Financial Servies Guide

An Authorised Representative of Australian Finance Group Financial Planning Pty Ltd [A.B.N 74 099 029 526] Australian Financial Services Licensee No 247105, will be providing the Financial Services to you.

Prior to receiving any advice, your adviser is required to provide you with part two of this FSG which is their Profile and Guide to Fees and Charges. This profile will identify:

• Your financial adviser

• The Financial Services they are authorised to provide;

• How financial advice is documented;

• What kinds of Financial Products those services relate to;

• How you pay for the services; and

• Any associations and incentives which may impact the services you receive.

Your adviser will provide financial planning services as either an Authorised Representative or a Sub-Authorised Representative of a Corporate Authorised Representative, on behalf of AFG Financial Planning. While your financial adviser has the flexibility in the services they provide to you, AFGFP remains responsible for the advice provided to you.

AFGFP is a Principal Member of the Financial Planning Association of Australia Ltd www.fpa.asn.au

Yes, but to do so your adviser needs to find out your individual objectives, financial situation and needs before they recommend any financial products or services to you.

You have the right not to divulge this information if you do not wish to do so. In that case, your adviser is required to warn you about the possible consequences of not having your full personal information. You should read these warnings carefully.

Your financial adviser will provide you with a recommendation which is appropriate to meet your needs and objectives. To achieve this your financial adviser will:

• Work with you to understand your needs and objectives and personal circumstances;

• Explain and agree with you the scope of advice being provided and importantly what is not being provided;

• Provide you with an SoA which documents their recommendations to you, the basis on which the advice is being given, information about fees and commissions, and any associations that may have influenced the provision of the advice; and

• Provide you with a PDS containing information about each product recommendation to help you make an informed decision about whether to acquire that product.

Your adviser will explain to you any significant risks of financial products and strategies recommended to you. If they do not, you should ask them to explain those risks to you.

AFGFP has an approved product list and all products are supported by research from independent research providers such as Morning Star. Your financial adviser is restricted to the Approved Products List, unless they receive prior special approval from AFGFP to use an alternative product.

You may tell us how you would like to give us instructions. For example by telephone, fax or other means such as e-mail.

There may be occasions when you are provided with advice that is time bound. In these critical situations your adviser will provide all information that would normally appear in a SoA verbally, provide you with the relevant PDS/disclosure documents and provide you with a SoA within five business days.

Your financial adviser may meet with you on a number of occasions to discuss possible investment options and strategies before finalizing their recommendations. All recommendations will be explained to you and documented in a SoA. You should not act on advice provided to you until you have received the SoA and had enough time to consider and understand the recommendation.

In the following cases you may not receive an SoA:

• General Advice – such as advice provided in seminars and through newsletters that do not consider your personal circumstances.

• Further Advice – Recommendations may not be provided to you in writing, in cases where your personal circumstances have not significantly changed and the further advice is related to advice previously provided in a SoA. Further Advice will be recorded by your financial adviser. You may request a copy of that further advice at any time for up to 7 years from the date your adviser provided the advice to you.

A fee/commission may be charged by your financial adviser for the initial advice they provide and for the preparation of a SoA.

The amount you may be charged will be based on the scope and complexity of advice that is being provided to you, the value of the funds you elect to invest and/or the insurance premiums you pay. This fee is arranged before your financial adviser commences work. Payment terms are agreed upon at this time.

An implementation fee/commission may also be charged by your financial adviser where you agree to implement the advice that has been provided to you. This will be based on the value of the funds you invest and will be documented in the SoA.

Your financial adviser can provide ongoing administration and advice services to ensure the strategy and products they recommend continue to meet your needs and circumstances. If you elect to receive ongoing services, you will be charged a fee/commission based on the scope and complexity of services and the value of your account balance or insurance premiums. The amount of the fee/commission will be agreed and documented in the SoA. The fee/commission may be deducted from your account each month or payable directly to your financial adviser. The fee/commission may continue to be payable until you notify your financial adviser that you no longer wish to receive ongoing services.

Additional contributions you make to your account may incur a further fee that will be charged to your account. The amount of that fee will be based on the value of the funds you invest and will be agreed with you and disclosed in the SoA.

Yes, AFGFP has relationships with Australian Finance Group Limited, Macquarie Bank, Tower Australia and Allianz Australia:

Australian Finance Group Ltd (AFG) is the parent company of AFGFP;

• Macquarie Bank is a 10% shareholder of AFG Ltd;

• Tower Australia is a 5% shareholder of AFG Ltd;

• Allianz Australia Insurance Limited is a 5% shareholder of AFG Ltd.

AFGFP also has agreements in place with certain product providers to receive additional payments explained below.

