Financial Services Guide ABOUT THIS GUIDE We are required by law to provide you with this Financial Services Guide ( FSG ). It provides you with information about ICM Securities Pty Ltd, ACN 161 982 716 and will help you decide whether to use our services. It will inform you of the services and products we are authorized to provide and how we are paid. It also contains information about how we and our staff are remunerated, and details procedures we have in place to deal with any complaints you may have. The contents of this FSG have been formulated to ensure that you receive the information required to make an informed decision about whether to use the financial services that are offered by us. WHO ARE ICM SECURITIES? ICM are a full service stockbroker providing portfolio management services in addition to online share and derivatives trading facilities. ICM Securities is an Australian registered company whose head office is located in Western Australia. The company is a corporate authorized representative of International Capital Markets Pty Ltd (ICM) who holds an Australian financial services license (No. 335 692) authorizing ICM Securities to provide both general and personal advice in relation to securities and derivatives to retail and wholesale clients and also arrange to deal in securities and derivatives with retail and wholesale clients. OTHER DOCUMENTS YOU MAY RECEIVE You may be provided with a Prospectus and/or a Product Disclosure Statement (for the purposes of this FSG, both referred to as a PDS ). The PDS will contain specific information about the product offered including terms and conditions, fees and charges, risks and benefits associated with the product to enable you to make an informed decision about whether the product meets your needs. FINANCIAL SERVICES AND PRODUCTS WE ARE LICENSED TO PROVIDE ICM Securities Pty Ltd is a corporate authorized representative of International Capital Markets Pty Ltd, ACN 123 289 109, Australian Financial Service Licence (No. 335692) ( ICM ). Under the arrangement with ICM, ICM Securities is authorized to provide both general and personal advice in relation to securities and derivatives to retail and wholesale clients and also arrange to deal in securities and derivatives with retail and wholesale clients. HOW YOU CAN GIVE US INSTRUCTIONS If you wish to utilize our services, generally you can provide instructions by either telephone, or if we have verified your address and signatures, by facsimile or email or alternatively online via the internet using our online trading platform. We will maintain accurate records (on a best efforts basis) of all client orders and trades executed. We will provide you with documentation to confirm the trades executed. The documentation is provided online or via email and it is your obligation to review and ensure its accuracy and report any discrepancies that you may have to us immediately. ADVICE The general advice provided to you as a retail client does not take into account your objectives, financial situation or needs. We recommend that you take all reasonable steps to fully understand the outcomes of the specific products and strategies adopted in relation to utilizing the products and services we provide. ICM Securities believes that the general financial product advice and information we provide is accurate and reliable, however, neither ICM Securities nor its officers and associates assume any responsibility for the accuracy and completeness or currency of that advice and information. It is not our policy to provide personal advice, however, if we do provide you with personal advice or further assistance in selecting products or services having regard to your particular circumstances and needs, we will where we are required to do so in accordance with the law provide you with a Statement of Advice (SOA). You will not receive an SOA where: We give you further advice and your relevant personal circumstances are not significantly different from the relevant personal circumstances in your previous SOA. You may request a record of the further advice given to you within 90 days of the advice being provided if you have not already been provided with that record. You can make this request by contacting us in writing; or You have elected to provide ICM Securities with sufficient information concerning your personal financial objectives, circumstances and needs, and have acknowledged to us that only general advice will be provided to you. In situations where only general advice have been provided, you must ensure that the advice is appropriate for you considering your personal financial objectives, circumstances and needs. The SOA we will provide sets out the personal advice provided to you, including any recommendations, the basis for the advice or recommendation and additional information outlining fees, commissions, associations or relationships which may reasonably expected to be capable of influencing the provision of that advice or recommendation to you. FEES, COMMISSIONS AND BENEFITS WE RECEIVE We are remunerated through the fees and commissions that we charge you. We may also be remunerated directly by non-related product issuers or service providers through fees or ongoing trailing commissions. The fees and commission rates charged by us to you will vary depending on: the financial product that you trade; your account balance; the size of your transactions; your trading frequency; and the level of service you require. Rates are agreed with you prior to the provision of any transaction execution services. In certain cases we may refund a portion of the rates charged to you should volume targets be reached. A detailed description of the fees and commissions payable to us for each of the financial products offered by us can be found in the Product Disclosure Statement (PDS) for the relevant financial product.
We reserve the right to charge for certain administrative services which may arise through the course of your dealings with us. The fees charged for certain administrative services are outlined in the relevant PDS. Certain fees may be agreed with you at the time of account opening or may be waived in whole or in part. ONGOING COMMISSIONS PAID TO ICM Securities Certain parties may pay ongoing trailing commissions to us; in addition the product provider may pay ICM Securities a commission for the length of time you hold their product. Trailing commissions will usually paid directly to ICM Securities from the revenue the product provider earns or it is deducted from your investment. We will disclose any trailing commission arrangements when we arrange any investment for you. THIRD PARTY REMUNERATION AGREEMENTS ICM Securities may provide you with financial services and products from third parties that are not subsidiaries and/or associates. We may receive a commission payment as a result of you investing in one of their products or services. REMUNERATION OF OUR STAFF Our employees and directors are remunerated by way of salary and other employee benefits. They may also be eligible for a discretionary bonus which is based on achievement of pre-determined business objectives such as: Contribution to profit; Client Service; Product and Risk Management; and Leadership. Certain employees, directors and representatives may also receive 0% to 70% of all fees and commissions generated from clients depending on the level of salary and the aggregate revenue that they earn for ICM Securities. Should you receive personal advice from a representative of ICM Securities, more detailed information about fees, commissions and other benefits payable to ICM Securities or our representative will be outlined in your SOA. REFERRAL PAYMENTS As at the date of this FSG, we do not pay commission or provide other benefits to any person for referring customers to us in relation to the financial services described in this FSG. MANAGEMENT OF YOUR PERSONAL INFORMATION We maintain a record of your personal information. Generally, this information includes details of your personal investment objectives, financial situation and needs. We also maintain full records of any recommendations we make to you. You have the right to examine your file and we will be happy to make this information available to you upon your request. ICM Securities is committed to compliance with the National Privacy Principles within the Privacy Act to maintain client confidentiality and keep your personal information secure. A copy of our Privacy Policy is available on request. WHAT SHOULD I DO IF I HAVE A COMPLAINT? We have an internal complaint handling process in place to resolve any complaints or concerns you may have in relation to your dealings with us. We are committed to a high level of client service, and as such regard all complaints seriously. A response will be prepared to ensure all matters raised are investigated and responded to quickly and fairly. You may lodge a complaint verbally or in written form and you should take the following steps: 1. Contact your Adviser immediately and explain the complaint in full. 2. If your complaint has not been satisfactorily resolved in three working days, please contact us on 08 6336 7544, or put your complaint in writing and send it to us. We will try to resolve your complaint as quickly and fairly as possible. 