Provided by Flash Partners Pty Ltd (ABN 30 607 885 941)
Australian Financial Services Licence No. 480834
Issue Date: 23 August 2018

1. Important Information

This Product Disclosure Statement (PDS) has been prepared by Flash Partners Pty Ltd ABN 30 607 885 941 (Flash, we, our, us). 

The date of this PDS is 23 August 2018. 

The PDS covers the Account and FX Contracts which are issued by Flash. 

The PDS has not been lodged with the Australian Securities and Investments Commission (ASIC) and does not need to be lodged with ASIC. ASIC takes no responsibility for the contents of the PDS. 

This PDS is an important document. It is intended to assist you to decide whether the Account and FX Contracts described in this PDS are appropriate for you. 

Any examples in this PDS are provided for informational purposes only, and are not a recommendation or endorsement by us to acquire an Account or FX Contract. The information in this PDS has been prepared without taking into account your personal circumstances, needs or objectives. Nothing is intended to constitute investment, legal, tax, accounting or other professional advice and you should seek professional advice on whether the Account and FX Contracts are appropriate for your particular circumstances.  

The PDS may only be used by persons who receive it in Australia. The information in this PDS does not constitute an offer in any jurisdiction other than Australia. The distribution of this PDS in jurisdictions outside Australia is limited and may be restricted by law. Persons who come into possession of this PDS who are not in Australia should seek advice on any such restrictions that apply. 

The information in this PDS is subject to change and is up to date at the date of this PDS. Where new information is materially adverse, we will issue a new PDS or supplementary PDS. However where the information is not materially adverse, we will not issue a new PDS or supplementary PDS but you will be able to find the updated information on our website www.flash-fx.com.

2.  About Flash

We are registered as an international remittance dealer by the Australian Transaction Reports and Analytics Centre (AUSTRAC) and are under the regulatory supervision of ASIC. 

We hold an Australian Financial Services Licence (AFSL) and are authorised to deal in, make a market in, and provide general financial product advice on foreign exchange contracts and non-cash payments to retail and wholesale clients. We buy and sell foreign exchange currency. 

We are not authorised under our AFSL to provide you with personal financial product advice which is advice that takes into account your personal circumstances or make investment recommendations of any kind. We can provide you with factual market information and information of a general nature, referred to as general advice, about the features of FX Contracts and the Account.

3. Online Account

To be able to enter into FX Contracts with us, you must establish and hold an online account with us (Account). You can only hold one Account at any given time. The Account will be the facility from which you will be able to benefit from our services, which includes depositing funds (including from overseas accounts) in the Account, using funds that have cleared in the Account to enter into FX Contracts and, if you elect, making foreign currency transfers to recipients overseas. The Account is a non-cash payment facility. 

To open an Account, you must enter the details we request on our website. Prior to opening the Account, you must ensure that you satisfy the eligibility criteria which are set out in the General Terms (Eligibility Criteria). You must also provide us with information or documents we request to verify your identity for the purposes of AML-CTF Laws and to otherwise comply with our legal obligations. 

Until we are satisfied with these checks and you have provided us with the information we require, the Account will be open but not activated which means that you will be able to view the Account but not deposit any funds into the Account or enter into FX Contracts. The Account will only be activated after we are satisfied with these checks. If we are not satisfied with the checks or consider that you are not a fit and proper person, we will not activate the Account. 

To access the Account, you will need to enter your username and password. Your username is the email address that you have nominated. You should always keep the password confidential and update it regularly. We recommend that you enable our two-factor authentication solution to increase the security of your Account.

The Account does not bear interest. The proceeds contained in the Account are held in a bank account nominated by us from time to time. Those proceeds are segregated from our funds and are otherwise managed in accordance with our obligations under the Corporations Act 2001 (Cth).

 

Key features 

The key feature of the Account is that it is the only facility from which our services can be accessed. These services include entering into FX Contracts with us and transferring foreign currency to overseas recipients. 

