R J Sanderson & Associates - Financial Services & Credit Guide

RJS Wealth Management Pty Ltd ABN 24 156 207 126 is a corporate authorised representative (No. 438158) of Modoras Pty Ltd ABN 86 068 034 908. Modoras Pty Ltd is an Australian financial services and credit licence holder. (No. 233209). Modoras Pty Ltd is located at Level 3, 50-56 Sanders Street, Upper Mt Gravatt Queensland 4122. Modoras Pty Ltd has authorised the distribution of this Financial Services & Credit Guide (FSCG).

RJS Wealth Management was founded on a passionate belief that still guides us today: that achieving more is possible for our clients, team members and those people yet to join the financial family. Recognised as a leader in its field, RJS Wealth Management have offices in and around Victoria and New South Wales. Our vision is to make the difference to even more lives, so more Australians experience the confidence and joy that comes from being financially secure. When a team of professionals work together as one, applying laser focus to turning your dreams into reality, financial security is just the beginning.

At RJS Wealth Management, it isn’t only about investing wisely. It’s about truly understanding each and every client, so our team of professionals can confidently deliver tailored recommendations spanning every facet of the client’s financial life: personal cash flow, investments, asset protection, superannuation, retirement planning, and more. And we remain by our clients’ side throughout their financial journey, sharing financial intelligence to enable them to make well-informed financial decisions, every step of the way.

So, if you are yet to join the RJS Wealth Management family, invite us along on your financial journey. We’re confident our expert guidance can take you far. If you’re already a member, thank you for the trust you’ve placed in us. We look forward to continuing to manage, protect and grow what’s important to you.

Lack of Independence statement

RJS Wealth Management and its representatives do not fall into the definition of ‘independent, unbiased or impartial’ due to the association with product providers through the use of Modoras Asset Management Separately Managed Accounts (SMAs). We also receive life insurance commissions where we recommend life insurance products.

However, we’re not exclusively aligned with any one provider, which enables us to provide our clients with a wide range of product options relevant to their needs and to act in their best interests.

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About this guide

This Financial Services and Credit Guide (FSCG) is intended to help you:

understand the financial advice, services and products we’re authorised to provide or assist you with
help you to decide whether to engage a RJS Wealth Management (RJSWM) planner to provide professional advice on your financial future

The FSCG is divided into two parts: Part A and Part B. Both parts must be read together.

Part A sets out, among other things:

who we are
the financial advice and services we provide
the credit assistance we provide
our relationships and associations
how we get paid for the services we provide

Part B sets out, among other things:

who your RJSWM planner is
the financial advice and services they’re authorised to provide
the credit assistance they’re authorised to provide (if applicable)
who they’re associated with
how they’re remunerated

Your financial planner will provide you with Part B at the earliest opportunity (or sooner, if you ask for it).

Who will be providing financial services to you?

RJS Wealth Management Pty Ltd (‘RJSWM’, ‘we,’ ‘us’ or ‘our’) provides wealth advice under Modoras Pty Ltd’s Australian financial services licence (AFSL) 233209 and Australian credit licence (ACL) 233209 respectively. Modoras is part of a group of companies and related business entities that provide wealth management, accounting, taxation and business advice and services, and credit assistance. They include ‘corporate authorised representatives’ we’ve authorised to provide wealth advice under our licences. (For the complete list of companies and entities, please see the ‘The Modoras Group’ section.)

Financial Services Guide

‍What advice and products are we authorised to provide or arrange for you

We can give you advice on	We can arrange the following products for you²
cash flow debt management personal insurance superannuation (including SMSFs¹) retirement planning estate planning (financial planning) leveraged investments investments direct equities¹ margin lending¹ loans (credit assistance)¹ social security¹	deposits and payments personal insurance and life investments superannuation retirement-savings accounts securities (e.g. shares) managed investments (e.g. investor-directed portfolio services) leveraged investments standard margin lending government debentures, stocks or bonds
¹Only some of our financial planners are authorised to provide advice on these areas as they require specialised or technical knowledge. ²Your financial planner typically only recommends products listed on the Modoras Approved Product List (APL). Depending on the circumstances, your planner may recommend a product not on the APL.

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Our financial planners

RJSWM is responsible for the financial advice and services provided to you, as described in this FSCG — Part A. The advice and services are provided by our planners, as ‘authorised representatives’ of RJSWM. For information about each planner’s individual authorisations, please refer to FSCG — Part B. RJSWM takes the competency of our authorised representatives seriously. They’re required to have up-to-date skills and knowledge and to operate only within the limits of their authorisation (these limits are detailed in FSCG — Part B).

Our financial planning process

Typically, these are the four steps to financial advice the RJS Wealth Management Way:

Our financial-planning process

Typically, these are the four steps to financial advice the Modoras Way:

Understanding you

We’ll explain the difference between goals, strategies and solutions – and then help you define your own financial and lifestyle goals. Once you’ve set your goals, we’ll continue gathering data using our ‘Understanding You’ information collection tools. This will give us an overview of your current financial position, including what you earn and spend (i.e. your cash flow), what you own and owe (i.e. your assets and liabilities), and your insurances and estate planning needs. We’ll also ask you what you think and feel about investment risk (your investment profile). This step will help us connect deeply with you — to truly understand where you are now and what more may be possible for your financial future.