3. If you still do not receive a satisfactory outcome and you wish to take your complaint further you can contact the following industry body of which ICM is a member: Financial Industry Complaints Service Limited (FICS) PO Box 579 Collins Street West Melbourne Victoria 8007 Phone: (03) 9629 7050 Fax: (03) 9621 2291 Cost of a local call: 1300 780 808 Email: fics@fics.com.au OUR PRIVACY POLICY ICM Securities recognizes that your privacy is very important. We handle personal information and use personal and sensitive information provided by people everyday. We are committed to supporting and complying with the National Privacy Principles (NPPs), set out in the Privacy Act 1988 (Cth) (as amended). CONTACTING US Should you wish to contact us, you can do so by either: Mail: ICM Securities Pty Ltd Email: info@icmsecurities.com.au PO Box 1018 Website: www.icmsecurities.com.au West Leederville Telephone: +61 8 6336 7544 Fax: +61 8 6311 7414
INTERNATIONAL CAPITAL MARKETS PTY LIMITED Financial Services Guide 29 December 2010 Interna'onal Capital Markets Pty Limited ACN 123 289 109 Australian Financial Services Licence Number: 335 692 Level 10, 2 Bligh Street, Sydney NSW 2000 Phone number +61 2 8014 4280
Details This Financial Services Guide (FSG) is dated the 29 th December 2010 and is provided to you by International Capital Markets Pty Limited (IC Markets, we, our, us) to inform you of the financial services provided by us and to comply with our obligations as the holder of an Australian Financial Services Licence (AFSL No 335 692). What is the purpose of this Financial Services Guide? The purpose of this FSG is to provide clients of IC Markets with key information about the financial services that we offer. It is designed to give you information required to make an informed decision about whether to use those financial services. If you receive an electronic copy of this FSG, you should download or otherwise receive all of this FSG. The distribution of this FSG has been approved by IC Markets. What this FSG contains This FSG contains information about: who we are and how we can be contacted the services and types of products we are authorised to provide how we (and any other relevant parties) are remunerated internal and external dispute resolution procedures and how you can access them. Who we are and how we can be contacted? IC Markets is an Australian registered company whose head office is located at Level 10, 2 Bligh Street Sydney 2000. We hold an Australian Financial Services Licence (No. 335 692) and are regulated by the Australian Securities and Investment Commission. We can be contacted at: International Capital Markets Pty Ltd Level 10, 2 Bligh Street Sydney 2000 Toll Free: 1300 600 644 Telephone: (02) 8014 4280 Email: Website: info@icmarkets.com.au www.icmarkets.com.au What are the Financial Services provided? IC Markets is authorised to provide the following financial services: (a) provide financial product advice to wholesale clients only for the following classes of financial products: (i) non standard margin lending facilities; and (b) deal in a financial product to wholesale clients only by: (i) applying for, acquiring, varying or disposing of a financial product in respect of the following classes of financial products: (A) non standard margin lending dacility; and (c) provide financial product advice to retail and wholesale clients for the following classes of financial products: (i) derivatives; (ii) foreign exchange contracts; (iii) securities; and (iv) standard margin lending facility; (d) deal in a financial product to retail and wholesale clients by: (i) issuing, applying for, acquiring, varying or disposing of a financial product in respect of the following classes of financial products: (A) derivatives; (B) foreign exchange contracts; and (C) securities; and (ii) applying for, acquiring, varying or disposing of a financial product on behalf of another person in respect of the following classes of products: (A) derivatives; (B) foreign exchange contracts; (C) securities; and (D) standard margin lending facility; and (e) make a market for the following financial products in respect of retail and wholesale clients: (A) foreign exchange contracts; and (B) derivatives; IC Markets is acting for itself when it provides its financial services to you. Portfolio Accounts Portfolio Accounts are accounts which allow you, as the client, or your financial advisor, as your representative, to instruct Global Prime to deal in securities and/or derivatives on your behalf. These accounts are client directed and you determine the composition of your portfolio. Who is the custodian of your Assets? Client s assets in the Portfolio Account are either held for you by a licensed custodian or (for CHESS-sponsored investments) are in your name but are sponsored by a CHESS participant. The licensed custodian or CHESS sponsor will be IC Markets, a related party of it or a licensed third party. IC Markets has arranged for CHESS sponsorship of your ASX-traded securities and custody of your ASX derivatives by a third party, if you elect to have that service (see below under IC Markets and Penson Financial Services Australia Pty Limited ).
Some benefits that accrue to the holders of financial products (such as shareholder discounts) might not be available for your benefit. IC Markets does not compensate or provide other adjustments if the benefit is not available. Other documents you may receive Product Disclosure Statement (PDS) A PDS is a document (or group of documents) that describe a financial product. A PDS contains important information to assist you in making a decision about the product. You will receive a PDS if a recommendation is made to acquire a particular financial product (other than securities) or an offer is made to issue or arrange the issue of a financial product. PDSs will be given for managed funds, options, superannuation products, margin lending and other financial products or services, as required by law. Prospectus A prospectus is a document (or group of documents) that describes an offer of securities, such as shares, debentures or options over them or rights issues in relation to them. A prospectus contains important information to assist you in making a decision about investing in the security. You will receive a prospectus if a recommendation is made to acquire a particular security which is the subject of prospectus, which typically happens for IPOs and some rights issues. Statement of Advice and Record of Advice You may also receive from us a Statement of Advice (SoA) if we give you personal advice. A SoA is a written record of the advice provided by us to you. It includes information about fees, commissions and associations that might have influenced our advice. In general we must give you a SoA the first time we provide personal advice about any financial product. You may request a copy of our record of the advice from your Adviser within 7 years of us providing personal advice. Clients will receive a SoA when they receive initial advice from us. You will not receive a further SoA unless you request one regarding further market advice being given to you or until your circumstances change and you advise us of this. If you later advise us that your circumstances have changed which may influence the types of investments or the suitability of strategies that have been used on your account, you will receive a SoA. Such changes may be triggered by changes in your investments or