Selecting and hiring a Financial Adviser for most people is a daunting task. At GEM Capital we recognise this and use a process to make this task as upfront, relaxed and thorough as possible.
Some important aspects relating to how we operate include:
- All correspondence is forwarded to our client's address. This is an important security measure.
- All investments are owned in our client's name.
- Our purpose is to provide quality advice and then for our clients to make the final decisions.
- When people telephone our offices, they get to speak with real people who know them. One of the benefits of being a boutique firm is that our services are delivered in a very personal manner where our clients have a relationship with not only their adviser, but also with the administration staff that support the advice.
- When dealing in listed securities we use the services of Bell Potter Online who are one of Australia’s leading stockbroking firms. We transact in real time and have immediate access to the markets pricing and other information at our finger tips. We recommend investors utilise the CHESS system to simplify ownership of listed securities. Further information about CHESS can be found on the Australian Securities Exchange website asx.com.au. This relationship allows us access to high quality investment research as well as very efficient and timely execution of transactions
A brief outline of the initial process we adopt is described here.
1. Initial Consultation
We do not charge for an initial consultation as this is an opportunity for potential clients to determine if they wish to pursue a relationship with us, and for the adviser to judge whether they can effectively work with them.
During this consultation we will gain a clear understanding of the current position as well as objectives together with attitudes towards issues including investment risk, taxation and Centrelink if relevant.
We can usually outline the types of strategies that would be appropriate to the situation during this consultation, to allow the opportunity to decide whether or not to proceed further.
2. Construction of a Financial Plan
The Financial Plan is a document that outlines in detail the courses of action that we are recommending to take. This document includes taxation outcomes, specific investment recommendations as well explanation of the strategies we are suggesting. There are also the results from the computer modelling of the recommended strategy, and this highlights the possible journey of an investors‘ capital over the long term. The benefit of computer modelling is that it allows investors to spend a level of money without guilt or fear of running out of capital.
The cost of preparation of a Financial Plan is normally $1,500 plus GST. This covers not only the cost of preparation, but also the meeting to present the plan and the meeting to review questions from the plan.
3. 2nd Meeting to Present the Plan
The purpose of the 2nd meeting is to introduce the contents of the financial plan, and confirm the key parts of the advice that we are providing.
4. Opportunity in private for clients to thoroughly read the Financial Plan
At the 2nd meeting, a copy of the Financial Plan is provided so that it can be taken away and read at leisure.
It is normal to have several questions after reading the financial plan and these can then be discussed at another meeting usually within a week or so.
5. 3rd Meeting to discuss questions that arise after reading the Financial Plan
Most importantly at this meeting, potential investors are not asked to commit to anything. This meeting is simply to answer questions arising from fully reading the financial plan.
6. 4th Meeting to complete initial paperwork
Completion of financial paperwork can be a daunting task. We simplify this process by always completing paperwork relating to clients investments on their behalf so that all that is required of them is to check it for accuracy and then sign where indicated.
At this point we also introduce our clients to our administration staff who are all long term members of our team. This results in our clients knowing the team of people they are dealing with, and as importantly our staff know who our clients are. Feedback suggests that people like this personal approach to financial advice.
7. 3 Months after joining - Meeting for initial review
The purpose of this meeting is to discuss the paperwork flow that would have started at this stage and to clarify what is important information that must be retained and what can be discarded.
It is often a very useful opportunity to review other questions that are likely to arise at the commencement of our relationship.
8. Month 6 and 9 – Quarterly Review
The Quarterly Review process provides investors with up to date views on the investments they currently hold, together with a summary of the global economic environment and how this information impacts investment strategy.
Investment Recommendations made during this process will be in the form of buy, sell or continue to hold investments. It must be made clear that our role is that of adviser, and our clients opt to proceed with the advice or otherwise. We act only with authority from our clients. We advise and you decide.
Of course, the world does not necessarily revolve around quarterly intervals and there are many occasions where action is necessary between quarterly reviews. As circumstances arise that require action such as rights issues, takeover offers or other material changes to investments we will provide advice in writing outlining the recommended course of action supported by our reasoning.
9. Annual Review
The Annual Review is a comprehensive review of all aspects of our clients financial affairs including not only their investments, but also to ensure that their current strategies remain appropriate with respect to taxation, estate planning and Centrelink if appropriate.