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Estate Planning

VIEWS: 2 PAGES: 51

  • pg 1
									[Insert Date of SOA]


[Client Name(s)]
[Client Address]


Dear [Client name(s)],



Welcome to Consultum Financial Advisers


Thank you for the opportunity to meet and present you with our recommendations.

Our meeting on [insert date], along with the completion of the Fact Find, have given me a
clear understanding of your current situation, goals and objectives, and your attitude to
investment risk, security, and volatility. From this information we have developed a detailed
Statement of Advice (attached).

Please note that the attached Statement of Advice has been prepared exclusively for you, in
light of the information you have provided to us. Please take the time to read through this
report carefully to ensure the details are accurate and appropriate. If any details are
incorrect or have been omitted please bring them to our attention. If your circumstances
have changed, or if this plan is not implemented in the next 30 days we will need to revise
these recommendations to ensure they are still appropriate.

If you accept our recommendations and are comfortable to proceed with these, please sign
the attached Authority to Proceed form.

We trust the report’s recommendations and strategies adequately meet your goals and
objectives. We look forward to assisting you to implement the recommended strategies and
assisting with all your financial planning needs in the future.

Please call me on [insert phone number] if you have any queries or if I can be of any further
assistance.



Yours sincerely,




[Insert adviser name]
[Insert Corporate Entity/Business Name]
Authorised Representative of
Consultum Financial Advisers
                                PRIVATE AND CONFIDENTIAL




                         Statement of Advice


                                        Prepared for

                                       [Client/s Name]



                                         Prepared by

                                       [Adviser Name]
                                [Corporate Authorised Name]
                Authorised Representative Number: [Individual & CAR Number]
                                     [Adviser Address]
                                          [Phone]



                               Authorised Representative of

                         Consultum Financial Advisers Pty Ltd
                                    ABN: 65 006 373 995
                           Australian Financial Services Licensee
                                     Licence No. 230323
                          Head Office: Level 26, 303 Collins Street
                                  MELBOURNE VIC 3000

                                     [Insert Date of SOA]




You are entitled to receive a Statement of Advice (“SoA”) whenever we provide you with any
personal financial advice. Personal financial advice is advice that takes into account any
one or more of your objectives, financial situation and needs.
This SoA is a record of the personal financial advice provided to you and includes
information on the basis on which this advice is given, information about fees and
commissions and any interests or associations which might influence the advice.
If this advice includes a recommendation to you to acquire a particular financial product
(other than securities) or an offer to issue or arrange the issue of a financial product to you,
we will also provide you with a Product Disclosure Statement containing information about
the particular product to help you make an informed decision about that product.




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                                                    PRIVATE AND CONFIDENTIAL



                                            Table of Contents

WELCOME TO CONSULTUM FINANCIAL ADVISERS ............................................................. 4
What Areas Will My Advice Cover? .............................................................................................. 4
Limitations on the Advice Being Provided ..................................................................................... 4
EXECUTIVE SUMMARY ..................................................................................................... 6
What You Wish To Achieve .......................................................................................................... 6
Summary of Recommendations .................................................................................................... 6
Summary of Expected Outcomes ................................................................................................. 6
Fees and Commissions................................................................................................................. 6
What You Need to Do To Proceed ............................................................................................... 6
Section 1: Important Information About You                                                                                                          7
CURRENT SITUATION ...................................................................................................... 7
Personal Details ............................................................................................................................ 7
Current Assets and Liabilities........................................................................................................ 7
Current Income and Expenditure Details ...................................................................................... 8
Existing Insurance Details ............................................................................................................. 9
Existing Estate Planning Details ................................................................................................... 9
YOUR GOALS AND OBJECTIVES ....................................................................................... 10
YOUR INVESTMENT RISK PROFILE.................................................................................... 10
Section 2: Recommendations and Strategies                                                                                                           17
STRATEGY DEVELOPMENT – ALTERNATIVE STRATEGIES AND PRODUCTS CONSIDERED ...... 17
RECOMMENDATIONS ....................................................................................................... 19
Replacement Product Information ................................................................................................ 20
PORTFOLIO ANALYSIS ..................................................................................................... 21
Asset Allocation and Your Portfolio ............................................................................................... 21
RISK MANAGEMENT AND INSURANCE ............................................................................... 23
Recommended Policies and Underwriters .................................................................................... 23
Replacement Product Information ................................................................................................ 27
ESTATE PLANNING .......................................................................................................... 29
Wills ............................................................................................................................................... 29
Power of Attorney .......................................................................................................................... 29
Superannuation Binding Nominations ........................................................................................... 29
Recommended Action ................................................................................................................... 30
Section 3: Implementing Your Strategy                                                                                                               31
BENEFITS OF IMPLEMENTING YOUR PLAN ........................................................................ 31
ONGOING REVIEWS AND PORTFOLIO VALUATIONS ............................................................ 32
DISCLOSURE OF MY COMMISSIONS, FEES AND BENEFITS .................................................. 33
DISCLAIMERS & DISCLOSURES ........................................................................................ 42
AUTHORITY TO PROCEED ................................................................................................ 44
Client Declaration .......................................................................................................................... 44
Appendices and Important Information                                                                                                                47
IMPORTANT NOTE REGARDING PROJECTIONS................................................................... 47
ASSUMPTIONS ................................................................................................................ 48
INVESTMENT RISKS ......................................................................................................... 49
FINANCIAL PRODUCT RESEARCH SUMMARIES .................................................................. 51




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                                 PRIVATE AND CONFIDENTIAL



Welcome to Consultum Financial Advisers
Thank you for the opportunity to gain a clear understanding of your current situation, as well
as your personal and financial objectives, and your attitude to investment risk and volatility.

With these factors in mind, we have developed and are pleased to present to you our
recommendations and strategies. Our primary aim has been to meet your financial
objectives, and ensure your peace of mind now and into the future.

What Areas Will My Advice Cover?
The advice provided in this Statement of Advice is given on the basis that you require a full
analysis of your personal financial situation.

You have provided us with all relevant information through the completion of the Fact Find.

OR
The advice provided is given on the basis that you specifically instructed that you do not
wish us to undertake a full analysis of your personal and financial situation. You have
advised me that you would like us to limit our advice to the following areas:
     Debt management strategies
     Risk management and insurance planning
     Wealth accumulation strategies
     Regular savings and education funding planning
     Gearing strategies
     Salary packaging
     Superannuation planning
     Investment structures
     Redundancy planning
     Retirement income streams
     Social security planning
     Aged care facilities
     Estate planning strategies
     Investment advice
     OTHER
Accordingly, we will not be covering e.g. risk management or estate planning. We
recommend that you seek specialist advice in order to determine and assess your insurance
and estate planning requirements. If you do not know an insurance specialist or a Legal
Adviser, please let me know and I’ll be happy to make a referral.

Limitations on the Advice Being Provided
 Products Approved by the Licensee
 Tax Advice Restrictions
 Legal Advice Restrictions



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                                PRIVATE AND CONFIDENTIAL


Incomplete and/or Inaccurate Information
It is important that you understand that appropriate advice may not be provided adequately
without a complete analysis of your personal and financial situation. Prior to proceeding, you
should assess and review the recommendations contained in this report, and ensure that
they are appropriate to you in light of your particular circumstances, needs and objectives.




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                                PRIVATE AND CONFIDENTIAL



Executive Summary
The following is a brief outline of some of the important information included to assist you in
understanding our recommendations and make an informed decision about whether to act
on our advice:
    Our understanding of your personal situation, your financial needs and objectives
        and your attitude to investment risk.
    How and why the recommendations meet your objectives.
    How we are paid for the advice we are providing to you.
    How to implement the advice.
    Additional supporting information about our recommendations.

What You Wish To Achieve




Summary of Recommendations




Summary of Expected Outcomes
Based on our financial analysis and modelling, should you proceed with the
recommendations contained within this report, I anticipate the following outcomes:




Please note the anticipated outcomes should be used purely as a guide. These outcomes
may vary significantly over the long term, depending on a number of factors, for example,
investment performance, changes to legislation, changes to your personal circumstances,
and so on.


Fees and Commissions
Specific details on the fees, commissions and benefits relevant to my advice can be found
under the ‘Disclosure of Commissions, Fees and Benefits’ section of this SOA.

What You Need to Do To Proceed
To decide whether to follow my advice, you should:

 Make sure you understand my advice
 Ask me any questions you may have

To follow my advice, complete the “Authority to Proceed” at the end of this document and
return it to me.



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                               PRIVATE AND CONFIDENTIAL



SECTION 1: IMPORTANT INFORMATION
ABOUT YOU
Current Situation
The information below represents a summary of the information collected in your Fact
Finder.

Please read the below information to ensure that it is correct prior to proceeding with any
recommendations contained in this Statement of Advice. If any of the information is
incorrect, please advise us immediately so that we can ensure our recommendations are still
appropriate to your needs.

Personal Details

 First Name(s):
 Surname:
 Address:
 Date of Birth:
 Current Age:
 Marital Status:
 Health Status:
 Smoker Status:
 Employment Status:
 Occupation:
 Annual Salary:

Children and Dependant Details

 Dependent Name              Dependant Age        Dependant             Monetary outlay
                                                  until age?              Required




You do not have any children or any other people financially dependent on you.


