BJCL Disclosure Document

It is important that you read this document

This information will help you to choose a Financial Advice Provider that best suits your needs. It will also provide some useful information about the Financial Advice Provider that you choose.

Regulations require us to provide you with certain information 'when the nature and scope of advice [to be given] is known', and then also 'when advice is given'; this document rolls all of that information up into one place. We must issue an updated version of this document if changes occur, or if a complaint arises.

Licence status and conditions

Balmer, Jeffs & Company Limited (BJCL) is authorised by a transitional license issued by the FMA to provide a financial advice service. Duncan Balmer and Rob Jeffs are financial advisers, and give advice on behalf of BJCL.

No conditions of the licence limit or restrict the advice that may be given by BJCL, or by anyone on behalf of BJCL.

Nature and scope of financial advice service

We are licenced to provide you with financial advice and investment planning services, including Discretionary Investment Management Services (DIMS). When we do this, we will be able to give you advice about financial products provided by any organisation.

We offer advice on a broad range of Portfolio Investment Entities (PIEs), Exchange Traded Funds (ETFs), investment trusts, managed funds, and fixed interest securities (including term deposits).

We only give investment advice on the investing of lump sums; we do not give advice on Kiwisaver, insurance, estate planning, family trusts, wills, and powers of attorney.

Conflicts of interest, and commissions or other incentives

None, except to state, for the avoidance of doubt, that the principals of BJCL, and those associated with them, may receive remuneration in the form of shareholder salary, ordinary salary, or dividends from BJCL.

Neither BJCL, advisors giving advice on behalf of BJCL, nor any associate of those advisors has any other financial or other relationship with any other person or organisation that a reasonable person would find reasonably likely to influence BJCL or the advisors in giving investment advice, or be a conflict of interest.

We do not receive commissions - no commissions or other incentives will be received by BJCL, or by any adviser giving advice on behalf of BJCL, in relation to any advice any client seeks or is given.

Complaints and dispute resolution processes

BJCL has an internal complaints process. If you have a problem, concern, or complaint about any part of our service, simply inform either of the directors of BJCL so that we can try to fix the problem.

Contact details: Duncan Balmer: PO Box 32563, Devonport, Auckland 0744, phone: 09 445 1224, email: duncan.balmer@bjcl.co.nz; Rob Jeffs: PO Box 36033, Merivale, Christchurch 8146, phone: 03 355 1500, email: rob.jeffs@bjcl.co.nz.

Overview of BJCL's internal complaints process:

If our internal complaints process does not fix the issue, or if you decide not to use our internal complaints procedure, you have access to a free, independent dispute resolution service run by The Insurance and Financial Services Ombudsman (our participant number is 2000135). This service may help investigate or resolve complaints if not resolved to a client's satisfaction using BJCL's internal complaints process, and will cost you nothing. You can contact The Insurance and Financial Services Ombudsman at:

Phone: 0800 888 202 Email: info@ifso.nz Website: www.ifso.nz

For more information about our complaints process, contact Duncan Balmer or Rob Jeffs.

Duties information
BJCL, and any person giving advice on behalf of BJCL, is bound by regulation to —
  1. meet the standards of competence, knowledge, and skill set out in the Code of Professional Conduct for Financial Advice Services ('the code'); and
  2. give priority to the client's interests; and
  3. exercise care, diligence, and skill; and
  4. meet the standards of ethical behaviour, conduct, and client care set out in the Code.

This is only a summary of the duties that we have. More information is available by contacting us, or by visiting the Financial Markets Authority website at https://www.fma.govt.nz.

The Code of Conduct standards can be read here: https://www.fma.govt.nz/assets/assets/code-of-professional-conduct-for-financial-advice-services.pdf

Fees, expenses, and other amounts payable

BJCL charges fees for the advice we provide to you. The fees are as follows:

Plan Fee (once only fee, payable upon invoice, after presentation of plan): $1,000 plus GST.

Investment portfolio establishment fee (once only fee, payable upon invoice, after implementation of plan): $4,000 (no GST).

Regular purchases (i.e. by automatic payment) 1.0% (max of $10 per month).

Ongoing fees on amount under monitoring (annual fee): 1.02% of portfolio value plus GST, negotiable for portfolios over $1m.

Fees are deducted monthly by our custodial service, and reported to clients through cash transaction reports generated by the custodial system.

As the value of the portfolio will fluctuate over time with market movements, the absolute dollar amount of this fee will vary over time.

Trailing commission details

We use very few investments (usually none) which pay trailing commissions. If any products are recommended which pay trailing commissions, these will be disclosed to you at the time. Trailing commissions are usually paid at rates between 0.25% p.a. to 0.6% p.a.

Custodial Fees: Aegis fees per annum: 0.21% of portfolio value, or 0.15% of portfolio value (portfolio $1m to $2m), negotiable for portfolios over $2m.

As the value of the portfolio will fluctuate over time with market movements, the absolute dollar amount of this fee will vary over time.

Brokerage Commissions: Where securities are bought and sold on stock exchanges, the share broker's commissions and other costs (none of which BJCL shares) will be as follows:

Shares, bonds, property trusts:0.5%
 
Australian agency feeA$14.50
UK agency fee0.20% + 0.5% stamp duty on purchases
US agency fee0.15%
 
NZX minimum brokerage:NZ$40
ASX minimum brokerage:A$40
UK minimum brokerage:GBP40
US minimum brokerage:US$40