FSG | investor-signals

Financial Services Guide - Download PDF
AFS Licence No. 297950

INVESTOR SIGNALS PTY LTD
(ABN 44 143 555 453)
Corporate Authorised Representative (No. 439411)
of D2MX Pty Ltd (ABN 98 113 959 596,
A Participant of ASX Group)

June 2013

Financial Services Guide
AFS Licence No. 297950

1. Glossary of terms
2. Purpose and content of this Financial Services Guide
3. Statements of Advice and Product Disclosure Statements
4. Who are Investor Signals and D2MX?
5. How we can be contacted
6. The services we offer
7. Do we provide personal financial advice?
8. How you may provide instructions to us
9. How do we charge for our services?
10. Commissions and other benefits from third parties
11. How are representatives remunerated?
12. Will anyone be paid for referring you to us?
13. Do we have any relationships or associations with financial product
providers?
14. Complaints resolution
15. External complaints resolution – FOS, ASX and ASIC
16. Compensation arrangements
17. Privacy
18. Schedule of Fees and Charges
19. Other Fees

1. Glossary of terms

AFS Licence means an Australian financial services licence issued under the
Corporations Act.

ASIC means Australian Securities and Investment Commission

.
ASX means ASX Limited.

Corporations Act means Corporations Act 2001 (Cth).

D2MX means D2MX Pty Ltd ABN 98 113 959 596, AFS Licence No. 297950.

DMA Service means Direct Market Access Service.

FSG means Financial Services Guide.

Licensee means the intermediary that holds an AFS Licence with whom we have
entered into an arrangement under which the Licensee may place orders with us on
behalf of clients in relation to ASX transactions (or allow the client to place such orders
directly with us).

Pershing means Pershing Securities Australia Pty Ltd ABN 60 136 184 962 AFS
Licence No. 338264.

We, us or our means Investor Signals Pty Ltd, ABN 44 143 555 453.

2. Purpose and content of this Financial Services Guide

This Financial Services Guide (FSG) is an important document. You should read it
carefully and make sure you understand it.

We (Investor Signals Pty Ltd) are a corporate Authorised Representative (AR No.
439411) of D2MX, an Australian Financial Services Licensee (AFSL No. 297950). As a
corporate authorised representative of D2MX, we are required to provide you with this
FSG.

As the holder of an Australian financial services licence, D2MX and its related entities
Bourse Data Pty Ltd distributing the Bourse software under licence (Bourse Data,
Corporate Authorised Representative No. 288380) and Market Data Services Pty Ltd
distributing Market Analyser software under license (Market Data Services, Corporate
Authorised Representative No. 308042) (collectively D2MX, we or us) are also required
to provide you with this FSG.

We provide this FSG together with D2MX. This FSG was prepared on 1 June 2013.

The FSG is made up of a number of equally important parts. Each of these parts is listed
on the contents page and is intended to inform you of certain basic matters before we
provide you with a financial service. This FSG was prepared to provide our clients who
are retail clients information about the financial services provided by us.

The information set out in this FSG includes information about:

(a) Who we are;

(b) What services we provide;

(d) What relationships and associations we have;

(e) How complaints against us are dealt with.

This FSG is designed to assist you in deciding whether to use the services we provide
which are described below.

3. Statements of Advice and Product Disclosure Statements

D2MX is authorised to provide personal financial product advice to clients but will only do
so in limited circumstances and will issue separate terms and FSG for personal advice.
Investor Signals is not authorised by D2MX to provide personal advice. Accordingly, we
will only provide general financial product advice to you and will not take into account
your “objectives, financial situation and needs” (Objectives) (as defined by the
Corporations Act and ASIC) and therefore this FSG been prepared without taking into
account those Objectives. Subsequently, you will not receive a Statement of Advice from
us. You should contact an independent financial adviser if you require any financial
product advice. D2MX has no responsibility for any financial product advice provided by
any other person to you.

