DJ Carmichael Pty Limited Financial Services Guide ("FSG")

Issued by DJ Carmichael Pty Limited A.B.N. 26 003 058 857 Australian Financial Services Licence No. 232 571.

About this Financial Services Guide

This document is provided to you as a guide to the Financial Services that DJ Carmichael provides, in order to assist you in deciding whether to use our services, how we may be paid and information about our complaints process in the event that you are not satisfied with the service you receive. The FSG provides an outline of the costs to you of utilising our services. 
Before using our services, you should read this FSG carefully, together with any other disclosure documents you may receive.

It is important that you read and understand this FSG prior to dealing with DJ Carmichael Pty Limited (DJ Carmichael). If you have any questions regarding any of the information contained in this FSG, please contact your DJ Carmichael Investment Adviser.

Documents you may receive

You may receive a Statement of Advice (SOA) which details any personal advice provided by your Investment Adviser (Adviser) the first time personal advice is provided, or when your particular circumstances or the basis of advice have changed. The SOA also sets out the specific fees, commissions and remuneration received by DJ Carmichael and your Adviser arising from implementing your instructions. Please carefully read the Statement of Advice Section below.

You may also receive a Product Disclosure Statement (PDS) or Prospectus. A PDS is a document that describes a financial product. A PDS contains important information to assist you to make a decision about the product. You will usually receive a PDS if a recommendation is made to acquire a particular financial product (other than securities) or an offer is made to issue, or arrange the issue of, a particular financial product. A Prospectus describes an offer of securities.

Providing instructions to us

You may give us verbal instructions by phone or written instructions by mail. As time is of the essence in “live” markets during the market trading hours, the telephone is the preferred means. Any method other than telephone contact is entirely at your own risk and you should always confirm that your order has been received and contains sufficient information for your Adviser to be able to execute your instructions. If you choose to give us instructions by email, we accept no responsibility for any failure by DJ Carmichael or any representative to act on the instruction if that instruction has not been acknowledged either verbally or electronically.

Who do we act for in providing services to you?

Your Adviser will be acting on DJ Carmichael’s behalf. DJ Carmichael is therefore responsible for services your Adviser provides. DJ Carmichael was established in 1896 and has over 120 years of experience in providing financial services to our clients.

The Financial Services we are authorised to provide

We may advise you on: securities; basic deposit products and deposit products other than basic deposit products; derivatives; debentures; stocks or bonds issued or proposed to be issued by a government; interests in managed investment schemes including investor directed portfolio services; retirement savings accounts; margin lending and superannuation.

We may deal in financial products by:

(a)    Applying for, acquiring, varying or disposing of a financial product on behalf of another person in respect of the following classes of products;

  • basic deposit products and deposit products other than basic deposit products; 
  • derivatives; 
  • foreign exchange contracts;
  • margin lending;
  • debentures, stocks or bonds issued or proposed to be issued by a government; 
  • interest in managed investment schemes including investor directed portfolio services; 
  • retirement savings accounts; 
  • securities; 
  • superannuation;

(b)    Underwriting securities and interests in managed investment schemes; and

(c)    Issuing, applying for, acquiring, varying or disposing of a financial product in respect of derivatives.

We do not offer nominee custodial services, but we have an arrangement with Pershing Securities to assist clients who require that service. We also do not offer futures or commodity futures such as wool and wheat nor currency trading. Nor do we offer risk insurance products or managed discretionary accounts.

We ensure that our Advisers will only provide advice in the range of financial products for which they are accredited. 

Full Service Financial Advice and Stockbroking 

Our Advisers can tailor the services to your requirements: “full service” with research and portfolio advice; or a pure “execution only” no-advice service.

Exchange Traded Options Strategies 

Our specialist Options Advisers can provide tailored strategies or execution services.

Financial Strategies 

The scope of the advice provided to you may cover specific strategies in the following areas:

  • Securities;
  • Margin lending;
  • Superannuation;
  • Retirement income strategies;
  • Wealth creation;
  • Portfolio construction and advice;
  • Trading strategies;
  • Institutional dealing; 
  • International dealing; or
  • Corporate advisory (wholesale clients only).

