Asteron Life Ltd

Fidelity Life Assurance Company Ltd

Legaseed NZ Ltd have chosen to work with the following investment product providers:

 ·         Harbour Asset Management Ltd

·         Dimensional Fund Advisors (Australia) Ltd

·         NZX Smartshares

·         Vanguard

·         Jarden Partners Limited

·         Westpac Institutional Bank

·         Finzo NZ Ltd

·         FNZ Custodians Ltd

·         Kernel Wealth Ltd

·         Stewart Group Asset Management

Legaseed NZ Ltd have chosen to work with the following KiwiSaver Product Providers:

·         Booster Financial Services Group Ltd - Asset Class Funds only 

This means that Legaseed NZ Ltd will only consider the range of providers listed above when recommending a product to meet your needs.

What we don’t provide

Legaseed NZ Ltd does not provide advice related to fire and general insurance, or mortgages. Instead, we have a network of expert providers whom we can direct our clients to. There may be a referral fee paid to Legaseed as a result of a referral, which will be fully disclosed to you at the time.

Conflicts of Interest

We prioritise your best interests throughout every step of the process and undertake to manage any conflicts of interest that may arise. We will fully disclose to you any information available regarding any potential conflicts of interest, as well as fees and commissions so you are fully aware throughout the process.

Although Legaseed NZ Ltd is paid by the risk insurance & KiwiSaver providers in the form of commissions, we will always put your interests first by:

●     Following a proven 6-step advice process that puts our client’s needs at the heart of the advice process

●     Identifying and disclosing the maximum level of commission we may receive as a result of our recommendations.

●     If our recommendations involve replacing cover, we will provide a comparison of covers and explain what the recommended provider offers that your existing cover does not. We will also let you know if there is anything your existing provider cover that the recommended provider will not.

●     All our recommendations are provided in writing with an explanation as to how they meet your individual needs.

●     Legaseed NZ Ltd completes internal and external reviews of our advice process to ensure we follow a thorough review process that maintains a consistent approach of putting client interests first.

With all our product providers we endeavour to use independent research to provide unbiased evidence to support our analysis and recommendations. These recommendations are only made once we have established this is in your best interest.

Legaseed NZ Ltd is owned in part by same shareholders of Bizdom Ltd (and their associated trusts). In referring a client to Legaseed NZ Ltd, the individual directors of Bizdom Ltd may benefit from this by way of dividends or company profits from Legaseed NZ Ltd, should the client pursue a relationship with Legaseed NZ Ltd, or be charged a fee. Neither the directors of Bizdom Ltd, their associated trusts, or Bizdom Ltd itself, receives any form of commission or referral payments from Legaseed NZ Ltd.

External Referral arrangements with external strategic partners, e.g. accountants.

Legaseed NZ Ltd may enter into agreements with external strategic partners, who may refer clients to Legaseed, if deemed to be in the clients best interest. These partners may receive a referral fee.  

External Referral arrangements with other Financial Advisers/Financial Advice Providers

If we are unable to offer the financial advice you need within our scope of services provided, we may refer you to another Financial Adviser. If you were to proceed with their advice, we may be paid a referral fee, which can range from 0-30% of the commissions received by the Financial Advisor/FAP for the services implemented. Full disclosure on this referral fee will be provided at the time of advice.

Referrals to us, from other Financial Advisers/Financial Advice Providers

We have the possibility of paying a referral fee to the other Adviser, which can range from 0- 30% of the commissions we receive from implementing Risk Insurance products. Full disclosure on this referral fee will be provided at the time of advice.

Fees and Commissions

Our advisers receive a salary as employees of Legaseed NZ Ltd. They do not receive any other incentives or commissions based on the financial advice they provide you. Our adviser, who is also a director and shareholder, may receive additional income by way of a profit share from the business, in the form of dividends, dependent on the business’ performance.

Insurance Fee’s/Commissions

Legaseed NZ Ltd may charge an upfront or initial fee for our risk advice services, however in most cases will instead receive a commission from the product providers/insurers through which we place business. The amount of the commission we receive depends on various factors, including but not limited to, the types of cover provided and the levels of cover put in place, or in short, the premiums the clients pay.

