Conflicts of Interest and Incentives

Solutions receives commissions from the relevant insurance company if you take out insurance following our advice. The commissions are between 15% (group insurances), 30% and 230% (personal and business insurances) of the first year’s premiums of your policy, depending on the type of product you take out. For ongoing client servicing, insurance companies typically pay a renewal commission between 5-30% of the premium for each year the policy remains in force.

The actual commission amount depends on which insurance company and which insurance policy you choose.

The company uses this income to run a compliant business, pay for its business expenses (rent, licensing costs and professional development fees, Insurances, admin support, salary’s, vehicle costs etc) and I am paid a monthly salary plus bonuses from time to time depending on how the business performs.

For KiwiSaver, Generate Wealth pays between $40-$180 for the initial advice I provide to clients and then 0.25% per annum on the client’s KiwiSaver balance for ongoing client service. Booster does not pay for the initial advice I provide to clients, and instead pays 0.50% per annum on the client’s KiwiSaver balance for ongoing client service.

For referral’s made to a mortgage provider, investment planner, or general insurance adviser, Solutions may receive a ‘referral fee’ as an upfront payment and/or ongoing payment which is typically a percentage of the commission they receive e.g., 5%-50%.

To ensure that I prioritise your interests above my own, I follow an advice process that ensures my recommendations are made on the basis of your individual goals and circumstances. I complete annual training about how to manage conflicts of interest. We undertake a compliance audit, and a review of our compliance programme is undertaken annually by a reputable compliance adviser.