DISCLOSURE STATEMENT

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 and answers to questions about me. It provides details about:

• the services I can provide;
• how I operate my business;
• my qualifications as an investment adviser;
• what investment products I am able to sell you;
• which financial organisations I am able to place business with; and
• how I am remunerated.

This document was prepared on 29 Feb 2008 and updated on 5 August 2009.

Employer:	Costello Financial Services Ltd
Address:	129d Onewa Rd, Northcote P O Box 34778, Birkenhead Auckland
Phone:	09 4808308
Fax: Email:	09 4808319 info@costello.co.nz

EXPERIENCE

I have been an investment adviser since 1995 and give advice on savings and investment products provided by selected Bank, Insurance and Investment companies.

I also provide relevant advice on Insurance and Mortgage products.

QUALIFICATIONS

Relevant qualifications include:

I keep my qualifications up-to-date by regularly:

When we give advice we follow the internationally recognised six-step process:

1. Establishing the a relationship, and providing general and specific information about KiwiSaver.
2. Assisting you in determining your goals and expectations,
3. Providing tools to enable you to assess your financial profile,
4. Providing profile results and calculations of expected returns,
5. Enabling the completion of an application, its acceptance and your KiwiSaver plan initiation.
6. Provision of ongoing information about KiwiSaver

We will also maintain an ongoing relationship with clients, regularly reviewing progress and working with them over time to ensure their goals can be met, on request.

The services we provide will depend on your needs. They may include any or all of those detailed in this Disclosure Statement.

Our advice will take account of your personal objectives, financial situation and needs. It will be clear and concise, with enough detail for you to make an informed decision about whether to act on it.

I am a member of the Institute of Financial Advisers and, as a condition of my membership I adhere to the IFA Code of Ethics and IFA Practice Standards in all facets of my practice.

In compliance with the Institute of Financial Advisers Code of Ethics, I have professional indemnity insurance which covers all my areas of practice as listed above.

This insurance provides protection for clients for:

• any error or omission;
• defamation;
• employee dishonesty; and
• includes full "prior acts" protection.

The minimum level of cover is in compliance with Institute of Financial Adviser's Membership By-laws.

The underwriter is Lumley General Insurance.

As with all insurance, this cover has limitations and is subject to certain exclusions and terms and conditions.

In the first instance you can direct any complaints to Fidelity Life KiwiSaver, as they have an internal complaints handling process.

Any customer who has a complaint should also contact us. We will immediately investigate and, where justified, make our best endeavors to correct.

Should the complaint not be resolved satisfactorily, a complaints procedure is available through the IFA, by telephoning 0800 40 44 22 or by writing to:

National Office,
IFA,
PO Box 5513,
Wellington.
www.ifa.org.nz

Should the customer still seek a review, then the complaint should be addressed to the:

Insurance Ombudsman
P.O. Box 10-845,
Wellington:
Tel 04 4997612 or Fax 04 4997614.
www.iombudsman.org.nz

DISCLOSURE OF CERTAIN CRIMINAL CONVICTIONS

No principal officer of Costello Financial Services Ltd has, within the last five years, been:

• 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 me in my professional capacity; or
• expelled from, or prohibited from being a member of, a professional body.

Costello Financial Services Ltd has not, since it was established in 1970, been placed in statutory management or receivership.

The fees payable to me and/or Costello Financial Services Ltd for each application submitted is a maximum either $?? or ?? 0.20% as set out below:

OTHER INTERESTS AND RELATIONSHIPS

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, a market leading insurance and investment services provider. The relationship is in respect to risk and contractual savings business.

My membership of SovNet provides me with advantages such as advance product training, professional development, participation in peer group forums and industry information. These advantages allow me to better serve my clients and their unique needs.

Being a member of SovNet obliges me to place the majority of my customers risk and contractual savings business with Sovereign. However, it is not an exclusive arrangement and I am entitled to place a significant portion of my business with any provider of my choosing.

In this case we have chosen to support the Fidelity KiwiSaver scheme, as it has demonstrated superior support for its advisers and customers. 

I and other Costello Financial Services Ltd associates also have relationships with the organisations listed below.:

I am associated with the following persons in Costello Financial Services Ltd: Bryan Costello, Kevin Orrell, Connie Li, and Terry Kim.

The nature and extent of my relationship with these persons is that of associates. My associate(s) also have relationships with the above list of organisations.

Neither I nor an associate has any other financial or other relationship with any other person that would be reasonably likely to influence me in giving advice, except as described above.