portfolio administration service. - Bell Potter Securities

2.0 INTRODUCTING THE BELL POTTERPORTFOLIO ADMINISTRATION SERVICE2.0 introducingthe service . . .Bell Potter’s Portfolio Administration Service (PAS) isa comprehensive wealth administration service whichincorporates portfolio administration and reporting acrossa wide range of assets and optionally investment advice,trade execution and access to research (where limitedbrokerage is included in the annual fee). It allows you tomake more informed investment decisions by providinginformation about all your investments in the one report.PAS is a service that is available only to private clients ofBell Potter. You appoint us to administer your investmentportfolio.However you retain your relationship with yourBell Potter adviser and all decision-making authority.We take care of all the day-to-day administrationassociated with your investments – settling andrecording transactions, reconciling and tracking incomeentitlements, managing and processing corporate actions,providing up-to-date and comprehensive reporting oftransactions, valuations and tax consequences – whileyou keep all the benefits associated with owning your ownshare portfolio.Your investments continue to be registered in your name,care of our address. Using a special purpose LimitedPower of Attorney, we attend to the centralisation of yourportfolio including the management of your income andcorporate actions. You retain full authority over yourcash account, and can continue to draw cheques, makepayments and arrange electronic withdrawals.If we require instructions from you regarding yourinvestments, we will contact you. For most issues such ascorporate actions, you can instruct us verbally, however,instructions relating to transfers of funds need to be inwriting. You can arrange for periodic payments from youraccount, for instance to ‘pay’ yourself a salary out of yourinvestment income.All transactions are centrally recorded and reported upon,taking into account not only the cash flows but also thevaluation and tax effect of all transactions.You continue to participate in all corporate actionsrelating to your portfolio assets including share rightsissues, share purchase plans, schemes of arrangement,exercise of options, and retain full discretion over buyingand selling shares.We provide comprehensive reporting each quarter withan additional end of year tax report. The quarterly reportsinclude:QQQQQQQQQQAll transactions;All cash flows (for Bell Potter Cash Account andMacquarie Cash Management Account);All corporate actions and income received;Full asset valuation, including listed and unlistedsecurities; andRealised and unrealised capital gains tax calculations.By having assets registered in your name, you continueto receive the benefits of owning the investments, suchas dividend and distribution payments (including anyapplicable franking credits or tax free components),while all the hassles of paperwork and administrationare handed to us.4

3.0 BENEFITS OF THE BELL POTTERPORTFOLIO ADMINISTRATION SERVICE3.0 benefitsAdministers a full range of investmentsThe Bell Potter Portfolio Administration Service canadminister a wide variety of asset classes. These include fulladministration and reporting on the following asset classes:QQQQQQQQCash, bank bills, term deposits, debentures andgovernment bondsASX and NSX listed securities including shares,company options, listed trusts, stapled securities,hybrid securities, exchange traded funds and warrantsManaged funds including retailand wholesale fundsDirect international equitiesThese assets do not need to have been purchased throughBell Potter. We are able to incorporate investments originallyacquired through other brokers, financial advisers andfinancial institutions. We are able to transact on theseassets on your behalf, irrespective of how you acquiredthem. We can also record and report on information youprovide on client-controlled assets* including:QQQQQQQQQQQQCollectibles such as artworkOverseas investmentsLife insurance policiesLoansReal estateOther unlisted InvestmentsBy incorporating these assets into the service, Bell Pottercan provide you with a complete picture of all your assetholdings.*If we record a client-controlled asset for you, wewill include and rely on the quantity of units held andvaluation most recently notified to us by you in preparingyour quarterly and annual reports.Centralised portfolio administrationCentralising your portfolio administration enables you tokeep track of all your investments with a single contactpoint. This ensures you always have a comprehensiveview of your asset holdings, helping you make informedinvestment decisions.Comprehensive quarterly and online daily reportingThe Portfolio Administration Service records all yourtransactions and income as well as corporate actionssuch as rights issues or term deposit maturities. The PASadministration team will monitor and take care of thesematters on your behalf according to your instructions, andreport on the outcome.Each quarter, the Portfolio Administration Service willsend you the following reports:QQQQQQQQPortfolio valuation reports, detailing the value of each ofyour investments;Asset allocation, showing your exposure to each assetclass;Transaction statements, listing all capital transactions(settled and unsettled), cash movements (forMacquarie CMA and Bell Potter Cash Account clientsonly), income and expenses paid during the period; andRealised and unrealised capital gains tax statementsfor the current financial year.Several of these reports are updated daily and availableto view online at www.bellpotter.com.au.5

