Disclosure Statement

As a financial adviser I have legal, professional and ethical obligations to you. The major legislation that governs how I provide services to my clients is as follows:

• Securities Markets Act 1998                
• The Consumer Guarantees Act 1993
• The Fair Trading Act 1986               
• The Privacy Act 1993
• The Human Rights Act 1993               
• Legislation applying to Superannuation
• The Insurance & Savings Ombudsman Scheme (ISO)
• Legislation applying to Life and Disability Insurance
• The NZ Life Offices Association Code of Business Practice
• Securities Markets (Investment Advisers and Brokers) Regulations 2007

EXPERIENCE

My career included time in the army, computer operations and development, IT and general management. For eight years prior to becoming a financial adviser in November 2005 I was an executive director of Beyond Imagination Global Ltd. This company developed the Photopages photo restoration method and was eventually sold to Japanese interests. I have worked in the insurance and investment industry as an intermediary since November 2005. Over this time I have provided insurance and investment options for existing and new clients.

RELEVANT QUALIFICATIONS

I have received accreditation from the various providers of financial products that we recommend. I have passed and attained the Certificate of Financial Services. This qualification included passes in the following papers: The Fundamentals and Processes of Financial Planning, New Zealand Financial Services Industry Essentials, Risk management, Business Financial Solutions, Advice Process 1, 2 & 3 and Practice Management

HOW I OPERATE

With your permission, the process I prefer to follow is to discuss with you any issues that are of concern to you in the areas that I am accredited to help you. I do this by asking questions, clarifying your responses and ensuring we both have the same understanding of your current concerns and your requirements. I follow a structured process and throughout our discussion I take notes which I utilise to provide you with a written summary.

REFERRALS

New business for me is generated primarily through referrals from existing customers. Insurance is an important foundation of any sound financial plan. Most of my clients are comfortable recommending my services to family, friends and business associates. At some stage during my meetings with you, I will ask you for names and contact details of people who you believe I could contact and help with the provision of good financial advice.

MEMBERSHIP OF RELEVANT PROFESSIONAL BODY OR BODIES

I am a member of the following professional body: The AXA Advisers’ Association and the Life Brokers’ Association

PROFESSIONAL INDEMNITY INSURANCE

I have liability insurance which includes the following covers: Professional Indemnity, Public Liability and Internet Liability. This insurance applies when I act as a life and general agent of any insurance or assurance company and/or intermediary, agent or consultant in the sale or negotiation of any financial product. As with all insurances, these covers have limitations and are subject to certain exclusions terms and conditions.

DISPUTE RESOLUTION FACILITIES

KHFS has operated in the financial services industry has not experienced any disputes and as such does not offer resolution facilities. However all of our providers have dispute resolution facilities offered through the Insurance and Savings Ombudsman Scheme.

CRIMINAL CONVICTIONS AND RELATED MATTERS

I have never been:

• convicted of an offence under the Securities Markets Act 1988, the Securities Act 1978, or of a crime involving dishonesty (as defined in section 2(1) of the Crimes Act 1961);
• A principal officer of a body corporate that committed an offence referred to in paragraph (a), when the body corporate committed the offence;
• Adjudicated 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 preceding that has been taken against me in my professional capacity;
• Expelled from, or prohibited from being a member of, a professional body.

FEES

At this stage KHFS does not charge a fee directly to the client for the provision of investment advice.

REMUNERATION

Should you invest in any of the products that I recommend to you, KHFS will or may receive fees or commission payments in connection with the giving of investment advice to you and on any transactions resulting from such investment advice.  These will vary depending on the products and the providers that you choose.  At the time of presenting you with my advice on any specific investments, I will provide you with a further disclosure statement detailing the relevant fees and commissions in relation to those specific investments.  For the purposes of this general disclosure statement, the possible fees and commissions that I will or may receive may range as follows:


PRODUCT TYPE                         COMMISSION TYPE     BAND OF COMMISSION
Superannuation Investments       Trail commission            0 -0.67%
Superannuation Investments       Up front fee                  0-5%
Liontamer Investments               Up front fee                  0-2%
Arcus Investment Management    Trail Commission            0 - 0.7%
ASB/Sovereign KiwiSaver             Trail Commission            0.2%
Fisher Funds KiwiSaver                Trail Commission            0.2%
AXA KiwiSaver                            Trail Commission            0.2%
Tower KiwiSaver                         Trail Commission            0.2%


As a result of the investment advice that I give to you or any transaction that result from that advice, I may receive the following:

• Training
• Conferences (possibly including offshore events)
• Sales promotions e.g. vouchers, bottles of wine, travel, invitations to events
• Business development allowances
• Bonuses upon reaching specific targets

INTERESTS AND RELATIONSHIPS

KHFS operate as insurance and investment agents, working on behalf of our clients and with the assistance of several insurance and investment providers. These include the following:

• AXA               
• TOWER           
• FIDELITY LIFE
• AIG (formerly AIA)           
• SOVEREIGN       
• Liontamer Investments
• Arcus Investment Management   
• ASTERON (formerly Royal Sun & Alliance)   

Our relationship with these providers is such that we receive commission derived from the business we place with them. In the future we may charge fees directly from our clients and refund any commission paid by the provider.

DETAILS OF SECURITIES ABOUT WHICH ADVICE IS GIVEN

I give investment advice about the following types of securities: Managed funds and KiwiSaver funds

ONGOING SERVICE

As a financial adviser, I am committed to providing regular comprehensive service to clients. I see this as essential to meet changing requirements arising from changing circumstances. Reading this material may have created some thoughts you wish to discuss or questions you wish to ask. Please note them here:

DISCLAIMER

Recommendations are based on my understanding of your current situation and what products and services may suit your circumstances. Although I will make every effort to provide you with an insurance recommendation, retirement plan and/or investment advice that I believe will best suit your stated situation, goals and plans, in no way do my recommendations, plans or advice purport to be a comprehensive financial plan. You should seek advice from your accountant or legal advisor prior to making a decision to act upon my advice. Neither Ken Holmes nor Ken Holmes Financial Services Ltd. take responsibility for any outcome of advice given.  Data provided, especially premiums and benefits, do change beyond my control periodically, therefore please be advised that each formal offer of advice has an expiry date and you should seek from me any revised information after that expiry date prior to making any decision.


CLIENT ACKNOLEDGEMENT
I / We Acknowledge receipt of this Disclosure Statement from Ken Holmes