Current Assets and Liabilities
Personal Use Assets

                                              Owner                 Current Value
 Primary Residence                            Joint
 Total Personal Use Assets                                          $


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                           PRIVATE AND CONFIDENTIAL


Investment Assets

                                        Owner         Current Value
 Cash at Bank                           Client 1


 Total Investment Assets                              $

 TOTAL ASSETS                                         $


Liabilities

                                        Owner         Current Value
 Credit Card                            Client 1
 Home Mortgage                          Joint


 Total Liabilities                                    $



 NET WORTH                                            $



Current Income and Expenditure Details
Income
                                        Owner         Annual Amount
 Base Salary                            Client 1


 Total                                                $

Expenses
                                        Owner         Annual Amount
 Cost of Living                         Joint




 Total                                                $



 ESTIMATED SURPLUS / (DEFICIT)                        $




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                               PRIVATE AND CONFIDENTIAL


Existing Insurance Details

Insurer/       Type of    Policy     Life       Sum         Waiting    Benefit      Premium $
Product        Cover      Owner      Insured    Insured     Period     Period

Asteron        IP         Client 1   Client 1   $8,000      90 days    5 years      $170.00 pm
Income
Advantage




Existing Estate Planning Details

                                     [insert client name]        [insert partner name]
 You have a Will in place?           Yes
 Is the Will Current?                No
 Power of Attorney in place?         No
 Enduring Guardianship?              N/A




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                                 PRIVATE AND CONFIDENTIAL



Your Goals and Objectives
The most important factors that influence our recommendations are the personal and
financial objectives that you wish to achieve and you have determined they are as follows:

       You require…..
       You need….
       You expect….
       You would like….
       You desire….
       You want…..
       You plan to….
       You seek….



Your Investment Risk Profile
Before making an investment decision it is important that you are comfortable with and
understand the risks associated with investments. Your tolerance to risk, along with the
level of return that you desire from your investments will have an important impact on how
we invest your monies now and in the future.

Put simply, the relationship between risk and return is that, where you take a low amount of
risk in investing, you can also expect a low return. Conversely, investments that offer high
returns will generally also be more ‘risky’ in the sense that they will be subject to greater
volatility, particularly over the short-term.

In order to achieve an investment that offers a level of return that you desire, at a level of risk
that you are comfortable with, it is important that we determine your ‘risk tolerance’ or ‘risk
profile’. To determine your ‘risk profile’, we undertook a Risk Analysis questionnaire. This
asked a number of questions about your attitude towards risk, and investing experience and
expectations. We then reviewed your objectives in terms of income and growth, your
investment timeframe and your current investment profile. Following this, we agreed to
classify you as having a/an [Insert Risk Profile type] risk profile.

In determining your investment risk profile, we were able to determine the asset allocation
that meets your tolerance to risk and investment objectives.

The following explains the features of [a/an] [Insert Risk Profile type] investor type.

Capital Safe
A 'Capital Safe' investor:
 You seek to preserve and protect your entire capital base and worry when this does not
    occur.
   You have little or no understanding of the investment markets and their operation.
   When you think of the term risk, you think it means “very high danger”.
   When you make a financial decision, you always focus on the possible losses.
   You seek basic returns and do not wish to take on any level of risk
   With your present investment monies, you would prefer no exposure to risk at all.




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                                    PRIVATE AND CONFIDENTIAL


   The probability of a negative return in any one year is 0%.
   Recommended investment time-frame is 1 to 3 years.
   Investment returns over the long-term should be safe from market volatility.
   This investment portfolio is made up of around 100% defensive assets and 0% growth
    assets.
Most investors regard risk as being the potential to suffer a loss of capital during the term of
the investment. Adopting the above investment risk profile means that you have understood
and accepted the potential risk of negative returns across investments within your portfolio.

Target Asset Allocation – Capital Safe




                 60.00%
         Domestic Fixed Interest
                                                                          10.00%
                                                                       Domestic Cash




                                                                                  30.00%
                                                                       International Fixed Interest




     Allocation Classes      Domestic Cash   Domestic Fixed Interest   International Fixed Interest


Conservative
A 'Conservative' investor:
 You seek to protect your capital and are somewhat concerned when this does not occur.
   You have a very basic understanding of the investment markets and their operations.
   When you think of the term risk, you think it means “danger”.
   When you make a financial decision, you usually focus on the possible losses.
   You seek moderate returns and do not wish to take on more than a low level of risk
   With your present investment monies, you would be comfortable taking very low risks
    and you are not very comfortable with the concept of risk.
   Historically, the probability of a negative return in any one year is 5%.
   Recommended investment time-frame is 3 to 5 years.
   Investment returns over the long-term aim to be better than the CPI.
   This investment portfolio is made up of around 70% defensive assets and 30% growth
    assets.
Most investors regard risk as being the potential to suffer a loss of capital during the term of
the investment. Adopting the above investment risk profile means that you have understood
and accepted the potential risk of negative returns across investments within your portfolio.

Target Asset Allocation – Conservative




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                                       PRIVATE AND CONFIDENTIAL



                    12.00%
                 Domestic Equity
                                                                             21.00%
                                                                          Domestic Cash
                 26.00%
         Domestic Fixed Interest




                                                                                     23.00%
                   8.00%
                                                                          International Fixed Interest
              Domestic Property
                     10.00%
              International Equity

      Allocation Classes       Domestic Cash       Domestic Equity        Domestic Fixed Interest
                               Domestic Property   International Equity   International Fixed Interest


Moderately Conservative
A ‘Moderately Conservative’ investor:
 You are prepared to establish a diversified portfolio to partially protect you from inflation
    and tax.
   You have a general understanding of the investment markets, but would like to have a
    broader understanding in order to explore the possibilities.
   When you think of the term risk, you think it means “uncertainty”.
   When you make a financial decision, you are more focused on the possible losses, but
    also keep in the mind the possible gains.
   You are prepared to accept a moderate level of risk volatility in the overall capital value
    of your investments.
   You are generally a low risk taker and are somewhat comfortable with the concept of
    risk.
   Historically, the probability of a negative return in any one year is 11%.
   Recommended investment time-frame is 3 to 5 years.
   Investment returns over the long-term aim to be CPI plus 2-3% pa.
   This investment portfolio is made up of around 50% defensive assets and 50% growth
    assets.
Most investors regard risk as being the potential to suffer a loss of capital during the term of
the investment. Adopting the above investment risk profile means that you have understood
and accepted the potential risk of negative returns across investments within your portfolio

Target Asset Allocation – Moderately Conservative




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                                      PRIVATE AND CONFIDENTIAL



                                                                            24.00%
                                                                         Domestic Equity



                 24.00%                                                     10.00%
         Domestic Fixed Interest                                         Domestic Cash



                                                                                    14.00%
                                                                         International Fixed Interest
                   9.00%
              Domestic Property
                                                                                19.00%
                                                                         International Equity


      Allocation Classes      Domestic Cash       Domestic Equity        Domestic Fixed Interest
                              Domestic Property   International Equity   International Fixed Interest


Moderate Growth
A ‘Moderate Growth' investor:
 You wish to adopt a diversified portfolio to somewhat protect you from tax and inflation.
   You have a reasonable understanding of the investment markets and their operation.
   When you think of the term risk, you think it means “possibilities”.
   When you make a financial decision, you are more focussed on the possible gains, but
    also keep in mind the possible losses.
   You can accept that there will be some level of volatility in the value of your investments.
   You are a moderate risk taker and can accept some moderate levels of investment risk.
   Historically, the probability of a negative return in any one year is 17%.
   Recommended investment time-frame is 5 to 7 years.
   Investment returns over the long-term aim to be CPI plus 3-4% pa.
   This investment portfolio is made up of around 30% defensive assets and 70% growth
    assets.
Most investors regard risk as being the potential to suffer a loss of capital during the term of
the investment. Adopting the above investment risk profile means that you have understood
and accepted the potential risk of negative returns across investments within your portfolio.

Target Asset Allocation – Moderate Growth




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                                      PRIVATE AND CONFIDENTIAL



                                                                            35.00%
                                                                         Domestic Equity




                 17.00%                                                     5.00%
         Domestic Fixed Interest                                         Domestic Cash
                                                                                     8.00%
                                                                         International Fixed Interest
                   10.00%
              Domestic Property
                                                                                25.00%
                                                                         International Equity


      Allocation Classes      Domestic Cash       Domestic Equity        Domestic Fixed Interest
                              Domestic Property   International Equity   International Fixed Interest


Growth
A ‘Growth’ investor:
 You desire to invest in a broad spread of quality investments, but predominantly in
    growth assets to achieve higher growth.
   You understand that investment markets can and will fluctuate and that different market
    sectors offer different levels of risks, income and growth.
   Your investment time horizon is for the long-term of seven or more years.
   When you think of the term risk, you think it means “opportunity”.
   When you make a financial decision, you usually focus on the possible gains.
   You are a high risk taker and can accept higher levels of investment risks.
   You are seeking to achieve a reasonably high rate of growth on the capital invested.
   Historically, the probability of a negative return in any one year is 20%.
   Recommended investment time-frame is 7 years plus.
   Investment returns over the long-term aim to be CPI plus 4-5% pa.
   This investment portfolio is made up of around 15% defensive assets and 85% growth
    assets.
Most investors regard risk as being the potential to suffer a loss of capital during the term of
the investment. Adopting the above investment risk profile means that you have understood
and accepted the potential risk of negative returns across investments within your portfolio.

Target Asset Allocation – Growth




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                                      PRIVATE AND CONFIDENTIAL



                                                                            45.00%
                                                                         Domestic Equity




                                                                            2.00%
                  9.00%                                                  Domestic Cash
         Domestic Fixed Interest
                                                                                     3.00%
                                                                         International Fixed Interest
                   10.00%
              Domestic Property
                                                                                31.00%
                                                                         International Equity



      Allocation Classes      Domestic Cash       Domestic Equity        Domestic Fixed Interest
                              Domestic Property   International Equity   International Fixed Interest


High Growth
A ‘High Growth’ investor:
 You are interested in capital growth and accumulating wealth more quickly relative to
    your investment time-frame.
   You understand the cyclical nature of investments and accept that there will be a very
    high level of volatility in the value of your investments.
   You are experienced in all major investment markets and have a very good
    understanding of the investment markets. You are aware of the factors that may affect
    investment performance in investment markets.
   Your investment time horizon is for the long-term of seven or more years.
   When you think of the term risk, you think it means “thrill”.
   When feel you make a financial decision, you always focus on the possible gains.
   You can accept very high levels of variability in investment returns, as you understand
    that the higher the risks associated with investments, potentially the higher level of
    returns expected.
   Historically, the probability of a negative return in any one year is 22%.
   Recommended investment time-frame is 7 years plus.
   Investment returns over the long-term aim to be CPI plus 5% or more pa.
   This investment portfolio is made up of around 0% defensive assets and 100% growth
    assets.
Most investors regard risk as being the potential to suffer a loss of capital during the term of
the investment. Adopting the above investment risk profile means that you have understood
and accepted the potential risk of negative returns across investments within your portfolio.

