Disclosure Statement – Insurance

Here is some key information you need to know to help you understand what type of advice I am able to give you, so that you can make an informed and confident choice when engaging me.

Details about me and my Financial Advice Provider

I am a Financial Adviser. I give advice on behalf of a Financial Advice Provider. My details are set out below.

Full Name: Huiling Cao

Address: GB Pensions Building, 2B William Pickering Drive, Rosedale Auckland 0632, New Zealand

Phone: 027 273 6358

Email: tracy@flowealth.co.nz

FSPR Number: 669771

Name of Financial Advice Provider: Flowealth Limited

Trading as: Flowealth Limited

FSPR Number: 775332

Address: 2B William Pickering Drive, Rosedale, Auckland 0632, New Zealand

Phone: 0272736358

Email: tracy@flowealth.co.nz

My Financial Advice Provider is a member of NZ Financial Services Group Limited

Licensing Information

My Financial Advice Provider is authorised to provide a financial advice service under a current financial advice provider licence issued by the Financial Markets Authority in the name of: FLOWEALTH LIMITED

FSPR Number: 775332

Nature and scope of advice

The information below will help you understand what type of advice I can provide to you.

• I will analyse your insurance needs and help you apply for and choose cover that is suitable for your purpose. The types of insurance products I can help you with are set out below.
• I have access to a range of insurers (set out below).
• Once we have chosen an insurer, and types and amounts of cover that are suitable to you, I will help you to obtain acceptance.
• I may also be able to help you maintain your insurance policy, for example if there are changes in your circumstances requiring changes to the cover.

Insurers I use

I source insurance from a panel of insurers. The current insurers I can use are:

• AIA
• NIB

Products I can advise on

• The types of financial products I can give advice on are:
• Mortgage Protection/RepaymentRedundancy Cover Waiver of
• Premium/PremiumCover

What else I can help you with

I can help you with other services through my referral partners to make is easier for you. However I am not able to give advice on the products they offer and I have not checked to see if they can meet your specific needs. You are free to use other providers of your choice or undertake your own research.

• Tower – F&G
• Asset Finance
• Ray White
• UK Pension Transfers
• XE Money

I am unable to offer legal or tax advice and recommend you consult your solicitor or accountant for this type of advice.

Fees and expenses

Generally you won’t be charged any fees for the financial advice I provide to you. This is possible because, on issuance of an insurance policy, the insurer usually pays commission to me [which is explained in the commission section of this Disclosure Guide]. Any exceptions to this general position are explained below. If these exceptions will apply to you, I will let you know.

One-off fees

I may charge you a one-off fee if the following occurs:

(a) There’s no commission: If you request that I provide financial advice and I do not receive a commission from the insurer, I may charge you a one-off fee. Any such fee would be agreed and authorised by you in writing before I complete the services, and would be based on an estimate of the time spent providing the advice. This may arise in the rare event that you request that I provide financial advice in relation to either a product that is offered by an insurer that is not on our panel of approved insurers, or an insurance that is outside my usual arrangements with my approved insurers.

(b) Commission has to be repaid: If you make certain changes to your insurance policy, the insurer can require me to repay to them the commission I received for your policy – this is called a ‘clawback’ and can be up to 100% of the commission. If this occurs, I may charge you a one-off fee. Set out below are the circumstances in which this would apply and the fee that would be charged to you.

Changes that trigger a clawback

• Your insurance policy is cancelled or the terms materially changed.

Relevant time period 

• The changes occur in the 24 month period following issuance of your policy.

Amount & calculation of one-off fee

• Generally no more than $3,000 (plus GST, if any). Calculated based on a rate of $250 (plus GST, if any) per hour of my time spent providing advice to you in connection with the applicable policy. The fee would not exceed the amount of commission that needs to be repaid to the insurer.

You will be invoiced for any one-off fee and will be given 30 days to make payment.

Commissions & incentives

Commissions & incentives that apply to me.

On acceptance of an insurance application by the insurer, the applicable insurer usually provides me with a commission payment, as described below.

The commission is generally an upfront commission payment, but an ongoing commission payment may also be paid by the insurer. The upfront commission is calculated as a percentage of the first year’s premium that you will pay. An ongoing commission is calculated as a percentage of the premium that you pay for each year the policy is in force.

The maximum percentage that each insurer uses to calculate upfront and ongoing commissions is set out below. If there are any variations to these percentages or other commission payments that may apply, specific to your insurance application, I will disclose this to you as part of my advice process.

I may also receive a referral fee or commission payment if I refer you to our referral partners.

Commission payments or referral fees can be paid in different ways:

• Paid in full to a financial adviser.
• Shared between two or more financial advisers.
• Paid to an employer who then pays a financial adviser a salary.
• Paid in full to a financial adviser’s company, from which the financial adviser takes
  drawings or profit share.
• Shared with a licence holder to cover the costs of the services they provide.

I can provide you with more information to explain which option applies to me.

Occasionally I may receive incentives or rewards from insurers. For example, insurers may provide us with gifts, tickets to events or other incentives.

I manage the conflicts of interest arising from these commission payments, referral fees or incentives by:

Following an advice process that ensures I understand your needs and goals so that I always recommend the best product for you regardless of the type and amount of commission or other payments I may receive.

Ensuring the amount of any insurance cover is in accordance with your identified needs.

Providing you with the table below showing commission rates and types by insurer.

Undertaking regular training on how to manage conflicts of interest.