DISCLOSURE
Conflicts Of Interest And Incentives
Aurora Financial

For life, health, general, and commercial insurance, Aurora Financial receives 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 Aurora Financial.

The amount of commission received varies as it is calculated as a percentage of the insurance premium charged.

For KiwiSaver and managed investment products, Aurora Financial receives commissions from the provider if you decide to take our limited advice on those products. If you decide to take out those products, the provider will pay a commission to us. The amount of commission is based on the KiwiSaver balance and the managed funds balance.

Aurora Financial only provides recommendations in respect of financial products in the Aurora KiwiSaver Scheme (Scheme), for which Aurora Capital Limited, a related party of Aurora Financial, is the investment manager. This has the potential to influence Aurora Financial to advise clients to invest in the Scheme when it may not be in clients' best interests.

When you seek limited financial advice from Aurora Financial and invest in the Scheme, you will pay a fee that forms part of the annual fund charges charged to you in respect of your membership of the Scheme. These payments create potential conflicts of interest and, as such, have the potential to influence the limited advice provided if advice processes are not properly managed.

You may wish to consider whether these fees are likely to materially influence the limited advice you get and whether your adviser or financial advice provider, or another person connected with them, has any other interests likely to materially influence the limited advice you get.

For mortgages, Aurora Financial receives commissions from the banks (or lenders) with whom we arrange mortgages. If you decide to take out the mortgage, the bank will pay a commission to Aurora Financial. The amount depends on which lender and what type of mortgage is decided.

All Aurora Financial's advisers are full-time employees and remunerated with competitive salaries and "great client outcomes" bonuses.

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 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 (unless it is a limited advice). All our advisers undergo annual training about how to manage conflicts of interest. We undertake a compliance audit, and a review of our compliance programme annually by our internal compliance team and reputable external compliance firm.

Aurora Financial takes the following additional steps to ensure that any conflicts of interest are identified and managed, and that clients' interests are always put first. These are:

  • disclosing the existence of conflicts of interest to investors (for KiwiSaver and managed investment products), including in the disclosure above;
  • the Aurora Code of Business Conduct, which applies to Aurora Financial advisers. This Code provides that advisers must never permit their personal interests to conflict with or to appear to conflict with, the interests of clients. All advisers must make all reasonable efforts to avoid conflicts of interest and ensure that clients are fairly treated;
  • compliance by Aurora Financial advisers with the Code of Professional Conduct for Financial Advice Services; and
  • internal monitoring by Aurora Financial's compliance team to ensure that our directors and employees comply with our duties to clients and all other relevant laws and rules, and regular reporting on compliance-related issues to our board.
 

 
For our Authorised Bodies

For life insurance and health insurance, our Authorised Bodies receive commissions from the insurance companies on whose policies they give advice. If you decide to take out insurance, the insurer will pay a commission to them. The amount of the commission is based on the amount of the premium.

For KiwiSaver, our Authorised Bodies receive commissions from the provider if you decide to take their limited advice on those products. The amount of commission is based on the KiwiSaver balance and the managed funds balance.

From time to time, product providers may also reward them for the overall business they provide to them. They may give them tickets to sports events, hampers, or other incentives.

To ensure that their financial advisers prioritise their clients' interests above their own, they follow an advice process that ensures their recommendations are made on the basis of each client's goals and circumstances (unless it is a limited advice). All their financial advisers undergo annual training about how to manage conflicts of interest. Aurora Financial monitors the compliance of the Authorised Bodies and provides additional training to their advisers where necessary. Aurora Financial performs an annual review of their compliance programme.