Financial Services Guide

/Financial Services Guide

Financial Services Guide
AFS Licence No. 297950

Glossary of terms

AFSLicence means an Australian financial services licence issued under the Corporations Act.
ASIC means Australian Securities and Investment Commission.
ASX means ASX Limited.
Corporations Act means Corporations Act 2001 (Cth).
D2MX means D2MX Pty Ltd ABN 98 113 959 596, AFS Licence No. 297950.
DMA Service means Direct Market Access Service.
FSG means Financial Services Guide.
Licensee means the intermediary that holds an AFS Licence with whom we have entered into an arrangement under which the Licensee may place orders with us on behalf of clients in relation to ASX transactions (or allow the client to place such orders directly with us).
Pershing means Pershing Securities Australia Pty Ltd ABN 60 136 184 962 AFX Licence No. 338264.
Relevant Licensee means the Licensee with whom you have entered into an arrangement under which the Licensee will place orders with us on your behalf in relation to ASX transactions (or allow you to place such orders directly with us).
We, us or our means D2MX.

Purpose and content of this Financial Services Guide
This Financial Services Guide (FSG) is an important document. You should read it carefully and make sure you understand it.
As the holder of an Australian financial services licence, D2MX and its related entity Market Wire Pty Ltd (Corporate Authorised Representative No 001239611 ) the distributor of market commentary (collectively D2MX, we or us) is required to provide you with this FSG.

This FSG is provided by D2MX and its representatives where Representative Profilesare attached. This FSG was prepared on 4 February 2016.
The FSG is made up of a number of equally important parts. Each of these parts is listed on the contents page and is intended to inform you of certain basic matters before we provide you with a financial service. This FSG was prepared to provide D2MX clients who are retail clients about the financial services provided by us.
The information set out in this FSG includes information about:

(a) Who we are;

(b) What services we provide;

(c) The remuneration that may be paid to us and other relevant persons in relation to the services we offer;

(d) What relationships and associations we have;

(e) How complaints against us are dealt with.

This FSG is designed to assist you in deciding whether to use the services we provide which are described below.
Statements of Advice and Product Disclosure Statements

D2MX is authorised to provide personal financial product advice to clients but will not do so with respect to the services provided by Market Wire Pty Ltd.  Accordingly, we will only provide general financial product advice to you and will not take into account your “objectives, financial situation and needs” (Objectives) (as defined by the Corporations Act and ASIC) and therefore this FSG been prepared without taking into account those Objectives. Subsequently, you will not receive a Statement of Advice from us.  You should contact your financial adviser if you require any financial product advice.  D2MX has no responsibility for any financial product advice provided by any other person to you.

If we provide you with services that involve issuing or arranging to issue a financial product, such as exchange trade options (ETOs) securities or foreign exchange, you will be provided with a Product Disclosure Statement (PDS).  The PDS will contain information that might reasonably be expected to have a material influence on your decision whether or not to acquire the financial product.  This will include information regarding the benefits and risks associated with the product and other significant features of the terms and conditions attaching to the product.

Who is D2MX?

D2MX Pty Ltd, ABN 98 113 959 596, is a Trading Participant of ASX.  D2MX holds an Australian Financial Services Licence (AFS Licence) (No. 297950) under which it is authorised to provide financial product advice for the following classes of financial products:

  1.  Basic and non-basic deposit products;
  2.  Derivatives;
  3.  Foreign exchange contracts;
  4.  Government debentures, stocks and bonds;
  5.  Interests in managed investment schemes including investor directed portfolio services;
  6.  Securities; and
  7.  standard margin lending;

and to deal in a financial product by:

 

(f) issuing, applying for, acquiring, varying or disposing of derivatives, foreign exchange and securities financial products; and;

(g) applying for, acquiring, varying or disposing of the following classes of financial products

  1.  Basic and non-basic deposit products;
  2.  Derivatives;
  3.  Foreign exchange contracts;
  4.  Government debentures, stocks and bonds;
  5.  Interests in managed investment schemes including investor directed portfolio services;
  6.  Securities; and
  7.  standard margin lending;

D2MXis a wholly owned subsidiary of Sequoia Financial Group Ltd (SEQ), a company listed on ASX (ASX:SEQ)  Market Wire Pty Ltd is a partly owned subsidiary of SEQ and a related entity of D2MX Pty Ltd.

