14 February 2017
financial-services-guide-feb-2017 (PDF 130 KB)
The purpose of this Financial Services Guide (‘FSG’) is to provide you with details of the financial services provided by Lincoln Indicators Pty Ltd ABN 23 006 715 573, (CARN 001 240 936) (‘Lincoln’) or its directors/employees and to provide relevant information to help you decide whether to use the financial services offered.
This FSG provides details about remuneration or benefits that we (or others) may receive, attributable to the financial services we provide. It also details how complaints about the financial services we provide will be dealt with.
Most financial products, other than listed securities, will have a Product Disclosure Statement (PDS). A PDS is a disclosure document which assists you to make an informed investment decision, including helping you to compare it with other products. It sets out significant features of a financial product, including its risks, benefits and costs. Where applicable, when we offer to arrange for the issue of a financial product to you, we will provide you with a PDS.
The content and distribution of this FSG have been authorised by Lincoln and Lincoln Financial Group Pty Ltd, ABN 70 609 751 966. You can contact us by email at email@example.com or by phone on 1300 676 333 or in writing to Lincoln, Level 2, 379 Collins Street, Melbourne VIC 3000.
Unless specified otherwise, a reference to ‘we’, ‘our’ of ‘us’ in this FSG is a reference to Lincoln or, in the case of financial services provided by Lincoln’s employees or directors, Lincoln Financial Group Pty Ltd.
What services we may provide to you
Lincoln may provide general financial product advice through its Stock Doctor facility (‘Stock Doctor’) and through its employees. Stock Doctor is not in itself a ‘financial product’ as defined under relevant law, but it may provide financial services in the form of general financial advice. Stock Doctor is available through an online application. Stock Doctor is available to private investors and corporate subscribers. In this FSG, the terms ‘membership’ and ‘subscription’ (and related terms) are used interchangeably.
We may also provide general financial product advice to you on securities via another financial services provider (e.g. an adviser), who has a subscription arrangement with us to use Stock Doctor. General advice you receive from us under this arrangement will be sourced by your other financial service provider from Stock Doctor and provided to you in a written report form, which will include our details.
Where we provide general financial product advice through Stock Doctor, we act for the clients to whom these services are provided. (In the above example, the services are provided by us to an adviser – so, we act for the adviser, not for you.)
Lincoln provides access to Lincoln’s fundamental analysis of all listed companies on the Australian Securities Exchange (ASX) through Stock Doctor. For further information on Stock Doctor subscriptions, please visit www.lincolnindicators.com.au.
The research from Stock Doctor is available to other clients who use our services, including the Lincoln Australian Growth Fund and Lincoln Australian Income Fund.
Lincoln is the investment manager of the Lincoln Australian Growth Fund and Lincoln Australian Income Fund (the ‘Funds’) and provides general advice in respect of these Funds. The Funds are managed investment schemes offered by Equity Trustees Limited (the ‘Responsible Entity’ and Issuer). We do not provide any arranging services relating to participation in these Funds, but we can provide factual information about the applications process. Details of each of these Funds are set out in a PDS and Reference Guide available from our website. You should consider the relevant PDS for each of these Funds when deciding to acquire, or continue to hold any of these products.
|Fund type||Minimum initial investment|
|Lincoln Retail Australian Growth Fund||$20,000|
|Lincoln Wholesale Australian Growth Fund||$250,000|
|Lincoln Retail Australian Income Fund||$20,000|
|Lincoln Wholesale Australian Income Fund||$250,000|
Retail investors in these Funds can invest by following the instructions set out in the application form attached to the relevant PDS and then forwarding the completed application to the Responsible Entity.
Other investors can access these Funds through any master trust, wrap account or investor directed portfolio service (IDPS) operator that offers one or more of these Funds. You should consider the PDS or other disclosure document of the relevant master trust, wrap account or IDPS and assess whether the service is appropriate for you before making a decision.
