LICENSING INFORMATION
MPIP Group Limited (FSP726071) holds a licence issued by the Financial Markets Authority to provide financial advice. Insurance People Limited (FSP28285) trading as Insurance People, Insurance People (Fire and General) Limited (FSP237105) trading as Insurance People / Insurance People (Fire & General) and Mortgage People Limited (FSP28143) trading as Mortgage People are authorised by that licence to provide financial advice.
NATURE AND SCOPE OF THE ADVICE
Insurance People, Insurance People (Fire & General) and Mortgage People provide advice to our clients about life & health insurance, Fire & General insurance and lending respectively. Our financial advisers provide financial advice in relation to these financial advice products.
We only provide financial advice about products from certain providers:
- For life insurance, we work with 5 companies – AIA, Asteron, Cigna, Fidelity Life, Partners Life.
- For health insurance, we work with 4 providers – Accuro, nib, Partners Life, Southern Cross.
- For Mortgages, we work with 11 providers – ANZ, ASB, Avanti, Bluestone, BNZ, Co-operative Bank, Resimac, Southern Cross Partners, Southland Building Society, Sovereign Home Loans, Westpac
- For Fire & General we work with 21 providers – AIG Insurance (inc. Club Marine), Allianz Insurance, AMP Insurance, Ando Insurance, Berkshire Hathaway, Chubb Insurance, Club Auto, Delta Underwriting Agency, Dual Underwriting, IUA, Mecon Insurance, Nautilus Marine, New India, NZI Insurance (inc. Lumley Insurance), Protecsure, QBE Insurance, Rosser Underwriting, TLC, UAA, Vero Insurance, Zurich Insurance. We may use other specialist insurers on a case-by-case basis, if so additional disclosure will be provided.
In providing you with financial advice, we will only consider existing term life, trauma, income protection and health insurance policies (if any). We will not provide advice on existing whole of life or endowment products, so you will need to consult a specialist if you would like advice on those products.
DUTIES INFORMATION
Insurance People, Insurance People (Fire & General), Mortgage People and anyone who gives financial advice on our behalf, have duties under the Financial Markets Conduct Act 2013 relating to the way that we give advice.
We are required to:
- give priority to your interests by taking all reasonable steps to make sure our advice isn’t materially influenced by our own interests
- exercise care, diligence, and skill in providing you with advice
- meet standards of competence, knowledge and skill set by the Code of Professional Conduct for Financial Advice Services (these are designed to make sure that we have the expertise needed to provide you with advice)
- meet standards of ethical behaviour, conduct and client care set by the Code of Professional Conduct for Financial Advice Services (these are designed to make sure we treat you as we should and give you suitable advice).
This is only a summary of the duties that we have. More information is available by contacting us, or by visiting the Financial Markets Authority website at https://www.fma.govt.nz.
FEES & EXPENSES
For Life and Health advice, Insurance People does not charge fees, expenses or any other amount for any financial advice provided to its clients.
For Fire and General advice, Insurance People (Fire & General) may charge a fee for the placement of domestic and commercial insurance policies. The fee that we apply (per policy type) can be up to 5% of the base premium that is quoted by the insurance company before any levies and tax are applied.
For Mortgage advice, generally we do not charge a fee; In the event a fee is charged this will be disclosed in writing at the time.
CONFLICTS OF INTEREST AND INCENTIVES
For life insurance and health insurance, Insurance People and the financial adviser receive commissions from the insurance companies on whose policies we give advice. If you decide to take out insurance, the insurer will pay a commission to Insurance People and your financial adviser. The amount of the commission is based on the amount of the premium; On Life Insurance Policies between 180% and 245% (GST inclusive) and service commission on annual basis of between 7.5% and 10%. On Health Insurance policies between 30% and 140% and service commission on an annual basis between 7.5% and 33.5%. Funeral plans between 10% and 100%.
For Mortgages, Mortgage People and the financial adviser receives commission from the lending institutions on whose lending products we give advice. If you decide to take out a mortgage, the lender will pay a commission to Mortgage People and your financial adviser. The amount of the commission is based on the amount of the loan and ranges between 0.003% and .0085% and service commission between 0.0012% and 0.0020%.
For fire & general insurances, Insurance People (Fire & General) receives commission from the insurance companies on whose policies we give advice. If you decide to take out insurance, the insurer will pay a commission to Insurance People (Fire & General). The amount of the commission is based on the amount of the premium; For Insurance items, between 7% and 25% for everything except travel insurance which is between 22.5% and 30%. Earthquake commission is between 5% and 10%.
To ensure that our financial advisers prioritise our clients’ interests above their own, we follow an advice process that ensures our recommendations are made on the basis of each client’s goals and circumstances. All our financial advisers undergo annual training about how to manage conflicts of interest. We undertake a compliance audit, and a review of our compliance programme is undertaken annually by a reputable compliance adviser.
From time to time, product providers may also reward us for the overall business we provide to them. They may give us tickets to sports events, hampers, or other incentives. To ensure that our financial advisers prioritise our clients’ interests above their own, we follow an advice process that ensures our recommendations are made on the basis of each client’s goals and circumstances. All our financial 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. MPIP Group Limited monitors these registers and provides additional training where necessary. MPIP Group Limited performs an annual review of our compliance programme.
COMPLAINTS HANDLING AND DISPUTE RESOLUTION
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 20 days
If we are unable to promptly resolve your complaint it will be referred to MPIP Group Limited Chief Executive Officer who will investigate the issues further.
Alternatively, you can contact our CEO directly:
Telephone: (09) 360 5620 | Email: [email protected]
Address: PO Box 47218, Ponsonby, Auckland 1144
If you are not satisfied with our response you have the right to refer your complaint to Financial Services Complaints Limited (FSCL) – A Financial Ombudsman Service. FSCL is an independent dispute resolution scheme approved by the Minister of Consumer Affairs and will help you to resolve your complaint. There is no cost to you to use the services of FSCL.
FSCL can be contacted on:
Telephone: 0800 347 257 | Email: [email protected]
Address: PO Box 5967, Lambton Quay, Wellington 6011