Other features of the Account are: 

  • it’s provided online and is compatible to desktop and mobile devices; 
  • it’s generally available at all times, subject to any breakdown or scheduled maintenance; 
  • it allows you to view transaction history, obtain quotes on foreign exchange rates or initiate a withdrawal or deposit of funds;  
  • it allows you to transfer funds from an overseas location to the Account. Once funds have cleared, you can enter into an FX Contract with us;
  • withdrawals from the Account can be initiated at any time; 
  • it allows you to view current and historic currency exchange rates; 
  • it allows you to change your password or any other personal details that are held on the Account; and 
  • no interest accrues on funds held in the Account. 

 

Significant benefits and risks

The significant benefits of the Account include: 


No costs to operate the Account

No costs are payable in respect of opening and holding the Account. However you will incur costs in entering into FX Contracts and transferring currency to (for inbound transfers) or from (for outbound transfers) the Account. See more in section 4 of this PDS. 


Access our services 

You must hold an Account in order to access any of our services, including toenter into a FX Contract with us and transfer foreign currency to an overseas recipient. You must also hold an Account if you wish to transfer funds from an overseas location to the Account for the purposes of entering into an FX Contract with us.


Flexibility and convenience

Subject to any breakdown or scheduled maintenance, the Account will be available at all times, which provides you with the flexibility to enter into FX Contracts and transfer currency to (for inbound transfers) or from (for outbound transfers) the Account at any time. 

The significant risks of the Account include: 


No interest

We are entitled to any interest that accrues on the balance held in your Account at any time. You receive no interest from the proceeds that are held in the Account.  


Unauthorised access 

There is a risk of unauthorised access to your Account. Under the General Terms which primarily govern the Account, you will be liable for any transactions conducted on your Account, even if they were not initiated or authorised by you. You should not provide your username or password to anyone, and you should regularly update your password. 


Cyber
security risk 

The Account is only available online. Thus, there is a risk that your Account may be hacked or accessed by an unauthorised person. We recommend that you enable our two-factor authentication solution to increase Account security and confidentiality.  

Like with most services that are provided online, there is also a risk that your device from which you access the Account will be exposed to a virus, worm, trojan horse or other harmful component.


Operational risk 

The Account’s availability is dependent on the internet and other IT infrastructure. While we have established business continuity plans and risk management systems, there is a risk that the Account will not be accessible due to a breakdown, cyber-attack, operational failure, scheduled maintenance or other similar causes.   


Eligibility risk 

There is a risk that you may fail to meet, or to continue to meet, the Eligibility Criteria which includes the requirement that you are not included on the DFAT Consolidated List which is published by the Australian Department of Foreign Affairs and Trade and are not subject to any counter-measure under the AML-CTF Laws. In these circumstances we may be required to undertake various actions, including suspending or terminating your Account. 


Legal risk 

By opening and holding an Account, you have agreed to comply with the Flash Terms. There is a risk that you may be unable to comply with the Flash Terms, in which case you will be in breach of those terms. If you breach the Flash Terms, we may enforce our rights against you, which may include terminating the Account or taking action to recover amounts of money that we have lost, incurred or are otherwise entitled to claim from you. 

 

Costs

There are no costs associated with acquiring the Account. However, see clause 4 of this PDS for costs incurred in entering into FX Contracts.

 

Tax implications 

No tax implications arise from acquiring or holding the Account. However there may be specific implications that are relevant to you and we suggest that you discuss these with your tax adviser. 

 

Cooling-off rights

No cooling-off rights apply to the Account. However, unless the Account has been suspended by us, you can withdraw funds from the Account at any time. Special conditions may apply to the withdrawal of any referral fees you receive under any referral program we may implement from time to time. Under the General Terms, we have the right to deduct any amount owing to us from the funds that we ultimately return to you. 

Legal terms and conditions 

The terms of the Account are set out in the General Terms, which can be accessed at https://help.flash-fx.com/legal/terms-and-conditions/general-terms-conditions. You should read and understand these terms before acquiring the Account as they primarily govern the legal relationship between you and us. You can request an electronic copy of the General Terms by contacting us. A summary of the key concepts contained in the General Terms is included in section 6.

4. FX Contracts

We exchange a pre-converted currency that you hold to a foreign currency at an agreed effective exchange rate and assist to facilitate the transfer of the foreign currency to the person you have nominated overseas. 

