Take advantage of the Significant Investor Visa through BT Wrap

Transcription

1 Take advantage of the Significant Investor Visa through BT Wrap

2 Take advantage of the Significant Investor Visa through BT Wrap The Significant Investor Visa (SIV), introduced by the Australian Government in 2012, provides a great opportunity for migrants to apply for a permanent visa in Australia by investing AUD$5million or more into specific complying investments for a minimum of four years (subject to other application and investment criteria). 1 While each state and territory has its own SIV requirements, BT can provide an investment solution by giving you access to ASIC regulated managed funds with a mandate for investing in Australia through our Investor Directed Portfolio Service (IDPS) wrap product, BT Wrap. Investments in SIV compliant managed funds can include those made through an IDPS, which means that BT Wrap can help migrants, along with their financial advisers, to manage and streamline their investments in Australia. Find out more about how you could use BT Wrap to manage your SIV investment strategy with less paperwork and a simple, one-stop-shop that will help your adviser with administration. 1 Information in this document regarding the SIV has been obtained from the Department of Immigration and Border Protection website ( Although we believe the information to be accurate, it has not been independently verified by us, and the Westpac Group does not accept responsibility for the accuracy or completeness of, and does not endorse, any such material. 2

3

4 Who is BT Financial Group? BT Financial Group Pty Limited (BTFG) has been helping Australians manage and grow their wealth since BTFG is a subsidiary of the Westpac Group, which is Australia s first bank and manages over 6.5 million customers banking requirements nationally. BT Portfolio Services Ltd, a subsidiary of BTFG, operates BT Wrap. What is BT Wrap? BT Wrap is a way of managing a diverse range of investments through a single point of access. Instead of having to keep track of all your investments separately, you can have them all located in one place which can save you time, money and lots of extra paperwork. BT Wrap offers access to a wide selection of investments including a large menu of ASIC regulated managed funds. Having your entire diversified investment portfolio in one place can be particularly beneficial at tax time with all your capital gains tax liabilities and franking credits consolidated and calculated for you in one report that you can give to your accountant. Better yet, because BT Wrap manages all your investments in one place, your adviser can transition between different investments for you as your needs change and if your portfolio grows 2. Almost a quarter of a million Australians now invest using BT Wrap because BT Wrap offers a simple and effective way to manage an investment portfolio. BT is one of Australia s leading wrap providers managing over $55 billion dollars on behalf of investors via BT Wrap accounts 3. 2 It is important to read the relevant disclosure documents for each investment option to understand the pricing conditions and timeframes applicable. Your adviser can provide you with a product disclosure statement or other disclosure document for each of the relevant managed funds, which will disclose what specific fees and timeframes will apply. 3 Figures as at 31 March

5 YOU An ADVISER transacts on your behalf Wholesale managed funds Capital Protected Managed funds Listed Securities (eg shares, exchange traded funds, warrants) Term Deposits Margin Lending Insurance YOUR INVESTMENTS YOUR INVESTMENTS W R A P T A C C O U N A WRAP ACCOUNT wraps around your various investments CONSOLIDATED REPORTING ONLINE ACCESS to portfolio information TIME SAVED with a single login and view of all investments + REDUCED EFFORT AT TAX TIME with one onsolidated report on your investments

6 AWARD WINNING PLATFORM The Smart Investor awards have recognised BT Wrap s flexibility and choice awarding the platform Investment Platform of the year in 2011, 2012 and INVESTMENT PLATFORM OF THE YEAR 6

7 Reasons why investors use BT Wrap Founded 1969 No. of BT Wrap Investors 235,ooo Funds Under Administration $56.3b BT Wrap is backed by BT the wealth management arm of the Westpac Group. BTFG has been helping Australians manage their wealth since BT were the first Wrap provider in Australia back in 1997 and now over half a million Australians invest using a Wrap type service because they offer a simpler, more effective way to manage an investment portfolio. BT Wrap currently manages over 235,000 client accounts and $56.3 billion of investments^. ^ Information current as at April 2014.

