Client Fee Consent and Netwealth

Advice fee process from 1 July ‘21 Fee consent & renewal Adviser and Licensee use only - This document is intended for adviser/licensee use only. Unauthorised use, modification, disclosure or distribution to any other party without Netwealth’s express prior written consent is prohibited.

Disclaimer

This information has been prepared by Netwealth. Whilst reasonable care has been taken in the preparation of this document using sources believed to be reliable and accurate, to the maximum extent permitted by law, Netwealth and its related parties, employees and directors and not responsible for, and will not accept liability in connection with any loss or damage suffered by any person arising from reliance on this information.

Netwealth Investments Limited (Netwealth) (ABN 85 090 569 109, AFS Licence No. 230975) is a provider of superannuation and investment products and services, and information contained within this document about Netwealth’s services is of a general nature which does not take into account your individual objectives, financial situation or needs. Any person considering a financial product or service from Netwealth should obtain the relevant disclosure document at www.netwealth.com.au and consider consulting a financial adviser before making a decision before deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.

Unless specified, all information in this document is as at 10/06/2021.

2

| netwealth

Managing Advice Fees - Adviser/licensee use only

Today’s speaker

Jasmine Tocock Training & Relationship Manager Netwealth Investments

3

| netwealth

Managing Advice Fees - Adviser/licensee use only

Housekeeping Enter your questions in the chat

4

This webinar is being recorded

Posting to social?

Slides will be sent to you after the webinar via email

Use #netwealthinvest or tweet @netwealthInvest

| netwealth

Managing Advice Fees - Adviser/licensee use only

We will get to them at the end of the webinar

Agenda

5

| netwealth

Introduction

Consent for non-ongoing fees

Additional information & other fees

Tracking fee arrangements online

Managing Advice Fees - Adviser/licensee use only

Consent for ongoing fees

How can an adviser provide consent?

6

| netwealth

Managing Advice Fees - Adviser/licensee use only

Introduction Streamlining the payment of advice fees

In development • Create a fixed term advice fee option on the platform (live Jan 2021) • Create an online landing page and FAQ (live 28 May 2021) • Create a consent process both online/forms (due 5 July 2021) • Industry standard processes, integration with Xplan Blockchain consent solution & Xeppo electronic consents for renewals

7

| netwealth

Managing Advice Fees - Adviser/licensee use only

The Netwealth solution

We have updated all of our existing user-friendly advice fee processes, to include obtaining adviser consent at the same time the adviser is processing a fee arrangement.

This includes: 1. The application process 2. The adviser fee proposal 3. Updated fee instruction forms

8

| netwealth

Managing Advice Fees - Adviser/licensee use only

When is consent required?

Fee type

Super/Pension accounts

Wealth accounts

Wealth accounts wholesale clients (certificate supplied)

Yes*

No

No

Yes

Yes

No

Yes

n/a

n/a

Fixed-term advice fee Non-ongoing

Once only / ad hoc advice fee Upfront advice fee Ongoing advice fee

Ongoing

Advice fee on ASX share trades Ongoing advice fee – insurance (Super only)

* via Netwealth online application, online proposal or consent form only

Notes: - All fee types require a fee instruction, only some require consent.

9

| netwealth

Managing Advice Fees - Adviser/licensee use only

How to provide consent Fee type

Non-ongoing fees - Consent required on Netwealth forms*

Ongoing fees

Super/Pension

Wealth account excl. Joint acc (one-to-sign)

Wealth account excl. Joint acc (all to sign)

Joint account^

Online or form*

n/a

n/a

n/a

Online or form

Online or form

Form only

Form only^

Online or form

n/a

n/a

n/a

Fixed term advice fee Ad hoc advice fee Upfront advice fee Ongoing advice fee Advice fee on ASX share trades

- Consent on Netwealth or third party form

Ongoing advice fee – insurance (Super only)

* via Netwealth online application, online proposal or consent form only ^ ASIC require all account holders to sign consent

