Trading Terms and Conditions

Transcription

1 Trading Terms and Conditions This section sets out the terms and conditions which apply to trading on a Relevant Exchange through the Online Service. This information has been prepared by Macquarie and should be read in conjunction with your Fund s Offer Documents. Capitalised terms are defined in the Definitions section below. General conditions 1. Trading in listed securities through the Online Service is subject to the Rules. You must comply with the Rules, investment limits, corporate action requirements and the terms set out in your Fund s Offer Documents and any other associated terms and conditions. 2. You authorise us so that: (a) all trades will be settled to or from your Cash Account (b) dividends will be paid into your Cash Account (c) any associated taxes and failed trade fees are also debited from your Cash Account. 3. You acknowledge that you will not be extended credit for any reason whatsoever. Brokerage and other fees and charges relating to trading 4. Trading services in relation to onmarket transactions are provided by the Authorised Broker and are separate services to the custodial and reporting services provided by Macquarie. 5. The Authorised Broker charges a brokerage fee for purchases and sales of listed securities. These brokerage fees vary depending on the value of each trade and are outlined in your Fund s Offer Documents. 6. Brokerage will either be added to the cost or deducted from the proceeds of each transaction. 7. Other fees and costs also apply. For full details refer to your Fund s Offer Document. Processing your instructions Best execution obligations 8. Execution of orders through the Authorised Broker, in its capacity as Market Participant, is subject to Best Execution Policy obligations in line with ASIC s Market Integrity Rules. These requirements are in place to ensure the Authorised Broker takes all reasonable steps to deliver the best outcome for you in relation to the execution and allocation of your orders. 9. For more information on the Authorised Broker s Best Execution Policy, visit cution.

2 Types of orders 10. The following types of orders are available through the Online Service, subject to orderly market considerations: (a) Limit order, or (b) Market-to-Limit order. 11.Limit orders may be filled at the prevailing bid price (for sales) when that price is equal to, or greater than the limit price, or the order may be filled at the prevailing offer price (for purchases) when that price is equal to, or less than the limit price. 12.Market-to-Limit orders are placed at the prevailing best bid (for sales) or best offer (for purchases) price and may only be partially filled at the prevailing market price at the time the order is entered, depending on the volume of securities available or buyer demand in the market at that time. 13. You acknowledge that all orders placed outside ASX market operating hours will not be executed by us until commencement of the next Business Day. Partial fulfilment of orders 14. Where Market-to-Limit orders can only be partially filled, the unfilled portion of the order will remain on the market but at the limit price of the prevailing best bid (for sales) or best offer (for purchases) price. 15. The Authorised Broker will use its best endeavours to complete partially filled orders, subject to orderly market considerations. 16. You acknowledge that where a Market-to-Limit order cannot be fulfilled at the best prevailing price due to lack of volume in the market, you are seeking to execute the remaining volume of the order with volume taking priority over price. 17. In the event that the whole, or part, of the order is filled prior to its amendment or cancellation, you will be liable to settle the whole or partially filled order. Settlement and recording of onmarket transactions 18. You agree to pay for purchases and make good delivery in respect of sales to enable the Authorised Broker to settle by the due settlement date. Settlement will occur on a trade date plus two days (T+2) basis. Intraday trading is not permitted on cash or securities that have not yet settled. You must wait for the securities or cash to settle before you can trade them again. 19. Your transaction history which is available through the Online Service is your record of your completed trades. You will not be provided with a separate trade confirmation. Expiration of orders 20. Orders can remain on market: (a) for today only, or (b) until cancelled. 21.Today only orders are valid for the Business Day on which they are placed with the Authorised Broker and will expire before the market opens on the next Business Day. If your order is placed with the Authorised Broker after market operating hours, it will go on market the next Business Day and will expire before the market opens again on the Business Day after the order went on market. 22.Until cancelled orders will expire after 22 Business Days of the order being placed with the Authorised Broker if it has not been executed on market or cancelled by you.

