Letter of appointment and engagement

Adviser appointment and engagement

Modified 19 July 2020 - Version 1
We appreciate the investment you have made in seeking personal financial advice and wish to invite you to become a client of our practice.

Personal advice is about delivering a roadmap marking out the best strategy to meet your goals and to ensure you have appropriate products and services at your disposal.

Our goal is to provide you with a relatable, professional and responsive service that you would recommend highly to others.

This document is designed to summarize important points you have related to us and to confirm our understanding of your goals.

Furthermore, this document confirms the framework in which we will work together and the cost for our services.

This document is important.

To proceed with the research, data collection and formulation of your advice we need to confirm certain points including the cost of that advice.

Acceptance of this document does create an obligation to pay the fee stated below for the preparation of a Statement of Advice. This comprehensive document will outline our advice based on your specific circumstances as well as any alternatives we might have considered.

Agreeing to the preparation of an advice document does not compel you to proceed with implementation of that advice or to engage us for ongoing services however both will be offered to you.

We are committed to offering a professional service informed by a code of ethics intended to shape every part of our conduct.

This code of ethics compels us to act with integrity and in your best interests, it requires us to act for you only when we have your free, prior and informed consent and to develop and maintain a high level of relevant skills and knowledge.

If you have any questions prior to accepting this document, please do not hesitate to call your adviser or our office on 1300 160 803. You may also wish to refer to our Financial Services Guide which can be found at www.enva-australia.com.

Kindest regards

Michael Baragwanath

Chairman and Responsible Manager
Our record suggests that your reason for seeking advice was: *
Based on these goals and objectives we have agreed to provide advice document that focuses on the following:*

Superannuation– advice on products you use and how your funds are invested.Insurance– advice on protecting yourself and your family.Estates – advice on the way your assets pass from you to others in the event you die.Investment advice – advice on the products you use and how your funds are invested.Cashflow– advice on the management of your free cashflow after living expenses and how these funds are allocated to meet short, medium- or long-term goals.Debt– advice on the management and use of debt excluding specific credit advice.Strategic advice – a management plan on the way your products and services interact to meet an overarching goal such as transitioning to retirement, reducing work hours or purchasing a specific asset.Government services – advice on the transition to regulated care facilities, accessing the NDIS scheme or Department of Human Services entitlements.Migration – advice on migration compliant investments for pathways such as 188c, 132a or similar.Other
When determining the areas of advice, we may include areas that you have not specifically requested. For example, when considering Superannuation advice for a working person we must also consider the consequence that advice might have on any insurance offered by their superannuation fund and the ability of that person to meet their retirement goal if they are injured.

Our code of ethics requires that we consider the broad effects arising from you acting on our advice. This means actively considering your broader longer-term interests and likely circumstances.

In our advice to you we will make note of the potential consequences of not addressing these areas. You can request that we do address these areas at any time.

We will reissue this document to you promptly for confirmation.
There are the areas we agreed not to address.*
How your money should be invested is largely determined by two factors – the time between now and your stated goal and the amount of money you are able to contribute towards that goal.

Setting aside purely pragmatic or mathematical drivers for investment risk your mental well-being and tolerance of potential losses are important factors for us to consider.
We agreed your investment risk profile was*

0% Growth - Cash and fixed interest0% Growth - High yielding debt30% Growth - Conservative50% Growth - Moderately conservative70% Growth - Balanced85% Growth - Growth orientated100% Growth - High growth investing
We agreed your superannuation risk profile was*

0% Growth - Cash and fixed interest0% Growth - High yielding debt30% Growth - Conservative50% Growth - Moderately conservative70% Growth - Balanced85% Growth - Growth orientated100% Growth - High growth investing
Cash and fixed interest – 0% exposure to growth assets.

Based on our discussions you would like none of your savings to be exposed to growth assets. This means that your investments will be limited to cash, fixed interest such as term deposits and annuities. You may also consider mortgage-based investments or commercial debt but in all cases, you do not expect to suffer a loss in any foreseeable circumstance. You are prepared to sacrifice potential for a higher income to protect what you have and understand that inflation may erode the value of your investment.

