Wealth Management Services
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Fat Prophets Pty Ltd
ABN 62 094 448 549               AFSL No. 229183

This Financial Services Guide (FSG) is dated 16th June, 2015. It is provided to you by Fat Prophets Pty Ltd (Fat Prophets, we, our, us) to inform you of the financial services provided by us and to comply with our obligations as the holder of an Australian Financial Services Licence (AFSL No 229183).

From when does this FSG apply?

This FSG applies from 16/06/2015 and remains valid unless a further FSG is issued to replace it. We may give you a supplementary FSG. It will not replace this FSG but will cover services not covered by this FSG.

Purpose of the FSG

This document is designed to help you decide whether to use any of the services offered by us and our representatives and authorised representatives. It also provides information about:

> who we are and how we can be contacted
> the products and services we can offer, our responsibilities in relation to these products and services and what type of service we give
> how you can instruct us
> what you can expect to pay for the financial services we provide
> our relationship with others and how we and any other relevant parties are paid
> what to do if you have a complaint, and how it will be dealt with
> for what purpose we use your contact data

The information provided is of a general nature. If you still have any questions after reading this FSG, please contact us. Our contact details are:

Location address > Level 3, 22 Market Street, Sydney NSW 2000

Postal address > GPO Box 5029, Sydney NSW 2001

Other contact details

Tel no > 02 9252 7171

Fax > 02 9266 0488

Email > info@fatprophets.com.au

Website > www.fatprophets.com.au


What other disclosure documents and statements will I receive?

If we provide you with personal advice or further assistance in selecting products or services having regard to your particular circumstances and needs, we will issue you with a Statement of Advice (SoA) that will set out the personal advice we have given you, including any recommendations we offer along with our rationale for our recommendations and information about any fees, commissions, associations or relationships which might influence the provision of that advice.

We may provide further advice to you after we have given you a SoA. If we do not give you a record of this further advice you may request one, either verbally or in writing, within 7 years (or as prescribed by law) of us providing it to you.

Generally, where we arrange for the issue of a financial product to you, you will receive a Product Disclosure Statement (PDS) or other relevant disclosure documents that includes information about the product so that you can make an informed decision whether to acquire the product. The PDS will include any relevant terms, significant risks and costs associated with the supply of that financial product.

Who are we and what financial services are we authorised to provide?

Fat Prophets is a locally and internationally recognised brand. Fat Prophets has been providing financial services to investors since 2001 and remains one of Australia's Premier Equity Research and Wealth Management companies. Fat Prophets holds a current Australian Financial Services Licence (AFSL) No 229183, which authorises us to provide certain financial services. We act on our own behalf and under our own AFSL when we provide services to you. We can offer our services to both wholesale and retail clients. The financial services we are able to provide and financial products in which we are able to provide such services under this licence are listed in the table below:

Provide financial product advice in relation to:

> basic deposit products;

> deposit products other than basic deposit products;

> derivatives;

> foreign exchange contracts;

> government debentures, stocks or bonds;

> interests in managed investment schemes including IDPS;

> MDA Services;

> retirement savings accounts (RSA) products;

> securities; and

> superannuation;

Deal in financial products by issuing, applying for, acquiring, varying or disposing of the following financial products:

> derivatives;

> foreign exchange contracts;

> interests in managed investment schemes including IDPS;

> securities;

Deal in a financial product by arranging for a person to deal in financial products by issuing, applying for, acquiring, varying or disposing of the following financial products;

> MDA Services

Deal in financial products by applying for, acquiring, varying or disposing of the following financial products on behalf of another person:

> basic deposit products;

> deposit products other than basic deposit products;

> derivatives;

> foreign exchange contracts;

> government debentures, stocks or bonds;

> interests in managed investment schemes including IDPS;

> MDA Services;

> retirement savings accounts (RSA) products;

> securities; and

> superannuation;

Deal in a financial product by underwriting an issue of securities;

Provide custodial and depository services.

What information do we offer to you, as our client?

We provide general advice to our clients via our Investment Reports. Our reports cover both short term trading and medium to long term investments. They seek to be of benefit to investors under all market conditions by combining a macro/thematic assessment and fundamental value research with technical analysis, all looked at from a contrarian perspective.

The advice is general in nature only and does not take into consideration your financial situations, goals or needs. You must consider the appropriateness of the advice prior to acting on this information. Please seek advice or read the Product Disclosure Statement of the product and the Financial Services Guide of the Financial Product Issuer before acting on the information provided.

What are our responsibilities and what type of advice do we give?

Where you have subscribed to our online reports, or you have opened a Super Prophets Invest Direct account, Super Prophets Superannuation account we will only provide general advice and information regarding the financial products and services that are covered by our AFSL. This information or advice does not take into account your particular objectives, financial situation or needs and because of that you should, before acting on the advice, consider the appropriateness of the advice having regard to your objectives, financial situation and needs.

If you have invested in a Managed Account, the advice provided may be either general or personal in nature. In the case of the latter the advice provided is a function of taking into account one or more of your objectives, financial situation and/or needs. In order to do this, you will be asked to answer a number of questions relating to your financial position and risk profile. Upon receipt of this information, Fat Prophets will review it and may contact you to further assess your suitability to invest in this product. Fat Prophets will then provide you with a written Statement of Advice drawing on the information that you have provided. Any material changes in your circumstances should be disclosed to Fat Prophets as they occur so that Fat Prophets may assess whether the recommendations included in the SoA that you receive continue to be suitable for you.

Details of Associations or Relationships we have with other financial service providers that may influence us when providing services to you

Fat Prophets has a relationship with providers of portfolio administration services. We may also enter into associations or relationships with providers of products such as cash management trusts. These relationships in no way influence the provision of financial services, in particular the advice provided to you by Fat Prophets. The services and products we offer under the Fat Prophets and Super Prophets brand are outlined in the table below. Fat Prophets is the promoter of these products.

