This document is based on the normal template and does not contain

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This document is based on the normal template and does not contain ...

    Disclosure Statement

    David Peters

    Company/Trading Name: DNA Financial Services Limited

    Address: 34 Perry Street, Masterton

    Telephone: 06 378 2819

    Cellular phone: 0274 183 862

    Facsimile: 06 378 9166


    This document is current as at 1 March 2010.


In accordance with the provisions of the Securities Markets Act 1988 and the

    Securities Markets (Investment Advisers and Brokers) Regulations 2007 this

    Disclosure Statement provides you with information and answers to questions

    about me. It provides details about:

? the services I can provide;

    ? how I operate my business;

    ? my qualifications as an investment adviser;

    ? what investment products I am able to sell you;

    ? which financial organisations I am able to place business with; and

    ? how I am remunerated.

Experience and qualifications

I currently hold an annual certificate to practice as a Certified Financial Planner

    issued by the Institute of Financial Advisers.

I also currently hold the designation of Associate Life Underwriter as issued by

    the Institute of Financial Advisers.

I have worked in the financial services industry since 1990.

I joined Northco Insurance Brokers Limited in 2009.

I have held various managerial positions including Financial Adviser, Investment

    Manager, Trust Manager and Mobile Mortgage Manager.

I operate through my company DNA Financial Services Limited, which contracts

    to Northco Insurance Brokers Limited.

Relevant qualifications include:

Diploma of Business Studies endorsed in Personal Financial Planning from Massey

    University graduating in May 1999.

? Institute of Financial Advisers Page 1 of 8

Adviserlink course Introduction to Financial Planning with honours in August


Adviserlink course Business Financial Solutions with merit in 2009.

I keep my qualifications up-to-date by regularly attending training workshops

    and presentations to up skill himself and to keep abreast of industry trends.

Professional memberships

David Peters is a member of the following:

- Institute of Financial Advisers (IFA)

    - New Zealand Mortgage Brokers Association (NZMBA)

    - Insurance Brokers Association of New Zealand Incorporated (IBANZ)

As a condition of my membership I adhere to the IFA Code of Ethics and IFA

    Practice Standards in all facets of my practice.

How I operate

When we give advice we follow the internationally recognised six-step process:

    1. Establishing the client-adviser relationship,

    2. Gathering client data and determining your goals and expectations,

    3. Analysing and evaluating the client's financial position, cash and debt

    management, personal and business insurance, retirement planning,

    estate and tax, and/or investment needs,

    4. Developing and presenting our written advice,

    5. Overseeing the implementation of the plan, and

    6. Monitoring and reviewing the plan.

This can require a series of meetings with a prospective client before our advice

    is finalised. It also means we maintain a close ongoing relationship with clients,

    regularly reviewing progress and working with them over time to ensure their

    goals can be met.

The services we provide will depend on your needs. They may include any or all

    of those detailed in this Disclosure Statement.

Our advice will take account of your personal objectives, financial situation and

    needs. It will be clear and concise, with enough detail for you to make an

    informed decision about whether to act on it.

    ? Institute of Financial Advisers Page 2 of 8

Products on which advice is given

David Peters gives advice in relation to the following types of products:

Risk Products

• Life cover

    • Disability income protection

    • Trauma cover

    • Total & Permanent Disability • Business overheads cover • Mortgage protection insurance • Key person protection insurance

    • Health Insurance

Savings and Investment Products

• KiwiSaver

    • Managed Funds

    • Retirement Plans

    • Combined risk and savings • Term deposits and bank accounts

    • Cash management funds • Unit trusts

    • Group investment funds • Finance Company Debentures • Fixed Interest Capital Bonds


    • Home Loans

    • Debt Restructuring

    • Home Equity Release Loans

Professional indemnity insurance cover

In compliance with the Institute of Financial Advisers Code of Ethics, I have

    professional indemnity insurance which covers all my areas of practice as listed


This insurance provides protection for clients for:

? any error or omission;

    ? defamation;

    ? employee dishonesty; and

    ? includes full "prior acts" protection.