financial situation or by life events such as marriage, divorce, the birth of a child, redundancy, retirement, illness or an accident that may prevent you from working. Any event that has an impact on your life and your financial security should be notified to your IC Markets advisor so that they may be able to assist you to review your investments and perhaps change them to be more suitable to your changed circumstances. Otherwise, you will not receive a SoA unless you request one regarding further market advice given to you. You may request brief particulars of further advice given to you from time to time within a reasonable time after the advice was given. Transaction Documents The provision of financial products and services by IC Markets will be undertaken in accordance with the terms and conditions detailed in the documentation that you will either receive from us or have downloaded from our website with respect to the relevant financial service provided to you. IC Markets and Penson Financial Services Australia Pty Limited IC Markets has entered into an agreement with Penson Financial Services Australia Pty Ltd AFS (Penson) Licence 338264 and ABN 60 136 184 962 to provide to you CHESS services and to settle and clear all ASX transactions as executed or arranged to be executed by IC Markets. You should also read Penson s Financial Services Guide, disclosure guide, CHESS Sponsorship agreement and explanation of that and other Penson documents. These are provided to you if you elect to have these services. Please ask your Adviser for a copy if you have not already received one. How you can instruct us and your obligations IC Markets accepts order instructions in any of the following ways: electronically, via electronic trading platform; via telephone; and in writing (including email or facsimile, where authorised), you must check and confirm with us that orders sent via fax or email have in fact been received by us. It is your obligation to review any confirmation or statement we send to you to ensure its accuracy and report any discrepancies that you may have to us immediately. Reporting IC Markets will provide you with access to electronic reporting detailing your investment portfolio on-line via IC Markets trading platform, including comprehensive information regarding transactions, the value of your assets and any fees and charges associated with your account. IC Markets, as part of its services, will provide a trade advice of transactions executed or arranged by IC Markets for you. General Advice and Personal Advice Any advice given by IC Markets is general advice only unless it is identified as personal advice to you. Our general advice provided to you as a retail client does not take into account your objectives, financial situation or needs. Under the law regulating provision of financial services, general advice and personal advice have special meanings and may differ from what you commonly understand. General advice can include direct or implied recommendations about financial products or services, whether generally or for a class or kind of investor, without taking into account your particular circumstances. General advice includes advice based on consideration of the investment alone (including by reference to current market conditions). Such general advice is provided without any expressed or implied recommendation that it is appropriate for you in light of your personal circumstances. The onus is on you, as the client, to assess whether the information or general advice provided is appropriate for your personal needs, objectives and circumstances.
You should be aware that general advice or information is not complete and it might lose currency or accuracy. Regular updates, marketing materials, research reports, market reports, case scenarios, investment strategy reports, PDSs or other offer documents and website content are not personal advice. Risks Before you make an investment decision it is important that you understand the risks that can affect your investment. All forms of investment involve a degree of risk. This could be that your investment does not meet your investment objectives or that you lose money on your investment. Certain products offered by IC Markets are margined and may result in losses greater than your initial outlay. Specific investment risks apply to all investments that may have an effect on the value of your IC Markets Portfolio Account. The risks applicable to the investment strategy recommended to you by your financial advisor will be included in the Statement of Advice that will be given to you. However there are particular risks for you that are associated with giving IC Markets discretion. Those particular risks are: Trading Risk - Trading is executed using electronic systems and oral instructions provided to brokers. There is room for error when the trades are placed which may result in financial loss. In some cases there may be delays or disruptions to the trade execution process which may impact on the availability of information, communication, amendment or cancellation of transactions which may negatively impact your portfolio. Systems Risk - Systems risk may be associated with a technical malfunction in the systems of providers of services associated with your investment such as custodians or stock exchanges, which may lead to transactions failing or delays in settlement or execution which may result in losses or opportunity cost. It is your responsibility to assess the risks associated with an investment in IC Market s products and services prior to investment. If you have any concerns regarding the risks described in this section or any other risks not listed you should contact your financial advisor or IC Markets. Corporate Actions If you wish to provide instructions to us in relation to corporate actions (proxy voting) or otherwise regarding the financial assets held in your account, please contact IC Markets to determine if your account is eligible to vote. Record Keeping IC Markets seeks to ensure that comprehensive and accurate records of client profiles, together with all advice or recommendations provided are properly maintained. Our relationship with you IC Markets is responsible for the financial services we provide to you. IC Markets acts as principal in all transactions with you in respect of certain financial products. IC Markets may also arrange for you to be supplied with financial services and products issued by non-related product providers. IC Markets may receive a fee or commission payment from these non-related issuers or providers as a result of you investing in one of their products or services. How we are remunerated You may pay IC Markets a fee depending on the type and level of services provided to you, the exchange upon which the transaction is to be conducted (if any), the frequency and volume of transactions executed, the financial products you choose and the amount you invest. In particular, IC Markets may receive fees and other benefits from the financial products that it issues to you. Unless otherwise stated, all fees, charges, commissions and benefits disclosed in this FSG are inclusive of goods and services tax (GST). Equities fees and rates The standard fees you will be typically charged for transactions in ASX-traded equities typically will be in the range of 0% to 5.5% (GST included) of the transaction value. If your transaction is not typical (e.g., due to significant size relative to liquidity of the stock or is traded overseas), we may negotiate with you a different fee. Fees for transactions made on exchanges other than an ASX are available on request. ASX Derivatives fees The standard fees you will be typically charged for exchange-traded derivatives typically are in the range of 0.11% to 1.65% (GST included) of the premium amount, but may range from 0% up to a maximum of 2.2% (GST included). If you fail to pay for a transaction, you may be charged the greater of (a) whatever fee or charge is imposed by any settlement or clearing agent which holds your assets; and (b) a fail management fee of a minimum of $27.50 (GST included) per day up to a maximum of $220 (GST included) per transaction per day and interest on the shortfall, accruing daily at a rate equal to the overnight cash rate imposed by the Reserve Bank of Australia plus 3%. Capital Raisings (for IPOs) and placement fees IC Markets is generally