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Financial Services Guide

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Morningstar Australasia Pty Ltd

Financial Services Guide


ABN: 95 090 665 544
AFSL: 240 892
Updated: March 2020

This Financial Services Guide (FSG) has been prepared and issued by Morningstar Australasia Pty Limited (“Morningstar”) ABN: 95 090 665 544. Morningstar is a subsidiary of Morningstar, Inc., (NASDAQ: MORN), a leading provider of independent investment research in North America, Europe, Australia, and Asia.

Who will be providing the financial service to me?

Morningstar Australasia Pty Limited

Australian Financial Services Licence Number: 240892 Principal Place of Business:
Level 3, International Tower 1,
100 Barangaroo Avenue,
Barangaroo, NSW 2000

Postal Address:
Locked Bag 25
Royal Exchange NSW 1225

Morningstar.com.au subscribers Tel:1800 03 44 55
Email: help.au@morningstar.com www.morningstar.com.au

Advisers/Institutions/Others Tel: +61 2 9276 4446
Fax: +61 2 9276 4545
Email: helpdesk.au@morningstar.com www.corporate.morningstar.com/au

Firstlinks subscribers:
Email: firstlinks@morningstar.com

What kinds of financial services are you authorised to provide me?

Morningstar is authorised to provide general financial product advice to retail and wholesale clients on the following types of products:

  • Basic deposit products
  • Derivatives
  • Government debentures, stocks, and bonds
  • Managed funds, including investor directed portfolio services
  • Securities
  • Superannuation and retirement savings accounts

Morningstar currently provides its clients with financial product data, indexes and information, research reports and general financial product advice through newsletters, other publications websites, data feeds and software products.

Our publications include articles and editorials prepared by our own staff, by our authorised representatives (who act as consultants in providing us with regular articles about a range of economic and financial issues), and by third parties

(including other AFSL holders) who are responsible for the contents of their articles.

Please note that to the extent that any of our publications, ratings, products or services provide advice, this is general financial product advice only. This means that the advice has been prepared without taking into account your investment objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice, as well as any additional warnings, disclaimers or qualifications. In the case of advice relating to financial product research, you should also consider the information provided by Morningstar as to the scope  of the research, the process by which products are selected for coverage, the filters and research methodology applied, and the spread of ratings. For further information in relation to our research please refer to the Research Report Disclosure section at the end of this document, or the Research Report Disclosure contained within our research reports. Further information can also be obtained at www.morningstar.com/company/disclosures

Our publications, ratings products and services should be viewed as an additional investment resource, not as your sole source of information. We recommend you obtain appropriate financial, legal and taxation advice before making any financial investment decision. In addition:

  • you should be aware that past performance does not necessarily indicate a financial product’s likely future performance, and
  • if applicable, before making any decision to acquire a particular financial product, you should obtain and carefully consider the relevant product disclosure statement.

Please also note that we base our financial product research on current information furnished to us by third parties (including the financial product issuers) which we cannot necessarily verify. While we will use all reasonable efforts to obtain information from reliable sources, we do not guarantee the accuracy or completeness of that information. Our financial product research may be withdrawn or changed at any time as other information becomes available to us.

How will I pay for the service?

If you have signed up to one of Morningstar’s free products, there is no payment required. Morningstar operates a subscription-based business when you subscribe to the Morningstar.com.au website. When you subscribe you will be required to pay a fixed fee according to the length of the subscription period, excluding any trial period where you will have an opportunity to trial the product without charge.

How are Morningstar employees and authorised representatives paid?

All employees of Morningstar receive a salary and permanent employees are able to participate in any bonus or sales commission plan relevant to their role, as offered by Morningstar from time to time at its discretion. Certain employees may also receive Restricted Stock Unit Grants in Morningstar, Inc. that are vested over a defined period. Authorised representatives are paid as consultants in accordance with the particular services they provide.

Do you receive remuneration, commission, fees or other benefits in relation to providing the financial services to me and how is that commission calculated?

As mentioned, we will receive a fixed fee from you in relation to your morningstar.com.au subscription.

Except as stated in this FSG, Morningstar (including its related companies, associates and directors) does not charge or accept payment or commissions from fund managers, listed companies, or any other product issuers in relation to, or that is attributable to, the services that we provide to you, nor for the production of our research generally.

Some of our manager research employees participate from time to time in overseas industry forums which product issuers pay to attend, and in relation to which our employee travel and accommodation costs are met by the forum organisers, which in turn charge fees to fund managers about which Morningstar may have published research reports. That is, the benefits are indirectly provided by the product issuers.

