Statement of Advice. Important Information. 1 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ page 1 Notice of Changes to the

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1 CommSec Adviser Services June CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ page 1 Notice of Changes to the Statement of Advice terms and Conditions Guidance Wording for CALIA+ Important Information This guidance wording for CALIA+ is provided to you as a guide only for inclusion in a Statement of Advice (SOA). It is not a complete SOA. It does not take into account any particular individual s objectives, financial situation or needs. It does not provide you with a complete mechanism for complying with or demonstrating compliance with relevant advice related obligations in the Corporations Act or elsewhere. It should be assessed in consultation with your own business rules and by your compliance department to determine the appropriateness for your client base and for compliance with the Corporations Act and other legislative or regulatory requirements. This document is provided to you as a wholesale client and is for your information only. It is not to be disseminated as a work of CommSec Adviser Services. We believe that the information herein is correct and any opinions, conclusions or recommendations contained in this guidance are reasonably held or made as at the time of its compilation,but we make no warranty as to the accuracy, reliability or completeness of that information. Except to the extent that any liability under any law cannot be excluded, no liability for any loss or damage which may be suffered by any person, directly or indirectly, through relying upon any information or statement in this guidance is accepted by the Commonwealth Bank of Australia, any of its subsidiary companies (including Commonwealth Securities Limited ABN ), any of its directors, employees or agents,whether that loss or damage is caused by any fault or negligence on their part or otherwise. CALIA+ is one of the products available under the CommSec Adviser Services brand, and is provided by Commonwealth Bank of Australia (CBA) ABN , AFSL and Australian credit licence CBA s wholly owned but nonguaranteed subsidiary Commonwealth Securities Limited (CommSec) ABN AFSL , a Participant of the ASX Group and Chi-X Australia, only administers the Investment Loan Sub-accounts within CALIA+. Applications are subject to credit approval. Fees and charges apply. Full terms and conditions are available on application. It is your responsibility to ensure that: You have the required licence or authorisation from a licensee to advise and deal in these financial products and strategies, namely securities and credit products. These products are approved and appear on your licensee s approved product list. You meet the know your product and know your client obligations, as well as the best interests duty and all other advice related obligations in the Corporations Act Any clients are referred to the offer document when considering CALIA+. That any additional information or analysis i.e. cash flow analysis, fee disclosure etc is provided to the client in the required form to meet the reasonable basis of advice and SOA content requirements. Global Borrowing Limit This PDF document has been prepared to make it as easy as possible for you to use the wording, diagrams and tables to assist In developing recommendations for your clients. Simply choose the Select tool located at the top left of the tool bar or in the dropdown menu in Adobe Acrobat (or Adobe Reader). For text, use the tool to highlight the copy you want to Include in your SOA. Then, choose Copy from the dropdown menu at the top and paste into your document. In the case of a table, if working in the full version of Acrobat, when you ve selected the table, click the right mouse button and a pop-up menu will appear. From this menu, select Copy as table and paste into your document. To copy a diagram, use the select tool to draw a box around the diagram and copy and paste this into your document. If you require further assistance, please speak to your CommSec Adviser Services Business Development Manager. Borrowing to invest Borrowing money to invest or gearing is a popular wealth creation strategy. It is used to create a larger investment portfolio than would have otherwise been possible with an investor s existing savings or investments. In any gearing strategy there are two key considerations capital growth and income or cash flow. To accumulate wealth over time the value of the underlying assets need to increase at a rate greater than inflation and the cost of borrowing. When using gearing, the underlying assets are often equities (such as managed funds or direct shares) and/or property (listed or unlisted), as they are most likely to provide the best capital growth over medium to longer timeframes, when compared to other asset classes such as cash. The cash flow of a gearing strategy can be deemed negative, neutral or positive. The category an investor will fall under is dependent on the relationship between interest expenses (after tax considerations) and income produced by the investments, with: Negative gearing occurring when the after-tax cost of interest payable on borrowed monies exceeds the after-tax income received from the investment/s. Neutral gearing occurring when the after-tax cost of interest payable on borrowed monies is equal to the after-tax income received from the investment/s.

