Operational requirements for transferring clients into Macquarie Wrap. Macquarie Adviser Services

Transcription

1 Operational requirements for transferring clients into Macquarie Wrap Macquarie Adviser Services

2 Contents 01 What are the benefits of transferring your clients accounts to Macquarie Wrap? 01 How does Wrap make it easy? 02 Glossary of terms 05 Online transfers with Investment Manager in four easy steps 06 Transferring into Investment Manager 08 Transferring into Super and Pension Manager (as a rollover) 10 Transferring into Super and Pension Manager (as a contribution) 12 Transferring from Investment Manager into Super and Pension Manager 13 Transferring from one Investment Manager account into another 14 Transferring out from an Investment Manager account This document is current as at November 2009 and is issued by Macquarie Wrap, a business of Macquarie Investment Management Limited (MIML) ABN AFSL This information is provided for the use of licensed financial advisers only. In no circumstances is it to be used by a potential client for the purposes of making a decision about a financial product or class of products. This guide is not intended as a substitute for appropriate legal and tax advice advisers should obtain appropriate expert advice in determining the legal and tax implications of transfers. It is based on information current at the time of publication. Rules relating to transfers may change and advisers should satisfy themselves to those changes. MIML is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959, and MIML s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MIML. Macquarie Investment Manager and Super and Pension Manager are offered by MIML. In deciding whether to acquire or continue to hold an investment investors should consider the relevant product guide or Product Disclosure Statement (PDS) available from us. Applications can only be made on the application form contained in the current product guide or PDS.

3 We make it easy to transfer your clients into Macquarie Wrap What are the benefits of transferring all your clients' accounts to Macquarie Wrap? Improved back office efficiencies By moving your clients onto one platform, your staff will only need to learn and work on one system, saving time that can be focused on more important things, such as spending time on client service. Strong and supportive service Wrap s experienced and dedicated Adviser Services team and your Training and Relationship Manager (TRM) are just a phone call away if you need assistance. A better custodial structure All the investments in Investment Manager and Super and Pension Manager are held in a custodial structure. This helps streamline the process of bringing existing assets into a portfolio, saving you the administration involved with executing and tracking sales and purchases. And for Investment Manager clients, capital gains tax will generally not apply. How does Wrap make it easy? 1. Dedicated Wrap Adviser Services team Wrap Adviser Services can assist with any Macquarie Wrap queries. Your TRM is also committed to ensuring you have all the training and support you need. 2. Materials to make life easy All necessary transfer paperwork is available on the Wrap website, under resources > forms > transferring assets. Fees and charges applicable Please refer to the relevant Product Disclosure Statement or IDPS guide. Stamp duty may be applicable on managed fund transfers, depending on where the fund is registered, and where the managed fund holds property. For more information please visit www. business.gov.au Purpose of this Guide This guide is intended to assist advisers in identifying the documentary and other operational requirements in the use of Macquarie Wrap. Adviser's office Training Relationship Manager Adviser Services Contact Centre For further information, please contact your Training and Relationship Manager. 1

4 Glossary of terms Australian Standard Transfer Form ATF As Trustee For Beneficial Ownership: The beneficial owner is the ultimate person, beneficiary or entity who: benefits from has the right to benefit from has an interest in, or has a right to an interest in an asset. Broker sponsored When listed equities are held with an external broker. For example: 100 WBC shares held with Commsec transferring to a Macquarie Wrap account. BSCL Bond Street Custodians Limited Change in Beneficial Ownership (CBO) When the beneficial owner of the assets changes from one individual or entity to another. Example 1: John Parker transferring to Mary Parker Example 2: John Parker transferring to John Parker and Mary Parker ATF The Parker Family Trust A transfer of assets may result in a change in beneficial or legal ownership (or both) which will generally have taxation and stamp duty implications which may affect both the current and the new owners of the assets. For more information please refer to the document Guide to Capital Gains Tax which can be found at Change in Legal Ownership When the legal ownership of an asset (or account) changes without necessarily changing the beneficial owner. Examples: 1. John Parker and Mary Parker ATF Parker Family Trust transferring to Parker Pty Ltd ATF Parker Family Trust 2. John Parker and Mary Parker ATF Parker Family Trust transferring to John Parker, Mary Parker and James Parker ATF Parker Family Trust 2

