Disclosure Statement

Nature and Scope

Lighthouse Mortgages provides financial advice on vehicle loans, personal loans and debt consolidation loans, for both new lending and refinancing. We recommend lending from a range of bank and non-bank lenders. A full list of these providers is available on request. We do not provide advice on residential mortgages, KiwiSaver, investments, or legal/tax matters unless otherwise stated.

The lenders we work with include:

• Heartland Bank
• Oxford Finance
• Bizcap

We also provide advice on Mechanical Breakdown Insurance (MBI), Guaranteed Asset Protection (GAP) and Consumer Credit Insurance (CCI). We provide advice on these products from Provident Insurance and Autosure Insurance.

Fees

In most cases we are paid a commission by the lender and a fee for our advice. Our fee is usually a fixed documentation fee of up to $1,095, which is added to your loan.

In certain situations Lighthouse may also charge you a service fee for services rendered, including where:

• A commission is not offered by the lender your loan will be sourced through;
• The services we provide you are advisory in nature or involve a significant amount of work that will not result in a commissionable transaction; or
• The lending approval expires and you provide no indication that you want to proceed.

Any proposed service fee will be discussed with you as soon as it becomes clear that it will be required and will only be charged following your formal acceptance of that fee. Any fee that applies to your loan will be agreed with you in advance and outlined in your Statement of Advice.

Clawback Recovery Fee

There is no clawback recovery fee charged to the client. Clawback periods differ by lender and apply if a loan is repaid prior to the contracted maturity date. Please refer to the loan documentation from your lender to review this.

Complaints Handling and Dispute Resolution

If you have a problem, concern, or complaint about any part of our service, please let us know so we can try to fix the problem. You can make a complaint by contacting your adviser directly, or by contacting us:

• Phone: 09 884 0972
• Email: info@lighthousefinancial.co.nz
• In writing: 10/23 Custom Street East, Auckland Central, Auckland 1010

When we receive a complaint, we will consider it following our internal complaints process:

• We will consider your complaint and let you know how we intend to resolve it. We may need to contact you to get further information.
• We aim to resolve complaints within 10 working days of receiving them. If we can’t, we will contact you within that time to let you know we need more time.
• We will contact you by phone or email to let you know whether we can resolve your complaint and how we propose to do so.
• If we can’t resolve your complaint, or you aren’t satisfied with the way we propose to do so, we will issue you with a Letter of Deadlock and you can proceed to contact Financial Services Complaints Ltd.

Financial Services Complaints Ltd (FSCL) provides a free, independent dispute resolution service that may help investigate or resolve your complaint if we haven’t been able to resolve it to your satisfaction. This service will cost you nothing.

You can contact FSCL in the following ways:

Email: complaints@fscl.org.nz
Phone: 0800 347 257
Online: www.fscl.org.nz/complaints/complaint-form
In writing: FSCL Scheme, PO Box 5967, Wellington.

Conflicts of Interest and Incentives

For the loans we arrange, Lighthouse Mortgages Limited and the financial adviser receive commissions from the lenders with whom we arrange finance. If you decide to take out the loan, the lender will pay a commission to Lighthouse Mortgages Limited and your financial adviser. The amount of the commission is generally based on the amount you borrow. We also receive a commission from the insurer if you take out an insurance product we have arranged.

Our advisers are not paid incentives based on volume or value targets for any particular lender or product.

Lighthouse is part of a New Zealand financial services group. Remuneration can flow to the business from product providers via the dealer group, based on the production of the group as a whole and of Lighthouse. The business can also receive other services or benefits (related to being a FAP) from the dealer group.

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.

Where relevant, we will share your information with our other partner businesses (Lighthouse Accounting, Lighthouse Mortgages and Lighthouse Wealth) for the purpose of providing any current or future services you may request.

We take any perceived or real conflicts of interest very seriously and have a dedicated policy for dealing with such issues, whereby we avoid, disclose and/or manage any conflicts so that our clients’ interests are placed first and foremost. All our financial advisers undergo annual training about how to manage conflicts of interest. We maintain registers of conflicts of interest and of the gifts and incentives we receive. Lighthouse monitors these registers and provides additional training where necessary, and performs an annual review of our compliance programme, including an independent compliance audit by a reputable compliance adviser.

Conduct

Lighthouse, and anyone who gives financial advice on our behalf, have duties under the Financial Markets Conduct Act 2013 relating to the way that we give advice.

We are required to:

• give priority to your interests by taking all reasonable steps to make sure our advice isn’t materially influenced by our own interests;
• exercise care, diligence, and skill in providing you with advice;
• meet standards of competence, knowledge and skill set by the Code of Professional Conduct for Financial Advice Services (these are designed to make sure that we have the expertise needed to provide you with advice);
• meet standards of ethical behaviour, conduct and client care set by the Code of Professional Conduct for Financial Advice Services (these are designed to make sure we treat you as we should, and give you suitable advice).

This is only a summary of the duties that we have. More information is available by contacting us, or by visiting the Financial Markets Authority website at https://www.fma.govt.nz.

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