The minimum level of cover is in compliance with Institute of Financial Adviser's

    Membership By-laws.

The underwriter is Lumley General Insurance.

As with all insurance, this cover has limitations and is subject to certain

    exclusions and terms and conditions.

? Institute of Financial Advisers Page 3 of 8

Dispute resolution facilities

In the first instance you can direct any complaints to the product supplier

    company involved, as each of them has an internal complaints handling process.

    If a satisfactory resolution cannot be found then a dispute resolution facility is available by contacting the Institute of Financial Advisers at PO Box 5513

    Wellington 6011.

No Criminal Convictions


I have not, within the last five years, been:

    ? convicted of an offence under the Securities Markets Act 1988; the Investment Advisers (Disclosure) Act 1996 or the Securities Act 1978, or for a crime involving dishonesty;

    ? a director or principal officer of a body corporate that has committed an offence against the Securities Markets Act 1988, the Investment Advisers (Disclosure Act) 1996 or the Securities Act 1978 or for a crime involving dishonesty;

    ? adjudged bankrupt;

    ? prohibited by an Act or by a court from taking part in the management of a company or business;

    ? the subject of an adverse finding by a court in any proceeding taken against me in my professional capacity; or

    ? expelled from, or prohibited from being a member of, a professional body.

Northco Insurance Brokers Limited has not, within the last five years, been

    placed in statutory management or receivership.

Other interests and relationships

Northco Insurance Brokers Limited and David Peters have agency agreements for

    the sale of these products with the following suppliers:

A detailed agency agreement is required in order to place this business.

• Tower Health & Life

    • Asteron • Sovereign / ASB

    • AIG Life • ING Life • Fidelity • AXA New Zealand

    • Southern Cross

    • Accuro

Northco Insurance Brokers Limited or David Peters is not required to place any

    level of business with any supplier or financial organisation.

? Institute of Financial Advisers Page 4 of 8

Neither I nor an associate has any other financial or other relationship with any

    other person that would be reasonably likely to influence me in giving advice,

    except as described above.

The Securities Markets Act 1988 requires advisers to disclose any direct or

    indirect pecuniary or other interest that they may have in the giving of

    investment advice. In the case of David Peters I disclose that, I have no direct

    and indirect interests that could possibly have some relevance in providing

    investment advice to you.

Financial Planning areas of advice

I provide advice in the following subject areas:

    Cash/Debt Management Budgeting advice of income and household

    expenses, advice on the structure and interest rate

    management of any home lending.

    Risk Management Advice on using insurance products to cover risks

    associated with personal life’s and personal or business


    Investment Advice Advice on lump sum investments & regular savings.

    Retirement Planning Personal Superannuation Plans, KiwiSaver Investments,

    Lump Sum Investments, and Endowment and Whole of

    Life Insurance Policies.

    Estate Planning Advice on Wills, Family Trusts and Enduring Powers of

    Attorney. The implementation of these estate planning

    tools are referred to Solicitors or Trustee Companies if


    Taxation General Advice on taxation on personal income and

    minimising tax on investments income.

I only give advice in the particular subject areas set out above.

Procedures for handling investment money or investment property

The following system and procedure is used for receiving client funds:

    1. Wrap clients:

    ? The investment management service (wrap service) is provided via an

    independent custodian, which holds investments collectively on behalf of

    the client.

    ? All money that is to be invested (payable via cheque or direct bank

    transfers) is payable directly to the custodian of the wrap service as


? Institute of Financial Advisers Page 5 of 8

2. For clients whose investments are held outside a wrap service:

    ? Payments are made directly to the product provider by way of cheque

    crossed ‘not transferable account payee only’.

    ? An auditor is not employed as Northco Insurance Brokers Limited is not

    holding nor does it operate a trust account in relation to investment


    ? Neither Northco Insurance Brokers Limited nor David Peters in any

    circumstances use clients’ money or property for the benefit of any other

    person or ourselves. This applies to monies that are to be invested. Monies

    that are paid to us as fees are used to pay overheads and expenses and

    personal remuneration.

