Capstone Financial Planning

This Financial Services Guide (FSG) has been produced by Capstone Financial Planning Pty

Ltd (‘Capstone’, ‘we,’ ‘us,’ and ‘our’).

Capstone is a privately owned and operated financial planning company. We are not owned by

a fund manager, bank or other financial institution. Capstone advisers are equipped to offer

clients holistic advice and solutions that are tailored to each client’s individual needs,

circumstances and advice requirements.

Who is my adviser?

Your adviser is an authorised representative of Capstone. Individual details of your adviser will

be provided to you in their adviser/company profile which includes details of the adviser’s

authorised representative number, their experience, qualifications, charging methodology and

the specific services they are authorised to provide. The adviser profile forms part of the FSG

and is to be read in conjunction with this document.

Your adviser acts on behalf of Capstone and we are responsible for any advisory services your

adviser provides.

Lack of Independence

Under the current regulatory guidelines, we are required to advise you that some Capstone

advisers may specifically choose to receive life insurance commissions in lieu of charging

clients directly when they are providing life insurance related advice.

In the circumstances, Capstone and our advisers would not be considered to be independent

pursuant to the regulatory obligations.

If this specific circumstance occurs, it does not in any way impact Capstone’s and our advisers’

ability to provide clients with holistic needs-based advice and solutions.

Purpose and content

This FSG contains important information to help you decide whether to use any of the services

offered by Capstone. It contains details of:

• The financial services and products we offer

• Our fees

• How we are remunerated

• Any interests, associations or relationships that could affect our advice

• Our complaints handling procedures and how to access them

• Our Privacy Policy.

What other documents might I receive from Capstone?

Before you receive financial advice, you are required to authorise your adviser to undertake this

work and the fees you will pay.

It is important to note that we can only provide personal financial advice after making

reasonable enquiries and after giving consideration to your current personal and financial

circumstances.

When we provide you with personal advice you will receive a written report called a Statement

of Advice (SoA). The SoA will state your relevant personal circumstances, outline the advice

being provided, the basis on which the advice is given, information about any fees,

commissions, and associations relevant to the provision of the advice.

When we offer to issue, arrange the issue of or make a recommendation to acquire a particular

financial product (other than securities) we will provide you with a Product Disclosure Statement

(PDS). A PDS contains information about fees payable, risks, benefits, and significant

characteristics of the financial product.

If your adviser believes it will be of benefit to you, they may recommend you enter into a service

arrangement, which will be documented accordingly for your approval.

If you receive further financial advice from us and a SoA has been previously provided, we may

record details of that advice in a Record of Advice (RoA) where certain criteria are met. The

RoA will include a summary of your relevant personal circumstances or state which previous

advice document contains this information, particulars of the advice being provided, the basis on

which the advice is given, information about any fees, commissions, and associations relevant

to the advice. You can request a copy of any relevant RoA document by contacting your

adviser. These documents will assist you to make an informed decision in relation to the

acquisition of a financial product.

You will also receive a renewal notice on the renewal date of your service arrangement. This will

be provided to you in writing. You must provide your consent in order to continue to receive

service and advice from your adviser. If you do not provide your consent or fail to respond, the

service arrangement ceases, meaning the adviser is not obligated to give service and advice,

and you are no longer obligated to continue paying the associated fee.

Advisory Services

We are authorised to provide financial product advice and deal in the following financial

products to wholesale and retail clients:

• Deposit and Payment Products

• Managed Investment Schemes

• Life Products

• Retirement Savings Accounts

• Standard Margin Lending Facility

• Superannuation

• Securities Remuneration

• Government Debentures, Stocks and Bonds.

Remuneration

Capstone and your adviser are paid for the services they provide through various methods of

remuneration, including payments made by you (service and advice fees), and payments

received from product issuers. These payments will be disclosed to you in your

advice/disclosure document. In circumstances where we cannot determine the amount of

remuneration, we will disclose the method of calculation.

Advice Fees

The Advice Fees you pay to Capstone may comprise one or more of the following:

• A percentage fee based on the value of your holding in a financial product

• A fixed dollar amount

• An hourly rate.

These fees may include:

• Statement of Advice Fee - for the preparation of a Statement of Advice

• Initial Advice Fee - for initial advisory services

• Implementation Fee - for the implementation of financial advice and products

• Adviser Service Fee - when your adviser provides you with advice and service.

These fees are payable by you and may be paid either directly from you or from your financial

product/s.

How will I pay for the services provided?

Prior to providing any service we will mutually agree on the method of our remuneration. We

offer a variety of service levels and fee structures that can be tailored to suit your individual

circumstances.

Please refer to the adviser/company profile provided to you for specific details of your adviser’s

charging methodology.

Insurance (risk) products

Capstone may receive an initial commission from the product issuer when you decide to buy a

risk product your adviser recommends to you. This commission may range from 0.0% to 66%

(including GST) of the initial premium amount, depending on the product. For example, for a

Term Life base premium of $1,000 per annum in a product where the product issuer pays

Capstone an initial 66% commission (including GST), Capstone will receive commission of $660

($600 plus GST). Some product providers may pay commissions on stamp duty and policy fees.