5 Consideration The consideration required on an is the total nominated value (units multiplied by the nominated market price on date of purchase) of the assets to be transferred. Contribution Limits Please refer to Part B of the Super Manager PDS for further information regarding super contribution limits. Date of Purchase The purchase date stated on the. This must fall within 60 days of the receipt of the completed paperwork. The purchase date for in-specie contributions to Super Manager is the date complete transfer forms are received by us. Direct Holdings When a client holds managed investments directly with the fund manager rather than with an External Custodian. Issuer sponsored When listed equities are held directly with the issuer. For example: 100 WBC shares held with Westpac transferring to a Macquarie Wrap account. Legal ownership The legal owner (trustee) of the asset, who has the right to possession, the privilege of use, and the power to convey those rights and privileges. NCBO No Change in Beneficial Ownership. When assets are transferred from one account to another (either internally or externally) without any change to the beneficial owner. Examples: 1. Mary Parker to Mary Brown (nee Parker) i.e. change of name upon marriage 2. Mary Parker Investment Accumulator Account to Mary Parker Investment Manager Account 3. Mary Parker external custodian account to Mary Parker Wrap Account. Open parcel history A record of each purchase transaction in a security that has been adjusted for both sales and corporate actions. It must list the original acquisition date, quantity and the adjusted tax cost (and/or reduced cost base where relevant) and be presented in a simple and straightforward format. Note: We assume that all parcel history information has been adjusted for distributions of non-assessable amounts (e.g. tax deferred, tax free and return of capital components). All cost bases should be adjusted for any corporate actions relating to the assets. We are unable to perform any reconstructions on behalf of the client. Where a reduced cost base is transferred in, we assume tax free components have been deducted from the acquisition cost. Stamp Duty (Can also be referred to as Transfer Duty or Marketable Security Duty). A State and Territory imposed tax on a range of transactions. The amount of Stamp Duty or whether it applies varies from State to State. Duty may be payable at flat nominal rates or ad valorem rates based on the value of the interest transferred. Please refer to Taxation/Taxesexplained/Pages/Stampduty.aspx or your accountant for more information and current rates. 3

6 Glossary of terms Work Test All individuals who are at least 65 years of age must meet certain employment requirements in order to make contributions. This is called the work test. Their age and ability to meet the work test will affect the amount of contribution they are allowed to make over the course of the financial year. Our work test confirmation form, Notification of Eligibility for Super Contributions, is available on the Wrap website under resources > forms > Super and Pension clients. Please refer to Part B of the Super Manager PDS for more information. 50% Change in Beneficial Ownership A 50% change in beneficial ownership occurs when the single owner of an asset transfers their interest in an asset into a joint structure where they are one of the two holders. Examples: John Parker transferring to John Parker and Mary Parker. 4

7 Online transfers with Investment Manager in four easy steps Online transfers can be performed and the status tracked for Investment Manager accounts where the account is already set up with Macquarie Wrap. The following criteria must be met: equities are currently broker or issuer sponsored and registered in the investor s name (i.e. NCBO) wholesale managed funds are registered directly in the investor s name you require transact or limited transact access to the Macquarie Wrap website Enter details of the funds or shares to 01 be transferred Generate and print 02 documentation n n n n n n Select transacting on the left hand navigation bar on the website, then enter transfer in details for a client's account Select an account followed by transfer in managed investments or broker sponsored shares or issuer sponsored shares Enter the details of the managed investments or shares and confirm the details prior to continuing to the next screen Click generate for the appropriate paperwork to appear Print the documentation For managed investment transfers, include managed investment statements to verify ownership 03 Obtain client signature n Obtain a client signature and copy the documents for your records Submit documentation 04 to initiate transfer n n Once completed and signed, send the forms and, if transferring in managed investments, the relevant fund statements, to Macquarie Wrap Submit online by clicking work in progress and selecting the reference number and clicking submit You can track the status online at anytime Please note, these holdings can be transferred into an Investment Manager account with a margin loan provided that the assets are currently registered to the investor and the assets are not acting as security for an existing margin lending facility. 5

