1. How to find a Financial Adviser?
Though one might be referred to a financial adviser in a number of ways — a personal or professional referral, via the internet, for example — the decision to engage a financial adviser in our experience and opinion is best made by making personal contact, accepting a free consultation, considering the professional qualifications and experiences of the adviser, and then trusting your intuition to choose someone in whom you trust.
A good financial adviser will become part of the family, someone who wants to be included in all the important decisions you make in life and the important events that happen along the way.
2. What is financial planning?
It can help to think of Financial Planning as “Life Planning”, in that it is the process of planning for the financial aspects of the needs and consequences of the major events in our life — working, saving, buying a home, marriage, having children, paying for you children’s education, saving for retirement, earning an income when retired, and passing one’s wealth on to family upon death.
Good planning will also consider unexpected events such as illness, job loss or untimely death.
3. Do I need a financial adviser?
The more complex your life becomes, the more likely it will be to benefit from a personal relationship with a financial adviser. Once you’ve begun your profession, start paying taxes, have needed to save and grow assets to provide for retirement, have a home or want to own a home, get married, have children and so on, you’ll enjoy the benefits of having a financial plan created by a qualified financial adviser.
4. What is a fee-only financial adviser?
A fee-only (as opposed to “fee-based”) financial adviser receives compensation directly from you, versus paid commissions from the products they sell. This means they represent you and your interests when giving advice and are not tempted to make frequent and unnecessary trades and transactions to increase their income. This fee may be charged as a percentage of the assets they manage for you; it could be a flat annual fee or an hourly rate.
Fee-Only Financial Adviser
Paid directly by clients for their services and can’t receive other sources of compensation, such as payments from fund providers
Act as a fiduciary, meaning they are obligated to put their client's interests first
Fee-Based Financial Adviser
Paid by clients but also via other sources, such as commissions from financial products that clients purchase
Brokers and dealers (or registered representatives) are required to sell products that are "suitable" for their clients.
5. What is the new financial advice regime?
All financial advisers in New Zealand have a legal responsibility to act with care, diligence and skill, and not act in a misleading, deceptive, or confusing way.
On 15 March 2021, the laws governing financial advice in New Zealand were changed.
To give financial advice to retail clients in the new financial advice regime, advisers must either hold a Financial Advice Provider (FAP) licence or be engaged to operate under a Financial Advice Provider’s licence as a Financial Adviser or be engaged to operate through an Authorised Body or Nominated Representative (if they’re an employee of a bank, for example).
A financial advice provider (FAP) is an individual or entity (e.g. a company) that provides a "financial advice service". An individual or entity provides a financial advice service if they give regulated financial advice to their clients on their own account, or they engage others to give regulated financial advice to their clients on their behalf.
To use the term Financial Advice Provider (FAP), an individual or entity must be registered on the Financial Service Providers Register (FSPR). This is a public register which is maintained by the Companies Office.
To provide advice to retail clients, one also must either:
hold a FAP licence OR
operate directly under a FAP licence or through an authorised body
Stewart Financial Group Limited (FSP27403) is an authorised body under Finzo NZ Limited (FSP522646), a FAP licence holder.
6. What is "accredited investment fiduciary", and why is it important?
Accredited Investment Fiduciary® (AIF®) training empowers investment professionals with the fiduciary knowledge and tools they need to serve their clients’ best interests while successfully growing their business. Advisers who earn the AIF® Designation can demonstrate the added value they bring to prospective and existing clients.
Our Wealth Management advisers are trained and designated by Accredited Investment Fiduciary (AIF®). To maintain the designation, AIF® designees must complete continuing education training to keep up to date with changes in the financial industry and the ongoing evolution of legal requirements under the fiduciary standard.
7. What is CEFEX, and why is it important?
The Centre for Fiduciary Excellence (CEFEX) serves as an independent auditor to verify that an investment advisory firm conforms to all practices and criteria that comprise the Global Standard of Fiduciary Excellence. To date, just over 100 firms across the globe have achieved this certification. There are only Eight CEFEX certified firms in New Zealand, and Stewart Group is one of the two CEFEX Certified Firms in Hawke's Bay.
8. Why is “Independence” Important?
The terms “unbiased”, “impartial” bring with them the obligation to manage any potential conflicts of interest which may come from obligations to or payment from a party other than a client.