Applications to invest directly in either of these Funds with the Responsible Entity or via a master trust, wrap account or IDPS should be forwarded directly to that service. Please DO NOT provide application forms and cheques or other monies to us, as we do not accept investment monies and this may delay your investment.
Who will be providing financial services to you?
Financial services will either be provided to you by Lincoln through Stock Doctor and/or Lincoln’s employees.
Lincoln is a corporate authorised representative (CARN 001240936) of Lincoln Financial Group Pty Ltd ABN 70 609 751 966. Lincoln Financial Group Pty Ltd is the holder of an Australian Financial Services Licence number 483167 and has authorised Lincoln to provide financial services on its behalf.
To the extent Lincoln’s directors or employees provide financial services, the directors or employees act as representatives of Lincoln Financial Group Pty Ltd.
Neither Lincoln nor Lincoln Financial Group Pty Ltd is responsible to you for the actions of its representatives (including Lincoln). Neither Lincoln or Lincoln Financial Group Pty Ltd is responsible to you for services provided to you by any other third party, including other financial service providers (e.g. advisers). You should refer to the FSG of your other financial services provider for further information about the services they offer.
What kinds of financial services are we authorised to provide you and what kinds of products do those services relate to?
We can provide general financial product advice in respect of the following classes of financial products:
- deposit and payment products
- debentures, stocks or bonds issued or proposed to be issued by a government
- interests in managed investment schemes (including IDPSs)
- retirement savings accounts
- securities (such as shares)
Lincoln can also deal in a financial product by applying for, acquiring, varying or disposing of a financial product on behalf of another person, in respect of the following classes of financial products:
- interests in managed investment schemes (including IDPSs)
- securities (such as shares)
Will you be provided with advice that is suitable to your investment needs and financial circumstances?
No. Where we provide you with advice, it will be general financial product advice only. Our advice will be prepared without taking into account your individual objectives, financial situation or needs; and because of this, before acting on the advice you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs; and if the advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of, and consider, the PDS before making any decision.
What charges will you incur?
If you choose to purchase a Stock Doctor subscription, you will be charged on a subscription basis.
Subscription costs for Stock Doctor are payable to Lincoln and will vary depending on the package you choose. Lincoln may also vary its pricing from time to time, in relation to special offers. All subscription offers (including trial subscriptions) are subject to acceptance of the licence and terms and conditions. All prices are in Australian dollars and include GST. Prices and details of packages are as follows:
Stock Doctor trial subscription: Stock Doctor can be made available at Lincoln’s discretion to prospective Private investor subscribers on a ‘trial’ basis. A charge may apply. The maximum charge for a trial subscription is $99.95 for 30 days access. Should you decide to cancel a trial subscription, a refund is not payable.
Stock Doctor Private investor subscription: Subscriptions for Stock Doctor can be purchased on a one, two or five-year basis, or longer if agreed. This subscription allows you to access Stock Doctor via a ‘User identification and password’ by signing in at www.lincolnindicators.com.au. As a Stock Doctor subscriber, you cannot provide reports or information to third parties. Your subscription is payable in a single payment or via instalment payments (excluding multi-year licence subscriptions and multi-year licence renewals). Please refer to Table 1 and Table 2 for purchase and renewal costs. Should you decide to cancel your subscription at any time, refunds may be payable at a percentage of the original (or renewal) subscription fee paid as set out in Table 3. Refunds are not payable in the case of 1-year subscriptions.
Stock Doctor Corporate subscription: If you are an Australian Financial Services Licensee (‘licensee’) or authorised representative of a licensee; an accountant with a limited licence or an accountant providing exempt services (within the meaning of the Corporations Act 2001); or are otherwise exempted under the law from holding an Australian Financial Services Licence and wish to use Stock Doctor to provide a service to third parties; you will need to become a Corporate subscriber (you cannot use the Private investor subscription).
