Disclosure Statement

Bryan Tucker, Authorised Financial Adviser

Primary Disclosure Statement (Authorised Financial Adviser)

Name and registration number of Authorised Financial Adviser: Bryan Tucker FSP 99884
Address: 6 Creeve Place, Flat Bush, Auckland 2016
Trading name: Vesta Cover Ltd
Telephone number: 0800 283 782, mobile 021 467 424
Email address: bryan@vestacover.co.nz
This disclosure statement was prepared on: 16 May 2019

It is important that you read this document

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

In addition to the information that I must disclose to you in this statement, I must also disclose other information to you in a separate disclosure statement (or statements), including information about the types of services that I provide, the fees that I charge, and any actual or potential conflicts of interest. If I have not provided that information to you at the same time as I give you this statement, I must provide it to you as soon as I can.

What sort of adviser am I?

I am an Authorised Financial Adviser. This means I have been authorised by the Financial Markets Authority (the government agency that monitors financial advisers) to provide the financial adviser services described below.

How can I help you?

I have been authorised to provide you with financial adviser services of the following categories:

- Financial advice
- Investment planning services

When I do this, I will be able to provide a service about -

Financial products provided by only 1 organisation
Financial products provided by a small number of organisations (2 to 5 organisations)
Financial products provided by a broad range of organisations (more than 5 organisations)

​​How do I get paid for the services that I provide to you?

Payment Type

Fees only
My services are only paid for by the fees that you pay. I do not receive payments from other people or organisations that might influence my advice

Fees
My services may be paid for by fees that you pay as well as in other ways.

Commissions
There are situations in which I will be paid by other organisations. How much that payment will be depends on the decisions that you make.

Extra payments from my employer
I may receive extra payments from my employer depending upon the decisions that you make.

Non-financial benefits from other organisations
Other organisations may give my employer non-financial benefits depending on the decisions that you make.

I am required to tell you the specific fees, commissions, extra payments, and other benefits that I have received or will, or may, receive in relation to the services that I provide to you. I must tell you these things before I provide a service or, if that is not practicable, as soon as practicable after I provide that service

What are my obligations?

As an Authorised Financial Adviser, I must comply with the Code of Professional Conduct for Authorised Financial Advisers. I also have other obligations under the Financial Advisers Act 2008 (including regulations made under that Act) and under the general law.

What else should you know about me?

I have, within the previous 5 years, been the subject of disciplinary proceedings before the disciplinary committee (which deals with complaints regarding Authorised Financial Advisers), which has censured me. The disciplinary committee determined on 29 March 2019 that, in 2014 & 2015 I had breached a code standard because I did not take reasonable steps to ensure that the personalised service I provided to two clients was suitable. In the first instance a client failed to disclosed some minor health issues during the application process. The committee determined that this failure was in-part because I allowed too little time for application completion. In the second instance the client was intentionally withholding relevant information from me and the insurer. The committee determined that the client's conduct could have been discovered had I passed on to the insurer information I knew about his previous cover. I have since changed the process I follow when collecting health information.

What should you do if something goes wrong?

If you have a problem, concern, or complaint about any part of my service, please tell my internal complaints scheme so that my internal complaints scheme can try to fix the problem.

You may contact the internal complaints scheme by:

Contact Name: Maree McKernan
Telephone number: 021 141 0420
Email address: maree@vestacover.co.nz

Contact Kevin, our first point of call for complaints. A meeting can be organised with the adviser and client to try to rectify the concern, problem or complaint. This meeting will be recorded through minutes and filed in our complaints register. A letter will be sent to the client regarding the outcome of the meeting.

If we cannot agree on how to fix the issue, or if you decide not to use the internal complaints scheme, you can contact the Insurance & Financial Services Ombudsman. This service will cost you nothing, and will help us resolve any disagreements.

You can contact the Insurance & Financial Services Ombudsman at -

Address:
7th Floor, BDO House,
99-105 Customhouse Quay,
PO Box 10845,
Wellington

Telephone number: 04 499 7612
Email address: info@ifso.nz

If you need to know more, where can you get more information?

If you have a question about anything in this disclosure statement or you would like to know anything more about me, please ask me.

If you have a question about financial advisers generally, you can contact the Financial Markets Authority.

How am I regulated by the Government?

You can check that I am a registered financial services provider and an Authorised Financial Adviser at http://www.business.govt.nz/fsp/

The Financial Markets Authority authorises and regulates financial advisers. Contact the Financial Markets Authority for more information, including financial tips and warnings.

You can report information or complain about my conduct to the Financial Markets Authority, but in the event of a disagreement, you may choose to first use the dispute resolution procedures described above (under What should you do if something goes wrong?).

Declaration

I, Bryan Ernest Tucker, declare that, to the best of my knowledge and belief, the information contained in this disclosure statement is true and complete and complies with the disclosure requirements in the Financial Advisers Act 2008 and the Financial Advisers (Disclosure) Regulations 2010.


