Important Information about Saturn Advice

The following sections provide important information about Saturn Advice and are designed to help you determine whether Saturn Advice’s proposition meets your needs. Please contact us if you have any questions.

1. Licensing information

 

Saturn Advice Limited (FSP608669) trading as Saturn Advice, holds a transitional license issued by the Financial Markets Authority to provide financial advice. Saturn Advice’s parent company, Saturn Portfolio Management Limited (FSP36264), is authorised to provide financial advice under the Saturn Advice transitional license.

2. Services provided by Saturn Advice

 

Saturn Advice provides financial advice in relation to investments and financial planning. This includes managing investment portfolios for clients. Our financial advisers provide advice to clients in relation to managed investment schemes, exchange traded funds, some direct equities and bonds, cash, and KiwiSaver funds. Our financial advisers also provide advice on investing via Saturn’s Discretionary Investment Management Service (DIMS) and through Saturn’s Portfolio Superannuation Scheme.

 

We recommend investments to clients that have been approved by our in-house investment committee which is supported by external investment research houses. We are not restricted in the investments we can advise on, providing they are legally available to New Zealand investors, are able to be administered using our 3rd party investment administration provider (NZX Wealth Technologies) and have been approved by our investment committee. We do not have supply/volume obligations with any investment manager. In addition, clients can self-select investments providing the investments are available on the NZX Wealth Technologies platform. 

 

Whilst we may make reference to insurance, mortgages and other financial products in the advice we provide, we do not advise on these products and clients will need to consult a specialist for advice on these. We provide general information on taxes associated with the investments we recommend and can provide general guidance on estate planning. However, we recommend clients consult a specialist in these areas where required. 

 

The financial advice we provide will vary based on each client’s circumstances and requirements. This will range from determining a client’s tolerance and capacity to take investment risk, through to the implementation and ongoing management of specific investment strategies designed to achieve their financial goals, including retirement planning.

3. How we charge for advice

 

Saturn Advice charges fees for the advice it provides to clients. Fees are charged in two ways.

 

  1. An hourly rate of $250 (plus GST) applies for general advice on investments and financial goals. The total cost will depend on the complexity of each client’s situation as this affects the time required to prepare advice. Fees are payable by the client on or before the 20th of the month following when the Statement of Advice is provided to the client.
  2. Fees are charged where Saturn manages investments on behalf of clients. These fees are calculated as a percentage of funds under advice and are deducted from client portfolios at the end of each calendar month. Percentage-based fees start at 1.05% pa (plus GST) and reduce to 0.75% pa for funds under advice in excess of $500,000 and further reduce to 0.68% for funds in excess of $1m. For example, a client with $100,000 would pay $1,000 (plus GST) pa and a client with $1.2m would pay $10,110 (plus GST) pa. These fees exclude any percentage based custody fees charged by Saturn Advice’s investment administration platform provider. All percentage-based fees are disclosed to clients at the time of providing financial advice and before Saturn starts managing any investments. Other charges may apply depending on the investments included in each client’s portfolio. These may include fund manager fees, brokerage when buying and selling listed investments and custody transaction charges for the purchase or sale of international listed assets.

 

The above percentage based fees are usually deductible against taxable income. Clients should take the appropriate tax advice for their own personal circumstances.

 

For clients that are members of the Portfolio Superannuation Scheme (the Scheme), Saturn Advice receives a portion of the percentage-based fees charged by the Scheme for the advice it provides. The Scheme fees are disclosed to clients at the time of providing advice and before clients are accepted into the Scheme. The manager of the Scheme is Saturn Invest New Zealand Limited which along with Saturn Advice, are wholly owned subsidiaries of Saturn Portfolio Management Limited.

4. How we manage potential conflicts of interest

 

To ensure we prioritise client interests above our own:

 

  1. Saturn Advice does not accept commissions or other payments from 3rd party providers on whose products we give financial advice.
  2. All employees working for Saturn Advice, including our financial advisers, are paid salaries. Employees are not incentivised by bonuses or other incentives to meet sales or other targets relating to the advice we give. 
  3. Saturn has policies for conduct and ethics, managing conflicts of interest and the receipt of gifts and hospitality, with the latter requiring any material gifts or hospitality to be entered into a register and approved by management. From time to time, product providers and suppliers of services may provide us with tickets to sports events, hampers, or provide other forms of entertainment. 
  4. We follow an advice process that ensures our recommendations are made on the basis of each client’s goals and circumstances. This includes the recommendation of investments approved by Saturn’s investment committee.
  5. Where we recommend services or products managed by other parts of the Saturn group of companies (for example, the Portfolio Superannuation Scheme), we disclose this relationship to clients.
  6. All of our staff and directors, including financial advisers, are either enrolled as associate members of the CFA Society of New Zealand, or are studying towards or are CFA charter holders. The CFA Society of New Zealand is affiliated with the CFA Institute, a global association of investment professionals whose mission is to lead the investment profession globally by promoting the highest standards of ethics, education and professional excellence.

5. Our complaints handling process

 

If you are not satisfied with our financial advice service you can make a complaint by speaking with one of the Saturn Advice team, emailing us at admin@saturnadvice.co.nz or by calling 0800 757 858. You can also write to us at P O Box 68 355 Victoria St West, Auckland 1142. 

 

Any complaints are investigated in person by the General Manager of Saturn Advice. This includes investigating the background to the complaint, discussing with Saturn staff (and external service providers where applicable), considering actions to resolve the complaint and importantly, looking at ways to improve our service so the issue does not occur in the future.

 

The General Manager will acknowledge your complaint in writing as soon as practicable; and

 

  • If the complaint can be addressed immediately, explain what actions have been taken to resolve your complaint, or
  • Advise what actions are being taken to resolve your complaint and the expected time-frame. The general manager will let you know when your complaint has been resolved.

 

All complaints are recorded in Saturn’s Complaints Register and reported to Saturn’s board of directors.

 

If we cannot resolve your complaint, or if you are not satisfied with the outcome, you can contact the Insurance and Financial Services Ombudsman Scheme. They provide a free, independent dispute resolution service that may help investigate or resolve your complaint if we haven’t been able to resolve your complaint to your satisfaction.

 

You can contact the Insurance and Financial Services Ombudsman Scheme by emailing info@ifso.nz or by calling 0800 888 202. You can also write to them at PO Box 10845 Wellington 6143.

6. Duties under the Financial Markets Conduct Act 2013

 

Saturn Advice, and anyone who gives financial advice on our behalf, 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 (these 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 (these 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.

7. Contact details

 

Saturn Advice Limited (FSP608669) trading as Saturn Advice is the Financial Advice Provider. Click here to be taken to our contact details page for details on how to get in touch with us.