If we provide you with services that involve issuing or arranging to issue a financial
product, such as exchange trade options (ETOs) or securities, you will be provided with
a Product Disclosure Statement (PDS). The PDS will contain information that might
reasonably be expected to have a material influence on your decision whether or not to
acquire the financial product. This will include information regarding the benefits and
risks associated with the product and other significant features of the terms and
conditions attaching to the product.

4. Who are Investor Signals and D2MX?

We (Investor Signals Pty Ltd) are a corporate Authorised Representative (AR No
439411) of D2MX, an Australian Financial Services Licensee (AFSL No. 297950).

D2MX Pty Ltd, ABN 98 113 959 596, is a Trading Participant of ASX. D2MX holds an
Australian Financial Services Licence under which it is authorised to provide financial
product advice for the following classes of financial products:

a) Basic and non-basic deposit products;

b) Derivatives;

c) Foreign exchange contracts;

d) Government debentures, stocks and bonds;

e) Interests in managed investment schemes including investor directed portfolio
services;

f) Securities; and

g) Standard margin lending;

and to deal in a financial product by:

(a) issuing, applying for, acquiring, varying or disposing of derivatives, foreign
exchange and securities financial products; and;

(b) applying for, acquiring, varying or disposing of the following classes of financial
products

a) Basic and non-basic deposit products;
b) Derivatives;
c) Foreign exchange contracts;
d) Government debentures, stocks and bonds;
e) Interests in managed investment schemes including investor directed portfolio
services;
f) Securities; and
g) Standard margin lending.

D2MX, Bourse Data and Market Data Services are wholly owned subsidiaries of MDS
Financial Group Ltd (MDS), a company listed on ASX (ASX:MWS).

We are authorised by D2MX to provide general advice and deal in respect of the
following financial products: financial product advice for the following classes of financial
products:

a) Basic and non-basic deposit products;
b) Derivatives;
c) Foreign Exchange; and
d) Securities;

and to deal in a financial product by:

(a) issuing, applying for, acquiring, varying or disposing of derivatives and securities
financial products; and;

a) Derivatives;
b) Foreign Exchange; and
c) Securities

(b) applying for, acquiring, varying or disposing of the following classes of financial
products on behalf of another person:

a) Basic and non-basic deposit products;
b) Derivatives;
c) Foreign Exchange; and
d) Securities.

5. How we can be contacted

Address

D2MX
Level 37
Rialto South Tower
525 Collins Street
MELBOURNE VIC 3000

Investor Signals
Level 29 Chifley Tower

2 Chifley Square

Sydney NSW 2000

Telephone: 1300 130 545
Email: info@d2mx.com.au

6. The services we offer

We provide to retail clients a general advice and execution-only service under which
D2MX:

(a) executes orders on ASX to buy and sell traded products (such as shares, options
and warrants quoted on ASX);and

(b) executes orders on ASX to buy, sell, close out and exercise Derivatives (such as
Exchange Traded Options and LEPOs);

Settlement and clearing of transactions executed by D2MX through ASX is undertaken
by Pershing, a leading provider of third party clearing services to the Australian market.

We do not issue margin lending facilities, but D2MX can assist you with making
arrangements with margin lending facility providers approved for settlement purposes by
D2MX.

Whilst D2MX is authorised in its own right to provide the above named services, D2MX
representatives may be authorised by D2MX to provide all, or only some of those
financial services. The products and services they are authorised to provide will depend
on their experience and qualifications with respect to each product or service, and is
outlined below for Market Data Services and Bourse Data, and in any attached Investor
Signals Representative Profile for authorised representatives.

Market Data Services is authorised to provide general financial product advice, to
arrange dealings and apply for, acquire, vary or dispose of financial products on behalf of
others in relation to the following financial products:

 securities (such as shares, company issued options and some warrants);
 derivatives (such as exchange traded options and warrants);
 government debentures, stocks and bonds;
 basic and non-basic deposit products;
 standard margin lending facility;
 foreign exchange contracts; and
 interests in managed investments schemes including investor directed portfolio services.

