Financial Services Guide

1 July 2008

Lincoln Indicators Pty Ltd ACN 006 715 573
Australian Financial Services Licence 237740

t] 1300 676 332
e] enquiries@lincolnindicators.com.au
m] Level 2, 379 Collins Street, Melbourne VIC 3000
w] www.lincolnindicators.com.au


Click here to download the FSG in the PDF format (240kB)


Important details

The purpose of this Financial Services Guide (‘FSG’) is to provide you with details of the financial services provided by Lincoln Indicators Pty Ltd (‘Lincoln’) and its Authorised Representatives, and to provide relevant information to help you decide whether to use financial services offered by us.

This guide provides details on remuneration of Lincoln and its Authorised Representatives. It also details how complaints against Lincoln or its Authorised Representatives can be dealt with.

Most financial products, other than listed securities, will have a Product Disclosure Statement (PDS). A PDS is a disclosure document which assists you to make an informed investment decision, including helping you to compare it with other products. It sets out significant features of a financial product, including its risks, benefits and costs. Where applicable, when we offer to arrange for the issue of a financial product to you, we will provide you with a PDS.

The distribution of this FSG has been authorised by Lincoln.

Services we provide

Lincoln may provide general financial product advice through its Stock Doctor® software and staff representatives. Lincoln also has Authorised Representatives who provide general financial product advice under its Australian Financial Services Licence.

We may also provide general financial product advice to you on securities and/or derivatives (limited to old law securities options contracts and warrants) via another financial services provider, who has a subscription arrangement with us to use our software. General advice you receive from us under this arrangement will be sourced by your other financial service provider from our software and provided to you in a written report form, which will include our details.

Where we provide general financial product advice through our software we act for clients to whom these services are provided.

Lincoln’s Stock Doctor® is Australia’s most comprehensive investment software and database service that provides access to Lincoln’s fundamental analysis of all listed companies on the ASX.

Each company is analysed twice per year as interim and annual company results are released to the ASx. The financial health of each company is assessed using the Lincoln methodology and measured against Lincoln’s “9 Golden Rules” for sharemarket investment. For further information on Lincoln’s “9 Golden Rules”, please visit our website at www.lincolnindicators.com.au. Subscribers can download updated information on a daily basis from the Stock Doctor® database.

Accounting standards set the framework for financial reporting, which we rely on for our analysis and advice. As a result, our analysis and advice is impacted by the newly adopted Australian equivalents of International Financial Reporting Standards. Please visit our website for further information: www.lincolnindicators.com.au/AIFRS. We may also provide seminars and educational training sessions regarding the use of our software. Incidentally, these sessions may include the provision of general financial product advice.

The research from our software is available to other clients who use our services, including the Lincoln Australian Share Fund. Clients, including the Lincoln Australian Share Fund, are able to act on our advice from the time of its receipt.

Lincoln is the Investment Manager of the Lincoln Australian Share Fund (the ‘Fund’) and provides general advice in respect of the Fund, which is a managed investment scheme offered by Equity Trustees Limited (the ‘Responsible Entity’ and Issuer). We do not provide any arranging services relating to participation in the Fund, but we can provide factual information about the applications process. Details of the Fund are set out in the PDS of the Fund, which is available from our website.

You should consider the PDS of the Fund when deciding whether to acquire, or continue to hold the product.

Retail investors in the Fund ($20,000 minimum initial investment) and wholesale investors in the Fund ($500,000 minimum initial investment) can invest by following the instructions set out in the Application Form of the PDS and then forwarding the completed application to Equity Trustees Limited.

Other investors can access the Fund through any master trust, wrap account or Investor Directed Portfolio Service (IDPS) operator that offers the Fund. You should consider the PDS or other disclosure document of the relevant master trust, wrap account or IDPS and assess whether the service is appropriate for you before making a decision.

Applications to invest directly in the Fund with Equity Trustees Limited or via a master trust, wrap account or IDPS should be forwarded directly to that service. Please DO NOT provide application forms and cheques or other monies to us or our Authorised Representatives, as we do not accept investment monies and this may delay your investment.

Who will be providing financial services to me?

Financial services will either be provided to you by Lincoln through its software and staff representatives and/or its Authorised Representatives.

