Village 360

Disclosure Statement

DISCLOSURE STATEMENT

Name of advisor/principal officer: Claire Aitken
Dated this SunSep2010

Contact Details:

Introduction

I am required by the Securities Markets Act 1988 and the Securities Markets (Investment Advisers and Brokers) Regulations 2007 to disclose certain information about me to you before I may provide you with investment advice or receive money for securities from you. This disclosure statement provides information concerning:

1. The services I can provide.
2. What investment products I am able to sell you.
3. Which financial organisations I am able to place business with.
4. How I operate my business and my business experience.
5. My qualifications and their relevance to the service I provide.
6. How I am remunerated.
7. Money handling procedures.

Disclosure of experience, qualifications, professional standing etc

Who do I work for?

I am a director of Village 360 Consulting Limited working as a financial advisor. I have worked within the Company for 4 years.
I have worked within the financial services industries in the UK and New Zealand since 1988.

Qualifications.

I hold the following qualifications:
BA (Hons) Degree in Business and Finance
Within the next few years a mandatory advisory competency level will be implemented. Once full requirements are known I will take whatever action is necessary to attain the required standard.
In the mean time, I regularly attend product and general industry related training sessions and am fully committed to adhering to the Professional Advisers Association code of conduct.

Professional Associations

In addition to the above qualifications I am a member of the Professional Advisors Association Incorporated. This organisation sets professional standards of conduct for its members and also offers a complaints resolution service.

Securities and Products I am Qualified to Advise on

I am qualified to provide investment advice on the following types of investments or products:

1. Managed Funds that invest one or a combination of cash, fixed interest, equities, shares, property and alternative investments such as futures & options and other forms of arbitrage – providers: Sovereign’s Select Investor Service (wrap account)*, Fidelity Life, Tower Managed Funds, New Zealand Funds Management, Asteron
   * Select Investor Service offers access to a managed fund universe of around 40 funds & listed trusts, filtered for suitability by JMIS Ltd on the Service’s behalf. Providers within the service include: ASB, Perpetual Trust, Asteron, ING, Sovereign Colonial First State, Tower, Rabobank Nederland (directly held capital debt security), Brook, Goldman Sachs JB Were, First NZ Capital, Fisher Funds, AXA, Hunter Hall, AMP, Platinum, Fidelity. UK Listed Trusts – RIT Capital Partners Ltd, Monks Investment Trust Plc, Schroder Asia Pacifc Fund Plc, Fidelity European Values Plc, Templeton Emerging Markets Plc, Edinburgh US Tracker Trust Plc ,JP Morgan, Fleming Mercantile Investment Trust Plc, Schroder Japan Growth Fund Plc and F&C Global Smaller Companies Plc.
2. Structured Products with a capital protected guarantee – providers: Liontamer and MAN Investments
3. Whole of Life Products and Endowments – No longer promote but hold a number of clients policies owing to take over of clients from Coldicutt Financial Management back in 2005. All policies of this nature are held with Fidelity Life.
4. Direct Equities & Fixed Interest – Advice is not given on the purchase of direct equities. Advice is given on direct fixed interest where deemed appropriate.

Before I provide you with any investment advice I will have followed a due diligence process to research the products I advise on and this process forms the basis of any specific product recommendations.

Basis of my advice and/or Product Recommendations:

When I give advice I follow the recognised six step process below:

1. Establish the client-advisor relationship.
2. Gather client data and determine client goals and expectations.
3. Analyse and evaluate the client’s position.
4. Develop and present written advice.
5. Oversee the implementation of written advice
6. Monitor and review on an on-going basis.

The services I provide will depend on your needs and may include any or all of the services detailed in this Disclosure Statement.
All investment advice I provide to you will be in writing. The advice will be clear and concise with enough detail to allow you to make an informed decision about whether you wish to proceed with a proposed investment.

Professional Indemnity Insurance

I have professional indemnity insurance cover through the PAA. The cover is held with Lumley who have a Standard & Poor’s rating as at November 2007 of A-. This insurance policy provides protection for my clients for:
Professional Liability: $1,000,000 any one claim + 1 reinstatement per advisor
Shared $9,000,000 any one claim & $27,000,000 in the aggregate for all advisors
Statutory Liability: $1,000,000 any one claim and in the aggregate
Public Liability: $5,000,000 any one occurrence

Dispute Resolution:

The Professional Advisors Association Incorporated operates a complaints resolution service that provides you with a forum to raise a complaint about me where I (as a member) cannot resolve the dispute to your satisfaction. If you wish to use the service, the full complaints procedure is mapped out on their website www.paa.co.nz or you may write to:

Disclosure of criminal convictions etc:

I have not been:

• Convicted of an offence under the Securities Markets Act 1988, the Investment Advisors (Disclosure) Act 1996 or the Securities Act 1978, or of a crime involving dishonesty (as defined in section 2(1) of the Crimes Act 1961).
• A director or principal officer of a body corporate that has committed an offence against the Securities Markets Act 1988, the Investment Advisors (Disclosure) Act 1996 or the Securities Act 1978, or of a crime involving dishonesty (as defined in section 2(1) of the Crimes Act 1961).
• Adjudged bankrupt.
• Prohibited by an Act or by a court from taking part in the management of a company or business.
• The subject of an adverse finding by a court in any proceeding that has been taken against me in my professional capacity.
• Expelled from, or been prohibited from being a member of, a professional body.

Fees:

The basis on which I am remunerated is recorded in the Remuneration Schedule attached. The fees quoted are generic and maybe subject to variation. No new work will be taken on without full prior disclosure of any remuneration that will be earned directly or indirectly as a result.