Signed: …………………………………………………………


Secondary Disclosure Statement (Authorised Financial Adviser)

Contact Details
Name and registration number of Authorised Financial Adviser: Bryan Tucker (FSP 99884)
Address: 6 Creeve Place, Flat Bush, Auckland 2016
Trading name: Vesta Cover Limited
Telephone number: 0800 283 782, mobile 021 467 424
Email address: bryan@vestacover.co.nz

This disclosure statement was prepared on: 25 September 2018

Services I provide financial adviser services on
I have been authorised to provide you with financial adviser services of the following categories:
- Financial advice
- Investment planning services

Financial products I provide financial adviser services on
I provide financial adviser services in respect of the following types of financial products:
- Unit trusts
- Superannuation (including KiwiSaver)
- Share and bond portfolios
- Term deposits
- Life policies

I am only permitted to provide financial adviser services in respect of those product providers for whom I hold an agency agreement and whose products I am accredited for under the terms of each product provider agreement. The list of products I have accreditation for is shown in Appendix A.

I may also, on request, provide financial adviser services in relation to other financial products which you already hold or on which you seek my services.

​A list of product providers of the financial products in respect of which I may provide financial adviser services is included in the list attached in Appendix A.

Relevant fees
Vesta Cover Limited may charge a fee for the financial adviser services I provide to you, which will be calculated on the following basis:

​Depending on the level of service we agree I will provide, Vesta Cover Ltd will charge you an establishment fee of between $450 and $750 (plus GST) to implement health, life, income, trauma or mortgage repayment insurance cover at a permanent discount of up to 28%. Vesta may elect to waive this fee if you include other covers (on which Vesta Cover will receive a commission) as part of your package, or if you are a member of an organisation that has an existing arrangement with Vesta Cover Limited.

For recommendations where an establishment fee has not been charged or an existing arrangement exists, the maximum Vesta Cover Limited may be paid by the product provider will depend upon which provider we choose. The following is a table showing the providers I can recommend and the maximum commission rates Vesta Cover Limited could receive: ​

In addition to the commission rates above Partners Life also allocate a form of deferred commission referred to as ‘Shadow Shares’ They are not actual shares in Partners Life but rather a deferred cash commission which is linked to increases in the value of Partner’s Group Holdings share price. The value of these ‘Shadow Shares’ is 1 share for each $20 of new premium introduced to Partners Life by Vesta Cover. Whether this equates to a payment to Vesta in the future will depend on growth in Partners Life’s share value and whether at least 85% of business introduced by Vesta Cover is still in place after 3 years.
*Asteron pays 130% commission on Income & mortgage protection products and 180% on Life & Trauma products.
**Asteron & AIA pay 5% ongoing service payments per annum from the 13th month, increasing to 10% from year 4 (year 5 for AIA).

If Vesta has discounted your premiums under an arrangement with your employer the commission rates shown above will be reduced by between 50% and 80% depending on the insurer. The actual commission I expect to receive for your recommendation is outlined below.

As I am paid a salary none of the fees or commission above come to me directly. However, as the major shareholder of Vesta Cover Limited I am entitled to 76% of any profit after expenses. It is extremely difficult to accurately estimate how much this profit would be but usually expect profits to range from 15% - 40% of total turnover.
You need to pay any flat fees upon receiving our invoice.

Remuneration for this Recommendation
It is anticipated that Vesta will receive an initial commission of 50% of the first year’s premium for health insurance and 140% for any Life/Income/Trauma Cover included with your plan. An ongoing service commission payment of 10% of the annual premium for any of these covers will also be paid from the 13th month after your cover is commenced. If your cover is cancelled within 24 months some or all of the initial commission will be recovered from Vesta by the insurer. For Health Insurance the ongoing service commission will range from 7.5% - 15% depending on the provider of the Health Insurance.

Relevant interests, relationships and associations
I have a contract for services with Vesta Cover Limited, which has an agreement with Sovereign, OnePath, Asteron, Fidelity, Accuro and Partners Life. This allows it to sell and to engage advisers to sell financial products and services made available by Sovereign, OnePath, Asteron, Fidelity, Accuro and Partners Life.

I am the director of Vesta Cover Limited

​ I am a 76% shareholder of Vesta Cover Limited

​ As I am the director and major shareholder of Vesta Cover Limited I may receive a share of any of its profits that are distributed, some of which may directly relate to my sales of financial products and providing financial advice.

Other than those disclosed above, neither I nor any associated person of mine has or will have or may have any other interest, relationship, or association that a reasonable client would find reasonably likely to materially influence me in providing the financial adviser services.

Relevant Remuneration
Vesta Cover Limited may receive all or some of the following types of commission when products are sold:

- Initial commission
- Servicing commission
- Investment Product commission
- Assets Under Management commission
- Up-front commission

All commission is paid by the particular product provider. Commission on all products is paid direct to Vesta Cover Limited which then pays me.

In addition to product commission, Vesta Cover Limited or I may receive remuneration that consists of recognition and rewards through various product provider incentive programmes. Depending on the total volume of business I place with a particular product provider, I may receive from that product provider invitations to conferences, hosted entertainment events, corporate gifts, professional training, subsidised software licenses and marketing support. Product providers may also from time to time offer sales incentive competitions, with rewards such as gifts, travel and conferences. Whether or not I will receive non-cash rewards and benefits such as those outlined above, and the value of such rewards or benefits, is not known to me at this time, and I will not know whether I am entitled to such rewards or benefits until sometime after I have provided the financial adviser service to you. Whether or not I receive such non-cash rewards and benefits, such as those outlined above, and the value of such rewards or benefits, is not dependent on the financial adviser service I provide to you. Instead, these rewards and benefits may be based on the collective business I generate for that product provider.