Target Asset Allocation – High Growth




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                                  PRIVATE AND CONFIDENTIAL



                                                                               50.00%
                                                                            Domestic Equity




           10.00%
      Domestic Property



                                                                                   40.00%
                                                                            International Equity

           Allocation Classes   Domestic Equity   Domestic Property   International Equity


Warning!
If you feel that the above investment risk profile is not suitable or does not
adequately reflect your attitude towards investment risk and volatility, then please
contact me immediately, as it is important we discuss this further prior to
implementing any recommendations.




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                                 PRIVATE AND CONFIDENTIAL



SECTION 2: RECOMMENDATIONS AND
STRATEGIES
Strategy Development – Alternative Strategies
and Products Considered
In constructing this Statement of Advice we have considered a number of alternative
investment strategies for analysis and comparison. We have developed the enclosed
strategy comprehensively, as we believe it is the most appropriate to your long term needs
and objectives, and also taking into account your current financial situation, and attitude to
investment risk and volatility.

Since our initial interview, and during the process of developing this report, we have
considered a number of alternative strategies, before confirming the recommended strategy
as the most appropriate to your particular needs and objectives.

Alternative strategies and products considered:

       Leave your investments as they are
       Leave funds in your low-yielding bank account
       Invest your funds in an Allocated Pension
       Cashing your superannuation at retirement (as lump sum)
       Setting up a Self Managed Superannuation Fund
       Salary Sacrifice your income into Superannuation
       Invest your funds in managed funds
       Invest your funds in listed Australian Shares
       Invest your funds in a term deposit
       [OTHER]

The above strategies were not considered appropriate for your situation as…..

Alternative strategies and products considered – Risk Insurance:

 Self Insuring
One option in relation to personal risk insurance is to “self-insure”, i.e. not implement any risk
insurance policies. We do not believe this is appropriate for you as you would not be able to
support your financial needs in the event that you were unable to work, suffered a serious
illness, became totally disabled or died.

 Retain existing insurance policies
We considered retaining your existing insurance policies, however after reviewing these
policies we believe we are able to provide you with a similar level and quality of cover at a
cheaper premium / higher quality policy for a similar premium.

 Retain current level of cover
We considered retaining your current level of cover within your existing insurance policies;
however after reviewing your personal and financial circumstances we believe that you
require an increase / decreased level of cover.

 Income Protection via superannuation




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                                PRIVATE AND CONFIDENTIAL


We considered recommending an income protection policy via a superannuation fund,
however we believe income protection is more appropriate for you outside superannuation
as the premiums are tax deductible to you, and additionally because you require income
protection cover with a benefit period up to age 65 (most income protections policies within
super provide a benefit for up to 2 years).

 Income Protection outside superannuation
We considered recommending an income protection policy outside superannuation, however
we were able to obtain income protection cover for you at a significantly cheaper premium
within superannuation. Additionally, the insurance premium will be paid within your
superannuation fund (from the earnings on your super).

 Term Life and TPD Cover via superannuation
We considered recommending a Term Life and TPD policy via your superannuation fund,
however as you already have significant Term Life and TPD insurance via your
superannuation fund, we have recommended a stand alone Term Life and TPD policy.

 Term Life and TPD Cover outside superannuation
We considered recommending a Term Life and TPD policy outside superannuation, however
we are able to obtain this type of cover for you at a significantly cheaper premium within
superannuation. Additionally, the insurance premium will be paid within your superannuation
fund (from the earnings on your super).

 Trauma Insurance
We considered recommending a Trauma insurance policy which would provide you with a
lump sum in the event of a serious illness. However, as trauma insurance is a relatively
expensive insurance cover, given that you have some capital available outside
superannuation which could be called upon in the case of a traumatic event, we have not
recommended this type of insurance.

If you would like to explore any of the above strategies/products in more detail or require any
further information, please contact us and we will be happy to assist you.




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                                PRIVATE AND CONFIDENTIAL



Recommendations
The recommendations below have been developed based on your investment risk profile,
personal and financial goals and objectives and any other specific requests made by you.
They have been developed to assist you meet your stated objectives, where this cannot be
achieved; we have detailed the reasons for this.

STRATEGY RECOMMENDATIONS

In order to meet your stated personal and financial goals and objectives, we recommend the
following:


RECOMMENDED ACTION



REASONS FOR THE RECOMMENDATION AND TYPE OF PRODUCT SELECTED




Advantages of my Recommendation:




Disadvantages of my Recommendation:




RECOMMENDED PRODUCT/S FOR THE STRATEGY

In consideration of your investment risk profile, our financial product recommendations are
made following an in-depth assessment of the fund manager styles, management ability,
past performance and fund objectives. OR We recommend you invest $[amount] in the IOOF
Portfolio Service. Within the IOOF platform, we recommend you invest in the High Growth
Model Portfolio.

 Product                           Owner     Amount                Transaction Type
 IOOF Share Value Trust             C1       $100,000              Purchase
 IPS Super – ABC Cash Fund          C2       $20,000               Switch Out
 IPS Super – DEF Fund               C2       $20,000               Switch In
 IPS Super – MNO Fund               C1       $30,000               Hold

From the Research Report attached on [Insert Product Name], the recommended time frame
for the investments in this fund is [Insert recommended time frame]. This is in line with your
Investment Risk Profile, where the recommended time frame for your investments to be held
is [Insert number of years] years. During this investment period, you must be made aware
that there may be times when the value of your investment may fall below the value of the
initial amount invested.




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                               PRIVATE AND CONFIDENTIAL


Please refer to the attached “Research Reports” on each recommended Investment, for
more information on specific investments.

REASONS FOR PRODUCT PROVIDER SELECTION


Replacement Product Information
Where we have recommended that you replace existing products with products
recommended within this Statement of Advice, we have done so on the basis that we have
considered these investments to be more appropriate to your stated needs, circumstances
and objectives. However, it is also important that we highlight to you any costs incurred, or
benefits lost in replacing products as recommended.

We have therefore summarised this information as follows:


BENEFITS LOST



FEES & CHARGES APPLICABLE
 Buy/Sell differentials may be applicable. This represents a cost for the buying and
    selling of investments. Please refer to the Product Disclosure Statement for further
    information.

 You will incur fees for the professional management of your investments. These fees
    include Management Expense Ratio’s (MER’s), Additional Administration costs and are
    detailed in full within your Product Disclosure Statement.
 Exit Fee / Entry Fee etc


Please refer to the Disclosure section of this document for initial and ongoing fees relevant
to this recommendation.


OTHER CONSEQUENCES OF REPLACING THE PRODUCT/S






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Portfolio Analysis
Asset Allocation and Your Portfolio
Your recommended asset allocation for each sector is primarily determined by your
investment risk profile and will be the most significant factor that affects the investment
returns you achieve within your portfolio and through our recommended strategy/ies.

We discussed your tolerance to investment risk and your investment return needs and your
decision to be considered a/an [insert risk profile type] investor. This has largely determined
the asset allocation that we have proposed to you in our recommendations detailed earlier
and examined below.

The below table summarises:

     The recommended asset allocation for your investment risk profile
     Proposed asset allocation from our recommendations, and
     The variance between the recommended and the proposed asset allocation (if any)


 Asset Sector                    Risk Profile          Proposed        Variation between
                                Recommended          Allocation of      recommended &
                                  Allocation         Investments            proposed
                                      (%)                 (%)             allocation (%)
 Australian Cash
 Australian Fixed Interest
 International Fixed Interest
 DEFENSIVE ASSETS
 Australian Property
 Australian Shares
 International Shares
 GROWTH ASSETS
                                      100%               100%

Fund Managers may, within limits, vary the asset allocation of their investment portfolios
from time to time, depending on their views on investment markets. As a result, the asset
allocation of your investment portfolio may also vary from the figures shown within this
report. It is important that your portfolio is reviewed on a regular basis to ensure that your
overall portfolio asset allocation remains within the range appropriate for your selected risk
profile.

VARIATIONS IN YOUR ASSET ALLOCATION

Your holding in Australian/International Shares is greater than the recommended allocation.
This is due to your expectations to achieve high growth however in doing so you are
potentially subjecting your portfolio to greater volatility in the event of any adverse currency
movements




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OR
Your holding in Australian/International Shares is less than the recommended allocation.
This is due to the current state of the International/share markets and your concern to enter
the market in such a poor performing period. You would feel more comfortable entering at a
time where markets were expected to perform relatively better.

OR
Your holding in Property is greater than the recommended allocation. This is due to your
preference to invest in direct property and build a portfolio over the next 10 years.
Generally, you feel more comfortable with property investments and are happy to reduce
your required exposure to other asset sectors. Note that due to the cyclical nature of
property values or demands, this may impact the liquidity of your portfolio should you be
required to sell at short notice.

OR
Your cash/fixed interest holdings are greater than the recommended allocation. This is due
to your requirement to avoid volatility at all times. In the case of exceptional volatility in the
market this may be more advantageous should you consider investing in the market at a
later date.

OR
Your cash/fixed interest holdings are greater than the recommended allocation. This is as a
result of your objective to save for the purchase of an investment property in two years,
which requires an initial outlay of $50,000.




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Risk Management and Insurance
Insurance is essentially the transfer of risk from the insured to the insurance company. This
means, that the insurer agrees to compensate you if you suffer a loss. Without insurance,
you would have to pay for the financial loss, in full, yourself. Insurance Planning assists in
reducing or removing the financial distress experienced when this occurs. Generally you
should not risk more than you can afford to lose.

You have advised me that you do not require a comprehensive risk and insurance analysis.
Given your current financial situation, and your level of accumulated capital, you believe that
you would be able to maintain your current lifestyle in the event that your or your partner
become seriously ill, disabled, were unable to work, or passed away.

