Financial Services Guide

Investment based financial products
For existing investments held by you and entered into before 1
July 2013, an upfront commission may range from 0.0% to 4% of
the amount you invest, depending on the product. For example,
for an additional investment of $10,000 in a product whose issuer
pays Capstone a 3% upfront commission, Capstone will receive
an upfront commission of $330 ($300 + GST). Capstone may also
receive ongoing commission, which may range from 0.0% to 1% of
the value of your holding in a product, for as long as you hold the
product. For example, for a holding of $10,000 in a product whose
issuer pays Capstone a 0.6% ongoing commission, Capstone will
receive an ongoing commission of $66 per annum ($60 + GST).
Insurance (risk) products
Capstone may receive an initial commission from the product issuer
when you decide to buy a risk product your adviser recommends
to you. This commission may range from 0.0% to 80% of the initial
premium amount, depending on the product. For example, a Term
Life base premium of $1,000 per annum in a product whose product
issuer pays Capstone an initial 80% commission, Capstone will receive
commission of $880 ($800 plus GST). Some product providers may
pay commissions on stamp duty and policy fees. Initial commissions
may also be payable to Capstone on any premium increases resulting
from increases in sums insured that you decide to make during the
time you hold the product. This initial commission will only apply to
the component of the increased premium resulting from the increase
in sum insured. Capstone may also receive ongoing commission,
which may range from 0.0% to 20% of the renewal premium from
the 2nd year. For example, an annual base premium of $1,000 in
a product whose issuer pays Capstone a 20% ongoing commission
from the 2nd year, Capstone will receive an ongoing commission of
$220 per annum ($200 plus GST).
Distribution of remuneration
Remuneration is payable to Capstone in the first instance. Capstone
will then pay any remuneration earned to your adviser/their
company. Details of these payments will be disclosed in your advice/
disclosure document.
Other forms of remuneration
To assist in the provision of regular professional training and
development, including ongoing technical training and updates in
relation to financial products for Capstone’s advisers and support
staff, we have developed formal relationships with a number of
financial product providers. Each year we invite leading financial
product providers to participate in this relationship program. They
each contribute financially as part of this program. It is important
to note that Capstone’s financial product range is not influenced by
any relationship program as Capstone subscribes to independent
research and all products are individually assessed on their own
merits.
Capstone may receive allowances due to existing arrangements
from a range of financial product providers prior to 1 July 2013.
These arrangements may result in a monetary benefit being paid
to Capstone, which may be based on the amount of funds our
clients have previously placed with these product providers. These
allowances may total up to 0.06% of our Funds Under Advice and
are retained by Capstone and not passed on to our advisers.
As new product providers join this program and others leave, you
will be provided with an updated list via your advice document
(where relevant). Capstone has no preferred product provider
relationship and does not promote any specific product provider or
administration platform.
Version 4.0 April 2018
Capstone Financial Planning Pty Ltd | Australian Financial Services Licence No.223135 | ABN 24 093 733 969
Level 14,