Initial commissions may also be payable to Capstone on any premium increases resulting from

increases in sums insured that you decide to make during the time you hold the product. This

initial commission will only apply to the component of the increased premium resulting from the

increase in sum insured. Capstone may also receive ongoing commission, which may range

from 0.0% to 33% (including GST) of the renewal premium from the 2nd year. For example, an

annual base premium of $1,000 in a product whose issuer pays Capstone a 33% (including

GST) ongoing commission from the 2nd year, Capstone will receive an ongoing commission of

$330 per annum ($300 plus GST).

Distribution of remuneration

Remuneration is payable to Capstone in the first instance. Capstone will then pay any

remuneration earned to your adviser/their company. Details of these payments will be disclosed

in your advice/ disclosure document.

Other forms of remuneration

A) Training and education partner program

To assist in the provision of regular professional training and development, including ongoing

technical training and updates in relation to financial products for Capstone’s advisers and

support staff, we have developed formal business partner relationships with a number of

financial product providers. Each year we selectively invite leading financial product providers to

participate in our training and education program. Participants each contribute financially to this

program. It is important to note that Capstone’s financial product range is not influenced by any

program as Capstone subscribes to independent research and all products are individually

assessed on their own merits. Our program meets all required legal and regulatory standards.

B) Employee non-cash benefits

From time to time, the employees of Capstone may receive non-cash benefits with a cash value

less than $300. A register listing the details of any non-cash benefits between $100 and $300 is

maintained. These non-cash benefits do not influence the financial product recommendations

provided by our advisers to you. If you would like more information, you can request a copy of

the register.

Requesting further information

You have a right to request further information in relation to the remuneration, the range of

amounts, rates of remuneration and benefits received by Capstone and/or your adviser. This

includes remuneration that may be generated from services other than personal advice. Any

request for further information should be made before any service is provided and within a

reasonable time frame.

Other important information

How can I give you instructions?

You can give us instructions by telephone, email or other means agreed with us. Some financial

products have their own rules about how to give instructions. Please refer to the Product

Disclosure Statement of the relevant product for those details.

What is my personal information used for?

Your adviser will collect your personal details and conduct an analysis of your overall situation

including investment needs, objectives and personal financial information before providing any

advice. If you do not provide the personal information requested, we may not be able to provide

you with the financial services you require.

Accessing and updating your personal information

If you have concerns about the accuracy or completeness of the personal information we hold,

you may request to access your personal information by contacting your adviser.

The Privacy Policy

We are committed to protecting your privacy. Your personal information will be handled in

accordance with our privacy policy. This document outlines how the information we collect from

you is used, stored and disclosed. A copy of our privacy policy will be provided to you and can

also be obtained from our offices or from our website.

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Capstone has an obligation under the Anti-Money Laundering and Counter-Terrorism Financing

Act 2006 to verify your identity and the source of any funds. Accordingly, we may ask you to

provide particular identification documents such as your passport or driver’s licence.

Compensation arrangements

Capstone has and continues to maintain Professional Indemnity Insurance in accordance with

the Corporations Act 2001. Our Professional Indemnity Insurance, subject to its terms and

conditions, provides indemnity up to the sum insured for Capstone and our authorised

representatives/ employees in respect of our authorisations and obligations under our Australian

Financial Services Licence. This insurance will continue to provide such coverage for any

authorised representative/representative/employee who has ceased work with Capstone for

work done whilst engaged with us.

If you have a complaint

If you have a complaint about the service provided to you, you should take the following steps:

• Contact your adviser and tell your adviser about your complaint. Alternatively, you may

lodge your complaint with Capstone by either, contacting our Professional Standards

Team on 03 8622 0700 (Toll Free on 1300 306 900), in writing to us at Level 1, 607

Bourke Street, Melbourne VIC 3000, via email at compliance@capstonefp.com.au or on

Capstone’s social media. We will try and resolve your complaint quickly and fairly.

• Capstone is a member of the Australian Financial Complaints Authority Limited (AFCA).

If you feel our response is inadequate or if you have not received a response within 30

calendar days of submitting your complaint, you have the right to complain to AFCA.

They can be contacted on 1800 931 678, you can submit an online complaint form

available at www.afca.org.au, or you may write to them at info@afca.org.au or GPO Box

3, Melbourne VIC 3001. This service is provided to you free of charge.

• Further information about Capstone’s Complaints Policy can be found on Capstone’s

website.

The Australian Securities and Investments Commission (ASIC) also has an Infoline: 1300 300

630 which you may use to make a complaint and obtain information about your rights. If you

have concerns involving ethical and professional conduct, you may consider raising your

concerns with the Financial Planning Association of Australia (FPA). They can be contacted on

1300 626 393 or you can write to them at GPO Box 4285, Sydney NSW 2001.

Capstone Financial Planning Pty Ltd | Australian Financial Services Licence No. 223135 |

ABN 24 093 733 969

Level 1, 607 Bourke Street, Melbourne VIC 3000 | Office: 03 8622 0700 | 1300 306 900 |

Email: info@capstonefp.com.au | www.capstonefp.com.au