Professional administrationWe reconcile and track yourinvestments against yourentitlements. For instance, we ensurethat all of your expected dividendsare actually received, and that otherentitlements such as access to SharePurchase Plans are made availableto you.We are highly experienced at dealingwith share registries, fund managers,fixed interest securities issuers andother third parties, and are able tonavigate their various procedures andrequirements for documentation.A dedicated portfolioadministration teamYour adviser is the primary point ofcontact for all matters relating toyour account. Each of our advisershas access to a dedicated PortfolioAdministrator who is, in turn, theirprimary contact for administrativematters.Our large team of administratorsincludes specialised staff dealingwith corporate actions, managedfunds, fixed interest, warrants,options and international securities;over 20 full time staff concentrateon the administration of around $2billion in client assets 1 , covering arange of investment types.Your adviser’s assigned administratorattends to all ongoing administrativefunctions as well as other servicessuch as account reportingpreparation and ensuring that allcorporate actions are carried out onyour behalf, exactly as you instruct.CGT and Income ReportingYour comprehensive portfolio reportssummarise the composition of yourincome and distributions and providea detailed realised and unrealisedcapital gains taxation summary.Transferring assets into or out ofPAS will not generally realise anycapital gains or losses. If all or someof your assets are currently held ina pooled wholesale managed fundenvironment (ie grouped with otherinvestors), moving these holdingsmay result in a Capital Gain event.The portfolio reports are constructedto help you take full advantage of anycapital gains or losses, prepare yourtax return and position your portfoliotax effectively. These taxation reportsare sent to you at the end of eachfinancial year.Our calculations are not tax advice.However, we perform ongoing taxrelatedcalculations, and provide realtimereports. These take into accountthe effect of mergers, demergers,schemes of arrangement, tax-freeand tax deferred trust distributions,capital returns, bonus issuesetc. These reports also calculateassessable capital gains under eachof the pre-CGT, indexed and discountmethods. The effect of these issuesis apparent in the realised andunrealised CGT reports, and shouldassist you in making better-informeddecisions.End of year tax reportingMost investors have some investmentsecurities that provide tax effectiveincome. These securities mayinclude listed property trusts, stapledsecurities, infrastructure funds,managed funds, and listed warrants.In many cases the tax treatment ofthis income is not known until wellafter the end of the financial year, andis provided to investors in a rangeof statements from issuers. Thesestatements are typically receivedfrom July through to October.The Portfolio AdministrationService collates all of the incomereceipts, updates the tax records andprovides all the tax information ina single consolidated set of reportswith consistent and documentedtreatment. You or your tax adviser canuse this in the preparation of your taxreturn.We also update the CGT cost bases ofyour existing holdings for the effect oftax effective distributions.1 As at 30 June 20106

4.0 how doesit work?Administration serviceWhen using the Bell Potter Administration Service, youremain the legal and beneficial owner of your assets(unless the nominee service is requested). However, allcorrespondence relating to your investments is redirectedto Bell Potter’s Portfolio Administration department, whowill process the associated paperwork on your behalf,leaving you free to focus on your investment strategy.Your relationship with your adviser and the decisionmaking process will be largely unchanged. You caninstruct your adviser regarding any purchase, saleor corporate action, and where required the PortfolioAdministration team will complete all the associatedpaperwork on your behalf, wherever possible. If a newissue becomes available, your adviser will be notified andwill communicate this to you. If you wish to participatein a new issue, Bell Potter will organise the paperworkand draw the necessary funding for you from yourCash Management Account. Dealing in managed funds,debentures and fixed interest securities or internationalshares is handled in the same way.Cash accountAs the centre of your investment portfolio, the nominatedCash Management Account provides a hub to manageand report on cash inflows and outflows. The PortfolioAdministration Service uses the Cash Account toreconcile all cash movements through your portfolio,and as a secure parking spot for your funds as theyawait investment. You will need to establish a CashManagement Account to start using the PortfolioAdministration Service. The Cash Management Accountallows the Portfolio Administration team to reconcile your:QQQQQQQQQQDividendsDistributions from other investmentsTax paymentsPAS feesPension paymentsClients have the option of using the Bell Potter CashManagement Service, which incorporates a chequebook.Dividends, distributions and corporate actionsWhen you transfer or purchase financial assets, we willprovide instructions to the share registry regarding yourpreference for receiving income. Income from listedsecurities and managed funds can be directed to yourCash Account or reinvested when a dividend reinvestmentplan is offered.When a company announces a ‘voluntary’ corporateaction, Bell Potter will request your instructions. Whenrequired, you will need sufficient cleared funds in your CashAccount to participate in any corporate action. If you hold afixed term investment (such as a term deposit) we will notifyyou and seek your instructions prior to the maturity of theinvestment. Alternatively, you may provide Bell Potter withstanding instructions to roll over the investment each time itmatures. In all cases, your client adviser will be the personwho contacts you. In most cases where new instructionsare required in respect of an existing investment, you canprovide them with a verbal instruction.7

5.0 UNDERSTANDING THE FEE STRUCTURE5.0 feesFee for serviceThe fees for the Bell Potter Administration Service havebeen designed so that they are easy to understand, arevery transparent and represent exceptional value for thelevel of service offered.Fees are charged quarterly in arrears, and are based onthe value of your portfolio at the end of the quarter. Theminimum investment in the Portfolio AdministrationService is $250,000.There are two fee options – ‘Fee for service excludingbrokerage’ and ‘Fee for service including brokerage’ –as detailed below. You should discuss with your adviserwhich of these options suits you best.There are no termination fees associated with thePortfolio Administration Service (although a minimumperiod may apply), and no entry fees associated withsetting up of standard accounts. A fee may be chargedif the PAS administration department is required tobackdate transactions or research capital gains taxinformation.It is important to remember that fees for the PortfolioAdministration Service may be tax-deductible in the yearin which they are paid. Bell Potter does not offer adviceon taxation, however, your personal taxation adviser oraccountant can advise you further on this.Annual Fee excluding brokerage (all figures are inclusiveof GST)Portion of the portfolio $0 to $1 million 0.85%Portion of the portfolio $1million to $3 million 0.55%Portion of the portfolio in excess of $3 million 0.44%Minimum quarterly fee applicable $531.25Please note: brokerage per trade is payable in addition to these fees andshould be discussed separately with your adviser. Please refer to ourFinancial Services Guide (FSG) for typical brokerage rates.Annual Fee including brokerage (all figures are inclusiveof GST)Portion of the portfolio $0 to $1 million 1.25%Portion of the portfolio $1million to $3 million 0.80%Portion of the portfolio in excess of $3 million 0.55%Minimum quarterly fee applicable $875.00Please note: 20 brokerage free ASX listed transactions per financialyear are included in this fee. Once 20 transactions have been exceeded,brokerage, at a rate discussed with your adviser, will be applied.8

