Secondary Disclosure Statement
Steve Tutbury - Authorised Financial Adviser
Name:
SJ & CA Tutbury Ltd
Registration number: FSP 83721
Physical address:
308 Albert Street, Hastings
Postal address:
P O Box 14145, Hastings 4159
Trading name:
Bay Financial Centre
Telephone number:
06 8787350
Fax number:
06 6501857
Email address:
steve@bayfinancialcentre.co.nz
This disclosure statement is current as at 1 February 2012
Introduction
This document complies with the disclosure requirements under the Securities Markets Act
1988 (Act) and the Securities Markets (Investment Advisers and Brokers) Regulations 2007
and the Code of Professional Conduct for Authorised Financial Advisers and sets out the
disclosure required to be made in accordance with the Act and the Code.
It is important that you read this document
This information will help you to choose a financial adviser that best suits your needs. It will
also provide some useful information about the financial adviser that you choose.
In addition to the information that I may disclose to you in this statement, I may also disclose
other information to you in a separate disclosure statement (or statements), including
information about the types of services that I provide, the fees that I charge, and any actual
or potential conflicts of interest. If I have not provided that information to you at the same
time as I give you this statement, I will provide it to you as soon as I can.
SJ & CA Tutbury Ltd Disclosure Statement Version 3
Page 1 of 13
What sort of adviser am I?
I am an Authorised Financial Adviser. This means I have been authorised by the Financial
Markets Authority [the government agency that monitors financial advisers] to provide the
financial adviser services described below.
Details of my company
In 1994 I founded SJ & CA Tutbury Ltd. I am the joint managing director and shareholder
along with my wife.
My experience and qualifications
I have been providing investment advice in various forms since 1995 when I became a full
time investment adviser under my own company.
I have the following relevant qualifications:
Diploma in Business Studies endorsed Personal Financial Planning obtained in 1997
As an AFA I am required to undertake the mandatory number of continuing professional
development (CPD) hours required by the Code.
This is done by
a.
Meeting the mandatory number of continuing professional development hours as
per the continuing professional guidelines issued by the institute of Financial
Advisers.
b.
Attending industry conferences.
c.
Reading widely
d.
Purchasing comprehensive investment and insurance research from a number of
sources.
How can I help you?
I have been authorised to provide you with financial adviser services in the following
categories:

Financial advice

Investment planning services

Discretionary investment management services.
When I do this, I will be able to give you advice about financial products provided by a broad
range of organisations.
Services and products I provide
As part of providing you with financial adviser services, I provide advice and services in the
following subject matters:








Cash management and budgeting
Retirement planning
Investment planning
Risk management (insurance)
Property investments
General advice on asset planning and asset protection
General advice on taxation relating to investments and insurance
Mortgages and property borrowing.
SJ & CA Tutbury Ltd Disclosure Statement Version 3
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
General advice on tax management
Products on which advice is given
I provide financial adviser services in relation to the following types of products:










Risk products
Life cover
Accidental death cover
Disability income protection
Trauma
Living insurance
Business overheads cover
Mortgage protection insurance
Key person protection insurance
Medical insurance
Major medical cover




