Disclosure Statement

Licensing Information

Sunshine Mortgages Limited holds a Full Financial Advice Provider (FAP) licence (Class 2) issued by the Financial Markets Authority (FMA) to provide financial advice services. Our Financial Services Provider (FSP) number is FSP1003808.

A Class 2 licence covers the service of a financial advice provider (whether the licence holder or any authorised body) providing regulated financial advice to retail clients.

Financial Advice and Product Providers

Sunshine Mortgages Limited provides financial advice on Lending products. The product types an individual adviser can give advice on, and the relevant product providers will be disclosed at an adviser level in the Disclosure Guide. Our Financial Adviser will provide their Disclosure Guide to you when you engage with them, or you can request a copy from us at any time to see the list of product providers.

Commission

If you proceed with a product based on financial advice received from one of our Financial Advisers, Sunshine Mortgages Limited usually receives commission from the applicable product provider. The commission is generally of an upfront nature but may also include a renewal or trail commission.

This commission is used to remunerate the Financial Adviser that provides the financial advice to you, and to pay the expenses associated with running our business including any rent, staff costs and IT resources. Sunshine Mortgages Limited also use this commission to pay KAN for services they provide to us in connection with our Lenders and all trainings.

Sunshine Mortgages Limited takes serious steps to ensure that the receipt of commissions does not in any way influence the financial advice given to you and that our Financial Advisers prioritise your interests by recommending the best product for your purpose regardless of the type and amount of commission that may be received. These steps include:

• Ensuring our Financial Advisors follow the six-step advice process that ensures the Financial Advisor understands your needs and goals and that their recommendations meet those needs and goals.
• Ensuring our Financial Advisors receive regular training on how to manage conflicts of interest.
• Providing you with a schedule showing commission rates and types by product provider. This schedule is contained within each Financial Advisor's personalised Disclosure Guide. Your Financial Adviser will provide you with more information about commissions during the advice process.

Fees and Expenses

Generally, Sunshine Mortgages Limited does not charge you any fee for the advice and transactional solutions provided to you. This is possible because we receive commission from the applicable product provider as described above. There are three exceptions to this general position which are explained below.

You may be charged a one-off fee in the following situations:

1. No commission: If you request that we provide Services in relation to a product or service and we do not receive a commission. Any such fee would be agreed and authorised by you in writing before we complete the Services.
2. Repayment of commission: If a product or service provider requires that we repay commission within 27 months of settlement of your mortgage. Any such fee is determined on a pro-rate basis, depending on the length of time the loan product has been in place. It would be no more than NZ$1,000 and would be calculated based on a rate of NZ$200 per hour of the Adviser and his/her team's time spent providing Services to you in connection with the applicable mortgage.
3. This may arise in very limited circumstances, such as if you have repaid a loan in full within 27 months.

If applicable, you agree to pay the fees set out above, within 30 days of receipt of a valid invoice from us.

Conflicts of Interest

If there are any conflicts of interest, apart from commission, that could potentially influence the financial advice given to you, these will be shown in your Financial Advisor's Disclosure Guide.

Complaints

If you are not satisfied with our service, please send an email to grace@sunshinemortgages.co.nz and tell us what has happened and how we can resolve matters. If you have any documents or correspondence that will help us understand your complaint, please attach them to your email.

When we receive your complaint, we will:

• Acknowledge your complaint within two working days
• Gather and evaluate information about your complaint
• Respond to you within 20 working days

If we cannot resolve your complaint to your satisfaction, you can contact Financial Services Complaints Limited – A Financial Ombudsman Service (FSCL). They are an independent, not-for-profit, external dispute resolution service approved by the Minister of Consumer Affairs.

FSCL's role is to investigate and fairly resolve complaints. Their service is free (it does not cost you anything).

Duties

Financial Advisors from Sunshine Mortgages Limited are bound by and support the duties set out in the Financial Markets Conduct Act 2013. These duties are:

• Meet the standards of competence, knowledge, and skill and the standards set out in the Code of Professional Conduct for Financial Advice Providers.
• Meet the standards of ethical behavior, conduct and client care set out in the Code of Professional Conduct for Financial Advice Providers.
• Give priority to your interests.
• Exercise care, diligence, and skill.