Bourse Data is only authorised to provide general financial product advice with respect
to:

 securities (such as shares, company issued options and some warrants);
 derivatives (such as exchange traded options and warrants);
 government debentures, stocks and bonds;
 basic and non-basic deposit products;
 standard margin lending facility;
 foreign exchange contracts; and
 interests in managed investments schemes including investor directed portfolio services.

You should also note that we are obligated by the AML/CTF Act to collect personal
information from clients in order to fully verify a client’s identity before providing any
designated services under the AML/CTF Act.

More information on the products and services offered by D2MX is available at

www.d2mx.com.au.

7. Do we provide personal financial advice?

If you use our online services for trading in listed financial products, derivates and
managed funds, we may from time to time provide general advice in relation to financial
products. We will not, however, provide you with any personal advice even though D2MX
is authorised by ASIC to do so, as we are not authorised by D2MX in this regard. This
means that, if we do give advice, we will not take into account your objectives, financial
situation and needs. Accordingly, you will not be provided with a Statement of Advice.

8. How you may provide instructions to us

You may only provide instructions to us in accordance with your client agreement with
us. That agreement permits you to provide instructions to us directly (such as through a
DMA Service) or via telephone instructions.

9. How do we charge for our services?

We charge you fees for the services that we may provide to you.
D2MX will charge you a fee for those transactions executed through the ASX by us on
your behalf (Execution Fee).

D2MX and Investor Signals are remunerated directly through the fees we charge you.
Details of our fees and charges are set out in the schedule to this FSG.

We may also earn and retain interest on monies held for clients in their trust accounts
from time to time

10. Commissions and other benefits from third parties

D2MX and Investor Signals may provide you with financial products and services from
either related or non-related product providers, and may receive a commission payment
from product providers where you invest in one of their products or services. In these
cases, the amount and / or the method by which the commission is calculated will be
supplied to you at that time that the financial product or service is provided. Information
about the commission payments we may receive is also available upon request.

D2MX and Investor Signals may receive trail commissions from third parties as a result
of your investment. In particular, trailing commissions may be received from fund
management groups for monies held in your Cash Management Account. Details of
these commissions are contained in the Product Disclosure Statement of the relevant
fund or applicable Disclosure Statement of the relevant account.

Trailing commissions may also be received from margin lending groups for funds held.
Details of these commissions are contained in the disclosure document of the relevant
margin lender.

In addition to the above mentioned remuneration, we (including our representatives) may
receive other benefits such as training assistance, marketing, entertainment and gifts
from product and service providers.

11. How are representatives remunerated?

Directors and employees of Investor Signals, MDS and D2MX and their subsidiaries and
related bodies corporate receive salaries, bonuses, a share of profits and other benefits.

At your request, we will provide particulars of our representative remuneration (including
commissions) or other benefits. However, we will only provide this information to you if
you have requested it within a reasonable time after this FSG has been given to you and
before any financial services identified in this FSG are provided to you.

12. Will anyone be paid for referring you to us?

If you were referred to Investor Signals or D2MX under a referral arrangement, the
referrer may receive a one-off fee or a proportion of your brokerage paid. The referrer

also may receive other nonmonetary or indirect benefits such as concessionary
brokerage rates.

Other Financial Services Licensees may receive commission from D2MX for promoting
D2MX products, including subscription services. Those Licensees’ remuneration is
included in the fees you pay when investing in our products.

13. Do we have any relationships or associations with financial product providers?

D2MX as entered into arrangements with one or more Licensees as described in this FSG.

As noted above, Investor Signals employees and directors, and those of D2MX and its related entities, may have an interest in financial products recommended by us. We have also entered into arrangements from time to time with various product providers under which we may receive a commission if you invest in one of their products or services. We recognise this may create a conflict of interest, and to manage this conflict, all directors and employees ae subject to controls on their trading activities.

