Disclosure Statement

Licensing information

Adair Mortgages operates as a Financial Advice Provider with it's own licence issued by the Financial Markets Authority under (FSP727492)

There are no conditions attached to this licence on the advice that may be given.

Licence Holder/Financial Advice Provider: Adair Mortgages Limited (FSP727492)

Financial Adviser(s): Chad Adair: (FSP558127)

Our advice and Product Providers 

We provide advice to our clients about Home Loan & Personal Insurance products.

Please see the Disclosure Guides for more detail on the products an Individual adviser can give advice on.

We only provide advice about products from certain providers we are accredited with, these are: 

Lenders:

ANZ

ASB

BNZ

Westpac

Kiwibank

SBS

TSB

AIA Go Home Loans

Co-operative Bank

ASAP Finance

Avanti

Basecorp

CMFL

Bank of China

Bluestone

China Construction Bank

Cressida Capital

DBR

First Mortgage Trust

Funding Partners

Liberty

Pepper Money

Plus Finance

Prospa

Resimac

Pallas Capital

Southern Cross Partners

GEM Finance

Insurers:

Accuro

AIA 

Chubb Life 

NIB

Commission 

On settlement of a loan or issuance of a risk insurance policy, we usually receive commission from the applicable product provider. The commission is generally of an upfront nature but may also include a renewal or trail commission. We also receive a fixed rate roll over fee from some product providers if we assist in refixing your loan.

The upfront commissions are between 0.55% and 1.00% of the initial loan balance or amount funded. 

I may also receive 0.15% to 0.20% of the loan balance on each anniversary, or a $150 fee for helping refix and maintain your lending

This commission is used to remunerate the financial adviser that provides the advice, and to pay the expenses associated with running our business including any rent, staff costs and IT resources. From this commission we also pay Kiwi Adviser Network for compliance support, audits and training.

We take steps to ensure that the receipt of commissions does not influence the advice we give to you and that our advisers prioritise your interests by recommending the best product for your purpose regardless of the type and amount of commission we or they may receive. We do this by:

• Ensuring our advisers follow an advice process that ensures they understand your needs and goals and that their recommendations on insurance cover or mortgage products meets those needs and goals.
• Ensuring our advisers receive regular training on how to manage conflicts of interest.
• Providing you with a schedule showing commission amounts and types by product provider. This schedule is contained within each Financial Adviser’s personalised Disclosure Guide. A Financial Adviser will provide you with more information about commissions during the advice process. 

Fees and Expenses 

Generally you won’t be charged any fee for the financial advice I provide to you. This is possible because, on settlement of a loan, the lender usually pays commission to me [which is explained in the commission section of this Disclosure above]. Any exceptions to this general position are explained below. If these exceptions will apply to you, I will let you know.

We may charge you a one-off fee in the following situations: 

(a) No commission: If you request that we provide financial advice and we do not receive a commission, I may charge you a one-off fee. Any such fee would be agreed and authorised by you in writing before we complete the services, and would be based on an estimate of the time spent providing the advice.

This may arise in the rare event that you request that we provide Services in relation to either a product that is offered by a provider that we do not hold an accreditation with, or a product that is outside our usual arrangements with our product providers.

(b) Commission has to be repaid: If a product or service provider requires that we repay commission within 28 months of settlement of your mortgage or 24 months of issuance of your risk insurance policy, this is called a 'clawback' and can be up to 100% of the commission. If this occurs, we may charge you a one-off fee. Details of this will be provided in the adviser's disclosure documents before we start the advice process.   

(c) Early Disengagement fee: In the event you use our advisory services and then instruct us not to proceed with the settlement or application for a product we have been discussing, we may charge a one-off fee to cover the cost of the adviser’s time. Any such fee would be calculated based on a rate of $200 per hour of the adviser’s time spent providing financial advice to you in connection with the applicable product.

The average charge for this service is $3,000 which is calculated at 15 hours x $200 per hour.

Should we need to charge you a fee, you will be invoiced and will be given 30 days to make payment.

Conflicts of Interest

If there are any conflicts of interest apart from commission that could potentially influence the advice that we give, these will be shown in your Financial Adviser’s Disclosure documents 

Complaints 

If you are not satisfied with our service you can make a complaint through the following methods:

• By logging into the Trail client portal and pressing on the “Make a Complaint” button on the bottom right of the page.
• By contacting us directly
• By sending an email to Chad Adair on chad@adairmortgages.co.nz

Once we receive a complaint, we follow an internal procedure to ensure we address the issue. Our process will:

• Acknowledge your complaint within 2 working days 
• Inform you how we will address the complaint
• Gather any information that will help us resolve the complaint
• Aim to resolve the complaint within 10 working days. 
• If we cannot resolve the complaint within this timeframe, we will update you regarding the next steps.

If you are not satisfied with how we addressed or resolved your complaint, you can then contact the FSCL. They are an independent dispute resolution service that costs you nothing to use and will help us resolve any disagreements or finalise outstanding complaints. Their contact details are:

Financial Services Complaints Limited
info@fscl.org.nz
complaints@fscl.org.nz

0800 347 257
+64 4 472 3725

Our Duties 

Anyone within our business giving advice is bound by and supports the duties set out in the Financial Markets Conduct Act. These duties are:

• Meet the standards of competence, knowledge and skill set out in the Code of Conduct
• Give priority to the clients’ interests and
• To exercise care, diligence, and skill in regards to the advice we provide and
• Meet the standards of ethical behaviour, conduct, and client care set out in the Code of Conduct

Privacy Policy:

Available here