John Reuhman - Disclosure Statement
Inaccordance with the provisions of the Securities Markets Act 1988 andthe Securities Markets (Investment Advisers and Brokers) Regulations2007 this Disclosure Statement provides you with information about John Reuhman.
This document was prepared on 20 February 2008
Contact Details John Reuhman
c/- NZIJ Stockbrokers Limited
Address Level 9, Willbank Court
57 Willis Street
Wellington
PO Box 5398
Wellington 6145
Phone + 64 4 499 3592
Other relevant contact details
Fax + 64 4 499 3590
Email invest@nzij.co.nz
Website www.nzij.co.nz
Experience. I have spent 21 years in sharebroking. I was a Corporate Adviser with Francis Allison Symes from 1983-1985. Four colleagues and I started our own sharebroking firm, Mouat Bolland & Co. (“MB”) in 1985. MB subsequently merged with Buttle Wilson to become the largest sharebroking firm in New Zealand. The merger lasted only eight months! I moved to Auckland and established MB’s Auckland office in December 1986. After the October “87 Crash” MB’s Auckland business was sold to Alan Hawkin's Ararimu Holdings. I became a self-employed consultant and wound down the margin trading company Listed Securities. In May 1990 I was appointed as the Managing Director of Access Brokerage Ltd. MNZSE. Under my direction Access was restructured and I opened the Auckland office. I moved back to Wellington in 1990 and joined the international recruitment consultancy firm of Morgan & Banks, specialising in IT.
I was a Member of the NZ Stock Exchange from 1985 until 2003 and then an NZX Broker until August 2004 when I voluntarily resigned. I am the Managing Director of NZIJ Stockbrokers. NZIJ Stockbrokers Ltd was a Corporate Member of the NZSE from 2000 until July 2004 when it relinquished its NZX Firm designation.
NZIJ is a niche/boutique investment services business, established in September 1993 (previously trading as Mackay Reuhman from 9/93-8/94 and Reuhman & Co. from 9/94 until 12/2000).
I do not provide any advice to any NZIJ clients
Payment. I receive a salary.
How NZIJ Operates
I am employed by NZIJ Stockbrokers Ltd. (“NZIJ”) as the Managing Director. Please refer to NZIJ’s Disclosure Statement for additional information and disclosure.
NZIJ, its employees and myself do not provide any advice to NZIJ clients
NZIJ from time to time sends emails and/or flyers, investment statements and approved advertisements, detailing new and current investment information. NZIJ also publishes the New Zealand Investment Journal 11 issues a year.
Any request that follows for investment statements is actioned.
NZIJ also acts on any instructions received from clients to purchase or sell securities.
NB. The final decision to invest is entirely that of the clients/investors
Areas of AdviceNZIJ does not provide advice to its clients
Dispute Resolution A dispute resolution facility is available by contacting NZIJ Stockbrokers Ltd.
Client Funds Account. NZIJ operates a Client Funds Account for all client monies at the ASB Bank. All investors' cheques should be made payable to the "NZIJ Client Funds Account". All monies for investment will be deposited into the NZIJ Client Funds Account and held there in trust until released or distributed by specific instruction from the investor. Signed applications for investments will constitute such direction. NZIJ. maintains records of all transactions in a separate ledger in its accounting system. The Client Funds Account is included in the audit by our auditors Crombie & Associates and reviewed by our accountants Sherwin Chan & Walshe. No interest is paid to investors on monies held in the Client Funds Account. Any interest accrued in the Client Funds Account remains the property of NZIJ.
Money Handling Procedures. All monies for managed fund investments are payable direct to the Fund Managers and are not held by NZIJ.
Disclosure of Criminal Convictions
I can confirm that none of the following five points apply to me.
- Convicted of an offence under the Securities Markets Act 1988; the Investment Advisers (Disclosure) Act 1996, or for a crime involving dishonesty;
- Securities Markets Act 1988, the Investment Advisers (Disclosure Act) 1996 or the Securities Act 1978 or for a crime involving dishonesty;
- Adjudged bankrupt;
- Prohibited by an Act or by a court from taking part in the management of a company or business;
- Expelled from, or prohibited from being a member of, a professional body.
NB. John Reuhman was the subject of an adverse finding by a court in a proceeding taken against me in my professional capacity as the Organisng Broker of a new share issue. I was convicted of a “Breach of the Securities Act” on 18 December 2003 and was fined $2,000.
Remuneration Schedule
NZIJ charges brokerage on the sale and purchase of Securities at the following rates. These rates include any payments due to NZIJ transaction agents.