Section 4: Disclosure of interests and other relationships:

1. I am required to disclose if I or any associated persons has or may have, any interest or relationship that a reasonable person would find reasonably likely to influence me in giving investment advice.
2. I am not required to place any level of business with any supplier or financial organisation.
3. I am a member of the Newpark Group of Financial Advisers
4. I am a member of the Sovnet Group of Financial Advisers. Being a member of SovNet obliges me to place the majority of my customers risk and contractual savings business with Sovereign should they achieve top ranking on our risk researcher evaluation. However, it is not an exclusive arrangement and I am entitled to place a significant portion of my business with any provider.
5. Neither I nor an associate has any other financial or other relationship with any other person that would be reasonably likely to influence me in giving advice, except as described above.

Procedures for dealing with investment money:

All payments must be made by cheque, or by signing a direct debit authority.
Please note that neither I, or Village 360 Consulting Limited operate a trust account to receive client money for investment. All cheques should be crossed “Non-transferable” and made payable to the particular product or service provider.

Information and Records:

I will provide you the following information before you make a decision about whether to invest in a particular security or take out any insurance policy:

1. A full description of the security or policy.
2. A copy of the current brochure, product description, investment statement or prospectus published by the issuer.
3. A full description of the nature of any guarantee associated with the security.
4. Full details of the identity, name & address of the security issuer, including the principals.
5. A clear description of all the fees and charges to be borne by you, associated with the investment in, or costs relating to, the acquisition and/or management of the security.
6. A clear description of all the fees charged and/or commission received by me resulting from the acquisition and/or management of the securities and/or policies.

I keep the following records about you:

1. Information gathered during our ongoing fact finding process to facilitate continued contact and the provision of appropriate advice.
2. Details of investments purchased or sold, products obtained, tax information regarding your investments, receipts of money and details of all payments made and to whom.

The records described above will be held at 152 Carter Road, Oratia and you may request access to these at any time on reasonable notice to me.

REMUNERATION SCHEDULE:

Advice given will fall in to one or more of three remuneration areas:

• Complimentary (initial consultations typically fall into this area)
If appointed, I may charge a fee for the investment advice I provide to you. The fee may vary according to the precise nature of my engagement and may be based on:

• Fees.
• Commissions.
• Fees and commissions.

Time and attendance

If I charge a fee on a time and attendance basis, my hourly rate is $250.00 plus GST and/or
If the work undertaken involves the provision of advice and administration to facilitate the transfer of pension funds to New Zealand from the UK, a fixed fee of $2500.00 plus GST will be incurred. A time schedule will be kept and should the work undertaken exceed 10 hours, additional fees of $125.00 plus GST per hour thereafter will be invoiced.

How I am Remunerated:

I receive initial and on-going commission (including future and contingent commission) on insurance and investment products. This is paid by product suppliers to me following business placed with them. The commission amount varies depending on the product, the amount contributed.
Commissions paid by insurance and funds management companies are typically structured in the following manner:
New Business Commission Calculated on the completed sale of the contract. The commission rate is 0% - 5% of the initial premium
Service Commission Calculated as a percentage of each contribution or premium paid on a contract. Ranges from 0% - 5% of each contribution
Asset Commission Calculated as a percentage of funds under management. 0% - 1.5% per annum

I may also be eligible to receive certain benefits, including, but not limited to, consumer goods, travel and accommodation, and a bonus payment related to the amount of business that I place with specific providers. These benefits are at the discretion of the specific providers as named within this document and I am unable to provide further details of these until they are actually received.

Schedule of Providers and Commission Structures.

Providers/Trusts as detailed previously in this document

Select Investor Service (SIS)
New Business Commission	Only ever use contracts where up to 5% commission is payable. Any commission paid will reduce the amount invested by the same %age.
Service Commission	As above.
Asset Commission	Calculated as a percentage of funds under management. 0% - 1.5% per annum. Levied in addition to SIS and fund management charges.
Fidelity Life
New Business Commission	Only ever use contracts where up to 5% commission is payable. Any commission paid will reduce the amount invested by the same %age.
KiwiSaver only	A $30.00 ‘finders fee’ is paid by Fidelity. 100% of contributions invested.
Service Commission	As above.
Asset Commission	0.3% of the surrender value of any contract per annum. An implicit charge (included within Fidelity’s charges).
KiwiSaver only	As above but 0.25%
Tower Health & Life
New Business Commission	Only ever use contracts where up to 5% commission is payable. Any commission paid will reduce the amount invested by the same %age.
Service Commission	As above.
Asset Commission	0.3% of the surrender value of any contract per annum. An implicit charge (included within Tower’s charges).
New Zealand Funds Management Ltd
New Business Commission	Only ever use contracts where up to 5% commission is payable. Any commission paid will reduce the amount invested by the same %age.
Service Commission	As above.
Asset Commission	0% to 1.5% of the surrender value of any contract per annum. Charged in addition to fund management charges.
Liontamer
New Business Commission	0% to 3% Entry Fee. Reduces investment by the amount agreed. 2% commission paid in addition implicitly from within Liontamer’s charging structure
Service Commission	n/a.
Asset Commission	Up to 0.35% per annum at Liontamers’ discretion as an implicit charge. Not available under all offers.
Man Investments
New Business Commission	0% to 4% - implicitly charged from within Man Investments charging structure
Service Commission	n/a
Asset Commission	0.5% of the fund value per annum. An implicit charge deducted from within Man Investment’s charging structure.