paid a fee directly from the company or other issuer that is raising the capital, so under normal circumstances you will not be charged. The range of these fees is usually between 0% and 5.5% (GST included) of the amount raised/invested. If it is higher, we will disclose that to you prior to your investment. Other financial product providers and fees and commissions IC Markets may have arrangements with a number of financial intermediaries in relation to the provision of financial products by them to clients. In those circumstances, a referral fee may be paid by IC Markets or a related entity to the financial intermediary. This referral fee is usually based on the value (or tiers of values) of the transaction or financial product that has been provided to you, and the total fee paid will range from 0% to 5.5% (GST included) of the value of that transaction or financial product. The referral fee may be paid in the form of an upfront selling fee or periodic trail fees or both. IC Markets may receive fees and commissions from the issuer of financial products including if IC Markets secures applications from its clients for financial products in respect of new issues, rights or entitlements or additional investments. These fees and commissions are usually based on the value (or tiers of values) of the transaction or financial product that has been provided to you, and the total amounts paid to IC Markets typically will range from 0% to 2.2% (GST included) of the value of that transaction or financial product. The fee or commission may be paid in the form of an upfront issuance or selling fee or commission or periodic trail
fees or commissions (calculated by reference to the amount of money invested in a scheme or product from time to time), or both initial and trailing fees and commissions. General If you owe an amount to IC Markets and you have not paid that amount, IC Markets may charge interest on that outstanding amount at the rate set out or described in any agreements with you or, if not specified or described, at the rate equal to IC Markets prevailing debit interest rate determined by it from time to time. Additional fees may be charged for transactions and services, including but not limited to international transfers, bank cheques and additional account administration fees and, for managed funds, fees or charges for the alteration of investments prior to maturity or early withdrawal (which are described in disclosure documents for those managed funds). IC Markets may charge a fee for printing and postage of confirmations if you have the ability to receive electronic confirmations but have chosen not to do so. We may also charge reasonable amounts for additional reports or communications required by you. These fees will be advised to you prior to you requesting this information. Detail of Associations or Relationships IC Markets has a relationship with providers of execution, clearing and settlement services, custody and portfolio administration services. These relationships do not materially influence the provision of financial services by IC Markets to you. Some of these services are available directly to you if you elect to receive them. IC Markets outsources some of its services to expert third parties. Disclosure of Relevant Conflicts of Interest IC Markets has relationships with various parties whereby it pays fees or receives fees. These parties may include (but are not limited to) product issuers, brokers, custodians, fund managers, banks, investment advisors, financial planners and other referral sources. IC Markets has documented processes for controlling, avoiding and disclosing relevant conflicts of interests. If the range of fees, commission, charges or other benefits received by IC Markets from a third party is not disclosed in this financial services guide, we will update any disclosure to you as soon as we can. Our employees and representatives Our employees and other representatives are remunerated through a base salary and non-base salary compensation for their work for IC Markets and related entities. The non-base salary includes a share of commission, fees or other payments earned by IC Markets (and, depending on the scope of their employment, related entities) which provides the financial product or service. The proportion shared with the employee or other representative ranges between 0% and 75% and is based on their level of experience, length of service with IC Markets or its related entities, the level of qualifications and the market conditions. Our employees and other representatives may also benefit from various internal incentive schemes including seminars, conferences and training programmes and non-cash rewards. Participation in these schemes is generally based on revenue production, minimum length of service and compliance with group policies and industry regulations. Professional Indemnity Insurance IC Markets has the benefit of professional indemnity insurance that complies with section 912B of the Corporations Act 2001. This professional indemnity insurance covers claims in relation to the conduct of current employees and past employees. In accordance with Regulatory Guide RG 126 and Section 912B of the Corporations Act 2001, IC Markets has the benefit of professional indemnity insurance in place which covers the work done for it by representatives and employees. How is my personal information dealt with? Your privacy is important to us and we are committed to compliance with the Privacy Act 1998 (Commonwealth) and the National Privacy Principles. We maintain a record of your personal profile which includes your personal details and details of your investments. We also maintain records of any recommendations made to you. We may disclose your personal information to external parties, such as our financial service providers, for the purposes of arranging/facilitating your investments or transactions. Such external parties are committed to protecting your privacy. We may also collect, hold and use your personal information to undertake appropriate administration, including in relation to the Know Your Client obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Commonwealth) (AML/CTF Act). If you wish to access information we hold about you, please contact us and we will make arrangements for you to do so. A copy of our Privacy Policy is available from us. Please contact us if you have any concerns. Anti-Money Laundering IC Markets has adopted a program that complies with the AML/CTF Act. As part of this process, you will need to provide evidence of identification. Dispute resolution We want to know about any problems you may have with the service of IC Markets so we can take steps to resolve the issue. If you have a complaint about the financial product or service provided to you, please take the following steps: Contact your agent or IC Markets advisor directly and tell him/her about your complaint. You may do this by telephone, facsimile, email or letter. If your complaint is not satisfactorily resolved within three business days of receipt of your complaint by your IC Markets advisor or agent, please contact Head of Compliance on +612 8014 4280 or outline your complaint to us and send it to: Level 10, 2 Bligh Street, Sydney, NSW 2000, addressed to the Compliance Department at IC Markets. We will try to resolve your complaint quickly and fairly. Complaints received will be responded to within 30 days of receipt of your written complaint. If you still do not get a satisfactory outcome, you have the right to complain to the Financial Ombudsman Service (FOS). FOS is an external complaints and dispute
resolution body. The service to you is free. The contact details for FOS are: Financial Ombudsman Service G.P.O. Box 3, Melbourne VIC 3001 Toll Free: 1300 780 808 Facsimile: +613 9613 6399 Website: Email: www.fos.org.au info@fos.org.au The Australian Securities and Investments Commission (ASIC) also has an Info line on 1300 300 630 which you may use to make a complaint and obtain information about your rights. Recording of Telephone Conversations IC Markets may record conversations between you and our employees or authorised representatives (with or without an audible tone). You may request a copy of the transcript of these recordings in anticipation of or in the event of a dispute. We may charge a reasonable administrative cost for providing this service.
