Our Financial Services Guide is intended to give our Retail Clients information concerning our relationship, prior to our providing you with a financial service. This guide will assist you in determining whether to use any of our services, brief descriptions of which are shown below.
This guide outlines:
- Who we are
- How we can be contacted
- The services we are authorised to provide to you
- How we are remunerated
- Details of any potential conflicts of interest
- Details of our internal and external dispute resolution procedures and how you can access them
- Cooling-off Notice
- Details of our Professional Indemnity insurance.
About Master Builders Insurance
Master Builders Queensland is the State’s leading industry organisation representing thousands of businesses in the building and construction industry. Master Builders Queensland holds Australian Financial Services Licence (AFSL) No 246834 under the Corporations Act 2001 to provide general insurance services.
ABN 96 641 989 386.
The provider of the financial services to you
The financial services will be provided by Master Builders Queensland Insurance Services (MBQIS), a wholly owned division of Master Builders Queensland.
Financial Services we are authorised to provide and the products that relate
Master Builders AFSL authorises us to deal in financial products and provide financial product advice in relation to General Insurance products. This includes:
- Arranging and amending insurance cover on your behalf; and
- Assisting with insurance claims.
Our general insurance services
Who we act for when providing services
We may act:
- On your behalf; or
- On behalf of the insurer (i.e. the product issuer or their agent).
In circumstances when we are acting as agent of the insurer and not for you, we will tell you. This usually occurs when we are arranging the insurance under a binder authority that we hold with the insurer. A binder authority allows us to enter into the insurance contract on behalf of the insurer and this is why we are their agent in the insurance contract.
Remuneration and other benefits we receive for our Financial Services
We may be paid a commission by the insurer for arranging the policy. The commission is based on a percentage of the premium, less stamp duty, fire services levy, GST and any other government charges, taxes, fees or levies. The rate will depend on the type of policy and may range from 10% to 25%.
The commission paid to us is included in the premium charged and covers various expenses incurred by us in arranging the insurance, plus a profit component. When we are paid a commission, we retain it from the premium you pay us and remit the balance to the insurer. We may also receive commission from the insurer on each renewal and on some variations to your policy.
We may also:
- Charge you an administration fee when we finalise your cover Any such charge will appear separately on your Tax Invoice
- Retain interest earned on insurance monies held in our trust pending payment to the insurer
- Be paid a commission by a premium funding provider in circumstances where we assist in arranging a loan for you to fund your premium payments.
Our staff receive an annual salary that can include a bonus based on business performance criteria. In the event of a refund for the cancellation or adjustment of a policy, we reserve the right to retain our remuneration.
Relationships or associations which may influence the provision of our Financial Services
We are not controlled by any insurance company, bank or other financial institution. No such institution has a vested interest in our business and subsequently is not in a position to influence us in arranging your insurance.
Master Builders holds binding authority with some insurers to issue certain contracts of insurance. This means that we hold authority to enter into the contract on behalf of the insurer. When we arrange insurance under binder we will be acting as an agent of the insurer not as your agent.
We are a member of the intermediary network operated by Steadfast Group Ltd (ABN: 98 073 659 677) (‘SGL’).
We have access to shared services from SGL, including compliance tools, manuals and training as well as legal, banking and group purchasing arrangements. These services are funded by SGL, subsidised by SGL or SGL receives a fee for them.
SGL has arrangements with the insurer under which SGL may receive between 0.5% – 1.5% commission of the base premium paid (excluding government charges) for some products arranged by us with the insurer. SGL has similar arrangements with other insurers. SGL may share part of that commission with us. SGL’s FSG is available at www.steadfast.com.au or on request by telephoning SGL’s Company Secretary on + 61 2 9495 6500.
Communication regarding arranging insurances
You may instruct us on how you wish us to arrange your insurances by a personal meeting, phone, fax, email or other means as mutually agreed.
Complaints and disputes
If you are not satisfied with our services you may express your concerns and/or complaints to our Complaints Officer in writing, by telephone, fax or email. You should provide us with comprehensive details to enable us to investigate your complaint fully. Any information you provide to us will be treated with the strictest confidence.
We have certain legal obligations to belong to an external dispute resolution scheme. To comply we are a member of the Australian Financial Complaints Authority (AFCA) which is free to consumers for certain types of Insurance.
You should feel free to contact them at any time with any concern or complaint and they, in turn, will refer the matter to our Complaints Officer for further investigation. You may contact the AFCA on phone 1800 931678 oror email firstname.lastname@example.org.
Additional information for retail clients
The Corporations Act classifies a Retail Client as:
- An Individual; or
- Those who purchase an insurance product for use in connection with a Small Business*.
They must also purchase a general insurance contract which is designated as a Retail Product. Such insurance products which may be available through MBQIS are:
- Motor Vehicle
- Home Building and/or Contents
- Personal and/or Domestic Property
- Pleasure Craft
- Accident and Sickness
- Consumer Credit
- Others as may be prescribed by regulation from time to time.
Cooling off notice
If you are a Retail Client who purchases a Retail Product and you decide that you do not require this contract of insurance, you have 14 days (or longer if the insurer allows it) from the earlier of the date you receive confirmation of this insurance contract and the date the insurance contract was arranged, to change your mind. You must tell the insurer in writing that you wish to return the insurance contract and have the premium repaid.
If you do so the insurance contract will be terminated from the time you notified the insurer. The insurer may retain its reasonable administration and transaction costs and a short-term premium.
You cannot return the contract of insurance if it has already expired or if you have made a claim under it.
Personal advice and general advice
Whenever we provide you with Personal Advice (i.e. advice which takes into account your specific needs, objectives or financial situation) for Accident and/or Sickness and Consumer Credit insurance, we are obliged to give you a Statement of Advice.
This statement will contain our advice, the basis on which it is given and information about our fees, commissions or other benefits and any associations that may have influenced the giving of our advice. Where we provide a General Advice service (i.e. advice which does not take into account your specific needs, objectives or financial situation), we will give you a General Advice Warning at that time and you should consider the product information we provide in deciding whether it is appropriate for your specific needs, objectives or financial situation.
Product Disclosure Statement
If we recommend that you should acquire a financial product, or we offer to issue or arrange to issue you with a financial product, where required we will also provide you with a Product Disclosure Statement containing information about that product. This will enable you to make an informed decision about the acquisition of that product.
Professional indemnity insurance
MBQIS has in place Professional Indemnity insurance relating to errors and omissions arising from advice provided by our representatives, past or present. If you require further information regarding our Professional Indemnity insurance, please contact our Compliance Officer.
*A Small Business is a business which employs less than 20 people (other than businesses that manufactures goods where the limit is 100 people).