As such we have not conducted a risk insurance assessment for you in this report. We
recommend that you seek specialist advice in order to determine and assess your insurance
requirements. If you do not know an insurance specialist, we are happy to make a referral.

OR
You have advised me that you require a comprehensive risk and insurance analysis. Given
your current financial situation, and your level of accumulated capital, you don’t believe that
you would be able to maintain your current lifestyle in the event that your or your partner
became seriously ill, disabled, were unable to work or passed away.

Recommended Policies and Underwriters
Given your particular circumstances/requests and your current situation, you should consider
the following risk insurance recommendations.

The following table provides an analysis of the resources required to achieve your stated
objectives in the event of death, total and permanent disablement, or medical catastrophe.

 Description                          Death/Term         Disability/TPD           Trauma
 Debt To Clear
 Income Required (pa)
 Education Costs
 Medical Costs
 Other Amounts
 Total Capital Required
 Existing Insurance
 Disposable Assets
 Total Capital Resources
 Total Capital                                       $                    $                       $
 Shortfall/Surplus


Term Life and Total and Permanent Disability (TPD) Insurance Recommendation
                                             [insert client name] [insert partner name]
 Recommended Life company
 Recommended Product
 Policy Owner (if different to life insured)
 Beneficiary
 Death Benefit insured*
 TPD Benefit insured*


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                               PRIVATE AND CONFIDENTIAL


 Annual premium*
 Exclusions
*We have recommended these levels of cover based on the above analysis of the resources
required to achieve your stated objectives in the event of death, total and permanent
disablement, or medical catastrophe.


WHY DO YOU NEED TERM LIFE AND TPD PROTECTION?
To extinguish your debts in the event that you may die or become totally and permanently
disabled.
 To provide a lump sum payment to generate an income to support your family in the
     event that either of you die or become totally and permanently disabled.
 Because you do not have sufficient capital backing to maintain your standard of living if
    you become totally and permanently disabled.


REASON FOR LIFE COMPANY AND POLICY SELECTION
[Insert name of Life Company] offers the most competitive rates, definitions and policy
conditions. Although not the cheapest rate on the market, you now have full access to the
following features:
     o [insert features]

   Provide reason for selecting Stepped or Level Premium
   Provide an explanation of why insurance is stand-alone or via Superannuation
   With TPD recommendation, provide reason for selecting Any or Own Occupation
   It is recommended that you maintain this policy throughout your life (or until you are
    considered “self-insured”, i.e. when you have no debts and have a high level of
    savings/wealth accumulated).


DOES MY ADVICE HAVE ANY DISADVANTAGES?
 Claiming for Total and Permanent Disability can be timely and a difficult exercise
  depending on the nature of the TPD cover, indicating that a benefit may not be paid out
  for up to 6 months, or in some circumstances longer, due to medical requirements and
  administration subject to underwriters
 Your application will need to be processed by underwriting to give you a clean bill of
  health prior to accepting your policy application
 In the levels of cover or features are inadequate, you may not be covered for a particular
  injury or for a suitable length of time
 You will need to include within your budget an additional amount to cover the cost of the
  Term/TPD Insurance


Trauma Insurance Recommendation
                                          [insert client name]      [insert partner name]
 Recommended Life company
 Recommended Product
 Policy Owner (if different to life insured)
 Amount insured*
 Annual premium*
 Exclusions
*We have recommended this level of cover based on the above analysis of the resources
required to achieve your stated objectives in the event of medical catastrophe.




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WHY DO YOU NEED TRAUMA INSURANCE?
 To provide a lump sum payment in the event that you suffer a traumatic event, and may
  require expensive medical treatment.
 To fund any changes to your lifestyle (eg. home renovations) that may be required as a
  result of a traumatic event.
 To allow you to take time out to recover before returning to work.
 To supplement your income protection policy (as you are only able to insure up to 75%
  of your income via income protection).


REASON FOR LIFE COMPANY AND POLICY SELECTION
[Insert name of Life Company] offers the most competitive rates, definitions and policy
conditions. Although not the cheapest rate on the market, you now have full access to the
following features:
     o [insert features]

 Provide reason for selecting Stepped or Level Premium
 It is recommended that you maintain this policy throughout your life (or until you are
    considered “self-insured”, i.e. when you have no debts and have a high level of
    savings/wealth accumulated).


DOES MY ADVICE HAVE ANY DISADVANTAGES?
 Your application will need to be processed by underwriting to give you a clean bill of
  health prior to accepting your policy application
 If the level of cover or features are inadequate, you may not be covered for a particular
  Trauma for a suitable length of time
 The amount of insurance cover recommended is only sufficient to replace your debt and
  medical expenses. You may need to rely on other forms of accumulated funds to cover
  other expenses
 You will need to include within your budget an additional amount to cover the cost of the
  Trauma Insurance


Income Protection

The following table provides an analysis of your income protection needs.
 Description
 Occupation
 Annual Remuneration Package
 Less Income Not Affected By
 Disability
 Less Total Existing Income
 Protection
 Additional Benefit Required

Notes:
 All amounts are expressed as monthly figures unless otherwise indicated.
 Premiums for income protection policies are tax deductible under section 8(1) of the
  Income Tax Assessment Act




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Income Protection Recommendation
                                            [insert client name]           [insert partner name]
  Recommended Life company
  Recommended Product
  Monthly Benefit Insured*
  Waiting period
  Accident Benefit Period
  Sickness Benefit Period
  Benefit period
  Annual premium (tax deductible)
  Exclusions
  Agreed or Indemnity
  Guaranteed or Renewability
  Stepped or Level
*We have recommended this level of cover based on the above analysis of the resources
required to achieve your stated objectives in the event that you were unable to work due to
illness or injury. The level of cover you can purchase is restricted, normally to 75% of your
income earned.


WHY DO YOU NEED INCOME PROTECTION?
 To be able to provide a regular monthly income in case you are unable to work due to
  injury or illness.
 So that you are able to continue to maintain your existing loan repayments if you are
  unable to work.
 Because you do not have sufficient capital backing to maintain your standard of living if
  your income ceases.
 Because you would not be able to maintain your standard of living if you were unable to
  work.

 In addition, for a self-employed person, business overheads cover should be considered
  should you incur significant expenses in generating your income. Typically, fixed
  expenses can be covered, for example, rent and leasing payments.


REASON FOR LIFE COMPANY AND POLICY SELECTION
In consideration of the desired waiting and benefit periods and a monthly benefit of $[insert
amount] I advise that [insert name of life company] is the most appropriate Insurer for you
circumstances, due to this company delivering the crucial features mentioned below.
 [Insert name of Life Company] offers the most competitive rates, definitions and policy
    conditions. Although not the cheapest rate on the market, you now have full access to
    the following features:

        Guaranteed Renewability of policy.
        Agreed Value Contract.
        Duty based definition of Total Disablement.
        Partial Disablement Benefit.
        24-hour world-wide cover.
        Ability to return to work for limited period during the Waiting Period.
        Benefit Period paid up to age 65.
        Indexation of Claim Payments.
        Waiver of Premiums.

 The policy is the highest rated contract in terms of qualitative definitions and should
  therefore provide you with the most comprehensive cover.


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 The policy rates highly in terms of qualitative definitions and is competitively priced
  offering you good value for money in terms of comprehensive cover and price.
 The policy rates satisfactorily in terms of qualitative definitions but is very competitively
  priced offering you a sound level of cover at a relatively cheap price.
 The policy is the cheapest available and although it may not be as comprehensive as
  other policies available, keeping the price at a minimum is the primary objective.
 This policy has the option of allowing an additional, but a maximum, of 15%
  superannuation contributions be made in addition to the proceeds payable to you.
 Provide reason for selecting Stepped or Level Premium
 Provide reason for selecting Waiting Period
 Provide reason for recommending Benefit Period [if not to age 65]
 Provide reason for selecting Agreed or Indemnity Policy


DOES MY ADVICE HAVE ANY DISADVANTAGES?
 The amount of income protection cover will not be available to support you during the
  waiting period at the time of the claim, and you will need to use your own funds during
  this period
 The amount of insurance cover recommended is only sufficient to replace your income
  until the Benefit Period prescribed above. You may need to rely on other forms of
  income after this time
 Your application will need to be processed by underwriting to give you a clean bill of
  health prior to accepting your policy application
 You will need to include within your budget an additional amount to cover the cost of the
  Income Protection Insurance


Life Cover held Inside Superannuation
The structure of insurance policies is an important estate planning consideration. With the
right planning you can transfer funds to your beneficiaries and also minimise the tax they will
pay on receiving the lump sum. An important consideration is whether life insurance should
be held within or outside your superannuation fund.
You need to consider the amount you have or will have accumulated in superannuation plus
the level of life cover as well as who will be the beneficiary of these funds.
The premiums for this insurance will be debited directly from the earning of your super fund,
meaning that you do not have to fund the premium from your after tax income.

Business Succession Planning
If you are a business owner, consideration should be given to appropriate implementation of
insurance products structured to facilitate any potential buy options and ensuring capital
gains tax implications are looked after. This area will need to be discussed with your
accountant and/or solicitor.

Replacement Product Information
Please find below a summary of the benefits that you may lose from your current financial
products and the benefits gained through the financial products recommended in this report,
as well as an outline of any fees and charges associated with the disposal.


Benefits Lost
 For a certain period of time you may not be able to claim under the new financial product
   for death by suicide



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Fees & Charges Applicable
 No fees and charges apply to the replacement of your policy


Please refer to the Disclosure section of this document for initial and ongoing fees relevant
to this recommendation


Other Consequences of Replacing the Product(s)
 As you are older now than when you took out your existing policy, you may have to pay
   higher premiums
 If your health has changed since you took out your existing policy, there may be more
   restrictions in your new policy and you may have to pay a higher premium
 You may have to undergo new medical tests



NOTE: You should not cancel any of your existing policies until your application/s
have been accepted by the recommended insurer.




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Estate Planning
Estate Planning is the process of planning and documenting the wishes of a person in
relation to the distribution of assets, in the event of their death, or the administration of their
assets in the event they are unable to do so themselves.