Lincoln holds an Australian Financial Services Licence number 237740. Authorised Representatives of Lincoln are:

Simon Blair, Authorised Representative number 279581. His contact details are as follows: email: sblair@lincolnindicators.com.au; mail: Level 2, 379 Collins Street, Melbourne VIC 3000 Reply Paid 84332 Melbourne VIC 3000; ph: 0418 374 180; or via Lincoln. Visit www.lincolnindicators.com.au for other contact details.

The partnership of K. Foreman and S.J. Foreman, Authorised Representative number 292903, will provide authorised financial services via its partners Keith Foreman and Sherianne Foreman. Keith’s contact details are as follows: email: kforeman@lincolnindicators.com.au; ph: 0434 269 965. Sherianne’s contact details are as follows: email: sforeman@lincolnindicators.com.au; ph: 0404 966 364. Both Keith and Sherianne are contactable via: mail: Level 2, 379 Collins Street, Melbourne VIC 3000 Reply Paid 84332 Melbourne VIC 3000; or via Lincoln. Visit www.lincolnindicators.com.au for other contact details.

Lincoln is responsible to you for the actions of its staff representatives and Authorised Representatives.

Lincoln is not responsible to you for services provided to you by any other third party, including other financial service providers. You should refer to the FSG of your other financial services provider for further information about the services they offer.

What kinds of financial services are you authorised to provide me and what kinds of products do those services relate to?

Lincoln is authorised under its licence to provide general financial product advice in respect of the following classes of financial products:

  • Deposit products
  • Derivatives (limited to old law securities options contracts and warrants)
  • Debentures, stocks or bonds issued or proposed to be issued by a government
  • Interests in managed investment schemes (including IDPS)
  • Retirement savings accounts
  • Securities (such as shares)
  • Superannuation

Lincoln is also authorised to deal in a financial product by applying for, acquiring, varying or disposing of a financial product on behalf of another person, in respect of the following classes of financial products:

  • Derivatives
  • Interests in managed investment schemes (including IDPS)
  • Securities (such as shares)
  • Superannuation

The authorisations of our Authorised Representatives are limited as follows:

Authorised Representative Simon Blair and Authorised Representative K. Foreman and S.J. Foreman are authorised by Lincoln to provide general financial product advice on:

  • Securities; and
  • Interests in managed investment schemes (including IDPS)

Simon Blair and K. Foreman and S.J. Foreman are also authorised by Lincoln to deal in financial products, by applying for, acquiring, varying or disposing of a financial product on behalf of another person, in respect of the following class of financial products:

  • Interests in managed investment schemes (including IDPS)

Will I be provided with advice that is suitable to my investment needs and financial circumstances?

No. Where we provide you with advice, it will be general financial product advice only. Our advice will be prepared without taking into account your individual objectives, financial situation or needs; and because of this, before acting on the advice you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs; and if the advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of, and consider, the PDS before making any decision.

How will I pay for the service?

If you choose to purchase our software, you will be charged on a subscription basis. Our software is not in itself a ‘financial product’ as defined under the law. It is considered a financial service as it may provide general advice.

Subscription costs for our software will vary depending on the package you choose. We may also vary our pricing from time to time, in relation to special offers. All subscription offers are subject to acceptance of the licence, contained in the software.

All prices are in Australian dollars. Prices and details of packages and offers are as follows:

Stock Doctor® Evaluation Pack (Private Investor Licence): Includes a 30-day trial subscription to Stock Doctor® plus complimentary copy of multimedia guide “Stock Doctor® – The Fundamentals”. Package priced at $49.95.

Stock Doctor® (Private Investor Licence): This is an annual subscription or longer term if agreed. The licence allows you to install Stock Doctor® on one computer. You cannot provide reports or information to third parties. Priced up to: $1,795 pa, payable in a single payment; or via an upfront payment of $585, plus 11 monthly instalments of $110.

Your subscription will be due for renewal after 12 months or such longer time as agreed. Subscription renewals are priced at $1,260 pa or $114.00 per twelve monthly direct debit payments (totaling $1,368 pa). There is a “30-day money-back guarantee” on your purchase within the first 30 days after your purchase. Pricing may be adjusted annually in line with the Consumer Price Index (CPI); or in the case of enhancements to the software, by an amount considered by us to be reasonable.

Stock Doctor® (Corporate licence) and Lincoln Australian Equity Research Software: If you are an Australian Financial Services Licensee (licensee) or Authorised Representative; an accountant providing exempt services (within the meaning of the Corporations Act 2001); or are otherwise exempted under the law from holding an Australian Financial Services Licence and wish to use the software to provide a service to third parties; you will need to subscribe to either a Stock Doctor® (Corporate licence) or the Lincoln Australian Equity Research Software, and are not entitled to a private investor licence.

