FINANCIAL SERVICES GUIDE

Transcription

1 FINANCIAL SERVICES GUIDE Version 3.4 July 2013 Simon Nuttall CA CTA SSA Director ASIC ID Proactive Financial Solutions Pty Ltd ABN ACN Corporate Authorised Representative No First Floor Suite 7, Corner 37 The Esplanade & 2 nd Avenue COTTON TREE QLD 4558 PO Box 1956 BUDERIM QLD 4556 Tel: simon@futureplanner.com.au Dover Financial Advisers Pty Ltd AFSL: ABN: Tulip St Cheltenham, VIC 3192 PO Box 68 Sandringham, VIC 3191 Telephone: (03) Fax: (03)

2 About your Adviser and Dover Financial Advisers Pty Ltd ( Dover ) Your Adviser is Simon Nuttall BEc (ANU) CA CTA SSA RTA. Your Adviser is employed as the director of Proactive Financial Solutions Pty Ltd ACN , a Corporate Authorised Representative of Dover. Your Adviser is the providing entity for the purposes of the Corporations Law. Dover holds Australian Financial Services Licence ( AFSL ) Number and has authorised the creation of this Financial Services Guide or FSG. Dover has over 100 Authorised Representatives who provide high quality advice of clients throughout Australia. Your Adviser has many years of experience creating and implementing financial plans to the betterment of clients financial lives. Your Adviser and Dover may advise on: investments (property, shares, cash and managed investments); superannuation (including self-managed superannuation); life insurances and other risk insurances; debt management; cash-flow management; and retirement planning. The Corporations Act 2001 defines various financial products and regulates the way in which consumers can be advised about those products. Dover has a list of approved financial products for Authorised Representatives. This list of approved financial products is one of the longest of any financial planning service in Australia. Ask your Adviser if want a copy of Dover s Approved Product List ( APL ). The purpose of this financial services guide ( FSG ) This FSG is an important document that explains how we provide financial product services to you. You should read this FSG carefully before using our services. It is intended to give you sufficient information to decide whether to obtain financial services from us. Most of the content of this FSG is dictated by the Corporations Act and is mandatory under that law, so bear with us regarding its form and content. Please feel free to contact us by telephone, e- mail or writing should this FSG be unclear or should you have any concerns about our services. This FSG explains: 1. who we are; 2. how you can contact us; 3. what documents you will receive from us; 4. the financial services we provide; 5. any potential conflicts of interest; 6. our privacy policy; 7. our internal dispute resolution procedures; 8. our external dispute resolution procedures; and 9. our compensation arrangements, i.e. our professional insurance arrangements. PFS FSG - Dover Financial Advisers Pty Ltd Version July 2013 Page 2

3 Product disclosure statements ( PDSs ) If we recommend a particular product (other than listed securities), a platform, wrap account or master-fund, a managed fund or a similar product we must provide you with a PDS for that product. The PDS contains the information needed for an informed decision about acquiring a product. The PDS detail costs and product fees including commissions, and is usually created by the financial institution providing the product. Getting started with Dover Getting started with Dover is easy. Simply contact your Adviser to arrange a meeting. To ensure that this meeting covers all aspects of your financial management we ask that you complete the fact finder attached to this Financial Services Guide. Ideally, this should be done a few days before we meet with you. This gives us the opportunity to review your information and prepare ourselves well ahead of our initial meeting. The fact finder asks for an extensive amount of information and it may take time to gather it. Please take the time to do this. We also appreciate a copy of the most recent accounts and tax returns for you and any related entities such as a trust or a self-managed superannuation fund. Please provide us with any other information that you feel is relevant to your circumstances. Getting to know you We aim to provide advice that suits your circumstances and is generally appropriate and relevant to you. To do this we must first understand your financial profile. A detailed client questionnaire ( fact finder ) is attached to this FSG. This fact finder is an important document and you should complete it carefully, either before or during our first meeting. The more information you provide the better our advice will be. Delivery of advice Once we have met and determined a draft plan for you, we will prepare a statement of advice or SOA. The SOA will be in writing and may be delivered in person or via or via the post, as you prefer. Your SOA contains the information needed to understand our advice and the basis on which it is made. It includes information about: 1. the specific advice; 2. the reasons for the specific advice; 3. any adviser remunerations; 4. any associations or relationships that may influence the advice; 5. the implementation plan; and 6. any other relevant matters. We will also provide other documents as needed. These documents may include educational material or PDSs, as discussed above. PFS FSG - Dover Financial Advisers Pty Ltd Version July 2013 Page 3

