Disclosure Statement: Secondary - strategicfp.co.nz · Disclosure Statement: Secondary ... The...

Disclosure Statement: Secondary

Michael Alan Taylor Financial Services Provider Register FSP2481

Adviser with: Strategic Financial Planning Ltd Financial Service Provider No FSP 26383

Strategic Financial Planning Ltd | Disclosure Documents 1

Disclosure Documents

Disclosure Documents Disclosure documents tell you what you need to know about your adviser, Michael Taylor, and Strategic Financial Planning Limited.

The Primary Disclosure Document (which you must have prior to the Secondary) follows a tightly prescribed format required by the legislation.

The Secondary Disclosure Document contains much more information and allows us to advise you on:

Our experience and qualifications Services and products that we provide Methods we use to ensure you get high quality advice Methods we use to protect your money Details of our fee structure

2 Secondary Disclosure Statement (Authorised Financial Adviser) | Strategic Financial Planning Ltd


Secondary Disclosure Statement (Authorised Financial Adviser) Name and registration number of Authorised Financial Adviser: Michael Alan Taylor, FSP2481

Address: 31 Kiteroa Place, Cashmere, Christchurch.

Telephone number: 03 377-8046

Fax number: 03 377-8047

Email address: [email protected]

This disclosure statement was revised on: 1 August 2016

My Experience and Qualifications

I have been a financial adviser since 1989, giving advice on Personal Financial Planning and Investment Advice and specialising in Investment Portfolio Management.

My relevant qualifications include: Diploma in Business Studies (Personal Financial Planning), Certified Financial Planner (CFP), Authorised Financial Adviser (AFA).

I keep my qualifications up-to-date through continuing education (consisting of seminars, technical briefings, product accreditation and conference workshops) for a minimum of twenty hours per year and sixty hours of continuing professional development every two years. This includes keeping up-to-date with changes to the Code of Professional Conduct for Authorised Financial Advisers and relevant consumer laws such as the Fair Trading Act.

How I operate

When I give advice I 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 retirement planning, estate and tax, and/or investment needs.

4. Developing and presenting my written advice, 5. Overseeing the implementation of the plan, and 6. Monitoring and reviewing the plan.

Strategic Financial Planning Ltd | Secondary Disclosure Statement (Authorised Financial Adviser) 3


This can require a series of interactions with a prospective client before my advice is finalised. It also means I maintain a close on-going relationship with clients, regularly reviewing progress and working with them over time to ensure their goals can be met.

The services I provide will depend on clients needs. They may include any or all of those detailed in this Disclosure Statement.

My 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.

Professional Bodies

I am a member of the Institute of Financial Advisers and, as a condition of my membership, I adhere to the IFA Code of Ethics and IFA Practice Standards in all facets of my advisory capacity.

I am also a member of:

The Society of Financial Advisers (SIFA); and The Professional Advisers Association (PAA).

Professional Indemnity Insurance

I have professional indemnity insurance which covers all areas in which I provide financial advice.

This insurance provides protection for clients for:

any error or omission; defamation; employee dishonesty; and includes full "prior acts" protection.

The underwriter is: Lumley

As with all insurance, this cover has limitations and is subject to certain exclusions and terms and conditions.

Services that I provide

I provide the following types of financial adviser services:

Financial advice Non Discretionary investment management services Investment planning services



I provide advice in the following subject areas:

Cash/Debt Management

With Cash I seek to optimise the use of surplus income and bring clarity between Necessary Expenditure and Discretionary Expenditure. With Debt I seek to both identify and optimise the structures and reduce costs where possible.

Estate Planning I review current arrangements and identify any areas that have not been addressed. If Legal input is required I refer you to a specialist.

Risk Management

I seek to identify your exposure to “risk events” (Death, Loss of Income, Health Issues) and assess the consequences for you. I will recommend solutions.

Retirement Planning

As part of your Goal Planning I will calculate what is required to achieve your retirement goal and recommend strategies to achieve this.

Taxation Whilst not a tax specialist I will identify tax efficient strategies where available and when requested will work alongside your accountant.