Each of these licences entitles one person to use the software on a single computer (or on a replacement) at the registered site including for the purpose of providing a service to third parties. If you wish to use the software on additional computers or for other people to use the software, you must purchase additional licences. For a licensee, our annual subscription licence fee for a single licence, is priced at up to $6,050 pa.

Additionally, where a licensee requires additional licences; or non-licensees subscribe to use our services, we will charge an annual subscription licence fee of $2,420 per licence.

We may vary our pricing in relation to special offers.

Our advice via another financial service provider: Where you receive our advice via another financial service provider, they will have a subscription arrangement with us to use our Lincoln Australian Equity Research Software or Stock Doctor® (corporate) licence software. We will not charge you.

Educational training: If you undertake educational training provided by us, we may charge a fee for that training. Fees will depend on the specific training undertaken and will be advertised at the time the training is offered.

Lincoln Australian Share Fund (wholesale or retail): We do not charge you and do not receive any remuneration or other benefits for providing general advice or factual information about the Fund. If you choose to invest directly in the Fund you will pay various fees and charges as set out in the PDS. We will benefit from some of those fees and charges – see page 4.

Master trusts, wrap accounts, IDPS: If you choose to invest through any of these services you will pay various fees and charges as set out in the relevant PDS or other disclosure document. We will benefit from some of those fees and charges – see page 4.

Stock Doctor® Referral Rewards Program: From 1 July 2008, the following Stock Doctor® Referral Rewards Program replaced all previous referral programs. There are two elements to the program.

1. Client Referral Reward Program: Current Stock Doctor® clients who refer people who subsequently purchase an annual Stock Doctor® subscription may receive the following benefits, subject to meeting the qualification criteria* as set out below.

For every person referred that purchases an annual Stock Doctor® subscription the referrer will receive one additional month to their Stock Doctor® subscription.

2. Commercial Introducer Rewards Program: Lincoln may have arrangements with third party commercial introducers. For every person referred that purchases an initial annual Stock Doctor® subscription, Lincoln may pay a finder’s fee from nil up to 30%* of the purchase price to the commercial introducer.

A person or organisation cannot obtain a benefit under both the Client Referral Reward Program and the Commercial Introducer Rewards Program.

*For example: If you were referred to us by a commercial introducer and you purchased a 12-month subscription to Stock Doctor® (Private Investor Licence) priced at $1,795, the commercial introducer may be entitled to a finder’s fee from nil up to $538.50.

Qualification criteria for referrers in the Stock Doctor® Referral Rewards Program

If: a) you are a client and refer one or more person to us in any subscription year;

or b) you are a third party commercial introducer who refers one or more person to us in any financial year;

you must adhere to the following qualification criteria for each referral, in order to receive a benefit from us. The qualification criteria are as follows:

1) When you refer a person, you may do no more than:

a) inform the person you are referring that Lincoln, or its Authorised Representative(s), is able to provide general financial product advice in relation to securities and other specified financial products; and

b) provide that person with our contact details;

AND

2) You must inform the person you are referring, at the same time you refer them and by the same means that you refer them:

a) of the benefits you (or an associate of yours) may receive as a result of referring them to us;

b) the value (if known) of the monetary benefits you may receive;

c) that Lincoln will be collecting their personal information;

d) that the person can get access to the personal information;

e) the purpose for which Lincoln collects the information; and

f) who else Lincoln may disclose the personal information to.

We have introduced this qualification criteria because we are concerned that referrers should not be caught by licensing requirements under the law and so that privacy principles are adhered to.

Lincoln reserves the right to alter, amend, suspend or withdraw any of the terms and conditions of the Stock Doctor® Referral Rewards offer at any time, at its absolute discretion.

What other remuneration, commission, fees or other benefits will you receive in relation to providing the financial services to me?

Subscription Commission

Authorised Representatives of Lincoln are paid a commission from $300 up to $363 for each initial annual subscription to Stock Doctor®, dependent on the extent of their involvement in the sale of the subscription and purchase incentives which may have been offered. An Authorised Representative may be eligible for a monthly bonus of $1000 if they meet internal performance targets for Stock Doctor® Sales. Authorised Representatives may also be entitled to a volume bonus, based on the number of Stock Doctor® sales per annum, as follows:

Number of Stock Doctor® salesVolume bonus
500 – 599$12,000
600 – 699$18,000
700 +$38,000

Lincoln Australian Share Fund

Authorised Representatives may be entitled to a referral fee of $300.00 per month. This referral fee is paid by Lincoln and is not an additional cost to you.