Property investments
Property purchasing
Syndicated property
Mortgages
Forestry









Savings and investment products
Direct shares, direct bonds (listed and
unlisted)
Managed funds including unit trusts,
KiwiSaver, superannuation, Group
Investment Funds, and Qualifying
Recognised Overseas Pension Schemes
(QROPS)
Combined risk and savings
Tax paid investment bonds
Bank deposits and bonus bonds
Government stocks/securities
Complex products
Investing in derivative products such as
options, swaps, futures, structured funds
Geared products
Investing in soft and hard commodities
Product Providers
I have no restriction in placing investments with any product provider. Details of investment
products in respect of which I have a normal supplier relationship are provided in Appendix
A. When it comes to risk management products, superannuation funds, Kiwisaver and
insurance bonds, SJ & CA Tutbury Ltd needs to have a contractual agreement with a
provider in order to place business with that provider.
SJ & CA Tutbury Ltd has contractual agreements for the sale of products issued by the
providers listed in Appendix B.
How do I get paid for the services that I provide to you?
Payment type
Description
□ Fees
My services are paid for by the fees that you pay as well as in
other ways.
□ Commissions
There are situations in which I will be paid by other
organisations. How much that payment will be depends on the
decisions that you make.
□ Non-financial benefits from other organisations
Other organisations may give me non-financial benefits
depending on the decisions that you make.
I am required to tell you the specific fees, commissions, extra payments, and other benefits
that I have received or will, or may, receive in relation to the services that I provide to you. I
must tell you these things before I give you that advice or provide a service or, if that is not
practicable, as soon as practicable after I give you that advice or provide that service.
SJ & CA Tutbury Ltd Disclosure Statement Version 3
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Details of the commission payments I receive are provided in Appendicies A, B & C
Fees and benefits received by me
The professional fees I charge will vary according to the nature of the services I provide, as
outlined below:
1.
Fees for non-wrap platform service clients:
I charge a flat fee of 1.00% inc GST of funds under management with a minimum of
$575 inc GST for the first 12 months. This means the initial consultation, the
preparation of the Statement of Advice (SoA), the implementation of the advice for
you and the ongoing reporting for that SoA, for the first 12 months, are all included in
this fee.
An entry fee of between 0 - 5% maybe charged on certain investments.
I will also retain any upfront and ongoing commissions/trails paid by product providers
in respect of your investments. Refer to Appendix B for further information on
maximum commissions/ trails I and my company may receive for any successful
business placed.
I charge an hourly rate of $160+GST for any additional work which you may require.
This is payable monthly as billed.
2.
Fees for wrap platform service clients:
Type of fee
Maximum fee payable
SoA preparation fee
1% + GST
Entry fee
Up to 5%
Annual adviser fee
Other fees
1% + GST
An hourly rate of $160 + GST
All fees except “other fees” will be deducted from your Cash Transaction Account
(CTA) on a monthly basis. Other fees will be invoiced directly to you on completion of
the work required.
Fee rebates for wrap platform clients:
In many instances, investment commissions (including trails) paid by the product
provider for the funds invested by you will be credited to your CTA. This will be
determined once I am more aware of the nature and scope of my engagement with
you.
The fees set out in the table above provide the following benefits to you:

As much access to my services as you require over a 12 month period.

Preparation of at least two valuation reports and any recommended investment
modifications.

Newsletters.

Attendance at our client seminars.
SJ & CA Tutbury Ltd Disclosure Statement Version 3
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
Free attendance at any public seminars we are conducting.

Copies of reports that we produce.

Comprehensive tax reports for wrap platform service clients.

Access to our portfolio reporting service.
Please note that I will often provide you discounts on the remuneration I receive,
particularly if the sum being invested is substantial. The quantum of discount depends
on the sum of money being invested by you and the economies of scale realised by me
in terms of saving my time, effort and procedures.
Non-monetary benefits
From time to time, I may receive certain non-monetary benefits from product providers.
This could include gratuities such as a bottle of wine at Christmas time, a free calendar,
pen or book, the occasional luncheon, drinks after a briefing session, invitations to
sporting events, subsidised professional development, discounted training courses or
office supplies, etc.
Procedures for handling investment money or investment property
The following systems and procedures are used for receiving your funds:
1.
2.
Wrap platform clients:

The investment management service (wrap service) is provided via an
independent custodian, who holds investments collectively on your behalf.

All money that is to be invested (payable via cheque or direct bank transfers) is
payable directly to the custodian of the wrap service as applicable.

All your personal information will be handled in a confidential and secure
manner.
For clients whose investments are held outside a wrap platform service:

Cheques relating to investment money are written out by you, made payable to
the product provider concerned and will be delivered to the appropriate product
provider for processing as soon as practicable after being received from you.