6.0 SETTING UP YOUR PORTFOLIO ADMINISTRATION ACCOUNT6.0 setting upEstablishing an accountThe establishment of a portfolio within PAS mayrequire the recording of all historical informationdetailing the acquisition dates and cost base ofeach individual asset you currently own in orderto provide an accurate reflection of the currentcapital gains tax position of the portfolio.Upon receipt of your completed PAS applicationform, you will be sent an initial acknowledgementletter advising that work has commenced on theestablishment of your account. Once your accountis fully established, we will send you an initialPortfolio Administration report showing yourholdings. We ask that you review this to ensure wehave correctly taken on the assets you intend us toadminister, and have correctly recorded the costacquisition information for each of your holdings.Once the account is active you will receive thefollowing on an ongoing basis:QQQQQQA quarterly statement, which is generally sentin the month following the end of the quarter;An annual statement, which is sent after alltax-effective income is received, reconciled andreprocessed. This may be as early as August oras late as NovemberNotification of voluntary Corporate Actions asrequired.9

7.0 terms andconditionsCorporate actionsBell Potter will comply withyour instructions with respectto any corporate actions,however if we do not receiveinstructions by the date wenominate, you are taken tohave instructed us to allow anyentitlement to lapse. Whererequired, you must havesufficient cleared funds in yourCash Account to participate inany corporate action.If you have a fixed terminvestment such as a termdeposit, we will notify youand seek your instructionsprior to the maturity of yourinvestment. Alternatively, youmay provide us with standinginstructions prior to thematurity of your investmentto rollover the investmenteach time it matures. If we donot receive your instructionsprior to the maturity date, theproceeds will be credited toyour Cash Account.Reinvestment plansIf you wish to participatein a dividend or incomereinvestment plan, you cangive us standing instructionsrelating to any specific asset.We do not accept standingDRP instructions for yourportfolio as a whole.Ownership of assetsWhere possible, Bell Potterwill hold all investments inyour name and as necessarywill act under the LimitedPower of Attorney granted tous in order to implement yourinstructions.Where this is impractical, wewill use our wholly ownednominee company BellPotter Nominees Ltd or subcustodiansused by it.FeesAs a client of the Bell PotterPortfolio AdministrationService, you must pay us:QQQQAn administration fee,debited from your portfolio,calculated quarterly inarrears based on yourportfolio balance on thelast day of March, June,September and Decemberof each year; andAny establishment fee andtransfer fee that we agreewith you (usually dependingon the complexity of yourinitial portfolio)Unless Bell Potter organisesalternative arrangementswith you, we will deduct anyestablishment fee from themonies you initially give us.We have a standing instructionto pay fees and charges fromthe relevant portfolio, and if inarrears we may realise assetsat such times and on suchterms we decide to pay feesand charges. We may offsetfees and charges against anyamounts payable by us or forus to you.Our fees are payable until thePortfolio Administration teamfinalise all administrative andcustodial functions on yourbehalf.Bell Potter will deduct a feeeach quarter, and at the timewe finalise the administrationof your portfolio (refer to thesection titled Termination). Ifyou don’t make cash availablein your Cash Account, we willbe required to sell some of theassets in your portfolio.For clients who holdmanaged funds, it isimportant to rememberthat the fund managersunderlying the service alsocharge management fees.The annual fee excludingbrokerage includes theportfolio administration andreporting services as detailedin sections 3 and 4. Brokeragewill be charged for all ASXtrades at a rate agreed withyour adviser. This fee does notinclude provision of advice,trade execution or access toresearch.Where the fee includes 20free trades per annum, youwill receive 20 brokeragefree ASX listed transactionseach financial year. Oncethese transactions havebeen utilised, brokerage willbe charged on subsequenttransactions at a brokeragerate advised by your BellPotter adviser for theremainder of the financialyear.Tax and social securityAny investment decisionyou make will have taxationconsequences and if youreceive social security,may have social securityconsequences as well. BellPotter is not licensed toprovide taxation or socialsecurity advice.If you are making investmentdecisions, we recommendthat you seek taxation advicebefore you buy or sell andremember that capital gainsand losses will occur.The Australian taxationsystem is complex thereforeBell Potter recommendsthat you seek advice from aprofessional taxation adviserif you are unsure as to howour services may affect yourindividual tax situation.10