4 Record of advice Once you have been provided with a SOA further advice may be provided in a form known as a record of advice or ROA, provided there has been no change in your personal circumstances or the basis of the advice set out in the SOA. Retention of SOA and ROA We retain all SOAs and ROAs for at least seven years and you may request a copy of the SOA or ROA at any time within that period. This request may be verbal or in writing. Implementation of advice Our statement of advice will contain instructions on how the advice should be implemented. We will work with you to ensure that the advice is properly implemented. Review of advice Financial plans should be reviewed on at least an annual basis, if not more regularly. You should contact us immediately if your circumstances change in any way, or if you believe for any reason our advice is not appropriate to you. Dispute resolution Dover provides a dispute resolution services to its clients. This obligation is a key tenet of the consumer protection principles of the Australian Financial Services Licensing system. If you have a complaint about any services you should: 1. contact your Adviser by telephone ( ) to explain your situation and let him know of your concerns. Your Adviser will do everything possible to resolve your complaint promptly; 2. if this does not resolve your complaint, put your complaint in writing addressed to the Compliance Manager, Dover, at PO Box 68, Sandringham, Victoria, 3191 where it will be objectively considered and discussed with you and your Adviser with a view to being settled as soon as possible to your satisfaction; and 3. if your complaint is not resolved appropriately by Dover, you can access our external dispute resolution scheme. Dover is a member of the Financial Ombudsman Service (FOS). FOS can be contacted on This is a free service to complainants. Our fees and other charges - who receives the fees? Your Adviser pays a monthly fee to Dover. In return your Adviser retains all fees from the services provided to you. These fees are initially paid to Dover, who passes them on to your Adviser. Dover receives all adviser remuneration in its capacity as a trustee of a bare trust for your Adviser and your Adviser s Corporate Authorised Representative, and passes these fees on to your Adviser as soon as practical after receipt and is not beneficially entitled to any of these fees. Your Adviser is the sole director of the Corporate Authorised Representative. The Corporate Authorised Representative may pay a salary &/or other remuneration to your Adviser. Ultimately PFS FSG - Dover Financial Advisers Pty Ltd Version July 2013 Page 4

5 all income passed on to your Adviser or your Adviser s Corporate Authorised Representative by Dover will be beneficially derived by your Adviser or related persons such as a beneficiary of a family trust. In the following paragraphs we will refer to your Adviser receiving all fees, for simplicity. Our fees and other charges: how are they calculated? 1. Statement of Advice fees start at $3,000 + GST for the first two financial issues, increasing by $1,000 for each financial issue in excess of 2 issues. 2. Comprehensive Advice is available & will be subject to a FIXED price agreement 3. Hourly rates for general financial & related taxation advice are incurred at $350 per hour + GST unless a fixed price agreement is offered by PFS 4. A fee of $3,300 is payable for all Statements of Advice irrespective of your decision NOT to implement some or all of the advice 5. If you engage our ongoing services agreement any implementation fees including fund manager entry fees (usually 1-4%) will be waived 6. Ongoing service agreements are tailored to your needs & will be offered with all SOA s Remuneration your Adviser & PFS may receive: 1. Adviser service fees agreed with you annually in advance, to be deducted from your investment &/or Superannuation during the course on ongoing services agreed each year on your anniversary or 30 june & paid monthly in arrears from your portfolio cash account 2. Fees that are paid directly by you for a defined project based upon a FIXED fee agreement payable 50% on instructions & 50% on completion 3. Fees that are invoiced & payable by you, based on time involved at $350 per hour inc GST (our timecosts) following your instructions to proceed on specific project we will issue a tax invoice on completion, due within 7 days 4. Commissions that are paid by third partys such as a Life Insurance provider. Any Commission paid will vary according to your circumstances, but any commission received by PFS will be rebated to you against timecosts involved as follows: a. Firstly to pay for the timecosts involved in the collection & analysis of your personal information, research supporting & preparation of the Statement of advice b. Secondly for the timecosts involved in implementing the advice including negotiating with underwriters on your behalf c. Thirdly for the timecosts involved in servicing your ongoing insurance requirements, including an annual record of advice, updating you on: i. Premiums changes by Life Insurance company ii. Policy s changes by life insurance company new options & exclusions iii. Premium comparisons with other life insurance companys iv. Cover level changes offered by Life Insurance company v. Meeting with you to assess your ongoing needs & changing circumstances vi. Taking your instructions & implementing any instructions vii. Providing a new Statement of advice & implementing that advice viii. In the event commission excessively exceed our timecosts we will offer you a rebate in another form 5. Life insurance and other risk insurances providers can pay up to 110% of the initial annual premium as an initial commission although we can have this reduced dependant upon your circumstances: a. For example, if the annual premium is $1,000, your Adviser may receive $1,100 in the first year and then $100 each year thereafter PFS FSG - Dover Financial Advisers Pty Ltd Version July 2013 Page 5