The only money retained by me is the fee paid directly to me or my company.
This is agreed in writing beforehand with you. These fee payments may be made
via direct credit on a monthly, quarterly or annual basis to SJ & CA Tutbury Ltd’s
bank account or annually via cheque to SJ & CA Tutbury Ltd and crossed ‘not
transferable account payee only’.

An auditor is not employed as SJ & CA Tutbury Ltd is not holding nor does it
operate a trust account.

Neither SJ & CA Tutbury Ltd nor myself in any circumstances use your money or
property for the benefit of any other person or ourselves. This applies to monies
that are to be invested. Monies that are paid to us as fees are used to pay
overheads and expenses and personal remuneration.

All your personal information will be handled in a confidential and secure manner
SJ & CA Tutbury Ltd Disclosure Statement Version 3
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Record keeping
The records I keep that relate to the investment of money on your behalf are outlined below:
For non-wrap platform clients
a)
Documents are scanned and held electronically and all files protected by passwords.
b)
All documents not scanned are photocopied and filed in the clients file.
c)
The details of the investment are entered onto the portfolio reporting system
immediately after an investment is made.
d)
Updates to your personal file are carried out showing details of your investments.
e)
A certified photocopy of your proof of identification.
During normal working hours (8:30am to 5:00pm Monday to Friday), you may, on request,
have access to your personal file, should you wish to check the accuracy of the information
contained therein.
For wrap service clients
a)
A photocopy of your wrap application and full discretion authority forms.
b)
The wrap provider will enter details of the investment or security transfers made to your
account.
c)
Details of your nominated bank account.
d)
A certified photocopy of your proof of identification.
During normal working hours (8:30am to 5:00pm Monday to Friday), you may, on request,
have access to your personal file, should you wish to check the accuracy of the information
contained therein.
Other interests and relationships
The Securities Markets Act 1988 requires me to disclose any direct or indirect pecuniary or
other interest that I may have in the giving of investment advice.
I do not have any contractual arrangements, quotas or agreements obliging me to
recommend certain product providers products or services.
I can place risk business with almost all product providers but I prefer to deal with
 Fidelity Life
 OnePath Life
 Tower Health and Life
My company is a member of the TNP network and as a result I may be eligible for bonus
payments from certain insurance product providers. Under this arrangement I and my
company are under no obligation to meet any product quotas or to recommend a particular
product provider. These bonus payments are outlined in Appendix C.
I have a 50% ownership share in an accounting service – Tax Link Ltd operated by my wife.
I do not receive or have any agreement to receive remuneration, gifts of any kind or any
other professional services in recognition of any business I may place or recommend to Tax
Link Ltd.
SJ & CA Tutbury Ltd Disclosure Statement Version 3
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Professional memberships
“I am a member of the Institute of Financial Advisers (the Institute) and I comply with the
Institute of Financial Advisers Code of Ethics and Practice Standards in all facets of my
practice. I hold an annual certificate to practice, issued by the Institute”.
Professional indemnity insurance cover
SJ & CA Tutbury Ltd and I are covered under a professional indemnity insurance policy. This
policy includes the following covers: professional indemnity, public liability, statutory liability,
general liability, employers liability, internet liability, directors and officers liability. This policy
applies when I act in my professional capacity as a financial adviser. As with all insurances,