PART I: PERSHING PRIVACY STATEMENTS Privacy Statement for Individuals Pershing Securities Australia Pty Ltd and its related entities (Pershing) will handle your personal information, including sensitive information (as defined in the Privacy Act), to enable us to provide you with financial services and products offered by Pershing and to provide you with information about these services and products (the Services). You understand that if you fail to provide any personal information requested of you, we may not be able to provide with the Services that you require. In providing you with the Services we may, from time to time, disclose your personal information to State or Commonwealth regulatory authorities (including ASX Settlement and Transfer Corporation Pty Limited), our employees, advisers, agents, contractors and our third party service providers, such as mailing houses or financial planners. We may also share your personal with other entities in the wider Pershing group and their party service providers. Some of the foregoing may be located overseas. You can request access to any personal information that Pershing may hold about you. On occasion, we may not provide access. In this case we will explain why. If you want to know more about our approach to privacy, want to access your personal information or do not want us to use your personal information in any of the ways set out above, you can contact us at PERSHING SECURITIES AUSTRALIA PTY LTD Head of Compliance Level 7, 1 Chifley Square Sydney NSW 2000 Ph: 02 8999 4000 Fax: 02 8999 4099 Privacy Statement for Corporate Clients We may from time to time collect personal information about your employees, agents or contracts for the purpose of conducting business with you. We may disclose that personal information to State or Commonwealth regulatory authorities (including ASX Settlement and Transfer Corporation Pty Limited), our employees, advisers, agents, contractors and our third party service providers such as mailing houses. We may also share that personal information with other entities in the wider Pershing group and their third party service providers. Some of the foregoing may be located overseas. You must advise your employees, agents and contractors of the fact that we collect the personal information and the use we make of it. You must also let them know how they can contact us to request access to any personal information that we hold about them or if they do not want us to sue their personal information in any of the ways set out above. PART J: PERSHING S FINANCIAL SERVICES GUIDE (FSG) Issued by Pershing Securities Australia Pty Ltd ABN 60 136 184 962 Australian Financial Services Licence No. 338 264 Date FSG was prepared: 03 January 2012 1. Terms used in this FSG AFSL Australian Financial Services Licence ASX Broker Chi-X Client Correspondent ETOs Financial Intermediary FOS FSG IDPS International Securities Trader MDA PDS Pershing, we, us, our Pershing Nominees Relevant Exchange ASX Limited ABN 98 008 624 691 or the market operated by it, as the context requires A Participant of one or more Relevant Exchanges which has engaged Pershing to clear transactions executed by the Broker on a Relevant Exchange. Chi-X Australia Pty Limited ABN 47 129 584 667 or the market operated by it, as the context requires Clients are considered wholesale or retail as defined under the Corporations Act. Your Broker or Financial Intermediary, as the case may be. Exchange Traded Options An AFSL holder who has engaged Pershing to execute and clear transactions on a Relevant Exchange. Financial Ombudsman Service Financial Services Guide Investor Directed Portfolio Services A Pershing group entity or a third party authorised to provide securities dealing and/or custody services on an international market. Managed discretionary accounts, being a service which a Correspondent may provide to you under which you authorise the Correspondent to manage an investment portfolio on your behalf and to make investments decisions in relation to the portfolio in accordance with an investment program agreed with you. Product Disclosure Statement Pershing Securities Australia Pty Ltd ABN 60 136 184 962; AFSL No. 338 264 Pershing Australia Nominees Pty Ltd ACN 137 911 730, a wholly owned subsidiary of Pershing, or another nominee company appointed by Pershing ASX or Chi-X, or the financial markets operated by them (as the context requires). 2. Purpose of this FSG This FSG provides information about: Who we are; What relationships and associations we have; The services we provide; How you may provide us with instructions; The remuneration that may be paid to us or to other relevant persons for the services we provide; The documents you may receive from us; How we handle complaints; Your privacy and how we use your personal information This FSG has been prepared by Pershing and was prepared on 03 January 2012 to assist you in deciding whether to use the services we provide. You should read it carefully and make sure you understand it. Together with this FSG, you will have received an FSG from the Correspondent. You should read both documents before deciding whether to use the services that we provide. 3. Who is Pershing? Pershing is licensed under the Corporations Act (Australian Financial Services Licence (AFSL) No 338 264) to provide financial services and is a Trading Participant of ASX, a Participant of Chi-X, a General Participant of ASX Clear Pty Ltd ABN 48 001 314 503 (ASX Clear) and a Settlement Participant of ASX Settlement Pty Ltd ABN 49 008 504 532 (ASX Settlement). 26 (v10)(03012012)
Pershing is a wholly owned subsidiary of Pershing Group LLC, a Bank of New York Mellon Company, headquartered in New Jersey, USA. The Pershing Group provide execution, clearing, settlement, custody and technology infrastructure products and services to financial services firms and others servicing the global financial services industry. Pershing has authorised the distribution of this FSG. 4. The services offered by Pershing Pershing is authorised under its AFSL to: a) deal in (including arranging to deal in) the following financial products: Securities (such as shares, options and warrants that can be traded on a Relevant Exchange); Interests in managed investment schemes (other than IDPS), such as units in ASX listed trusts; Derivatives, such as ASX Exchange Traded Options (ETOs); Foreign exchange contracts; and b) provide a custodial or depository scheme service (other than IDPS), to wholesale and retail clients. Pershing provides/arranges to provide execution, clearing, settlement and nominee services. You have received a copy of this FSG because the Correspondent has arranged for Pershing to provide one or more of the following services: a) Clearing services for transactions in securities and interests in managed investment schemes executed on a Relevant Exchange Pershing may be engaged by a Broker to clear the transactions in securities and interests in managed investment schemes executed on a Relevant Exchange by the Broker. If you are a client of one of those Brokers and you effect a transaction in securities or interests in managed investment schemes on a Relevant Exchange through the Broker, Pershing (as clearer) will carry the settlement obligations in respect of that transaction. For this purpose, you will become a client of Pershing and you will owe your settlement obligations in respect of that transaction directly to Pershing and not to the Broker. If you are a client of one of those Brokers, you will be provided with a Disclosure Statement which contains more information concerning the clearing services Pershing provides and the terms of your agreement with Pershing in respect of the those services. b) Execution and clearing services for transactions in securities and interests in managed investment schemes executed through a Relevant Exchange Pershing may also be engaged by a Financial Intermediary to provide to clients of the Financial Intermediary, execution and clearing services in securities and interests in managed investment schemes. This means that Pershing will execute the transaction on a Relevant Exchange for you and clear and settle those transactions. As a client of one of those Financial Intermediaries, you may effect a transaction in securities or interests in managed investment schemes on a Relevant Exchange by providing instructions to the Financial Intermediary. The Financial Intermediary will then as your agent communicate your instructions to Pershing who may then execute the transaction on a Relevant Exchange for you. For this purpose, you will become Pershing s client. In addition, Pershing will also clear all transactions in securities or interests in managed investment schemes that Pershing has executed on your behalf under this arrangement. Accordingly, Pershing will carry the settlement obligations in respect of those transactions. For this purpose, you will become a client of Pershing and you will owe your settlement obligations in respect of those transactions directly to Pershing and not to the Financial Intermediary. If you are a client on one of those Financial Intermediaries,, you