6 b. If our timecosts for ongoing advice & assistance exceeds $100, PFS will issue you an invoice for our timecosts LESS the amount of any commission received 6. Life insurances and other risk insurances providers may pay 10-33% of the ongoing annual premium as an ongoing servicing commission to your adviser a. PFS usually limits this to 10%-20% dependant upon your circumstances b. This ongoing commission is paid in the 2 nd & future years upon renewal of your policies c. This commission is applied against timecosts incurred for ongoing maintenance of your policy & annual reviews of your policy cover. d. As in the example above we will issue you an invoice for our timecosts LESS any commissions received to the date of that service 7. In the event of a claim on your policy PFS will assist you with the paperwork as part of our ongoing service although any ongoing reporting requirements will be subject to regular invoicing from our timecost system Our Initial meeting is designed to provide details of our services & likely costs. Further it is designed for us to evaluate your expressed needs & ensure we are compatible & can provide effective strategies for betterment of your financial life. We charge a fixed price of $440 for this first meeting, which is rebated to you if you choose to proceed with our services. Our Second meeting / teleconference or skypecall is designed to obtain: 1 your consent to move forward with our services 2 to agree on the basis of our fees 3 to collect detailed information from you about every aspect of your financial life relevant to your goals 4 to agree on the next meeting to present our statement of advice 5 this meeting is free & time costs form part of the Statement of advice process Our Advice meeting Is designed to illustrate: 1 the strategies required to better your financial life 2 the products recommended to support our recommended financial strategies 3 the impasses & complexities & challenges faced by you 4 any expectation gap between your goals & the reality of your limited resources 5 fees & costs that will be incurred by accepting our recommendations 6 Any adviser remuneration for the advice & an offer of ongoing advice 7 Our projection & illustrations to support our recommendations If you prefer your Adviser to be paid by a third party, the fees in the initial and subsequent years will be shown in your statement of advice. If the amount cannot be calculated (for example, a commission based on the future balance of an investment), then an example will be provided in a form that satisfies the Corporations Act disclosure rules. Your Adviser does not receive soft dollar (ie non-cash) payments for amounts greater than $100 from any third party. Your Adviser may receive a volume bonus from IOOF (up to 0.1%pa) on any investments with these organizations although this arrangement does NOT apply to new investments after 1 July This bonus is not payable by you or from your moneys. You can ask for further details if this is of concern or interest to you. These details will be provided on request. Fees applicable to your situation / investments will be advised in detail in writing in your SOA. Product Fees will also be advised in detail in the PDSs for recommended financial products. If any fees are paid to a third person for referrals these fees will be detailed in your SOA. PFS FSG - Dover Financial Advisers Pty Ltd Version July 2013 Page 6

7 Compensation arrangements Dover operates a compensation arrangement to compensate retail clients for losses connected to any breach of the Corporations Act or other law by your Adviser, Dover or other relevant persons. These arrangements comprise comprehensive and extensive professional indemnity insurance. The insurance covers claims in relation to the conduct of former employees. Privacy considerations Your information is private and confidential and is not disclosed to any third parties unless required to do so under the law. Dover and your Adviser comply with the National Privacy Principles. If you are not satisfied with our approach to privacy you are entitled to contact the Office of the Privacy Commissioner who may investigate any complaints you may make. Anti-money laundering and terrorism legislation Dover & your adviser must verify your identity before we provide any financial services. This will be discussed at our initial meeting. No influential relationships There are no relationships that will influence our advice to you in any way. A word of warning on risk All investments have risks. Risk means the value of an investment may fall, or even disappear. Dover assumes its clients are conservative, cautious or balanced investors unless the client specifically states otherwise. If a client states otherwise the statement will only be accepted if a reasonable financial planner would assess the client as being otherwise, having regard to income, wealth, age, work experience or academic training. Dover adopts this conservative assumption to reduce your risk. Dover does not recommend investments that have significant internal gearing, or that clients borrow significant amounts to acquire investments. This is unless the client understands that such arrangements significantly increase the risk that their net equity will fall, or even disappear, if the value of the investment falls. Clients should not acquire investments other than those suited to conservative, cautious or balanced investors unless they understand and accept the risk that their equity will fall, or even disappear, if the value of the investment falls. Can Dover run an individually managed account? Dover s AFSL does not allow individually managed account or similar facilities. PFS FSG - Dover Financial Advisers Pty Ltd Version July 2013 Page 7