What products and services we offer and our role

Fat Prophets acts as the Investment Manager for the Fat Prophets Separately Managed Account, Fat Prophets Managed Accounts and Model portfolios specified in the Model Portfolio Profiles included in the Investment Menu PDS. Fat Prophets Pty Ltd is the Model Portfolio Manager in respect of the Fat Prophets Small & Mid Cap Model Portfolio (“FPSMCMP”), Fat Prophets Mining and Resources Model Portfolio (“FPMRMP”), the Fat Prophets Concentrated Australian Share Model Portfolio (“FPCASMP”) and the Fat Prophets Australian Share Income Model Portfolio (“FPASIMP”). In return Fat Prophets will receive a portion of the fees paid by you in relation to both of the above mentioned Managed Accounts. (As detailed on the table included in the section titled ‘Details of Associations or Relationships we have with other financial service providers that may influence us when providing services to you’ and the relevant PDS).

Fat Prophet’s role in relation to the delivery of each Product or Service to you is outlined in the table included in the section titled ‘Details of Associations or Relationships we have with other financial service providers that may influence us when providing services to you’.


Details of Associations or Relationships we have with other financial service providers that may influence us when providing services to you

The costs, remuneration and other benefits that may be received by us, our employees and others

The information in this section is subject to change and does not include information in relation to taxes or duties that you may be required to pay in relation to an investment. Unless otherwise stated, all fees, charges, commissions and benefits disclosed in this FSG are in Australian dollars and are exclusive of the Goods and Services Tax (GST).

These rates are indicative rates only as the fee structure is different for different Managed Accounts. The actual fees will be disclosed in the PDS (as applicable). All fees, commission and charges are subject to change. For an example of how fees are calculated please refer to the ‘Fees and other section of the PDS’

If you have opened a Managed Account with Fat Prophets, Fat Prophets will receive a portion of the fees paid by you as detailed on the table below:


If you have opened a Super Prophets Invest Direct account or Super Prophets Superannuation account or a Super Prophets SMSF Service account, Fat Prophets will receive a portion of the fees paid by you as detailed on the table below:

Investment Reports

Fat Prophet’s investment reports is a subscription based service. A subscription fee is payable at the time you subscribe to the service, the cost of which will depend on the length of the subscription and the services to be provided. The standard cost of a one year subscription to a single report is $848.50 (inclusive of GST). The level of subscription may change from time to time as a result of promotional offers.

Seminars

A fee may be charged for attending investment seminars provided by Fat Prophets. The level of fee will depend on the nature of the seminar and will be published on our website (www.fatprophets.com.au).

Other remuneration

In the case of certain products such as managed funds, Fat Prophets may receive an upfront commission and/or an ongoing (or trailing) commission from the product provider, based on your investment. The commissions can vary from product to product and we will seek your written authorization to receive such payments prior to you entering into such product.

Our employees may in turn be remunerated on a commission basis for the services provided to you. Their remuneration is included in the commissions, fees and charges discussed above. Where your business has been referred to Fat Prophets or your trade instructions require the use of a third party, Fat Prophets may be required to share a percentage of the commission, fees or other charges with other parties. Payments to directors, employees, representatives, authorised representatives, referral agents and third parties will only be paid if they are authorised by you.

Payments to directors, employees, representatives, authorised representatives, referral agents and third parties will only be paid if they are authorised by you.

How you can instruct us and your obligations?

If you have opened an account with Fat Prophets or a Super Prophets account you will be able to contact us by email or facsimile to provide instructions relating to your account.

You must review any resulting changes made to your account via the on-line portal and report any discrepancies to us.

If you have a complaint, how it will be dealt with?

We are committed to providing our clients with the highest standard of financial service. However if you are unhappy with our financial service and wish to make a complaint, Fat Prophets has a formalised client complaint resolution procedure. All complaints are reviewed and investigated by the Chief Operating Officer and we advise you of the outcome by phone or in writing. The Chief Operating Officer can be contacted on 02 9252 7171 or by email to info@fatprophets.com.au. If you make a complaint, our first response will be to contact you to discuss the complaint and to register a formal record of such complaint. We will try to resolve your complaint quickly and fairly.

If, despite our best efforts, you believe your complaint has not been satisfactorily dealt with or you are not satisfied with our response after 45 days, you may lodge a dispute with The Financial Ombudsman Service (FOS).

Fat Prophets has agreed not to contest a final resolution from FOS.

You can contact FOS by writing to:

Financial Ombudsman Service
GPO Box 3
Melbourne VIC 3001
Toll Free: 1300 780 808
Facsimile: (03) 9613 6399
Website: www.fos.org.au

You may also wish to contact ASIC to discuss your complaint and/ or your concerns. You can contact ASIC on its free call Infoline 1300 300 630.

Professional Indemnity Insurance

In accordance with Regulatory Guide RG126 and Section 912B of the Corporations Act 2001, Fat Prophets has Professional Indemnity Insurance in place which covers the work done for it by its representatives and employees.

Privacy

For what purpose do we use your contact data?

The privacy of your personal information is important to us. We are committed to ensuring that any personal information we collect will be handled in accordance with our privacy policy and in accordance with the requirements of the Privacy Act 1988 (Cth). The personal data that we collect from you will only be used by us to assist in the planning of marketing proposals, education seminars and provision of general product advice to clients. Personal data may also be used in the provision of personal advice in regard to our Managed Account or Broking services.

If you would like a copy of the information we hold, please contact us.

Our Privacy Policy is available on the Fat Prophets website.