Devising an appropriate estate planning strategy requires the involvement of legal,
accounting and financial specialists to ensure that the right funds get into the right hands, at
the right time.

The broad issues that need to be considered in Estate Planning are:
    Is there a properly drafted Will?
    Have appropriate Powers of Attorney been organised?
    Is a Testamentary Trust appropriate?
    Have you made nominations for Superannuation?
    Who will receive the proceeds of your Insurance policies?

Wills
A Will is a legal document. It allows you to choose who will receive your assets and
belongings after you die and who will be responsible for managing your estate.

Clearly, it is critical that you receive expert and appropriate advice on the distribution of your
assets following death, otherwise your intentions may not be met.

Estate Planning is an extremely complex area and you should be seeking expert advice in
the preparation of your Will to ensure that all of the potential complexities that may result
following death are adequately catered for.

Wills should be reviewed regularly or following a major change in personal circumstances
such as marriage or divorce (a Will is invalid following marriage or remarriage), or the birth of
children.

You should consult your legal adviser when making and reviewing your Will.

Power of Attorney
A Power of Attorney is a formal written document that provides the power to another person
to act on your behalf. Nominating a Power of Attorney is an important part of the estate
planning process, as it ensures that you have someone to rely on to manage your affairs if
you become unable to do so, for example, in the case of illness. For this reason you should
only grant a Power of Attorney to someone you trust implicitly, who will look after your best
interests at all times.
There are three types of Power of Attorneys: General, Medical, and Enduring Powers of
Attorney.

You should consult your Legal Adviser prior to granting any Power of Attorney. He or she
will be able to draft your Power/s of Attorney if you so desire.

Superannuation Binding Nominations
Superannuation is an asset that does not generally form part of your estate. This is due to
the fact that the Trustee of the Superannuation Fund is required to distribute your
superannuation monies in accordance with the Trust Deed.




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Binding nominations are an option that most superannuation fund Trustees offer to their
members. They enable you to provide certainty as to who will be distributed the
superannuation proceeds in the event of your death.

When nominating your beneficiaries, it is important to consider who is a dependant under the
Tax legislation (as the definitions under SIS legislation are different) in order for the benefits
to be distributed tax effectively.


Recommended Action
As important as it is to have a long-term financial plan whilst you are alive, it is equally
important to plan for how your estate should be managed after you pass away.

Given the nature and complexity of this area, we recommend that you seek expert legal
advice to discuss your personal situation with regard to:

     Reviewing the specific details of your Wills with a Legal Adviser after implementing
      the strategies contained within this report
     Distributing your superannuation benefits through the appointment of binding
      nominations, and thus determining the appropriate distribution of the remainder of
      your estate
     The implication of appointing Powers of Attorney and whether it is appropriate in your
      circumstances
     Appointing Legal Guardians for your children

If you do not have a Legal Adviser, please let me know and I will be happy to refer you to
one.

We also recommend that you ensure that your nomination of beneficiaries to your
superannuation monies is current. It is important for you to nominate the beneficiaries of
your superannuation fund in accordance with the procedures of the fund of your
superannuation monies. Maintaining current nominations of beneficiaries ensures that the
Trustee of your superannuation fund considers your wishes when determining the
distribution of the superannuation proceeds in the event of your death.




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SECTION 3: IMPLEMENTING YOUR STRATEGY
Benefits Of Implementing Your Plan
This financial plan has been designed specifically for you, in light of your personal
circumstances, attitude to risk and investment volatility, and most importantly it aims to
achieve the objectives and goals that you have specifically discussed with me.
Accordingly, I anticipate that implementing this financial plan will help achieve your goals
and objectives as follows:
 You will retain/establish a cash reserve of [insert $ amount] available for any unexpected
  or emergency expenditure.
 Your income needs of [insert $ amount] after tax will be met, and your income will grow
  over time in order to maintain your standard of living.
 You are able to meet your planned expenditure [detail expenditure, eg holiday, new car]
  as a result of the savings strategy recommended / by drawing upon liquid investments.
 You are able to extinguish your home loan/car loan/all debts in the next [insert no. of
  years] years, by consolidating and efficiently managing your debts/allocated all of your
  surplus income to reducing your debts as soon as possible..
 By investing in long term growth assets you are likely to accumulate greater wealth over
  the long term to help fund your retirement needs.
 You are able to reduce the volatility of your portfolio and secure more stable returns over
  the medium term by investing in defensive style assets.
 You will reduce the overall risk of your portfolio by diversifying your investments across a
  range of asset classes and investment sectors.
 You are able to reduce your combined tax liability by splitting your assets and income
  effectively/employing a salary sacrifice strategy. This will also help bolster your
  superannuation nest egg to fund your retirement needs.
 You will be adequately covered in the event that either of you become seriously ill, totally
  and permanently disabled, or in the event that you pass away.
 You are likely to have sufficient capital to meet your retirement goal of retiring in [insert
  no. of years] years.
 You will be able to access the Age Pension/Newstart Allowance to supplement your
  income requirements.
Most importantly, we will be able to ensure that your long-term financial strategy remains
appropriate to your changing needs, objectives, and personal circumstances, as we continue
to review your situation on an ongoing basis.
Please refer to the “Projections and Assumptions” section in the Appendix of this Statement
of Advice for more information on projected figures for income and growth.




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Ongoing Reviews and Portfolio Valuations
Implementing the recommendations outlined in this Statement of Advice is a step towards
securing your future towards achieving financial independence. It is important that we
review these recommendations over time to ensure your objectives and needs continue to
be met and that your long-term strategy remains appropriate to your goals and personal
circumstances.

The ongoing review process aims to:
 Inform us of changes in your personal and financial circumstances that may affect your
   recommended strategy;
 Provide you with an update on the economic environment, and any investment and
  legislative changes that may affect your recommended strategy;
 Provide you with reports on your investment portfolio and its valuations; and
 Recommend any changes required to your investment strategy and/or investment
  portfolio (where applicable)

Each of the above steps aims to keep your investment strategy tailored to your changing
personal and financial circumstances, particular needs and investment objectives.

In planning your financial future it is important to take a long-term approach. You need to
remember that for your objectives to be achieved, the recommended investment portfolio
must be invested for the time period suggested in this report. This does not and should not
prevent you from raising any concerns regarding your portfolio.


 Ongoing Service Offer        Cost                         Frequency
 Face to Face meetings        No further charges apply     Annually
 Statement of Advice          No further charges apply     Annually
 Statement of Advice          $500 plus GST                Annually
 Portfolio Valuation          No further charges apply     Twice Annually
 Newsletters                  No further charges apply     Quarterly
 Invitations to Seminars      No further charges apply     Ad hoc
 Phone Contact                No further charges apply     As required
 Centrelink Paperwork         $200 plus GST per annum      As required
 assistance & liaison
 Referrals to other           No further charges apply     As required
 professionals
 [ADD OTHER]




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Disclosure of My Commissions, Fees and
Benefits
How am I paid?

I am an authorised representative of, and act on behalf of Consultum Financial Advisers Pty
Ltd (“Consultum”), the holder of an Australian Financial Services Licence.

I am authorised by Consultum to provide financial planning advice in respect of products that
are listed on Consultum’s Approved Product List. This list includes several different
product/platform providers. For as long as I remain your adviser, these product providers
will pay me a commission upfront (initial commission) when you first invest in one of their
products, as well as (in most instances) an ongoing commission (trail commission), for as
long as you retain the investment. This commission is paid by the product providers to
Consultum (as the Licensee) and a percentage of the commission is then paid by Consultum
to [me] .… [Adviser to insert payment option]

[If Corporate Authorised Representative or Salaried employee please select one of the options
below]

Option 1 - [Individual who is operating under a Corporate Authorised Representative and
receives 100% of all commission and fees]

"me, through [Insert Corporate Entity name], a corporate Authorised Representative of
Consultum, that engages me to provide financial services for Consultum."

Option 2 – [ Individual / employee operating under a Corporate Authorised Representative and
receives commission only]

"[ Insert Corporate Entity name], a corporate Authorised Representative of Consultum, that
engages me to provide financial services for Consultum. [Insert Corporate Entity name] pays
me x% of this commission."

Option 3 - [Individual who is operating under a Corporate Authorised Representative and
receives part Salary and or part commission and fees]

 "[ Insert Corporate Entity name], a corporate Authorised Representative of Consultum, that
engages me to provide financial services for Consultum. [Insert Corporate Entity name] pays
me a salary of $x and / or y% of this commission."

Option 4 - [Adviser to insert remuneration method and receive approval from Professional
Standards]


I may also receive payment via the following methods:
    Financial Planning Advice Fees. These are fees that you may agree to, and are paid
       by you directly to me (fee for service) or indirectly to me by the product provider
       (known as an Adviser Service Fee).
    Other Benefits paid by product providers, and



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                                PRIVATE AND CONFIDENTIAL


        Other Benefits paid by Consultum.


Upfront and Ongoing Commission Payments from Product Providers

Upfront commission may be paid to Consultum by a product provider on each amount
contributed to your investment. Upfront commission is normally paid as a percentage of
each amount invested and is paid by the product provider out of the Contribution Fee that is
charged on each amount invested.

Ongoing commission may be paid to Consultum by a product provider. This usually forms
part of the product provider’s Administration Fee that is charged to your account by the
product provider for operating the investment (please refer to the ‘fees and charges’ section
in the relevant Product Disclosure Statement). Ongoing commission is calculated based on
your average daily account balance and paid monthly to Consultum from the Administration
Fees charged by the product provider for operating the investment. Therefore, the higher
your average daily account balance, the higher the Administration Fee charged to your
account and the higher the amount of commission paid to Consultum.

The table below details the upfront and ongoing commission to be paid to Consultum (as
well as the dollar amount of this commission paid to me) by the product provider if you
proceed with investment in the products recommended to you in this Statement of Advice.
Please note that the amounts below are estimates only and are based on your initial
investment. All commission amounts stated in the tables below are inclusive of GST.


