Disclosure Statement
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Name: |
NZIJ Stockbrokers Limited |
In accordance with the provisions of the Securities Markets Act 1988 and the Securities Markets (Investment Advisers and Brokers) Regulations 2007 this Disclosure Statement provides you with information about NZIJ Stockbrokers Limited. (“NZIJ”)
This document was prepared on 20 February 2008.
Contact Details:
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NZIJ Stockbrokers Limited |
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Address: |
Level 9, Willbank Court 57 Willis Street Wellington PO Box 5398 Wellington 6145 |
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Phone: |
4 499 3592 |
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Other relevant contact details |
4 499 3590 (fax) invest@nzij.co.nz (email) www.nzij.co.nz (website) |
NZIJ has operated since 1993, previously under the names of:
“MacKay Reuhman - Member of the New Zealand Stock Exchange” from 1993 – 1995 and
“Reuhman & Co - Member of the New Zealand Stock Exchange” from 1995 – 1999 and
“NZIJ Stockbrokers Ltd - Member of the New Zealand Stock Exchange” from 2000 – 2004
NZIJ has published the New Zealand Investement Journal since 1994.
NZIJ does not provide any advice to its 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.
NZIJ Contracts:
Direct Broking Limited for NZ Share Transactions
E – Trade Limited for Australian Share Transactions
Fortis Private Investment for UK Share Transactions
UBS Financial Services Inc for US Share Transactions
NZIJ is able to supply an investment statement for most fund managers who have registered their funds in New Zealand, as well as Finance Companies. NZIJ does receive allocations from time to time to Primary issues such as new equity issues and fixed interest issues.
NZIJ is not required to place any level of business with any supplier or financial organisation.
Areas of Advice
NZIJ does not provide advice to its clients.
The basis on which fees are charged is attached on the schedule following.
A dispute resolution facility is available by contacting NZIJ Stockbrokers Ltd.
NZIJ operates a Client Funds Account for all client monies. All investors cheques should be made payable to “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. 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.
All monies for managed fund investments are payable direct to the Fund Manager and are not held by NZIJ.
All NZIJ staff can confirm that none of the following five points apply to them, with the exception of John Peter Reuhman (see note below).
Convicted of an offence under the Securities Markets Act 1988; the Investment Advisers (Disclosure) Act 1996 or the Securities Act 1978, or for a crime involving dishonesty;
A director or principal officer of a body corporate that has committed an offence against the 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;
The subject of an adverse finding by a court in any proceeding taken against them in their professional capacity; or
Expelled from, or prohibited from being a member of, a professional body.
NZIJ has not, within the last five years, been placed in statutory management or receivership.
John Reuhman was the subject of an adverse finding by a court in a proceeding taken against him in his professional capacity as the Organisng Broker of a new share issue. He was convicted of a “Breach of the Securities Act” on 18 December 2003 and was fined $2,000
NZIJ staff have their own disclosure statements on the NZIJ website www.nzij.co.nz and are available on request
NZIJ charges brokerage on the sale and purchase of Securities at the following rates.
(These rates include any payments due to NZIJ transaction agents)
$44.95 Minimum Brokerage - New Zealand Shares
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Order Amount |
NZ |
AU |
UK |
US |
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|---|---|---|---|---|---|---|---|---|
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Internet Broking: |
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$0 - $20,000 |
NZ$44.95 |
AU$39.95 |
- |
- | ||||
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For orders above $20,000 |
0.35% |
0.35% |
- |
- | ||||
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Discount Telephone Broking: |
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$0 - $10,000 |
1.00% |
1.00% |
2.00% |
3.00% | ||||
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$10,001 - $50,000 |
0.50% |
1.00% |
1.50% |
2.00% | ||||
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For orders above $50,000 (flat rate ) |
0.35% |
0.50% |
1.00% |
1.50% | ||||
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Minimum Brokerage (per order) |
NZ$44.95 |
A$39.95 |
£50 |
US$150 | ||||
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Transaction Fee (per order) |
NZ$5 |
A$5 |
£5** |
US$5 | ||||
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
$49.95 Minimum Brokerage
Government Stock, local authority stock, corporate bonds, capital notes and debentures.
$49.95 minimum brokerage
For orders up to $50,000- 0.5%.
Orders above $50,000 - 0.35%
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)
As an 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
As an 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.
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)
As an 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.
NZIJ Staff 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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