Personal or General Advice

Depending on the circumstances, you may receive general advice, personal advice or execution only services from us.  When your Adviser provides personal advice to you, he/she is obliged to act in your best interests. To enable them to do so, your Adviser needs to obtain details of your individual investment objectives, financial situation and needs. We will, therefore, ask you for information at the time you open an account with us. You have the right not to disclose this information to us if you do not wish to do so. However, your Adviser will then be limited in their ability to provide advice that is specific to your requirements. In that case, the onus is upon you, before acting on the advice, to consider the appropriateness of the advice, having regard to your own relevant personal and financial circumstances. 
If you decline to provide sufficient information or the information is not accurate, you risk acquiring financial products that are inappropriate for you.

Please note that, as a minimum requirement, you must provide your risk profile when opening an account with DJ Carmichael.

It is very important that we understand your goals, investment objectives, financial situation and attitude to risk if we are to give you advice that is in your best interests. Your Adviser may decline to give personal advice if you have not provided sufficient information.


DJ Carmichael Pty Limited is a wholly owned subsidiary of the DJ Carmichael Group Pty Ltd (DJCG) ACN 114 921 247.

DJ Carmichael and Pershing Securities Australia Pty Ltd

DJ Carmichael has an agreement with Pershing Securities Australia Pty Ltd (Pershing) ABN  60 136 184 962 and AFSL 338264 to execute, settle and clear all ASX and Chi-X transactions; and settle and clear all NSX transactions for and on behalf of DJ Carmichael. You should also read Pershing’s Financial Services Guide. Please contact your Adviser if you have not already received a copy.

Statement of Advice 

Whether you are an existing or new client will impact upon the timing and circumstances of when you receive an SOA.

The SOA will outline: the advice, or the advice you have already received (if the advice was market-related); the basis for the advice; the fees, commissions or payments that DJ Carmichael and your Adviser will receive as a result of carrying out the agreed transactions, and any potential conflicts of interest that may possibly influence the advice you are given.

New Clients
You will receive an SOA the first time you receive personal advice from DJ Carmichael. You will not receive a further SOA unless you request one regarding Further Advice being given to you, or in the circumstances outlined below. 

Existing Clients
You will receive an SOA the first time we provide you with personal advice after you have advised DJ Carmichael and/or your Adviser that your circumstances have changed significantly, as this may influence the types of investments or the suitability of strategies that have been employed on your behalf. Such changes may be triggered by life events such as marriage, divorce, the birth of a child, redundancy, retirement, illness or an accident that may prevent you from working. Any event that has a significant impact on your life and your financial security should be communicated to your Adviser, so they can provide advice that is suitable to your changed circumstances.  You may also receive an SOA if the basis of our advice has changed. Even if an SOA is not required, you may request a Record of Advice up to seven years after the advice was given.

Other Documents

When you open an account with DJ Carmichael, you will be given access to documents that relate to services offered by Pershing, as well as DJ Carmichael, including:

  • Privacy Policy; 
  • Pershing Securities Financial Services Guide; and
  • Terms and Conditions of Opening an Account.

Please take the time to read these documents carefully and keep them for your future reference. 

If you are Chess Sponsored by Pershing, you will receive a copy of your executed sponsorship agreement if you indicate that you wish to receive one. You will be provided with documents including all the terms and conditions governing your sponsorship agreement when you open an account with us. 

When you transact on a licensed market such as the Australian Stock Exchange Limited (ASX), or any other stock exchange, you will receive a confirmation stating all the details of the transactions. The confirmation will set out full details of the brokerage charge, GST and settlement terms. Settlement terms are clearly stated on your confirmation and are generally T+2 for securities and T+1 for options. Payment should be made promptly as interest will be charged on overdue payments as outlined in Miscellaneous Fees and Charges in this FSG.

Product Selection

Risks of Investing

All investments carry risk. Securities, in common with other asset classes (e.g. real property and government bonds) can decline in value as well as appreciate.  The value of securities is generally more volatile than other asset classes. However, the markets for other asset classes are often not as efficient or transparent as the stock market in terms of the information available to investors and the process for continuously determining the market value of the particular asset. 

Dealing in Derivatives and Warrants can involve extra risk and you should ensure that you fully understand the risks and features of these products prior to dealing in them.

Leverage or gearing also carries extra risk and you need to be aware that losses can be magnified. Therefore, you should always ensure that you have sufficient cash flow to meet margin calls and interest payments prior to deciding to borrow to invest.