We may provide you with financial products and services from either related or non-related product providers. D2MX or we may receive a commission payment from product or service providers where you invest in one of their products or use their services. The following are examples of such arrangements where such commissions may be payable:

Cash Management Trust/Cash Management Account: If you open a Cash Management Trust or Cash Management Account through D2MX, D2MX may receive initial and ongoing commissions based on the balance of the account. Details of any such commissions will be contained in the Product Disclosure Statement of the relevent CMT/CMA provider. Such amounts received by D2MX will not exceed 25 basis points.
Margin lending referrals: If you use a margin lending facility through D2MX, D2MX may receive ongoing commissions based on the balance of the account. Details of any such commissions will be contained in the Product Disclosure Statement of the relevant margin lender. Such amounts received by D2MX will not exceed 25 basis points.

14. Complaints resolution

14.1 Our commitment

We are committed to providing quality service and accurate information. As part of that commitment, we are focussed upon improving client satisfaction levels by providing an efficient and accessible system for resolving client complaints.

You have the right to have any complaint about the service received from us investigated and dealt with quickly and effectively in accordance with our complaints resolution procedures.

14.2 Client input

To assist us in responding appropriately to complaints, you are requested to prepare any complaint in writing, addressed to:-

Compliance Officer

D2MX

Level 37

Rialto South Tower
525 Collins Street
MELBOURNE VIC 3000

You should include as much detail about the circumstances of the complaint as possible,
including the name(s) of any of our staff involved. If available, copies of any background
documentation should be provided to us along with the complaint.

14.3 Our response

Following receipt of your complaint, the Compliance Officer will acknowledge receipt of it
in writing and provide an estimate of the time it will take to investigate the circumstances.
The Compliance Officer will fully investigate the complaint and follow up if further

information is required from you. The Compliance Officer will then prepare a detailed
written response to you after consideration of all relevant documents and following
interviews with the involved employees and their manager(s), if required. The written
response will be mailed or delivered to you.

15. External complaints resolution – FOS, ASX and ASIC

As we are a member of the Financial Ombudsman Service (FOS), we will advise you if
you continue to have a complaint with us that you have the option to pursue your
complaint with FOS. Contact details for FOS are:

Financial Ombudsman Service
GPO Box 3
Melbourne VIC 3001

Ph: 1300 780 808
Fax: (03) 9613 6399

If you remain unsatisfied with our response to a complaint, you are at all times free to
pursue the matter with ASX. ASIC also has an Infoline on 1300 300 630 which you may
use to make a complaint and obtain information about investor rights.

16. Compensation arrangements

D2MX has professional indemnity insurance which it considers is adequate having
regard to:

(a) the volume and types of business carried on by it;
(b) the number and types of its clients;
(c) the number of its representatives; and
(d) any particular or potential claims that may arise pursuant to our participation in
external dispute resolution schemes, including the FOS scheme.

D2MX considers that these compensation arrangements satisfy the requirements of s
912B of the Corporations Act and associated regulations.

17. Privacy

At D2MX the privacy of your personal information is important to us. Our privacy policy
is contained in the terms of your agreement with us.

18. Schedule of Fees and Charges

Both Investor Signals and D2MX are remunerated directly through the fees we
charge you.

Securities and Derivatives

D2MX offers the choice of one of the following rates for trading equities and warrants
online:

Securities and Derivatives

With regard to the dealing services provided to a client who operates an execution only
account for trading in securities and derivatives, the third party clearing/executing broker
holding the clients monies will charge the client a commission. With respect to equities
and derivatives transactions, the commission rate charged by D2MX is the greater of $99
or a minimum of 1% of the transaction value unless otherwise agreed in writing with us.