Morningstar regularly reviews all gifts, benefits and entertainment received to ensure adherence with internal policy requirements.

Morningstar generates the majority of its income from the following sources:

  • Subscription fees from our clients for research, consulting, software products, and subscriptions to websites and newsletters
  • Subscription fees from our clients for equity, credit and fund data services
  • License fees from financial planning and revenue management software
  • License fees from product issuers rated by us, giving them the right to republish our ratings, and research in their promotional materials
  • License fees from product issuers to use Morningstar Indexes and basis point income based on the assets in the product
  • Event and website sponsorship
  • Website advertising

To the extent that any income we receive from product issuers we prepare research on or are rated by us, is in respect of, or attributable to, the services that we provide you, as at the date of this FSG we cannot ascertain the amount that we reasonably expect to receive.

Morningstar may pay external parties who refer clients to us in connection with the financial services to which this FSG relates. The payment could be a single one-off payment or a percentage of the total amount revenue generated by their referral. If you wish to receive further particulars about remuneration and related benefits that we are required to disclose to you, please contact us within a reasonable period of time after you receive this FSG and before any financial service identified in this Guide is provided to you.

Where Morningstar does provide any of the above services to product issuers that are rated by us, all services are provided on an arms-length basis.

How do you manage potential conflicts of interest?

Morningstar has an associated business, Morningstar Investment Management Australia, which provides investment management services.

Morningstar avoids potential conflicts of interest by not undertaking or publishing qualitative analyst research on Morningstar Investment Management’s investment products.

Morningstar avoids potential conflicts of interest by not publishing qualitative analyst research or qualitative ratings on investment products that track a Morningstar Index.

No material interests are held by Morningstar, its staff, or related companies in the financial products that are the subject of our research reports or the product issuer. Generally, analysts are not permitted to hold securities in entities that they rate, subject to specific waivers by the Morningstar, Inc Securities Trading and Disclosure Policy Committee.

Our employees and authorised representatives are guided by our Code of Ethics and our related conflicts of interest policies.

Our employees may from time to time receive nominal gifts/ hospitality from clients and/or product providers. We have strict guidelines in place as to the circumstances and extent to which our employees may accept any such gifts/hospitality.

Morningstar permits financial product issuers to license the right to republish our ratings and research in promotional materials. Licensing negotiations are undertaken by sales employees segregated from research employees. Any licensing agreement takes place after the ratings and research have been completed and published to our clients and the wider marketplace, and the product provider therefore cannot influence the outcomes of our assessments. Morningstar research staff are remunerated by salary and do not receive any commissions or fees. They may be eligible for an annual bonus which is discretionary and relevant to their role as offered by Morningstar from time to time at its discretion.

What information do you maintain in my file and can I examine my file?

The privacy of your personal information is important to us. Any personal information we collect such as your name, address, phone, and email details are handled in accordance with our Privacy Policy. Our Privacy Policy outlines how we comply with the requirements of the Privacy Act 1988. A copy of the Privacy Policy can be obtained by visiting our website. You can access your personal information in accordance with our Privacy Policy.

Does Morningstar have professional indemnity insurance?

Yes. Morningstar holds a professional indemnity insurance policy in accordance with its obligations under section 912B of the Corporations Act 2001.

Who can I contact if I have a complaint about the provision of the financial services to me?

If you are not satisfied with our service, please contact us using the contact details on page 1. We will seek to resolve your complaint promptly and fairly.

If your complaint is not resolved to your satisfaction or 45 days have elapsed since your complaint was given to Morningstar, you have the right to contact the Australian Financial Complaints Authority (AFCA). AFCA is an external dispute resolution scheme authorised to deal with complaints in relation to the financial services industry. AFCA’s contact details are:

Australian Financial Complaints Authority
GPO Box 3
Melbourne VIC 3001
Telephone: 1800 931 678 (free call) Email: info@afca.org.au
Website: www.afca.org.au

This Publication is a Financial Services Guide for the purposes of section 941A of the Corporations Act 2001 to the extent that the recipient of the services described in this document is a retail client as defined by the Corporations Act 2001; and is issued subject to the laws of the state of NSW and the Commonwealth of Australia and all matters arising from it or its use shall be subject to the exclusive jurisdiction of the Courts of NSW.

 

A copy of this Financial Services Guide can be downloaded here.

 

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Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use.
Any general advice or class service prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, has been prepared by without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.