Disclosure Statement

Nature and Scope

Lighthouse Mortgages provides financial advice on residential lending products. We recommend a wide range of lenders available via our aggregator, Kiwi Adviser Network (KAN). This includes both main banks and non-bank lenders. You can view a full list of these providers on our mortgage product providers page. We do not provide advice on insurance, KiwiSaver, investments, or legal/tax matters unless otherwise stated.

Fees

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

• An upfront commission is not offered by the Provider 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;
• Your loan is expected to be repaid within a short timeframe and thus incur a full commission clawback; 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. In the odd case a fee is charged, we will agree to that fee in advance of the Statement of Advice and the specific fee will be outlined in the Statement of Advice. The fee range would generally be $1,500 – $2,500.

Clawback Recovery Fee

If a loan is repaid within 27 months of settlement (the ‘Clawback Period’), Lighthouse may have some or all of the original upfront commission ‘clawed back’ by the Provider. To ensure that Lighthouse is fairly compensated for the services originally provided to you, we may seek to recover some or all of this cost from you via a clawback recovery fee.

Our clawback recovery fee is calculated by charging our hourly rate for the amount of time we spent on your application (e.g. $200 per hour × 15 hours = $3,000 clawback recovery fee).

Examples of when we may charge you a clawback recovery fee include:

• The property is refinanced within the clawback period and Lighthouse Mortgages was not given the opportunity to arrange the refinance;
• The property is sold and/or the loan repaid within the clawback period.

We will not charge you a clawback recovery fee if we were given the opportunity to secure new lending or refinancing for you but were unable to at least match a finance approval that you obtained elsewhere, or if we charged you an upfront Service Fee for arranging the original loan.

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:

• 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 mortgages, Lighthouse Mortgages Limited and the financial adviser receive commissions from the banks with whom we arrange mortgages. If you decide to take out the mortgage, the bank will pay a commission to Lighthouse Mortgages Limited and your financial adviser. The amount of the commission is based on the amount of the mortgage.

Lighthouse Mortgages 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 Mortgages. 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 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 Mortgages 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 Mortgages, 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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