these covers have limitations and are subject to certain exclusions, terms and conditions.
No criminal convictions
1.
In accordance with the Securities Markets Act 1988, I hereby certify that neither I nor
any principal officer of SJ & CA Tutbury Ltd have been:
(a) Convicted of an offence under the Securities Act 1978, the Securities Markets
Act 1988 or the Investment Advisers (Disclosure) Act 1996, or of a crime
involving dishonesty (as defined in Section 2(1) of the Crimes Act 1961).
(b) A director or principal officer of a company that committed an offence under any
of the Acts listed above or an offence involving dishonesty as defined above.
(c) Adjudicated bankrupt.
(d) Prohibited by law from taking part in the management of a company or a
business.
(e) The subject of an adverse finding by a court in any proceeding taken against me
in my capacity as an investment adviser, or
(f) Expelled from or have been prohibited from being a member of a professional
body.
What should you do if something goes wrong?
In the event of a complaint or dispute about any part of my service, please tell me so I
can fix the problem. I will provide you with information about my internal complaints
process, the Securities Commission, and my Disputes Resolution Scheme.
I will try in the first instance to resolve the complaint internally. Should I fail to handle
any such problem to your satisfaction within a reasonably short time frame, then my
company has an internal complaints handling process. In addition, if your complaint
concerns one of our supplier companies (e.g. fund manager, insurance company, etc)
they will usually have an internal complaints logging and handling system to which you
should refer.
If I or our firm is unable to resolve your complaint to your satisfaction, then you may
make the complaint to the ISO Disputes resolution Scheme of which we are a member.
This has a three-step process. We are bound by the outcome of that process. You can
choose to be bound by the outcome but you can also choose to be free to pursue other
legal avenues. You can contact them at P o Box 10-845, Wellington, 6143, phone 04]
4997612 or email info@iombudsman.org.nz
In the event that the first two steps prove unsatisfactory then a complaints process
exists within the Institute of Financial Advisers (IFA), of which I am a member and by
SJ & CA Tutbury Ltd Disclosure Statement Version 3
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which I am bound. The IFA can be contacted at P.O. Box 5513, Wellington, Ph: (04)
499 8062; Fax: (04) 499 8064.
Any complaints referred to the IFA are recorded, then investigated to determine likely
degree of seriousness, then depending on the level of severity handled by IFA National
Office staff directly with the client concerned, or referred on to a Professional
Complaints Committee consisting of a legally qualified chair-person and two
professionally credentialed advisers to resolve.
This can be a lengthy and sometimes frustrating process for those involved, and is
restricted to only those complaints that breach the IFA’s own rules. It does not allow for
civil litigation. I would urge any dis-satisfied clients to resolve any issues personally and
directly with me if at all possible.”
If you need to know more, where can you get more information?
If you have a question about anything in this disclosure statement or you would like to know
anything more about me, please ask me. If you have a question about financial advisers
generally, you can contact the Financial Markets Authority.
How am I regulated by the Government?
You can check that I am an Authorised Financial Adviser at http://www.fspr.govt.nz.
The Financial Markets Authority authorises and regulates financial advisers. Contact the
Financial Markets Authority for more information, including financial tips and warnings.
You can report information or complain about my conduct to the Financial Markets Authority,
but in the event of a disagreement, you may choose to first use the dispute resolution