8 Transferring into Investment Manager No change in beneficial ownership (with identical holders) e.g. from John Parker to John Parker Change in beneficial ownership e.g. from John Parker to Mary Parker Managed investments Direct holding Details of required action (Client s unit holder number with Fund Manager also required) BUYER: BSCL CONSIDERATION: NCBO STAMP DUTY: Nominal duty may apply Open Parcel History Details of required action (1) BUYER: New Owner (2) (Client s unit holder number with Fund Manager also required) BUYER: BSCL STAMP DUTY: Ad valorem duty may apply External custodian Sent to external custodian directly or through us^ Details of external custodian prepared by external custodian SELLER: External Custodian BUYER: BSCL CONSIDERATION: NCBO STAMP DUTY: Nominal duty may apply Open Parcel History Sent to external custodian directly or through us^ Details of external custodian Name of new owner (1) BUYER: New Owner (2) prepared by external custodian SELLER: External Custodian BUYER: BSCL STAMP DUTY: Ad valorem duty may apply * Forms must be signed on or after purchase date. The date of purchase must be within 60 days of our receipt of paperwork. ^ Some custodians require that their own forms be completed. Please check requirements with the external custodian. Please ensure that the APIR code and investor number is included. 6

9 No change in beneficial ownership (with identical holders) e.g. from John Parker to John Parker Change in beneficial ownership e.g. from John Parker to Mary Parker Listed equities Broker sponsored shares Broker Transfer Form Holder Identification Number (HIN) or Participant Identification (PID) if held through external custodian Broker Name Current registered account name Fax acceptable Open Parcel History Broker Transfer Form Holder Identification Number (HIN) or Participant Identification (PID) if held through external custodian Broker name Current registered account name Fax acceptable (including HIN) BUYER: New Owner Issuer sponsored shares Issuer Transfer Form Original required Registration details must match holding statement No amendments can be accepted All fields should be completed The title of each signatory is required if stock is held by a company Open Parcel History Issuer Transfer Form Original required Registration details must match holding statement No amendments can be accepted All fields should be completed The title of each signatory is required if stock is held by a company BUYER: New Owner * Forms must be signed on or after purchase date. The date of purchase must be within 60 days of our receipt of paperwork. 7

10 Transferring into Super and Pension Manager (as a rollover) Rolling over from a SMSF e.g. John Parker ATF Parker Super Fund to John Parker Managed investments Direct holdings Rollover Benefit Statement + Rollover box ticked Rollover values and date specified + (SMSF) (Client's unit holder number with Fund Manager also required) + STAMP DUTY: Nominal or ad valorem duty may apply External custodian Letter should be sent to directly to the external custodian^ Rollover Benefit Statement + Rollover box ticked Rollover values and date specified+ (1) (SMSF) + STAMP DUTY: Nominal or ad valorem duty may apply (2) prepared by custodian SELLER: Custodian BUYER: BSCL Listed equities Rolling over from a SMSF Broker sponsored shares Issuer sponsored shares Broker Transfer Form Holder Identification Number (HIN) or Participant Identification (PID) if held through external custodian Broker Name Current registered account name Fax acceptable Rollover Benefit Statement + Rollover box ticked Rollover values and date specified+ (SMSF) Including HIN + Issuer Transfer Form Original required Registration details must match holding statement No amendments can be accepted All fields must be completed Rollover Benefit Statement + Rollover box ticked Rollover values and date specified+ (SMSF) + * Forms must be signed on or after purchase date. The date of purchase must be within 60 days of our receipt of paperwork and not precede the date the portfolio was opened. ^ Some custodians require that their own forms be completed. Please check requirements with the external custodian. + Please note that any price confirmations need to come from the rollover fund. These dates and values should correspond on all forms. 8

