This FSG is a guide containing important information about our relationships and associations and is intended to assist you in your decision whether to use any of our services.
This FSG includes information about:
- who we are
- the services we are authorised to provide to you
- how we and our associates are remunerated
- any potential conflict of interest we may have
- our internal and external dispute resolution procedures and how you can access them
Please read in conjunction with our renewal or quotation documents as together these documents form the complete FSG.
STATEMENT OF ADVICE (SOA)
If we provide you with any personal advice for either sickness and accident insurance or a consumer credit insurance product, which takes into account your objectives, financial situation or needs, you will receive from us a Statement of Advice (SOA). The SOA will contain our advice, the basis on which our advice is given and information about the remuneration, fees, commissions, other benefits and any association and relationships that may have influenced the giving of our advice.
For all other types of general insurance products, we will provide you with information about how we are remunerated including any benefits we would receive and any relevant interests or relationships that might be considered as influencing us in the advice or recommendation we have provided.
If we only provide you with general advice for any type of insurance product that is advice which does not take into account your objectives, financial situation or needs, we will give you a General Advice Warning at that time.
PRODUCT DISCLOSURE STATEMENT (PDS)
If we recommend that you acquire or we offer to issue or arrange to issue you a financial product, we will give you information about the particular financial product by providing you with a Product Disclosure Statement (PDS). The PDS will help you make an informed decision about the financial product.
WHO WILL BE PROVIDING THE FINANCIAL SERVICE?
Marsh Pty Ltd (Marsh) will be providing the Financial Service to you. Marsh is a subsidiary of Marsh Inc. Marsh Inc. is a world leader in delivering risk and insurance services and solutions to clients.
Global risk management consulting, insurance broking and insurance program management services are provided for business, professional service organisations and private clients under the Marsh name.
Marsh’s ultimate parent is Marsh & McLennan Companies, Inc. (MMC) which is a public company listed on the New York, Chicago, and London stock exchanges.
WHO DOES MARSH ACT FOR WHEN PROVIDING THE FINANCIAL SERVICE?
We will usually provide financial services on your behalf.
In some circumstances, we may act on behalf of the insurer and not for you. These circumstances arise where we have an authority to effect an insurance policy under a binder agreement with the insurer. This means we can enter into the contract on the insurer’s behalf. You will be notified if this is relevant to the financial service offered or provided to you.
WHAT KIND OF FINANCIAL SERVICES ARE MARSH AUTHORISED TO PROVIDE YOU WITH AND WHAT KIND OF FINANCIAL PRODUCT/S DO THOSE SERVICES RELATE TO?
We are authorised to provide financial product advice and deal in:
- General insurance products
- Life insurance products
- Superannuation products
WHAT COMMISSIONS, FEES OR OTHER BENEFITS DOES MARSH AND MARSH'S AUTHORISED REPRESENTATIVES RECEIVE FOR PROVIDING THE FINANCIAL SERVICES?
We may be paid a commission by the insurer for arranging the policy which is based on a percentage of the premium less stamp duty, fire services levy, GST and any other government charges, taxes, fees or levies. The rate of commission depends on the policy and may range from 0% to 30%. The commission is included in the premium charged and covers things such as expenses we incur in arranging the insurance and a profit component. We retain the commission from the premium you pay us and remit the balance to the insurer.
We may receive a commission on each renewal, reinstatement and some variations of your policy. The rate of commission depends on the policy and may range from 0% to 30%.
We may charge you a broker fee or administration fee rather than commission for arranging the policy.
Our remuneration may also be a combination of charging you a broker fee/administration fee and commission for arranging the policy.
When you pay us your premium it will be banked into our trust account. We retain our remuneration from the total you pay us and remit the balance to the insurer in accordance with our arrangements with the insurer. We will earn interest on the premium while it is in our trust account. We will retain any interest earned. We may earn interest or benefit from foreign exchange differentials in the process of handling client money.
Unless specifically agreed to the contrary, we shall be considered to have earned all remuneration in full at the time the policy is placed. We reserve the right to retain in full all remuneration so earned even where an insurance policy is amended, terminated or otherwise cancelled.
We and companies in the Marsh group of companies (“Intermediary Companies”) may receive additional remuneration from insurers with whom we have profit share, reward for growth and business support arrangements. This remuneration is payable if certain agreed sales and/or profitability targets set by the insurer are met. Where we are involved in such arrangements, we may be considered to have an incentive to place your insurance with a specific insurer. In order to control any potential conflict of interest arising from such services we employ a Conflict of Interest policy and specific rules and controls to avoid conflicts arising.
If we have profit share arrangements, reward for growth and business support arrangements with an insurer that apply to a financial product we arrange for you, we will advise you of this before or at the time of placement with the insurer.