Investment RiskAll investing involves risks.The services provided by BellPotter and detailed in thisdocument provide you withaccess to investments and arenot investments in their ownright. The principle risk lieswith the chosen investmentsheld through the PortfolioAdministration Service.Generally, investment returnsmay be influenced by a varietyof factors both on a local andglobal scale. These includechanges within the companyor managed fund, changes inan asset’s market, economicand political conditions,technology failures, interestrate movements, exchangerates, government policyand market sentiment. Formanaged funds, investmentreturns are also affected by theperformance of the investmentmanagers and their specificinvestment style. These factorsmay cause your investmentsto fall as well as rise andsometimes not generate anyincome.Diversifying your portfolioacross various companiesand across asset classes andinvestment managers willreduce risk, as does investingover an appropriate timeframe.As with similar services,the Bell Potter PortfolioAdministration Service isdependent on the accuracy andefficiency of our operating andcomputer systems. Bell Pottertakes risk management veryseriously and have proceduresin place designed to ensure thatour systems work effectively.InstructionsInstructions provided aresubject to the Bell PotterSecurities Client Agreementand CHESS SponsorshipAgreement. Instructions mustbe received by us and be insuch a form as we require(generally by letter, fax, emailor verbally).Instructions are deemed tohave been received by BellPotter only after they have beenacknowledged by a personwithin the firm authorised totake instructions (for exampleyour adviser or their assistant).When you give instructionsverbally, Bell Potter isentitled to deal in good faithwith any person holdinghimself or herself as youor your representative,that has been previously orexpressly identified in theagreement and applicationforms. Bell Potter must usereasonable endeavours to acton instructions as soon aspracticable but need not do soby a particular time.Bell Potter may set cut-offtimes for the receipt ofinstructions, and may recordany instructions in a mannerwe wish. We may determine theorder in which we give effectto instructions from variousclients or from the same clientif received at the same time,and may give effect to part ofone instruction and part ofothers.Trade confirmationFor listed shares, deliveryand receipt of securities byBell Potter will be acceptedand executed against TradeConfirmations or any otherauthorised written instructionfrom Bell Potter SecuritiesLimited.A copy of each TradeConfirmation will be forwardedto you for your records, andfor other investments we willforward you a transactionconfirmation either at the timea transaction is carried out onyour behalf or as part of yournext statement.LapsingInstructions will remain inforce until:QQQQCancelled, if we permit thisSuperseded, if we permitthis (we may set limitson the ability of a laterinstruction to override aprior one)Bell Potter need not act oninstructions if:QQQQQQBell Potter doubts aninstruction’s authenticity(we need not forma positive view as toauthenticity and will notact if the authenticity isdoubted)We doubt the authorityof any person you havepurportedly authorised togive instructions (we neednot form a positive viewas to authority but mustnot act if the authority isdoubted)We suspect that youdo not comply with ouragreement with youQ Q Charges are unpaid or wethink there is a risk thatthey will be unpaidQQQQQQWe suspect that theinstructions do notcomply with any relevantsecurity, managed fund, oradministrative requirementWe suspect that actingmight cause a breach ofany law, regulation, ASICpolicy, ASX Business Ruleor market practiceActing would breach anyQQQQQQQQQQQQQQrelevant minimum amountwe set from time to timeWe suspect that you orany person you authorised(such as your adviser) hasnot, or may not have:- Properly completed suchthings as we require(such as registering orcompleting forms)- Properly completed suchthings as the law directlyor indirectly requiresof them (such as anadviser providing an offerdocument to you)- Provided such thingsas we require (such asinformation)- Provided reasonableassistance to us to enableobligations to be metIt is to acquire or acceptsomething which is not anasset which we administeror the asset is suspendedWe are not satisfied as to themeaning of the instructionWe consider that acting onthe instruction would beimpractical for some reasonYou have madearrangements which weconsider unsatisfactoryfor payment of any unpaidamounts, or amountswhich we consider willbecome payable, in respectof investment or we, or theysuspect these paymentmight not be madeYou have madearrangements which weconsider unsatisfactoryfor payment of an amountthat will become payable inrespect of the investmentUpon receipt of sellingPORTFOLIO ADMINISTRATION SERVICE.11

