H O W  &  W H E N  W I L L  I  P A Y  F O R  T H E  S E R V I C E ?

Donegal Financial Planning discloses all fees in a written statement of advice.

The fees we charge depend on the services that we provide to you. The three types of services that we provide to you are:

1.     Strategy Advice

2.     Investment Advice

3.     Insurance Advice

1. S T R A T E G Y   A D V I C E

Prior to the commencement of strategy advice, you will be given an estimate as to how many hours it will take to research and prepare a strategy paper or Statement of Advice.

The fee for the Strategic Advice service is time costed at hourly rates based on the staff member undertaking the task.

Our terms of business are:

Staff Member   Hourly Rate (including GST)

Director / Senior Adviser  $330

Associate Adviser   $176

Administration   $99

This hourly rate covers the investigation of possible financial strategies. The fee incorporates the cost of our investment in the latest computer technology, our office support team and ongoing professional development required to keep us at the leading edge of technical and legislative know-how.

The initial strategy advice preparation fee is a dollar amount and will be invoiced to you at the time of or after submission of the strategy paper to you. This fee is payable 21 days after receipt of the invoice.

2. I N V E S T M E N T A D V I C E

D O N E G A L   I N V E S T M E N T   S E R V I C E S

We believe that in order to work most effectively with you to achieve your objectives means that your interests and our interests must be aligned.

Investment Advice is charged under the following fees for service:

·     Placement fee as a percentage of assets invested or hourly fee;

·     Ongoing Annual Fee as percentage of assets invested

P L A C E M E N T   F E E

The placement fee covers the cost of technical and investment research and due diligence, compliance costs, professional indemnity insurance, and general overhead costs to support our successful back-up services. Where funds are invested on behalf of clients, the initial placement fee can range from 1.1% to 2.2% (including GST).

O N G O I N G   F E E

The annual ongoing fee for review and reporting of your investment portfolio is up to 1.1% per annum of funds under the advice of Donegal Financial Planning based on the fee schedule.

For the all inclusive delivery of ongoing services, the following annual fees apply based on the sliding scale for each portfolio of investments under advice:

All fees are agreed upon prior to the implementation advice and are fully disclosed in a written Statement of Advice. They may be payable monthly, quarterly, half-yearly or yearly.

Ongoing fees invoiced by Donegal may be tax deductible. You will need to seek advice from your accountant.

3. I N S U R A NC E  A D V I C E

Donegal Financial Planning Pty Ltd receives payment from the Life Company both initially (upon the acceptance and completion of new policies) and on an ongoing basis for life insurance products (death, total and permanent disablement, trauma, income protection and business expenses). All initial and ongoing payments are calculated as a percentage of premiums and are included in the premiums payable to the Life Insurance Company. It is not charged separately as an additional amount to you.

Donegal receives an accelerated upfront payment in the form of a payment from the insurer. This remunerates for underwriting, report preparation and meetings. It also pays business operating costs such as salaries, rent, printing and stationery, training and compliance, professional indemnity insurance and other administration costs.

Commissions payable vary between the different Life Companies and life insurance products. There are four different ways in which Donegal can choose to be remunerated. These are illustrated in the below table which also shows the maximum commission rates including GST payable:

Should a report be prepared and the insurance products not be taken, then a fee of $660 (including GST) is payable to cover the costs of the report production and research.

R I G H T T O C H A N G E F E E S

Donegal has the right to change fees for new clients without notice. Existing clients will be given notice of any increase exceeding the rate of inflation.