UBS Wealth Management Financial Services Guide

Transcription

1 Financial Services Guide Australia Ltd ABN AFS Licence No UBS Securities Australia Ltd ABN AFS Licence No UBS AG, Australia Branch ARBN AFS Licence No Australia Nominees Pty Ltd ABN AFS Licence No May 2014

2 Financial Services Guide Part One The Issuers of this Guide This Financial Services Guide (FSG) is issued by Australia Ltd ( ), UBS Securities Australia Ltd (UBS Securities), UBS AG, Australia Branch (UBS AG), and Australia Nominees Pty Ltd (UBS Nominees) collectively and individually referred to as us, we, our. holds AFS Licence No UBS Securities holds AFS Licence No UBS AG holds AFS Licence No UBS Nominees holds AFS Licence No The purpose and content of this FSG This FSG is provided to give you key information about the types of financial services we will or are likely to provide to you. The FSG is intended to assist you in deciding whether to use any of the services offered. Part One includes information about the financial services and financial products we can provide. Part Two provides information about: remuneration that may be paid to us and other relevant persons in relation to the services offered; and our relationships and associations. Part Three contains other important information relevant to the financial services we provide including information about: how you can give us instructions; your privacy and how we protect your personal information; how we handle complaints; our compensation arrangements; and our contact details. Part Four provides information about the Discretionary Portfolio (DPM) service offered by. Other important documents You may also receive other important documents from us such as a Statement of Advice (SoA), a Product Disclosure Statement (PDS) or our Best Execution arrangements. SoA A SoA is a written record of personal financial advice we give to you. Personal financial advice is advice that we provide after taking into account your personal objectives, financial situation and needs. A SoA that we give you will include a statement of our advice, the basis for that advice, and information about the remuneration and other benefits that we may receive in connection with the advice, and interests, relationships or associations that may influence us in giving the advice. In certain circumstances where a SoA is not provided, for example, where further advice is provided to you after we have given you a SoA, we may prepare a Record of Advice (RoA) rather than a SoA to record the further advice. You may request a copy of the RoA by contacting us by telephone, by or in writing at any time up to seven years from the date on which the advice was given. PDS A PDS is a type of offer document that describes a financial product. The PDS will contain details about the particular product, including the benefits of the product, any significant risk associated with holding the product, the cost of the product, and (in the case of a product that will or may generate a return) information about any commission or other similar payments that may impact the amount of the returns payable to you. The purpose of a PDS is to ensure you are informed about the financial product and to help you to compare financial products issued by different providers. We will give you a PDS if we make a recommendation to you to acquire a financial product or issue or offer to arrange the issue of a financial product to you, where a PDS is available for the product. We are not always required to give you a PDS, for example, we do not have to provide one where you already have a current PDS in relation to the relevant financial product, where you hold a financial product of the same kind and you have access to current information, or where the offer is made under a distribution reinvestment plan or switching facility. A prospectus may be issued instead of a PDS for some financial products for example shares and debentures. Best Execution arrangements We must take reasonable steps to obtain the best outcome (or best execution ) for our clients when handling and executing client orders. meets its best execution obligations by relying on the best execution arrangements of UBS Securities. Information about UBS Securities best execution arrangements may be obtained from your UBS client adviser and is available on the website The document Summary of Best Execution Arrangements contains important information about how we execute your orders through a Relevant Exchange (such as ASX or Chi-X) or otherwise. You should read the document summarising these arrangements carefully before deciding whether you wish to use the services that we offer. On whose behalf do we act? In providing financial services to you, we act on our own behalf except where we specify that we act on your behalf. 2