QQQQQQinstructions there isinsufficient stock within theportfolio assets for deliveryof the saleWe are not satisfied thatwe are indemnified to oursatisfaction against possibleliability arising from actingon the instructionThe instruction wasreceived after ourarrangement with you endsThere are any othercircumstances described inour agreement with you oradvised from time to timeInstructions and suspensionIf the instruction is to be actedon or is received whilst theoperation or offering of theservices or any relevant partor related service is suspended,these instructions are thentaken to be received when thesuspension finishes.TerminationYou must provide Bell PotterPortfolio AdministrationService with two weeks noticeif you wish to terminate thisagreement and service. BellPotter will supply you with thesame notice period, unlessyou were to breach thisagreement, in which case wecan end it immediately.Upon termination:QQQQQQQQWe need not act on anyinstruction unexecuted attermination or receivedafter terminationBell Potter is still entitledto fees and expensereimbursement andindemnification from yourportfolioWe may deduct any moniesfrom the relevant portfolioas our agreement with youor law contemplates, ormake a reserve for suchpayments or any liability.Fees on terminationwill be based upon theportfolio valuation takenQQfrom the date at which theportfolio is terminating andcalculated on a pro-ratabasis from the start of thecurrent quarter up untilthat date.Clients must acknowledgethat in some cases itmay take longer than twoweeks for Bell Potter tofinalise arrangements withcertain institutions andfund managersSuspensionWe may suspend the operationor offering of the service orany part of related service forsuch period as we considernecessary or desirable, andmust advise you if practicableand we consider it necessary.Minimum requirementsWe can set and change anyminimum required valueor quantity as a minimumamount for any particularclient or groups of clients for:QQTheir portfolio;QQQQQQQQThe balance in their CashAccount;An asset, of class or typeof asset forming part oftheir portfolio;A transaction or type oftransaction involving theirportfolio; orAny other item relating tothe serviceEach client must complywith any minimum amount.Bell Potter has a standinginstruction from you to realiseany asset of your portfoliothat we choose, on terms andat time we choose to ensurecompliance with any minimum.Death or incapacityIf you die or become subjectto a legal disability suchas bankruptcy or insanity,only the survivor (wherethe deceased was a jointholder) or the legal personalrepresentative (in any othercase) or any other persondetermined by us need to berecognized by us as having anyclaim on your portfolio.NoticesCommunications to us canbe delivered, posted, faxed oremailed to us.Communications to you canbe delivered, posted, faxed oremailed to your address asmost recently notified.Communications, as distinctfrom instructions whichare deemed to be receivedfrom time to time areacknowledged, are taken tobe received (as relevant) onphysical receipt for deliveries,three days after posting,two hours after the time anytransmission report statesthat the whole fax was sentor (provided the sender hasno reason to doubt its receipt)two hours after an email wassent.It is sufficient for deliverythat we send you or any otherperson you authorise:QQQQQQQQAn electronic link to a copyof a communicationInformation indicatingwhere the communicationcan be accessedIn the case of joint clients,your physical address orelectronic address meansthe physical address orelectronic address of thefirst named in our recordsA cheque payable to youor a person authorizedin writing by you may beposted to your physicaladdress or if we agree,handed to you or anyperson we have no reasonto doubt that you haveauthorised.IndemnitiesYou indemnify Bell Potter, ourrelated entities (as identifiedby the Corporations Act) andour delegates against:QQAll actions, proceedings,claims, demands, tax,QQcosts, expenses andliabilities arising fromanything we or they do onyour instructions or underour agreement with you; andAll direct loss anddamage which they and/or we suffer in connectionwith your breach of ouragreement with you, yourand your agent’s fraud ornegligence, and your ortheir breach of any lawof agreement you or theyhave with any personrelative to the portfolio.Indirect lossand acts of GodBell Potter is not liable forindirect or consequential losssuffered by any person.In spite of anything else inthis agreement, Bell Potter isnot liable for any act of God,insurrection, civil disorder,terrorist action, war, militaryoperations, national or localemergency, acts or omissionsof government or authority,industrial dispute, fire,lightening, explosion, flood,subsidence, bad weather,failure of power supply,equipments or communicationsystems or the Internet,or acts of other personsincluding any delegate orrelated entity, or any otheritem outside Bell Potter’sreasonable control.Your rightsYou warrant to us that:QQQQQQIf you are a body corporate,you validly exist under yourplace of incorporation andthat you have the corporatepower to carry on itsbusiness as it is now beingconductedYou have the full powerand authority to enterinto and perform yourobligations under thisagreement and have doneall things to enable thisThis agreement constitutes12

QQyour legal, valid andbinding obligation and isenforceable andYou are not aware ofanything that mightadversely impact on any ofthe items listed.ValuationsBell Potter may cause anasset to be valued at any time.We may determine valuationmethods and policies andchange them as required.PrivacyBell Potter will not discloseany information to any personor company unless:QQQQQQQQthe law requires that it bedisclosed;it is to your investmentadviser;it is to enable the serviceto be provided;it is to enable Bell Potter tosend you material relevantto the service.If you receive unwantedmaterial from Bell Potter,please inform us and we willmake reasonable endeavoursto prevent it from being sentagain. Please note that thereare a number of writtencommunications that we mustsend to you by law (e.g. tradeconfirmations).If you think our recordsare wrong or out of date –particularly your address,e-mail address, adviser or anydetails of your portfolio assets– it is important that youcontact us and we’ll correctthem. You can always accessthe information we hold aboutyou whenever you require.There may be information werequire before we can openan account for you – you maybe ineligible for our service ifyou refuse to provide us withcertain necessary information.Tax File NumberThe Portfolio AdministrationService requires your Tax FileNumber. Quotation of yourTax File Number(s) is optionalhowever if we are unable toprovide your TFN or Exemptionto the share registries theymay be obligated to deducttax at the highest marginalrate from any dividends,distributions, interest andpayments. Bell Potter will onlyuse your Tax File Number asthe law permits.Buying and sellingsecuritiesBell Potter buys and sellssecurities for many clients,sometimes for a number ofclients at the same time inorder to achieve economies ofscale. We can combine trades,however we will at all timesmaintain systems and recordsto distinguish your securitiesfrom others.Transferringa portfolioBell Potter PortfolioAdministration clients maytransfer their portfolio toanother person in whole orin part if Bell Potter permits.Transfers must be in a formacceptable to us and will notbe effective until registered.Bell Potter may refuse torecord any transfer and neednot act on any instructionreceived after a propertransfer is received. We mayact on all instructions prior tothis occurring.Agents andsub-custodiansBell Potter may authorise anyperson to act as our agentor delegate (in the case of ajoint appointment, jointly andseverally) to hold any asset,perform any act or exerciseany discretion within ourpower, including the power toappoint in turn its own agentor delegate. The agent ordelegate may be an associateof ours. Bell Potter mayinclude in the authorisationprovisions to protect and assistthose dealing with the agent ordelegate as we deem fit.LiabilityBell Potter are not liablefor any losses or liabilitiesincurred by you in relation tothe services or our agreementwith you except to theextent that those losses andliabilities arise from our ortheir own respective grossnegligence, fraud or willfuldefault or are imposed bylaw that cannot be excluded(otherwise it is excluded).If Bell Potter acts withoutgross negligence, fraud orwillful default we are not liablein contract, tort or otherwiseto clients for any loss sufferedin any way relating to theservices or our agreementwith you unless liability isimposed by law that can notbe excluded (otherwise itis excluded). Our liability incontract, tort or otherwise toany person other than you islimited to the extent to whichwe are actually and properlyindemnified from the relevantportfolio.Our actionsBell Potter is not restrictedfrom:QQQQQQQQQQDealing with any associate,client or any other person,and retaining benefit fromdoing so;Being interested in anycontact or transactionwith an associate or withany client or any otherperson, and retaining forits own benefit any profitsor benefits derived fromany such contract ortransaction;Acting in the same orsimilar capacity in relationto any other service andretaining benefit fromdoing so;Trading on its own accountorHaving an interest orreceiving any payment inrespect of any investmentin your portfolioBell Potter may take and mayact upon:QQQQQQQQThe opinion or adviseof counsel or solicitors,whether not instructedby us or the custodian,in relation to theinterpretation of ouragreement with you or anyother document (whetherstatutory or otherwise) orgenerally in connectionwith the services;Advice, opinions,statements or informationfrom any bankers,accountants, auditors,valuers and other personsconsulted by Bell Potterwho are in each casebelieved by us or themin good faith to be expertin relation to the mattersupon which they areconsulted;A document which webelieve in good faith to bethe original or a copy ofan appointment by you ofa person to act as theiragent for any purposeconnected with theservices; andAny other documentprovided to us not liablefor anything done, sufferedor omitted by it in goodfaith in reliance upon suchopinion, advise, statementinformation or document.Bell Potter is dischargedfrom all obligations in respectof a payment to you if wepay it in good faith or wherepermissible on behalf of aperson who we believe to beentitled to it. Bell Potter maysatisfy any payment to youby transfer of assets of therelevant portfolio in place ofrealising them. Payment ofcash or transfer of assets(such as listed securitiesor units in a managed fund)of an equivalent value toyou discharges us from theobligation to pay or transferPORTFOLIO ADMINISTRATION SERVICE.13