Investment Advice

I design portfolios in the context of your personal needs

The financial adviser services I provide are not directly aligned with any products and I am under no third party obligation when recommending a solution and can offer a 100% independent service. I use the Funds New Zealand Wrap to hold client’s investments and aggregate all client information on OMNIMax Financial Planning Software Platform to identify, strategise, implement, and monitor the following:

Cash/Debt Management: Personal risk (insurance) management Retirement Planning Investment Planning Comprehensive Financial Planning



Products On Which I Advise: I give advice on the following products:

Investment Products (including):

Cash Accounts Bonds, Debentures, Term Deposits, and Life Bonds NZ Unit Trusts, Group Investment Funds, and PIE’s Exchange Traded Funds, Shares, and Investment Trusts Dimensional Smart Beta Funds Synergy Portfolios with DIMS within the Portfolio. Life Time Income Fund (Annuity) KiwiSaver Funds

Insurance Products (including):

Life Insurance Trauma and Critical Care Cover Income Protection Health Insurance Life Time Income Annuity

Other Products:

Mortgages Home Equity Release Products

Handling Of Client Monies:

I do not handle client monies and do not operate a Trust Account. All investment cheques or payments are made payable directly to the product supplier, the trustee, fund manager or organisation involved. Proceeds from the sale or returns of all investments will be paid directly to your portfolio cash account.

Agency, Power Of Attorney Arrangements, and Custodial Services:

I use the custodial services of FNZ Ltd which an investment platform / wrap platform technology provider to major financial institutions in the financial services and wealth management sectors

I DO NOT hold Power of Attorney and clients authorise all transactions.

For any investments not held with FNZ they are held directly in the client’s name and a digital record of all documentation is retained by Strategic Financial Planning Ltd which is available to clients. Strategic Financial Planning Ltd acts as the mailing address.



Fees

I charge a fee for the financial adviser service I provide to you. If you are a new client or an existing client and the service required is not detailed in the schedules below I will provide an estimate and if this is likely to be exceeded notify you.

Fees are required to be paid on invoice/review and the initial Plan Fee paid on presentation of the plan

Other Interests and Relationships

I do not have any preferential terms (other than those readily offered to other market participants) or production performance agreements with any particular product provider. I do not have any commercial relationships or contractual arrangements that present any particular conflicts of interest to consumers generally which would be reasonably likely to materially influence us in providing the financial adviser service.

As a Director and shareholder in Strategic Financial Planning Ltd I will benefit in the success of the company.

Research Relationships

Strategic Financial Planning Ltd pays for and utilises research from the following sources:

Morningstar Research Ltd Dimensional Consilium IRG Mercer’s Consulting Portfolio Construction Conferences TrustNet

I also source a wide range of other research directly and indirectly from financial institutions, ratings agencies, and other research providers. All Research resources are assumed to have possibility of a bias so following a review of all research sources a view is taken based on our in house experience and judgment. We believe, from experience, a healthy cynicism is important.

FNZ Nominee Account & Share Buy/ Sell

Strategic Financial Planning Ltd uses FNZ to buy / sell /hold most investments. With shares we have negotiated competitive terms for transactions. Brokerage, stamp duty (incurred for offshore transactions) and other broker charges are on-charged to clients at cost. Strategic’s transaction administrative costs are covered in the Administration Fee.



No Brokerage is received and if paid is credited to the client’s account.

Strategic Financial Planning receives no benefits from transaction volumes ensuring 100% focus on clients best interests,

An annual custodial fee is applied to holdings in FNZ of 0.25% , which is tax deducible to most clients and from 1st April 2017 will be partially offset by a reduction of 0.15% from the SFP Administration Fee

Remuneration

I receive a salary from Strategic Financial Planning Limited and in addition I will benefit as a shareholder.

Fee Schedule Indicative pricing. Actual will be quoted when full details / complexity is established.