8 Dover regards these facilities as excessively risky and does not allow its Authorised Representatives to provide them to clients. Any questions? Please do not hesitate to contact your Adviser should you have any questions about your Adviser s services and how your Adviser and Dover can help you improve your financial position. PFS FSG - Dover Financial Advisers Pty Ltd Version July 2013 Page 8

9 Acknowledgment of Receipt I/We... acknowledge receipt of this Financial Services Guide version 3.4 dated 1 July Client signature 1:. Client name:.... Date:.. Client signature 2: Client name:... Date:... PFS FSG - Dover Financial Advisers Pty Ltd Version July 2013 Page 9

10 Dover Financial Advisers CLIENT QUESTIONNAIRE Please take the time to complete this document as thoroughly as possible. We use this information to develop our advice to you. If any part of the questionnaire is not relevant, please write N/R in the space provided. Please also feel free to attach any extra documents that you feel are relevant. Completed forms can be sent to us via the following media: Post: PO Box 1956 Buderim QLD 4556 Alternatively, you can bring the questionnaire to your first meeting with your Adviser. Section A: Personal Details Name (1): DOB: / / Name (2): DOB: / / Home Address: P/C: Work Address: P/C: Postal Address: P/C: Telephone/Fax: (a/h) (b/h) (mob) (fax) Children: DOB: / / DOB: / / DOB: / / DOB: / / Marital Status: Single / Married / Co-Habiting / Separated (please circle) Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 1

11 Section B: Your Reasons for Seeing Us In the following sections, we ask you to give us specific information about your financial circumstances. In this section, we ask you to tell us in your own words what you would like us to help you with. Please let us know of any and all other information that is relevant to your financial situation. Please feel free to attach other documents to this questionnaire. General Information Short Term Goals Please list your financial goals for the next 12 months Medium Term Goals Please list your financial goals for the next five years Long Term Goals Please list your financial goals for the period after the next five years Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 2

12 Section C: Assets and Liabilities C1: Your Home Value of your home: Debt Secured Against the home: Deductible (business/investment): Non-Deductible (private): Home is owned in whose name: C2: Investment Properties Address Owner (ie whose name is the property held in) Cost Date of Acquisition Current Value Debt Net Value Eg 1 Smith St Blacktown Husband $400,000 Oct 2003 $650,000 $150,000 $500,000 C3 Share or Managed Investments Company/Fund Manager Owner (ie whose name is the asset held in) Cost Date of Acquisition Current Value Debt Net Value Eg AMP Managed Fund Husband $100,000 Oct 2003 $150,000 Nil $150,000 C4: Other Assets Cash: Superannuation: Client 1 member balance: (see also section D) Client 2 member balance: Other Assets C5: Debts: Credit card: Leases: Other: Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 3

13 C6: Comments is there anything else we should know about these assets and liabilities: Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 4

14 Section D: Superannuation Please complete the following tables OR provide your most recent Superannuation statement D1: Client 1 Name: Fund Annual Contribution Current Value Comments Eg HESTA 9% of salary: $4,500 $52,000 Invested in high growth Are you happy with your current superannuation fund/s? D2: Client 2 Name: Fund Annual Contribution Current Value Comments Eg HESTA 9% of salary: $4,500 $52,000 Invested in high growth Are you happy with your current superannuation fund/s? Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 5

15 Section E: Life Insurances (term life, income protection, etc please do not show general insurances such as home and contents and health cover) Please complete the following tables &/or provide your latest Insurance statement E1: Client 1 Name: Type of Insurance Annual Premium Amount of Cover e.g Death Cover $1,000 $1,000,000 AIG Insurer Are you happy with your current life insurances? Are there any medical reasons why you might not be able to increase or change your cover? E2: Client 2 Name: Type of Insurance Annual Premium Amount of Cover e.g Death Cover $1,000 $1,000,000 AIG Insurer Are you happy with your current life insurances? Are there any medical reasons why you might not be able to increase or change your cover? Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 6