3 23. If the security is suspended from trading, orders will not be placed on market until the suspension is lifted. However the above expiry timeframes will still apply regardless of whether or not the security is suspended. Cancellation, failure or delay of certain transactions 24. In certain circumstances, a trade that you have requested may be delayed or unable to be placed at all. In this event, the Authorised Broker must act in accordance with specific Rules that may not allow the trade to be placed either in part or in full. 25. Orders may not be accepted, complete, or may be purged from the market by the Relevant Exchange or by the Authorised Broker, subject to the Rules including, without limitation, where: a) the Rules prevent its completion b) there is no market for that security c) there has been a suspension or other trading halt on that security d) a Market-to-Limit order is going to cause a significant change to the market price or trade volumes e) the price at which an order is placed is deemed to be too far from the prevailing market price by the Relevant Exchange or the Authorised Broker f) a security is quoted Ex (as defined by the Relevant Exchange) for the purpose of determining an entitlement to shares, an offer to shareholders, a distribution payment or for any other reason g) the trade has been executed in error h) the trade will or is likely to interfere with the integrity or orderly nature of the market in any way i) if the basis upon which quotation on the Relevant Exchange is based has changed j) the security has been removed from official quotation on the Relevant Exchange k) the trade is likely to result in a breach of the law or the Rules l) the order expires (if it has not been executed or cancelled within 22 Business Days of your request being processed) m) the order has been purged in accordance with the Rules n) a trading restriction is imposed on us or the Authorised Broker o) there has been a disruption in the operation of the Relevant Exchange, or p) the Relevant Exchange determines the order should be purged for any reason whatsoever. 26. We are not liable for any financial consequence or inconvenience arising from circumstances where: (a) We cancel a transaction or refuse to accept an instruction from you in accordance with these terms and conditions; or (b) Where ASX, ASIC or any other regulator uses its power to amend or cancel a transaction Disputes 27. In the event of any dispute relating to your use of the Online Service you should contact your Fund in the first instance. Corporate Actions 28. Where you elect to participate in a corporate action you agree that you have read the relevant offer document relating to the corporate action.

4 29. Where the corporate action requires cash funding, you must have sufficient available cash in your Cash Account at the time of making your election. 30. Where we provide information in relation to a corporate action you acknowledge that the information is provided by the issuer and made available through ASX, it may be subject to change and that not all information available on ASX will be included. You also acknowledge that the information provided in relation to the corporate action does not constitute financial, investment, tax or legal advice, and should not be construed as a recommendation to invest. Privacy Policy 31. Macquarie honours without reservation its obligation to respect and protect the privacy of the personal information of individuals with whom it deals. The third parties with whom we exchange personal information may operate outside of Australia (this includes locations in the Philippines). Please refer to the Privacy Policy for further details (available from the Privacy Policy link at the bottom of each web page). CHESS Explanatory Note What is CHESS and what does a CHESS Sponsor do? CHESS is a computer system which electronically transfers title between buyers and sellers of securities. It is a paperless system where security ownership is recorded on an account in CHESS, rather than through the use of physical share certificates. CHESS also enables the electronic settlement of transactions between CHESS participants (i.e. stockbrokers and institutional investors). CHESS is operated by ASX Settlement Pty Limited ( ASX Settlement ), a wholly owned subsidiary of the ASX. All CHESS participants must abide by the ASX Settlement Operating Rules ( ASX Settlement Rules ). Under these rules, you are entitled to an explanation of the effect of the sponsorship arrangements as applicable to the Online Service. This explanation appears below. Sponsorship in CHESS As it is impractical for individual investors to have direct electronic access to CHESS, shares are generally held within CHESS by an organisation ( Sponsor ) which is a participant in the Relevant Exchange, and which provides transfer and settlement services in relation to securities traded on that exchange. These securities are allocated a HIN within CHESS. The HIN identifies the owner of the shares. If you use the Online Service the Sponsor will be Macquarie. If your Sponsor is suspended from participating in CHESS under the Rules, you have a right to request removal of the holding from CHESS or from the control of the Sponsor. If you have not paid the Sponsor an amount lawfully owed by you, the Sponsor can refuse to comply with your withdrawal instructions.

