Disclosure

Our advice business, McKenzie Enterprises Ltd, has a subscriber agreement for services provided by Ignite 2018 Limited (Ignite) (a service company that does not provide financial advice) for which we pay a monthly bundled service fee per financial adviser.

Ignite has a preferred investment provider agreement with Fisher Funds Management Limited (Fisher Funds) relating to investments placed with Fisher Funds by Ignite member clients. Under this agreement Ignite receives a fee equal to a small percentage of the investments placed with Fisher Funds.

Ignite also provides a Discretionary Investment Management Service (DIMS) through which McKenzie Enterprises Ltd Limited uses the Ignite Portfolio Service (IPS) for clients as a possible investment solution. Ignite receives an administration fee for the services it provides to the Ignite Portfolio Service (IPS) detailed in the IPS Client Agreement. These fees are disclosed in the IPS Investment Proposal.

No portion of the above mentioned fees are paid to McKenzie Enterprises Ltd or its advisers, and we aren’t under any obligation to place any particular level of business with Fisher Funds or with the Ignite Portfolio Service, but McKenzie Enterprises Ltd indirectly benefits from those fees through the Ignite member services they help fund.

McKenzie Enterprises Ltd is also a minority shareholder in Ignite.

We manage the resulting conflict of interest by ensuring our advisers only recommend Fisher Funds or Ignite Portfolio Service investment products where the adviser is satisfied that those products provide the best outcome for our clients, when compared with any other product we are able to recommend, having regard to the nature and scope of the service agreed with the client.

In addition to stated client advice fees McKenzie Enterprises Ltd may also receive a trail (ongoing) fee directly from KiwiSaver providers on whose products we give financial advice. If you decide to take our KiwiSaver advice, the KiwiSaver provider may pay us this ongoing trail fee which is typically equal to 0.25% p.a. of the KiwiSaver balance, paid directly to the adviser monthly. Specific fees will be advised to you when advice is provided.

To ensure that our financial advisers prioritise the client’s interests above their own and to manage the potential conflicts of interest as disclosed above, McKenzie Enterprises Ltd adviser follows an advice process that ensures personalised recommendations are made on the basis of the client’s goals and circumstances, as advised by the client. McKenzie Enterprises Ltd financial advisers completes regular training, including how to manage conflicts of interest. Adviser has a regular compliance review of their advice process and our compliance programme is reviewed annually by our compliance adviser.

How we manage any conflicts of interest

To ensure our advisers prioritise our clients’ interests:

• We follow an advice process that ensures our recommendations are made appropriately, based on clients’ goals and circumstances.

• All our advisers undergo annual training about how to manage conflicts of interest.

• We maintain registers of conflicts of interests and the gifts and incentives we receive. These registers are monitored regularly, and additional training is provided as required.

• We undertake an annual independent Compliance Assurance Review.