Financial Advisers (Personalised DIMS) Regulations 2014

9 Annual reporting information
  • (1) An authorised financial adviser who provides a personalised DIMS to a retail client is required under section 29A of the Act to make available to the client, as regulation 10 prescribes, the following information in respect of the most recently completed disclosure year:

    • (a) a description of—

      • (i) the investment strategy to which the information provided under this regulation relates (including the investment objectives and a diagram or other description summarising the target investment mix under the strategy); and

      • (ii) the material changes to the investment strategy that have been made during the disclosure year (if any):

    • (b) the return on the client’s portfolio before tax but net of fees and trading expenses—

      • (i) over the disclosure year; and

      • (ii) over the 5-year period ending on the close of the disclosure year:

    • (c) a bar graph showing the return on the client’s portfolio before tax but net of fees, indicated by a bar on the graph and as a figure near the corresponding bar, that has been generated for the client for—

      • (i) each complete disclosure year since the date on which the client first started using the service; or

      • (ii) each of the last 10 complete disclosure years, if the client has been using the service for 10 or more complete disclosure years:

    • (d) the name of each class of financial products in the client’s portfolio, the name of the issuer of those products, and the number of those products in the portfolio (as at the end of the disclosure year):

    • (e) the current value of each of those financial products (as at the end of the disclosure year) or the most recent valuation of each of those financial products that was available at the end of the disclosure year, and a statement of—

      • (i) the basis on which that value is assessed or the valuation is carried out (for example, the value of quoted products is the market price); and

      • (ii) the date on which the value is assessed or of the valuation:

    • (f) the total value of the client’s portfolio at the beginning and the end of the disclosure year (based on the values disclosed under paragraph (e) and in the previous annual disclosure made under this regulation):

    • (g) the cash held for the client under the service at the end of the disclosure year:

    • (h) the total of all dividends paid, all interest paid, and other distributions or income received, in respect of the client’s portfolio during the disclosure year:

    • (i) the total percentage-based charges paid during the disclosure year in respect of the client’s portfolio, expressed as a percentage of the client’s portfolio:

    • (j) the total amount of other charges paid during the disclosure year in respect of the client’s portfolio:

    • (k) the individual action fees of each type paid during the disclosure year in respect of the client’s portfolio:

    • (l) a pie graph showing the composition of the financial products in the client’s portfolio at the end of the disclosure year, according to the asset categories specified in regulation 3(2):

    • (m) a reminder that the client may request past quarterly reports or obtain further information from the electronic facility referred to in regulation 8, as applicable.

    (2) The following apply in relation to that information:

    • (a) the information under subclause (1)(b) or (c) may also include return information for the same periods net of trading expenses but before all other fees and tax:

    • (b) subclause (1)(b) and (c) applies only in respect of disclosure years that start on or after 1 December 2014:

    • (c) information about a disclosure year under subclause (1)(b) is not required if the client did not have a client’s portfolio over the whole of that period:

    • (d) the information under subclause (1)(c) may be provided in a table (instead of a bar graph):

    • (e) information under subclause (1)(f) about the beginning of a disclosure year is not required if—

      • (i) the client does not have a client’s portfolio at the beginning of that disclosure year; and

      • (ii) the information provided under subclause (1) contains a statement of the reason why information about the beginning of the disclosure year is not included:

    • (f) the information may be combined in a document that includes ongoing reporting information under regulation 7.

    (3) The information specified in subclause (1)(l) must be based on the information that the provider judges to be the most appropriate to produce an accurate representation of the assets.