OUR LICENCING INFORMATION

Ethical Investing NZ Limited (FSP634849) holds a licence issued by the Financial Markets Authority (FMA) to provide a financial advice service.

Our office contact details are:

Ethical Investing NZ Limited
Level 8, 17 Albert Street
Auckland CBD 1010

e: team@ethicalinvesting.nz
t: 09 337 0997

NATURE & SCOPE OF OUR ADVICE

We provide integrated financial planning and ethical investing advice to our clients.  

Our financial advisers provide financial advice in relation to KiwiSaver, managed funds and direct equities.

We only provide financial advice about investment and KiwiSaver products from certain providers:

  • Investment products: A wide range of NZ and Australian based managed funds, Exchange Traded Funds (ETFs), NZX50 direct equities, NZ government and corporate bonds.
  • KiwiSaver products: ANZ Investments, Booster & Generate (this list may change from time to time)

We are limited to investment products that are available through our Investment Management and Custodial Platform - FNZ.

The investment products we predominantly recommend are ethically-based (socially responsible) investments with a low cost passive/index investment approach. We may use ‘active’ funds for part of a client’s portfolio where they wish to actively favour certain types of investments.

We do not hold any of our clients’ investments in our name.  They are held on the client’s behalf by a registered custodian which is regulated by the FMA under the Financial Markets Conduct Act 2013.  We use an investment platform for the trading of the client’s investments (FNZ).

We do not provide advice or recommendations on insurance or mortgage products but, where appropriate, will refer our clients to suitable specialists in these areas.

OUR DUTIES

The Ethical Investing NZ advisers have duties under the Financial Markets Conduct Act 2013 relating to the way that we give advice.

We are required to:

  • give priority to your interests by taking all reasonable steps to make sure our advice isn’t materially influenced by our own interests.
  • exercise care, diligence and skill in providing you with advice.
  • meet standards of competence, knowledge and skill set by the Code of Professional Conduct for Financial Advice Services which are designed to make sure that we have the expertise needed to provide you with advice.
  • meet standards of ethical behaviour, conduct and client care set by the Code of Professional Conduct for Financial Advice Services which are designed to make sure we treat you as we should and give you suitable advice.

This is only a summary of the duties that we have.  More information is available by contacting us or by visiting the Financial Markets Authority website at: https://www.fma.govt.nz.

OUR FEES

There are three levels of fees and charges:

  • Advice fees – payable to us as your adviser. These may be one-off or ongoing. These are described in the subsection below.
  • Custodial & administration fees – an ongoing fee payable to FNZ Custodians for assets held on the custodial platform. It is calculated and deducted monthly from the client’s custodial account.
  • Fund and investment fees – the costs of the underlying investments, such as managed funds, direct shares and KiwiSaver. They are deducted within the fund.

Advice fees

  • Initial/one-off: We generally charge an initial fee for providing advice, presented in the form of a financial or investment plan. On occasion, we may charge a one-off fee for specific advice. Any initial/one-off fee is payable within 7 days of being issued.
  • Ethical Investing NZ may charge a fee for implementing the investment advice provided to a client.  The client will be advised on presenting the plan whether or not a fee will be charged, and what the fee will be.  If such a fee is charged, it will be calculated as a percentage of the funds being invested and will be invoiced directly to the client.  This fee is payable by the client by the 20th of the month after the invoice is issued.
  • Ongoing advice and service: we generally charge a fee based on a percentage of the total investment funds we manage on behalf of the client. On occasion we may agree a fixed dollar fee. The ongoing fee is deducted monthly from the client’s custodial account.  We have a minimum fee of $2,000 per annum ($165 per month) + GST
  • The initial or one-off fee will be confirmed at the time the nature and scope of advice is known. The ongoing fees (Ethical Investing NZ, the custodian) will be disclosed when our adviser presents the client’s financial plan.

Commission and brokerage:

  • We do not receive any commission on non-KiwiSaver investments on which we advise, on behalf of our clients. 
  • We may receive commission from KiwiSaver providers but this does not influence or conflict any advice we give to our client in relation to their KiwiSaver.

CONFLICTS OF INTEREST

All of our financial advisers are employed and paid a salary by Ethical Investing NZ Limited. None receives any brokerage or commissions. This ensures our advisers prioritise our client’s interests above their own and there are no conflicts of interest in relation to the advice they give. 

Some of our advisers may receive an annual bonus-related payment which is calculated on agreed KPIs and the overall success of the business.  This bonus payment is not client-specific so no conflicts arise. 

Our advisers follow an advice process that ensures recommendations are made on the basis of our client’s goals and circumstances. 

Although there are few conflicts of interest, our advisers undertake internal and relevant industry training for managing conflicts when this training is available.

We also undertake an internal compliance audit and a review of our compliance programme annually.  We are also audited by our investment platform to ensure compliance of Anti-Money Laundering and Counter Financing Terrorism (AML/CFT) requirements.

COMPLAINTS HANDLING & DISPUTE RESOLUTION

If you are not satisfied with our financial advice service, you can make a complaint by emailing team@ethicalinvesting.nz or by calling 09 337 0997.  You can also write to us at: PO Box 316, Shortland Street, Auckland 1140

When we receive a complaint, we will consider it following our internal complaints process:

  1. We will investigate and consider your complaint and let you know how we intend to resolve it.  We may need to contact you to get further information about your complaint.
  2. We aim to resolve complaints within 10 working days of receiving them.  If we can’t, we will contact you within that time to let you know that we need more time to consider your complaint.
  3. We will contact you by phone or email to let you know whether we can resolve your complaint and how we propose to do so.

If we can’t resolve your complaint, or you aren’t satisfied with the way we propose to do so, you may contact Insurance & Financial Services Ombudsman Disputes Resolution Scheme.  They provide a free and independent dispute resolution service that may help investigate or resolve your complaint. 

You can contact Insurance & Financial Services Ombudsman by either:

phone: 0800 888 202 or email: info@ifso.nz or by completing their online complaint form found at: https://www.ifso.nz/make-a-complaint.  You could also write to them at: PO Box 10-845, Wellington 6143.

PRIVACY

We need to obtain some personal information from you in order to provide our advice service to you.  You do not have to provide information to us, but our advice or service may be compromised if you decide not to provide the information we request. 

Your privacy is very important to us so we will take all reasonable steps to ensure that all of your information is kept confidential and secure. 

We may obtain information about you from parties you authorise to disclose to us. We may also provide your information to external parties to enable us to provide our services to you.  This could be to:

  • meet compliance obligations, where it is legally required (including Anti-Money Laundering and Counter Financing of Terrorism compliance, audit and reporting requirements);
  • implement any of our recommendations or variations to our advice;
  • maintain our systems e.g. outsourced IT and communication consultants.

Your personal information will be held at our normal business offices.  We use cloud computing, via security-layered software. It is possible that some electronic files may be held overseas.  In that event, we confirm the necessary privacy protections are in place.

The Privacy Act 2020 gives you the right to request access to and correct your personal information.  If you'd like to access or correct information, please contact us by either calling on 09 337 0997 or sending an email to team@ethicalinvesting.nz.  You could also write to us at: PO Box 316, Shortland Street, Auckland 1140.