To exchange currency, we enter into a foreign exchange contract with you to exchange one currency (pre-converted currency) for another (foreign currency) at an effective exchange rate (FX Contract). An FX Contract is entered into each time we exchange currency with you. 

The effective exchange rate is the rate at which you sell the pre-converted currency to us and purchase the foreign currency from us. The effective exchange rate is affected by market fluctuations and other macro-economic factors. 

We can also facilitate the transfer of the foreign currency that has been converted to the person you have nominated overseas. 

Foreign exchange contracts are not entered into on an authorised exchange, such as the ASX. There is no official benchmark exchange rate for currency. The foreign exchange market is referred to as an over-the-counter market. 

To enter into a FX Contract and transfer foreign currency to a person overseas, you must: 

  1. access your Account at www.flash-fx.com
  2. ensure that there are sufficient funds in your Account which are equal to or greater than the pre-converted currency amount that you wish to convert. You cannot overdraw funds in the Account;
  3. enter the pre-converted currency amount that you wish to convert and designate the foreign currency to review the estimated effective exchange rate, which includes the margin that we will charge. You can change the pre-converted currency amount to see how that affects the estimated effective exchange rate and the amount of foreign currency that will be converted from the pre-converted currency amount. The estimated effective exchange rate is indicative only and the effective exchange rate (which is the exchange rate at which conversion will occur) will be confirmed at the quote stage. There are restrictions on the type and amounts (minimum and maximum) of currency that we will convert, which we will prescribe on our website from time to time; 
  4. where the foreign currency amount is to be sent to a person overseas, enter the required details of the overseas recipient, who is the person that will receive the foreign currency once it has been converted. You must ensure that you enter the correct details of the overseas recipient. If those details are incorrect, it may not be possible to recover those funds;
  5. review the quote we provide to you to enter into an FX Contract to convert the pre-converted currency amount that you have selected to the foreign currency you have selected. The quote will include the effective exchange rate, which is the exchange rate we have quoted less the margin. The effective exchange rate may be different to the estimated effective exchange rate; and
  6. confirm that you wish to proceed with the FX Contract. 

Once you have confirmed that you wish to proceed, and provided that we do not exercise our right to refuse to enter into the FX Contract, the FX Contract becomes immediately binding on you and us and we will immediately convert the pre-conversion currency amount to the foreign currency at the effective exchange rate. Where you have indicated that you wish to send the foreign currency amount overseas, we will be bound to immediately facilitate the transfer of the foreign currency to the overseas recipient that you have nominated. 

You may transfer funds located in an overseas account to the Account for the purposes of entering into an FX Contract. We can facilitate such transfer provided you comply with the procedures we prescribe from time to time.

We do not transfer currency (whether inbound or outbound), but merely facilitate the transfer and for this purpose we will choose the payments infrastructure and networks that we consider the most appropriate through which the transfer will be made. However we are not responsible or liable for any loss you incur in relation to transferring funds.

Example

You wish to exchange 5,000 AUD to GBP today and send those funds to Joe Flash. You hold an Account that contains at least 5,000 AUD. 

Pre-currency amount:                                  5,000.00 AUD

Exchange rate we have quoted:                 0.6090 GBP per 1 AUD

Margin                                                            1.50%

Effective exchange rate:                               0.5999 GBP per 1 AUD

Transaction fee:                                             0.00 AUD 

Recipient gets*:                                             2,999.48 GBP

* Note that settlement and receiving banks may charge administrative fees for facilitating the transfer of funds to the overseas recipient, which will be deducted from the amount the recipient receives. This has not been factored into the above example. 

In the example above, the effective exchange rate is the exchange rate we have quoted less the margin.  Note that the estimated exchange rate may be different from the effective exchange rate which is ultimately the rate at which the pre-converted currency is converted to foreign currency. 

