Provided by Flash Partners Pty Ltd (ABN 30 607 885 941)
Australian Financial Services Licence No. 480834
Issue Date: 24th May 2023

The PDS covers the Account, spot FX contracts and forward FX contracts which are issued by Flash Payments.

This PDS is an important document. It is intended to assist you to decide whether the financial products 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 any financial product. Nothing is intended to constitute investment, legal, tax, accounting or other professional advice and you should seek professional advice on whether the financial products discussed in this PDS 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 websitehttps://flash-payments.com/.

We are registered as an international remittance dealer by the Australian Transaction Reports and Analytics Center (AUSTRAC).

We hold an Australian Financial Services License (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 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 objectives, financial situation or needs. We can provide you with factual market information and general advice about the financial products discussed in this PDS.

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 General Terms form part of the non-cash payment facility we provide to you.

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. 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:

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 sections 4 and 5 of this PDS.

Access our services

You must hold an Account in order to access any of our services, including to enter 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 named on any official government lists created for the purposes of sanction laws 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 sections 4 and 5 of this PDS for costs incurred when entering into FX contracts.

We offer two types of FX contracts: spot FX contracts and forward FX contracts. This section is about spot FX contracts. Forward FX contracts are discussed at section 5 of this PDS.

A spot FX contract is an agreement to exchange one currency with another currency at an agreed effective exchange rate, where settlement occurs in two Business Days (T+2) or less (spot FX contract).

We exchange one currency for another at an agreed effective exchange rate and assist to facilitate the transfer of the foreign currency to the person you have nominated.

A spot FX Contract is entered into each time we exchange currency with you within the timeframe discussed above (T+2).The effective exchange rate is the rate at which you sell the currency to us and purchase the exchange currency from us. The effective exchange rate is affected by market fluctuations and other macro-economic factors as well as our margin.

We can also facilitate the transfer of the foreign currency that has been converted to the person you have nominated overseas for outbound instructions, or locally for inbound instructions.

Spot FX 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.

Outbound transfer

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

Once you have confirmed that you wish to proceed, and provided that we do not exercise our right to refuse to enter into the spot FX contract, the spot 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.

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-converted currency amount: 5,000.00 AUD

Exchange rate we have quoted: 0.5700 GBP per 1 AUD

Margin 1.50%

Effective exchange rate: 0.5615 GBP per 1 AUD

Transaction fee: 0.00 AUD

Recipient gets*: 2,807.5 GBP

* Note that settlement and receiving banks and other intermediaries 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 one currency is converted to another currency.

Inbound transfer

You may transfer funds located in an overseas account to the Account for the purposes of entering into a spot 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.

Key features

Key features of spot FX contracts are:

Significant benefits and risks

The significant benefits of spot FX contracts are:

Exchange of currency

Spot FX contracts enable you to exchange one currency for another at an agreed effective exchange rate.

Transfer of funds

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

The significant risks of spot FX contracts are:

Market risk

One currency is converted to another currency under a spot 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:

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.

Please refer to section 6 of this PDS for information about significant risks that apply to all FX contracts (including spot FX contracts).

Fees and costs

The revenue we generate is based on a margin. The margin is a difference between the wholesale exchange rate we obtain and the exchange rate we offer you. The margin may be impacted by a number of factors:

(a) More frequent trading sometimes reduces the margins;

(b) Highly liquid currency pairs typically have lower margins;

(c) Low market volatility may reduce margins; and

(d) Larger transactions may reduce margins.

In contrast:

(a) Infrequent trading may increase the margin;

(b) Exotic, less liquid currencies have higher margin;

(c) High market volatility increases the margin; and

(d) Smaller transactions increase the margin.

We will charge you a margin for every spot FX contract we enter into with you. The margin is not fixed, and depends on the variables listed above. The margin will be disclosed to you at the time you enter into a spot FX contract.

The margin will be payable to us in the pre-converted currency, and will be deducted by us before we exchange that currency to the other 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 spot FX contract, which will be disclosed to you before you confirm to enter into the spot FX contract. The transaction fee will be payable to us in the pre-converted currency, and will be deducted by us before we exchange that currency for the other currency. This will be deducted from the amount you receive, or if you elect to send the foreign currency overseas, the overseas recipient receives.