Upfront and Ongoing Commission

                                                                                               Amount of
                                                                Amount of      Ongoing
                                                                                               ongoing
                                                                upfront        commission
                                                  Upfront                                      commission
                                   Contribution                 commission     (pa) paid to
                      Initial                     commission                                   (pa) paid to
Financial product                  fees paid by                 paid to me /   Consultum
                      investment                  paid to                                      me /
                                   client                       Corporate      (paid from
                                                  Consultum                                    Corporate
                                                                Authorised     Product
                                                                                               Authorised
                                                                Rep*           provider
                                                                                               Rep*
                          ($)       (%)    ($)     (%)    ($)        ($)        (%)      ($)         ($)




TOTAL:



[Only include * below if you are a Corporate Authorised Representative or an employee of the
Corporate Authorised Representative]

* Of the total upfront and ongoing amount payable to [Insert Corporate Entity name] from the
above table, I will be entitled to receive $xx.

NOTE: Please note that all additional or further contributions/rollovers to the [insert
investment name] may attract a [0%] contribution fee upon entry to the Fund.




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If Termination and withdrawal fees are applicable, they are charged to your investment
account upon full [and sometime partial] withdrawal from your investment within a specified
time-frame. For further details about termination and withdrawal fees and sliding scales that
can apply to your investments, please see the Product Disclosure Statement for further
details.

[INSERT IF NO UPFRONT COMMISSIONS IS PAYABLE FROM THE PROVIDER]
There is no upfront commission payable on your investment. Only ongoing commission
payments are made and where applicable, these have been disclosed.

[INSERT IF NO ONGOING COMMISSIONS IS PAYABLE FROM THE PROVIDER]
There is no ongoing commission payable on your investment. Only initial commission
payments are made and where applicable, these have been disclosed.

[INSERT IF NO ONGOING AND UPFRONT COMMISSIONS IS PAYABLE FROM THE PROVIDER]
There is no upfront or ongoing commission payable on your investment.


[INSERT & SELECT THE FOLLOWING OPTIONS WHERE YOU HAVE NEGOTIATED WITH THE
CLIENT TO CHARGE AN ADVISER SERVICE FEE ON ANY OF THE APPROVED PLATFORMS].

Financial Planning Advice Fees payable by the Product Provider

Adviser Service Fee

As agreed with you an additional “Adviser Service Fee” will be payable to me via Consultum
by the product provider as a financial planning advice fee on an ongoing basis and deducted
from your investment account. This fee will be calculated on the average daily balance of
your account and paid monthly in arrears.


Adviser Service Fees – Upfront / Ongoing / Once-Off

As agreed with you the following Adviser Service Fees will be payable to me via Consultum
by the product provider as a financial planning advice fee and deducted from your
investment account.

1. An “Adviser Service Fee - Upfront” for financial advice and services provided to you in
relation to the establishment of your account and subsequent investments made to your
account. This fee is deducted from your account at the time of making each investment.

2. An “Adviser Service Fee - Ongoing” for ongoing financial advice and services provided to
you in relation to your account. This fee is calculated daily on your account balance and
deducted monthly from your account.

3. an “Adviser Service Fee – Once-Off” for once-off financial advice and services provided to
you in relation to your account. This fee is deducted from your account.

The amount of Adviser Service Fee that you will be charged and that I will be paid is detailed
in the “Financial Planning Advice Fee” in the table below.

As explained in the relevant Product Disclosure Statement, the net cost charged to your
account by the product provider for the Adviser Service Fee(s) are less than the stated GST
inclusive amounts which accounts for the effect of reduced input tax credits.




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                               PRIVATE AND CONFIDENTIAL



Financial Planning Advice Fees [delete table if no fee/s are applicable]


                                                                                                         Amount of
                                             Amount of                     Amount of
                                                                                                          Adviser
                                               Adviser                       Adviser
                                Adviser                        Adviser                      Adviser       Service
                                            Service Fee –                 Service Fee –
                              Service Fee                   Service Fee                   Service Fee   Fee – Once
Financial        Initial                    Upfront paid                    Ongoing
                               – Upfront                    (– Ongoing)                   – Once Off        Off
product          investment                    to me /                    paid to me /
                                paid to                        paid to                      paid to     paid to me
                                             Corporate                     Corporate
                              Consultum                      Consultum                    Consultum     / Corporate
                                             Authorised                    Authorised
                                                                                                         Authorised
                                                Rep*                          Rep*
                                                                                                           Rep*
                     ($)      (%)    ($)         ($)        (%)    ($)         ($)        (%)    ($)        ($)




TOTAL:



[Only include * below if you are a Corporate Authorised Representative or an employee of the
Corporate Authorised Representative]

* Of the total upfront fee payable to [Insert Corporate Entity name] from the above table, I will
be entitled to receive $xx.
OR

* Of the total ongoing adviser fee payable to [Insert Corporate Entity name] from the above
table, I will be entitled to receive $xx.

OR

* Of the total once off fee payable to [Insert Corporate Entity name] from the above table, I
will be entitled to receive $xx.

OR

* This amount is made up of the [combination of charging method] of xx%/$xx and / or [Insert
charging method] of xx%/$xx per annum to me.


[INSERT THE FOLLOWING WHERE YOU HAVE NEGOTIATED WITH THE CLIENT TO CHARGE
A FINANCIAL PLANNING ADVICE FEE. THIS IS A FEE THAT IS CHARGED OUTSIDE OF THE
PRODUCT .

Financial Planning Advice Fees payable directly by you

As agreed with you an amount of $[Insert $ amount] is payable to me as a Financial
Planning Advice Fee.       This fee is based on [ADVISER TO INSERT CHARGING
METHODOLOGY], eg a % of funds under management/an hourly rate of $x/adviser to insert
methodology for charging].

As agreed with you an amount of $[insert $ amount] is payable to me for the preparation and
provision of this Financial Plan (Statement of Advice).




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                               PRIVATE AND CONFIDENTIAL


[ONLY INCLUDE IF YOU ARE RECOMMENDING INSURANCE]

Initial and Renewal Commission Payments from Life Companies

Once your insurance application(s) have been accepted by the insurance company (ies),
they will pay Consultum an initial commission which is normally based on the amount of the
first year’s premium for your policy. The base premium stated below does not include any
medical loadings, policy fees, stamp duty or statutory charges, as they will vary if a loading is
applied.

Renewal commission is paid to Consultum and is usually determined by applying a fixed
percentage based on the renewal premium that is payable by you to the Life Company/ies.
This amount is paid to Consultum on either a monthly, quarterly or annual basis (depending
on the provider), and is not charged separately against or in addition to your policy with the
Insurer. Renewal commission is not paid where you do not renew your insurance policy.
Please note that the amounts below are estimates only and the first renewal commission is
based on the first year’s annual premium.

Risk Insurance Commission

                                                            Initial                                Renewal
                                                            commission                             commission
                                   Initial 1st Year
 Risk insurance      Annual                                 paid to me /    Renewal commission     paid to me /
                                   commission payable to
 product             premium                                Corporate       payable to Consultum   Corporate
                                   Consultum
                                                            Authorised                             Authorised
                                                            Rep*                                   Rep*
                                                                                                           ($)
                         ($)         (%)          ($)            ($)          (%)        ($)




        TOTAL:

[Only include * below if you are a Corporate Authorised Representative or an employee of the
Corporate Authorised Representative]

* Of the total amount payable to [Insert Corporate Entity name] from the above table, I will be
entitled to receive $xx of upfront and $xx of renewal commission.

Please be aware that if loadings apply to any of your recommended insurance policies the amount of
commission receivable (which is disclosed above) could increase in line with the loading amount. For
example, if your standard insurance premium was quoted for $1,000 and the initial commission to the
Licensee was $1,100 [or 110%], and the underwriters loaded a 50% loading to your policy, then you
would be charged $1,500 as a premium and the initial commission paid to Licensee would be $1,650
[that is, $1,500 multiplied by 110%].

At the time of writing, I am unable to ascertain whether any loadings will be applied to your insurances
until the insurance underwriters assess your application.




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                             PRIVATE AND CONFIDENTIAL


[DELETE REFERRAL ARRANGEMENT IF NOT APPLICABLE TO THE CLIENT]]

Referral Arrangements and Remuneration
[Insert Referring Entity name] is entitled to receive a once-off / ongoing amount of $[insert
amount] as a fee for referring you to me. [This amount is only paid where you proceed with
the recommendations in this Report].

Within this Statement of Advice, I have referred you to [insert entity name] for provision of
assistance with [insert referred services - Mortgage broking/estate planning, etc]. Please
note that I will receive $[insert $ received] for the provision of this service which will be
payable to me [insert how and when this will be payable].


Additional Benefits and Associations

Adviser Recognition Program
I am eligible to participate in the Consultum Adviser Recognition Program. Participation
entitles me to qualify for certain awards such as free or subsidised attendance at the
Consultum Annual Conference (valued up to $5,500 per adviser), as well as business
coaching, marketing and advertising support, up to a maximum value of $2,000. The
criterion for the awards is based upon my total revenue production as well as the increase in
commission revenue production that I make over the course of a year from products on the
Approved Product List, my adherence to Consultum’s professional standards, and practice
development.

Product Provider Sponsorship Program
Consultum compiles a list of approved financial products known as the Approved Product
List and these product/platform providers are invited to provide sponsorship to Consultum in
the form of cash payments. These sponsorship payments assist Consultum in providing an
annual conference for Consultum advisers. In return, Consultum provides opportunities for
the product providers to present at events, advertise at adviser functions, training days and
in adviser newsletters/circulars, conference programs, etc. The payments made to
Consultum range in value from each product provider, but can be up to $55,000 (incl GST)
per product provider.

I will not share directly in the sponsorship payments made to Consultum, but I may benefit
indirectly, for example by attending subsidised conferences and receiving subsidised
training.

Adviser Equity Participation Program
I may be eligible to the right to receive shares in IOOF Holdings Ltd at no cost to me through
the IOOF Equity Participation Program (Program).

Consultum will determine the amount of money available for advisers under the Program at
the end of each financial year (the Pool).