2 2 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ Positive gearing occurring when the after-tax cost of interest payable on borrowed monies is less than the after-tax income received from the investment/s. It is important to remember that where income is reinvested to further increase and compound growth in the investment portfolio, interest expenses will need to be met from other after-tax income sources. There are a range of products offered in the Australian market which allow investors to borrow to invest. I have included the advantages and disadvantages of five common gearing products below: Product Advantages Disadvantages Line of Credit Investment Loan Protected Equity Loan Contract for Difference (CFD) Instalment Warrant Low cost of borrowing Able to use proceeds to invest in any asset class Easy application process Does not require real estate as security 100% geared exposure with limited downside Does not require real estate, cash or existing portfolio as security High leverage with minimal capital required Purchase ASX listed securities for a 50%-90% initial payment Receive 100% ordinary dividends Real estate required as security Ease of access to equity can impact on budgeting Margin call may occur if the value of security falls Restricted range of investment options Higher cost of borrowing than other geared products Corporate action may require early termination Highest risk of capital loss compared to other gearing products Restricted range of investment options Excluded from special offers Irrespective of the advantages and disadvantages listed above, it is important to remember that gearing may not be a suitable strategy for every investor due to time horizons and risk profiles. Using a debt platform Based on my understanding of your financial situation and time horizon, I recommend that you use a debt platform as part of your wealth creation strategy. This type of product or approach is suitable for investors seeking to <<consolidate debt with a single provider/unlock equity in their assets to help create wealth/take advantage of lower interest rates/other>>. Home loan <<8.20%>> Car loan <<9.80%>> Credit card <<16.00%>> Statement Statement Statement Statement If these debts are consolidated into a debt platform, your new structure could look like: Home loan <<8.20%>> Car loan <<8.20%>> Credit card <<8.20%>> <<8.20%>> Single statement Single interest rate

3 3 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ Based on the information provided <<in your Confidential Questionnaire/at our first appointment/other>>, I have summarised your existing debt structure in the diagram below. (Modify illustration to suit) <<The/As shown in the diagram above, the>> benefits of using this type of product generally include reduced paperwork, lower interest rates and <<other>>. Other benefits include: (Delete those which are not relevant) The ability to have up to 12 sub-accounts (in single/joint/third party names) Various asset types can be held as security Flexible repayments Lower account keeping fees Ability to use separate accounts to better manage tax affairs <<other>>. As with the majority of financial products in the market, there are a range of risks. When using a debt platform these include: (Delete those which are not relevant) Access to equity can impact on plans to budget (lack of discipline) Interest rates rising (when on a variable interest rate) Tax legislation changing Gearing can magnify losses Margin calls (subject to underlying product structure) Poor performance of one asset causing the sale of another <<other>>. For further information on these risks please refer to <<appendix <<XX>>/other>>. Gearing with a debt platform commonly used terms Types of debt Debt in Australia can generally be divided into one of two groups investment/tax deductible ( good debt) or personal/ non-deductible ( bad debt). Debts which are considered bad are generally those that have been used to purchase a family home, personal motor vehicle and facilities such as personal loans or credit cards. As the debt has been used to purchase an asset which is not income producing, the interest is not tax deductible. When debt is used to purchase an asset which is income producing, the debt is considered good under current legislation the interest costs may be tax deductible. Examples of these types of debt include loans used to buy an investment property, shares, managed funds and a business. Pre-tax salary required to pay $1 of interest The table below illustrates the money required to pay interest on good or bad debt, at current Australian tax rates. While there are differences between the tax brackets, in percentage terms the benefits are substantial. Income Brackets Income Tax Rate (p.a.) Bad Debt Good Debt Difference $6,001 - $37, % $1.19 $ c $37,001 - $80, % $1.46 $ c $80,001 - $180, % $1.63 $ c $180, % $1.87 $ c (Based on 2010/11 tax rates for individuals including 1.50% Medicare levy) The reason why good debt remains at $1 is due to the investor receiving a full tax deduction for the interest being charged. This deduction equals the amount of tax that would have been paid initially through income tax on the monies required to cover the interest expense. For an investor in the top Marginal Tax Rate (MTR) it costs them almost twice as much from their pre-tax salary to service bad debt when compared to good debt. Gearing ratios When borrowing to invest there are several ratios which are commonly used by the product provider and are also often found in loan documentation/statements.