5 Definitions ASIC means the Australian Securities and Investments Commission. ASX means the Australian Securities Exchange. Authorised Broker means Macquarie Equities Limited (ABN AFSL ) or any other broker selected by Macquarie to execute trades. The Authorised Broker will generally be acting on an execution only basis. Business Day means a day on which banks are open for business in Sydney other than a Saturday, Sunday or public holiday in New South Wales. Cash Account means the deposit account held through your Fund s custodian with Macquarie Bank Limited (MBL) ABN CHESS means Clearing House Electronic Subregister System. Fund means the superannuation fund of which you are a Member. HIN means Holder Identification Number. Macquarie, we, us or our means, as the context permits or requires Macquarie Investment Management Limited (MIML) ABN in relation to the operation of the Online Service, Bond Street Custodians Limited (BSCL) ABN in relation to CHESS sponsorship, Macquarie Equities Limited (MEL) ABN in relation to trading and execution, Macquarie Bank Limited (MBL) ABN in relation to the Cash Account and Term Deposits held through the Fund s custodian, or any other member of the Macquarie Group, or their employees and agents. Member means a member of your Fund. Online Service means the online service provided by Macquarie which facilitates Member access to and trading in various assets including cash, Term Deposits and securities that are listed on the Relevant Exchanges. Offer Documents means your Fund s Product Disclosure Statement (PDS) and other documentation such as your Fund s Investment Guide which form part of your Fund s PDS, as supplemented or replaced from time to time. Relevant Exchange means a principal exchange on which the securities are listed or traded, as determined by Macquarie. Rules means the rules, regulations, customs and practices of ASIC and the Relevant Exchange. Sponsor means the organisation which is a participant in the Relevant Exchange, and which provides transfer and settlement services in relation to securities traded on that exchange. You or your means you, as a member of your Fund. Note - references to the singular form of a word are taken to include the plural and vice versa.

6 Term Deposit terms and conditions This section sets out the terms and conditions which apply to the purchase of Term Deposits through the Online Service. This information should be read in conjunction with your Fund s Offer Documents. Capitalised terms are defined in the Definitions section. This document includes the following sections: General Conditions applying to Term Deposits ANZ Term Deposit Product Information Macquarie Bank Term Deposit Product Information Members Equity (ME) Bank Term Deposit Product Information National Australia Bank Limited (NAB) Term Deposit Product Information Definitions.

7 General conditions applying to Term Deposits General conditions 1. Investing in Term Deposits through the Online Service is subject to the terms set out in your Fund s Offer Documents and any other associated terms and conditions. 2. Term Deposits are held through the Fund s custodian or its appointed delegate with the Term Deposit provider. 3. Please contact your Fund if you would like information on how the Federal Government s Financial Claims Scheme may apply to Term Deposits. 4. Investments in Term Deposits will be debited from your Cash Account. Any associated fees and taxes are also debited from your Cash Account. Term Deposit interest rates 5. The interest earned on Term Deposits will be fixed for the term of the investment. Interest is calculated daily and paid on maturity. Processing your instructions 8. The minimum Term Deposit application is for $5,000 per Term Deposit. 9. The Term Deposit provider may impose maximum investment limits. 10. Applications can be made through the Online Service. 11. You must have sufficient funds in your Cash Account at the time of making your application and at the time your application is processed. 12. Term Deposits will be purchased periodically, generally daily on a Business Day, and funds will be drawn from your Cash Account on the day the application is made to the Term Deposit provider. 13. Your investment will be pooled with other investors funds who wish to invest for the same term with the same Term Deposit provider as you. 6. Interest rates and maturity dates are displayed on the Term Deposits page of the Online Service. They are indicative until the order is confirmed by the Term Deposit provider. 7. Interest on Term Deposits can be: (a) paid into your Cash Account upon maturity; or (b) reinvested, along with the principal, into another Term Deposit by making a maturity election.

