Financial Services Guide

  • Financial Services Guide of

    Sphere Insurance Group Pty Ltd AFSL. No 478959

    5 Jellicoe Street, Toowoomba, QLD 4350.
    Telephone 07 45649003

    Sphere Insurance Group Pty Ltd holds a current Australian Financial Services Licence No: 478959 and is responsible for the Financial Services Guide. Sphere Insurance Group Pty Ltd is also responsible for the content and distribution of this FSG. The distribution of this FSG is authorised by Sphere Insurance Group Pty Ltd.

    This FSG sets out the services that we can offer you. It is designed to assist you in deciding whether to use any of those services and contains important information about, the services we offer you; how we and others are paid; any potential conflict of interest we may have; our internal and external dispute resolution procedures and how you can access them.

    FSG Validity Date
    This FSG applies from the revision date at the bottom of every page of this document, and remains valid unless a further FSG is issued to replace it. If we give you a supplementary FSG it will not replace this FSG but will cover services not covered by this FSG.

    Sphere Insurance Group Pty Ltd
    Sphere Insurance Group Pty Ltd is responsible for the financial services that will be provided to you or through you to your family members, including the distribution of this FSG. The contact details for Sphere Insurance Group Pty Ltd are at the top of this FSG.

    Our Services
    Sphere Insurance Group Pty Ltd is authorised to, as per its license:
    (a) Provide financial product advice for the following classes of financial products:
    (i) General Insurance products; and
    (b) Deal in a financial product by:
    (i) Applying for, acquiring, varying, or disposing of a financial product on behalf of another person in respect of the following classes of products:
    (A) General Insurance products to retail and wholesale clients.
    As Authorised Representatives of Sphere Insurance we are authorised to provide these same services.

    Insurance Brokers Code of Practice
    We adhere to and closely follow the National Insurance Brokers Association Code of Practice (the Code). The Code sets out standards for brokers to follow when dealing with clients, including requirements to inform clients of remuneration arrangements and any conflict of interest. The Code is available from the National Insurance Brokers Association website

    How we will look after your insurance
    You can contact us to give us instructions by post, fax or email on the contact number or details mentioned on page 1 of this FSG.

    Who do we act for?
    As your insurance broker we normally act for you in providing our insurance services. We’ll tell you before or at the time if we are not acting for you in providing any part of our service.

    For example, an insurer may give us ‘binding authority’ to arrange or enter into insurance products on their behalf. We could also agree to handle or settle claims on an insurer’s behalf. We will inform you if we act for an insurer in this way.

    Product Disclosure Statement
    If we offer to arrange the issue of an insurance policy to you, we will also provide you with, or pass on to you, a Product Disclosure Statement (PDS), which contains information about the particular policy in question, which will enable you to make an informed decision about purchasing that policy.

    Further information when personal advice is given
    We will provide you with further information whenever we provide you with advice which takes into account your objectives, financial situation, needs and objectives. This information may include the advice that we have given you, the basis of the advice and other information on our remuneration and any relevant associations or interests.

    This information may be contained in a statement of advice (SOA).

    When you ask us to recommend an insurance policy for you, we will usually only consider the policies offered by the insurers or insurance providers that we deal with regularly.

    If we give you personal advice, we will inform you of any fees, commission or other payments we, our associates or anyone referring you to us (or us to any insurer) will receive in relation to those policies

    Is insurance advice always tailored?
    Not in all cases. However, we may need information about your Personal objectives, details of your current financial situation and any relevant information, so that we can arrange insurance policies for you or to give you advice about your insurance needs. We will ask you for the details that we need to know.

    In some cases, we will not ask for any of this information. If we do not ask, or if you do not give us all of the information we ask for, any advice you receive may not be appropriate to your needs, objectives and financial situation.

    You should read the warnings contained in any SOA, or any other warnings that we give you carefully before making any decision about an insurance policy.