Each Corporate subscription entitles one person at a time to use Stock Doctor for the purpose of providing a service to third parties. If you wish to use the Stock Doctor subscription for more than one person at a time, you must purchase additional subscriptions. The annual fee for a new or renewed single Corporate subscription is up to $3000 p.a., per licence. However, where a suite of additional services forms part of a Corporate subscription, pricing can be negotiated with Lincoln for the overall package. Lincoln may vary its pricing for special offers. Multi-year subscriptions are not available for Corporate subscribers. No cancellations or refunds are available for Corporate subscriptions.
Additional general information for Private investor and Corporate subscriptions:
- Your subscription will be due for renewal at the end of your subscription period or such longer time as agreed. Renewals are payable in a single payment or via instalments (one-year initial subscriptions only).
- There is a ’30-day money back guarantee’ on your purchase within the first 30 days after your purchase (excluding 30-day trial subscriptions).
- At the end of a subscription or renewal term, pricing may be adjusted in line with the Consumer Price Index (CPI) or in the case of enhancements to Stock Doctor, by an amount considered by Lincoln to be reasonable.
- Additionally, Lincoln may increase the subscription fees prospectively, if it deems necessary or where the Stock Doctor offering may change.
Educational training: If you undertake educational training provided by Lincoln, Lincoln may charge a fee for that training. Fees will depend on the specific training undertaken and will be advertised at the time the training is offered.
Lincoln Australian Growth Fund and Lincoln Australian Income Fund (wholesale or retail): We do not charge you and do not receive any remuneration or other benefits for providing general advice or factual information about these Funds. If you choose to invest directly in either of these Funds you will pay various fees and charges as set out in the relevant PDS. Lincoln will benefit from some of those fees and charges. Lincoln may also benefit from a soft dollar arrangement with Cove Capital Pty Ltd (Cove Capital) relating to these Funds. For further information see the section ‘What other remuneration or other benefits we may receive in relation to the financial services we provide?’ appearing later in this FSG.
Master trusts, wrap accounts, IDPSs: If you choose to invest in the Funds (mentioned above) through any of these services you will pay various fees and charges as set out in the relevant PDS or other disclosure document. Lincoln will benefit from some of those fees and charges – see section ‘What other remuneration or other benefits we may receive in relation to the financial services we provide?’
Stock doctor subscription referral rewards program: From 30 September 2014, the following Stock Doctor subscription referral rewards program replaced all previous referral programs. There are two elements to the program.
1. Client referral reward program:
Current Stock Doctor clients who refer people who subsequently purchase a one, two or five year Stock Doctor subscription may receive the following benefits, subject to meeting the qualification criteria as set out below. For every person referred that purchases a one, two or five-year subscription to Stock Doctor, the referrer will receive one additional month to their subscription.
2. Commercial introducer rewards program:
Lincoln may have arrangements with third-party commercial introducers. For every person referred that purchases an initial one, two or five year Stock Doctor subscription, Lincoln may pay a finder’s fee from nil up to 50%+ of the purchase price to the commercial introducer. A person or organisation cannot obtain a benefit under both the Client referral reward program and the Commercial introducer rewards program.
+For example: If you were referred to us by a commercial introducer and you purchased a one-year subscription to Stock Doctor (Private investor) priced at $1,695, the commercial introducer may be entitled to a finder’s fee from nil up to $847.50.
Qualification criteria for referrers in the Stock doctor referral rewards program
If: a) you are a client and refer one or more persons to us in any subscription year; or b) you are a third party commercial introducer who refers one or more persons to us in any financial year; you must adhere to the following qualification criteria for each referral, in order to receive a benefit from Lincoln. The qualification criteria are as follows:
1. When you refer a person, you may do no more than:
(a) Inform the person you are referring that Lincoln is able to provide general financial product advice in relation to securities and other specific financial products; and
(b) Provide that person with Lincoln’s contact details;
2. You must inform the person you are referring, at the same time you refer them and by the same means that you refer them:
(a) of the benefits you (or an associate of yours) may receive as a result of referring them to Lincoln;
(b) the value (if known) of the monetary benefits you may receive;
(c) that Lincoln will be collecting their personal information;
(d) that the person can get access to their personal information;
(e) the purpose for which Lincoln collects the information; and
(f) who else Lincoln may disclose the personal information to.