16 Section F Estate Planning and Financial Management F1: Client 1: Do you have a will? Y/N. Last reviewed: / / Do you have powers of attorney? Y/N. Last reviewed: / / Do you have a solicitor? Name of solicitor: Address: Telephone: Y/N Have you previously used an accountant? Y/N Name of accountants: Address: Telephone: F2: Client 2: Do you have a will? Y/N. Last reviewed: / / Do you have powers of attorney? Y/N. Last reviewed: / / Do you have a solicitor? Name of solicitor: Address: Telephone: Y/N Have you previously used an accountant? Y/N Name of accountants: Address: Telephone: F3: Other Details Do you expect to inherit any major amounts in the next five years? Do any of your beneficiaries need particular protection in your will? Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 7

17 Section G: Income and expenses G1. Please provide details of your current income. Client 1 Client 2 Name: Occupation: Employer: Name: Occupation: Employer: SOURCE GROSS $ PA SOURCE GROSS $ PA Salary Salary Business Business Trust Income Trust Income Centrelink Centrelink Superannuation Superannuation Rental Rental Dividends Dividends Other (please specify) Other (please specify) TOTAL TOTAL G2. Do you expect to inherit any major amounts in the next five years? G3. Is there any other further information about your income that may be relevant to the development of your financial plan? G4. How reliant are you on investment income to meet your day to day living expense? G5. How reliant will you be on investment income in the future to meet your daily living expense? G6. What is your annual combined living expenses including interest on loans? (refer to budget template on Section I for assistance) G7. Do you anticipate any major expenses in the next five years? Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 8

18 Section H: Investment Profile H1: Please rate how comfortable you would feel investing in the following types of assets: 1 = very uncomfortable; 3 = reasonably comfortable; 5 = very comfortable Residential Property Commercial Property Direct Australian Shares Direct International Shares Managed Equity Funds Managed Property Funds Other Managed Funds Fixed Rate Investments Speculative Investments H2: Investment Time Frame Time Frame < 10% 10-20% 20-60% 60-80% % < 1 Year 1-5 Years > 5 Years H3: Retirement Plans Client 1 Client 2 Retired < 5 Years 5-10 Years Years > 20 Years H4. Using the descriptions on the last page of this document, how would you describe yourself as an investor? H5. How comfortable are you with debt? H6. How comfortable are you in borrowing to finance investments? H7. What is/would be the main purpose of your investments? Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 9

19 Section I Your Budget (Optional) OR provide your Income needs $ The following planner can be used to list out the major areas of expenditure in your lifestyle. The planner is a very useful tool to help you learn about your spending habits. If you are a couple, please complete this as a couple. Item Per Month Per Annum Item Per Month Per Annum Mortgage Council Rates Body Corporate/Maintenance Household Help Home Phone Cable TV Other Mortgage Loans Personal Loans Life Insurance Trauma Insurance Income Protection Car Registration Lease/Loan Repayments Other Children/Dependants Clothing Rent Water Electricity Gas Mobile Phone Internet Investment Loans Credit Cards Financial Planning Accountant Solicitor Insurance Petrol/Repairs/Maintenance Childcare Other Activities School/University Fees Allowance Groceries Entertainment/Restaurants Club Membership/Hobbies Clothes/Shoes-Personal Furniture/Appliances Alcohol Sports & Fitness Holidays Clothes/Shoes-Work Related Pharmacy/Prescription Medical/Dental Consultations Private Health Insurance Pet Costs Books Cigarettes Subscriptions/Newspapers Fifths/Donations Lunch/Coffee Other Transport Costs Taxi Train Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 10