3 Who will give you advice? UBS client advisers may give you advice. UBS client advisers are representatives of either or UBS AG. As such either or UBS AG will be responsible for the advice that UBS client advisers provide to you. will be responsible for: providing financial product advice services including Wealth Advisory and Asset Advisory services, which cover the provision of financial product advice to you and dealing or arranging deals in financial products on your behalf; providing financial planning services to clients; providing domestic and international custody services; operating the Investor Directed Portfolio Service (IDPS) known as the Service; and providing the DPM service. More information about the terms and conditions on which these services are provided is set out in our Client Agreement. More information about the Service can be obtained from the IDPS Guide. is a market participant of ASX Limited, a direct participant of ASX Clear Pty Limited and an account participant of CHESS (the settlement facility operated by ASX Settlement Pty Limited). It is also a participant of Austraclear Limited. UBS AG will be responsible for providing you with any financial product advice relating to foreign exchange contracts. As such, UBS AG will be responsible for its client advisers advice to you relating to foreign exchange contracts. Under the UBS AG Australian financial services licence, UBS client advisers may also provide you with financial product advice relating to deposit, payment and derivative products. Non-advisory services UBS Securities does not provide financial product advice. UBS Securities has been engaged by to provide dealing (execution, clearing and settlement) services to its clients in relation to financial products traded on a Relevant Exchange (such as ASX or Chi- X). Your orders are passed by to UBS Securities for execution, clearing and settlement. UBS Securities is a participant of ASX, Chi-X, ASX Clear Pty Limited (the clearing facility for transactions executed on or reported to ASX or Chi-X) and CHESS (the settlement facility operated by ASX Settlement Pty Limited). UBS Securities will provide execution, clearing and settlement services to you in relation to financial products traded on a Relevant Exchange which may include securities, derivatives, warrants and interests in managed investment schemes (excluding investor directed portfolio services). The provision of settlement services may also involve UBS Securities arranging dealings in deposit and payment products to facilitate settlement. provides CHESS sponsorship services to you. Important Note: In accordance with UBS Securities' best execution arrangements, your orders may pass through the components of the UBS Crossing System, and may be systematically matched with other orders in the UBS Crossing System to achieve enhanced liquidity and possible price improvement (from that which is available on a Relevant Exchange). For orders that match within the UBS Crossing System, they may match with other UBS Securities client orders (agency orders) or with UBS Securities as principal, and will then be reported to a Relevant Exchange. Where your orders match with UBS Securities as principal, UBS Securities will receive the same benefits and risks that any buyer or seller (as the case may be) of securities receives, in particular in relation to price fluctuations. The UBS Crossing System and any decision by UBS Securities to buy or sell securities as principal are in accordance with internal risk management and conflict procedures to ensure compliance with applicable laws and regulations and best practice. For orders that do not match within the UBS Crossing System, they will be routed to the Relevant Exchange for execution. If you would like more information in relation to the UBS Crossing System, please notify your UBS client adviser. If you do not wish your orders to pass through the UBS Crossing System, please discuss this with your UBS client adviser. However, you should be aware that UBS Securities is unable to accept your specific instructions directing an order to a particular exchange venue. UBS AG issues the UBS Lombard Margin Lending facility. Further details about UBS Lombard Margin Lending can be obtained from the PDS for that product and from the Lombard Margin Loan Facility Terms and Conditions contained in your UBS Lombard Margin Lending Account Opening Application Form. UBS AG may deal in financial products on your behalf in certain circumstances when it exercises its rights under the terms of the UBS Lombard margin lending facility to sell some or all of your portfolio, for example, if you do not satisfy a margin call or fail to pay the loan balance as required. UBS AG also issues the UBS Multi-Currency Services (MCS). Further details about the UBS Multi-Currency Service can be obtained from the UBS Multi-Currency Services Client Information Booklet, the Terms and Conditions for UBS Multi-Currency Services Current Accounts, Term Deposits and Term Loans and Foreign Exchange Transactions and the UBS Multi-Currency Services Factsheet. UBS AG may provide and/or deal in relation to one or more financial products including deposit and payment products, derivatives and foreign exchange contracts. UBS AG is a participant of ASX 24, ASX Clear (Futures) Pty Limited and Austraclear Limited. It is also a participant of the Dealer & Client Market and Interdealer Market operated by Yieldbroker Pty Ltd. UBS Nominees also provides nominee and custody services including in relation to client investments held through the Service and DPM service. 3

