Chant West Rollout October 2012

1 Disclaimer Important Notice RI Advice Group Pty Ltd, ABN , holds Australian Financial Services Licence Number and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts. The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.

2 Background The introduction of best interest obligations, as part of FOFA, in 2013 provides an opportunity to review existing processes and ensure we have a consistent approach in supporting advisers. This obligation includes a requirement for the adviser to ‘conduct a reasonable investigation into the financial products that might meet the relevant needs of the client’* As a result, licensees need to be confident that the process they have in place to research and compare financial products is robust in order to provide appropriate advice to clients. Chant West has been selected as a shared research tool available to provide product research information for Licensees to support reasonable basis obligations and best interests obligations being introduced as part of FOFA. *As part of the Corporations Amendment (Future of Financial Advice) Bill 2011 Best Interests Duty

3 What is Chant West? Chant West is a consultancy business that specialises in product research Their system compares 1 million funds and generates 350,000 reports annually Advisers will have access to a suite of Switching Tools – Super Switching Tool, Pension Switching Tool, Super to Pension Tool and Investment Switching Tool They pride themselves on the quality of data, the integrity of comparisons, easy to use tools and high standards of service

4 What are the benefits of using Chant West Appropriate Advice for Clients Industry leading research will assist advisers in providing the best information to clients and assist in meeting reasonable basis and best interest obligations being introduced as part of FOFA Lower Risk Chant West tools will provide outputs to assist in explaining recommendations and demonstrating reasonable basis and future best interest obligations Empowerment Multitude of easy to use tools providing market leading research available on your computer desktop via internet explorer Time savings Ability to work various strategy scenarios quickly, allowing more time for client servicing and appointments Reduced Wait Times Product research and comparison outcomes available in minutes, rather than hours/days

5 How to use Chant West tool The product research and comparison process has been simplified for your convenience. All you need to do is follow this simple process: Log in to the Chant West software Complete the Super, Pension, Super to Pension or Investment Switching Tool (you will need to add, compare products and make a recommendation) Print and Save the tailored report in client file Commence the current SoA process. Refer to Instructions for transferring Chant West information into RI Advice docs. Note: Do not forget to follow the Non-APL Product Approval Process when recommending a non-APL product.

6 Reasonable Basis Guiding Principles We provide high quality, appropriate advice for client objectives, and support this with product recommendations that ensure our clients are better off, overall. Any recommendation to replace products, administration platforms or underlying investments within a platform, should have a reasonable basis and be in the client’s best interests. Making unreasonable or frequent changes to products to generate benefits for the adviser (i.e.. churning) is inappropriate, unethical and illegal. You must be able to demonstrate that your advice will assist the client to meet their needs and objectives better than their current circumstances and that the overall increase in the benefit of the replacement outweighs any increase in costs or disadvantages for the client. When providing a recommendation to replace an existing product with another, you must provide full disclosure in your SoA of the costs, benefits and significant consequences, including disadvantages, of the client choosing to act on your advice.

7 Reasonable Basis Guiding Principles - Continued Non-APL products If, following your investigation of the client’s existing product, you determine that it is suitable for the client and it is not on the APL, you will need to seek a waiver from the Investment Research team prior to making the recommendation. Insurance When providing superannuation advice, consideration should also be given to the existing insurance and whether the client’s insurance needs are met through one of their existing superannuation policies, a new superannuation policy, or standalone outside of superannuation. This will require you to investigate the underlying insurer.

8 Next Steps & Contacts Next Steps You will receive an from Chant West with your log in details You can then begin using the tool Note: Refer to the Chant West User Guide on how to use the tool. Contact Information If you experience issues with software/using tool contact Chant West directly on If you have any questions about the process please contact your Practice Development Coach

9 Q&As Do I have to use Chant West for product comparisons? No, you may continue to complete your own product comparison research. Is Chant West a software programme I need to install? No, Chant West is an online application tool available via internet explorer. How do I get a Chant West log in? You will receive an detailing your log in & password information. If you experience issues with log ins or require technical support phone Chant West directly on Can I use Chant West for insurance comparisons? You can use Chant West for comparisons of insurances held within Super. For insurances held outside of superannuation you need to continue to complete your own product comparison research What if I can't find a product in Chant West? You can contact Chant West directly on