10

| netwealth

Managing Advice Fees - Adviser/licensee use only

Non - ongoing fee arrangements

11

| netwealth

Managing Advice Fees - Adviser/licensee use only

Setting up a new/vary a non-ongoing fee arrangement Options to provide a fee instruction (and consent in Super)

Via the application process

Via an online proposal

All fee type consents will be inbuilt into our application forms

Utilise Netwealth’s online portal for clients to provide electronic consent

12

| netwealth

Managing Advice Fees - Adviser/licensee use only

Via Netwealth’s fee instruction form Utilise one form to start a new fee & provide consent

Non-ongoing fee arrangements in Super You must select at least one of the following list of service when generating consent: • Structure & contributions • Investment • Retirement planning • Estate planning • Insurance • Benefit payments • Tax planning

13

| netwealth

Managing Advice Fees - Adviser/licensee use only

Online application changes

In Super, extra fields have been added to calculate fee estimates for % fees 14

| netwealth

Managing Advice Fees - Adviser/licensee use only

In Super, consent to services will drop underneath the fee instruction

Online proposal changes

The ‘update fees’ page will be updated so that: • Any % fees convert to estimated dollar amount • Services appear under the fee instruction • The client can accept the fee instruction and consent in the one online process • Adviser can obtain a copy of the signed consent Fee proposals are sent via email (or text message if no email has been provided)

In Super, consent to services will drop underneath the fee instruction 15

| netwealth

Managing Advice Fees - Adviser/licensee use only

Forms

Super Once-only / Fixed term advice fee consent

16

| netwealth

Managing Advice Fees - Adviser/licensee use only

Wrap Services Once-only / Fixed term advice fee instruction

Ongoing fee arrangements

17

| netwealth

Managing Advice Fees - Adviser/licensee use only

Setting up a new/vary an ongoing fee arrangement Ongoing fee arrangements entered into before 1 July 21, but received after 1 July ‘21

From 1 July ‘21 to 31 July ‘21 we will continue to accept fee arrangements that were entered into before 1 July ‘21 This includes:

18

•

where the adviser commenced an application or fee proposal online prior to the 1st July ‘21, but it gets completed and the client signs it between 1 July ‘21 and 31 July ‘21

•

A copy of the old (pre 30 Jun ‘21) Netwealth application/fee instruction form signed and dated between 1 July ‘21 and 31 July ‘21

| netwealth

Managing Advice Fees - Adviser/licensee use only

Transition rules Existing ongoing fee arrangements at 1 July ‘21

• Ongoing fees will continue to be charged from 1 July • The adviser will have 12 months from 1 July (to 1 July ‘22) to give us signed client consent by the methods listed over page • When consent is provided, we will add the anniversary date for the ongoing fee arrangement, and the future renewal arrangements will be based on that anniversary date

19

| netwealth

Managing Advice Fees - Adviser/licensee use only

Renewing an ongoing fee arrangement More guides and assistance will be provided over the coming 12 months to support the first renewal When the adviser submits their fee consent from 1 July ‘21 and provides us with the anniversary date (also known as the fee renewal date) we will: • Load this anniversary date against the client account and; • Notify the adviser 30 days prior to the anniversary (renewal) date (12 months after the initial anniversary date), that the window to provide consent is now approaching.

• A client can sign off on a fee consent up to 150 days after the anniversary date.

20

| netwealth

Managing Advice Fees - Adviser/licensee use only

Setting up a new/vary an on-ongoing fee arrangement Options to provide a fee arrangement (instruction and consent) or instruction only

Via the application process

Via an online proposal

All fee type consents will be inbuilt into our application forms

Utilise Netwealth’s online portal for clients to provide electronic consent

21

| netwealth

Managing Advice Fees - Adviser/licensee use only

Via Netwealth’s fee instruction form Utilise one form to start a new fee & provide consent

Application process

It is optional to provide consent via the application process for ongoing fee arrangements • If the adviser selects ‘yes’, they will be prompted to add to their fee instruction consent requirements such as fee estimates and the anniversary date.