procedures described above (under What should you do if something goes wrong?).
Declaration
I, Stephen John Tutbury, declare that, to the best of my knowledge and belief, the
information contained in this disclosure statement is true and complete and complies with the
disclosure requirements of the Securities Markets Act 1988 and incorporates the minimum
standards of disclosure required by the Code of Professional Conduct for Authorised
Financial Advisers.
Signed:
Date:
_____________________
Appendices:
A. Risk product commissions
B. Investment product commissions
C. TNP risk product commissions
D. Client acknowledgement
SJ & CA Tutbury Ltd Disclosure Statement Version 3
Page 8 of 13
APPENDIX A
to the Disclosure Statement of SJ & CA Tutbury Ltd
Investment Product Commissions
SJ & CA Tutbury Ltd
The information provided in this Appendix is current as at 1 April 2011.
Steve Tutbury via J & CA Tutbury Ltd is eligible to receive commissions on the following
products according to the schedule below. Please note that these are the maximum
commissions payable and in many cases these may be discounted, especially if you are
investing substantial sums. Specific commission rates will be disclosed in writing to you in
relation to specific investments prior to your investments being placed.
Product Provider
Max.
initial
commission as a % of
each
investment
made
Ongoing
annual
commission as a %
of total value of
investment
1.50% per trade
Nil
1% per trade
1.15% per trade
Nil
0.65% per trade
Nil
Shares
Bonds
0.60% per trade
Nil
0.40% per trade
Nil
AMP Capital Enhanced Yield Fund
AMP Capital All Unit Trusts
ANZ Ascent World Bond Fund
ANZ Ascent World Equity Trust
AXA Australasian Selected Equities Fund
AXA Wholesale Global Value Equity Trust
Other AXA unit trusts
Nil
Nil
5.00
5.00
5.00
Nil
Nil
0.25
0.25
0.25
Nil
0.25
Nil
Nil
Product
Listed Direct Shares and Fixed Interest
First NZ Capital
Shares
Bonds
Direct Broking
Shares
Bonds
OneAnswer
Managed Funds
AMP Capital Investors Ltd
AMP Capital Investors
ANZ Investment Services (NZ) Ltd
AXA
Brook Asset Management Ltd
Brook Tasman Fund
Other Brook Asset Management funds
Nil
5.00
Nil
Nil
Fidelity Life
Fidelity Options Portfolio
KiwiSaver
Unit Trusts
Hunter Hall Global Ethical Fund
Hunter Hall Value Growth Trust
Superannuation Funds
Thoroughbred Cash Fund
All unit trusts & superannuation funds
Income Funds
5.0
$30 one off fee
Nil
5.00
5.00
5.0
Nil
5.0
Nil
1.0
0.25
Nil
0.25
Nil
0.25
0.15
Nil
0.25
NZ Guardian Trust – Cash
NZ Guardian Trust Funeral Trust
OnePath Equity Selection Fund
Other OnePath unit trusts and superannuation
Nil
$75
5.00
5.00
0.25
Fisher Funds Management Ltd
Hunter Hall Investment
Management Ltd
Mutual Funds Limited (MFL)
National Bank of New Zealand
New Zealand Funds Management
Limited (including Global
Investment Service)
New Zealand Guardian Trust Ltd
OnePath (NZ) Ltd
SJ & CA Tutbury Ltd Disclosure Statement Version 3
0.35
0.25
Page 9 of 13
funds, KiwiSaver
Perpetual Wholesale Australian Fund
Nil
0.25
Nil
PM Capital Absolute Performance Fund
PM Capital Enhanced Yield
PPS Mortgage Fund
All other PPS unit trusts and superannuation funds
Nil
Nil
5.00
5.00
Nil
0.50
0.50
1.00
Cash
Income Fund
All unit trusts and superannuation funds
Tower Freedom Plan
All Unit Trusts
SIL – KiwiSaver
SIL
Nil
1.0
5.0
5.0
5.5
Nil
2.5
0.1
0.25
0.5
0.8
0.25
0.25
0.25
Liontamer
Various closed ended funds
4.00
Nil
Man Investments Ltd
OM-IP Funds
AHL Diversified Wholesale Fund
4.00
3.00
0.50
Nil
MARAC Finance Ltd
Secured term deposits
0.70
Nil
Heartland Building Society
UDC Finance Ltd
Secured term deposits
Secured term deposits – up to 3 months
Secured debentures – 4-11 months
Secured debentures – 12-60 months
PIE Term Maximiser
0.85
Nil
0.15
0.20
0.00
Nil
Nil
Nil
Nil
3.00
Nil
Perpetual Investment Management
Ltd
PM Capital Ltd
Private Portfolio Service (PPS)
Sovereign
Tower Managed Funds Ltd
Superannuation Investment
(SIL)
Specialty Products
Ltd
Fixed Interest Debentures**
Account Management Service
OneAnswer
* Generally, fixed interest product providers pay up front commissions based on the duration of the investment.