will be provided with a document that summarises Pershing's Best Execution Policy and explains how we handle and execute your orders, as required under the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011. c) Clearing services for transactions in Exchange Traded Options executed on ASX Pershing may also be engaged by a Broker to clear the transactions in ETOs executed on ASX by the Broker. If you are a client of one of those Brokers and you effect a transaction in an ETO on ASX through the Broker, Pershing (as clearer) will carry the settlement obligations in respect of that transaction. For this purpose, you will become a client of Pershing and you will owe your settlement obligations in respect of that transaction directly to Pershing, not to the Broker. If you are a client of one of those Brokers, and wish to trade in ETOs on ASX through it, you will need to enter into a Derivatives Client Agreement with Pershing. You may also need to enter into a Derivatives Client Agreement with the Broker, and the Broker may be required to give you a Product Disclosure Statement (PDS) in relation to the ETOs that you may trade. The PDS will contain information concerning ETOs to assist you in deciding whether those products are appropriate for your needs. d) Execution and clearing services for transactions in Exchange Traded Options executed on ASX Pershing may also be engaged by a Financial Intermediary to provide to clients of the Financial Intermediary execution and clearing services in ETOs. This means that Pershing will execute transaction in ETOs on ASX for you and clear and settle those transactions. If you are a client of one of those Financial Intermediaries and you wish to deal in ETOs on ASX, you may do so by communicating an order to deal in ETOs to the Financial Intermediary. The Financial Intermediary (as your agent) will communicate that order to Pershing who will execute the transaction on ASX on your behalf. For this purpose, you will become a client of Pershing. In addition, Pershing will also clear all transactions in ETOs that are executed by Pershing on your behalf. Accordingly, Pershing will carry the settlement obligations in respect of those transactions. For this purpose, you will become a client of Pershing and you will owe your settlement obligations in respect of those transactions directly to Pershing and not to the Financial Intermediary. If you are a client of a Financial Intermediary and wish to trade in ETOs on ASX, you will need to enter into a Derivatives Client Agreement with Pershing. We may also be required to give you a PDS in relation to the ETOs that you may trade. The PDS will contain information concerning ETOs to assist you in deciding whether those products are appropriate for your needs. The Correspondent may also be required to give you a PDS in relation to the ETOs that you may trade. e) Clearing services for transactions in Exchange Traded Options "given up" to Pershing on ASX Pershing may clear a transaction in ETOs executed on ASX by another Participant of ASX Group if the transaction is "given up" to Pershing. If Pershing accepts the "give up" of such a transaction executed for you, Pershing will carry the settlement obligations in respect of that transaction. For this purpose, you will become a client of Pershing and you will owe your settlement obligations in respect of that transaction directly to us and not to the other Participant. Before Pershing can accept the "give up" to it of a transaction in ETO executed for you, you will need to enter into a Derivatives Client Agreement with Pershing. Again, you may be provided with a PDS relating to ETOs. f) Execution, clearing and settlement services for transactions in securities on international markets Pershing may also be engaged by a Correspondent to arrange execution, clearing and settlement services in securities on international markets for clients of the Correspondent. This means that Pershing will arrange for the execution, clearing and settlement of the transaction with an entity which holds the appropriate authorisation to do so in that market (International Securities Trader). The International Securities Trader may be a Pershing group entity or a third party entity. As a client of one of those Correspondents, you may effect an international securities transaction on an international market by providing instructions to the Correspondent. The Correspondent, acting as your agent, will then communicate your instructions to Pershing who, in acting for you, will communicate them to the International Securities Trader for fulfilment through Pershing's Account with that International Securities Trader. Securities traded on your behalf using Pershing's Account will be traded beneficially for you by Pershing. For this purpose, you will become Pershing's client, but not the client of the International Securities Trader. Pershing will also arrange for the International Securities Trader to clear and settle all transactions in securities that it has executed on your behalf under this arrangement. Accordingly, Pershing will carry the settlement obligations in respect of those transactions. For this purpose, you will become a client of Pershing and you will owe your settlement obligations in respect of those transactions directly to Pershing and not to the Correspondent or the International Securities Trader. g) Settlement and nominee services - general 27 (v10)(03012012)
Pershing may also be engaged by a Correspondent to provide to clients of the Correspondent settlement services in securities and interests in managed investment schemes. This means that Pershing will settle transactions arranged for you by the Correspondent and executed on a Relevant Exchange for you by a Trading Participant of a Relevant Exchange (other than Pershing and the Correspondent). However, Pershing will only settle such transactions if, in the case of a purchase, the necessary funds are made available to Pershing and, in the case of a sale, the financial products sold are made available to Pershing, in each case in sufficient time before the time the transaction is to be settled. As part of this service, Pershing will also arrange for your securities and interests in managed investment schemes to be held as nominee by Pershing Nominees as nominee for you. For the purpose of settlement and nominee services, you will become Pershing s client. h) Settlement and nominee services MDA accounts Pershing may be engaged to provide settlement and nominee services as described in paragraph 4 f) above to clients of the Correspondent in connection with the provision to the Client by the Correspondent of managed discretionary account (MDA) services. In that event, Pershing will be responsible only for the following services: the settlement of transactions which the Correspondent has arranged to be executed on a Relevant Exchange on your behalf (provided that Pershing will only settle such transactions if, in the case of a purchase, the necessary funds are made available to Pershing and, in the case of a sale, the financial products sold are made available to Pershing, in each case in sufficient time before the time the transaction is to be settled); the holding by Pershing Nominees as nominee for you of securities and interests in managed investment schemes which are acquired or otherwise form part of your investment portfolio (Investments) which the Correspondent manages for you as part of the MDA services; as Pershing Nominees will be the registered holder of your Investments: o o it will receive any dividends or other distributions in respect of those Investments and will deal with them in accordance with instructions from the Correspondent; it will be entitled to cast any votes in respect of your investments and will do so in accordance with instructions from the Correspondent Pershing if required to do so under relevant regulatory requirements will provide you with an activity statement in respect of any transactions which it settles on your behalf unless you are deemed to be a wholesale client; any other services to be provided by Pershing to you under the Nominee and Settlement Services Agreement entered into with you. The Correspondent will be responsible for the following: management of your Investments based on an investment program agreed between you and the Correspondent, including the making of all investment decisions on your behalf in connection with your Investments; arranging for transactions to be executed on a Relevant Exchange for you by a Trading Participant of a Relevant Exchange (other than Pershing and the Correspondent); giving instructions to Pershing in connection with the settlement of transactions executed on a Relevant Exchange for you and the distributions and rights in respect of the Investments held by Pershing Nominees on your behalf; and any other services required in connection with the provision of MDA services to you which are not to be provided by Pershing. i) CHESS Sponsorship services Pershing may act as a CHESS Sponsoring Participant of the clients of its Correspondents. Clients that are to be CHESS sponsored by Pershing must enter into a Sponsorship Agreement with Pershing. j) Nominee and custody services Pershing may arrange for its wholly owned subsidiary, Pershing Nominees and/or another entity to provide nominee and other custody services for clients of the Correspondents for whom it provides clearing services and other clients. If you want Pershing to arrange for Pershing Nominees to provide nominee or custody services to you, you will need to enter into an agreement for this purpose. k) Other services Pershing acts as agent for the clients of Correspondents in providing settlement services for the client in respect of transactions executed by the client or on behalf of the client by another person. Pershing does not provide financial product advice and is not authorised under its AFSL to provide financial product advice. 