8 Reasons why sophisticated investors use BT Wrap Visibility & Control View your investment portfolio online in one secure place at any time using our online facility. This will help you and your adviser keep track of your goals, which could help you reach financial independence faster. Transparency It s important to understand what fees you re paying. BT Wrap clearly sets out all fees paid by you in relation to your BT Wrap account so you know exactly where your money is going. Some of these fees may be tax deductible, so ask your adviser for more details. Cost savings Our online platform may mean that you spend less time on administration, which could result in time and cost savings for you. You may also save on fees and administration costs by having your investments in the one place, rather than paying multiple fees for many providers. Access In addition to SIV complying managed funds, you will also have access to a wide and innovative range of wholesale investments at wholesale pricing (generally meaning lower investment costs when compared to investing directly in retail funds) you can choose alternate managed funds, term deposits, insurance, as well as shares. Flexibility You can tailor your BT Wrap platform to your needs as they change now and in the future. 8

9 Simplicity You will receive detailed reporting and one consolidated tax statement potentially making it easier and cheaper for you and your accountant at tax time. Meeting your Tax Needs BT Wrap gives you the option to change the sale tax allocation at any time to meet your specific tax needs. Offered through your financial adviser Your adviser s role is to help you develop a personalised investment strategy and choose investments that are appropriate for you. Your adviser can also manage your investments for you and provide you with regular status reports. Risks BT Wrap offers a wide range of investment options to meet different risk and return expectations. You must first take into account the risks associated with BT Wrap to assess whether the potential returns justify those risks. Some of the risks associated with BT Wrap include market risk, operational risk, security specific risk, currency risk and interest rate risk. This is not a complete list of the risks you should read the BT Wrap IDPS Guide for more information. Your adviser will also be able to help you assess your risk tolerance and ensure your investment objectives and goals are considered

10 Important information about the SIV The visa requires migrant investors to invest AUD$5million into complying investments for a minimum of four years before being eligible to apply for a permanent visa (amongst other requirements). The purpose of the SIV is to provide a boost to the economy and assist Australia to compete for high net worth individuals globally. Each state and territory has its own criteria for deciding which applicants they will nominate for the SIV. It is important to clarify which state or territory you will submit your expression of interest to for the visa, and refer to their website to find out what the specific requirements are. State or Territory Australian Capital Territory New South Wales Northern Territory Queensland South Australia Tasmania Victoria Western Australia Links for Significant Investor Visa requirements business-migration significant-investor.aspx migration.qld.gov.au/business-investor-visas/business-innovation-investorpermanent-subclass-888/ Significant_Investor_stream guidelines-for-the-business-innovation-and-investment-188c-significantinvestor-stream 10

11 Complying with SIV through BT Wrap Please note that only ASIC regulated managed funds are available for investment through an IDPS for the purposes of the SIV. Any other complying investments must be accessed outside an IDPS in order to meet the SIV requirements 5. BT Wrap currently has over 580 managed funds in the BT Wrap investments menu. Around 85 of these ASIC regulated managed funds have been declared as complying for the purposes of the SIV by the respective fund manager. To keep track of the latest list of funds that have been nominated as complying by their relevant fund manager you can contact your adviser. It is important to note that BT Wrap has compiled this list based on confirmation from each respective fund manager. It is the sole responsibility of these fund managers to ensure they have accurately declared their funds status for the purposes of the SIV and are able to supply the relevant Form 1413 on demand. We take no responsibility for any declarations or confirmations provided by these fund managers and whether or not any fund available through BT Wrap is a complying investment for the purposes of the SIV. The regulations provide that the entire $5 million must be invested in complying investments at all times (with a 30-day window to withdraw and re-invest in other complying investments if necessary). This means that any fees and charges associated with the BT Wrap account must be paid for with monies separate and in addition to the $5million minimum investment amount. For example, you may wish to consider maintaining more than the minimum cash account balance of $2,500 to cover (among other things) account keeping fees, adviser fees, transaction fees and any other fees and costs that may be applicable to your client s account, and ensure there is enough of a cash buffer to cover these fees and costs on an ongoing basis. It is imperative that you are fully aware of all the obligations, responsibilities, terms and conditions of the SIV. BT Wrap will not be responsible for: (i) monitoring cash balances, investment choices, transaction history or withdrawals in relation to the SIV requirements and conditions; or (ii) ensuring additional obligations, requirements and conditions of the SIV are satisfied. All general processes, e.g. deduction of fees and costs and automatic drawdowns, will be executed as per the BT Wrap disclosure documents. How to apply for a BT Wrap account for a SIV client Applicants will be required to follow BT Wrap s standard application process. BT Wrap is only available to investors who receive the Investor Guide in Australia and either (i) are Australian residents or (ii) appoint an Australian resident attorney to act on their behalf in relation to their BT Wrap account. The relevant disclosure documents and application forms are available from your adviser. 5 Based on current SIV conditions. Further complying investments may be accessible through IDPS in future, so keep updated by visiting

