Disclosure Statement
It is important that you read this information.
It will help you (the client) make an informed decision whether we (initio) will provide advice and access to products that are suitable for your needs and whether to seek, follow or accept the Financial Advice. This Disclosure Statement is required under the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020.
Before purchasing any financial product through us, you should read the Policy Wording applicable to the insurance product you are purchasing which is available online. The Policy Wording contains information about the product to help you make an informed decision about whether or not to buy the product.
Who are we?
| Name of Financial Advice providers: | Initio Limited (FSP523166) |
| Trading Names: | Initio |
| Telephone Number: | 0800 763 929 |
| Address: | 6 Garden Place, Hamilton 3204 |
| Email address: | [email protected] |
| Website: | www.initio.co.nz |
What sort of advisers are we?
We are licensed Financial Advice Providers and an Authorised Body by Financial Market Authority of New Zealand (FMA). Financial Services Legislation Amendment Act 2019 requires initio to hold a current license for Advisers to provide Financial Advice Services to our Clients. To view our license go to the Financial Service Providers Register and search our Financial Service Provider (FSP) number’s FSP523166, or click on the link provided to go directly to our registration. As Licensed Financial Advice Providers, we have standard conditions on our license, these conditions are not specific to initio and do not limit or restrict advice that may be given.
What Financial Advice can we provide to you?
Initio is licensed to deal in and provide Financial Advice on general insurance products.
Who do we act for?
Initio acts for and on behalf of our insurance product provider IAG New Zealand Limited (IAG) (the insurer) that is licensed by the Reserve Bank under section 19 of the Insurance (Prudential Supervisor) Act 2010. To view the Insurer rating, click here. The insurer issues and underwrites the insurance products. Initio is authorised by the Insurer, to enter into, amend, and cancel insurance, and to administer claims on behalf of the Insurer.
How do we get paid for the Financial Advice and Products that we provide to you?
Initio and employees do not receive any commission or other incentives for giving Financial Advice or selling an insurance policy, however, initio does receive commission when you, the client, purchases an insurance policy. The commission is paid to us by the Insurer (product provider).
For house and contents insurance products the commission paid to us is 22.5% of the insurer premium portion of the policy charge
For motor vehicle insurance products the commission paid is 10.0% of the insurer premium portion of the policy charge premium.
The commission we receive is put towards (among other business expenses), paying our staff, administering claims, providing support services, communications costs, building lease, training and operational costs.
Our staff are paid a salary and are not incentivised by the selling of insurance products.
What fees do we charge?
For new house, contents, and car policies, and for the subsequent renewal of those policies, Initio will charge a transaction fee of between $3 and $50 + gst per policy. This fee is included within the policy charge, and is payable by you, when a new or renewal transaction is processed.
For a house policy where more one than one unit is insured on the same policy (ie. it is a multi unit policy) we will charge an additional $25 annual fee per additional unit insured.
The fees we receive is put towards bank and payment provider processing costs, credit card merchant charges, obtaining property and vehicle data from third parties, improving and maintaining the customer self service technology platform, software & technology expenses, hosting, and platform security.
For policy changes and policy cancellations Initio does not charge a transaction fee. If cancelling a policy you will always receive a pro-rata refund based on the unused part of your cover, i.e the remaining term of the policy.
How do we pay other parties?
Where you have been introduced to initio by one of our partners or referrers and you decide to purchase an insurance policy, we may pay the partner or referrer. The payment amount depends on the product type, insurance cost, and the specific arrangement entered into with that partner/referrer.
Referrers can receive a one-off payment for you becoming a client of ours.
Partners and Brokers are paid as a percentage of the premium when you first take out the policy, and for subsequent renewals or changes to your policy.
Any remuneration paid to our partners or referrers is not charged directly to you, the client, and does not affect the amount you pay.
What information do we share with other parties?
Where you have been introduced to Initio by a Referrer (such as homes.co.nz) we will share with that Referrer your name, your Initio client number, and when you transacted with us.
In addition, if the Referrer is the market comparison website Quashed, as per your arrangement with them, we will share additional information including the address of the insured property and provide to them a copy of the Initio policy schedule so that it can be added to your Quashed dashboard.
Where you have been introduced to Initio by a Partner organisation (such as the New Zealand Property Investors Association), of which you are a customer or member, we will share with that Partner the address of the insured property (but not your name), the period of insurance cover, the premium, the type of transaction (eg renewal, or new), the payment interval (eg annually or monthly), and if applicable the particular branch, office or region you are associated with.
Where you have been introduced to Initio by your, or an, Insurance Broker, we will share with that Broker a significant amount of the information we collect about you, the policies put in place, and your claims. The way we do this is through reporting, and by providing your broker with copies of all communications and documents. For example, any email you receive from us will also be copied/provided to the broker. This includes sharing with the broker the information about and correspondence we have with you, relating to any claims you make with us. We may also share information with broker on specific request from the broker, and this may include but is not limited to claims records, claims status, policy insured values, excesses and the like. If you insure with us through a broker, that broker is deemed to be your agent.
How can you depend on the Advice you receive?
Initio and our advisors have not been subject to any reliability events. A reliability event is something that might materially influence you in deciding whether to seek advice from us. As an example, it would include legal proceedings against initio, or if an advisor had been discharged from bankruptcy in the last four years.
How to make a Complaint
If you have a problem, concern or you are dissatisfied with either a product or Financial Advice service that has been provided by us or our advisers and you require action to be taken, please tell us so that we can help and fix the issue. To make a complaint, or to find more details on our complaints process including how to make a complaint please click here.
We will approach all complaints with an open mind, listen, and treat each complainant as an individual and with courtesy and respect. We will promptly acknowledge the complaint and every attempt will be made, to resolve your complaint in a timely manner, with staff escalating as necessary to Senior Management or Complaints Manager.
You will receive a written decision, remedies, and resolution as soon as practicable after we have decided the outcome.
What to do if you are not satisfied after making a Complaint
If you feel your complaint is not resolved to your satisfaction using the Initio complaints process, or you are unsatisfied with the response or resolution, you can contact Insurance & Financial Services Ombudsman Scheme (IFSO). IFSO is a dispute resolution scheme of which we are a member. This service will cost you nothing and is an independent service that will help investigate or resolve the complaint. You can click here to find out how to make a complaint to IFSO.
You can contact IFSO at:
| Postal Address: | P.O. Box 10 845, Wellington 6143 |
| Email: | [email protected] |
| Telephone: | 0800 888 202 |
| Website: | www.ifso.nz |
What are our advisers duties?
Our advisers give Financial Advice to clients on initio’s behalf, when giving specific advice all our advisers must:
- Hold a Level 5 New Zealand Certificate in Financial Services (or equivalent)
- Maintain competence, knowledge, and skills for giving Financial Advice by completing continuing professional development.
- Abide by the Code of Professional Conduct for Financial Services and have Ethical behaviour, good conduct, and provide client Care.
- Listen to the client carefully to discover their needs.
- Recommend products or services that meet the client’s needs and explain why.
- Give clear and concise communication.
- Protect client’s information.
- Give priority to the client’s interests when giving Financial Advice.
Who licenses and regulates us?
The Financial Markets Authority. You can report information about us to the Financial Markets Authority.
If you have a complaint we have a procedure, which can be found here.
This disclosure statement was prepared: March 2021.
It was last updated: November 2022