Duties and Obligations
We are bound by the duties of the Financial Markets Conduct Act (431I, 431K, 431L, 431M) to:
• Give priority to the client’s interests by taking all reasonable steps to make sure our interests don’t materially influence our advice.
• Exercise care, diligence, and skill in providing advice.
• Meet the standards of competence, knowledge, and skill-set outlined in the Code of Conduct.
• Meet the standards of ethical behaviour, conduct, and client care set out in the Code of Conduct
Six Step Advice Process
We follow a six-step advice process whenever providing financial advice. This process ensures we are meeting our above regulatory duties and obligations.
The process is as follows:
1. Establishing the client-adviser relationship.
2. Gathering client data and determining their goals and expectations.
3. Analysing and evaluating the client’s financial position, including the client’s cash and debt management, personal and business insurance, retirement and estate planning needs and or investment needs.
4. Developing and presenting our written advice.
5. Overseeing the implementation of the plan.
6. Monitoring and reviewing the plan.
Commission
NAV Financial is remunerated by lenders and insurers when a loan is drawn down or an insurance policy is issued. NAV Financial is paid ongoing commission from KiwiSaver and Investment providers to cover the expense of providing ongoing support and advice.
Lending
NAV Financial is paid initial commission for mortgages ranging from 0.45% – 1% of the loan facility, and ongoing commission ranging from 0% to .2% of the loan facility- calculated annually but paid monthly. NAV Financial may also be paid a refix fee of $150 when financial advice is provided to assist with a fixed rate rollover
Personal and Business Insurances
NAV Financial receives initial commission ranging from 10% to 220% of the initial annual premium on the policy. Ongoing commission ranging from 5% to 30% of the annual premium is paid for the life of the policy.
KiwiSaver Advice
NAV Financial receives ongoing commission ranging from 0.3% to 0.5% of your fund balance.
Investment Advice
Nav Financial receives ongoing commission of 0.45% of your fund balance.
Fees and Expenses
Lending
Nil commission fee
Where lenders don’t pay commission: we charge a fee of between 0.5% and 1.5% of the total loan amount. As soon as it becomes apparent that a mortgage will be placed with a provider that does not pay commission we will inform you of this and let you know the percentage of your loan amount that will be added as a fee. This will be agreed upon, inwriting, before any further advice will be given.
Bridging Finance Fee
Where advice is provided in relation to bridging finance: we charge a fee of between 0.5% and 1.5% of the total loan amount. As soon as it becomes apparent that a mortgage will be deemed by us to be bridging finance we will inform you of this. If the bridging finance fee is payable, we will send you an invoice advising the details of the fee and how it has been calculated. The fee will be payable 10 working days from the date of the invoice, and details of how to make payment will be included on the invoice.
Lending withdrawal fee
Where a lending approval, conditional or unconditional, has been obtained from a lender and you withdraw, transfer or cancel your application: we charge a fee for the services performed.
● The fee will be based on the time worked on your application and will be charged on the hourly rate of $300 per hour.
● The maximum charge for this service is $2,100.00 which iscalculated at 7 hours x $300 per hour.
Homeloan Recovery Fee:
If a client repays a home loan early, NAV Financial may be required by a lender to refund, all of, or a portion of the commission received for services provided. This is commonly referred to as a “Clawback”.
To ensure that NAV Financial Limited is fairly compensated for the services originally provided to its clients, we may seek to recover some, or all, of this cost from clients.
For Home Loans, if you are charged a recovery fee, it will be a maximum of $2,100 calculated as 7 hours x $300 per hour. Examples of when we may charge you a recovery fee include:
● The property was refinanced within 27 months of settlement and NAV Financial was not given the opportunity to arrange the refinance.
● The property is sold and/or the loan repaid within 27months of settlement
If a fee is payable, we will send you an invoice advising the details of the fee and how it has been calculated. The fee will be payable 10 working days from the date of the invoice, and details of how to make payment will be included on the invoice.
This fee is in no way associated with the above nil commission and bridging finance fees.
Conflicts of Interest
I am paid commissions by lenders when a mortgage settles and in some cases at the mortgage anniversary each year.
I ensure that I prioritise your interests by following an advice process that considers your circumstances and goals.
I research suitable products and providers to ensure the advice meets your needs. I also undergo annual training on how to manage any conflicts of interest and record any conflicts in a register that we review and manage.
NAV Financial Limited is subject to a yearly audit and compliance reviews to ensure we meet our obligations while doing right by our clients.
I have no relationship with any person or organisation that would influence me while giving advice.
I follow a six-step advice process which includes thorough research and diligence with my product selection.
This process ensures I meet my client’s specific needs and always place their interests above my own. This process can involve a series of meetings with a prospective client before I finalise our advice. I maintain a close ongoing relationship with my clients, regularly reviewing progress and working with them over time to help meet their goals.
Complaints Handling and Dispute Resolution
If you are not satisfied with our service or financialadvice please tell us as soon as possible so that we can try and resolve this for you. We will do our best to try and resolve any complaint received as quickly and effectively as possible.
Please contact Jordan with any concerns by calling 027 5006869 or emailing
jordan@navfinancial.co.nz. You can also write to us at 37 Commerce St, Kaitaia 0410.
We will follow our internal complaint process. We will consider your complaint and let you know how we intend to resolve it. We aim to resolve complaints within 10 working days of receiving them. If we need more time to investigate your complaint, we will let you know when you can expect to receive a response to your complaint.
If we cannot agree on how to fix the issue or if you decide not to use our internal complaints scheme, you can contact our external disputes resolution provider the Financial Disputes Resolution Service (see below). They provide a free and independent dispute resolution service that may help to investigate or resolve your complaint if we haven’t been able to do so in your situation.
External Dispute Resolution Scheme- Financial Services Complaints Ltd (FSCL)
NAV Financial Ltd membership number is 9016.
You can contact the FSCL at:
Financial Services Complaints Limited
0800 347 257
info@fscl.org.nz
PO Box 5967, Lambton Quay, Wellington, 6145
