DISCLOSURE
Conflicts Of Interest And Incentives
Aurora Financial

For life insurance, health insurance, 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 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 commissions range between 0.55% and 0.85% of the value of the mortgage. The amount depends on which lender and what type of mortgage is decided. In addition, we receive a commission of between 0% and 0.2% of the remaining balance each year.

For KiwiSaver, Aurora Financial receives commissions from the provider if you decide to take our limited advice on those products. The amount of commission is based on the KiwiSaver balance.

Aurora Financial 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.

Most of our 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 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 (unless it is a limited advice). 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 annually by our compliance team.

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, 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.
Him Enterprises Limited

For life insurance and health insurance, HIM Enterprises Limited receives 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 HIM Enterprises Limited. The amount of the commission is based on the amount of the premium.

For KiwiSaver and managed investment products, Aurora Financial, as the trading company receives commissions from the provider if you decide to take our 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 us for the overall business we provide to them. They may give us tickets to sports events, hampers, or other incentives.

To ensure that their financial advisers prioritise our 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 HIM Enterprises Limited and provides additional training to its advisers where necessary. Aurora Financial performs an annual review of their compliance programme.

Caleb Baker Limited

For life insurance, health insurance, Caleb Baker Limited receives 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 Caleb Baker Limited. The amount of the commission is based on the amount of the premium.

For KiwiSaver and managed investment products, Aurora Financial, as the trading company receives commissions from the provider if you decide to take our 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 us for the overall business we provide to them. They may give us tickets to sports events, hampers, or other incentives.

To ensure that their financial advisers prioritise our 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 Caleb Baker Limited and provides additional training to its advisers where necessary. Aurora Financial performs an annual review of their compliance programme.