For example, buying a parcel of shares for a consideration of $9,000 will cost you
$99.00. Your brokerage is payable on or before the settlement date referred to in your
Confirmation. With respect to equities and derivatives transactions, the commission rate
charged by D2MX is the greater of $99 or a minimum of 1% of the transaction value
unless otherwise agreed in writing with you, inclusive of GST.

Other Option Fees

ASX Clear Pty Ltd (ASX Clear) will charge a range of fees for every option transaction
and these will be passed onto you. For example, ASX Clear charges a contract
registration fee of $0.13 (plus GST) per share option contract and exercise fees of $0.05
plus GST per contract. When providing these services and products, D2MX acts as
principal and is not a representative or contractor of another licensee. It will execute the
order but will outsource clearing of the financial products traded. D2MX does not hold
clients monies.

Brokerage and Confirmations

Confirmations are issued at the end of a trading day for any executed buy or sell in an
individual stock (even though the order may not be complete). If the balance of the order

is filled the next day, then a new confirmation would be issued and an additional
confirmation charge is applied.

Note that brokerage is payable each time we issue a confirmation up until your
order is completed.

In addition to the above, all ASX/ACH fees incurred on your behalf will be charged to
your account.

With regard to the dealing services provided to a client who operates an execution-only
account for trading in securities and derivatives, the third party clearing broker holding
the clients monies will charge the client a commission.

D2MX participates in the commission charged by the clearing broker. No other benefits,
either direct or indirect, are paid to the providing entity or a director or employee of the
providing entity or any associate above.

When providing these services and products, D2MX acts as principal and is not a
representative or contractor of another licensee. It will, however, outsource execution
and clearing of the financial products traded. D2MX does not hold clients monies.

IRESS-Based Software & Data Fees

The IRESS Software and Data fee for clients who have a trading account directly with D2MX comprises two parts:

1. Software Fee - Fixed at $66.00 incl. GST (IRESS Trader platforms) per calendar month or free for htmlIRESS.

2. Data Fee - This is a fee charged by the ASX for viewing Live Price Data. The fee is charged at

the rate of 2.53 cents incl. GST per minute (IRESS Trader platforms) during the hours of 9:30am to 5:00pm weekdays. This fee is capped at $41.25 incl. GST for Non-Professional investors and $49.50 incl. GST

for Professional Investors per calendar month to view both live ASX and options market prices.

No software or data fees are payable if a client elects not to log on to an IRESS-based trading platform during the calendar month.

To reward frequent traders (IRESS Trader Platforms users only), D2MX also provides the following fee concessions:



No software fee is charged if $99 worth of brokerage (inclusive of GST) or greater is generated for the month. 
No software or data fee is charged if $264 worth of brokerage (inclusive of GST) or greater is generated for the month.

This fee, if applicable to your account, will be debited to your Cash Management Trust account (or at our discretion, invoiced to you) in arrears during the following month.

These prices are provided for information only and are subject to change.

1. Transaction prices are on a per trade or per side (if options) basis
2. Prices and charges are negotiable in certain circumstances. Please contact Investor
Signals for further information.
3. All non-trading related charges above are GST inclusive.
4. All ASX charges incurred on your behalf will be charged to your account.

19. Other Fees

To the extent possible, D2MX will keep all fees and charges to an absolute minimum. However,
sometimes needs to cover one-off costs to make sure that everyday charges remain low. These
fees apply in addition to brokerage.

Advisor Profile

Leon Travis Hinde

Authorised Representative 331985

02 - 9238 – 8188

leon@investorsignals.com

Industry Education & Experience

Leon has been working in the financial services industry for 17 years in management and
advisory roles. Leon has extensive experience in general advice and dealings involving
securities and derivative financial products.

Leon is remunerated by way of salary and profit allocation.

Competencies

Leon is competent and is authorised to provide financial product advice and deal with
respect to the following financial products:

 Deposit Products
 Securities
 Derivatives
 Foreign Exchange