12 Frequently asked questions Can a visa applicant invest in complying investments through BT Wrap? ASIC regulated managed funds that are complying investments for the purposes of the SIV can be held through BT Wrap as it is an IDPS. There are around 85 complying managed funds for the SIV that can be currently accessed through BT Wrap. What is the process for opening a BT Wrap account for the specific purpose of this visa? Applicants will be required to follow BT Wrap s standard application process. BT Wrap is only available to investors who receive the Investor Guide in Australia and either (i) are Australian residents or (ii) appoint an Australian resident attorney to act on their behalf in relation to their BT Wrap account. The relevant disclosure documents and application forms are available from your adviser. Read and understand the relevant disclosure documents Complete and sign BT Wrap application form Send your application form to us Mail completed forms to BT Wrap to process account opening Transfer funds to invest Deposit the funds you are wanting to invest into BT Wrap (ensuring that minimum cash and ongoing fees are included in the amount deposited in excess of the SIV minimum requirements to remain eligible) Invest into SIV complying funds Once funds have cleared, apply specified amounts into funds identified as complying for the SIV. (Ensure that copies of form 1413 for relevant funds are obtained from fund managers). 12

13 How do I know if a managed investment on the BT Wrap Investment Menu is a complying investment? BT Wrap regularly updates your adviser s online desktop with the latest list of complying funds. However, as previously mentioned it is important to note that we are simply reporting what fund managers have informed us of, and we may not always have access to the most up-to-date information. Any changes to the compliance status of a managed fund must sit with the fund manager. Where can I obtain a copy of Form Declaration in relation to managed funds? All Form 1413s that have been provided to us by relevant fund managers are available on request. Alternatively, you can obtain them directly from the relevant fund manager. What if the Form 1413 for the managed investment I am looking to invest in is listed as not received by BT Wrap? If the form has not been made available to us and the fund manager has advised us that they are complying for the purposes of the significant investor visa, please contact the relevant fund manager and request a copy of the declaration directly. Will BT Wrap report to the department of immigration on the investor s behalf? No, all responsibilities in complying with the SIV conditions remain with you and your adviser as well as any appointed agents. BT Wrap will not be providing any reporting directly to the Government. Where can I find out more about the SIV? Further detailed information about what is required for applying into SIV can be found on the Department of Immigration website: FAQ:

14 13 How a Wrap Account could work for you?

15 Important Information BT Portfolio Services Ltd ABN AFSL (BTPS) operates and administers BT Wrap. An IDPS Guide is available for BT Wrap and can be obtained from your financial adviser. You should obtain and consider the IDPS Guide before deciding whether to acquire, continue to hold or dispose of interests in BT Wrap. This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. Nothing in this document constitutes tax advice. BTPS s Financial Services Guide can be obtained by contacting your adviser, calling BTPS on or visiting BTPS is a subsidiary of Westpac Banking Corporation ABN AFSL (Westpac). Apart from any interest investors may have in underlying bank accounts held at Westpac through a BT Wrap Cash Account or Westpac securities acquired through BT Wrap, an investment in, or acquired using, BT Wrap is not an investment in, deposit with or any other liability of Westpac or any other company in the Westpac Group. These investments are subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of any investments in, or acquired through, BT Wrap. This document may contain material obtained from third parties and is given in good faith and has been derived from sources believed to be accurate. This should not be considered a comprehensive statement on any matter nor relied upon as such. While such material is published with necessary permission, no company in the Westpac Group accepts responsibility for the accuracy or completeness of, or endorses any such material. Except where contrary to law, we intend by this notice to exclude liability for this material. This information is current as at 31 May BT Portfolio Services Ltd 2014.

16 Take advantage of the Significant Investor Visa through BT Wrap Find out more about how you could use BT Wrap to manage your SIV investment strategy with less paperwork and a simple, one-stop-shop that will help your adviser with administration. For more information to your Business Development Manager Wrap Adviser Relations jw