We have introduced these qualification criteria because we are concerned that referrers should not be caught by licensing requirements under the law and so that privacy principles are adhered to. Lincoln reserves the right to alter, amend, suspend or withdraw any of the terms and conditions of the Stock Doctor referral rewards offer at any time, at its absolute discretion.
Other referral payments
Lincoln may make referral payments to third parties that distribute promotional material about Stock Doctor subscriptions. Referral payments may consist of a rebate to the distributor of all or part of the subscription fees arising from sales of Stock Doctor subscriptions to clients of the distributor.
Lincoln may also receive referral payments from a third party for assisting with the distribution of information, products and services provided by the third party. Any information, product or service provided by a third party is issued by the third party in its own right, not on behalf of Lincoln or Lincoln Financial Group Pty Ltd.
What other remuneration or other benefits we may receive in relation to the financial services we provide?
Subscription commission (Private investor subscription)
Commissions are generally not paid for a Private investor subscription. However, in some circumstances a Private investor subscription may be purchased by a licensee, authorised representative of a licensee, accountant or other person eligible for a Corporate subscription where the terms of the sale (including the payment of commission) will be different (see below).
Subscription commission (Corporate subscription)
Commissions are generally not paid for Stock Doctor Corporate subscriptions. However, Lincoln may engage business development representatives (BDR) to promote Stock Doctor Corporate subscriptions. A BDR is a service provider to Lincoln, not an authorised representative or employee of Lincoln or Lincoln Financial Group Pty Ltd. If a BDR makes a sale of a Stock Doctor Corporate subscription, he or she will be paid a commission by Lincoln equal to 25% of the total initial purchase price of the subscription/s (see above for Corporate subscription pricing). If the total initial purchase price is more than $10,000, the commission will be negotiated with the BDR and will be up to a maximum of 25% of the total initial purchase price.
The BDR may negotiate the sale of a Private investor subscription with a prospective subscriber. In this case, the commission paid by Lincoln will be equal to 25% of the amount payable for the first year of the subscription based on the initial purchase price detailed in Table 1-Purchase Costs (Private Investor subscription) of this FSG.
Note: All subscription commissions quoted above are exclusive of GST.
Lincoln’s non-sales staff are remunerated on a fixed salary basis. Tim Lincoln, Managing Director of Lincoln, and other staff representatives of Lincoln may benefit from a share in any profits of Lincoln.
Lincoln full time sales staff may be eligible for an annual bonus of up to $100,000 (in addition to their fixed salary) based on their period of employment during a financial year, if Lincoln meets internal business targets including targets relating to the sale of Stock Doctor subscriptions.
Remuneration that may be received by Associated Parties
Lincoln is party to a soft dollar agreement with Cove Capital Pty Ltd (Cove Capital). Cove Capital provides a brokerage rebate for the sales and purchases of securities services for the Funds. Under this agreement, Lincoln is entitled to allocate rebated brokerage (no more than 35% of total brokerage) towards the payment of direct managed fund expenses related to research and trading. This agreement provides a direct benefit to unit holders of these Funds. Lincoln uses the services of other broking firms but does not have a soft commission agreement with them.
Do any relationships or associations exist that might influence us in providing you with financial services?
Lincoln is a subsidiary of Lincoln Financial Group Pty Ltd, its authorising licensee. Together, Lincoln and Lincoln Financial Group Pty Ltd, form the Lincoln Group of companies. When employees or directors of Lincoln provide financial services, they do so as representatives of Lincoln Financial Group Pty Ltd, on the basis that they are employees and directors of an entity that is a related entity of the holder of an Australian Financial Services Licence.