AFGFP is entitled to receive a volume rebate from AXA of 0.165% per annum of total amounts invested in the Generations and Summit platforms. In addition, where investment is in the IPAC portfolios within these platforms, AFGFP is entitled to receive an additional 0.11% per annum of total amounts invested (i.e. a total of 0.275% per annum including the platform rebate).

This amount is paid by AXA, from the amounts that it is entitled to receive, and is not an extra charge to clients invested in these products.

AFGFP is entitled to receive volume rebate from Beacon Investment Management Services Limited of up to 30% on account keeping fees paid by clients invested in Beacon Wrap.

These amounts are paid by Beacon from the amounts it is entitled to receive, and is not an extra charge to clients invested in these products.

AFGFP is entitled to receive volume rebate from BT Financial Group Pty Limited of up to 25% on account keeping fees paid by clients invested in BT Wrap & BT Wrap Essentials.

Any investments held in Wrap Advantage products will also provide clients invested in the products a fee rebate of 0.10% and AFGFP may also receive a volume rebate of an additional 2% on account keeping fees paid where these investments are held.

These amounts are paid by BT from the amounts it is entitled to receive, and is not an extra charge to clients invested in these products.

AFGFP is entitled to receive a volume rebate from Colonial First State Investments Limited of 0.20% per annum of amounts invested in Colonial First State FirstChoice Investments, Margin Lending, Personal Super, Pension Products, FirstWrap & FirstWrap Plus.

The following products are excluded from this arrangement:

• Colonial First State FirstChoice Employer Super;

• Investment options in the funds invested in cash and fixed interest; and

• Investment options in the funds which are managed by “specialist boutique funds managers”, as determined by Colonial First State from time to time. At the date of this FSG this includes 452 Capital, PM Capital and Platinum funds.

This amount is paid by Colonial First State Investments Limited from the amounts that it is entitled to receive and is not an extra charge to clients invested in these products.

AFG Financial Planning Pty Ltd is entitled to receive a marketing allowance from IOOF of up to 0.20% per annum of all amounts invested in the following products:

• IOOF Global Investment Solutions;

• IOOF Global Retirement Solutions;

• IOOF One Investment Solutions; and

• IOOF One Retirement Solutions.

This amount is paid by IOOF from the amounts that it is entitled to receive and is not an extra charge to clients invested in these products.

AFGFP is entitled to receive an ongoing override payment from Macquarie Wrap Solutions of up to 0.275% per annum of all amounts invested in the Macquarie Wrap platform (excluding Macquarie Cash Management Trust accounts, retail managed fund accounts and other “below the line” assets).

This amount is paid by Macquarie Investment Management from the amounts that it is entitled to receive and is not an extra charge to clients invested in these products.

Navigator (Aviva) Platform - Investments

AFGFP is entitled to receive up to 25% per annum of the net administration fees received on the total amount invested in the Navigator platform and 0.22% of total amounts invested in Navigator Margin Lending.

This is paid by Aviva, from the amounts that it is entitled to receive, and is not an extra charge to clients invested in these products.

As an example based on total investment of $100,000 and a net management fee of $1,000 AFGFP would receive up to $250 per annum.

Navigator (Aviva) Platform – Insurance, Protectionfirst

AFGFP is a participant of the Aviva Protectionfirst Partnership Allowance Program. This Program is an incentive program that provides financial remuneration of up to 12% of the new insurance premiums attributed to the Licensee and covers the 12 month period from the 1st January 2009 to the 31st of December 2009. The estimated reward that AFGFP may earn for this period is approximately $50,000 inclusive of GST.

AFGFP is a participant of the TOWER Australia Dealer Partner Rewards Program. This Program is an incentive program that provides financial remuneration of 5% of the growth of in force premium directly to the Licensee and covers the 12 month period from the 1st January 2009 to the 31st of December 2009. The estimated reward that AFGFP may earn for this period is approximately $50,000 inclusive of GST.

Some providers of tax effective product pay a Marketing Allowance in addition to commission payments on initial investments. Where a Marketing Allowance is paid, half (50%) will be retained by AFGFP and the remainder will be paid to your adviser. Marketing Allowances are paid for investment products, by Great Southern Securities, Macquarie, Rewards Group and Timbercorp, and may be up to 5.5% of your investment at no extra charge to you.

Depending on advisers achieving certain compliance and financial benchmarks, AFGFP may share up to 25% of retained revenue* with its Authorised Representatives/Corporate Authorised representatives. Any benefit paid in this way by AFGFP to its representatives is at no additional cost to you.

* Retained revenue may consist of the “Other Remuneration Received by AFGFP”, as outlined above in the FSG Part 1, the amount retained by AFGFP for all remuneration upon implementation of the products and services provided by your adviser as defined in the FSG Part 2 and your SoA when you receive advice, and any other revenue, fees or charges paid by your adviser to AFGFP for services provided from time to time.

Different providers pay differing amounts of trail commission and this could be considered to have an influence on the advice provided.