 

Key features 

Key features of FX Contracts are:

  • subject to any breakdown or scheduled maintenance, they can be entered into at any time, online through the Account; 
  • they are usually settled immediately, and in any event as soon as reasonably practicable, after you confirm that you wish to enter into the FX Contract; 
  • by entering into the FX Contract with us, and if you elect, we will also assist to facilitate the transfer of the foreign currency to the overseas recipient. The foreign currency is processed and transferred separately to the FX Contract and we will not be responsible or liable for any loss you incur as a result of the transfer to the overseas recipient;
  • you may transfer funds that you hold in an overseas location to the Account for the purposes of entering into an FX Contract with us. We will assist to facilitate the transfer of these funds to the Account. These funds are processed and transferred separately to the FX Contract and we will not be responsible or liable for any loss you incur as a result of the transfer;
  • there are a wide range of currencies that can be exchanged. These are prescribed on our website at www.flash-fx.com
  • there will usually be minimum and maximum amounts that can be exchanged. These are prescribed on our website at www.flash-fx.com
  • the effective exchange rate will be displayed prior to the time you enter into the FX Contract; and 
  • the FX Contract is irreversible once you have confirmed that you wish to enter into it; 

 

Significant benefits and risks

The significant benefits of FX Contracts are:


Exchange of currency

FX Contracts enable you to exchange one currency (pre-converted currency) for another (foreign currency) at an agreed effective exchange rate. 


Transfer of funds 

By entering into a FX Contract, and if you elect, we will also help facilitate the transfer of the foreign currency which has been exchanged to the overseas recipient that you have nominated. The foreign currency is processed and transferred separately to the FX Contract through various payments infrastructure and networks that we consider are appropriate. 


The significant risks of FX Contracts are: 

Market risk 

Pre-converted currency is converted to foreign currency under a FX Contract at an agreed effective exchange rate, which fluctuates all the time. These fluctuations are caused by various market and macro-economic factors, which are beyond our control. There are various risks present including: 

  • the risk that the effective exchange rate may not be as favourable as it has been or may be in the future; 
  • the risk that the effective exchange rate may become more favourable after you have confirmed that you wish to enter into a FX Contract;  
  • the risk that the effective exchange rate may not be as favourable as the estimated effective exchange rate; or 
  • the risk that other foreign exchange providers are offering more favourable exchange rates than us. We do not warrant that the exchange rates we quote will match any particular benchmark rate or be as competitive as other rates offered by other institutions or dealers.

This means that the amount of foreign currency converted that you or the overseas recipient receive may not be as much as you or the recipient could have received if the above risks did not apply.


No cooling off

Once you have confirmed that you wish to enter into the FX Contract, you cannot reverse or cancel the FX Contract. 


Counter-party risk 

The FX Contracts are entered into over-the-counter which means that they are a contract between you and us. Counter-party risk is the risk that the other party may default on their contractual obligations. By entering into a FX Contract, we both have contractual obligations to each other. Performance of the FX Contract will depend on us fulfilling our obligations under the FX Contract. There is a risk that we will not be able to fulfil these obligations. You will have a credit exposure to us from the time you enter into the FX Contract and the time we convert the pre-converted currency to foreign currency. 


IT risk 

The ability to enter into a FX Contract depends on the Account’s availability, which in turn is dependent on the internet and other IT infrastructure. While we have established business continuity plans and risk management systems, there is a risk that the Account will not be accessible due to a breakdown, cyber-attack, operational failure, scheduled maintenance or other similar causes.


Operational risk 

Operational risk is the risk of delay or loss resulting from inadequate or failed technological systems or processes. We are reliant on our own processes and systems to fulfil our obligations under each FX Contract. Disruptions in those processes may lead to delays in us fulfilling our obligations under the FX Contracts, and delays in the settlement of the FX Contracts,  and where you wish to transfer foreign currency funds oversea, delays in the subsequent transfer of funds to the overseas recipient. 


Other types of foreign exchange

There are different types of foreign exchange contracts that are available on the market, such as forward contracts, value today contracts, value tomorrow contracts and foreign exchange swaps. You should ensure that the FX Contract is appropriate to your circumstances and objectives. 


Legal risk 

By entering into a FX Contract, you have agreed to comply with the Flash Terms. There is a risk that you may be unable to comply with the Flash Terms, in which case you will be in breach of those terms. If you breach the Flash Terms, we may enforce our rights against you, which may include taking action to recover amounts of money that we have lost, incurred or are otherwise entitled to claim from you.