4 4 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ Borrowing or Lending Limit The borrowing or lending limit refers to the percentage of debt you can borrow when investing in a specific asset. For example, if a share has a limit of 60% then you would need to personally contribute at least 40% towards the investment. Your personal contribution (cash) $40,000 Borrowed monies $60,000 Total value of investment $100,000 The Loan to Value Ratio, also known as the Loan to Security Ratio of the above is 60% ($60,000/$100,000 value of asset). Base Loan to Security Ratio Each asset may not have the same borrowing limit. Given this, another ratio (Base Loan to Security Ratio) is used to calculate the maximum borrowing limit against all of the investments held as security. Asset Value of Asset Borrowing Limit Security Lending Value Share A $70,000 70% $49,000 Share B $50,000 50% $25,000 Managed Fund $80,000 70% $56,000 Total $200,000 $130,000 The Base Loan to Security Ratio of the above is 65% ($130,000 Security Lending Value/$200,000 Value of Assets). Buffer As investment markets can fluctuate over time most gearing providers offer a buffer over their investment loans. This buffer acts as a safeguard in the event that the value of your investment portfolio drops and your gearing ratios increase above acceptable levels. You are not able to use this buffer to make additional investments. Margin calls A margin call will be issued if the value of your investment portfolio falls and is no longer sufficient to secure the value of your loan. If this occurs you are able to meet the margin call by: Depositing cash to reduce your loan balance Selling investments and using the proceeds to reduce your loan balance Lodging additional security such as managed funds or shares The chance of receiving a margin call is quite low if you have a well diversified portfolio which is moderately geared and regularly reviewed. The diagram below shows that if your Current Loan to Security Ratio is 50% and your Margin Call Loan to Security Ratio is 80%, a fall of 37.5% in your investment portfolio would be required to trigger a margin call. Fall before Call

5 5 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ Maximum Gearing Ratio The Maximum Gearing Ratio represents the ceiling on your current borrowing level expressed as a percentage of your accepted securities. This ratio is currently set at <<90%/other>> and may be above or below your Margin Call LSR. Your Maximum Gearing Level will be the lower of the Maximum Gearing Ratio and your Margin Call LSR. A Margin Call will therefore be triggered when the value of your accepted securities fall and results in: i. Your Current LSR being greater than your Margin Call LSR; or ii. Your Current LSR being greater than the Maximum Gearing Ratio. If a Margin Call is triggered you will be required to reduce your Current LSR back to your Base LSR within the required timeframe. Recommended Strategy (Choose from the following alternatives, subject to client suitability etc) Establish and use a CALIA+ debt platform Based on your current objective to <<implement a tax effective wealth accumulation strategy/diversify your existing portfolio of assets/consolidate debt with a single provider/unlock equity in your existing assets to help create wealth/ take advantage of lower interest rates/other>> over the <<medium/longer>> term, I recommend that you use CALIA+ as your debt platform. CALIA+ will allow you to consolidate your debts and assets (excluding superannuation) in one facility. This will enable you to gain greater visibility and control over your financial position, through the restructuring of your debts in different sub-accounts. With flexible repayment plans, CALIA+ is a lifecycle product which I feel you will be able to use <<for the next XX years/ until retirement/other>>. I also believe that it will meet your needs for a range of other reasons including: (Delete those which are not relevant) Up to 12 separate sub-accounts permitted Consolidated reporting a single monthly statement Traditional banking including <<Keycard/cheque and/or deposit book/internet banking/other>> Range of assets able to be used as security Full investment lending functionality Online access Given your personal circumstances I recommend that you refinance <<all of your/the following>> debts and adopt the structure below: (Modify illustration to suit) <<Insert client name>> CALIA+ facility structure Home loan Variable monthly (in arrears) Investment property loan Fixed yearly (in advance) Car loan Variable monthly (in arrears) Investment loan Fixed yearly (in advance) Other <<(Other)>> Please refer to the attached projections in appendix <<XX>> for further details of your revised financial position. Further information on CALIA+ can be found in the <<material provided/other>>.

