Disclosure Statement.

Who we are

Lena (Lyubov) Bykova (FSP1010055), trading as Valar Financial Advisors, is a Financial Adviser with more than 20 years of experience across finance, accounting, investment analysis and advisory. She holds the New Zealand Certificate in Financial Services (Level 5), with strands in Residential Property Lending and Investment.

Mortgage and lending advice is provided under the Financial Advice Provider (FAP) licence held by Fundsmart Limited (FSP1008314), in accordance with the Financial Markets Conduct Act 2013. Lena provides this advice as a Financial Adviser engaged by Fundsmart.

Financial Advice Provider

Fundsmart holds a Class 2 Financial Advice Provider (FAP) licence issued by the Financial Markets Authority. Fundsmart's Financial Service Provider number is FSP1008314. Details of all disclosures can be found at www.fundsmart.co.nz.

• Address: 1/14 Prospect Terrace, Milford, Auckland 0620
• Postal: PO Box 33-1263, Takapuna, Auckland 0740
• Phone: 09 222-2662
• Email: admin@fundsmart.co.nz

The advice I can provide

• Residential lending — mortgages, refinancing, debt consolidation, construction lending and lending structures.
• Property investment strategy — investment funding, portfolio planning, cashflow analysis and wealth-creation strategies.
• Commercial & business lending — commercial property lending, business lending and business finance solutions.
• Asset finance — vehicle, equipment and other asset finance.
• Specialist lending — non-bank and specialist lending for clients outside standard bank criteria.

My advice covers the financial and lending strategy only. It does not include property valuations, building reports, or real estate agency services. Any decision to acquire a property remains yours.

Services I do not provide

I do not provide: legal advice, tax advice, accounting advice, property valuations, building or engineering inspections, real estate agency services, general insurance, or personal risk insurance. If you need any of these, I may refer you to a suitably qualified professional; however, I take no responsibility for their advice, and you are under no obligation to use them.

How I am paid — commissions and referral fees

If you proceed with a lending product following my advice, we may receive commission from the lender:

• Upfront commission: 0.55%–0.90% of the initial loan amount, paid at settlement.
• Trail (ongoing) commission: 0.15%–0.20% per annum of the outstanding balance, paid monthly.

Commissions are shared between Fundsmart Limited and the adviser to cover compliance, training and back-office costs. Where a lender pays no commission, we may agree a fee with you before proceeding.

Where I refer you to a third-party property specialist, buyer's agent, developer or real estate firm, Fundsmart or I may receive a referral fee or commission from that organisation — not from you. Where this applies, I will disclose it before or at the time of the referral and confirm the basis of the fee. From time to time we may also receive minor gifts or hospitality from product providers; these are recorded in our conflicts register.

Our fees

We charge a fee for our services depending on the complexity of the service and advice offered. In some cases we also receive a commission from a provider. The actual fee depends on the nature and scope of the advice or service we provide. We will discuss and agree the actual fees with you, and explain how they are payable, before we proceed.

For consumer loans through a main bank, the bank will usually pay us for our services. Where the work is more than typical for a mortgage, involves wider advisory work, or is arranged through a non-bank lender, we reserve the right to discuss a fee with you first. We may also charge $250 per hour (plus GST, if applicable) for finance or lending consultancy work, and/or to recover or part-recover a commission clawback where a loan is repaid or refinanced early. Any fee is quoted and agreed before you accept a loan offer, and any invoice is due within 7 days.

Conflicts of interest and other incentives

Your interests are our priority, although we do have business relationships with product providers. We are paid commissions by lenders when a mortgage settles, and from time to time we may receive a small gift from a provider (such as a bottle of wine or event tickets).

To manage this, we follow an advice process that ensures our recommendations are made appropriately based on your goals and circumstances. All our advisers complete annual training on managing conflicts of interest, and we maintain registers of conflicts of interest and of the gifts and incentives we receive. These registers are monitored regularly.

No guarantee of approval

Neither Fundsmart Limited nor I can guarantee a lender will approve an application. I will use my knowledge, experience and lender relationships to identify the best available solution for your circumstances.

Reliability history

A reliability event is anything that might materially influence your decision to seek advice from us — for example, legal proceedings or bankruptcy in the last four years. Neither Fundsmart Limited nor I have been subject to a reliability event.

Our duties and obligations to you

We are bound by the duties of the Financial Markets Conduct Act 2013 (sections 431I, 431K, 431L and 431M) to:

• Meet the standards of competence, knowledge and skill set out in the Code of Professional Conduct for Financial Advice Services;
• Give priority to your interests;
• Exercise care, diligence and skill; and
• Meet the standards of ethical behaviour, conduct and client care set out in the Code.

Complaints

Internal process. If you have a problem, concern or complaint about any part of our advice or service, please tell us so we can try to fix it. Our internal Complaints Manager is Ian Bailey, who can be reached at Ian@fundsmart.co.nz or 021 664 941. You will get a reply within five business days.

External process. If we cannot agree on how to resolve the issue, or you decide not to use our internal scheme, you can contact our external dispute resolution scheme — Financial Services Complaints Limited (FSCL). This service costs you nothing and is independent.

• Address: FSCL, PO Box 5967, Wellington 6145
• Phone: 0800 347 257
• Email: complaints@fscl.org.nz
• FSCL registration number: 9294

Contact

For any questions about this disclosure, or to request a copy free of charge, contact me at lena.bykova@valar.co.nz. Fundsmart's Financial Advice Provider contact details are listed above.