Secondary Disclosure Statement

Name and registration number of Authorised Financial Adviser:

Bruce Street : FSP No 18981

Physical Address:

140 Yaldhurst Road

Upper Riccarton, Christchurch

Trading name:

Streets Insurance Limited

T/A Streets

Telephone number:

03 348 3319

Cell Phone number:

0274 359 860

Email address:

bruce@streets.net.nz

This disclosure statement was updated on:

13^th February 2015

My experience and qualifications

I have been a financial adviser since 1988 and am authorised to give advice on:

• Personal Risk (Insurance)
• Retirement Planning
• KiwiSaver
• Investment Planning
• Business Insurance

My relevant qualifications include:

• Authorised Financial Adviser December 2011

Institute of Financial Advisers

• Business Insurance
• Financial Planning
• Disability Insurance
• Risk Management

I keep my qualifications up to date through continuing education annually, consisting of seminars, technical briefings, product accreditation and conference workshops of a minimum of 30 hours every 2 years. This continuing professional development includes keeping up to date with changes to the Code and relevant consumer laws such as the Fair Trading Act.

In terms of product development, I do the following:

• I am on a mailing list of each of the product providers that I use, and I ensure I read their updates
• I attend product seminars and Training seminars from various products providers.

How I Operate

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

1. Establishing the client-adviser relationship,
2. Gathering client data and determining your goals and expectations,
3. Analysing and evaluating the client's financial position, personal and business insurance, retirement planning and/or investment needs,
4. Developing and presenting our written advice,
5. Overseeing the implementation of the plan, and
6. Monitoring and reviewing the plan.

This can require a series of meetings with you a prospective client before our advice is finalised.  It also means I maintain a close ongoing relationship with clients, regularly reviewing progress and working with them over time to ensure their goals can be met.

The services I provide will depend on the client’s needs.  They may include any or all of those detailed in this Disclosure Statement.  My advice will take account the client’s personal objectives, financial situation and needs.  It will be clear and concise, with enough detail for them to make an informed decision about whether to act on it.

However, on occasions I may be asked or instructed to implement a particular product solution without providing any advice as to the suitability of that product, or levels of cover.  I am willing to do so, but will document to the client explicitly that I have implemented a transaction following their request to do so without providing advice.

Clients have the choice then of receiving advice, or providing an instruction to act without advice.  I will act and document accordingly.

On the occasions where I do not have the necessary expertise or capacity to advise a client I will refer them to an appropriate specialist if I am able to do so. Whether I am able to refer a suitable specialist or not though, I will give the client clear written advice that I am NOT able to advise them in the particular area, and who they should contact if they wish to receive such advice.

Professional Indemnity Insurance

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 underwriter is Lumley General Insurance (NZ) Ltd

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

Services and products I provide

The financial adviser services I provide are in relation to the following financial products:

• Personal Risk (insurance)
• Retirement Planning (KiwiSaver and existing clients)
• Investment Planning (Existing clients)
• Business Insurance Planning (insurance)

I only give advice in the particular subject areas set out above.

I only provide financial adviser services in respect of financial products provided by:

Fees

I do not charge fees

Other interests and relationships

I am the principal shareholder-employee of Streets Insurance Limited.

I do not have any other preferential terms (other than those readily offered to other market participants) or production performance agreements with any particular product provider.  I do not have any commercial relationships or contractual arrangements that present any particular conflicts of interest to consumers generally which would be reasonably likely to materially influence me in providing the financial adviser service.

However, for KiwiSaver retirement savings Street Insurance Limited’s preference is Grosvenor

I am a member of Kepa and Liberty Group. These organisations may provide me with a number of support services including Compliance overseeing, continuing professional development training, sales and marketing support, access to product research suppliers.

These organisations may receive revenue from product providers arising from business I do with you.

I do not have 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

I refer clients wanting mortgage advice to Colin Sutherland Mortgage Broker and receive a referral fee of 25% of his fee.

Remuneration

I am remunerated by Shareholder Salary.  The company receives commissions from product providers in all business lines.  This commission is potentially payable in a number of forms, primarily:

Introductory commission – a gross commission amount payable by a product provider for successful placement of new business with them.  This is generally a fixed proportion of the premium; or investment amount placed with that product provider, and typically accounts for 60% of my annual gross revenue. My remuneration is Gross Commission, although I may be responsible for repayment of gross commission generated for up to two years in the event of policy cancellation.

Service Commission – In addition to new business commission, I am paid an ongoing service commission for some products that reflects the ongoing advice and work required to manage the clients and particular products in place.

Renewal commission – a fixed percentage amount payable of the ongoing (or in-force) premium or investment amount held with a product provider for ongoing management of that business.  This type of gross commission typically accounts for 40% of my annual gross revenue.

Production Bonus Commission – a fixed percentage gross commission over-rider payable on volume of new business (or commission) generated through a particular product provider.

Persistency Bonus – a fixed percentage gross commission over-rider determined by the overall business quality, or persistency, held with a particular product provider.

In addition to these types of commissions, I may be entitled to receive some non-cash additional rewards from time to time due to promotional activities or incentives run by different companies to promote their products.  I may receive free or discounted travel and or corporate gifts from product providers I recommend. Most providers offer these types of incentives, during the course of a year and may run the whole year or they may be one of seasonal promotions.

In the past I have placed sufficient business with Companies to qualify for overseas conference and travel vouchers. This is not my main motivation for placing business with any Company.  I do on occasion receive benefits in the form of entertainment (eg. occasional rugby tickets, bottle of wine, golf days, etc), or subsidised professional development (eg. below actual cost conference attendance, subsidised cost training courses, etc.)  Or office supplies (eg. notepads, pens, etc). The values of these things are not usually known to me, nor are they predictable in advance or frequent.