Expect a return of 2.7% before fees and taxes and expect a loss 0 years in 20.
High yielding debt – 0% exposure to growth assets.

Based on our discussions you would like none of your savings to be exposed to growth assets however you have an appetite for boosting your income through higher interest yielding debts. This means that your investments will be focused primarily on cash, fixed interest and secured debt such as mortgage-based investments. You do not expect to suffer a loss but appreciate that mortgage based products are illiquid and in the event of default your capital may not be accessible for some time. You are prepared to sacrifice potential for a higher income to protect what you have and understand that inflation may erode the value of your investment.

Expect a return of 5% before fees and taxes and expect a loss 1 years in 20.
Conservatively invested – 30% exposure to growth assets.

Based on our discussions you appreciate that some of your money should be invested in markets that grow and change in value, but you would prefer that your portfolio overall is stable and focused on generating income. You agree to consider any type of financial product but expect that most of your investments will be held in cash, term deposits, mortgages and other products that focus on delivering income rather than growth. You accept that the total return might be lower than other options but accept this so that you are rarely shocked by a dip in your portfolio.

Expect a return of 3.8% before fees and taxes and expect a loss 1 year in 20.
Moderately conservative investing – 50% exposure to growth assets.

Based on our discussions you appreciate that some of your money should be invested in markets that grow and change in value, but you would prefer that your portfolio overall is equally split between generating income and growth. You agree to consider any type of financial product and expect that most of your investments will be held in traditional options such as cash, term deposits, property trusts, Australian and International Shares. You accept that the total return might be negative in a given year but such events should be few and far between if possible.

Expect a return of 5.5% before fees and taxes and expect a loss 2 years in 20.
Balanced investing – 70% exposure to growth assets.

Based on our discussions you appreciate that some of your money should be invested in markets that grow and change in value, you would prefer that your portfolio overall is focused on growth rather than income. You agree to consider any type of financial product but expect that most of your savings will be held in Australian and International Shares, Property trusts. More conservative options such as cash, term deposits and debt instruments will form only part of your portfolio. You accept that there may be some negative years as a result of this growth focus but expect their to be less highs and lows then you would see in a portfolio of Australian shares.

Expect a return of 6.8% before fees and taxes and expect a loss 3 year in 20.
Growth investing – 85% exposure to growth assets.

Based on our discussions you would like the majority of your money to be invested in markets that grow and change in value, you would prefer that your portfolio is heavily focused on growth rather than income. You agree to consider any type of financial product but expect that most of your savings will be held in Australian and International Shares, Property trusts. More conservative options such as cash, term deposits and debt instruments will form only a small part of your portfolio. You accept that there may be negative years as a result of this growth focus but expect their to be less highs and lows then you would see in a portfolio of only Australian shares.

Expect a return of 7.5% before fees and taxes and expect a loss 4 year in 20.
High growth investing – 100% exposure to growth assets.

Based on our discussions you would like all of your investments managed by us invested in markets that grow and change in value, you understand that this will mean accepting market movements both positive and negative. You agree to consider any type of financial product but expect that most of your investments will have a long term focus on growth. You expect to be rewarded by that risk over the long term but accept that published market movements will almost certanly have a direct impact on your portfolio.

Expect a return of 8% before fees and taxes and expect a loss 5 year in 20.
When considering your protection strategy, it is important to ensure you are fully informed about the products, options available to you and the way these policies can be structured.
We discussed how we determine your insurance cover and you chose*

to receive our adviceto provide instructions regarding the amount of cover
Based on our conversation you have asked us to calculate the appropriate levels of cover for each product considering your ability to afford the premium now as well as the level of cover that would meet your needs. Our advice will consider how product options could assist in ensuring the cover remains affordable long term however it will be important that you meet with us to review the cover to ensure it remains in line with your budget and objectives.
After our conversation you have provided specific instructions regarding the amount of cover you would like advice on. You accept that the lack of this objective view and recommendation may result in you being over or under insured and wish to proceed with your requested amounts. You also accept that the cost of the policy may not be affordable.
Because of the nature of your advice we would like to state our understanding of the following:*
The fees for our service:
To conduct research, document your current position, determine an appropriate strategy and document that strategy we have agreed on a fixed fee of:
$   minimum fee*   including GST.
By signing or acknowledging this document by electronic or other means (including voice recording) you accept that this fee is payable upon presentation of the advice document.