8 Rolling over a Term Deposit (maturity election) 15. You may elect to roll over your Term Deposit to a new Term Deposit for the same term and from the same provider. You can roll over either the principal or the principal plus any interest earned on the maturing Term Deposit. 16. The applicable interest rate will be the prevailing rate at the time of processing the new Term Deposit application. 17. Rollover elections must be made (or cancelled) at least one Business Day prior to the maturity election. 18. The proceeds from the maturing Term Deposit are first credited to your Cash Account and then invested in the next available Term Deposit for the same term and from the same provider. 19. At the time of processing the rollover into the next Term Deposit, you must ensure that you have sufficient cash in your cash account. 20. Earnings tax will be debited from your Cash Account after maturity. 21. Partial rollovers are not available. Breaking a Term Deposit prior to maturity 22. Any request to break a Term Deposit before the agreed maturity must be made to your Fund. 24. The interest adjustment will be deducted from the interest paid to your Cash Account. 25. An early withdrawal request may take up to two weeks to be processed and must be received at least 10 calendar days before maturity. Reporting 26. The interest on your Term Deposit will be reported on your portfolio when it is paid into your Cash Account. Accrued interest will not be reported prior to maturity. Disputes 27. In the event of any dispute relating to your use of the Online Service you should contact your Fund in the first instance. Privacy Policy 28. Macquarie honours without reservation its obligation to respect and protect the privacy of the personal information of individuals with whom it deals. The third parties with whom we exchange personal information may operate outside of Australia (this includes locations in the Philippines) Please refer to the Privacy Policy for further details (available from the Privacy Policy link at the bottom of each web page). 23. Any request to break a Term Deposit before the agreed maturity will be subject to the approval of the Term Deposit provider; and may result in an interest adjustment.

9 ANZ Term Deposit product information As a licensed Australian bank, ANZ is Prudential Regulation Authority. ANZ also holds Australian Financial Services Licence No and is Securities and Investments Commission. The maximum investment limit is $4,999,999. Any request to break an ANZ Term Deposit before the agreed maturity will be subject to the approval of ANZ; and may result in an interest adjustment as set out in the table below. Percentage of term remaining 0 to less than 20% 20% to less than 40% 40% to less than 60% 60% to less than 80% 80% to less than 100% Interest rate reduction 20% 40% 60% 80% 90% Macquarie Bank Term Deposit Product Information The maximum investment limit is $1,000,000 per investor. Other than on the agreed maturity, you may not withdraw your funds invested in a Macquarie Bank Term Deposit unless you terminate it. 31 days notice is required to terminate your Macquarie Bank Term Deposit. If you have less than 31 days remaining until your agreed maturity, (or you have invested in a one month Macquarie Bank Term Deposit), the earliest you can access funds is at the agreed maturity. Refer to clause 25 for the impact of processing times. Any request to break a Macquarie Bank Term Deposit before the agreed maturity will be subject to the approval of Macquarie Bank and may result in an interest adjustment. The interest adjustment is currently 25% of earned interest and will be deducted from the interest paid to your Cash Account. For example, if you have a $100,000 Macquarie Bank Term Deposit invested at 3.00%p.a. for a term of 90 days and you terminate it 65 days into the term, then $ will be deducted from the interest paid to you. This is calculated as follows: $100,000 x 3.00% x (65/365) x 25% = $ The example is indicative only and the rates and figures have been selected to demonstrate how the product works. Actual rates vary from time to time As a licensed Australian bank, Macquarie Bank is subject to regulation by the Australian Prudential Regulation Authority. Macquarie Bank also holds Australian Financial Services Licence No and is Securities and Investments Commission.