Brokerage Rates
$50.00 Minimum Brokerage - New Zealand Shares
Order Amount NZ AU UK US
Internet Broking and Discount Telephone Broking:
Minimum Brokerage (per order) NZ$50 A$50 GBP75 US$150
Up to $50,000 1% 1% 2% 3%
For orders above $50,000 (flat rate ) 0.35% 0.5% 1.5% 2%
Transaction Fee (per order) NZ$5.50 A$5.50 £5* US$10
Please Note: Brokerage is on a graduated scale per security and order.
A Buy order, paid by personal cheque may incur a NZ$25 bank special answer fee. Purchase of a foreign bank draft for a Buy incurs a NZ$25 fee.
* In addition to the above charges UK Purchases attract a Stamp Duty of 0.5% on the purchase
consideration.
Fixed Interest Brokerage Rates
$50 Minimum Brokerage
Government Stock, local authority stock, corporate bonds, capital notes, debentures.
Minimum brokerage (per order) NZ$50
For orders up to $50,000 - 1%.
Orders > $50,000 - 0.5%
Plus transaction fee per order of $5.50.
New Share Issues and Fixed Interest Issues
NZIJ will normally receive brokerage from the organising broker in any new issue in which it allocates stock to its clients. Because of the variable nature of new issues the amounts will vary, but will generally be in the range of 0.5% to 1.5%. Brokerage rates are detailed in the Investment Statement that is required to be made available to the client prior to an Investment decision being made. In some instances the brokerage may be shared with another financial intermediary who has made stock available to NZIJ Stockbrokers Limited. (This brokerage is not a direct charge against the client)
Example. $10,000 invested at a brokerage rate of 1.5% would earn NZIJ brokerage of $150, and the client would receive a Shareholder Statement showing they had purchased 10,000 shares at $1.00
Finance Company Debentures
Application forms that are stamped with NZIJ Stockbrokers Limited will earn brokerage for NZIJ.
The rates of brokerage vary between different Finance Companies and the term of the deposit. The longer the deposit term selected the greater the brokerage paid. (This brokerage is not a direct charge against the client). Brokerage rates are disclosed in the Investment Statement
Example $10,000 invested for 1 year at a brokerage rate of 0.5% will earn NZIJ $50 The same investment made for 2 years may pay 1.00% and would earn NZIJ $100, and the client would receive paperwork to show that they have $10,000 invested.
Managed Funds
“ZERO Entry Fees” - Managed Funds - 100% Entry Fee Rebate applies to most of New Zealand and Australia’s best managed funds, unit trusts and superannuation funds, that are registered in New Zealand. NZIJ may earn trail commission on any managed fund investment in the range of 0.15% to 0.5% depending on the fund manager.
Specialty Investment Products
Fund Managers from time to time may issue a limited time to invest in product. (Once the issue closes, typically after about 6 weeks) no further investments will be accepted.
Application forms that are stamped with NZIJ Stockbrokers Ltd earn brokerage for NZIJ.
Liontamer Investments Limited issue products on this basis from time to time and NZIJ waive the Entry Fee of 3% due to the fact that no advice is offered to the investor. However, NZIJ will earn 2% brokerage on the sum invested on any application form processed with a NZIJ Stockbrokers Limited stamp affixed. This is the only fee that NZIJ receive during the life of the Investment. Should a client choose on maturity or early redemption of the Investment to reinvest into a new Liontamer product a further 2% brokerage will be paid to NZIJ. (This brokerage is not a direct charge against the client)
As an example $10,000 invested at the brokerage rate of 2% will earn NZIJ $200, and the client would receive paperwork to show that they have $10,000 invested.
Man Investments Limited issue OM - IP products on this basis from time to time and NZIJ will earn 4% brokerage on the sum invested on any application form processed with a NZIJ Stockbrokers Limited stamp affixed. NZIJ will also receive 0.5% per annum trail commission on the total sum under management for each issue from the start of the second year of investment. Should a client choose on maturity to reinvest into the same OM �" IP product (if this option is made available by Man Investments Limited) a further 2% brokerage will be paid to NZIJ, and trail commission at 0.5% per annum on the total sum under management from the start of the second year from the investment start date. (This brokerage is not a direct charge against the client)
Example A$10,000 invested at the brokerage rate of 4% will earn NZIJ A$400, and from the start of the second year of the investment will receive A$50 per A$10,000 of value or part thereof, and the client would receive paperwork to show that they have A$10,000 invested.
Other Matters
NZIJ Staff and I may receive at Christmas time gifts from certain Fund Managers that would normally be less than $50 in value. They may also receive invitations from time to time to attend sports events or other entertainment. NZIJ staff also attend from time to time presentations that may launch new investment products or provide updates on existing investment products ones and may be “fed and watered” at such events.
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