Stewart Group’s Wealth Management service is not just unbiased and not just impartial. It is independent. We have no obligations to or payment from any party other than our client. This means we have no conflict of interest to be managed.
The recent changes to the legislation and regulation of Financial Advisers place a high standard on using the term “independent”.
Stewart Group has reviewed all its Wealth Management practices to ensure they meet this new standard. This is the goal we have been working towards for many years, and we applaud the market changes that allow this.
9. Do you specialise in particular clientele?
We can work with anyone who is committed to meeting financial goals. We also have an affinity for business owners, farmers, doctors, lawyers, and other busy professionals. However, anyone who has the desire to reach their financial goals will be a good client. Our clients tend to share the following attributes:
THEY ARE FINANCIAL DELEGATORS: Our clients are willing to allow us, their Trusted Adviser, to help them make smart decisions about their money so they can do all the things that they can’t delegate to someone else: such as quiet time with family, having fun with friends, exercising, travelling, volunteering etc
THEY ARE PASSIONATE ABOUT THEIR GOALS: All our clients are willing to act about their desire to accomplish their goals. They realise that achieving those goals requires both money and planning.
THEY WANT TO STOP WORRYING ABOUT THEIR MONEY: Our select clientele want the freedom and peace of mind knowing all their financial assets are under the watchful eye of one Trusted Adviser.
THEY VALUE OUR WORK TOGETHER: Our community of clients is comfortable with our fee-only wealth management service. We also charge a percentage of assets under our management.
THEY WANT TO FOCUS ON WHAT’S IMPORTANT: Our clients value our relationship and are ready to simplify life so they can spend their time and energy on those things in life that are most important to them.
10. How often you meet with your clients?
We will meet with clients either in person or over the phone whenever you need us to. We meet formally twice per year when we provide a comprehensive report that contains investment portfolio performance, risk insurance plans, retirement planning and KiwiSaver.
11. How often will a client get reports from you?
Assets’ custodian (FNZ the external partner firm that enables Stewart Group to provide multi-channel wealth management services) will send bi-annual reports with transactions and other information.
Stewart Group will send quarterly and annual reports. We can provide comprehensive customised reports at any time subject to your request.
12. What year-end tax reports are provided?
Your assets’ custodian FNZ will send reports with transactions and other information on a monthly or quarterly basis.
Stewart Group can provide comprehensive customised reports at any time subject to your request.
13. Can I meet with you at no obligation?
Yes. We would like to offer you a free first consultation (in person, if possible) – at absolutely no obligation to you. We will begin with a brief phone conversation to understand your current situation and objectives and share with you our thoughts about the meeting.
14. What do I bring to the first meeting?
When you come in for your consultation, we’ll ask you to bring your latest financial statements (banking, investments, employer-provided retirement plans, etc.) and a current tax return. We will review this information and discuss income sources, retirement plan contributions and balances, financial and real estate assets, insurance coverage, mortgages, other debts, and estate planning documents.
15. Do you work with our lawyer/accountant?
With a client’s permission, we can always work with their other advisers. In fact, we strongly advise we work as a team on their behalf. Allowing us to speak with them and provide or receive information directly assists us in connecting all our clients’ financial professionals efficiently.
16. How do you protect my privacy?
Stewart Group adheres to a strict information privacy policy.
Investments are “held” at independent party custodians who report to us on your investments and activity and we will report to our clients using secure IT systems. This also enables us to electronically submit your withdrawals/deposits and monitor all activity within your account.
17. What is your Fee Structure? How are you compensated?
Our Wealth Management fees are depending upon the size of the portfolio and the work we do. We charge a percentage for the assets under our management according to a schedule outlined in our Statement of Advice. We are not compensated through commissions nor are we reimbursed for the implementation of any of our recommendations.
18. Do you have a portfolio minimum?
Yes, we do, but the minimum can be waived for portfolios slightly below the minimum, for special circumstances such as pre-existing relationship, or at our discretion.
19. How often are my investments rebalanced?
We do have a carefully constructed rebalance procedure and will rebalance our clients’ portfolios accordingly. We may rebalance the portfolios because of market circumstances, a change in your personal circumstances, or due to market changes.
20. Will you consult me when making trades?
Not generally. Occasionally, it will be necessary to react quickly to market changes or other situations we may encounter. Of course, we will discuss any changes as soon as possible. The asset custodians immediately provide trade confirmations and the trades will be reflected on the next periodic report from the custodian.