those particular cash orassets.We can decide which orderassets of the same typein a portfolio are sold ortransferred (for example, firstin, first out) and are not liableto you for tax or otherwise formaking any such decision.Where Bell Potter attempts tomake a payment to or for youand doubt it will be successful(for example, that a chequewill not be presented or anelectronic payment to yourfinancial institution fails or willfail), the amount may continueto be held for you in the cashaccount or reinvested in thesame assets or type of asset.Persons registered jointlyas clients are regarded asholding as joint tenants (not astenants-in-common) unlesswe agree otherwise. You areliable for all your obligationsunder our agreement withyou both separately andjointly with any one or moreother clients in relation to therelevant portfolio. A paymentto any one of joint clientsdischarges us in respect of thepayment.Goods and Services TaxIf Bell Potter becomes liableto pay Goods and ServicesTax (GST) in respect of anysupply under or in connectionwith our agreement with youor the services (including,without limitation, the supplyof any goods, services, rightsbenefits or things), then(unless we have said that itis GST inclusive), in additionto any fee or other amount orconsideration payable to us ofthem in respect of the supply,we are entitled to be paid anadditional amount on accountof GST.We are entitled to bereimbursed or indemnifiedsuch amount of GST out of therelevant portfolio.Such amount to be calculatedby multiplying the fee, amountor consideration for the part ofthe supply, which is a taxablesupply for GST purposes, bythe prevailing rate of GST. If inour agreement with you or anydocument offering the servicesa fee or charge is expressedto be GST inclusive, and GSTincreases, then the fee orcharge may be increased to thenew rate if we so determine.If Bell Potter is not entitled toany input tax credit in respectof any amount of GST chargedor recovered from us by anyperson, or payable by us by wayof any supply under or inconnection with our agreementwith you or the services, wemay recover such amount fromthe relevant portfolio.FinanciersIf you obtain any financialaccommodation from a person– in our agreement with youcalled the financier – anduse that to invest through theservices, then Bell Potter mayrecord the financier as theowner of the asset, record theportfolio in or referable to thefinancier’s name, assist thefinancier to take security, overthe relevant assets and/or dosuch other relevant things aswe determine.We may act on the financier’sinstructions even if youpurport to give conflictinginstructions (for example,to realise an asset and paythe proceeds to the financieror as it directs). We are notliable for loss to you for soacting if we act in good faith.Where there is a financier,Bell Potter may delay actingon your instructions until wereceive confirmation fromthe financier that you canso act. We are not liable forloss to you for such delay.We may continue to acton the instructions of thefinancier until we or theyreceive confirmation from thefinancier that the financier nolonger has any interest in therelevant assets. We can refuseto act on a client’s instructionuntil we receive suchnotification from the financier.Bell Potter is not liable for lossto you in this case.Commission andfee rebatesBell Potter can direct its funds(such as that we receive fromany fee) towards any purposethat we determine, forexample:QQQQTo reward an adviserTo apply to your accountor accounts of a group ofclients (often, in the caseof fees, called a rebate)Bell Potter is authorised andmay retain and accept for oursole benefit any rebate (asmay be authorised under therules of any stock exchange orother relevant regulatory body)paid to them or us by anybroker, dealer, fund manageror underwriter in connectionwith any transaction for you.AgreementsWe may exercise our rightsand remedies in any waydeem suitable (including byimposing conditions.) If a rightor remedy is not exercised infull or at a particular time, itcan be done later. Bell Potteris not liable for our exerciseof, attempted exercise of, orfailure or delay in exercisingany right or remedy.The terms of our agreementmay be waived or varied atour discretion, however, mustbe communicated with you inwriting and with reasonablenotice ahead of the intendedchange taking place.Rights, powers and remediesprovided in our agreementare cumulative with and notexclusive of those providedby law independently of thisagreement.We can assign, create aninterest or otherwise deal withour respective rights underthis agreement without yourconsent; you need our consentto do this in regulation to yourrights.If part of this agreement (orthe application of that part toany person or circumstance)is or becomes invalid orunenforceable, then theremaining provisions of thisagreement are not affectedand are valid and enforceableto the fullest extent permittedby law.Any consent under thisagreement will not beunreasonably withheld andobligations must be performedpromptly.You must do or havesomeone else carry out allreasonable tasks requestedby us to give full effect to thisagreement and the matters itcontemplates.The law in force in Victoriagoverns this agreement,therefore Bell Potter and yousubmit to the non-exclusivejurisdiction of the courts there.References to this agreementand any other instrumentsincludes variations andreplacements, and to aperson includes to theirexecutors, administrators,successors, assigns andsubstitutes (including bynovation). References to lawinclude relevant regulations,policy and instruments,and consolidations, reenactments,amendments andreplacements.A reference to a businessday means a day on whichbanks are open for normalbanking business in Sydneyand Melbourne other than aSaturday or Sunday.This agreement is our entireagreement about this subjectmatter – it supersedesprevious agreements,negotiations and discussionson that subject matter, It ishowever additional to theterms and agreements.14

