DISCLOSURE STATEMENT - Eric Dobbs

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 and the company operate the 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 and the company are remunerated.

This document was prepared on 27^th February 2008. Updated 27th July 2010

HOW WE OPERATE

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

1. Establishing the client-adviser relationship and scope of service,
2. Gathering client data and determining the clients goals and expectations,
3. Analysing and evaluating the client's financial position, cash and debt management, personal and business insurance. This process can sometimes incorporate minor estate planning, namely issue identification, but not advice on solutions.
4. Developing and presenting written advice,
5. Overseeing the implementation of the plan, and
6. Monitoring and reviewing the plan.

Not all clients require the full range of advice that can be provided, and the services we provide will depend on the client needs. If a client wishes to obtain limited advice or product implementation in any respect I will provide it, however it will be documented that the advice or transaction was limited in nature. Any recommendations will be clear and concise, with enough detail for you to make an informed decision about whether to act upon it.

I am able to recommend or place business with any of the financial institutions in New Zealand.

I maintain contractual relationships (agency agreements) with the following organisations:

• AMP
• Asteron
• AIG
• AXA
• Fidelity Life
• ING
• Sovereign
• Tower
• Southern Cross

We constantly critique and review our product suppliers to ensure our clients receive the best services available.

My contractual relationship with these financial institutions does NOT require me to place an agreed percentage of the business I do with any of them. Further, I do not have any agreements that require me to place any particular level of business with any supplier or financial organisation.

I have no other financial or other relationship with any other person or entity that would be reasonably likely to influence me in giving advice, except as described above.

PROFESSIONAL ASSOCIATION

At present there are three Professional Associations available, The Life Brokers Association, the Institute of Financial Advisers and Professional Advisers Association Due to recent changes within the Financial Services Industry I am waiting to discover which organisation is responding best to these changes prior to joining any.

I have had 34 years experience working in Local Government.

I have been a risk adviser since 2005 and give advice on all personal and business risk management, but not general insurance. I also give advice on KiwiSaver.

I am qualified to provide advice on all the products having attended workshops and courses and passing examinations to the level required by the product providers.

I keep my qualifications up-to-date through continuing education, consisting of seminars, technical briefings and conference workshops offered by various product providers.

DISCLOSURE OF CRIMINAL CONVICTIONS

I have not 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 and 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.

I provide advice in the following subject areas:

Risk Management Identifying and quantifying personal financial risks, considering solutions and ensuring sufficient cash or income is available in the event of death, disability or illness.

KiwiSaver Advising prospective clients on the New Zealand Governments KiwiSaver initiatives and implementation.

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

The products I would generally use (but are not limited to) are:

Life Insurance, trauma insurance, disability insurance, health insurance, Superannuation Plans and KiwiSaver.

REMUNERATION

The basis on which I am remunerated is set out below:

1. I receive a salary for my main role as an Administrator for Superannuation New Zealand/Christchurch Insurance Centre
2. For insurance business Christchurch Insurance Centre receives commissions for placement of business with companies for clients. This commission usually is in the form of an initial commission determined by the premium being paid, a bonus commission depending on the total volume of business done with that supplier in the course of a financial year, and renewal commission payable annually for every year the policy is in force. I receive a percentage of the initial commission dependant on performance. The rates of commission vary from company to company, and product to product, and I can disclose any such commission to you following product recommendation if you request.
3. Superannuation New Zealand may receive a Finders Fee for placement of the KiwiSaver business. In the case of a Sovereign KiwiSaver we receive a fee of $50 per KiwiSaver, Asteron $50 per KiwiSaver, AMP $50 per KiwiSaver & for a Fidelity KiwiSaver we receive a fee of $50 per KiwiSaver application completed. Superannuation New Zealand may also receive a trail commission for ongoing management of the investment or portfolio, which is typically a small percentage of the fund balance each year. In the case of Asteron, AMP & Fidelity we receive a trail of 0.25% per year. Sovereign trail is 0.20% Unless it is already stated within this Disclosure Statement you will be advised explicitly prior to product recommendation of the types of cost, fees or commission you will be liable for. In addition, this will be provided specifically in the form of a Statement of advice, incorporating such specific disclosure requirements at that time in accordance with the Securities Market Act 1988.
4. I may on limited occasions charge a fee for time or services tendered. If a fee basis is required by a client then that fee basis will be agreed to prior to engaging in the advice process. If a fee basis is requested then all initial investment brokerage will be rebated to the client in full.
5. In addition, Superannuation New Zealand/Christchurch Insurance Centre often receive benefits from the companies we recommend in the form of entertainment (e.g. occasional tickets to rugby matches, concerts, golf days etc), or office supplies (e.g. notepads, pens, diaries, etc), or subsidised professional development (e.g. below actual cost conference attendance, fee-subsidised training courses, etc). The value of these things is often unknown to me, or predictable. Subsidised stationery would typically be under $100 p.a. in actual value, subsidised professional development typically under $500 p.a. and entertainment typically between $500-$1,000 p.a.
6. Superannuation New Zealand/Christchurch Insurance Centre may receive free, or heavily discounted travel and/or corporate gifts, from companies we recommend depending on the total volume of business done with them. Most companies offer these types of trips and/or gifts and the value can be substantial. For example, a company may provide an International trip for two if we place large volumes of annual premium business with them. Such incentives may be perceived to create a conflict of interest on the part of the adviser, with the result that particular companies get recommended on this basis alone. We do not belief that this is the case for Superannuation New Zealand/Christchurch Insurance Centre. We do not place business with a particular company based on remuneration but at all times research the market to get the right product from the right provider for all of our clients.

MONEY HANDLING PROCEDURES

Occasionally I may receive money which is intended for an Investment or an Insurance product. All money received is forwarded to the chosen supplier that the business is placed with.

PROFESSIONAL INDEMNITY INSURANCE

In compliance with the Life Brokers Association (LBA) Code of Ethics, we have professional indemnity insurance which covers all areas of practice as listed above.

This insurance provides protection for clients for up to $2,000,000 p.a. for

· any error or omission;

· defamation;

· employee dishonesty; and

· includes full "prior acts" protection.

The minimum level of cover is in compliance with the LBA.

It is through Lumleys Insurance and is renewed annually. I have not had any claims under this insurance in my career.

DISPUTE RESOLUTION

In the first instance you can direct any complaints to Superannuation New Zealand/Christchurch Insurance Centre. Should you not be satisfied you can direct your complaint to the product supplier company involved, as each of them has an internal complaints handling process.

Alternatively, a dispute resolution facility is available by contacting The National Office of the LBA at www.lba.co.nz Should a complaint be lodged with the LBA then it will be recorded, referred to a Complaints Committee which will review the matter and determine the appropriate resolution, which may include referring the matter to the Disciplinary Committee. Full details of the complaints process can be obtained directly from the LBA

DISCLOSURE OF CRIMINAL CONVICTIONS

I have not 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 and 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.

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