If we arrange premium funding for you we will be paid a commission and/or a fee by the premium funder. The commission that we are paid by the premium funder is usually calculated as a percentage of your insurance premium (including stamp duty, fire services levy, GST and any other government charges, taxes, fees or levies). If you instruct us to arrange or issue a product, this is when we become entitled to the commission and/or a fee.
You may request further details of the remuneration or other benefits disclosed in this document from us within a reasonable time of being provided this document and before we provide you with any financial services.
If you receive personal advice from us, we will tell you in our SOA (where applicable) or other disclosure document about any commissions, fees and any other benefits, in actual dollar amounts where possible (or if it is not known, the manner of calculation) that might reasonably be expected to be, or have been capable of influencing us in providing the advice.
Our representatives receive an annual salary which may include a bonus based on performance. They may also from time to time be eligible to receive incentives or bonuses based on service, retention and increasing new business.
Our representatives may also receive non-monetary benefits from insurers. This may include entertainment at sporting events, hospitality including lunches and attendance at insurer sponsored functions. It is not possible to determine in advance what, if any, non-monetary benefit a representative may receive and these benefits are not generally attributed to any particular product. Marsh has compliance policies that ensure these do not create a conflict with your interests.
All fees, commissions and expenses are (unless otherwise expressly stated) exclusive of GST, which will be added as appropriate.
We will answer any questions you may have about our remuneration to ensure you are clearly informed.
WHAT RELATIONSHIPS OR ASSOCIATIONS EXIST WHICH MIGHT INFLUENCE MARSH IN PROVIDING FINANCIAL SERVICES?
Where you have been referred to us by someone else, if we pay them a fee or commission in relation to that referral, we will tell you.
Some insurance risks may be placed by us with companies in the Marsh group of companies (‘Intermediary Company’) who act as intermediaries. An Intermediary Company is remunerated under its contractual arrangements with the relevant insurer. The rate of remuneration depends on the policy and the insurer and may range from 0% to 15%. The amount that we are remunerated is not affected if we place an insurance risk through an Intermediary Company. As outlined above, our Intermediary Companies may also receive remuneration in the form of profit share arrangements. The amount of our remuneration is not affected if we place an insurance risk through an Intermediary Company.
Marsh receives compensation from insurers for providing consulting, data analytics, or other services. The services are designed to improve product offerings available to our insurance broking clients, assist insurers in identifying new opportunities, and enhance insurers' operational efficiency. The scope and nature of services vary by insurer and by geography. In Australia this compensation is paid in the form of a fixed fee. Where Marsh is involved in such arrangements, Marsh may be considered to have an incentive to place a client's insurance with these insurers. In order to control any potential conflict of interest arising from the provision of these services to insurers, Marsh employs and acts in accordance with its policies and procedures.
We will answer any questions you may have about the above and in particular our remuneration to ensure you are clearly informed.
WHAT SHOULD I DO IF I HAVE A COMPLAINT?
- Contact us and tell us about your complaint. We have our own internal dispute resolution procedure, a copy of which is available upon request. In the first instance you should address any concern or complaint to the Marsh representative servicing your account. Alternatively, you may contact the Marsh Complaints Officer on (03) 9603 2338.
- If your complaint is not resolved to your satisfaction, the matter will be referred to the Marsh Complaints Officer to investigate and take appropriate action. You will be advised within 15 working days of our decision. If the matter is complex and a longer period is required you will be informed.
- We are a member of an external dispute resolution scheme. You may be able to refer the matter to the free consumer service offered by this scheme subject to its terms of reference.
The Financial Ombudsman Service Limited (FOS)
You may be able to refer your complaint to the FOS which is a national scheme for consumers aimed at resolving disputes between clients and their broker or insureds and their insurance companies or claimants who have a dispute with another person’s insurance company in relation to motor vehicle property (i.e. third party) claim.
If you have any query about whether your complaint can be handled by FOS, call 1300 78 08 08 or email email@example.com.
In accordance with s912B of the Corporations Act, Marsh holds professional indemnity insurance which may cover claims arising out of the conduct of Marsh, its employees and representatives in the provision of services by Marsh. The policy also covers Marsh (subject to its terms and conditions) for work done for Marsh by employees and representatives who no longer work for Marsh (but who did at the time of the relevant conduct). In some instance our authorised representatives may hold their own insurance for this purpose.
PREMIUM AND INVOICE CALCULATIONS
We make every effort to correctly determine the premium, fire services levy (if applicable), GST and any other government charges, taxes, fees or levies that apply to your insurance. However, occasionally errors can occur. We may correct any such error and (except to the extent prohibited by law) we will not be responsible for any loss you suffer as a result of the error and its correction.
In some circumstances we may automatically renew your existing policy with your current insurer as per expiring policy details. You will be notified in our renewal invitation or quotation offer if this is relevant to the financial service offered or provided to you. Where this arrangement is in place you can contact us at any time in order to instruct us to stop automatic renewals.
CALL US TODAY
For more information about how you can benefit from our services, contact your Marsh Adviser, or phone 1800 194 888.