Disclosure Statement

Financial Advice Provider Disclosure Statement

Licensing information

The New Zealand Automobile Association Incorporated (NZAA) (FSP41189) holds a Financial Advice Provider (FAP) licence issued by the Financial Markets Authority, meaning we are licensed to provide a financial advice service. NZAA can provide financial advice to you direct, or through its nominated representatives.

Nature and scope of the advice

NZAA and our nominated representatives (we) only provide financial advice in relation to home, contents, and vehicle insurance underwritten by AA Insurance Limited. We are unable to provide financial advice in relation to any other insurer’s products or offer comparisons with the insurance cover anyone else offers or provides.

The following types of insurance are also available from us. However, we only provide information about these types of product and assist with processing applications for them and administrative matters, and do not provide financial advice in relation to them:

  • Life insurance underwritten by Asteron Life Limited
  • Health insurance underwritten by nib New Zealand Limited
  • Travel and Pet insurance underwritten by Hollard Insurance Company Pty Ltd

This means that we will not make any recommendations or give any opinions in relation to buying or cancelling or retaining any of these types of insurance. Instead, we can provide you with information about their features to help you make your own mind up about what cover you think is right for you.

Reliability History

NZAA and any of its nominated representatives have not been subject to a reliability event. A reliability event is something that might materially influence you in deciding whether to seek financial advice from NZAA and its nominated representatives. As an example, it would include a successful regulatory action against NZAA or its nominated representatives relating to the financial services we provide.

Fees, commissions and other conflicts of interest

We do not charge fees, expenses or any other amount for any financial advice we provide. For our financial advice products, NZAA does not accept any commission from the insurers we deal with, although we do benefit from a share of any profits our related company AA Insurance makes each year.

To ensure our nominated representatives prioritise our clients’ interests above their own, we follow an advice process that ensures any financial advice we provide is suitable for the circumstances in which it is given, recognising the very limited nature and scope of the advice we provide.

All our nominated representatives undergo annual training about how to manage conflicts of interest. NZAA reviews its compliance programme annually to ensure our high standards of client service are being followed.

As employees of the NZAA, our nominated representatives receive a salary and are eligible to receive a bonus payment if a certain level of overall performance is achieved by the NZAA.

Bonus payments are measured on achievement of a range of factors including; the quality of member interactions, compliance with regulatory requirements, the accuracy of processing member requests, the satisfaction of members with the way we sell products, and the number of products we sell to members. The bonus payment that can be achieved if all the target measures are fully met range between 5 -15% of the employee’s overall salary package.

Duties information

We 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 when providing you with advice
  • meet applicable 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).

In addition, as a FAP the NZAA is required to:

  • ensure our nominated representatives comply with all the duties listed above
  • have appropriate processes and controls in place to limit and regulate financial advice provided by our nominated representatives.

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/compliance/financial-advice/.

Complaints handling and dispute resolution

If you are not satisfied with our financial advice service you can make a complaint by:

We will follow our internal complaint process:

  • Where possible, your complaint will be resolved there and then. If further investigation is required, we will advise you of an expected resolution time. We will also give you sufficient information to ensure you can enquire about the progress of your complaint.
  • If we are unable to resolve your complaint there and then, your complaint will be formally acknowledged within 2 business days. We may need to contact you to further understand your complaint or obtain additional details. NZAA will keep you informed of progress and the expected resolution timeframe, or if the problem is of a very complex nature and will exceed the initially anticipated resolution timeframe.

If we cannot resolve your complaint, or you are not satisfied with the way we propose to do so, you can contact the Insurance & Financial Services Ombudsman Scheme (IFSO). IFSO provides a free, independent dispute resolution service, and that service may help investigate or resolve your complaint. You can contact IFSO via IFSO website www.ifso.nz, via email [email protected] or by calling 0800 888 202.

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