MDSnews Australia – Financial Services Guide

Prepared 7 December 2007

MDS Investment Advisory

This Financial Services Guide is issued by MDSnews Australia Pty Ltd. You have the right to ask us about our charges, the type of advice we will provide you, and what you can do if you have a complaint about our services.

This Financial Services Guide ("FSG") is intended to inform you of certain basic matters relating to our relationship, prior to us providing you with a financial service. The matters covered by the FSG include, who we are, how we can be contacted, what services we are authorised to provide to you and details of our internal and external dispute resolution procedures, along with how you can access them.

It is intended that this FSG should assist you in determining whether to use any of the services described in this document.

We do not provide personal investment or personal securities advice, therefore we are not required to provide you with a Statement of Advice, which takes into account your objectives, financial situation and needs. In addition, we are not required to provide you with a Product Disclosure Statement.

1. Before you receive our advice

Who will be providing the financial service to me?

Licensee
MDSnews Australia Pty Ltd
ABN: 22 002 314 310
Australian Financial Services Licence Number: 259653

Address:
69 Nicholson Street
ST LEONARDS NSW 2065

Other contact details Phone: 02 9251 6222
Fax: 02 9251 6244
E-mail: info@mdsnews.com

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

MDSnews Australia Pty Ltd is licensed to offer you the following services:

Provide general financial product advice.

We are licensed to provide advice on the following products:

Securities;
to retail and wholesale clients.

Why was this guide provided to me?

Information which you have downloaded from the website, www.mdsnews.com, requested from MDSnews or discussed with a MDSnews employee (‘representative’), may be broadly defined as general advice

General advice in this context may differ from what you might commonly understand or expect. General advice under the new regulations includes information about the products and the markets in which they are invested and our opinions about our outlook for those products and markets. While a representative would not have given you advice about products suitable for your particular needs, objectives or financial circumstances, he or she may have commented on a view of the current or future market conditions or prospects for the products.

Additionally if you choose to subscribe to one of our products, the information you receive will be general advice in the form of general securities recommendations.

This information does not constitute personal investment advice and it has been prepared without taking into account your objectives, financial situation or needs.

You should therefore consider the appropriateness of the advice, in light of your own objectives, financial situation or needs before acting on the advice. You should consider and discuss with your Financial Adviser before making your own investment choice.

What should I know about the risks of trading or investing?

Trading or investment in any market has risks. In particular, the risk of loss in share market trading or investment can be substantial. You should therefore carefully consider whether that kind of trading or investment is appropriate for you in the light of your own specific circumstances. MDSnews Australia Pty Ltd does not offer personal securities advice, and has not considered your specific financial circumstances.

The value of a share may rise and fall considerably depending on what other people are prepared to pay you for the share when you decide to sell it. This price volatility will depend on many factors, including; the company, market sentiment, opinions about the country the share is traded in, the prospects for the industry and many other factors. Sometimes companies go bankrupt and investors may lose the entire value of their investment in a specific share. Under certain circumstances it can become impossible for you to liquidate a position (this can happen for example when there is significant change in prices in a stock over a short time. Also, the placing of contingent orders (such as a ‘stop loss’ may not always protect or limit your losses to the amounts that you want, as market conditions may make it impossible to execute such orders.

You should be aware that ‘back tested’ tested systematic approaches to trading or investing can be powerful. However, any theoretical returns that are generated across a historical period are by their nature historical and probabilistic. There is no guarantee that historical returns on any particular trading system will be repeated in the future.

Shares may also offer the potential for substantial gains, and a range of returns in between.

This brief statement does not disclose all of the risks and other significant aspects involved in trading or investing in financial markets. You should carefully study trading and investing before becoming involved in it.

How will I pay for the service?

The MDS Investment Advisory service operated by MDSnews Australia Pty Ltd which provides a number of securities recommendation newsletters.

The fees you may be required pay to MDSnews Australia Pty Ltd if you subscribe is for one or more of the securities recommendation newsletters outlined in the website.

Do you receive remuneration, commission, fees or other benefits in relation to providing the financial services to me and how is that commission calculated?

All employees of MDSnews Australia Pty Ltd receive a salary. They may also be entitled to a performance based bonus or commission payment up to 10%.

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

MDSnews Australia Pty Ltd and any related bodies do not have any relationships or association with any product issuer that could be expected to influence us in the provision of the financial services.

2. When you receive our advice

Will you provide me advice, which is suitable to my needs and financial circumstances?

No, MDSnews Australia Pty Ltd only provides general advice, and has no knowledge of your personal situation.

What should I know about the risks of the financial products or strategies you recommend to me?

We inform you that there is a risk being involved in the financial markets. However you should consult your own financial advisor if you are unsure of your either your risk profile or the suitability of a recommendation to your own situation.

What information do you maintain in my file and can I examine my file?

We keep name, address, phone and e-mail details. You can change or remove your details from our database upon request. Please refer to the Privacy Statement on the website for further information.

Can I provide you with instructions and tell you how I wish to instruct you to buy or sell my financial products?

No, MDSnews Australia Pty Ltd does not offer a broking service.

3. If you have any complaints

Who can I complain to if I have a complaint about the provision of the financial services to me?

MDSnews Australia Pty Ltd is a member of the Financial Industry Complaints Service.

If you have any complaint about any of our products and services, you should take the following steps:

  1. Tell us about your complaint, preferably in writing.

    Send it to:

    The Compliance Officer
    MDSnews Australia
    69 Nicholson Street
    ST LOENARDS NSW 2065

    OR

    Email the company’s Compliance Officer at: compliance@mdsnews.com

    OR

    Telephone the company’s Compliance Officer on 02 9251 6222.

    The Compliance Officer will try to resolve your complaint quickly and fairly.

  2. We will usually acknowledge receipt of your complaint, in writing, within 5 business days. We treat all complaints seriously, and will endeavour to resolve your complaint, in consultation with you, within a maximum period of 45 days.
  3. There may be circumstances where notification and response times may be outside of these guidelines. If this is the case we will notify you and inform you of the reason(s) why and what other options you have.
  4. Once we have had a reasonable opportunity to deal with your complaint, and if you are not satisfied with the outcome, you have the right to complain to the Financial Industry Complaints Service (FICS), PO Box 579, Collins Street West, Melbourne, Victoria 8007. Phone: 1800 335 405. MDSnews Australia Pty Ltd is a member of FICS. FICS may take further steps in order to seek to resolve your complaint.
  5. The Australian Securities and Investments Commission (ASIC) also has an Infoline on 1300 300 630 which you may use to make a complaint and obtain information about your rights.

4. Cooling off period

MDS Investment Advisory newsletter services

If you have purchased one of the newsletter services, you are entitled to a 14 day cooling off period from the date you paid for the service. At any stage during the 14 days, you may request a refund for any reason.