11 Rolling over from external custodian (non SMSF) Client should direct their instructions to the external custodian^ Managed investments External custodian (prepared by custodian) SELLER: Custodian BUYER: BSCL + STAMP DUTY: Nominal or ad valorem duty may apply Rollover Benefit Statement + (prepared by custodian) Listed equities External custodian Broker Transfer Form Holder Identification Number (HIN) or Participant Identification (PID) if held through external custodian) Participant Identification (PID) Broker name Currently registered account name Fax acceptable Rollover Benefit Statement + (prepared by custodian) * Forms must be signed on or after purchase date. The date of purchase must be within 60 days of our receipt of paperwork and not precede the date the portfolio was opened. ^ Some custodians require that their own forms be completed. Please check requirements with the external custodian. + Please note that any price confirmations need to come from the rollover fund. These dates and values should correspond on all forms. 9

12 Transferring into Super and Pension Manager (as a contribution) Personal non-concessional (Holding must be in individual or joint name) Managed investments Direct Holdings Must elect personal as the contribution type (Client s unit holder number with Fund Manager also required) BUYER: BSCL STAMP DUTY: Nominal or ad valorem duty may apply External Custodian Letter should be sent to directly to the external custodian^ Must elect personal as the contribution type prepared by custodian SELLER: Custodian BUYER: BSCL STAMP DUTY: Nominal or ad valorem duty may apply Spouse non-concessional (Holding must be in the same spouse or joint names) e.g. John Parker to Mary Parker Must elect spouse as contribution type (Client s unit holder number with Fund Manager also required) BUYER: BSCL STAMP DUTY: Nominal or ad valorem duty may apply Letter should be sent to directly to the external custodian^ Must elect spouse as contribution type (prepared by the custodian) SELLER: Custodian BUYER: BSCL STAMP DUTY: Nominal or ad valorem duty may apply Personal non-concessional (Holding must be in individual or joint name) e.g. John Parker to John Parker Listed equities Broker sponsored shares Broker Transfer Form Holder Identification Number (HIN) or Participant Identification (PID) if held through external custodian Broker name Current registered account name Must elect personal as the contribution type (required if stock is coming from a joint owner) (with HIN number) Issuer sponsored shares Issuer Transfer Form Original required Registration details must match holding statement No amendments can be accepted All fields should be completed Must elect personal as the contribution type (required if stock is coming from a joint owner) ^ Some custodians require that their own forms be completed. Please check requirements with the external custodian. ** Please leave the consideration blank. For contributions, the effective date of transfer will be when the trustee has received all the completed documents, and the consideration will be the closing market price as at that date. 10

13 Spouse non-concessional (Holding must be in the same spouse or joint names) e.g. John Parker to Mary Parker Listed equities Broker sponsored shares Broker Transfer Form Holder Identification Number (HIN) or Participant Identification (PID) if held through external custodian Broker name Current registered account name Fax acceptable Must elect spouse as the contribution type (including HIN) Issuer sponsored shares Issuer Transfer Form Original required Registration details must match holding statement No amendments can be accepted All fields should be completed Must elect spouse as the contribution type Important note: You cannot transfer out of Super and Pension Manager. Holdings must be withdrawn as cash and are subject to conditions of release. This may trigger a CGT event. ** Please leave the consideration blank. For contributions, the effective date of transfer will be when the trustee has received all the completed documents, and the consideration will be the closing market price as at that date. 11

14 Transferring from Investment Manager into Super and Pension Manager^ Rollover from a SMSF e.g. John Parker ATF Parker Family Super Fund to John Parker Personal non-concessional (holding must be in individual or joint name) e.g. John Parker to John Parker Spouse Contribution non-concessional (holding must be in the same spouse or joint names) e.g. John Parker to Mary Parker Managed investments Rollover Benefit Statement+ Rollover box ticked Rollover values and date specified+ SELLER: SMSF (including account number) + STAMP DUTY: Nominal or ad valorem duty may apply Must elect personal as the contribution type (including account number) STAMP DUTY: Nominal or ad valorem duty may apply Must elect spouse as contribution type (including account number) STAMP DUTY: Nominal or ad valorem duty may apply Listed equities Rollover Benefit Statement+ Rollover box ticked Rollover values and date specified+ SELLER: SMSF (including account number) + Must elect personal as the contribution type (required if stock is coming from a joint owner Must elect spouse as contribution type + Please note that any price confirmations need to come from the rollover fund. These dates and values should correspond on all forms. * Forms must be signed on or after purchase date. The date of purchase must be within 60 days of our receipt of paperwork and not precede the date the portfolio was opened. ** Please leave the consideration blank. For contributions, the effective date of transfer will be when the trustee has received all the completed documents, and the consideration will be the closing market price as at that date. ^ This may trigger a CGT event. 12