    3. Any Advice Fee charged (if applicable) is payable by way of cheque

    payable to DNA Financial Services Limited upon receipt of an invoice.

    The records Northco Insurance Brokers Limited keeps that relate to the

    investment of money are:

    a. A photocopy of the completed cheque and application form which is

    kept in the client’s personal file.

    b. The details of the investment are entered on to our portfolio reporting

    system immediately after an investment is made.

    c. We manually update the client’s personal file with details of the


    d. During normal working hours, all clients have access to their personal

    file should

    they wish to check the accuracy of the information contained therein.


I declare that this document when completed and signed, complies with all the

    requirements of the Securities Markets Act 1988.

Yours sincerely


    (David Peters - Adviser)

Client acknowledgment

I/We, _______________________________________________(Client’s Name)

    acknowledge receipt of the Disclosure Statement dated _________

    for David Peters of Northco Insurance Brokers Limited.

Signed: Date:

    Signed: Date:

    ? Institute of Financial Advisers Page 6 of 8

Fee & Remuneration schedule


    I do not charge a fee for the advice I provide to either clients of Northco Insurance Brokers Limited or David Peters.

    Initial consultation with non clients is not chargeable for the first hour. Though a fee for advice of non clients is chargeable at a rate of $250 plus GST per hour beyond this time.

    David Peters offers a full Financial Planning service, as part of this service a full Financial Plan will be provided in writing. The charge for this is $950 plus GST. Before any work is undertaken this fee will be disclosed and the client will have signed an agreement to this effect.

    David Peters also offers a Business Succession Planning service. A written plan is also available; the charge for this service is $950 plus GST. Before any work is undertaken this fee will be disclosed and the client will have signed an agreement to this effect.


    Remuneration received by Northco Insurance Brokers Limited and David Peters is remunerated in different ways as outlined below.

1. Brokerage for non wrap service clients

    Northco Insurance Brokers Limited is eligible to receive brokerage,

    bonuses and non monetary payments from product providers in relation to the sale of products.

2. Fees for wrap service clients

Type of Fee Maximum fee payable (as a % of amount


Entry Fee Up to 5%

    Adviser annual monitoring fee Up to 1% of funds under management

All fees will be deducted from the client’s Cash Transaction Account. The entry

    fee is deducted in full at the time the initial investment is made. The monitoring fee is deducted monthly.

    David Peters is remunerated by way of a share of new business commission and any bonus which is paid to him from product suppliers.

    Northco Insurance Brokers Limited and David Peters is eligible to participate in sales programmes run by insurance companies. These provide incentive rewards such as prizes and qualification for New Zealand and overseas conferences based on the volume of new business Northco Insurance Brokers Limited and David Peters places with an individual company.

? Institute of Financial Advisers Page 7 of 8

From time to time, David Peters may receive certain non-monetary benefits from

    product providers. This could include gratuities such as a bottle of wine at

    Christmas time, a free calendar, pen or book, the occasional luncheon, drinks

    after a briefing session, invitations to sporting events, etc.

    Product Product Max. initial Ongoing p.a. provider commission as commission as

    a % of each a % of total

    investment value of

    made investment Account management service *

    AXA Selected Portfolio 5.00 1.20


Managed funds

    Sovereign Select Wealth 5.00 1.00


    AXA AXA Personal 5.00 1.0



    Superannuation ING SIL Nil 0.25 Investment KiwiSaver


    AXA AXA Kiwisaver Nil 0.20 ASB Bank FirstChoice $50.00 one-off 0.20

    KiwiSaver fee

    Tower* KiwiPlan Nil 0.25 Asteron Asteron $50.00 one off 0.30

    KiwiSaver Fee

    FidelityLife Fidelity KiwiSaver $30.00 one off 0.25


Placement of business with other providers can be obtained.

* Tower pay a bonus based on volume of KiwiSaver business submitted.

    ? Institute of Financial Advisers Page 8 of 8

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