4 The financial services in the following table are those for which we are authorised under our Australian financial services licences and which we will or are likely to provide to you: Service Financial product advice and/or deal in: UBS Securities UBS AG Deposit and payment products Derivatives Foreign Exchange Contracts * General insurance products Debentures, stocks or bonds issued or proposed to be issued by a government Life insurance products Interests in managed investment schemes (including the investor directed portfolio service known as Service ) UBS Nominees Interests in managed investment schemes (excluding investor directed portfolio services) Interests in managed investment schemes, limited to MDA services Securities Superannuation products Warrants Standard margin lending facilities Provide custodial or depository services for the investor directed portfolio service known as UBS Wealth Service Operate a custodial or depository service (other than an investor directed portfolio service) * General financial product advice to wholesale clients only. 4

5 Part Two Remuneration and other benefits The fees, commissions and other remuneration which we receive in relation to the financial services we provide to you are described in the table below. If we recommend, issue or offer to arrange or arrange the issue of a financial product to you, we will, if required, give you a PDS or other disclosure document which contains details of the fees and other remuneration paid to us. If we make a personal recommendation to you, the SoA or other disclosures we make to you in connection with that advice will set out the remuneration and fees that we may receive in connection with that advice. The fees, commission and other remuneration that we receive differs depending upon the nature of the service that we are providing to you. Where a range is indicated and fees are based on portfolio value, then the amount you will be charged may depend on your portfolio size. This FSG does not set out all of the costs, expenses and charges that you may incur in dealing in financial products. You may incur miscellaneous charges including local market charges and clearing charges depending on the nature of the financial product in which you are trading, the nature of your transaction, the exchange on which the financial product is traded and the size of the trade. The exact cost of your transaction will be disclosed to you in your trade confirmations. Some fees that we charge may be tax deductible. You must confirm this with your own tax adviser or accountant in relation to your specific situation. We reserve the right to change these fees from time to time. All remuneration in this section is stated exclusive of goods and services tax (GST). GST will be charged on all remuneration (including brokerage) at the rate applicable, currently being 10%. The purchase and disposal of exchange traded options over shares and the share price index by investors is not subject to GST. Interest on your margin loan is not subject to GST. All amounts are shown in Australian dollars. 5

6 Remuneration The following table sets out the standard fees which you pay to us for the services that we provide: Service Service provider Fee Other information on remuneration Wealth Advisory (WA) and Asset Advisory (AA) (provided with the UBS Wealth Service) UBS Nominees Up to 2.5% per annum of the daily value of your portfolio#, subject to a minimum of up to $3000 fee per quarter. Transaction Services Fees (see below) may also be charged depending on which fee option you agree with your UBS client adviser. Refer to the Service IDPS Guide as Supplemented from time to time (IDPS Guide) for further information. DPM Domestic Custody International Custody UBS Nominees UBS Nominees Up to 2.0% per annum of the daily value of your portfolio#. This fee may be subject to a minimum. If a minimum is applicable, we will provide you with the details of this minimum at the time advice is given (or as soon as practicable thereafter). Transaction Services Fees (see below) may also be charged. Up to 2.0% per annum of the daily value of your portfolio. This fee may be subject to a minimum. If a minimum is applicable, we will provide you with the details of this minimum at the time advice is given (or as soon as practicable thereafter). Transaction Services Fees (see below) may also be charged. Up to 2.0% per annum of the daily value of your portfolio. This fee may be subject to a minimum. If a minimum is applicable, we will provide you with the details of this minimum at the time advice is given (or as soon as practicable thereafter). Transaction Services Fees (see below) may also be charged. Where we arrange settlement of any foreign currency transactions in Australian dollars, we may earn a margin of up to 1.0% which may be included into the relevant conversion exchange rate. The margin may depend on the interbank spot exchange rate, volatility of foreign exchange markets, the size and currency of the transaction amount. Transaction Services (Execution, clearing and settlement) UBS Securities* Brokerage on domestic securities and international securities of up to 3.0% of the value of the executed transaction, subject to a minimum of up to $125 per trade. An Off market transfer fee may also be charged of $50 per transfer. Exchange traded options UBS Securities* Brokerage of up to 1.0% of the premium payable by the buyer (taker) of the exchange traded option contract, subject to a minimum fee of $100 per trade. Financial planning Fees are applicable if you are not a Wealth Advisory client or eligible DPM client, in which case we may charge you for an investment strategy or financial plan Hourly rate or flat fee agreed with your UBS client adviser before the advice is given. The remuneration received by us for financial planning advice will be disclosed at the time the advice is given or as soon as practicable thereafter. Lombard Margin Lending UBS AG Variable and/or Fixed Interest rates may be charged of which up to 2.5% is shared with your UBS client adviser. Refer to the PDS. * Brokerage is payable to. UBS Securities receives a fee from for providing their services to you. # The rate of the annual assets under management fee charged to our retail clients who deal directly with a UBS client advisor comprises two components. The first component is an Advice Fee being 80% of the total fee rate. The second component (for the remaining 20%) is a Platform Services fee. If you are a retail client who has drawn on your Lombard Margin Lending facility to fund your investments in these services, the Advice Fee component will be calculated based on the applicable account portfolio value minus the daily loan balance accrued on the linked Lombard Margin Lending facility. 6