If we refuse to enter into a spot FX contract with you, we may also charge you an administration charge, which will be set out on our website at https://flash-payments.com/. You can obtain a free copy of information about this from us upon request. 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:

These charges will be automatically deducted from the funds which are returned to you, deposited in your Account or transferred to the 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 0.5615 GBP per 1 AUD which includes a margin of 1.50% (the exchange rate quoted is 0.5700 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 0.5700 GBP per 1 AUD. The effective exchange rate is 0.5615 GBP per 1 AUD which is equal to the exchange rate quoted (0.5700 GBP per 1 AUD) less the margin (1.50%). At this rate, the 5,000 AUD is converted to 2,807.5 GBP, which is calculated by 5,000 x 0.5615. Flash receives the margin in AUD which is 75 AUD.

A forward FX contract is an agreement to exchange one currency with another currency at an agreed effective exchange rate, where settlement occurs in more than two Business Days (>T+2) (forward FX contract).

Forward FX contracts are often used by businesses or individuals who would like to fix the exchange rate for settlement on a future date (of more than 3 Business Days and typically up to 2 years). This provides the ability to manage cash flow and exposure to currency movements.

The significant benefits of forward FX contracts

The following are some of the significant benefits of a forward FX contract:

The significant risks of forward FX contracts

The following are some of the significant risks of a forward FX contract:

Please refer to section 6 of this PDS for information about further significant risks that apply to all FX contracts (including forward contracts).

How do forward FX contracts work?

A forward FX contract can be for a fixed term or for delivery on a fixed date or period.

To enter into a forward FX contract, you will need to advise us of the following:

We will then quote you a forward FX rate and tell you the amount of the deposit you will need to pay to us in order to enter into the forward FX contract. The rate we quote will depend on matters such as your chosen Value Date, the current prevailing spot exchange rates, and the other currency involved in the transaction.

Provided that we do not exercise our right to refuse to enter into the forward FX contract, you will be bound to the transaction:

We will send you a confirmation notice for each transaction by email or by some other method.

You must ensure your Account holds cleared and settled funds at least equivalent to the agreed deposit amount before Flash Payments can agree to any forward FX contract.

You must ensure the cleared and settled balance of your Account is at least equivalent to the balance of the forward FX contract on the Value Date.

On receipt of your cleared and settled funds, we will make the currency conversion at the agreed foreign exchange rate on the Value Date, based on the forward exchange rate agreed to when the forward FX contract was entered into. We then arrange for the purchased currency to be sent on the Value Date to the beneficiary account you have nominated.

For example, you contact Flash Payments via telephone or email and advise that you need to secure USD 200,000 for the purchase of goods in exchange for AUD; however, you do not need these funds for another 6 months. Flash Payments advises that the current rate of exchange on a forward contract due in 6 months, inclusive of our margin, is 0.7482. Therefore, you would need to pay AUD 267,308.20 on the forward contract value date 6 months from now to complete this contract. If you find this acceptable, you would instruct Flash Payments to conclude the trade on your behalf. At this point, if Flash Payments has confirmed the booking then the contract has started. Flash Payments will then send you a forward contract as confirmation and this contract will have to be signed and returned the same Business Day. If it is not, the forward contract is subject to cancellation and any losses will be your responsibility.

Margin amounts for forward FX contracts

We may require you to pay a deposit (typically 10% of the forward FX contract) before entering into the transaction. Any such requirement will be assessed on a case by case basis, and we may consider your credit rating and history with us in deciding whether to request a deposit, and (if so) the amount.

We may also, in our sole discretion, require you to make a payment during the life of the forward FX contract prior to its maturity, regardless of whether we require you to pay an initial deposit. This is known as a “margin call”. Our Terms and Conditions set our more information about margin calls.

You will need to pay any margin amount required by us within 24 hours of our request. Failure to do so will constitute a default of the terms of the forward FX contract and means the contract will be terminated. You will be liable for any costs associated with the termination of the contract. This may include the forced liquidation of your position as well as additional losses, which can include your initial deposit and previous margin payments. It may also include any amount of the margin that you fail to pay in full to us.