Preparing your financial plan

Once you’ve given us the go-ahead, we’ll collect and analyse the relevant information, and prepare a financial plan (also known as a statement of advice, or SOA) for you. Based on your financial potential and investment profile, we’ll confidently and decisively put forward strategies and make recommendations we believe will help you achieve your goals. As well as strategies and recommendations, the plan can prescribe financial products needed to implement it.

Implementing your financial plan

We’ll lead you to action by taking a hands-on approach, coordinating all parties to ensure your financial plan is implemented as it should be - you can rest easy, confident we’ve taken care of things. During the implementation phase, we’ll keep you informed of the progress towards implementing the advice and answer any questions you may have. If you require the expertise of another financial professional, such as an accountant or estate-planning lawyer, we’ll also help you connect with them.

Keeping you on track

The only constant in life is change. Your financial plan needs to be adaptable to changes in your goals and financial circumstances, economic conditions and financial markets, and laws and regulations that impact you. Subject to your agreement with us, at least once a year we’ll review your financial plan and help to ensure you’re still on track to achieve your goals. (If the review needs to be fast-tracked, it will be.) If necessary and in consultation and agreement with you, we’ll make adjustments to your financial strategy and repeat step

Confirming our advice to you

We’ll confirm our advice to you by providing you with one or more of the following documents:

Statement of advice (SOA)
If we give you personal financial advice that takes into account your individual needs, objectives and financial circumstances, we’ll provide you with a financial plan, also known as a statement of advice (SOA).

The SOA details:

your personal information
your financial planner’s recommendations
the fees for our advice and other services
any associations between RJS Wealth Management and its authorised representative and other entities

The SOA should contain enough information for you to make an informed decision on whether to act on the advice. You can request a copy of your SOA at any time up to seven years after the relevant advice was provided.

Record of advice (ROA)

If we give you additional personal financial advice and if your individual needs, objectives and financial circumstances have not changed significantly since we previously gave you advice, we’ll provide you with a record of advice (ROA) (instead of an SOA). You can request a copy of your ROA at any time up to seven years after the additional advice was provided.

Product disclosure statements (PDS)

If we recommend a specific financial product, we’ll physically or virtually provide you a product disclosure statement (PDS) (or similar document) issued by the product provider. The PDS contains information about the product’s features and benefits, fees and charges, and the risks associated with it. It enables you to make an informed decision about whether to acquire the product.

Your relationship with us

We’ll work with you to agree on the advice and services RJS Wealth Management provides to you and how often we provide them. Subject to your agreement with us, at least once a year we’ll review your financial plan (i.e. your statement of advice, or SOA) and help ensure you’re still on track to achieve your goals. The scope and frequency of these reviews will be documented in a ‘client service agreement’. You can contact us at any time to give us updates, requests and /or instructions on your financial position and / or financial product/s. These can be provided verbally or in writing. For your and our protection, we reserve the right to ask you to confirm your instructions in writing before we act on them.

Our financial planning fees

RJS Wealth Management is mainly a fee-for-advice business. You can partner with us in one (or both) of two ways:

having an ongoing relationship
seeking advice for specific needs

The fees charged will:

depend on the complexity of your circumstances and goals and the scope of the advice we provide
vary based on whether the advice is ongoing or for a specific piece of work
vary based on whether specialist advice is required (e.g. margin lending, self-managed super funds, leveraged investments, direct equities, credit assistance)
be charged as a flat-dollar fee, a percentage-based fee, or a combination of both
be discussed and agreed with you beforehand (including any revised estimates outside of the indicative range)
be disclosed in your financial plan (also known as a statement of advice, or SOA) and, if applicable, client service agreement
be paid by you, either directly or from your product

Plan Preparation

Indicative fee (inc. GST)

1st appointment - to collect data, get a snapshot of your current financial position, and establish your goals and objectives. (We may or may not charge you for this appointment. If we do, it will be with your prior agreement.)
2nd appointment - to outline how we can help you and confirm whether you’d like us to prepare a financial plan (also known as a statement of advice, or SOA) for you.
Needs and risk assessments (where required) - research, analysis and selection of strategies, products and investment options to help you achieve your goals and objectives, preparation of the SOA, including our financial advice and recommendations. (This can involve up to 40 hours or more of work.)
Presentation of your written financial plan - including a detailed explanation of its strategies and recommendations and answers to all your questions.