6 6 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ Stress Test I have completed a stress test of the recommended gearing strategy to ensure its viability in the event of changes to <<the cost of borrowing/the income received/your personal cash flows/other>>. In completing the analysis I have assessed <<three>> different scenarios, being <<an increase in the cost of borrowing, a decrease in income received and a drop in the value of your security/investment portfolio/other>>. Increase in the cost of borrowing If the short term cash rate set by the Reserve Bank of Australia increases by, this may flow through to the variable interest rate on your CALIA+ facility. As can be seen from appendix <<XX>> which models the impact on your cash flow, you will have sufficient after-tax dollars available to meet the interest obligations of this facility from your <<salary/other>>, should this be required. Decrease in income received There is a chance that the income received from your <<investment property/ies and/or equity portfolio>> could fall. If the income received decreases by, you will need to find other sources of income to offset the interest expense of your facility. As can be seen from appendix <<XX>> which models the impact on your cash flow, you will have sufficient after-tax dollars available to meet the interest costs of this facility from your <<salary/other>>, should this be required. With a reliance on your salary to meet any shortfall in investment income or increase in costs, it is important that you have suitable income protection insurance. Please refer to page <<XX>> of this Statement of Advice for recommendations on income protection insurance. Asset Portfolio value (Fall in equity portfolio) In the event of a market correction the value of your assets may fall. If your investment portfolio drops in value by, your Current Loan to Security Ratio will increase to which <<will not/will>> <<push you into the buffer of your investment loan sub-account/trigger a margin call>>. As can be seen from appendix <<XX>>, you will have sufficient funds in your <<cash account/investment sub-account/ personal sub-account/other>> to meet this obligation (with sufficient funds in reserve to cater for a fall of up to ). (Fall in property value/major event) There is a chance that the value of the property/ies currently securing your CALIA+ facility could fall. Should a major event occur which results in the value of your property/ies decreasing by you will need to find other means to secure this facility or reduce your current exposure to debt. As can be seen from appendix <<XX>>, you will <<have/not have>> sufficient income/additional security to maintain your current facility structure. With a reliance on the value of your current property/ies to secure the CALIA+ facility, it is important that you have suitable <<property and/or landlord/other>> insurance. Please refer to page <<XX>> of this Statement of Advice for further information and recommendations relating to your insurance needs. Use yearly tax deduction to assist in meeting interest costs As shown in the cash flow analysis found in appendix <<XX>>, you will have enough income to meet your expected interest costs of. Based on your income and overall financial position last year, I anticipate you may receive approximately as a tax refund. I recommend that you use this refund to help meet your future interest costs. By using this strategy with your facility, the cash flow previously allocated to meeting this cost can now be used to <<increase your cash reserve/salary sacrifice into superannuation/establish a regular gearing plan/fund additional insurance policies/other>>. <<I recommend that you confirm this figure with your accountant/other>>. Refinance your debt As outlined earlier in this Statement of Advice, you currently have debt/s of with <<list provider/s>>. <<This loan is/these loans are>> currently held against your <<family home/car/investment portfolio/other>> and can be divided as follows: Personal ( bad debt) Investment ( good debt) As we discussed on <<XX month year>>, a holistic debt structure such as CALIA+ can assist you to <<implement a tax effective wealth accumulation strategy/diversify your existing portfolio of assets/consolidate debt with a single provider/ unlock equity in your existing assets to help create wealth/take advantage of lower interest rates/other>>. When deciding whether to refinance debt, there are a number of issues which should be considered, including: Interest rate is it competitive in relation to the market rate? Accepted security are existing and future investments able to be used as security? Internal systems the quality of administration and maintenance? Online information is it flexible and easy to use? Upfront commissions or fees absence makes changing a product easier.