7 Other expenses associated with our Transaction Services Fail fees Fail fees may be payable to UBS Securities or any of its related entities if you fail to provide payment or delivery of financial products for a buy or sell transaction by the settlement time. The amount will be equal to the daily ASX fail fee, which is calculated at 0.1% of settlement consideration subject to a minimum of $100 and a maximum of $5000 (plus GST) for each failed settlement. ASX Clear Fees ASX Clear charges a transaction fee of $0.143 per equity option contract, including GST. If you exercise an equity exchange traded option or get assigned an equity exchange traded option, ASX Clear charges an exercise fee of $0.055 per contract, including GST. In the case of index options, ASX Clear charges $0.495 per contract including GST for the transaction fee, and $0.39 per contract including GST for the exercise fee. The ASX Clear fees referred to above are current as at the date of this FSG. The actual cost of your transaction will be disclosed in your transaction confirmation. Duplicate reporting Where you require paper copies of reports previously provided to you, the following fees will apply: Periodic reports $30 Portfolio statements $15 Transaction confirmations $15 Other remuneration we may earn Fixed Income Products A UBS Group company may from time to time act as the counterparty (that is, the seller or purchaser) on transactions entered into with you or by us on your behalf in relation to certain financial products, such as government bonds, and may make a margin (e.g., by purchasing the financial product in its name at a price, and then selling it to you at a higher price). The price quoted to you by for the purchase or sale of a financial product is net of any UBS Group company margin. The margin may depend upon the liquidity, credit rating, size and duration of the financial product as well as settlement risk and remuneration payable to your UBS client adviser and will therefore vary from product to product. We will provide you with details of this remuneration at the time personal advice is given (or as soon as practicable thereafter). Multi-Currency Services UBS AG, may, from time to time, act as the counterparty (that is, the seller or purchaser) on MCS foreign exchange transactions entered into with you and as such may take a margin from dealing with you as the counterparty. This margin may depend on a number of factors including remuneration payable to your UBS client adviser. We will provide details of this remuneration at the time personal advice is given (or as soon as practicable thereafter). Commissions from Product Issuers and other Service Providers Fixed Income products When you purchase a fixed income security, the issuer of that security may pay us a selling fee. Details of the financial benefit that your UBS client adviser receives will be set out in the offer document for the relevant security and/or provided to you at the time advice is given (or as soon as practicable thereafter). UBS Group products and UBS Securities are wholly owned subsidiaries of UBS AG. A number of entities within the UBS Group, including UBS AG, are financial product providers whose products may be recommended by UBS Wealth. We and your UBS client adviser may receive a financial benefit from your investment in these products. Details of the financial benefit that we and your UBS client adviser receives will be set out in the in the offer document for the relevant product and/or provided to you at the time advice is given (or as soon as practicable thereafter). The administrator of the UBS Cash Trust (a UBS Group company) pays to us a commission of up to 0.45% per annum based on the average daily balance maintained in UBS Cash Trust accounts held by our clients. Managed Funds and other financial products When purchasing managed funds or other financial products, the issuer of the financial product may pay us an up front commission calculated as a percentage of the amount you invest and may also pay us a trail fee. The initial commission will generally range from 0.05% to 3% of the value of the investment. The trail fee is payable to us by the issuer of the financial product for as long as you invest in that financial product. Details of the financial benefit that we and your UBS client adviser receives will be set out in the in the offer document for the financial product and/or provided to you at the time advice is given (or as soon as practicable thereafter). Life Insurance Where you obtain life insurance through one of our approved licensed financial service providers specializing in life insurance advice, with whom we have a distribution agreement, we may receive an ongoing commission calculated as a percentage of the annual premium payable by you, which is payable over the life of the policy. Alternatively, we may be paid an initial commission at the time the policy is taken out and a smaller ongoing commission which is payable over the life of the policy. These amounts are paid to us by the life insurance broker, who has agreed with us to share the commission they are paid by the life insurance company. These amounts are deducted from the premium paid by you and are not additional to that premium. The commission that we may receive varies among the life insurance companies and also for the different types of policies offered by them. The current range of commission is between 15%-90% of the first premium paid for the initial commission and between 5%- 25% for the renewal commission. Details of the financial benefit that we and your UBS client adviser receives will be provided to you at the time advice is given (or as soon as practicable thereafter). 7