 

Fees and costs 

We will charge you a margin for every FX Contract we enter into with you. The margin is not fixed, and depends on the amount that is subject to the FX Contract and other variables, such as the pre-converted and foreign currency types. The margin will be disclosed to you at the time you enter into an FX Contract.

The margin will be payable to us in the pre-converted currency, and will be deducted by us before we exchange the pre-converted currency to the foreign currency. This will be deducted from the amount you receive, or if you elect to send the foreign currency overseas, the overseas recipient receives. 

We may charge you a transaction fee in connection with the FX Contract, which will be disclosed to you before you confirm to enter into the FX Contract. The transaction fee will be payable to us in the pre-converted currency, and will be deducted by us before we exchange the pre-converted currency to the foreign currency. This will be deducted from the amount youreceive, or if you elect to send the foreign currency overseas, the overseas recipient receives.

If we refuse to enter into an FX Contract with you, we may also charge you an administration charge, which will be set out on our website at www.flash-fx.com. The administration charge will be deducted from the amount that is returned to your Account.

We do not charge you any other costs or fees. However receiving and settlement banks which facilitate the transfer of currency to (for inbound transfers) or from (for outbound transfers) your Account may charge their own additional fees and charges, which we may not be aware of and cannot prevent. For example, they may impose fees and charges: 

  • for facilitating the transfer of funds to, or from, the Account; or 
  • if they refuse to transfer funds to, or from, the Account because of incorrect payment details, regulatory requirements or any other valid reason.

These charges will be automatically deducted from the funds which are returned to you, deposited in your Account or transferred to the overseas recipient. 


Example

You wish to exchange 5,000 AUD to GBP today and send those funds to Joe Flash. You hold an Account that contains at least 5,000 AUD. You log in to the Account and the estimated effective exchange rate quoted is 0.5999 GBP per 1 AUD which includes a margin of 1.50% (the exchange rate quoted is 0.6090 GBP per 1 AUD). You proceed to obtaining a quote and the effective exchange rate is the same. You confirm that you wish to proceed. 

The exchange rate is 0.6090 GBP per 1 AUD. The effective exchange rate is 0.5999 GBP per 1 AUD which is equal to the exchange rate quoted (0.6090 GBP per 1 AUD) less the margin (1.50%).At this rate, the 5,000 AUD is converted to 2,999.48 GBP, which is calculated by 5,000 x 0.5999. Flash receives the margin in AUD which is 75 AUD. 

Receiving and settlement banks impose fees of 20 GBP to facilitate the transfer. These fees are deducted from the amount which is being transferred to Joe Flash. Joe Flash receives 2,979.48 GBP (2,999.48 GBP – 20 GBP).

 

Tax implications 

We are not aware of any significant tax implications that apply to FX Contracts. However there may be tax implications which arise as a result of your personal circumstances (including the purpose or nature of the FX Contract) and for this reason we recommend that you obtain independent professional taxation advice on the tax implications that may arise. 

 

Cooling-off rights

No cooling-off rights apply to FX Contracts. Once you have confirmed that you wish to enter into a FX Contract, you cannot reverse or cancel the FX Contract.  

 

Legal terms and conditions 

The terms of the FX Contracts are set out in the General Terms, which can be accessed at www.flash-fx.com. You should read and understand these terms before entering into a FX Contract as they primarily govern the legal relationship between you and us. You can request an electronic copy of the General Terms by contacting us. A summary of the key concepts contained in the General Terms is included in section 6 of this PDS.

5.Complaints 

We are committed to providing you with exceptional services. However please follow the procedure set out below if you have a complaint: 

Step 1

Please contact us:  

Mail:             Level 26, 1 Bligh Street

                     Sydney, NSW 2000

Email:           support@flash-fx.com.au 

Please explain the complaint in detail. We will review the complaint and, if possible, will seek to resolve it immediately. 

If you are happy with the outcome, you do not need to do anything further. However if you are not happy with the outcome, please contact us and our compliance officer will review your complaint and the proposed resolution. The compliance officer will contact you with his or her decision.    