7 7 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ Based on your current needs/objectives I recommend that you refinance your existing debts into CALIA+. I believe this change will benefit your overall financial situation through <<reducing your interest costs by /allowing you to easily use equity in your <<list asset>>/other>>. I have included a Refinance Authority/ies as an attachment to this Statement of Advice for you to complete, sign and return to this office at your earliest convenience. Please note the transfer of your debts may incur exit, establishment and/or on-going fees. The following exit fees may be incurred: <<insert details>> Please refer to the Fees and Disclosures section of this advice for details of any establishment and/or ongoing fees payable, in addition please also refer to the product replacement section on page <<XX>> for further information. Fix and prepay interest on your <<XX>> line of credit Based on the recommended strategy to <<claim interest expenses of <<XX>> months to lower your taxable income in this financial year/gain certainty over interest expenses/other>>, I recommend that you fix and prepay the interest on your CALIA+ <<XX>> line of credit/s at for <<one/two/three/five>> years. Based on the fixed loan balance/s of at an interest rate of, the annual interest expense for the fixed period of your loan will be. (Duplicate if required) Mortgage Elimination Based on your current objectives to pay off your mortgage/home loan as soon as possible, I recommend that you use a mortgage elimination strategy with your CALIA+ facility. Mortgage elimination strategies generally share a common goal of using all available income/cash reserves to lower/ repay a home mortgage. This goal is best achieved by using a combination of direct-debits and redraw facilities, in conjunction with a budget. Following implementation of the recommendations in this Statement of Advice, your personal mortgage elimination strategy is outlined below: HOME LOAN Living EXPENSES VALUE OF INVESTMENTS INVESTMENT income SURPLUS CASH FLOW Decreases at an accelerated rate Increases over time Home loan used to cover living expenses (redraw) Salary and surplus income directed to home loan I recommend we re-evaluate this strategy at each annual review or more often if required. I estimate that you will be mortgage-free in <<XX>> years, based on the projected cash flows and not taking into account <<additional income from a higher salary/inheritance received/other>>. For further information about your repayment strategy, please refer to appendix <<XX>>. Following the elimination of your mortgage/home loan and considering your current goals, I recommend that you consider <<using the equity in your home/use the monies allocated to repayments/other>> as part of a wealth accumulation plan.

8 8 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ Debt Optimisation Based on your current objectives to pay off your mortgage ( bad debt) and commence a wealth accumulation plan as soon as possible, I recommend that you use a debt optimisation strategy with your CALIA+ facility. Debt optimisation strategies generally share a common theme the use of all income/cash reserves to lower/repay a home mortgage while redrawing the equity created to invest in growth assets. This enables an investor to become more tax effective (reduced levels of bad debt) and benefit from the compounding nature of investing over a longer timeframe. This goal is best achieved by using a combination of direct-debits and redraw facilities, in conjunction with a budget. An example of the assets and cash flow involved in a debt optimisation strategy is outlined below: HOME LOAN INVESTMENT DEBT VALUE OF INVESTMENTS INVESTMENT income SURPLUS CASH FLOW Decreases at an accelerated rate Increases over time Home loan used to cover interest costs and living expenses Salary and surplus income directed to home loan Where suitable it is possible to extend on the strategy above by using the newly created investments as security for an investment, with the proceeds used to further invest. In this type of strategy the interest costs are still generally met from the home loan, with investment income also used to reduce the home loan balance. Debt optimisation (no investment loan) I estimate that you will have paid off the bad debt part of your mortgage in <<XX>> years, based on the projected cash flows and not taking into account <<additional income from a higher salary/inheritance received/other>>. At this time in the future I also estimate that you will have investment good debt of secured against your property, with an investment portfolio worth, leaving after all debts are cleared. I recommend we re-evaluate this strategy at each annual review or more often if required. For further information about your debt optimisation strategy, please refer to appendix <<XX>>. Debt optimisation (with investment loan) I estimate that you will have paid off the bad debt part of your mortgage in <<XX>> years, based on the projected cash flows and not taking into account <<additional income from a higher salary/inheritance received/other>>. At this time in the future I also estimate that you will have investment good debt of secured against your property and investment portfolio which will be worth, leaving after all debts are cleared. I recommend we re-evaluate this strategy at each annual review or more often if required. For further information about your debt optimisation strategy, please refer to appendix <<XX>>. Purchase investment property or shares using equity To help meet your objectives of <<accumulating wealth over the medium to longer term/diversifying your assets/other>> I have recommended that you <<invest in equities/purchase an investment property/other>>. As detailed earlier, I have allocated for the acquisition of this investment and recommend that you use equity in your <<home/investment property/investment portfolio/other>> <<as your deposit/as your initial contribution/to fund the full amount/other>>. This can be achieved through the use of your CALIA+ facility. Adopting this approach will allow you to benefit from <<maintaining a single source of debt/a competitive source of funding when compared to investment lending interest rates/other>>.