Vesta Cover Limited may qualify for a financial bonus through the various product provider incentive programmes. The financial bonuses are usually calculated monthly, annually or as other commissions are paid. These programmes reward Vesta Cover Limited based on the net annual growth of all sales by the advisers in Vesta Cover Limited. These sales include all products sold for each provider offering the incentive programme. A portion of that financial bonus may be paid to me, the amount of which is yet to be determined.

I manage any conflicts of interest that may arise from the receipt or possible receipt of the above types of remuneration in the following ways:

- I am required to follow an advice process whereby client needs and objectives are identified and product recommendations are made on the basis of those needs.
- I must disclose and explain any perceived or potential conflicts of interest to each client when completing the advice process with that client

It is not practicable for me to provide all relevant remuneration information that I am required to include in this disclosure statement, which relates to the specific remuneration I or Vesta Cover Limited may receive on providing a financial adviser service to you, which will be dependent on your needs and circumstances and my analysis in this regard. I will provide further details of the amount or rate of such remuneration (to the extent practicable), the name of the person it is received from and details of the arrangements I have in place to manage conflicts of interest that may arise, when I provide you with the financial adviser service.

Relevant Qualifications and Experience

I have the following qualifications relevant to providing financial adviser services:

1. National Certificate in Financial Services (Level 5)
2. Current Agency Agreements and accreditation for Sovereign, OnePath, Fidelity, Asteron, Accuro and Partners Life.

I ensure my competence is maintained and tested on an ongoing basis through my continuing professional development plan. My plan is developed, maintained and kept up-to-date by:

- Undertaking and evidencing a minimum of 20 continuing professional development hours per year which involves a combination of structured and unstructured learning;
- Completing and maintaining a personal record of my development needs and progress towards meeting those needs;
- Regulatory training I receive that is arranged, and paid for by Vesta Cover Ltd in line with legal requirements;
- I receive frequent and regular communications to update me on regulatory changes.

I have over 32 years’ experience in the financial services industry.

I have been contracted to Vesta Cover Limited (previously Goldstar Group Limited) since 1 February 2012 as a Financial Adviser.

My role involves: providing advice and investment solutions to clients and prospective clients of Vesta Cover Limited in the following areas:

Cash/Debt Management
Financial Management. (Strategies, techniques and/or advice intended to optimise short, medium and long term cash flows, assets and liabilities, budgeting cash management, use of debt, banking, credit-cards.

Risk Management
Risk Management. (Strategies, techniques and/or advice aimed at controlling exposure to financial risk, insurance risk and alternative approaches to managing risks.

Estate Planning and Taxation
Estate and tax Planning. I provide limited advice only in this area, I will refer you to specialists who can provide advice about the following (Strategies, techniques and/or advice for ownership, protection, distribution of accumulated estate assets, maximising legitimate taxation opportunities.

Retirement and Investment Advice
- Retirement Management. (Strategies, techniques and/or advice for the accumulation and application of wealth to meet investment goals and other financial goals in retirement years, including adequacy and cash-flow planning)
- Investment Planning. (Strategies, techniques and/or advice aimed at building and managing investments likely to meet other financial goals)
- I provide advice on a broad range of investments; they include the following types of securities: unit trusts, superannuation, share and bond portfolios, term deposits and life policies, Kiwi Saver, Exchange Traded Funds.

I also have the following experience in providing financial adviser services:

- From June 2004 to 1 January 2012 I held an AMP Practicing Certificate. This was a certificate established and maintained by AMP Services (NZ) Limited for AMP advisers who had undertaken general financial services training. I attended in-house and industry training each year to maintain my AMP Practicing Certificate
- Area Manager for AMP from 1997 to 2004
- Senior customer service specialist for AMP from 1992 to 1997

Membership of a Professional Body
I am a member of Sovnet. SovNet is an association of like-minded professional financial advisers who have chosen to form a business relationship with Sovereign, the market leading insurance and investment services provider. The relationship is in respect to risk and contractual savings business.

Professional Indemnity Insurance
I have and Vesta Cover Limited has Professional Indemnity Insurance covering myself and Vesta Cover Limited in respect of a wrongful professional act. As with all insurance, this cover is subject to certain exclusions.

Payments to Grey Power
If you have indicated that you are a member of Grey Power as part of your application for cover then Grey Power may be eligible for a payment of $100 inclusive of GST for each adult included in your policy. This fee only applies if you include life/funeral cover with your policy. It does not apply if you choose to pay a flat fee.

Declaration

I, Bryan Ernest Tucker, declare that, to the best of my knowledge and belief, the information contained in this disclosure statement is true and complete and complies with the disclosure requirements in the Financial Advisers Act 2008 and the Financial Advisers (Disclosure) Regulations 2010.