In general, the risks of investing in equities can be categorised in the following manner. Please note that the list below does not purport to be complete, as it would not be feasible to list all the possible risks in each category:

  • Overall Market Risk;
  • Domestic versus International Risk Factors;
  • Sector Specific Risk Factors; and
  • Stock Specific Risk Factors

Our Advisers make their recommendations based on the information available to them at the time of advising you. Markets can move extremely quickly. Therefore, you should satisfy yourself that the investment you are considering is suitable for your time frame and your risk profile. When assessing your tolerance to risk, you should ask yourself “how much of my capital am I prepared or can afford to lose,” as well as deciding whether your strategy will employ an aggressive growth strategy (with high risk), but with the potential to achieve a higher return, or whether you it is more appropriate to aim for modest returns with less risk of significant loss.  However, it is still possible to lose money on “blue chip” shares.

Limitations of Research

Published research is the opinion of specialist analysts based on publicly available information. It is only valid for a limited time and is often subject to market movements. For example, for short term investors, a “buy” recommendation could turn into a “sell” recommendation where the market price of a stock appreciated by a small amount. For a prospective longer term investor, this market movement may not be significant, although a larger movement might be.  

The mere fact that a stock is recommended by an analyst as a “buy” does not necessarily mean that the stock is a suitable investment for you and you should consult your Adviser before acting on any research report or newsletter. 

Our research contains general financial product advice only. Whilst preparing the document, our analysts do not take into account the investment objectives, financial situation and particular needs of any particular person. Accordingly, before acting on any advice contained in a research document you should assess whether the advice is appropriate in light of your own particular circumstances.

What you may be charged

The fees you are charged will depend on the service you ask us to provide. In the absence of any special arrangements that may be communicated verbally or in writing, our fees are as set out in this Guide. All fees specified include GST. We reserve the right to change these fees from time to time. 

Brokerage on Securities and Derivatives Transactions

Brokerage rates for securities and derivatives transactions are as follows:


This arrangement is subject to a minimum brokerage charge applying, depending upon the service provided (currently $110.00 for securities transactions). One-off/Sell only accounts will incur the following charges:

  • Minimum brokerage of $143 for Australian residents; or 
  • Minimum brokerage of $275 for overseas residents.

For example, for a transaction with a value of $150,000 where brokerage is charged at a rate of 1.65%, the total brokerage will be $2,475. 

If you trade derivatives, you will be charged brokerage plus ASX Clear charges as outlined in the Miscellaneous Fees and Charges Section.  

For example, exercising 10 BHP contracts will result brokerage of $110 plus a fee of $0.55 (10 x $0.05 + GST), or $110.55. Any increase in fees imposed by ASX Clear in relation to your transactions will be passed directly onto you.

Brokerage on International Transactions

We charge brokerage on international transactions according to the same scale as for Australian securities and derivatives, subject to a minimum brokerage of $200, which may change upon notification to you.

In addition to our brokerage, international fees are also charged by the executing broker and will vary depending upon the exchange on which the product is traded. For example, international fees generally range between 0.07% and 2% of the transaction value, subject to at least a $20 minimum.  The brokerage rate, minimum brokerage and estimated additional fees payable will be advised to you prior to transacting.

Third Party Nominee and Custody Fees

We pass on to you fees levied upon us by external foreign agents, if applicable. These may include currency conversion charges, custody charges, transfer costs, certification fees, compliance fees and notification charges.  These fees will be advised to you prior to transacting.

Financial Planning or Specific Financial Advice

Fees for the preparation of full financial plans or specific financial advice commence at $550 and may include an ongoing advice fee of up to 2.75% per annum, as agreed between you and your Adviser. The amount you will be charged depends upon the complexity of the plan or other personal advice and the estimated time taken to complete it.

Strategic Asset Management Service

We provide a portfolio service through the Strategic Asset Management Service.

Annual Fee plus Brokerage Option

The Strategic Asset Management Service (SAM) is provided for an Annual Fee that is calculated as a percentage of the average daily value of your portfolio and charged on a monthly basis, as set out in the table below. The fee is deducted from cash reserves contained within the cash management account within the first fortnight of the following month.

The scale below applies the Annual Fees against the total value of your investments on a sliding scale. In addition, you will incur brokerage transaction charges. The sliding fee scale is as follows:


There is a minimum fee of $1,980 per annum inclusive of GST for this service.