Portfolio Administration ServiceAPPlication Form1. APPlicant(s) Detailsindividual 1 or ComPAny NameACNABNINDIVIDUAL 2individuAL 3Account Designation< A/C>Address TO WHicH CORRESPondence from bell potter SHould BE SENTState Postcode Country2. OWnersHIP STRUCTUREIndividual Partnership Super FundTrust Company Other (please specify)PORTFOLIO ADMINISTRATION SERVICE.15

3. CONTAct DETAILSContact Name 1 Contact Name 2Home Number( )Business Number( )Mobile NumberHome Number( )Business Number( )Mobile NumberFax( )Email AddressFax( )Email Address4. portfolio amountInitial amount to be deposited in cash $Approximate initial value of assets to be transferred $5. Client controlled assetsDo you wish the Bell Potter Portfolio Administration Service to maintain records for any client-controlled assets?YesNoIf yes, please provide complete details of these holdings, including acquisition costs and dates, and current value to your adviser.6. Are you an overseas Resident for taxation purposes?YesNoIf yes, please provide the residential address in your country of residence..7. Tax File NumberQuotation of your Tax File Number(s) is optional. If we are unable to provide your Tax File Number or Exemption to registries they may beobliged to deduct tax at the highest marginal rate from any dividends, distributions, interest and payments. If the account being opened is for aSuper Fund or Trust, please provide the TFN for that entity [the TFNs of the Trustee(s) are not required].TFN - Individual 1TFN - Individual 216

TFN - Individual 3TFN - Company, Super Fund, Trust8. fee schedule (inclusive of GST)Annual Feeexcluding brokerage0.85% on portion of the portfolio up to $1 million, then 0.55% on portion of the portfolio between $1 millionand $3 million, then 0.44% on the portion of the portfolio in excess of $3 million. Minimum $531.25 quarterly Annual Feeincluding brokerage (20free listed transactions perfinancial year)1.25% on portion of the portfolio up to $1 million, then 0.80% on portion of the portfolio between $1 millionand $3 million, then 0.55% on portion of the portfolio in excess of $3 million. Minimum $875 quarterly.Special fee instructions9. Authorised Person to instruct bell potter on this accountImportant Information – Bell Potter Third Party Authority PolicyBell Potter Securities Limited may allow for the appointment of a third party authority. This authorises a person to conduct business with BellPotter on your behalf including (but not limited to) authorisation of transactions on your account, request of information about the account (ega copy of tax report), provide instructions on your account and other duties pertaining to the management of your account. Bell Potter’s policyis that for individual or joint accounts acceptable third parties can only be an immediate family member, Power of Attorney, person licensed togive advice or an authorised representative of such person - this cannot be a Bell Potter Representative.For Company accounts acceptable third parties can only be nominated officers/employees.For nominated employees or Power of Attorney appointments we also require a minute from the company, signed by the director(s)authorising the delegation of power or a certified copy of the Power of Attorney.Authorised Persons must provide verification of identity in accordance with anti-money laundering and counter-terrorism financing (AML/CTF) regulations (Please complete an Agents of Clients form).I/We hereby authorisewhose signature appears below to:1 Conduct, on my/our behalf, all transactions between myself/ourselves and Bell Potter Securities Limited.2 Do all things incidental to operating my/our account and conducting transactions on my/our behalf. This does not include signingpower of attorney or authorising payments to third parties.This authorisation remains effective until notice of its revocation is received (in writing) by Bell Potter Securities Limited.Specimen Signature of the Third PartyRelationship to the Account HolderThird Party Contact Details (please complete if contact details are different to the account holder)Business Number( )Mobile Number( )Email AddressHome Number( )Facsimile Number( )PORTFOLIO ADMINISTRATION SERVICE.17