This right will only be awarded to the top 30% of advisers based upon the total fees and
commissions generated by these advisers that are collected by Consultum during a financial
year according to the following scale:


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                            PRIVATE AND CONFIDENTIAL




Top 10% of advisers                 Receive 50% of the Pool
Next 10% of advisers                Receive 30% of the Pool
Next 10% of Advisers                Receive 20% of the Pool

Participation in the Program is subject to a three year qualifying period. Advisers will only
receive the shares in IOOF Holdings Ltd at the end of this period if they remain a Consultum
Authorised Representative of good standing. The number of IOOF Holdings Ltd shares
available each year under the Program is determined using the market price prevailing at the
beginning of the three year qualifying period.

Example
Assume that Consultum has 100 advisers for the period. If I am within the top 10% of
Consultum advisers at the end of this financial year (by fees and commissions), I will be one
of ten advisers eligible to receive an equal share of 50% of the Pool under the Program. If
the Pool was determined to be $500,000 this financial year, I will be eligible to receive
$25,000 worth of IOOF Holdings Ltd shares at the end of the three year qualifying period at
the market price prevailing at the time I was awarded the right ($500,000 X 50% / 10 =
$25,000).



[ONLY INCLUDE IF IOOF PRODUCTS ARE RECOMMENDED – OTHERWISE DELETE]
IOOF Ownership of Consultum
Consultum is a wholly owned member of the IOOF Group of companies, IOOF Holdings
Limited and its subsidiaries. IOOF Investment Management Limited is a member of the
IOOF Group and one of the product providers whose products are included on the
Consultum Approved Product List.



Payments or benefits from product providers
[ONLY INCLUDE DETAILS BELOW OF OTHER BENEFITS THAT YOU HAVE OR WOULD
REASONABLY EXPECT TO QUALIFY FOR AS RELEVANT TO THE SPECIFIC
RECOMMENDATION/S BEING MADE IN THIS SOA. DELETE BULLET POINTS WHICH ARE NOT
RELEVANT TO YOU]

    o   Other than as disclosed in this Statement of Advice, I receive no other payments,
        commissions or benefits that are applicable to the recommendation/s given in this
        Statement of Advice.
OR
I may qualify for certain benefits from product providers whose products have been
recommended in this Statement of advice. Specific details are outlined below:
   o I may receive other benefits including: awards, various options to attend hospitality
      events (eg tennis, football, etc) and conferences, subsidies or payments for
      promotional events for clients up to the value of [$insert value or range] per annum
      from insert name of [product provider].
   o I may be eligible to receive sponsorship monies to the amount of [$insert maximum
      amount] from [insert product provider name] if I meet the criteria of [insert $amount]



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                               PRIVATE AND CONFIDENTIAL


         of total client funds being placed in [insert fund manager/life company name]
         products for [insert time-frame, eg the year].
    o    I may be eligible to receive sponsorship monies to the amount of [$insert maximum
         amount] from [insert fund manager/life company name].
    o    [Other –adviser to enter free text].

As a Principal Member of the Financial Planning Association of Australia, Consultum
maintains a Public Register outlining the Alternative Forms of Remuneration that are
received from product providers. Registers are maintained by Fund Managers, Platform
Providers, Representatives and AFS Licensees. A copy of the Register can be made
available upon request.

[ONLY INCLUDE IF YOU HAVE RECOMMENDED / REVIEWING ONE OF THE APPROVED
PLATFORMS BELOW].

Additional Commission Payments from the Approved Platform Providers
Consultum (the Licensee) has arrangements with some platform providers on its Approved
Product List whereby those platform providers will pay additional commission to Consultum
for total funds under administration with that platform provider.

The following is a list of the approved platform providers and the % amount that they may
pay to Consultum as additional commission.

       Colonial First State                0.20% inc GST
       ING                                 0.20% inc GST
       IOOF                                0.22% inc GST
       Macquarie Wrap                      0.22% inc GST
       Navigator/AVIVA                     0.20% inc GST

The additional commission payment is paid to Consultum either monthly or quarterly in
arrears.

Do I receive any of this Additional Commission that is paid to Consultum?

Yes, I may be entitled to receive a percentage of the additional commission payable to
Consultum. The amount I may receive is calculated as follows:

Consultum calculates 0.22% of the total funds under administration invested by my clients
with the five approved platform providers. This amount is added to the other revenue
derived by Consultum from my fixed fees and variable commission split (that is the
percentage of my commission income that Consultum retains). This ‘total revenue’ amount
then has a percentage applied to it (on a sliding scale) by Consultum, and I am entitled to
receive the resulting amount as additional commission.

For example,




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                             PRIVATE AND CONFIDENTIAL


I have a total of $10 million funds under administration invested in the approved platforms
(as a proportion of Consultum’s total funds under administration in those platforms).

The total annual revenue that Consultum derives from my business is $65,000 (this amount
is made up of fixed fees payable to Consultum and variable commission splits retained by
Consultum).


1. Additional commission payments from platform providers that my business generates for
Consultum:


       0.22% x $10 million FUA =    $22,000 pa


2. Total Revenue derived by Consultum from my business:

       $65,000 + $22,000 =         $87,000 pa Total Revenue

3. A percentage sliding scale, as set out below, is applied to Total Revenue and I am
entitled to receive the resulting annual amount by way of quarterly payments in arrears:

 Revenue                             Rebate entitlement %
 0 -$45,000                          0%
 $45,001 - $100,000                  40%
 $100,001 - $150,000                 50%
 $150,001 - $200,000                 60%
 $200,001 - $250,000                 70%
 $250,001 plus                       80%


       First $45,000                    @ 0% =         Nil
       Next $42,000                     @ 40% =        $16,800 pa
       Total Revenue $87,000 pa:                       $4,200 per quarter

4. Therefore, in this hypothetical example, I am entitled to receive $4,200 of additional
commission on a quarterly basis, paid in arrears.




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                            PRIVATE AND CONFIDENTIAL



Disclaimers & Disclosures
    Each paragraph of these disclosures and disclaimers section shall be deemed to be
 separate and severable from each other. If any paragraph is found to be illegal, prohibited
            or unenforceable then, this shall not invalidate any other paragraph.


Time Limitations on Investment Recommendations
The recommendations in this document and its attachments are based on current economic
conditions, laws and information available and applicable at this time. Circumstances can
change and if more than 30 DAYS has lapsed since the date of this document you should
not act on any specific recommendations without further consultation.


Cooling –Off Provision
If you change your mind about any of the financial products contained in this report, you are
entitled to cancel any:
     Risk insurance;
     General insurance;
     Life insurance;
     Managed investment;
     Superannuation; or
     RSA (retirement savings account)
product 14 days after confirmation of the transaction by the product issuer, or 5 days after
the product commences, whichever is the earlier. You would be entitled to receive a refund
subject to certain adjustments, including possible movements in the value of the investment.

You can do this by advising the product issuer of your decision in writing. Details of the
cooling – off period are contained in the Product Disclosure Statement(s) provided to you, or
in the transaction confirmation(s) you receive.

Important Note
You should read this plan very carefully. While you may have had a number of
conversations with your financial adviser, where the information prepared for you in this plan
differs from that provided in those conversations, the statements in this plan supersede
those made by the financial adviser.

This plan is based on your personal circumstances and has been developed to meet your
specific goals and objectives. No one else can rely upon these recommendations. We take
no responsibility if anyone else implements these recommendations, or relies on the whole
or any part of the content of this plan.

Note to Regular Savings Plan Investors Only
You should be aware that if you are investing through a Regular Savings Plan facility, at the
time of investing in the managed funds, you may not have obtained the current product
disclosure statement (or supplementary) for the applicable managed funds.

Common Law Disclosures and Disclaimers



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                            PRIVATE AND CONFIDENTIAL


Section 945A of the Corporations Act requires that recommendations made to clients are
based upon the person’s investment objectives, financial situation and particular needs. If
you believe we have misinterpreted or overlooked some relevant information, please raise
this to our attention.

In preparing this Statement of Advice, we have relied upon the information you have
supplied, therefore where reasonable, correctness of such information is assumed, no
responsibility can be accepted if the information is incorrect or inaccurate.

In the event that any advice or other services rendered by Consultum Financial Advisers
(Consultum) constitute a supply of services to a consumer under the Trade Practices Act
1974, then Consultum’s liability for any breach of any conditions or warranties implied under
the Act shall not be excluded but will be limited to the cost of having the advice or services
supplied again.
Subject to the above paragraph, nothing in any paragraph of this disclosure affects any
rights or remedies to which you may be entitled under the Trade Practices Act 1974 or under
the Corporations Act as a consequence of services being rendered by Consultum.

Product Disclosure Statements
In providing you with a recommendation to invest in particular financial products, we have
provided research summaries/reports. This does not replace the need to read the actual
Product Disclosure Statements relevant to each recommendation and you must obtain and
fully read the Product Disclosure Statements prior to investing. An investment can only be
made by completing the application form(s) contained in the current Product Disclosure
Statements.

If you do not have the facilities to access the below via the web, we can provide copies for
you on request.


 Fund                                                       Website to obtain PDS




   Yes - I have web access and will access PDS's from abovementioned Sites

   No - I do not have web access and would like you to send these to me in hard copy




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                            PRIVATE AND CONFIDENTIAL



Authority to Proceed
Client Declaration
Provision of Required Documents
I acknowledge that the following documents have been provided to me by my adviser:
 A Statement of Advice;
 A Financial Services Guide including an Adviser Profile;
 The Consultum Privacy Disclosure Statement;
 Access to Product disclosure statements relevant to the financial product
    recommendations made in the Statement of Advice.

Acceptance
I have read, accepted and retained a copy of the Statement of Advice containing my
personal investment recommendations.

I agree and accept my investment risk profile, investment strategy and assumptions. The
recommendations meet my investment objectives and needs.

I confirm that I have read the Disclaimers and Disclosures and the Disclosure of fees,
commissions and benefits section. I accept the fees and charges that will apply to my
financial products placed as a result of the recommendations made within this Statement of
Advice.