AFGFP and product providers may offer incentives from time to time.

AFGFP's Authorised Representatives may be entitled to conference trips (national and international) offered by AFGFP or product providers. On occasion Directors of AFGFP and Australian Finance Group Ltd may be offered trips (national and international) by product providers.

As a Principal Member of the Financial Planning Association, AFGFP is required to keep a register that outlines the Alternative Forms of Remuneration which we pay and receive. This register is publicly available. If you would like to receive a copy, please send your request to financialplanning@afgonline.com.au

Authorised representatives of AFGFP may pay or receive remuneration from third parties for referring clients.

Referral remuneration may be a percentage of any commissions or fees you pay to your representative for financial planning services which is paid to the referral source.

Your representative may also receive remuneration from a referral party such as a percentage of any commissions or fees the referring party receives from you for their services.

If a referral fee is to be paid or received details will be included in your Statement of Advice.

Your financial adviser and AFGFP may disclose your personal information (as necessary):

• Where the law requires us to do so

• If you consent

• On a confidential basis to industry bodies, product providers, agents, contractors or third party service providers that provide financial, administrative or other services for the purposes of your investments.

AFGFP's privacy policy explains in detail AFGFP's policies on the management of your personal information. You can request a copy of this policy from your financial adviser at any time.

If you have a complaint about the service provided to you, you should take the following steps:

1. Contact your adviser and tell them about your complaint.

2. If your complaint is not satisfactorily resolved within three days, please contact AFGFP on:

T: 1800 003 623
F: 1800 003 624
Website: financialplanning@afgonline.com.au
Email: info@fos.org.au
Mail: PO Box 710 West Perth WA 6872

AFGFP will try and resolve your complaint quickly and fairly, and provide an initial response within 14 days of receipt, with a final response within 30 days of receipt.

3. If you still do not receive a satisfactory outcome, you can contact the Financial Ombudsman Service (‘FOS'). FOS is an ASIC approved external disputes resolution scheme, their contact details are:

T: 1300 78 08 08
F: (03) 9613 6399
Website www.fos.org.au
Email: info@fos.org.au
Mail:GPO Box 3, Melbourne, Victoria, 3001

AFGFP is a member of FOS and their service is provided free of charge to the consumer.

If your concerns involve ethical conduct, you may wish to consider raising your concerns in writing with the Financial Planning Association of Australia Limited (FPA). The postal address is PO Box 109, Collins Street West, Melbourne, VIC 8007.

The Australian Securities and Investments Commission (ASIC) has a free call Info Line 1300 300 630 which you may use to make a complaint and obtain information about your rights.

AFGFP has professional indemnity insurance in place in respect of the financial advice provided to clients by its Authorised Representatives.

AFGFP's professional indemnity insurance covers the advice provided by Authorised Representatives during the period of their authorisation, even if they cease to be authorised by us.

It does not cover advice provided by authorised representatives after they cease to be authorised by AFGFP or services that are not offered or authorised under AFGFP's AFS License.

Kevin Hobbs

271813

191 Peninsula Rd Maylands, WA 6051

08 9370 1911

08 9370 1955

0413 159 191

kevray@iinet.net.au

Statement of AdvicePreparation Fees

I do not charge for the preparation of our advice.

Investment Implementation (1st year only)

(Upfront Commission)

Investment Of Superannuation & Non Superannuation Funds (Example, for an investment of $10,000 in a product whose manager pays AFGFP 5.5% commission AFGFP will receive an upfront commission of $550 in the first year)...

From 0% To 5.5% Max

Investment Ongoing (Commission)

Based On the Account Balance Of Superannuation & Non Superannuation Portfolio’s. The ongoing commission is paid based on the value of your holding in a product for as long as you hold the product. (Example, if your account balance is $250,000 and you are charged 0.66%, AFGFP would receive $1650 per annum).

From 0% To 0.66% Max (pa)

Life Insurance (Risk Products) Implementation

(1st year only)

Implementation of Personal Insurance Recommendations

The commission is a percentage of the insurer's base premium i.e. premium excluding stamp duty, fire services levy, GST, model loadings or any other government charges, taxes, fees or levies. (Example, if your annual premium was $500 AFGFP would receive up to $650 in the first year based on the maximum).

From 0% To 130% Max

Life Insurance (Risk Products) Ongoing Commission

AFGFP will also receive a renewal commission from the product provider each year while your policy is in force. This is a percentage of the annual premium you pay. (Example, if your annual premium is $500 AFGFP would receive up to $150 per annum based on maximum).

From 5% To 30% Max (pa)

Tax Effective Implementation Commissions

(1st Year only)

Tax effective product providers pay up to 13.2% commissions. (Example, if you invest $100,000 AFGFP would receive $13,200).

From 0% to 13.2% Max