10. Portfolio Administration Transfer Authorisation(No change in beneficial ownership)Account NumberAccount NameHIN stock being transferred toXAccount DesignationPlease arrange for the following assets to be transferred into the above Portfolio Administration Service Account (please tick the applicable options):Issuer Sponsored Holdings to be converted to CHess Sponsored Holdings.Please provide copies of the most recent holding statements for each issuer-sponsored holdings you wish to have transferred.Stock to be transferred from external broker to the above PAS account (Hin to Hin with external broker)Name of broker relinquishing controlPID of broker relinquishing controlHIN at brokerXRegistered name and addressPlease transfer my HIN and all the attached holdings to Bell Potter Securities (PID 1543)Please transfer only the stocks detailed belowStock Code Number of Units Stock Code Number of UnitsNote: this form cannot be used if there is a change of beneficial ownership involved with the transfer of holdingsSignature of Director 1Signature of Director 2/SecretaryPrint name of Director 1Print Name of Director 2/SecretaryDate (dd/mm/yyyy)Date (dd/mm/yyyy)Signature of Director 3Print name of Director 3Date (dd/mm/yyyy)18

11. DeclarationBy signing this application form, you represent and warrant that you:QQQQQQQQQQQQQQHave read and understood Bell Potter’s Portfolio Administration Service brochure and agree to be bound by the terms and conditions containedin the brochureAre over the age of 18 years and not of any legal disabilityHave quoted your/the applicant’s tax file number (TFN), Australian Business Number (ABN) or exemption on the basis that we will:- comply with the law that authorises and governs its collection, storage, security and disposal, and;- apply it to all your/the applicant’s investments and interests within the Bell Potter Portfolio Administration ServiceUnderstand that if you do not provide your/the applicant’s TFN, ABN or exemption, then:- you will not commit any offence, however- tax at the highest marginal rate plus Medicare Levy may be deducted from your/the applicant’s incomeMust separately negotiate with Bell Potter terms and fees for the performance of work that is not included in Bell Potter’s service brochureAgree to the fees to be charged for this service as stated aboveRequest that Bell Potter change the address of your HIN and unlisted assets to Care of Bell Potter. Upon termination of this agreement, yourequest Bell Potter change the address of your assets (including your HIN) to your nominated address.individuAL 1 or directorSignatureindividuAL 2 or director/secretarySignaturePrint NamePrint NameDate (dd/mm/yyyy)/ /Date (dd/mm/yyyy)/ /individuAL 3SignaturePlease note that two Directors or a Director and a Secretarymust sign. Please indicate if the company is a sole Director/sole Secretary company).Print NameDate (dd/mm/yyyy)/ /(Tick if Sole Director)adviser to completeClient Account NumberAdviser CodeDate ReceivedBrokerage (inc GST)Other InstructionsPORTFOLIO ADMINISTRATION SERVICE.19

capital gains tax data collection formClient Account NumberHINAsset Name Or Code Date Of Transaction Number Of Units Total Cost / Proceeds Transaction TypePlease note:1. Transaction type can include any of the following: purchase, sale, corporate action such as dividend reinvestment, rights issue,bonus issue, return of capital, takeover, merger, demerger.2. Brokerage, GST or other costs associated with the purchase / sale of an asset should be included in the total cost / proceeds.3. Please provide copies of contract notes, holding statements and dividend advices wherever possible.20

limited power of attorneyAccount NumberFull Name of Account (including designation)I/WeOf AddressGrant this power of Attorney in connection with the Portfolio Administration Service offered by Bell Potter Securities Limited (“Bell Potter”)or its agents, for the purpose of authorising Bell Potter to undertake all actions and perform all functions which are necessary for it to perform andundertake on my/our behalf in connection with the Portfolio Administration Service.I/We hereby appoint Bell Potter and each officer or employee duly authorised by Bell Potter as my/our agent and attorney (“attorney”) with full powerand authority to undertake and perform on my/our behalf all actions which are necessary, usual or desirable to enable Bell Potter to perform all ofthe functions and fulfil all of the obligations which form part of the Portfolio Administration Service from time to time, including without limitation:QQSettlement of all purchases and sales;QQQQQQQQQQQQSubscriptions for, transfers of and other dealings in Securities;Making application for units in (including initial application), and requesting the redemption of units for, unlisted investments, includingmanaged funds;Making withdrawals or debits from my/our nominated Cash Account for payments associated with the operation of this Service;Making deposits or withdrawals to my/our bank account;Receiving notices from and giving instructions to third parties as necessary or incidental to the performances and fulfilment of all functions andobligations required to be performed by and fulfilled by Bell Potter on my/our behalf in connection with the Portfolio Administration Service; andExecuting and delivering all documents which are necessary or incidental to the performance and fulfilment of all functions and obligationsrequired to be performed by and fulfilled by Bell Potter on my/our behalf in connection with the Portfolio Administration Service. This includesthe execution of taxation documentation.This Power of Attorney commences on the date of execution and will continue until the Portfolio Administration Service is terminated inaccordance with the Portfolio Administration Service Terms and Conditions set out in the Bell Potter Portfolio Administration Servicebrochure, or upon notification by me/us in writing.Please note: this Limited Power of Attorney form cannot be signed under Power of Attorney.individual clients to comPleteindividuAL 1 individuAL 2SignatureSignaturePrint namePrint nameWitness signatureWitness signaturePrint name of witnessPrint name of witnessDate (dd/mm/yyyy)Date (dd/mm/yyyy)comPAnies to completePlease note that two (2) Directors or a Director and a Secretary must sign. Please indicate if the company is a sole Director/sole Secretary companyName of company(Tick if Sole Director)Signature of Director 1Signature of Director 2/SecretaryPrint name of Director 1Print Name of Director 2/SecretaryWitness signatureWitness signaturePrint name of witnessPrint name of witnessDate (dd/mm/yyyy)Date (dd/mm/yyyy)PORTFOLIO ADMINISTRATION SERVICE.21

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