For example, if your portfolio value is constant at $300,000, the SAM Annual Fees would be $5,090 per annum charged as $424 per month of which your Adviser would receive up to $2,313 per annum, or $192 per month. Brokerage charges will be in addition to the Annual Fee.

Fee Only Option

The SAM service may also be provided for a fee that is calculated as a percentage of the average daily value of your portfolio and charged on a monthly basis as set out in the table below. The fee is deducted from cash reserves contained within the cash management account within the first fortnight of the following month.

Brokerage charges will apply if the maximum number of contract notes is exceeded, or if you wish to utilise the SAM account for Exchange Traded Options (ETO) transactions or investments other than listed securities.


There is a minimum fee of $5,500 per annum including GST for this service.

For example, if your portfolio value is constant at $300,000, then SAM Annual Fees would be $8,250 charged as $687 per month. Of this amount, your Adviser would receive $3,750 per annum, or $312 per month.

Important Information Regarding Strategic Asset Management Annual Fees

An initial minimum term of 12 months applies to the Strategic Asset Management service and thereafter, the arrangement may be terminated in accordance with the terms of the SAM Agreement.

In addition to the SAM fees, you will be responsible for other charges, taxes, costs and expenses in respect of the account in accordance with DJ Carmichael’s normal fee schedule.

Complete Superannuation Service

The service offers professional administration for your SMSF, including: member reporting; annual fund statements; and integrated lodgement of tax returns and annual audit via an external Tax Agent and approved Auditor. There is a minimum fee of $1,980 including GST plus:


For example, if your SMSF had a balance of $500,000 in Cash and Equities Only, the annual fee would be $2,475 (i.e. $1,980+$495).

Miscellaneous Fees and Charges

If applicable to you, various fees and charges may be passed onto you in relation to the operation of your account and trading activity. These are outlined in the following table:


Booking Corrections
Manual Bookings
Initial Settlement Fail fee - 
   Sell transactions only*
Dishonour Fee
Confirmation Fee (per trade)
Off Market Transfer Fee
Early payment fee
Overseas Account Opening Fee
Estate Administration Fee
Nominee Service

ASX Clear (Exchange Traded Options)    
   - Equity Trades
   - Index Trades
   - Assignment/Exercise – Equities
   - Assignment/Exercise – Index


$15 per stock per month  

$0.13 (excl GST)
$0.45 (excl GST)
$0.05 (excl GST)
$0.35 (excl GST)


If additional assistance is required in relation to our services that is not covered by the charges above, an administration fee will be charged, which will depend upon the complexity of the matter and the estimated time for completion. DJ Carmichael reserves the right to pass through to your account any additional charges, or changes to existing charges that DJ Carmichael may incur as a result of changes in industry practices, or through the normal course of business operations. You will be notified of any of these changes prior to implementation.

Should you require assistance to meet obligations under ASX Settlement Rules, additional charges will apply. For example, if we access registry records to confirm a Shareholder Reference Number (SRN) for a parcel of shares sold, we will pass on the ASX CHESS search fee, together with an administration fee of $22, which may be deducted from the sale proceeds. Similarly, should you fail to pay for a purchase by T+2, DJ Carmichael may impose an administrative charge on outstanding amounts. Pershing may also charge DJ Carmichael interest on these amounts which DJ Carmichael is required to pay. We will therefore pass this interest charge to you, together with the administrative charge. These charges are noted in the following table:

misc 2.png

We reserve the right to charge an administration fee on foreign exchange transfers, dishonours, statement reprints and Telegraphic Transfers. Government charges may be incurred and on-charged to you in relation to your account.


Separate administration or advice fees may be payable for a specific service that has been requested by you that may not fit into one of the above areas. The amount you will be charged will depend upon the complexity of the request and the estimated time taken to complete it.  

Remuneration, Commissions and Other Benefits received by us

Generally, our remuneration is derived from the following sources:

  • brokerage, when we buy or sell financial products listed on the Australian Stock Exchange or other licensed market;
  • adviser service fees based on: the value of your funds under management; or fees charged at a fixed rate for services provided; or
  • adviser service fees paid to us on your instructions by product and service providers.

Benefits We May Receive

Fees and charges may apply on products and platforms, which will be fully disclosed in the PDS, Statement of Advice (if applicable), or verbally, and your authority to proceed obtained prior to any action being taken. Subject to applicable law, the range of benefits we may typically receive is set out below:


Details of these benefits will be provided at the time of the advice or disclosed in the applicable document, or verbally.

