Authorised Financial Adviser Disclosure Statement - Secondary Disclosure
From 1 July 2011 Authorised Financial Advisers must provide clients with a Disclosure Statement under the Financial Advisers Act 2008. The Disclosure Statement sets out
the mandatory information which must be provided to clients by law when they are providing a personalised service to a retail client. The Financial Advisers (Disclosure)
Regulations 2010 set out the form in which disclosure must be made.
Instructions
1
From 1 July 2011 authorised financial advisers who provide a personalised service to a retail client must provide the client with both primary and secondary
disclosure information.
2
Such information is required to be provided before the adviser provides the financial adviser service to the client, unless it is impractical to do so (in which case
the information must be provided as soon as practicable after providing the service). Financial advisers can provide disclosure verbally when providing
personalised services in respect of category 2 financial products by telephone subject to provision of certain information orally prior to giving advice.
3
Disclosure is made via two processes, primary and secondary disclosure. Please refer to the Primary Disclosure Statement Template for information as to the
primary disclosure required by authorised financial advisers
4
Secondary disclosure information, which is contained in your Secondary Disclosure Statement, contains specific information about the type of financial services to
be provided, any limitation on those services, the fees payable by the client, any material conflicts of interest, remuneration and any matters required to be
disclosed in accordance with the adviser's terms and conditions. Disclosure may be made in one or more disclosure statements. The form of secondary disclosure
information is set out in the Secondary Disclosure Statement Template attached.
5
When completing the Secondary Disclosure Statement Template, you need to complete the text in the left hand column, based on the instructions in red text in the
right hand column. Where there is information in blue text, you need to select one of the options. While no form is specified for secondary disclosure statements,
the statements marked with a * below are required under the Financial Advisers (Disclosure) Regulations 2010 and must be completed and not be deleted
(except as provided for in the completion notes). You are free to add additional information to your secondary disclosure statement (you are not allowed to do
so in your primary disclosure statement). The further statements marked with a # have been included in the Template to assist you in meeting your disclosure
obligations, including those under the Code of Professional Conduct for Authorised Financial Advisers.
Page 1 of 11
6
Your Secondary Disclosure Statement must be typed (not handwritten) and printed in a font and font size that are easily readable by most people. It must set
out the prescribed information clearly, concisely and in a manner to bring the information to the attention of the client. It must be identified prominently with a
clear heading that includes the term 'Disclosure Statement'.
7
Once you have completed your disclosure statement you need to completely delete these instructions, the completion notes in the right hand column, any
unnecessary remaining blue text in the left hand column and the headings on the table. Turn the page to portrait (Page layout  Orientation  Portrait) and
delete the table boxes.
8
Any Disclosure Statement provided to a client must be 'current'. It is also a requirement of the Code of Professional Conduct for Authorised Financial Advisers
that the information set out in a Disclosure Statement must be updated if there is any change in your circumstances that is material to the financial adviser services
you provide to your clients.
9
Your disclosure must not be misleading, deceptive or confusing at the time the disclosure is made.
10
An Authorised Financial Adviser must, whether by a single Secondary Disclosure Statement or by two or more such statements, disclose to the client all the
secondary disclosure information that applies to the adviser.
11