We may require further margin amounts if there is an adverse movement in the relevant currency pair. Margin call amounts will vary depending on, but not limited to, notional value, currency pair and market volatility.

For example, if you agreed to buy USD 200,000 at a forward exchange rate of 0.7482 USD per AUD and the exchange rate has moved up to 0.8043 USD per AUD (equivalent to an increase of 7.5%), Flash Payments may ask you for additional collateral through a margin call. This is to ensure the collateral held by Flash Payments always covers any adverse movements in the exchange rate in the event where this forward exchange contract will need to be unwound. Flash Payments will not allow any forward exchange contracts that are not fully covered by the collateral held by Flash Payments .

If we refuse to enter into a forward FX contract with you or the terms of the offer that we provide to you lapse before you accept the same, we may also charge you an administration charge, which will be set out on our website at https://flash-payments.com/. You can obtain a free copy of information about this from us upon request. The administration charge will be deducted from the amount that is deducted from your Account.

Receiving and settlement banks which facilitate the transfer of currency to (for inbound transfers) or from (for outbound transfers) your Account may also 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:

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

The significant risks of all FX contracts

The following are some significant risks of all FX contracts we issue, including both spot FX contracts and forward FX contracts:

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 fulfill 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 overseas, delays in the subsequent transfer of funds to the overseas recipient.

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.

Other types of foreign exchange

There are different types of FX contracts that are available on the market, such as spot contracts (discussed in section 4 of this PDS) and forward contracts (discussed in section 5 of this PDS), value today contracts, value tomorrow contracts and foreign exchange options. You should ensure that a particular FX contract is appropriate to your circumstances and objectives.

How we handle your money

We will notify you of a nominated bank account that we operate, to which you should transfer your money. This account is owned by us but held in your name, but used solely as a segregated client account, separate to Flash Payments own operating accounts. We have processes in place to govern how that money is handled.

We have the right to retain any interest on funds deposited in our segregated client account. Individual client accounts are not separated from each other but are pooled together. The money is held in trust for you until you withdraw the money or otherwise provide us with a legal right to that money because of open FX contracts, outstanding fees owed to us or in such other circumstances as referred to in the General Terms.

There is a counterparty risk that you may lose some or all of your money if there is a deficiency in the designated segregated account. See below for more information concerning counterparty risk.

Counterparty risk

By opening an Account or entering into a FX contract, we both have contractual obligations to each other. Counterparty risk is the risk that the other party may default on their contractual obligations.

When you deposit funds into your Account, you will have an ongoing credit exposure to us until:

Tax implications

Using FX contracts can create tax implications. We are not authorised to provide you with taxation advice. You should discuss any taxation questions you may have with your tax advisor before using our products or services.

Taxation laws are complex. Generally, if you make a gain attributable to an exchange rate or price fluctuation then that part of the gain is included in your assessable income. Conversely, if you make a loss attributable to an exchange rate or price fluctuation then that part of the loss is deducted from your assessable income.

Cooling-off rights

No cooling-off rights apply to the products discussed in this PDS.

However, unless we have suspended the Account, you can withdraw the available funds at any time.

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 Account and the FX contracts are set out in the General Terms, which are incorporated by reference into this PDS and which can be accessed at https://flash-payments.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 a free electronic copy of the General Terms by contacting us. A summary of the key concepts contained in the General Terms is included in section 8 of this PDS.

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-payments.com

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 30 days after you make the initial complaint, you can contact the Australian Financial Complaints Authority (AFCA). We are a member of AFCA, which is an independent dispute resolution scheme.

AFCA’s details are:

Telephone: 1800 931 678

Website: www.afca.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.

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-payments.com/en/articles/1000013-privacy-policy

You may request a copy of our Privacy Policy in hard copy.

Our Privacy Policy sets out:

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:

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.

You can contact us at:

Email: support@flash-payments.com

Address: Level 26, 1 Bligh Street

Sydney NSW 2000

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.

Business Day means a day that is not a weekend, public holiday or bank holiday in New South Wales.

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

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

Trade Date means the date of entering into an FX contract and agreeing to the price with Flash Payments.

Value Date means the date upon which cleared and settled funds that are payable by you to us in relation to a forward FX contract must be available for Flash Payments to debit from your Account