How we can be contacted

Address:
 D2MX
Level 8
25 Bligh Street
Sydney NSW 2000
Telephone:           1300 130 545
Email:                   info@d2mx.com.au

The services we offer

D2MX provides to retail clients a general advice and execution only service under which D2MX:

 

(h)executes orders on ASX to buy and sell traded products (such as shares, options and warrants quoted on ASX);and

(i)executes orders on ASX to buy, sell, close out and exercise Derivatives (such as Exchange Traded Options and LEPOs);

(j)undertakes other dealings in financial products.

 

Settlement and clearing of transactions executed by D2MX through ASX is undertaken by Pershing, a leading provider of third party clearing services to the Australian market.

We do not issue margin lending facilities, but can assist you with making arrangements with margin lending facility providers approved for settlement purposes by D2MX.

Whilst D2MX is authorised in its own right to provide the above named services, D2MX representatives may be authorised by D2MX to provide all, or only some of those financial services.  The products and services they are authorised to provide will depend on their experience and qualifications with respect to each product or service, and is outlined below for Market Wire Pty Ltd  and in any attached D2MX Representative Profile for authorised representatives.

Market Wire Pty Ltd is authorised to provide general financial product advice in relation to securities (such as shares, company issued options and some warrants.

You should also note that D2MX is obligated by the AML/CTF Act to collect personal information from clients in order to fully verify a clients identity before providing any designated services under the AML/CTF Act.

More information on the products and services offered by D2MX is available on our website at  www.d2mx.com.au

 

Do we provide personal financial advice?

If you use our online services for trading in listed financial products, derivatives and managed funds, we may from time to time provide general advice in relation to financial products. Market Wire Pty Ltd predominantly provides market commentary. We will not, however, provide you with any personal advice. This means that, if we do give advice, we will not take into account your objectives, financial situation and needs. Accordingly, you will not be provided with a Statement of Advice.

 

How you may provide instructions to us

You may only provide instructions to us in accordance with your client agreement with us.  That agreement might require that, if you wish to provide us with instructions, you must do so only through the relevant Licensee.  That agreement might permit you to provide instructions to us directly (such as through a DMA Service) or through the relevant Licensee.

 

How do we charge for our services?

We do not charge you fees for the services that we may provide to you.

Instead, the relevant Licensee may charge you fees in respect of those transactions executed by D2MX on your behalf.  However, the Licensee (not D2MX) determines the amount and structure of any such fees.  The information concerning the fees which the Licensee may charge can be obtained directly from the relevant Licensee.

D2MX will charge the relevant Licensee a fee for those transactions executed through the ASX by D2MX on your behalf (Execution Fee).

In addition to the Execution Fee, D2MX may also charge a range of fees to the Licensee including a fixed monthly fee, a fee per trade, a fee per service and other fees.


Commissions and other benefits from third parties

D2MX and Market Wire is remunerated directly through the fees we charge you. Details of our fees and charges are set out in the schedule to this FSG.

We may also earn and retain interest on monies held for clients in their trust accounts from time to time.

D2MX and Market Wire may provide you with financial products and services from either related or non-related product providers, and may receive a commission payment from product providers where you invest in one of their products or services.  In these cases, the amount and / or the method by which the commission is calculated will be supplied to you at that time that the financial product or service is provided.  Information about the commission payments we may receive is also available upon request.

D2MX may receive trail commissions from third parties as a result of your investment.  In particular, trailing commissions may be received from fund management groups for monies held in your Cash Management Account.  Details of these commissions are contained in the Product Disclosure Statement of the relevant fund or applicable Disclosure Statement of the relevant account.

Trailing commissions may also be received from margin lending groups for funds held.  Details of these commissions are contained in the disclosure document of the relevant margin lender.

 

How are our representatives remunerated?