15 Transferring from one Investment Manager account into another No change in Beneficial Ownership Change in Beneficial Ownership e.g. John Parker to Mary Parker Into an Investment Manager account Managed investments and listed equities Written Instruction (If there is a change in legal owner, e.g. Trustee, then an will be required.) Written Instruction (including Wrap account number) BUYER: New Owner STAMP DUTY: Ad valorem duty may apply * Forms must be signed on or after purchase date. The date of purchase must be within 60 days of our receipt of paperwork and not precede the date the portfolio was opened. 13

16 Transferring out from an Investment Manager account No change in beneficial ownership (with identical holders) e.g. John Parker to John Parker Change in beneficial ownership e.g. John Parker to Mary Parker Managed investments To a direct holding Confirmation that the fund manager minimum will be met Specify if the Stamp Duty is to be paid from the seller or buyer. If buyer, then the will be sent to the client to arrange this with the OSR Fund Manager s application form or existing account number with fund manager SELLER: BSCL BUYER: New Owner (must match name of account to be set up with the fund manager) STAMP DUTY: Nominal duty may apply Confirmation that the fund manager minimum will be met Specify if the Stamp Duty is to be paid from the seller or buyer. If buyer, then the will be sent to the client to arrange this with the Office of State Revenue Confirm whether cash is coming into the CMT as payment for the assets Fund Manager s application form or existing account number with fund manager (1) BUYER: New Owner (2) SELLER: BSCL BUYER: New Owner STAMP DUTY: Ad valorem duty may apply To an external custodian Details of external custodian i.e. Custodian name, registration and postal address Client's account number with the receiving custodian Specify assets and quantities or state 'All Holdings' Name of new owner (prepared by BSCL) SELLER: BSCL BUYER: New Custodian CONSIDERATION: NCBO STAMP DUTY: Nominal duty may apply Details of external custodian i.e. Custodian name, registration and postal address Client's account number with the receiving custodian Specify assets and quantities or state 'All Holdings' BUYER: New Owner (2) prepared by BSCL SELLER: BSCL BUYER: New Custodian STAMP DUTY: Ad valorem duty may apply * Forms must be signed on or after purchase date. The date of purchase must be within 60 days of our receipt of paperwork. 14

17 No change in beneficial ownership (with identical holders) e.g. John Parker to John Parker Change in beneficial ownership e.g. John Parker to Mary Parker Listed equities To broker-sponsored Include destination details (HIN, account name, broker) List of stocks to be transferred with unit quantity or state 'All Holdings' Include destination details (HIN, account name, broker name) List of stocks to be transferred with unit quantity or state 'All Holdings' Confirm whether cash is coming into the CMT as payment for the assets BUYER: New Owner To issuer-sponsored Signed by client Confirmation of the registration details (name and address required) List of stocks to be transferred with unit quantity or state 'All Holdings' State 'Transfer out to issuer' Signed by client Confirmation of the registration details (name and address required) List of stocks to be transferred with unit quantity or state 'All Holdings' State 'Transfer out to issuer' Confirm whether cash is coming into the CMT as payment for the assets. BUYER: New Owner Important note: For other transfer types not covered within this guide, please contact the Wrap Solutions Adviser Services Team. This guide is intended to assist advisers in identifying the documentary and other operational requirements in the use of Macquarie Wrap. * Forms must be signed on or after purchase date. The date of purchase must be within 60 days of our receipt of paperwork. 15

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20 How to contact Macquarie Wrap Freecall Fax Corporate Actions Fax Macquarie Wrap PO Box N498 Grosvenor Place NSW 1220 macquarie.com.au/wrapsolutions ClientView macquarie.com.au/clientview OTH7189ADV 10/09