Broker Disclosure – Lewis Limited

Broking Services – Group Insurances

Lewis Limited provides broking services to some clients with group insurance contracts.   This involves the clients being invoiced by Lewis Limited and then Lewis Limited paying the insurer net of the commission which is retained by Lewis Limited.  In some cases the payment to the insurer is a combined total for several members of the group contract.

Broking Services – Individual Insurances

In addition, some individual clients have elected to pay for their insurance premiums on an annual basis via the Lewis Limited Trust Account.  These premiums are transferred on an individual basis to the insurer at the full premium.  Where applicable, commission is paid separately by the insurer to Lewis Limited.

All monies payable by an insurer to an individual client are paid directly  to the client from the insurer.

Money Handling Procedures

All transactions through the Lewis Limited Trust Account are properly accounted for using Xero software.   At the time of raising an invoice to a client, a corresponding purchase invoice for the insurer is created.  This is managed and reconciled on a daily basis by Julie Mackie who has a BCom in Accounting and was a member of the Institute of Chartered Accountants from 1981 and 2005.   Back-up support and review is provided by PKF Ross Melville however the Trust Account is not separately audited.

Payment for Services

Lewis Limited may receive income for Group Insurances in the following ways:

  • Administration fees for annual costs incurred in processing data.
  • Consulting fees for advice on group or other insurance options
  • A percentage of annual premium retained by Lewis Limited who pays the insurer the net premium required by them
  • Interest on Trust Account Funds where there are timing differences between the receipt of Lewis Limited Professional Group clients and the payment to the insurer for the whole group’s premium.   The amount of interest would approximate an average of $3 per client.

We may receive  subsidised or free training provided by insurance companies or Ginger Group.  We have never knowingly received subsidised or free travel or gifts of value as a result of a sales incentive programme run by any insurer.

Professional Indemnity Insurance

We have professional indemnity insurance which covers all areas of practice as listed above.  This insurance provides protection for clients for any error or omission, defamation and employee dishonesty.  As with all insurance, this cover has limitations and is subject to certain standard exclusions and terms and conditions.

The level of cover is in compliance with the IFA by-laws.  The underwriter is Chartis.

Dispute Resolution

A dispute resolution facility is available by contacting:

The Compliance Manager
Lewis Limited
P O Box 8477
Symonds Street
Auckland 1150
Telephone: 09 638 9940

Disputes will be managed as follows:

  • Lewis Limited will acknowledge receipt of the complaint within 48 hours and seek to resolve the dispute in question.
  • If we do not agree on a resolution to the dispute within a reasonable time frame, your complaint should be lodged with Financial Services Complaints Ltd (FSCL).  FSCL is an independent Dispute Resolution scheme in which Lewis Ltd is a participant.  FSCL contact details are:
IFinancial Services Complaints Limited
P O Box 5967
Wellington 6145

For more details please refer to their website at www.fscl.org.nz.

Professional Relationships

Iain Smart is a member of the Institute of  Financial Advisers (IFA) and, as a condition of his membership, adheres to the IFA Code of Ethics and Practice Standards in all facets of our practice.  Both Iain Smart and Julie Mackie are members of Ginger Group which assists in our training across all facets of the business including compliance with FMA standards.

No Director, Shareholder or employee of Lewis Limited has been:

  • Convicted of an offence under the Securities Markets act 1988; the Investment Advisers (Disclosure) Act 1996 or the Securities Act 1978, or for a crime involving dishonesty
  • A director or principal officer of a body corporate that has committed an offence against the Securities Markets act 1988, the Investment Advisers (Disclosure Act) 1996 or the Securities Act 1978 or for a crime involving dishonesty
  • Adjudged bankrupt
  • Prohibited by an Act or by a Court from taking part in the management of a company or business
  • the subject of an adverse finding by a Court in any proceeding taken against me in my professional capacity; or
  • Expelled from, or prohibited from being a member of, a professional body.

Privacy Act

It is important that you know that any personal information collected by us will be held in accordance with the Privacy Act of 1993. This allows you to request access to, and correction of, the information at any time.

This document was updated on 20 November 2012