Step 2

If you are not satisfied with the decision of the compliance officer or we do not respond to you within 45 days after you make the initial complaint, you can contact the Financial Ombudsman Service (FOS). We are a member of FOS, which is an independent dispute resolution scheme. You can only complain to FOS once you have followed the procedure above. 

FOS’ details are: 

Telephone:       1800 367 287

Website:           www.fos.org.au

Mail:                  GPO Box 3

                          Melbourne VIC 3001


You may also call ASIC’s Infoline on 1300 300 630 to make a complaint and obtain information about your rights.

6.Applicable laws

Privacy 

We are committed to complying with the Australian Privacy Principles established under the Privacy Act. Our Privacy Policy sets out detailed information about how, why and when personal information is collected, disclosed, used, stored and otherwise handled by us. Our Privacy Policy is available at https://help.flash-fx.com/legal/privacy/privacy-policy. You may request a copy of our Privacy Policy in hard copy.

Our Privacy Policy sets out:

  • the purposes for which we collect your personal information;
  • the consequences if you don’t provide your personal information to us; 
  • the third parties to which we disclose your personal information;
  • how to access and seek correction of your personal information; 
  • how to complain about a breach of our obligations in respect of your personal information and how we will deal with such a complaint; and
  • whether your personal information is likely to be disclosed by us to overseas entities and in which countries these entities reside.

 

AML-CTF Laws

The AML-CTF Laws require us to collect and verify certain identification information about you. We will collect personal information from third parties to verify your identity for this purpose as well. 

We may be required to disclose certain information about you to AUSTRAC. We may not be permitted to tell you when this occurs. We may also be prohibited from fulfilling our obligations to you, such as finalising an FX Contract or helping facilitate an overseas transfer of foreign currency. We may also be required by the AML-CTF Laws to delay, suspend or terminate your Account and any FX Contracts that you have entered into with us. 

 

General Terms

The General Terms primarily govern your relationship with us in relation to the Account and FX Contracts. Key concepts addressed in the General Terms are:  

  • when you can open an Account and enter into FX Contracts; 
  • our rights to terminate or suspend the Account; 
  • our rights to ask you for information and when we will not activate the Account; 
  • your liability for unauthorised transactions conducted on the Account;
  • how you can deposit and withdraw funds from the Account; 
  • how you can enter into an FX Contract, and where you elect, transfer foreign currency overseas and our responsibility and liability with respect to these services;
  • how you can transfer funds from an overseas location to the Account for the purposes of entering into an FX Contract and our responsibility and liability with respect to these services; 
  • the rules of the FX Contract and our involvement in facilitating the transfer of funds to, and from, the Account;
  • our right to refuse to enter into an FX Contract; 
  • your obligations with respect to use of the Account and FX Contracts; 
  • the fees and costs that you may be charged to enter into an FX Contract; 
  • the fees and costs that you may be charged to transfer currency to, and from, the Account; 
  • intellectual property rights; 
  • representations and warranties that you give to us; 
  • representations and warranties that we give to you, including representations and warranties that we have specifically excluded; 
  • our limitation of liability with respect to your use of our services; and 
  • the circumstances where you indemnify and release us from liability and claims. 

The above dot points are a summary of the key terms in the General Terms and not a substitution for the General Terms. We strongly encourage you to read and understand the General Terms and other Flash Terms before acquiring the Account and any FX Contract.

Referral Program Terms 

We may implement a referral program which entitles customers to receive a referral fee if they refer others to establish an Account. Eligibility criteria, the referral fee and restrictions on how the referral fee can be redeemed are contained in the Referral Program Terms. We encourage you to read and understand the Referral Program Terms before participating in any referral program.
  

7. Contact us

You can contact us at:

Email:             support@flash-fx.com 

Address:         Level 26, 1 Bligh Street
                        Sydney NSW 2000

8. Definitions 

AML-CTF Laws means the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No.1) and any associated regulations or amendments.

Flash Terms means the General Terms, Website Terms or Privacy Policy which may be amended from time to time and available at www.flash-fx.com

Privacy Act means the Privacy Act 1988 (Cth) and any associated regulations or amendments.

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