Non- Approved Product
The following non-approved product included in this Statement of Advice has either been an
existing investment of mine or has been requested by me without any recommendation or
suggestion to invest in it by my adviser. I understand that my adviser does not accept any
responsibility for this investment.


 Name of product                                          Amount



Declined/Varied Recommendations
Where applicable, please indicate below (by placing a tick () in the relevant column), the
recommendations that the client has declined or would like to vary.

 Recommendation/Strategy                                          Decline     Vary*




WARNING
By not accepting all of the stated recommendation/s detailed within this Statement of Advice,
you potentially risk not being able to meet your stated objectives and needs over the long-
term. This may therefore result in yourself (and your family and dependents) not achieving
your personal and financial goals. It is therefore important that prior to declining or varying




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                             PRIVATE AND CONFIDENTIAL


the recommendations, that you consider the appropriateness of the advice in light of your
situation, needs and objectives.

*Where you wish to vary from the recommendations made, please provide details below




Personal Use Only
I acknowledge that the material contained within this plan is solely for my personal use.

Accuracy
It is accepted that every care has been taken to ensure the material is accurate and reliable
and that no responsibility is accepted for errors or omissions. Any errors or omissions
identified have been advised to my Representative.

Incomplete, Inaccurate Information – Changes to Recommendations
I understand that appropriate advice may not be able to be given without complete and
accurate information and that by not providing sufficient information or choosing to invest in
a financial product other than those recommended in this Statement of Advice, I risk making
a financial commitment to a financial product that may not be appropriate to my needs.

CLIENT ACKNOWLEDGEMENT – CLIENT COPY

I acknowledge the information in this authority and provide it to my adviser to act on, and rely
on it. I wish to confirm my acceptance to proceed with the recommendations contained in
this Statement of Advice, dated [Insert Date of SOA].

I understand that where I have declined or varied the recommendations made by my
adviser, I understand the potential risks associated with that decision and that it may result in
my objectives not being met in the long-term. I accept that my adviser will not be liable for
any hardship to myself (or my family and dependents) in the event that my financial needs
and objectives are not met.

I also acknowledge that I have opted to access copies of the relevant Product Disclosure
Statement/s via the websites provided in this SOA.



Signed ________________________                       Date ____ / ____ / _______
      [Insert client name, insert client surname]


Signed _______________________                    Date ____ / ____ / _______
      [Insert partner name, insert partner surname]




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                             PRIVATE AND CONFIDENTIAL


CLIENT ACKNOWLEDGEMENT – ADVISER COPY
I acknowledge the information in this authority and provide it to my adviser to act on, and rely
on it. I wish to confirm my acceptance to proceed with the recommendations contained in
this Statement of Advice, dated [Insert Date of SOA].

I understand that where I have declined or varied the recommendations made by my
adviser, I understand the potential risks associated with that decision and that it may result in
my objectives not being met in the long-term. I accept that my adviser will not be liable for
any hardship to myself (or my family and dependents) in the event that my financial needs
and objectives are not met.

I also acknowledge that I have opted to access copies of the relevant Product Disclosure
Statements via the websites provided in this SOA.

Consent to Ongoing Contact
I consent to being contacted by my adviser on an ongoing basis, in line with the agreed
ongoing review structure detailed within this recommendation.

I consent specifically to being contacted in relation to the financial products contained within
this recommendation, as well as to any other Consultum Financial Advisers Pty Ltd
approved financial product that my adviser feels are appropriate to my financial needs,
circumstances and objectives over time.

My preferred hours of contact are _____ - _____ am / pm.




Signed ________________________                       Date ____ / ____ / _______
      [Insert client name, insert client surname]


Signed _______________________                    Date ____ / ____ / _______
      [Insert partner name, insert partner surname]




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                            PRIVATE AND CONFIDENTIAL



APPENDICES AND IMPORTANT INFORMATION

Important Note Regarding Projections
                                    IMPORTANT NOTE
  Unless expressly stated, there are no guarantees of capital, nor any performance returns
                    associated with any of the products recommended.

You should treat all investment return figures as a guide only, as there are many factors that
can affect investment performance. Returns from investments can be highly variable over
time, and past performance should not be seen as a guarantee of future performance. You
should also note that projection models use average returns and do not take into
consideration potential volatility in returns. The performance of investment products falls as
well as rises, depending on economic and market cycles, and the particular investment
strategies of the fund managers providing the products.

The discussions, modelling and recommendations within this plan are not intended to be
taxation, social security or legal advice, and should not be relied upon. It is recommended in
each instance that you seek expert advice in these areas.


Income & Growth Projections
Attached to this document are a number of schedules that provide details of the
recommended investments and estimates of future returns. These projections are based on
the relevant current laws, rates and thresholds relating to tax, government assistance, and
superannuation. The estimates for income and growth are provided as an indication of a
possible outcome and there is no guarantee that they will be achieved.

You will need to be aware of the following:
 That investment returns will fluctuate and growth returns may be negative in some
  periods/years. At times the extent of negative returns may result in the capital value
  reducing below the initial capital you contributed/deposited.
 The actual returns will depend upon economic, political, market and fund management
  factors that cannot be accurately predicted.
 Unless specified otherwise, our projected rates of income and capital growth:-
   Exclude any potential income tax or capital gains tax;
   Include direct entry costs and any ongoing fund management costs;
   Represent an average annual return assuming an investment period of at least five
     (5) years.

Income Tax & Taxation Advice
References to taxation in this document and any supporting schedules are provided to assist
in your planning. They are based on a general understanding of the issues involved but are
not intended to be a substitute for professional tax advice. Your tax position should be
confirmed with your accountant or other tax adviser prior to proceeding with any
recommendations contained within this document.




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Assumptions
In preparation of this plan, a number of assumptions have been made in relation to
investment earnings/income and growth estimates. These assumptions have been based
on currently available information and are believed to be reasonable. However, your
personal situation, the regulatory environment and investment markets can change. As part
of our annual review we will reassess all of the assumptions we have made within this plan.


Financial Assumptions – Projected Income & Growth Rates

 Asset                            Income         Growth     Reinvest     Franking
                                     %             %        Income          %
                                                             (Y/N)
 Cash
 Fixed Interest (Domestic)
 Fixed Interest (International)
 Property
 Australian Shares (franked)
 International Shares

 Liability                            Interest        Tax          Tax        Interest Only
                                       rate %      deductible   deductible        (Y/N)
                                                     (Y/N)         (%)




General Assumptions
 Economic Assumptions
 Inflation rate pa.
 Average Weekly Ordinary Time Earnings (AWOTE) pa
 Salary Indexation pa.
 Your Marginal Tax Rate
 Superannuation Contributions (pa) as a % of gross income
 [Add as appropriate]




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Investment Risks
This is a list of some of the risks that you can face as an investor. Not all risks listed below
affect all investments, however they must be considered.

Inflation risk
The possibility that the purchasing power of your money may not keep pace with inflation
(eg. by not investing at all or not investing sufficiently in growth assets). This means that the
real return of your investments has not grown in capital value sufficiently to meet the cost of
buying goods in the future. While investing in fixed term deposits and savings accounts can
provide you with an income, your capital value may remain the same due to inflation. To
eliminate this risk, you should have some of your investments in assets that provide capital
growth such as property and shares.

Diversification risk
The possibility that if you put all your investment capital into “one basket” (eg. the share
market) a fall in that market will adversely affect all of your capital. Therefore it is important
to invest across a number of asset classes and fund managers as diversification is a
deliberate strategy aimed at reducing the impact that volatility in one asset class, sector or
market will have on your overall portfolio of investments.

Market risk
The risk related to each specific market as a whole and thus cannot be diversified away by
holding a number of the same investments in that market. Different markets have differing
levels of volatility. Where investments are expected to produce higher returns in the long-
term generally means that higher volatility is experienced in the short-term. Therefore, the
risk is the possibility that if the market generally moves in a downward trend that this may
cause each investment held in that market to decrease in value.

Re-investment risk
Just like all investment markets, interest rates can rise and fall depending on the economy
and other circumstances. There is a possibility that if you invest in fixed rate investments
(eg. bonds), you may have to re-invest the maturing money at a lower rate of interest. This
means that your level of income will also fall.

Liquidity risk
The possibility that you may not be able to readily access your funds when you want or need
them most because they are invested in illiquid assets (eg. property). This can mean that
you pay exit and penalty charges for early exit from the investment. There may also be
adverse taxation implications if this occurs.

Credit risk:
Credit risk usually only applies to debt-type securities. There is a possibility that the
institution holding your capital (eg. a debenture issuer) may fail to pay interest, fail to return
your capital or become insolvent.

Legislative risk
There is a possibility of government policy changes negatively affecting your financial
strategy (eg. superannuation and retirement income policy and social security laws).

Timing risk
The possibility that a strategy of trying to time the entry and the exit from markets will expose
you to greater short-term volatility and capital loss. There are no two identical business



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                             PRIVATE AND CONFIDENTIAL


cycles therefore making it difficult to anticipate market movements. The concept here is to
buy and hold and spend time in the market, rather than try to time the market.

Value risk
The possibility you will pay too much for a particular investment or that you will sell it too
cheaply.

Manager risk
The possibility that you will invest with a fund manager based primarily on their recent past
performance without regard to their fundamental ability to cater to your particular needs or
performance expectations over the time frame you have in mind.

Currency risk
The possibility of incurring losses in relation to the value of overseas investments, as a result
of movements in international exchange rates, relative to the currency the investments are
held.




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                            PRIVATE AND CONFIDENTIAL



Financial Product Research Summaries
The following pages are financial product research reports for each of the financial products
recommended in this Statement of Advice. Each page contains details of the major features
of the investment, including a summary of the investment documentation, notes on the
management and style, investment strategy and philosophy of the fund, fund assets and
research comments.

Whilst the financial product research reports are intended to provide a summary of the major
relevant information, clients are advised to read the Product Disclosure Statement fully
before investing. An investment can only be made by completing the application form(s)
contained in the current Product Disclosure Statements.




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