8 Relationships and associations It is important for you to understand relationships that we may have with other UBS Group entities or with other entities outside of the UBS Group, where those relationships may be considered to influence the services that we provide to you. We may have, or have had, a relationship with, or may provide, or may have provided investment banking, capital markets and/or other financial services to entities which are financial product issuers (who are not UBS Group entities) whose products we may recommend to you. Details of the financial benefit we and your UBS client adviser receives will be set out in the offer document for the financial product and/or provided to you at the time the advice is given (or as soon as practicable thereafter). will execute, or arrange execution of, transactions in financial products traded in international markets through other UBS Group companies. UBS AG is authorised to (a) underwrite interests in managed investment schemes and securities; and (b) make a market in foreign exchange contracts, derivatives, debentures, government bonds or stocks. UBS Securities acts as broker and market maker in respect of warrants issued by UBS AG. UBS Securities is also authorised to make a market in derivatives, debentures, government bonds or stocks and other financial products. In addition to entities outside the UBS Group, UBS AG and other UBS Group companies provide investment advisory services to in respect of the DPM service and receive fees from for providing these services. Your UBS client adviser may provide you with information on the UBS Cash Trust (Trust) (ARSN , ABN ). UBS Global Asset (Australia) Ltd is the responsible entity of the Trust and is a UBS AG Group company. UBS Cash Australia Ltd (ABN ) (UBS Cash ) is the administrator of the Trust and is a UBS Group company. Employees performing financial services in the UBS Cash business are doing so as representatives of UBS Wealth. UBS may pay referral fees to third parties (including its employees) where those third parties refer clients to us. We may also receive referral fees where we refer clients to third parties. UBS AG is a shareholder of Yieldbroker Pty Ltd, the entity that operates the Dealer & Client market and the Interdealer Market (of which UBS AG is a participant). Adviser Remuneration The fees, brokerage, commissions and interest rate charges (other than fees which are payable to third party product providers) which you or a third party (including other UBS Group companies) pay to us are shared with your UBS client adviser. To the extent permitted by law, your UBS client adviser s salary is influenced by all revenue (brokerage, fees, commissions or interest rate revenue) attributable to that adviser. Depending on the adviser s revenue levels, your UBS client adviser may receive up to 50% of the total revenue attributable to them. To the extent permitted by law, your UBS client adviser may also receive non-monetary incentives from time to time. Nonmonetary incentives can range from small non-monetary rewards to more valuable benefits such as pre-paid holiday packages and attendances at conferences and may be given, for example, if your client adviser meets certain performance targets. 8

