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
E-mail: dnapeters@xtra.co.nz
This document is current as at 1 March 2010.
Introduction
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.
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Adviserlink course Introduction to Financial Planning with honours in August
2001.
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.
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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
Mortgages
• 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
above.
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.
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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
Individual
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.
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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
assets.
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
required.
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
applicable.
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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
business.
? 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
investment.
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.
Declaration
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:
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Fee & Remuneration schedule
Fees
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.
Renumberation
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
invested)
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.
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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
Solutions
Managed funds
Sovereign Select Wealth 5.00 1.00
Management
AXA AXA Personal 5.00 1.0
Superannuation
KiwiSaver
Superannuation ING SIL Nil 0.25 Investment KiwiSaver
Limited
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
Fee
Placement of business with other providers can be obtained.
* Tower pay a bonus based on volume of KiwiSaver business submitted.
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