The figures above show the percentage payable for an investment of one year.
Maximum commission is the maximum amount our company will charge, not necessarily the maximum amount
listed in the product investment statement.
In the case of master trusts, it is permissible to provide the name of the master trust only and not all the
underlying funds, providing the upfront and ongoing commission rates are the same for each underlying product.
OneAnswer wrap platform service
OneAnswer pays a flat 0.10% per annum rebate to SJ & CA Tutbury. It is the policy of SJ &
CA Tutbury Ltd to pass 100% of this rebate back to you.
SJ & CA Tutbury Ltd Disclosure Statement Version 3
Page 10 of 13
APPENDIX B
to the Disclosure Statement of SJ & CA Tutbury Ltd
Risk Product Commissions
SJ & CA Tutbury Ltd
The information provided in this Appendix is current as at 1 April 2011.
Product
Product Provider
Maximum
Initial
Brokerage as a % of
Annual Premium
Maximum Ongoing %
of Annual Premium
Risk products
including:
- Life Cover
- Disability Income /
Income Protection
Cover
- Trauma Cover
- Total and Permanent
Disablement Cover
- Medical Cover
- Business
Overheads
Cover
- Key Person
Protection Cover
- Mortgage Protection
Cover
- Accidental Death
Cover
Asteron
AXA
Fidelity Life Platinum Plus
Tower Health & Life
OnePath Life (NZ) Limited
AMP
AIA
Sovereign
Partners Life
100
90
124
90
150
85
150
120
100
5.0
5.0
16.2
7.0 or 20
7.5
6.6
10.0
7.5
35
Superannuation Products and Insurance Bonds
Maximum Initial Brokerage as a % of
Product
Product Provider
Annual Premium/Investment made
Lump Sum
Regular
Ongoing Brokerage as a % of Annual
Premium/Investment made
Lump Sum
Regular
Fidelity Life
5.0
24% of first year
0.3
0.3
Sovereign
Tower
5.0
4.5
20% of first year
4.5
4.0
4.55
4.0
1.5
In addition to the above, SJ & CA Tutbury Ltd may be eligible for bonus payments from
certain insurance companies.
SJ & CA Tutbury Ltd Disclosure Statement Version 3
Page 11 of 13
APPENDIX C
to the Disclosure Statement of J & CA Tutbury Ltd
SJ & CA Tutbury is a member of the TNP Group, one of a number of adviser groups he has
the option of joining. There are no quotas, minimum levels of production or targets required
to be meet as a member. By belonging to the TNP Group, SJ & CA Tutbury Ltd is invited to
attend seminars and/or workshops periodically provided by the TNP Group. These may be
subsidised, but the amount of the subsidy is not disclosed to members of the TNP Group.
The TNP Group offers a range of services such as para planning and “back room” office
administration on a contract basis. SJ & CA Tutbury Ltd at present does not utilise any of
these services.
TNP has arranged the following commissions with insurance companies. These agreements
have been arranged between TNP and the respective insurance companies and as such are
outside the control of Steve Tutbury or SJ & CA Tutbury Ltd.
Product Provider
Net
Annual
Premium
AIA Life
$0-$49,999
$50,000-$99,999
$100,000+
64.5%
160%
170%
200%
170.59%
$0-$39,999
$40,000-$94,999
$95,000+
160%
180%
182.5%
$0-$99,999
$100,000-$149,000
$150,000+
$0-$80,000+
160%
165%
170%
155%
Max Risk % of API
$0-$29,999
$30,000-$37,499
$37,500-$62,499
$62,500-$99,999
$100,000+
180%
185%
195%
205%
210%
Total
potential
Dollars
175%
Max Medical % of API
105%
110%
120%
130%
135%
170%
Max DI% of API
155%
AMP
BP Multiple [4c] Persistency bonus
Asteron
AXA
Fidelity Life
ING Life
Tower Health & Life
Issued
Max Lump Sum % of
API
Max medical % of API
Maximum
lump
sum and DI% of
API
DI % of API
140%
160%
162.5%
140%
SJ & CA Tutbury Ltd Disclosure Statement Version 3
Page 12 of 13
APPENDIX D
to the Disclosure Statement of SJ & CA Tutbury Ltd
Client acknowledgment
I, ………………………………………….... acknowledge receipt of the Secondary Disclosure
Statement of SJ & CA Tutbury trading as Bay Financial Centre, Version 3 dated 1 July 2011.
Signed: ………………………………………………. Date: ………………………
Signed: ………………………………………………. Date: ……………………….
SJ & CA Tutbury Ltd Disclosure Statement Version 3
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