Lincoln Financial Group Pty Ltd receives an annual service fee from Lincoln in relation Lincoln’s appointment as a corporate authorised representative of Lincoln Financial Group Pty Ltd. Lincoln Financial Group Pty Ltd does not receive any remuneration or benefit for the financial services provided by Lincoln, or Lincoln’s directors or employees.
Where a company in the Lincoln Group of companies, its directors, employees or associates hold an interest in a particular company which is the subject of our general advice, this will be noted in Stock Doctor and in our written reports, as appropriate.
As mentioned above, the Responsible Entity of the Funds has appointed Lincoln as investment manager to invest and manage the portfolio of the Funds. Lincoln will be remunerated for these investment management services based on a percentage of the monies invested in each of the Funds.
Lincoln also has an arrangement with the Wealthtrac Portfolio Service and the operators of any master trust, wrap account or IDPS that makes the Funds available to investors, and will receive remuneration for its investment management and associated administration services. This remuneration will usually be a percentage of the monies invested.
Who can you complain to if you have a complaint about the services that we provide?
If you have any complaints about the service that we provide, please take the following steps:
- Contact Lincoln’s Membership Services Team either by email at firstname.lastname@example.org or by phone on 1300676 333. We will endeavour to resolve any client complaint or query as soon as possible.
- If you prefer, you can lodge your complaint in writing to: Managing Director, Lincoln, Level 2, 379 Collins Street, Melbourne VIC 3000.
- If you do not receive a satisfactory outcome, you have the right to complain to the Financial Ombudsman Service. The contact details for the Financial Ombudsman Service are GPO Box 3, Melbourne, Victoria, 3001 or phone 1300780 808.
Alternatively email the Financial Ombudsman Service at email@example.com or fax (03) 96136399.
The Australian Securities and Investments Commission (ASIC) also has an Info line number 1300300630 which you may use to make a complaint and obtain information about your rights.
Professional Indemnity insurance.
We have Professional Indemnity insurance in place that covers claims in respect of current and former representatives for financial services provided by or on behalf of Lincoln Financial Group Pty Ltd. In our view, this insurance satisfies the requirements for compensation arrangements under the Corporations Act and Regulations 2001.
General investment warnings.
The value of an investment may go down as well as up. Past performance of an investment is not a reliable indicator of future performance. We do not guarantee the return of capital. The information in this Financial Services Guide (FSG) is of a general nature only and does not take into account any individual’s objectives, financial situation or needs. Therefore, before acting on any advice contained in this FSG, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.
All figures quoted in this FSG are as at 14 February 2017 (GST inclusive except for subscription commission which is GST exclusive).
Table 1 – Purchase costs (Private investor subscription)
|Stock Doctor Subscription||Initial purchase price||Monthly instalments|
|1 year instalment||$1,785||$148.75|
*Includes 7.5% discount (Full Price without the discount is $3,290.00) **Includes 10% discount (Full Price without the discount is $8,075.00)
Table 2 – Renewal costs (Private investor subscription)
|Subscription type||Renewal price||Multi-year discount||Early payment discount||Total discount possible||Discounted price^|
|Stock doctor Subscription|
^Excludes instalment payment plans
Note: No instalment options available on multi-year licence subscriptions or multi-year licence renewal subscriptions
Table 3 – Cancellation (Private investor subscription)
Should you decide to cancel your Stock Doctor subscription at any time during the term of your subscription (other than a one year subscription or 30 day trial subscription), refunds may be payable at a percentage of the subscription fee paid as follows:
|1 year||No refund||N/A||N/A||N/A||N/A|
|2 years||40%||No refund||N/A||N/A||N/A|
|5 years||75%||50%||25%||5%||No refund|
Note: No refunds are available for Stock Doctor Corporate Subscriptions.