The Secondary Disclosure Statement must be provided to the client, delivered or sent to the client at the client's last known address or an address (including an
electronic address) specified by the client for that purpose.
12
As an Authorised Financial Adviser you must comply with any terms and conditions imposed by the Financial Markets Authority under the Financial Advisers Act
2008.
This Secondary Disclosure Statement Template is designed to assist you in meeting your regulatory disclosure obligations. Completing this disclosure statement template will
not guarantee, and Strictly Business Ltd does not guarantee, that you will meet your regulatory disclosure obligations. Meeting your regulatory disclosure obligations,
including compliance with the disclosure requirements of the Code of Professional Conduct for Authorised Financial Advisers, will require the additional application of
personal effort, attention, integrity and skill from you. You need to ensure you understand and comply with all of your adviser disclosure obligations under the Financial
Advisers Act 2008.
Page 2 of 11
Secondary Disclosure Statement (Authorised Financial Adviser)
Statement text
Completion notes
Complete and include everything in blue in this column
Delete this column once statement
has been completed
*
Name and registration number of Authorised Financial Adviser:
Insert the registration number issued
to you by the Registrar of Financial
Service Providers at the time you
were registered.
*
Address:
Insert your business address.
*
Trading name:
Insert your trading name if you have
one. Otherwise delete this line
completely.
*
Telephone number:
Insert your primary business
telephone number.
*
Fax number:
Insert your primary business fax
number.
*
Email address:
Insert your primary business email
address.
*
This disclosure statement was prepared on:
Insert the date on which you
prepared this disclosure statement.
# My experience and qualifications
Note: Although this information is not
required under the Financial Adviser
Page 3 of 11
(Disclosure) Regulations 2010, in
order to comply with the Code of
Professional Conduct for Authorised
Financial Advisers you need to
provide information about your
qualifications to provide the services
you provide.
# I have been a financial adviser since [year] and give advice on [subject areas].
Insert a brief description of your
experience as an financial adviser,
and name the subject areas in which
you specialise and/or the types of
products you give advice on.
If you are employed by a company,
you may wish to insert a small
amount of background information
about the company by whom you
are employed.
# My relevant qualifications include:
List any qualifications you hold that
are relevant to the giving of
financial advice and when those
qualifications were obtained (e.g.
National Certificate in Financial
Services (Financial Advice) (Level 5).
If you are studying currently, list
what the study is for and when it will
be completed.
# I keep my qualifications up-to-date through continuing education (consisting of seminars, technical briefings, product
Page 4 of 11
Explain how you keep your
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 consumers laws such as the Fair Trading Act.
qualifications listed above up-todate.
# 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 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.
Modify step 3 so it covers the areas
of advice that you provide.
This can require a series of meetings with a prospective client before our advice is finalised. It also means I 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 I provide will depend on your 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 practice.
I am also a member of:
Insert any other associations you are
a member of if applicable.
# Professional Indemnity Insurance
Include if applicable.
Page 5 of 11
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 underwriter is:
Insert insurer's name.
As with all insurance, this cover has limitations and is subject to certain exclusions and terms and conditions.
*
Services and products I provide
State which type or types of
financial adviser services you
provide - i.e. financial advice,
investment planning services and/or
discretionary investment
management services.
I provide the following types of financial adviser services:

[Financial advice

Discretionary investment management services

Investment planning services]
I provide advice in the following subject areas:
Provide information on all the subject
areas in which you provide advice.
[Cash/Debt Management]
[insert general information]
[Estate Planning]
[insert general information]
[Risk Management]
[insert general information]
Page 6 of 11
[Retirement Planning]
[insert general information]
[Taxation]
[insert general information]
[Investment Advice]
[insert general information]
The financial adviser services I provide are in relation to the following financial products:

Cash/Debt Management

Management and mortgage broking

Taxation planning

Personal risk (insurance) management

Fire and general insurance

Retirement planning

Investment planning

Comprehensive financial planning

Specialist building insurance planning
Add to or delete from this list as
appropriate.
You need to detail the financial
products in relation to which the
financial adviser services are
provided.
I also provide an investment planning service to clients if required.]
I only give advice in the particular subject areas set out above.
I only provide financial adviser services in respect of financial products provided by:
If you provide financial adviser
services only in respect of financial
products of a particular product
Page 7 of 11
provider or product providers, you
need to provide a statement to this
effect and the name of each of the
product providers concerned.
Otherwise delete this reference.
*
Fees
If you do not charge a fee for your
financial adviser services delete this
section and heading.
I charge a fee for the financial adviser service I provide to you.
The fee is:
State what type of fee you will
charge - fixed amount, hourly rate
or other (describe the fee).
The fees you will need to pay me for the services I provide are set out below:
Set out the basis on which the fees
will be charged.
I estimate the fees you will need to pay me will amount to:
Insert a reasonable fee estimate.
If it becomes apparent that this fee estimate is likely to be exceeded I will provide you with a further fee estimate at this time.
*
You will need to pay this fee to me by [date].
State when the client must pay the
fee by.
Other interests and relationships
In this section, you need to provide
details of every financial and other
interest, relationship, or association
(other than those disclosed under the
heading 'Services and products I
provide' above) you have that a
reasonable client would find
reasonably likely to materially
influence you in providing the
financial adviser service. This
information will be inserted as
Page 8 of 11
instructed below.
Note: In order to comply with the
Code of Professional Conduct for
Authorised Financial Advisers and the
IFA Code of Ethics you need to
transparently disclose and manage
any benefits you or any related
person will or may receive and any
conflicts of interest you may have in
relation to the services provided. You
must take reasonable steps to ensure
the client understands this
communication.
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 me in
providing the financial adviser service.
If you do not have any other
interests and relationships to disclose,
insert this statement and delete all
the information below.
Otherwise, delete this statement and
complete the information below.
I place business with each of:
List the name of any primary
financial organisation with whom you
have a contractual relationship and
the names of other financial
organisations.
[1] My contractual relationship with [name/s] requires me to place an agreed percentage of the business I generate with
[name/s].
OR
[2] I am not required to place any level of business with any supplier or financial organisation.
Page 9 of 11
Complete either of statement [1] or
[2].
You will need to select statement [1]
if you are contractually required to
place an agreed percentage of the
business you generate with a
particular organisation. If so, state
the name of that person in the space
provided.
Otherwise delete statement [1]
completely.
I also have relationships with the following persons:
State the names of any other
organisations that you have
relationships with, and describe the
nature and extent of those
relationships.
The nature and extent of my relationship with each of these organisations is:
I am associated with the following persons:
State the names of any associated
persons, and describe the nature and
extent of your association.
The nature and extent of my relationship with these persons is:
I do not have 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.
*
Remuneration
[I/my employer/my principal/another related person] will or may receive remuneration from the following sources:
Name:
Amount or rate: [See below for
examples]
Arrangements to manage any
conflict of interest arising:
Provide details of all remuneration
you, your employer and/or your
principal (or any other related
person) has, will or may receive from
a person other than the client if the
adviser provides a financial adviser
service. You do not need to disclose
remuneration that a reasonable
client would consider to be of such
an insignificant nature that it would
be unlikely to influence the adviser.
Remuneration means any commission,
fee or other benefit of advantage
(whether pecuniary or non-pecuniary
or direct or indirect) but does not
include salary or wages of a fixed
Page 10 of 11
amount.
[Examples of the types of remuneration you may need to disclose and how these could be described are:
*

Introductory commission - a gross commission amount payable by [product provider] for successful placement of new
business with them. This is generally a fixed percentage of [XX%] of the premium, loan or investment amount placed
with [product provider].

Renewal (or Service or Trail) commission - a fixed percentage of [XX%] of the ongoing (or in-force) premium, loan or
investment amount held with [product provider] for ongoing management of that business.

Production Bonus Commission - a fixed percentage amount to gross commission over-rider of [XX%] of the volume of
new business (or commission) generated through a [product provider].

Persistency Bonus - a fixed percentage gross commission over-rider of [XX%] determined by the overall business
quality, or persistency, held with [product provider].

Non-cash additional rewards - I receive free or heavily discounted travel and/or corporate gifts from [product
provider] if I recommend them as a product provider, depending the total volume of business done with [product
provider]. I may also receive benefits in the form of entertainment (e.g. rugby and concert tickets, golf days, etc),
subsidised professional development (e.g. below actual cost conference attendance, subsidised cost training courses,
etc), or office supplies (e.g. notepads, pens, etc). from [product provider].]
Other information about me and the services I provide
For each type of remuneration you
need to disclose, you also need to fill
out the table on the left stating for
each amount of remuneration:

Name of the person from
whom the remuneration has
been, or will or may be,
received; and

Amount or rate (to the extent
practicable) of the
remuneration; and

Details of any arrangements
you have made to manage
any conflict of interest
arising from the receipt, or
possible receipt, of the
remuneration.
If the Financial Markets Authority has
placed certain terms and conditions
on your authorisation when it was
granted that requires you to
disclosure certain information, or
additional information, you must
include this information here.
Otherwise, delete this line
completely.
Page 11 of 11