Upon acceptance of the advice you can proceed to implement it a further
$implementation fee*  including GST.
You are not obligated to proceed with implementation of your advice at this stage and can confirm your actions or modify the implementation by completing the “Authority to proceed” located within the advice document.
Maintaining your products, reviewing your strategy and keeping up to date with regulatory changes and investment opportunities is important. As part of the advice document you will also be provided with an annual service agreement. This agreement will enable you to access a range of services during the year and can be paid annually or monthly.
With respect to services beyond our initial advice*

we have discussed this and agreed on a fee for the next 12 monthswe have agreed to provide an indicative rangeinsurance commissions are likely to cover your ongoing advice requirementsyou have decided against an ongoing advice relationship and we have taken this into account when making recommendations
We have agreed on the following fee to provide ongoing advice for the next 12 months
$ * per annum including GST
or
$ * per month including GST.
Depending on the nature of the advice provided you may elect to pay these fees from your superannuation, pension or investment account.
We will discuss the ongoing management of your affairs when we present our advice and you can expect the offer of an annual service agreement to cost between
$minimum annual and $* per annum including GST
or
$* and $ maximum month per month Including GST
Depending on the nature of the advice provided you may elect to pay these fees from your superannuation, pension or investment account.
Important warnings:

It is important that you provide us with information that we request so that our advice is appropriate. If we do not receive enough information, we may need to decline to provide advice.
When dealing with insurance products there is an important obligation to disclose medical information to the insurer to the best of your knowledge. Remember this and refer to the product disclosure statement of the insurer for a more detailed explanation of your obligation.
Your privacy is important, and you have the right to access a complaints process if you are not satisfied with our advice or process. Please ensure you have reviewed the Financial Services Guide provided by your adviser.

Timeframes and obligations:

The delivery of personal advice takes time to research and prepare. We rely on prompt responses to calls and emails asking for the information we need to provide a quality service.

If, 30 days after the execution of this agreement you have failed to provide us with the information we have reasonable grounds to request we may decline to provide advice and charge up to 50% of the agreed Advice Preparation Fee to recover fixed costs.

We also expect to deliver our advice to you promptly and if within 90 days of the execution of this agreement we have failed to deliver a completed advice document no fees are due or payable by you. You may choose to re-engage our services, not proceed with advice, ask for another adviser within our team or sign a new letter of engagement. In these and all circumstances under the Privacy Act you are entitled to a copy of any documents we hold that relate to you.

Thank you

We appreciate you reviewing this document carefully, you are free to proceed, suggest modifications or decline to proceed with the agreement at this point without charge.

The relationship you have with your adviser is often long term – we will see you grow, suffer setbacks, meet your goals or change them as your needs change. Our team is committed to remaining available and highly skilled as markets, technology and regulations change. Our entire team will be here if you need us and we will thoroughly enjoy getting to know you, your family and your story. We can’t wait to be part of it.
Execution by client:

I agree to abide and be bound by the terms and conditions of this letter agreement with Enva Australia Pty Ltd and confirm that the information recorded about my goals, objectives and views are accurate and can be relied upon to provide me with personal financial advice.

I confirm that I am aware of the fee for my advice document and accept that a portion of the advice preparation fee may be payable if I choose not to proceed after executing this agreement.
How many people are signing this agreement*

12
If you feel that the answers between each of you vary please ask for a seperate engagement letter to be signed. Your adviser will take into account these differences when preparing your advice.
Date of issue*

MonthDayYear
Date
Full name*

First NameLast Name
Email address*
example@example.com
Second Party*

First NameLast Name
Email of second party*
example@example.com
Address*

Street Address

Street Address Line 2

CityState

Post code
Signature*

Clear
Signature of second party*

Clear
Date signed*
Enva Australia (ABN 21 098 806 501) Australian Financial Services Licence No. 424494.
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Adviser appointment and engagement