Legaseed NZ Ltd reserves the right to charge a fee for the financial advice provided to a client where a client cancels a life or health insurance policy within two years of inception. Whether a fee will be charged and the manner in which it will be charged will be advised when the advice is provided to the client. This fee will be payable by the client by the 20th of the month after the policy is cancelled.   

Investment/Financial Planning Fee’s

Any fees charged to you by Legaseed NZ Ltd will be determined by the nature and scope of advice and may be for initial or ongoing advice. We will provide you with a clear breakdown of our fees and charges, as well as agree these fees before engaging our services.

Initial Fees

Our initial planning fees will be charged at Legaseeds NZ Ltd’s discretion. These fees will be disclosed prior to entering into an agreement with Legaseed.

Ongoing Portfolio Fees

If a portfolio is held through our platform there will be an ongoing percentage-based advice fee charged to your account, which will be dependent on the scope of your investment.

Investments that utilise the FNZ Custodians Limited wrap platform will also be subject to fees. Lastly there is also a Finzo administration fees, again subject to funds invested and will be fully disclosed prior to implementation.

All above mentioned fees will be fully disclosed to you prior to you giving your agreement to proceed with setting up an account through Legaseed NZ Ltd and engaging our services.

KiwiSaver Fees/Commissions

If you choose to engage our KiwiSaver products and service, Legaseed NZ Ltd may receive a commission from the product providers, that may be based on the value of your KiwiSaver balance. This could be in the form of upfront or ongoing commission and/or an upfront fee.

These fees will be fully disclosed to you prior to you giving your agreement to proceed with setting up a KiwiSaver account through Legaseed NZ Ltd or proceeding with our advice.

Duties

Under the Financial Markets Conduct Act 2013, it is the duty of Legaseed NZ Ltd to ensure I:

●     meet the standards of competence, knowledge, and skill set out in the Code of Professional Conduct for Financial Advice Services (Code of Conduct), which form part of the wider regulatory regime for financial advice and ensure we have the expertise necessary to provide you with advice; and

●     give priority to you, the client’s interests by taking all reasonable steps to ensure that the advice given to you is not materially influenced by our own interests or the interests of any other person connected with the giving of advice; and

●     exercise care, diligence, and skill that a prudent person engaged in the occupation of giving related financial advice would in the same circumstances; and

●     meet the standards of ethical behaviour, conduct, and client care set out in the Code of Conduct, to treat you as we should and to provide you with suitable advice.

Our complaints handling process;

Legaseed NZ Ltd values its client’s opportunity to provide feedback regarding any part of the service they have received as well as the chance to rectify any issues when clients are dissatisfied in any way.

If you would like to raise issues regarding the service you have received, Legaseed NZ Ltd has an internal complaint process.

The companies’ internal process is:

1. In the first instance, please contact a member of our team to discuss your complaint in further detail. Where possible we will try to resolve your complaint immediately. If your complaint is unable to be resolved immediately, we will request that you formally lodge your request by either email or post.

2. We will acknowledge receipt of your complaint within 2 working days of receiving it and advise you how we intend to resolve it. This may require us to request more information from various sources, including yourself. We will speak with all parties involved, including yourself, and review all necessary documentation on file.

3. We aim to resolve your issue within 10 working days of receiving your complaint, but will notify you of any circumstances that may hinder our ability to do so

4. We will contact you by phone, email or written to let you know whether we can resolve your complaint and how we propose to do so.

5. Where applicable, we will contact you to ensure that our response has been received, and that the matter is resolved to your satisfaction.

If you would like to make a complaint, please contact our internal complaints manager Charlotte Catley at charlotte@legaseed.co.nz.

If you are not satisfied with the outcome of our internal complaints process, we also have an external complaints process, through which you are able to escalate your complaints to our dispute resolution scheme:

Scheme:                     Financial Dispute Resolution Service

Address:                     Freepost 231075

                                    PO Box 2272

                                    Wellington 6140

Telephone number:  0508 337 337

Email address:           enquiries@fdrs.org.nz

Our external disputes resolution scheme is a provider that helps resolve complaints about financial service providers and are free of charge.

If you require any further information or have any questions about our services, please do not hesitate to contact us. By engaging our services, you acknowledge that you have read and understood this disclosure.

Note: This disclosure is for the purpose of providing information about our services and is subject to change. Please refer to the most recent version available on our website or contact us directly if you would like a copy.