How our Investment Advisers are Paid

Our advisers are paid between 40% and 50% of the brokerage, commissions and other revenue earned on transactions, and 50% on fees received from Corporate and Wealth Management transactions.

Examples of the type of remuneration an Adviser may receive is set out below:


Our employees and directors may receive salaries, bonuses, commission and other benefits from us.

Where permitted by law, DJ Carmichael and our Advisers may also be entitled to other benefits including discounted services, gifts of less than $300 in value, education, training and awards. 

Interest from Client Monies held on Trust

In accordance with Corporations Regulation 7.8.02(7) and section 981C(c) of the Corporations Act, we will retain interest earned, if any, from our bank account in relation to client monies held within our trust account.

Referral Fees

Where permitted by law, if a third party has referred you to us, we may pay a portion of our brokerage or commission to them. This will be at no additional cost to you. Where permitted by law, we may receive referral fees from third party providers for referring your business to them. Any referral fees will be disclosed to you and your prior consent to those arrangements will be obtained, where required.

Our Professional Indemnity Insurance

DJ Carmichael has in place Professional Indemnity Insurance which complies with s912B of the Corporations Act.

It is important that you, as our client, recognise the limitations of this insurance. PI Insurance is not designed to protect consumers directly and is not a guarantee that compensation will be paid.

This insurance is not intended to cover consumer losses in the following circumstances:

  • Product failure or investment losses;
  • All possible consumer losses relating to financial services;
  • Claims for loss solely as a result of the failure (e.g. through insolvency) of a product issuer in that it is not intended to underwrite the products of a product issuer; or
  • A return on a financial product that has not met expectations.

The insurance is intended to protect the Licensee (DJ Carmichael Pty Limited) against the risk of financial losses arising from poor quality services or misconduct by its representatives. Our cover includes cover for representatives who are no longer employed by DJ Carmichael, but only in respect of acts which they committed during their time as an employee and which were not known prior to this policy, and which are accepted by our insurers.

Your Privacy

The privacy of your personal information is important to us. Any personal information collected will be handled in accordance with our Privacy Policy, a copy of which is available on our website. Our Privacy Policy details how we comply with the requirements of the Privacy Act in the handling of your personal information. 

We maintain a record of your personal profile which includes details of your investment objectives, financial situation and needs, such as: identification documents; employment details; your financial circumstances, including your assets and liabilities, income and expenditure; together with details of your investment preferences. You should advise us of changes to your circumstances so we may ensure our information is up-to-date. We will also maintain a record of your contact details so we can communicate with you. Should your contact details change, you need to let us know as soon as possible to ensure we can contact you when necessary.

If you would like a copy of the information we hold, please contact your Adviser. We may charge you a nominal cost for accessing and/or photocopying personal information that you request. 

Who can I complain to if I have a privacy complaint?

If you wish to complain about any breach or potential breach of our Privacy Policy or the National Privacy Principles, you should contact our Privacy Officer at or on 9263 5200. Alternatively, you may put your complaint in writing and post it to us addressed as follows:

DJ Carmichael Pty Limited
GPO Box Z5186

Your complaint will be considered within seven days and a response provided. We will use our best endeavours to resolve any complaint to your satisfaction. However, if you are unhappy with our response, you are entitled to contact the Office of the Privacy Commissioner who may investigate your complaint further.


If you have a complaint about the service provided to you, you should take the following steps.

  1. Contact your Adviser about your complaint.
  2. If your complaint is not satisfactorily resolved, please contact the Complaints Manager of DJ Carmichael in writing at:

DJ Carmichael Pty Limited
GPO Box Z5186

We will try to resolve your complaint quickly and fairly within 45 days. If the matter is complex, we may advise you that we will require more time to consider the matter and advise you when you will have our response. Your initial letter will be acknowledged within 3 business days.

If you are still not satisfied with the outcome, you have the right to complain in writing to the Financial Ombudsman Service. The complaint should be addressed to:

Financial Ombudsman Service
GPO Box 3, Melbourne Victoria, 3001
Telephone: 1300 78 08 08
Facsimile: (03) 9613 6399

The Australian Securities and Investments Commission (ASIC) also has a free call Infoline on 1300 300 630 which you may use to make a complaint and obtain information about your rights.