• If the adviser selects ‘no’, they will be prompted to enter the fee instruction only, and a message will show reminding them of third party fee consent requirements Option to use Netwealth consent via the application process for ongoing fees 22

| netwealth

Managing Advice Fees - Adviser/licensee use only

If the adviser selects ‘no’ to provide consent

23

| netwealth

Managing Advice Fees - Adviser/licensee use only

If the adviser selects ‘yes’ to provide consent

Online proposal changes

• When an ongoing fee is added, you will be prompted to complete a Netwealth fee consent, or provide your own consent.

• If you choose to use your own consent : – You enter the fee instruction only which will be sent to the client – You will need to provide copy of consent via document upload before Netwealth can approve the fee Fee proposals are sent via email (or text message if no email has been provided)

24

| netwealth

Managing Advice Fees - Adviser/licensee use only

Adviser/third party fee consents

Accepted for existing or new ongoing fee arrangements in all products, the consent must:  Clearly identify the account to which the consent applies  Clearly state the anniversary date  Clearly state the amount of the fee to be deducted in the next 12 months  Name the Nominated Financial Adviser on the account (or their licensee) as the fee recipient  Be signed by the required signatories to the account and dated

‘ASIC Instrument’ for consent for ongoing arrangements 25

| netwealth

Managing Advice Fees - Adviser/licensee use only

Forms Option to provide own consent with a fee instruction

Super ongoing advice fee arrangement & Consent

Super ongoing advice fee arrangement Instruction (consent to be attached)

26

| netwealth

Managing Advice Fees - Adviser/licensee use only

Wrap Services ongoing advice fee arrangement & Consent

Wrap Services ongoing advice fee arrangement Instruction (consent to be attached)

Other fees (if applicable)

27

| netwealth

Managing Advice Fees - Adviser/licensee use only

Other fees

There are other fee types affected by the changes in legislation. These includes; •

Managed Account Model Fee

•

Group Insurance Advice Fee

•

Wholesale Client Advice Fees

If you are affected by these arrangements, you can access the landing page on the Netwealth website for more information, or get in touch with your Training and Relationship Manager.

28

| netwealth

Managing Advice Fees - Adviser/licensee use only

Tracking Fee Arrangements Online

29

| netwealth

View/track fee arrangements Historical, current and future arrangements

We have updated the fee profile and update fees page to make it simpler to view current and historical fee arrangements.

We have also updated the following reports with ongoing fee arrangement details, and the anniversary date:

30

•

Adviser/dealer: The ‘’’Client Fees’ bulk report

•

Client: The 'Adviser Fee Statement' and 'Client details' reports

| netwealth

Managing Advice Fees - Adviser/licensee use only

In Summary

31

| netwealth

Netwealth is focused on streamlining the payment of advice fees

Consent has been embedded into existing user-friendly adviser fee functionality

Flexibility to use your own consent templates for ongoing fee arrangements

Online tasks and tracking will be available to help manage renewals

Managing Advice Fees - Adviser/licensee use only

Signoff on a fee instruction and consent in one fullyonline transaction

Support

32

Practice support A robust and reliable support system for advice businesses

Managing Advice Fees - Adviser/licensee use only

Key Account & Distribution Managers

Key Account Managers and Business Development Managers are available Australia wide and are responsible for managing the overall adviser and dealer relationships.

Training & Relationship Managers (TRM)

A network of Relationship Managers countrywide who can assist with client onboarding, ongoing training of advisers and practice support staff.

Technical Services Team

A dedicated technical services team is available for specialised technical assistance and guidance. They are also available for:  Strategy and Technical Assistance  PD days and client Seminars

Adviser Support

Highly experienced and technically-savvy contact centre staff are Melbourne-based and are available via phone or webchat to assist with all adviser queries.

How-to guides

• Online guides available via the Support tab • Adviser or investor (adviser client) guides available • 8 different topics to browse • Onboarding guides available • Where you have a white-labelled website and send links to clients, guides will also appear to be branded

34

| netwealth

Managing Advice Fees - Adviser/licensee use only

Key & strategic accounts

Distribution presence • 30 team members & growing • Regional teams, national coverage

| netwealth

35 Managing Advice Fees - Adviser/licensee use only

Thank you