Basic Financial Plan From $500 +GST

Comprehensive Financial Plan From $1,500 +GST

Review of Existing Investment Portfolio From $750 +GST

Implementation of Financial Plan As detailed in table below for Placement/Establishment

An hourly charge for financial planning and administration work:

Placement/Establishment Fees

Authorised Financial Adviser $250 +GST /hr.

All Other Work $100 +GST/hr.

A percentage based asset charge for placement of funds:

Placement/Establishment Fees (Exempt from GST)

On First $500,000 3.0%

On Next $500,000 2.0%

On Next $500,000 1.0%

More than $1,500,000 0.5%

Regular Savings: Placement commissions will offset Placement Fees



On-going Management

Transparent objectivity. Strategic Financial Planning Ltd is a 100% fee based model with any / all trail commissions rebated and offset against your Portfolio Administration Fees. This secures a 100% transparent process and avoids any ambiguity over “motive” when placing funds.

Portfolio Advisory Fees: Calculated on the monthly average value of the portfolio and debited on a monthly basis. This includes all Advice by an Authorised Financial Adviser relating to:

Maintenance of investments in line with your Goals, Objectives and Investor Profile.

Tactical adjustments to the portfolio reflecting current economic conditions at review intervals.

Rebalancing assets in line with Investor Profile (Asset Allocation).

Harvesting gains and limiting exposures.

Managing income drawdown’s, sustainability and forward income planning.

Reviewing the appropriateness of individual portfolio assets.

Monitoring specific portfolio liquidity, currency exposure, and leverage.

Online Goal Monitoring

Facilitating client’s cash withdrawals.

Financial Markets Authority Compliance obligations.

Administration Fees: Calculated on the average value of the portfolio and debited on a monthly basis. This covers all administration of your portfolio including.

Confirming all portfolio transactions.

Direct Shares Purchase / Sells and Dividend tracking.

Monitoring Brokers Nominee Accounts for International Shares

Acting as custodial address and collating all portfolio activity.

Maintaining accurate investment records within the Portfolio Management platform



Online version of the Annual Consolidation tax report including FIF calculations.

Digital Archiving when required

Client Support Line

Online Access to Portfolio information.

Processing of all paperwork relating to investment transactions.

Discount transaction rates for Direct Shares & Bonds

Online version of the annual consolidated tax report including FIF calculations.

Facilitating cash withdrawals and auto payments on client’s instructions.

Financial Markets Authority Compliance obligations.

Anti Money Laundering & Counter-Terrorism Compliance. FATCA Reporting and Compliance

Administration & Advisory Fees Our understanding is, that for NZ residents, these Fees are tax deductible & only Advisory fees have GST.

Administration Fee 0.5% per annum debited monthly. Funds held on the FNZ Platform will receive a 0.15% (0.35%) offset from April 2017

Advisory Fee I stepped at the following rates (Minimum Fee of $500 per annum)

Up to $150,000 1.5% per annum debited monthly

$150,000 to $400,000 1.0% per annum debited monthly

$400,000 to $999,000 0.8% per annum debited monthly

From $1,000,000 0.4% per annum debited monthly



Risk Management Fees.

Where possible, Strategic Financial Planning Ltd seeks to apply an innovative policy, applying a fee for the Implementation of Risk Solutions (Family, Income Projection, and Trauma Insurance.) The fee applied is 20% of savings on the commission free policy premiums over a 10-year period with a minimum placement fee of $750 per contract. A full Insurance Plan must be in place to secure the above.

If the above is not practical an Advisory Hourly rate will be applied with minimum base fee of $750 applied.

Significant savings can usually be secured on the above basis over the life of the policy.

We believe this innovative fee approach is both cost effective and objective.

Providers Commission Schedules

Strategic Financial Planning Ltd Independent status requires that it should be free of any payment from any party other than the client and if a commission is received it must be passed through to the client’s account.

Signed:

Michael Taylor Dip Business Studies (Personal Financial Planning) CFPCM AFA

Disclosure Statement: Secondary - strategicfp.co.nz · Disclosure Statement: Secondary ... The...

Documents

Transcript of Disclosure Statement: Secondary - strategicfp.co.nz · Disclosure Statement: Secondary ... The...