5. Capacity in which Pershing acts The capacity in which Pershing acts depends on the service to be provided as follows: a) Clearing services for transactions in securities and interests in managed investment schemes executed on a Relevant Exchange Pershing acts as principal in relation to the clearing and settlement of transactions in securities and interests in managed investment schemes executed on a Relevant Exchange on your behalf. However, there may be certain activities which Pershing will perform as agent for another person (such as the despatch by Pershing of confirmations to clients as agent for the Broker that executed the transaction). In clearing the transaction, Pershing acts as agent for the client for whom the transaction was executed. However, Pershing will owe the settlement obligations in respect of that transaction to ASX Clear as principal. b) Execution and clearing services for transactions in securities and interests in managed investment schemes executed on a Relevant Exchange Pershing acts as principal in relation to the execution of your orders which are communicated to it by the Financial Intermediary for execution on a Relevant Exchange on your behalf. We act as principal (and not as agent for the Financial Intermediary) in relation to the clearing and settlement of such transactions. However, there may be certain activities which we will perform as agent for another person (such as the despatch by us of confirmations to clients as agent for the Financial Intermediary that arranged for the execution of the transaction). In clearing the transaction, Pershing acts as agent for the client for whom the transaction was executed. However, we will owe the settlement obligations in respect of that transaction to ASX Clear as principal. c) Execution and clearing services for transactions in securities on international markets When Pershing enters into a contract with you to arrange for the execution, clearing and settlement of international securities transactions on a foreign market by an International Securities Trader for you, it does so as principal on its own behalf, and not as someone's agent. When Pershing arranges for the provision of international securities trading services to you in accordance with this contract, Pershing acts as agent for you. In order to provide these services to you, Pershing (as principal), has entered into agreements with an International Securities Trader, and will owe obligations in relation to any transactions directly to the International Securities Trader. (It is then your contract with Pershing which enables Pershing to ultimately call upon you to satisfy these obligations). d) Clearing services for transactions in Exchange Traded Options executed on ASX Pershing acts as principal in relation to the clearing and settlement of transactions in ETOs executed on ASX on your behalf. Pershing also acts as principal in respect of the clearing and settlement of transactions in ETOs executed on ASX on your behalf for which Pershing accepts the "give up". However, there may be certain activities which Pershing will perform as agent for another person (such as the despatch by Pershing of confirmations to clients as agent for the Broker that executed the transaction). The rights of Pershing against the ASX Group in respect of any transaction in ETOs executed on ASX for which Pershing has the settlement obligations will be personal to Pershing, and the benefit of those rights will not pass to the client for whom the transaction was executed. Accordingly, in clearing the transaction and being the registered holder of the ETO, Pershing acts as principal and not as an agent or trustee for the client. However, Pershing will owe corresponding obligations to the client as a principal. e) Execution and clearing services for transactions in Exchange Traded Options executed on ASX Pershing acts as principal in relation to the execution of your orders which are communicated to it by the Financial Intermediary for execution on ASX on your behalf. We act as principal (and not as agent for the Financial Intermediary) in relation to the clearing and settlement of such 28 (v10)(03012012)
transactions. Pershing also acts as principal in respect of transactions in ETOs executed on ASX on your behalf for which Pershing accepts the "give up". However, there may be certain activities which Pershing will perform as agent for another person (such as the despatch by Pershing of confirmations to clients as agent for the Financial Intermediary who arranged for that transaction to be executed). The rights of Pershing against the ASX Group in respect of any transaction in ETOs executed on ASX for which Pershing has the settlement obligations will be personal to Pershing, and the benefit of those rights will not pass to the client for whom the transaction was executed. Accordingly, in clearing the transaction and being the registered holder of the ETO, Pershing acts as principal and not as an agent or trustee for the client. However, we will owe corresponding obligations to the client as a principal. f) Settlement and nominee services Pershing acts as your agent in relation to the settlement of transactions in securities and interests in managed investment schemes which the Correspondent has arranged for another Trading Participant to execute on a Relevant Exchange on your behalf. Pershing acts as agent for Pershing Nominees when arranging for it to provide nominee services to clients. Pershing Nominees acts as nominee or trustee for the client in providing the service. g) Sponsorship services Pershing acts as principal in providing sponsorship services to clients. h) Nominee and custody services Pershing acts as your agent when arranging for Pershing Nominees and/or another entity to provide nominee and other custody services to you. Pershing Nominees as agent of Pershing, or the other entity, will act as nominee or trustee for you in providing the service. i) Other services Pershing acts as agent for the client in providing settlement services for the client in respect of transactions executed by the client or on behalf of the client by another person. 6. How you may provide instructions To provide instructions to Pershing, you must contact the Correspondent (and not Pershing directly). 7. How we are remunerated a) Remuneration for execution, clearing and settlement services Pershing will charge the Correspondent fees for executing and/or clearing transactions, and for providing settlement and nominee services to clients. The fees that Pershing may charge the Correspondent may be a fixed monthly fee, a fee per trade, a fee per service and/or other fees. You may be charged fail fees by Pershing where you fail to perform your settlement obligations in respect of a transaction that has been executed on your behalf. Fail fees may include a fee imposed by a Relevant Exchange, an administrative fee and a default charge on the amount outstanding from time to time. You may also be charged brokerage or commission or other fees by Pershing on a contract for the transfer of underlying securities following the exercise of an ETO at a rate determined by Pershing and advised to you from time to time. All or part of this fee or commission may be passed on to the Correspondent. The Correspondent will also charge you brokerage or commission and/or other fees agreed with you in respect of the services that it provides to you. Information concerning such brokerage, commission and fees may be obtained from the Correspondent. b) Remuneration for CHESS sponsorship services Pershing may charge you a fee for providing you with CHESS sponsorship services. You will be advised in writing of the fee (if any) to be charged by Pershing before you agree to receive sponsorship services from Pershing. Pershing may also charge the Correspondent fees relating to the provision of sponsorship services to you. c) Remuneration for nominee and custody services Pershing may charge you a fee for providing nominee or custody services. The fees that we charge the Correspondent may include fees relating to the provision of nominee and/or sponsorship services to you. 8. Commission, Remuneration and other Benefits received by Pershing Pershing is remunerated by the fees it charges the Correspondent for the services it provides to them. Pershing is also remunerated by the fees that it may charge clients, as described above. Pershing may also earn and retain interest on moneys held for clients in our trust accounts. Pershing may also receive commissions, trailing commission or other benefits from other entities. As a guide, Pershing may receive the following: Entity Commission / Benefits Margin Lenders Ongoing commission can range from 0.25% per annum to 0.75% per annum of the margin lending facility Cash Management Trusts Providers Ongoing commissions can range from 0.15% pa to 0.65% per annum on balance invested 9. How our representatives are remunerated Our representatives are remunerated by way of salary and they do not directly receive any remuneration calculated by reference to the amount of fees or commissions received by Pershing. They may also be entitled to a bonus or other employment benefits based upon performance and achievement of various objectives by both the representative and Pershing. 