9 Part Three Giving Instructions to buy or sell, acquire or dispose or otherwise vary You may give instructions by telephone, facsimile, in writing or any other means that we agree with you. All instructions in relation to products and services described in this FSG should be provided to your UBS client adviser. Your privacy We are committed to protecting your personal information. We collect, use, hold or disclose your personal information in order: to provide you with financial services in accordance with the terms of our Australian Financial Services Licence and Account Terms and Conditions; to monitor the quality of the service that we provide to you; to administer, improve and further the services we provide our clients; to offer you further services (which may include using your information for marketing purposes) unless you request that we do not market services to you; and to comply with our legal and regulatory obligations, including (but not limited to) the Corporations Act, Proceeds of Crime Act 2002 (Cth), Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), relevant rules of a Relevant Exchanges and Market Integrity Rules applicable to a Relevant Exchange. Pursuant to Account Terms and Conditions, we may need to disclose your personal information to: any regulatory, governmental organisation or industry or legal body which governs its conduct in any jurisdiction or as required by law or regulation; our related bodies corporate; and a third party who is supplying a service to UBS whether in Australia or in a foreign country (including China, Hong Kong, India, Poland, New Zealand, Singapore, Switzerland, United Kingdom, and United States of America). Examples of such third parties include such as information technology maintenance companies, software providers and share registries. All personal information collected from you will be collected, used, held and disclosed by us for the purposes set out above and in accordance with the UBS privacy policy, a copy of which can be made available to you on request. The policy is also available by clicking on the following link: You may have rights to access and correct your personal information and, in some circumstances, make complaints regarding our collection, use, holding or disclosure of your personal information. You may exercise such rights by contacting us at the address set out below: The Privacy Officer c/- Legal & Compliance Department UBS Level 16, Chifley Tower 2 Chifley Square Sydney NSW 2000 Telephone: Facsimile: If you do not want to disclose your personal information, we may not be able to provide you with certain products or services. How we handle complaints If you have a complaint about any of the products or services described herein, contact your UBS client adviser. Alternatively, you can write to: The Complaints Officer c/- Legal & Compliance Department UBS Level 16, Chifley Tower 2 Chifley Square Sydney NSW 2000 Telephone: Facsimile: We will try to resolve your complaint quickly and fairly. If you still do not get a satisfactory outcome, you may have the right to complain to: Financial Ombudsman Service GPO Box 3 Melbourne VIC 3001 Telephone: Facsimile: Website: info@fos.org.au The Australian Securities and Investment Commission (ASIC) also has an Infoline on which you may contact to make a complaint and obtain information about your rights. 9

10 Compensation arrangements Where we are liable to you in relation to a financial service we provide, we may meet that claim from our available resources or we may seek to claim on our professional indemnity insurance. We hold professional indemnity insurance which satisfies the requirements of section 912B of the Corporations Act. How can I get further information? If you would like clarification of any of the matters discussed in this FSG, or require further information including a copy of our internal complaints policy, please contact your UBS client adviser. Definitions In this FSG: ASX means ASX Limited (ABN ) or the market operated by it (as the context requires); Chi-X means Chi-X Australia Pty Ltd (ABN ) or the market operated by it (as the context requires); Corporations Act means the Corporations Act 2001 (Cth) as amended from time to time; Market Integrity Rules means any market integrity rules made by ASIC in accordance with Part 7.2A of the Corporations Act, as amended from time to time, that apply to a Relevant Exchange; Relevant Exchange means: a) ASX or Chi-X, or the financial markets operated by them (as the context requires); and Contacting us You can contact us at the following offices: Sydney: Level 16, Chifley Tower 2 Chifley Square Sydney NSW 2000 Telephone: Melbourne: Level 16, 8 Exhibition Street Melbourne VIC 3000 Telephone: Brisbane: Level 11, Waterfront Place 1 Eagle Street Brisbane QLD 4000 Telephone: Important Notice UBS AG is a foreign authorised deposit taking institution under the Banking Act 1959 (Cth) and is supervised by the Australian Prudential Regulation Authority. However, it is important for you to note that any product UBS provides will not be covered by the depositor protection provisions set out in Division 2 of Part II of the Banking Act 1959 (Cth). Moreover, these provisions do not apply to foreign authorised deposit-taking institutions., UBS Securities and UBS Nominees are not authorised deposit-taking institutions under the Banking Act 1959 (Cth). The obligations of these companies do not represent deposits or other liabilities of UBS AG, and UBS AG does not stand behind, support or guarantee these companies in any way. b) any other financial market (whether or not licensed under Part 7.2 of the Corporations Act) to which orders for transactions in financial products may be transmitted for execution or to which transactions are reported, or which provides clearing or settlement services in respect of transactions on such a market (whether or not licensed under Part 7.3 of the Corporations Act). UBS Crossing System has the meaning given to the term in the document Summary of Best Execution Arrangements (referred to in Part One of this FSG) that has been provided to you, or that you can request from your client advisor or access at 10

