We manage all conflicts of interest, ensuring our financial advisers prioritise your interests above their own by following an advice process that ensures our recommendations are made on the basis of your needs and circumstances. All of our financial advisers complete training to understand and manage conflicts of interest. We maintain a register of conflicts of interests and any gifts and other incentives that we may receive. We review our compliance programme annually.
General insurance
We will receive commission from the insurance companies on whose policies we give advice. If you decide to take out a policy, the insurer will pay us commission based on the premium that you pay.
We are a member of Steadfast NZ Limited (Steadfast). Steadfast supplies technology platforms, management, marketing, professional, technical, and buying benefits and services to support us in providing our financial advice services.
Steadfast has arrangements with insurance companies under which Steadfast receives a professional services fee of up to 1.5% of the premium paid for each policy arranged by us with those insurers. These payments are used to operate Steadfast.
A financial adviser may have a conflict of interest in circumstances where financial advice has been provided to two clients who later have a dispute, including in respect of liability. In this instance the adviser would clearly disclose the conflict of interest to the clients and would refer one of these clients to another of our financial advisers for further advice and assistance.
Premium funding
Premium funding enables you to pay the insurance premium over the term of your policy by instalments rather than as one amount. Premium funders charge interest, and they take a power of attorney over your insurance policy, which means they have the ability to cancel your insurance policy if you fail to pay an instalment.
We own the following premium funding companies, Abbott Premium Funding Company Limited and Endeavour Premium Finance Limited. Our premium funding companies may advance your premium allowing you to spread the payments over the term of your policy. If you enter into a premium funding arrangement with either of our companies, we will receive an interest component as disclosed in your premium funding documentation, and as per our disclosure obligations under the Credit Contracts Act.
Life and health insurance
We receive commission from the insurance companies whose policies we recommend. If you decide to take out the insurance we recommend, the insurer will pay commission to Abbott and/or the financial adviser who provider the advice. The amount of commission is based on the amount of premium associated with the insurance, which will be disclosed when the advice is given.
Mortgages and lending
We receive commission from some of the lenders we can provide mortgage and recommendations for. If you proceed to implement the lending with the lender recommended to you, the lender will pay a commission to your financial adviser. The amount of the commission is based on the amount of the lending and specific remuneration will be advised to you when the advice is provided.