$2,200 to $11,000

Plan implementation fees

Plan Implementation

Indicative fee (inc. GST)

Subject to your approval, the implementation of the SOA may include:

Project managing the implementation of your financial plan
Minor variations to our initial advice
Coordination and resolution of queries between other service professionals (e.g. accountants, solicitors) and you
Preparation and lodgement of paperwork with the selected product providers (e.g. fund managers, superannuation provider
Coordination and resolution of queries between the product providers and you
Keeping you informed of progress, including additional appointments as required
Any extra administrative tasks required

$5,500 to $27,500

Ongoing services fees

Ongoing service	Indicative fee (inc. GST)
Subject to your agreement with us, we’ll review your financial plan at least once a year and, if necessary, adjust it to help ensure you remain on track to achieve your goals. This ongoing service would be described in a document called a ‘client service agreement’.	$2,200 to $11,000 per annum (p.a.), or 0.5% to 1.5% p.a. of assets under management. For example, for a $100,000 portfolio with an ongoing service fee of 1.1% p.a., we would charge $1,100 p.a. or a combination of the two methods above (i.e. flat-dollar fee plus percentage-based fee)

Ad-hoc service fees

Ad hoc service	Position	Hourly rate (inc. GST)
Depending on your circumstances, we can provide you with ad-hoc advice for a specific piece of work. If we think it would be more economical for you to put in place an ongoing service agreement with us, we’ll suggest one. Project management For more complex projects, you can engage us at an hourly rate to facilitate the project or advocate on your behalf. This may include time doing research and analysis, drafting and reviewing documents, providing written advice, writing letters or emails, making phone calls, and travelling. All fees will be discussed and agreed with you beforehand.	Director	$660
	Senior / Specialist Planner	$550
	Financial Planner	$440
	Planning Associate	$250
	Personal Service Associate	$220
	Business Associate	$110

Referral fees

When conducting a holistic review of your financial situation, we may identify other services that might benefit you. If we do, we may refer you to another provider. Similarly, other providers with whom we have a relationship may refer you to us for financial advice. If any referral fees apply, we’ll disclose them to you. However, in most cases RJS Wealth Management will only charge for services we provide to you directly.

Our financial planning commissions

We may receive commissions from product providers, as follows.

Life insurance

If we arrange life insurance for you, we’ll receive the following commissions from the life insurer.

These commissions are included in the premium you pay the insurer.

Level Commissions:
Where we recommend the use of a level commission arrangement we will receive up to 33% per annum of your annual insurance premium.

Upfront Commissions:

Policies in place prior to 1 January 2020 - Upfront commission of up to 135% on the first years premium, and ongoing commission of up to 33% per annum on the renewal premium.
Policies put into place after 1 January 2020 - Upfront commission of 66% on the first years premium, and ongoing commission of 31% per annum on the renewal premium.

Example:

If we recommended you put in place an insurance policy and the premium is $2,000 per annum, we would receive 66% or $1,320 of the first years premium as an upfront commission, and 22% or $440 of the renewal premium assuming it remains unchanged each year.

Commissions are paid before the 15% premium tax rebate is applied and after all relevant loadings, discounts or other rebates are applied. Commissions are not paid on policy fees or stamp duty if they are charged separately.
Where a policy is cancelled within the first two years of being placed into force, or you make a successful claim or reach the benefit expiry age within 12 months of taking out or renewing your policy, the product provider may clawback commission paid. In this case we may seek compensation from you.
Life insurance policies that were in place before the Life Insurance Framework was introduced on 1 January 2018 are ‘grandfathered’. This means the terms of a policy (including commission rates) written before then are still valid.

Other benefits we receive

On occasion, your financial planner may be entitled to benefits, often in the form of ‘sponsorships’. These may include and are not limited to:

training or education courses
catered functions
promotional materials or goods

These sponsorships are not an additional cost to you.

RJSWM’s representatives can only accept other benefits (e.g. wine, event tickets) valued at less than $300 per planner per year. While many of our valued clients like to express their gratitude by giving their planner a gift, seeing you achieve your goals is all the thanks we need. We maintain a register of any alternative remuneration we receive. We’ll happily show you the register if you ask for it. For more information on how RJSWM’s representatives are remunerated, please see FSCG - Part B.

Credit Guide

What is ‘credit assistance’?

‘Credit assistance’ occurs when a ‘credit representative’:

suggests a consumer apply for a loan (also known as a ‘credit contract’), an increase to a loan, or a lease
suggests a consumer stay with an existing credit provider or lessor
assists a consumer to apply for, or increase, a loan or lease

Our credit representatives are authorised to engage in specified credit activities on behalf of the licensee, namely Modoras Pty Ltd (Australian credit licence 233209). The credit products we consider are regulated under the National Consumer Credit Protection Act.

Our credit representatives

Modoras is responsible for the credit assistance provided to you, as described in this FSCG — Part A. This assistance is provided through our credit representatives. FSCG — Part B shows you which of our financial planners (‘authorised representatives’) are also credit representatives — and the credit assistance they can provide you. If you need credit assistance and the authorised representative giving you financial advice is not also a credit representative, they will need to refer you to either a Modoras credit representative or a suitably qualified third party associated with Modoras. When providing credit assistance, our credit representatives do not act as your or the credit provider’s agent — except to the extent necessary to facilitate the loan application. RJSWM takes the competency of our credit representatives seriously. They are required to have up-to-date skills and knowledge and to operate only within the limits of their authorisation (these limits are detailed in FSCG — Part B).

Our credit assistance process

Typically, these are the four steps in credit assistance the RJS Wealth Management way: