CMC Markets Pty Ltd
Financial Services Guide
1 CMC Markets Pty Ltd
• • • • • the financial services we offer, and the products to which these services relate; the capacity in which we act when we provide financial services; how we and other relevant persons are paid for those services; details of any potential conflicts of interest; and the details of our internal and external complaints handling procedures and how you can access them.
CMC Markets Pty Limited (CMC) (ACN 100 058 106 / AFSL 279437) is a member of the CMC Markets group of companies. The CMC Markets group has offices in Hong Kong, Beijing, Sydney, London, Frankfurt, Toronto and New York. CMC is a wholly owned subsidiary of CMC Markets Asia Pacific Pty Ltd (ACN 100 058 213 / AFSL No. 238054) (CMC Markets). Our details are set out below. “We”, “us”, “our” or CMC in this Financial Services Guide (FSG) refers to CMC Markets Pty Limited.
Registered & Business Address CMC Markets Pty Ltd Level 44, Governor Phillip Tower 1 Farrer Place Sydney NSW 2000, Australia ACN 100 058 106 AFS Licence No: 279437 Phone: 1 300 552 414 (in Australia only) Direct: + 61 2 8221 2100 Facsimile: + 61 2 9247 0199 Email: info@cmcmarkets.com.au Website: www.cmcmarkets.com.au Postal Address CMC Markets Pty Ltd P.O. Box R1879 Royal Exchange, N.S.W 1225 Australia
The key information is set out in the sections below. If you need more information or clarification, please telephone us on 1 300 552 414 (in Australia only) or + 61 2 8221 2100. This FSG is designed to assist you in determining whether to use any of the financial services described in this document. The financial services we provide (as set out in section 4 of this FSG) relate to financial products called Contracts for Difference (CFDs), which are issued by our parent entity, CMC Markets. Please refer to section 3 and section 4.9 for further information about the relationship between CMC and CMC Markets. 2.1 You may receive other documents
Should we provide you with personal advice (advice that takes into account your objectives, financial situation and needs) you are entitled to receive a Statement of Advice (SOA) when we first provide you with that advice. The SOA will contain the advice, the basis on which it is given and information about fees, commissions and associations which may have influenced the provision of the advice. In the event we make a recommendation to acquire a particular financial product (in our case, CFDs), we must also provide you with the Product Disclosure Statement (PDS) issued by CMC Markets which relates to that financial product. The PDS will set out information to help you make an informed decision about CFDs, including information about the features, risks, costs and benefits of trading in CFDs as well as other information that you may need to know before you decide to acquire CFDs.
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What is the purpose of this FSG?
This FSG is an important document which provides you with information about CMC to help you decide whether to use our financial services. The FSG is intended to inform you of certain basic matters relating to our relationship, prior to us providing you with a financial service. It explains: • • who we are; how we can be contacted;
CMC Markets Pty Ltd – Financial Services Guide – 27th June 2008
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2.2
Who is responsible for the advice and other financial services given to me?
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derivatives; and
We are responsible for the advice given to you and any other financial services provided by our representatives in respect of CFDs. 2.3 Who is my CMC representative?
(b) applying for, acquiring or disposing of a financial product on behalf of another person in respect of: • • • • derivatives; foreign exchange contracts; debentures, stocks, or bonds issued or proposed to be issued by a government; and securities.
Your CMC is an employee and authorised representative of CMC which is responsible for providing, and training you in the investment and trading in CFDs. All our representatives are experienced and qualified to provide the relevant training in the investment and trading of CFDs.
We are authorised to provide these financial services to retail and wholesale clients. 4.1 Authorised Representatives
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Who is CMC?
CMC may also authorise body corporates or individuals (Authorised Representatives) to provide the above financial services to you on its behalf. CMC holds an Australian Financial Services License (AFSL 297437) and is responsible for the financial services provided to you by its Authorised Representatives. 4.2 Education Services
We are a wholly owned subsidiary of CMC Markets, which also holds an Australian financial services licence (AFSL No. 23054). Whilst there may be other CFD and derivative products and services that are suitable for you, we only advise on and arrange for clients to deal in CFDs issued by CMC Markets. 3.1 Conflicts of Interest
CMC has a conflicts management policy which seeks to: • • • 3.2 identify conflicts of interest (actual or potential); control and avoid conflicts of interest; and disclose conflicts of interest to clients. Who do we act for when we provide our financial services to you?
Educational services provided by CMC are in the form of a CFD trading and investment course delivered in two formats: (i) (ii) face-to-face seminars delivered by CMC or by correspondence via CD ROM.
In addition, the individual subjects that collectively comprise the full course, are available separately on CD ROM. Our representatives will be used to deliver a comprehensive curriculum that explores, among other things: • • • • • • 4.3 Detox: Psychology of Trading Trading Australian Share CFDs Short Term Trading Strategies Technical Analysis Trading Foreign Exchange Trading International Markets Financial product advice
Subject to our financial services being restricted to CFD products issued by CMC Markets, as outlined at section 3 above, CMC acts for you when we provide financial services to you.
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Our financial services
We are authorised under our Australian Financial Services Licence to provide the following services: 1. financial product advice (both general and personal) in: • derivatives; • foreign exchange contracts; • debentures, stocks or bonds issued or proposed to be issued by a government; and • securities; 2. dealing in a financial product by: (a) issuing, applying for, acquiring or disposing of a financial product in respect of
We may give you general advice about a financial product. This advice is general advice because it will not take into account your personal financial situation, objectives or needs. This type of advice is discussed in more detail in Section 4.4. We may also provide you with personal advice about financial products, because from time to time, we may take into account your personal financial situation, objective and needs. We discuss this in more detail in section 4.5.
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CMC Markets Pty Ltd – Financial Services Guide – 27th June 2008
4.4
What is general advice?
not necessarily the same as) the value of the underlying asset or index, to which the CFD relates. 4.8 Risks
General advice may differ from what you might commonly understand or expect. As an example, general financial product advice may be given where the benefits of investing in CFDs are explained. However, this advice is general in nature because it does not take into account your objectives, financial situation and needs. Our Education Services set out at section 4.3 are general advice General advice in relation to CFDs can also include CMC opinions about, or outlook for, CFDs issued by CMC Markets. Any information you have requested about, or have discussed with a CMC employee, should only be regarded as general advice, as he or she will not have taken into account your particular financial circumstances, objectives or needs. It should be regarded as general information for your consideration prior to making any decision to deal in CFDs. If you require personal advice specific to your particular financial situation, objectives or needs, you will need to speak to your financial advisor at CMC 4.5 What is personal advice?
You should not deal in CFDs unless you understand and are comfortable with the risks of dealing in CFDs. You should refer to the relevant CMC Markets PDS for further details of risks associated with CFDs.
4.9
Arranging for you to deal in CFDs with CMC Markets?
We may arrange for you to deal in CFDs with CMC Markets, which is an issuer of CFDs. In addition to making a market in the CFDs, CMC Markets is responsible for preparing and providing you with the relevant FSG and PDS. If you choose to deal in CFDs with CMC Markets or another provider, you will be, or should ask to be, provided with a copy of the relevant FSG and PDS before you commence trading. CMC Markets will provide you with the relevant PDS unless we make a recommendation to acquire a CFD issued by CMC Markets, in which case we will provide you with the relevant PDS issued by CMC Markets (see section 2.1 of this FSG for more information). CMC does not issue the CFDs.
Personal advice is advice that takes into account any of your personal financial circumstances, objectives and needs. CMC will, from time to time, provide personal advice in relation to CFDs issued by CMC Markets. As set out above, where we give you personal advice we will provide you with an SOA which sets out the advice, the basis on which it is given and information about fees, commissions and other benefits which may influence that advice. The SOA will be recorded in an electronic database and delivered to you personally upon provision of that advice, or, if that is not possible, as soon as practicable after the advice is given. 4.6 The financial products
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Our Privacy Policy
All information that CMC collects about you will be treated in accordance with our privacy policy which can be found online at www.cmcmarkets.com.au/education. CMC's Privacy Policy is in line with the National Privacy Principles. CMC ensures that all personal and private information collected will be kept confidential and secure and will not be disclosed to any third party (outside the CMC Markets group of companies) without permission.
CMC Markets offers the following financial products (CMC Products) to its customers in Australia: • CMC ACCESS CFDs (refer to the CMC Markets' FSG and PDS for CMC ACCESS CFDs); and • MarketMaker CFDs (refer to the CMC Markets' FSG and PDS for MarketMaker CFDs). 4.7 What is a CFD?
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How will I pay for the Financial Services?
In general terms, a CFD is an agreement between you and CMC Markets (not us) which allows you to make a profit or loss from fluctuations in the price of the CFD. A CFD is a derivative, which means its value is derived from (but
CMC and its employees will not be paid any fees or commissions for introducing clients to CMC Markets. However our Authorised Representatives may receive payments from CMC Markets (through us) as set out in the relevant Financial Services Guide issued by that Authorised Representative and summarised at section 6.2 below. Our fees and charges are set out at section 6.1 below. CMC Markets' fees and charges are summarised at section 6.3
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CMC Markets Pty Ltd – Financial Services Guide – 27th June 2008
• 6.1 How are we paid? • CMC will charge the following fees (inclusive of GST) for the provision of Education Services to you: • • • Getting Started in CFDs (1 Day course) - $297; ‘Pro-CFD’ Trader (2 Days course) - $1,497; and CD ROM-based learning: o o $297 per CD $1,497 for all 6 CD’s, •
interest on debit balances on your account at the rate determined by CMC from time to time; when dealing in foreign exchange contracts you may pay interest at CMC rollover rate and be charged interest on currency margin requirements; and administration charges set out below.
CMC Markets will charge you for the following administrative functions: Administration function Withdrawals from your account Fee AUD1.50 AUD1.50 0.649% of the transaction USD11.00 USD30.00 HKD5.00 HKD40.00 AUD30.00 or HKD120.00 1.8% of the transaction 3% of the transaction AUD40.00 Upon application
these fees are inclusive of GST. 6.2 Payments to Representatives. our Authorised
B-Pay Receipts B-Pay Credit Card
In the event that one of our Authorised Representative receives commission from CMC Markets, this amount is paid from CMC Markets to us, and then passed onto that Authorised Representative. We do not retain any of these amounts. 6.3 Summary of fees, costs and charges associated with dealing in CFDs with CMC Markets
U.S.A. USD Receipts U.S.A USD Telegraphic Transfers HKD Receipts HKD Telegraphic Transfers Foreign Currency Telegraphic Transfers Credit Card Receipts (AUD) Credit Card Receipts (HKD, USD, NZD) Duplicate Statements by post Transcripts of Telephone Conversations Upon application Returned Cheque Fee Audit Certificates Debt Collection
This FSG only contains a general summary of the fees, costs and charges associated with dealing in CFDs with CMC Markets. You should refer to the relevant FSG and PDS issued by CMC Markets for further details. All fees, costs and charges and other amounts payable are subject to change from time to time. The usual fees, costs and charges that you will pay to CMC Markets when dealing in CFDs are summarised below. The actual fees, costs and charges will differ between CMC ACCESS CFDs and CMC MarketMaker CFDs, please refer to the relevant FSG and PDS for further detail. The usual fees, costs and charges are: • • • • commission on executed trades in individual Share CFDs; spread income on transactions; financing charges on long positions in individual share, index and sector CFDs; adjustments debited to your account for dividends declared (and in some cases the attached franking credits) in respect of securities related to share, index and sector CFDs in which you have a short position; premiums for guaranteed stop-loss orders; rollover charges on forex spot CFDs and long bullion CFDs
Upon application Upon application First Call AUD25.00 Second Call AUD50.00 Referral to Agency AUD150.00
Administration charges are subject to change from time to time and are deducted from your account on or shortly following occurrence of the relevant event. Being a market maker, CMC Markets will also benefit from the difference between the bid and offered prices for its CFDs.
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All fees and charges that you pay in connection with a CMC Markets' CFDs will be shown on your daily statement provided to you by CMC Markets. 6.4 Can I ask for further information about fees and charges?
If CMC does not resolve your complaint to your satisfaction, you may lodge a complaint with the Financial Industry Complaints Service (FICS). FICS is an external dispute resolution scheme established to assist you to resolve your complaint when you have been unable to do so with us. Before FICS deals with your complaint you must have first lodged a formal complaint with us and given us time to resolve the complaint internally. This generally takes 45 days, although we may extend this time in complex cases. To lodge a complaint with FICS you should send the necessary documents and information to:
You may request particulars of the remuneration (including commission) or other benefits described in this FSG. That request must, however, be made within a reasonable time after you are given this FSG and before any financial service identified in this FSG is provided to you.
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Remuneration of staff
CMC employees and directors are remunerated by way of salary and other employee benefits. A discretionary cash bonus may be paid to employees and directors as part of their remuneration, based on their performance, the performance of their business unit and/or the performance of CMC as a whole. When CMC employees provide services to you on CMC behalf, they do not receive any payments, commissions or other benefits which are directly related to the value or volume of services they provide to you.
Financial Industry Complaints Service PO Box 579 Collins Street West Melbourne, 8007 Australia www.fics.asn.au To the maximum extent permitted by law, any dispute or difference whatsoever raised by you in connection with CMC’s services must be dealt with in Australia as described above. 8.2 What is the effect of a determination by FICS?
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8.1
If you have any complaints
Who can I complain to if I have a complaint about CMC's financial service?
As a member of FICS, CMC is bound to accept the determination of FICS
8.3
Am I able to obtain a copy of any recordings of my telephone conversations with CMC?
CMC is committed to providing a high standard of service to its clients. If you have a query about the quality or level of service, or if we have failed to meet your expectations, we would like to hear from you. Firstly, contact CMC and speak to an employee. Explain carefully the nature of your problem and tell us how you would like us to fix the problem. Most often, problems can be quickly rectified and the sooner you refer an issue to us the better for everyone. If your complaint cannot be resolved at the first point of contact, you should write to: Customer Care Manager CMC Markets Pty Ltd Governor Phillip Tower Level 44, 1 Farrer Place Sydney NSW 2000, Australia At this stage it will help CMC if you complete a customer feedback form which is available at www.cmcmarkets.com.au.
CMC may record telephone conversations between you and its employees. Such recordings, or transcripts from such recordings, may be used as evidence in any dispute or anticipated dispute between CMC and you. Recordings or transcripts made by CMC of your telephone conversations may be destroyed under CMC normal practice, which is to destroy them usually, but not necessarily, three calendar months after the date of the conversation. 9 Professional Indemnity Insurance
CMC Markets has Professional Indemnity insurance in place as required by law to support its obligations in relation to the compensation of clients should we breach the financial service provisions of the Corporations Act. This includes conduct of current and former representatives and employees.
CMC Markets Pty Ltd – Financial Services Guide – 27th June 2008
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