9 9 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ Maturing fixed loan refinance to CALIA+ As outlined in your original Statement of Advice dated <<XX month year>>, I recommend you refinance your fixed term <<investment line of credit/investment loan/personal loan/other>> to CALIA+. This can take place on or after the maturity date of your loan, being the <<XX month year>>. Adopting this approach will allow you to benefit from <<maintaining a single source of debt/a competitive source of funding when compared to standard investment lending interest rates/other>>. As you will be maintaining your current level of debt, I recommend that you start a new <<variable/xx year fixed>> line of credit in your CALIA+ facility. This will provide you with <<the ability to repay the loan earlier/certainty of interest rate/further consolidation of debts/other>>. Increasing line of credit limit Based on your current <<long term wealth creation goal of /other>>, I recommend that you apply to increase the limit of your <<XX line of credit/investment loan/other>> from to. This will enable an increase in your loan balance from to as per the recommended strategy. The limit increase <<will/will not>> give rise to additional fees or charges. Sell <<XX>> and pay down the loan balance Based on your current <<need for additional funds/strategy to contribute funds to superannuation/need to fund short-term expenses/objective to reduce your level of debt/other>>, I recommend that you <<redeem/sell>> <<part/ all>> of your <<family home/investment property/investment portfolio/other>> and pay down the loan balance on your CALIA+ facility. (Selling family home/investment property) <<insert sentence/s on agreed process for sale of property>> The proceeds of your <<family home/investment property>> are estimated to be and based on the information you have provided, you <<are likely to/may/are not expected to>> incur a Capital Gains Tax liability <<of approximately $XX>> on the sale. I recommend that you fund this tax liability from your <<bank account/surplus cash flow/other>>. <<I recommend that you confirm this figure with your accountant/other>>. (Selling investment portfolio of equities) To redeem these investments and pay down the loan balance on your CALIA+ facility, please complete and sign the attached <<withdrawal and closure form/other>> and return them to this office at your earliest convenience. We will forward the forms to the respective parties and CommSec Adviser Services will redeem the nominated investment holdings, repay your <<line of credit/s/investment loan/other>> including any outstanding interest costs/charges and <<credit the monies to your nominated financial institution/forward a cheque payment to your nominated postal address/notify you of any outstanding payment amounts/other>>. The proceeds of your investment portfolio are estimated to be and based on the information provided, you <<are likely to/may/are not expected to>> incur a Capital Gains Tax liability <<of approximately $XX>> on the sale. I recommend that you fund this tax liability from your <<bank account/surplus cash flow/other>>. <<I recommend that you confirm this figure with your accountant/other>>. Rebalance gearing levels After completing your <<annual/half yearly/quarterly>> review, your Current Loan to Security Ratio is <<above/below>> the level initially recommended and documented in <<your Statement of Advice/Financial Plan dated XX month year>>. <<In line with your original objectives of wealth creation>><<based on your initial objective of reducing/increasing the level of gearing on your investment portfolio/other>> I recommend that you rebalance the Current Loan to Security Ratio of your <<CommSec Adviser Services Investment Loan/line of credit/other>> to. Alternative 1 (reducing gearing): I recommend that you reduce your level of gearing by <<making a lump sum repayment of $XX from your bank account/ directing surplus cash flow/transferring equity from your XX line of credit/transferring $XX of additional securities/ other>> to your <<CommSec Adviser Services Investment Loan/XX line of credit/other>> to avoid an <<over exposure to <<XX>> managed funds/equities/increased interest cost/other>>. OR Alternative 2 (increasing gearing): I recommend that you increase your level of gearing by <<making an additional investment into <<XX>> managed funds/ shares>> to maintain the original recommended gearing ratio, assisting with <<wealth creation/funding your retirement/ other>>. The interest expense will increase in line with your borrowings, with the cost incurred of the proposed debt being <<per annum/per month>>. Please refer to appendix <<XX>> for an updated cash flow analysis, showing the impact of this increase and the long term enhanced cash flow produced.

10 10 CommSec Adviser Services Statement of Advice Guidance Wording for CALIA+ FEES & CHARGES If you proceed with the recommendations in this Statement of Advice, the following fees will apply: Recommended Product Amount invested AMOUNT BORROWED UPFRONT FEE ONGOING FEE TRADE ADVICE FEE $ % WARNING This SOA may be based on incomplete or inaccurate information. Before you act on this SOA or any further advice, you should carefully consider the appropriateness, suitability and completeness of the advice having regard to your overall personal circumstances, including any facts or circumstances that you have not made known to your adviser. This SOA may cease to be appropriate if your personal circumstances change. Please notify your adviser of any changes in your personal circumstances. This SOA will remain current, and be based on information supplied through your personal profile, for a period of <<term>> days from the date of this document.