11 Part Four Discretionary Portfolio This Part gives you key information about our DPM service and is intended to assist you in deciding whether to use our DPM service. Information about the DPM service The DPM service offers a high quality, actively managed portfolio of investments, managed by on your behalf. We take full responsibility, subject to any special written instructions from you that are accepted by us, to make and realise investments in the portfolio, in any manner that we consider appropriate. Information on the fees associated with the DPM service is provided in Part Two. Corporate actions and investor correspondence We handle all administration relating to DPM accounts, including exercising your rights in relation to corporate actions at our discretion, and receiving all investor correspondence associated with financial products in your DPM account. Discretionary Agreement Before we can provide you with DPM services, you must enter into a Discretionary Agreement (DMA) with us which is contained in our standard Client Agreement. You will also be provided with the Discretionary Portfolio Investment Program which provides the following information: the nature and scope of the discretions that we will be authorised and required to exercise under the DMA; the investment strategy that is to be applied in exercising those discretions; any significant risks associated with the DMA; the basis on which we consider the DMA to be suitable for you; and warnings that the DMA: may not be suitable for you if you have provided us with limited or inaccurate information relating to your relevant personal circumstances; and may cease to be suitable if your relevant personal circumstances change. We will annually review the Investment Program under which we will manage the financial products in your DPM account. The Investment Program together with the SoA provided by your UBS client adviser in relation to your participation in the DPM service complies with the requirements of Division 3 of Part 7.7 of the Corporations Act. Arrangement for execution and settlement of transactions is authorised, having regard to the Investment Program, to acquire, dispose of or otherwise deal in securities or other financial products on your behalf, or may arrange for another person to do so on your behalf. will arrange for UBS Securities to execute trades in financial products quoted on a Relevant Exchange through a Relevant Exchange, on your behalf. Custodial arrangements UBS Nominees provides the custodial services of safeguarding and managing all of the portfolio assets in your DPM account. UBS Nominees may, at their sole discretion, place any or all of the financial products in your DPM account with sub custodians such as correspondent banks, depositories or other institutions. Financial products which are traded exclusively or primarily outside Australia will be held in custody abroad. If you would like to contact UBS Nominees, their details are: Level 16, 8 Exhibition Street Melbourne VIC 3000 Telephone: Facsimile: Compliance with ASIC Disclosure Relief This FSG complies with the conditions of relief granted by ASIC in its Class Order 04/194 (Managed Discretionary Accounts, 11 March 2004) and ASIC Regulatory Guide 179 (Managed Discretionary Account Services, 15 March 2004). Risk Disclosure Statement and Guidance for investors - DPM services This Part does not disclose all aspects of risk associated with the DPM service. However, we provide information about the significant risks of investing through the DPM service. Further details will be provided in the Investment Program. DPM services are not suitable for some investors. In light of the risks associated with DPM services, you should invest in them only if you understand the service and the extent of your exposure to risk. The significant risks associated with our DPM service can be categorised under the following 3 headings. Discretionary Risk The investment decisions made by us in relation to assets in your DPM account could differ from those which you would make yourself, and you might earn a different return or take on different risk by making such decisions yourself. Under the DMA, we may appoint other entities to provide us with investment advisory services. These appointments may terminate at some point in the future. We will notify you when these appointments are terminated and advise you of any alternate arrangements we will make. General Investment Risk You are able to invest in a range of underlying investments through the DPM service depending on the portfolio and investment strategy that you choose. There will be risks associated with these investments. Those risks include interest rate risk, exchange rate risk, market risk, industry risk, company specific risk, credit risk, managed fund risk, investment horizon risk and asset class specific risks. These risks are described in the Investment Program. Asset Class Specific Risk Each asset class has specific risks, and your exposure to these risks will depend on the proportion that each asset class makes up in your portfolio. These risks are described in the Investment Program. 11

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