    Where we provide you with advice about your insurance arrangements, that advice is current at the time that we give it. We will review your insurance arrangements when you inform us about changes in your circumstances, at the time of any scheduled status review or upon renewal of your insurances.

    Your duty of disclosure
    We rely on your disclosures to us to pass on to the underwriter. We act for you in placing cover. If you do not answer the questions we ask clearly and truthfully and the risk is undisclosed to the underwriter your policy could be cancelled or additional premium payable. In that we are acting on your behalf there could also be ramifications for us for failing to provide correct information to the underwriter. This could cause us disciplinary action from ASIC or the underwriter.

    Contractual Liability and your insurance cover
    Many commercial or business contracts contain clauses dealing with your liability (including indemnities or hold harmless clauses). Such clauses may entitle your insurers to reduce cover, or in some cases, refuse to indemnify you at all. You should seek legal advice before signing and accepting contracts. You should inform us of any clauses of this nature before you enter into them.

    Conflicts of interest
    Conflicts of interest may arise in circumstances where some or all of your interests as our client are, or may be, inconsistent with some or all of our interests. We have a conflicts of interest policy and procedure, including training and monitoring, to ensure we are aware of and manage any conflicts of interest. Where a conflict is unavoidable we will consult with you and manage the conflict in such a way so as to avoid prejudice to any party.

    Our remuneration

    Unless we have agreed in writing otherwise, our remuneration will comprise the following:

    1. A commission paid to us by the insurer;
    2. A fee which will be agreed with you beforehand;
    3. or a combination of commission and fee.

    A commission paid to us by an insurer is standard for insurance brokers and our rates of commission typically range from 5 to 35 percent of the premium (before taxes and statutory charges) depending on the type of insurance. Different insurers may pay different rates of commission. In addition, we may also receive the following:

    1. A broker service charge for policy invoicing, premium collection and remittance and for issuing policies and other insurance administration work. This charge will appear on your invoice and will vary depending on the work involved and the commission we receive;
    2. In some cases you may need specific risk advice (such as a business interruption analysis, survey or a valuation). We will charge a separate fee for these services, which we will agree with you beforehand;

    3. In some cases an insurer may quote its premium net of our commission. Where this happens we may increase the broker service charge by the amount of commission that would normally apply to this type of insurance or agree a specific fee with you.

    Where we provide you with a Statement of Advice in relation to a Retail General Insurance Product, we will advise you of the full amount of our remuneration in relation to that Retail General Insurance Product.

    We may charge an additional administration fee for any change to the policy that necessitates us producing a further statement or invoice or a certificate of currency. We may retain this fee from any premium refund arising in connection with the policy change.

    Please note that we treat our remuneration as fully earned when we issue you with a tax invoice, unless we have a written agreement with you that varies this statement. You agree that we may retain all our commission, fees and other remuneration in full in the event of any mid-term cancellation of a policy or future downward adjustment of premium. You also agree that the insurer and Marten Green may offset such remuneration from any premium refund you are entitled to. We want to be entirely transparent about our remuneration so please ask us if you want more information or have any questions.

    Do we receive any other remuneration for our service?

    The law requires us to pay your premiums (and certain moneys paid to us by insurers for your account) into a trust account pending payment to the insurer. We are entitled to earn and retain interest on these monies. Our standard credit terms for premium payments are 14 days. We pay insurers within the period dictated by the law or earlier if the insurer requires.

    We or Sphere Insurance may sometimes receive additional remuneration from insurers through profit commissions on certain Products. Because the amount of the contingent commission earned may vary depending on factors relating to performance of a particular portfolio over an entire insurance period, the amount of contingent commission attributable to any given policy will typically not be known at the time of placement. We will not recommend a product to you unless it is suitable for your needs. If we receive contingent commission on a product we recommend to you, we will advise you at the time of recommendation.

    Our AFSL # 478959          Sphere Insurance Group ABN # 95605842117          AUSTRAC Registered # 100535909          AFCA # 36431

    FSG Rev Date 1st November 2016