Directors and employees of SEQ, D2MX, Market Wire Pty Ltd and their subsidiaries and related bodies corporate receive salaries, bonuses, a share of profits and other benefits.

At your request, we will provide particulars of our representative remuneration (including commissions) or other benefits. However, we will only provide this information to you if you have requested it within a reasonable time after this FSG has been given to you and before any financial services identified in this FSG are provided to you.

Will anyone be paid for referring you to us?

If you were referred to us under a referral arrangement, the referrer may receive a one-off fee or a proportion of your brokerage paid. The referrer also may receive other nonmonetary or indirect benefits such as concessionary brokerage rates.

Other Financial Services Licensees may receive commission from us for promoting D2MX Online products, including subscription services. Those Licensees’ remuneration is included in the fees you pay when investing in our products.

 

Do we have any relationships or associations with financial product providers?

We have entered into arrangements with one or more Licensees as described in this FSG.

As noted above, we have entered into arrangements from time to time with various product providers under which we may receive a commission if you invest in one of their products or services.

We may provide you with financial products and services from either related or non-related product providers. We may receive a commission payment from product or service providers where you invest in one of their products or use their services. The following are examples of such arrangements where such commissions may be payable:

  • Cash Management Trust/Cash Management AccountIf you open a Cash Management Trust or Cash Management Account through D2MX, D2MX may receive initial and ongoing commissions based on the balance of the account. Details of any such commissions will be contained in the Product Disclosure Statement of the relevant CMT/CMA provider. Such amounts received by D2MX will not exceed 25 basis points.

 

  •   Margin lending referrals: If you use a margin lending facility through D2MX, D2MX may receive ongoing commissions based on the balance of the account. Details of any such commissions will be contained in the Product Disclosure Statement of the relevant margin lender. Such amounts received by D2MX will not exceed 25 basis points.

 

Complaints resolution

1.2 Our commitment

We are committed to providing quality service and accurate information. As part of that commitment, we are focussed upon improving client satisfaction levels by providing an efficient and accessible system for resolving client complaints.

You have the right to have any complaint about the service received from us investigated and dealt with quickly and effectively in accordance with our complaints resolution procedures.

 

1.3 Client input

To assist us in responding appropriately to complaints, you are requested to prepare any complaint in writing, addressed to:

Compliance Officer
D2MX
Level 8
25 Bligh Street
Sydney NSW 2000

or by email to complaints@sequoia.com.au

You should include as much detail about the circumstances of the complaint as possible, including the name(s) of any of our staff involved.  If available, copies of any background documentation should be provided to us along with the complaint.

 

1.4  Our response

Following receipt of your complaint, the Compliance Officer will acknowledge receipt of it in writing and provide an estimate of the time it will take to investigate the circumstances.  The Compliance Officer will fully investigate the complaint and follow up if further information is required from you. The Compliance Officer will then prepare a detailed written response to you after consideration of all relevant documents and following interviews with the involved employees and their manager(s), if required.  The written response will be mailed or delivered to you.

External complaints resolution – FOS, ASX and ASIC

As we are a member of the Financial Ombudsman Service (FOS), we will advise you if you continue to have a complaint with us that you have the option to pursue your complaint with FOS.  Contact details for FOS are:

 

Financial Ombudsman Service
GPO Box 3
Melbourne VIC 3001

Ph: 1300 780 808
Fax: (03) 9613 6399

If you remain unsatisfied with our response to a complaint, you are at all times free to pursue the matter with ASX.  ASIC also has an Infoline on 1300 300 630 which you may use to make a complaint and obtain information about investor rights.

Compensation arrangements

D2MX has professional indemnity insurance which it considers is adequate having regard to:

(a)the volume and types of business carried on by it;

(b)the number and types of its clients;

(c)the number of its representatives; and

(d)any particular or potential claims that may arise pursuant to our participation in external dispute resolution schemes, including the FOS scheme.

D2MX considers that these compensation arrangements satisfy the requirements of s 912B of the Corporations Act and associated regulations.

Privacy

At D2MX the privacy of your personal information is important to us.  Our privacy policy is contained in the terms of your agreement with us.