10. Referral fees Pershing will not pay a third party a fee for referring you to us. Similarly, Pershing will not be paid a fee for referring you to the Correspondent. 11. Relationships or associations with financial product providers Pershing may enter into arrangements with financial product providers. Therefore, we may receive commissions, trail fees or other benefits as a result of your investing or dealing in any such product. See paragraph 7 in this FSG for further details. 12. Documents you will receive a) Clearing services for transactions executed by the Correspondent You will receive a Disclosure Statement which will contain more information relating to the clearing service provided by Pershing and the terms and conditions of those services where Pershing is to clear transactions executed for you by a Correspondent through a Relevant Exchange. b) Execution and clearing services You will receive our Equities Client Terms which will contain more information relating to the execution and clearing services provided by Pershing and the terms and conditions of those services where Pershing is to execute and clear transactions on a Relevant Exchange for you. You will also be provided with a summary of our Best Execution Policy, which explains how we handle and execute your orders, as required under the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011. Where Pershing is to arrange for the execution and clearing of securities on a foreign market by an International Securities Trader, you will receive our International Securities Trading Terms which will contain information and the terms and conditions on which Pershing will arrange for those services to be provided to you. c) Transactions in ETOs If you wish to transact in ETOs, you will need to enter a Derivatives Client Agreement with Pershing. Depending on whether Pershing or the Correspondent is to execute your trades in ETOs on ASX, you will be provided with an ETO Product Disclosure Statement by Pershing or the Correspondent. The ETO Product Disclosure Statement will contain important information regarding trading ETOs, including the fees charged by ASX Clear. If the Correspondent (and not Pershing) is to execute your trades in ETOs on ASX, you will also be required to execute a Derivatives Client Agreement with the Correspondent. d) Settlement and nominees services - general If Pershing is to settle transactions in securities and interests in management investment schemes which the Correspondent arranges for another Trading Participant to execute on a Relevant Exchange for you, you will need to enter into a Nominee and Settlement Services Agreement with Pershing which will contain more information relating to the settlement and nominee services provided by Pershing and the terms and conditions of those services. e) Settlement and nominees services MDA accounts If Pershing is engaged to provide settlement and nominee services to you in connection with the provision to you of MDA services by the Correspondent, you will need to enter into a Nominee and Settlement Services Agreement with Pershing which will contain more information relating to the settlement and nominee services provided by Pershing and the terms and conditions of those services. f) CHESS Sponsorship Services 29 (v10)(03012012)
If Pershing is to act as your CHESS Sponsoring Participant, you will need to enter into a Sponsorship Agreement with Pershing. g) Nominee and custody services If Pershing is to arrange for Pershing Nominees or another entity to provide nominee or other custody services to you, you will need to enter into an agreement with Pershing for this purpose. h) Advice You will not receive a Statement of Advice from Pershing as we do not provide any financial product advice. If you receive personal financial product advice from the Correspondent, the Correspondent may be required to give you a Statement of Advice. 13. Dispute Resolution and Complaints Pershing is dedicated to providing quality service and as part of our service commitment to clients, it is important to provide an efficient and accessible system for resolving disputes. Should you be of the opinion that the service provided by Pershing is not at an acceptable level, you have the right to complain and this complaint will be dealt with as promptly as possible. Pershing will aim to resolve any complaint quickly and fairly. If you have a complaint, put your complaint in writing and address it to: Pershing Securities Australia Pty Ltd Head of Compliance Level 7, 1 Chifley Square Sydney NSW 2000 Ph: 02 8999 4000 Fax: 02 8999 4099 You should try to include as much detail about the circumstances of the complaint as possible including the names of any Pershing employees involve and include any supporting documentation. Following receipt of your complaint, Pershing s Head of Compliance will acknowledge receipt of your complaint in writing and provide you with an estimate of the time it will take to investigate the issues you have raised. A full investigation will be undertaken which will include reviewing all the supporting documentation, speaking to you and interviewing relevant Pershing employees. You will be provided with a detailed written response once the investigation of the complaint has been finalised. If we do not resolve the complaint to your satisfaction, you have the option of pursuing your complaint with the Financial Ombudsman Service (FOS). FOS' contact details are: Financial Ombudsman Service GPO Box 3 Melbourne, Vic 3001 Telephone: 1300 78 08 08 Fax: (03)9613 6399 Web: www.fos.org.au Alternatively you may also be able to pursue the matter with a Relevant Exchange. ASX has offices in all capital cities and their details are available on www.asx.com.au. Chi-X' contact details are available on www.chi-x.com/australia/. Alternatively, the Australian Securities & Investments Commission (ASIC) also has a free call information line (1300 300 630) that you may use to make a complaint and obtain information about your rights. If your complaint relates to a service provided to you by the Correspondent (rather than Pershing), you should seek to have your complaint dealt with in the manner advised by the Correspondent in its FSG or otherwise. 14. Compensation Arrangements Pershing has arranged for Professional Indemnity insurance cover which it considers to be adequate, having regard to the following: Pershing s maximum liability under the Financial Ombudsman Service of which Pershing is a member; volume and nature of Pershing s business; number and kind of its clients; and the number of representatives and Authorised Representatives it has. If you require further information about our compensation arrangements please contact Pershing's Head of Compliance. 15. Privacy Pershing and/or its agents may use personal information collected from you for the following purposes: to provide you with services, products and/or information that you have requested or may reasonably expect to receive; to conduct research, product development, marketing, risk assessment and modelling; or to comply with our rights and obligations and under relevant laws and regulations. Pershing and/or its agents may also disclose the information collected from you to third parties such as mailing houses or others who provide services to us (but will not do so for marketing purposes). Pershing will not disclose your information to any other person except where that disclosure is authorised or permitted by the National Privacy Principles or by law. Pershing takes all reasonable steps to ensure that information we have collected from you is secure. All stored personal information is protected from unauthorised access by user login requirements, passwords or other security procedures. You are able to access and update the personal information Pershing. Please contact your Correspondent to do so. If you have any questions about privacy, please contact Pershing's Privacy Officer by writing to: Pershing Securities Australia Pty Ltd Privacy Officer GPO Box 5343 Sydney NSW 2001 16. Contact Details Our contact details are as follows: Pershing Securities Australia Pty Ltd Level 7, 1 Chifley Square Sydney NSW 2000 Ph: 02 8999 4000 Fax: 02 8999 4099 30 (v10)(03012012)