Non-sales staff representatives of Lincoln are remunerated on a fixed salary basis. Tim Lincoln, Managing Director, and staff representatives may benefit from a share in any profits of Lincoln.

Do any relationships or associations exist that might influence you in providing me with the financial services?

Where Lincoln, its director, employee or associate holds an interest in a particular company which is the subject of our general advice, this will be noted in the software’s Memo Notes and written reports, as appropriate.

The Responsible Entity of the Fund has appointed Lincoln as Investment Manager, their agent, to invest and manage the portfolio of the Fund. Lincoln will be remunerated for these investment management services as a percentage of the monies invested.

We also have an arrangement with the Wealthtrac Portfolio Service and the operators of any master trust, wrap account or IDPS that makes the Fund available to investors, and will receive remuneration for our investment management and associated administration services. This remuneration will usually be a percentage of the monies invested.

Who can I complain to if I have a complaint about the services that you provide?

If you have any complaints about the service that we provide, please take the following steps:

1. Contact a Client Service Representative either by email enquiries@lincolnindicators.com. au or by phone on 1300 676 332. Our staff will endeavour to resolve any client complaint or query as soon as possible.

2. If you prefer, you can lodge your complaint in writing to: Mr Tim Lincoln, Managing Director, Lincoln, Level 2, 379 Collins Street, Melbourne VIC 3000 Reply Paid 84332 Melbourne VIC 3000.

3. If you do not receive a satisfactory outcome, you have the right to complain to the Financial Ombudsman Service.

The contact details for the Financial Ombudsman Service are GPO Box 3, Melbourne, Victoria, 3001 or phone 1300 780 808.

Alternatively email the Financial Ombudsman Service at info@fos. org.au or fax (03) 9613 6399.

The Australian Securities & Investments Commission (ASIC) also has an Infoline number 1300 300 630 which you may use to make a complaint and obtain information about your rights.

Professional Indemnity insurance.

Lincoln has Professional Indemnity insurance in place that covers claims in respect of current and former representatives and employees for services provided on behalf of Lincoln.

General investment warnings.

The value of an investment may go down as well as up. Past performance of an investment is not a reliable indicator of future performance.

Lincoln does not guarantee the return of capital.

The information in this financial services guide (FSG) is of a general nature only and does not take into account any individual’s objectives, financial situation or needs. Therefore, before acting on any advice contained in this FSG, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

All figures quoted as at 1 July 2008 (GST inclusive).

Privacy policy

We are committed to preserving and respecting your privacy and complying with the Australian Privacy Act 1988.

Lincoln collects information from you that is necessary to provide the financial services and products you have requested as well as information about other products and services which may be of interest to you. To provide these products and services we may need to disclose your information to external parties. If you do not want us to provide you with information about other products and services, please let us know. Your personal information will not be used or disclosed for any other purposes without your consent, except as permitted or required by law.

Your personal information as well as a record of all dealings you have with us is kept on record. These records are available to you should you wish to examine them. A separate privacy policy statement is available from our website or upon request.

About us

Lincoln is Australia’s premier fundamental analysis research house and fund manager offering intelligent sharemarket solutions for the conscientious investor. Founded in 1984 by Melbourne University academic and Australian sports identity Dr Merv Lincoln, the company’s specialist knowledge is based on Dr Lincoln’s PhD thesis “The Usefulness of Accounting Ratios to Describe Levels of Insolvency Risk”. His thesis analysed and derived models to assess the financial health of businesses.

The resulting Lincoln methodology combines company health assessment, key accounting ratios and other quantitative and qualitative measures to identify well-managed companies with strong growth prospects. The ability to analyse the financial statements and ratios applied to all listed companies on the Australian Stock Exchange (ASx) and the processes and technology in place to deliver this information to investors within 24 hours of companies releasing their results, is unparalleled in Australia.

The Lincoln methodology is applied to Lincoln’s Stock Doctor® investment software product and to the management of the Fund.

Lincoln’s academically proven methodology developed over more than 20 years has empowered clients to make intelligent and informed sharemarket investment decisions. Lincoln’s Stock Doctor® makes the fundamental analysis of ASx listed companies a practical and efficient investment technique for investors.