AGAAP - Australian Generally Accepted Accounting Principles
AIFRS – Australian equivalent of International Financial Reporting Standards
Aligned advisers - Advisers aligned to AXA are advisers working in independently owned financial practices licensed by one of AXA’s dealerships as agent. These practices use the brands of AXA’s Financial Planning Dealerships (AXA Financial Planning and Charter) and conduct business according to AXA’s Standards of Conduct and Standard Practices.
The aligned advisers are Authorised Representatives of AXA’s dealerships under Australian licensing regulations. AXA dealerships provide services such as research, approved product list, compliance audit, practice business development, commission administration, etc. Commissions paid by product manufacturers to the dealerships are paid to advisers after deduction of a portion corresponding to the provision of services by the dealerships. Given the open architecture environment, aligned advisers can also sell third party (ie non-AXA) products
APRA - Australian Prudential Regulatory Authority
Authorised Representative - Under Australian regulations, a financial adviser operating as agent of an entity licensed to provide financial advice and sell financial products, also known as a Financial Planning Dealership, is an Authorised Representative of the licensed entity
Deposit administration “DA” series - Closed book of voluntary contribution retirement business in Hong Kong
Financial planner - Professionals qualified to provide advice on personal financial matters. Financial planners recommend wealth management and financial protection strategies having regard to the personal and financial goals, needs and priorities of their clients. Financial planners also assist clients in implementing their recommendations and provide ongoing review of the progress of the plan. In Australia, financial planners must be licensed or Authorised Representatives of a licensed entity
Financial planning dealership - A licensed entity providing financial advice and selling financial products through Authorised Representatives (see Aligned advisers)
Funds under administration (FUA) - Accumulated retail wealth management funds for which administrative work is undertaken and an administration fee is received. The systems utilised include platforms and wraps and the types of administrative activity undertaken include cash receipting, allocation of funds to customers’ nominated investment portfolios as well as redemption of funds etc.
Funds under management (FUM) - Accumulated wealth management funds managed (usually) by companies with an inhouse investment management function and/or a multi manager service. These companies or fund managers receive an investment management fee from the customer in return for the provision of these investment management services
Honey - An investment-linked insurance plan offered by AXA Hong Kong which provides life insurance protection up to the age of 100 and provides exposure to global markets
Mandatory provident fund (MPF) - A legislated retirement/superannuation scheme introduced in 2000 where employers and self-employed people are required to contribute in Hong Kong
Master trust - An investment vehicle that enables individual investors to invest money into one or more underlying investments operated by professional managers
Mezzanine products - Wholesale product offerings which retail clients can access either through Master Trusts or individually. Mezzanine products require minimum investment transactions (eg. $100,000 minimum investment) but are accompanied by discount fees to reflect lower service requirements needed. Most business is generated through master trusts which manage the administration and service component
NL series - The largest block of inforce business in Hong Kong. The block is regular premium traditional life insurance, with implied investment guarantee of 4.25% pa, which reduces to 3.25% when allowing for other margins being achieved. This product was closed to new business in 1999
Non-aligned advisers - Non-aligned advisers are those advisers selling AXA products that are not aligned to AXA (see Aligned advisers). This category includes advisers aligned to other financial institutions or independent advisers operating under their own license
Occupational retirement scheme ordinance (ORSO) - Voluntary contribution retirement business in Hong Kong, now largely superseded by the introduction of the Mandatory Provident Fund
Plan for Life - Provides a market data collection and publication service (independently owned) in competition with Standard & Poors (S&P) (formerly known as ASSIRT). Plan for Life provide financial protection data in addition to the wealth management data produced by S&P. Plan for Life is increasingly used more by market analysts because its reporting is more easily understood and better represents the overall retail wealth management market than S&P
Portfolio administration system (PAS) - Provide a consolidated administration service through which clients can access a wide range of investments including superannuation, managed funds and direct shares. The service provides consolidated performance and taxation reporting on a regular basis enabling both the client and adviser to keep track of client investments
Smart series - A new, lower guarantee savings and protection product introduced in Hong Kong to replace the NL series
Summit - AXA’s brand for master trust (see Master trust)
Tied agents - Traditional agency model whereby commissioned agents sell AXA HK policies
Refer to detailed glossary of sharemarket terms at www.asx.com.au