20 Section J: Client Signatures - Please complete this page before sending the questionnaire to us. The contents of this fact finder represent a true and accurate reflection of my financial circumstances. I understand that this information will be used for the purposes of providing financial and investment advice to me. My information will not be used for any other purpose unless directed by me. I confirm that I have received a Financial Services Guide from Dover Financial Advisers. Client 1: / / (please sign) Client 2: / / (please sign) Section K: Fees for Preparation and Implementation of Advice Upon obtaining your authority to proceed above your adviser will prepare a Statement of Advice Your Adviser will be paid the following amounts for providing financial advice: Fees Paid By You Fee for preparing Statement of Advice $ (plus GST). Please note that the fee for preparing the Statement of Advice is payable upon delivery of the advice. This fee will be payable regardless of whether the advice is implemented. Fees for subsequently implementing the advice will be disclosed in the Statement of Advice these are usually rebated to NIL if your accept our advice in full. Fees Paid by a Third Party Superannuation or Investment Portfolio These fees will be communicated to you in your Statement of Advice. These fees will not be payable if you do not accept the advice. Acceptances of Fee Arrangements Simon Nuttall CA Director We accept the fees outlined above and authorize our adviser to proceed with preparing a written statement of advice. We undertake to pay the fee for the preparation of advice. We understand that fees for implementing the advice will not be charged until we accept the written statement of advice and agree to its implementation. Client 1: / / (please sign) Client 2: / / (please sign) Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 11

21 Common Risk Profiles The following is a list and description of the main risk profiles for investors. These descriptions are general in nature. You can use these descriptions to answer question H4. A. Conservative The conservative investor needs to maintain their capital (initial investment amount) and will find it very difficult to cope with losses in any given period. Increasing wealth is not as important as maintaining what they already have. They prefer to know exactly what level of return they will experience on their investment. They may need to cash out their investment at short notice, to finance unexpected but necessary purchases. The conservative investor might be quite nervous about investing, and prefers to proceed only when a good understanding of the investments being considered has been established. They may well be older and thus less able to make back lost ground if an investment goes bad. Conservative investors typically have shorter timelines for investing (0 3 years). Conservative investors usually need to use investment returns to pay for necessary expenses. B. Cautious The cautious investor tolerates low levels of variability in returns, and is not too worried by the occasional experience of unsatisfactory returns. They like to have a good idea of the likely outcome of their investment, but do not need to know precisely. They may have some nervousness about investing, but are prepared to put up with this nervousness. Increasing wealth is still not paramount in their thinking, but they are prepared to accept some risk to their capital for the chance of moderate growth. The cautious investor may still need to have the ability to cash out their investment at relatively short notice. Cautious investors also think in terms of shorter timelines. Cautious investors may need to use investment returns to pay for essential expenses. C. Balanced The balanced investor looks to achieve modest growth in their capital while still understanding that investment income is only going to be a small (for example single digit) percentage of their investment. They aim to strike a balance between protecting the wealth they already have and using it to generate further wealth. They understand that periods of low or negative returns are likely for investments with the potential to create higher returns. They are less likely to need to cash out their investments in times of financial stress. Their timelines are more mid term (5 10 years). Balanced investors use investment returns either to generate further wealth or to pay for non-essential expenses. D. Assertive The assertive investor seeks higher returns and thus is prepared to experience short term and periodic losses. They can cope with reasonably high levels of volatility in their portfolio. They are looking to use investments as a way of creating a substantial proportion of their extra wealth in the medium to long term. Thus their timelines are medium to longer term (5 years plus). The assertive investor will typically have a portfolio of more than one type of investment, which includes some high growth assets such as shares or property. The assertive investor is less likely to have to cash out all of their investments to meet unexpected cash needs. Assertive investors do not rely on investment returns to fund their day to day living. E. Aggressive Aggressive investors are looking to their investments to provide the bulk of their wealth creation over the medium to long term. Aggressive investors may still have a portfolio of more than one investment asset, but the portfolio includes a substantial proportion of high growth- high risk assets such as speculative shares and property. Periodic losses do not impact on everyday standards of living. Investment returns are ploughed back in to the investment portfolio to fund further wealth generating investments. Aggressive investors should have longer-term timelines. A word of warning on risk All investments have risks. Risk means the value of an investment may fall, or even disappear. Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 12

22 Dover assumes its clients are conservative, cautious or balanced investors unless the client specifically states otherwise. If a client states otherwise the statement will only be accepted if a reasonable financial planner would assess the client as being otherwise, having regard to income, wealth, age, work experience or academic training. Dover adopts this conservative assumption to reduce your risk. Dover does not recommend investments that have significant internal gearing, or that clients borrow significant amounts to acquire investments. This is unless the client understands that these significantly increase the risk that their net equity will fall, or even disappear, if the value of the investment falls. Clients should not acquire investments other than those suited to conservative, cautious or balanced investors unless they understand and accept the risk that their equity will fall, or even disappear, if the value of the investment falls. Dover Financial Advisers Pty Ltd Client Financial position data collection form Page 13