10 Members Equity (ME) Bank Term Deposit Product Information As an Australian bank, ME Bank is Prudential Regulation Authority. ME Bank also holds Australian Financial Services Licence No and is Securities and Investments Commission. There is no maximum investment limit. Any request to withdraw a ME Bank Term Deposit before the agreed maturity will be subject to the approval of ME Bank and will result in an interest rate reduction based on the percentage of the original term that has elapsed as set out in the table below: Percentage of term lapsed 0 to less than 20% 20% to less than 40% 40% to less than 60% 60% to less than 80% 80% to less than 100% Interest rate reduction 90% 80% 60% 40% 20% For example, if you have a $100,000 ME Bank Term Deposit invested at 5% p.a. for a term of 90 days, and you request to withdraw it at day 65, then the interest paid to you will be $ This is calculated as follows: Investment amount $100,000 Interest rate 5% p.a. Percentage of term lapsed is calculated as 65/90 = 72% Interest rate reduction on amount withdrawn 40% Interest rate payable on amount withdrawn is calculated as (100% - 40%) = 60% Interest Payable = $ calculated as ($100,000 x 5%) x (65 days) x 60% 365 days of TD term elapsed Interest rate reduction on amount withdrawn National Australia Bank Limited (NAB) Term Deposit Product Information As a licensed Australian bank, NAB is Prudential Regulation Authority. NAB also holds Australian Financial Services Licence No and is Securities and Investments Commission. The maximum investment amount is $5,000,000. Other than on the agreed maturity, you may not withdraw your funds invested in a NAB Term Deposit unless you terminate it. A request to break your NAB Term Deposit prior to the agreed maturity is subject to 31 days notice.

11 If you have less than 31 days remaining until your agreed maturity, (or you have invested in a one month NAB Term Deposit), the earliest you can access funds is at the agreed maturity. Refer to clause 25 for the impact of processing times. Any request to break a NAB Term Deposit before the agreed maturity will be subject to the approval of NAB; and will result in reduced interest generated on that term deposit. What is early withdrawal and reduction of return? Where you request an early withdrawal of the term deposit prior to the agreed maturity, NAB will reduce the interest generated on the term deposit. Here s an example of how NAB calculates its reasonable cost: John opens a $100,000 NAB Term Deposit for 12 months at 4% pa. After 3 months John requests an early withdrawal. Since John held the Term Deposit for 3 months the percentage of term remaining falls into the category of "60% to less than 80%" which reduces the interest to 20% of the original rate of 4%, i.e. 0.8%. The calculation is therefore $100,000 x 0.8% pa = $ NAB will calculate the reduction in interest based on the proportion of the term remaining according to the percentages shown below: Percentage of term remaining 0 to less than 20% 20% to less than 40% 40% to less than 60% 60% to less than 80% 80% to less than 100% Percentage of interest paid 80% 60% 40% 20% 10%

12 Definitions Business Day means a day on which banks are open for business in Sydney other than a Saturday, Sunday or public holiday in New South Wales. Cash Account means the deposit account held through your Fund s custodian with Macquarie Bank Limited (MBL) ABN Fund means the superannuation fund of which you are a Member. Macquarie means, as the context permits or requires Macquarie Investment Management Limited (MIML) ABN in relation to the operation of the Online Service, Bond Street Custodians Limited (BSCL) ABN in relation to CHESS sponsorship, Macquarie Equities Limited (MEL) ABN in relation to trading and execution, Macquarie Bank Limited (MBL) ABN in relation to the Cash Account and MBL Term Deposits held through your Fund s custodian, or any other member of the Macquarie Group, or their employees and agents. Member means a member of your Fund. ANZ Term Deposits means the term deposits held through your Fund s custodian or it s appointed delegate with Australia and New Zealand Banking Group Limited (ANZ) ABN that you may acquire through the Online Service. Macquarie Bank Term Deposits means the term deposits held through your Fund s custodian or it s appointed delegate with Macquarie Bank Limited (MBL) ABN that you may acquire through the Online Service. ME Bank Term Deposits means the term deposits held through your Fund s custodian or its appointed delegate with Members Equity Bank Pty Ltd (ABN , AFSL ) that you may acquire through the Online Service. NAB Term Deposits means the term deposits held through your Fund s custodian or it s appointed delegate with NAB (ABN ) that you may acquire through the Online Service. Online Service means the online service provided by Macquarie which facilitates Member access to and trading in various assets including cash, Term Deposits and securities that are listed on the Relevant Exchanges. Offer Documents means your Fund s Product Disclosure Statement (PDS) and other documentation such as your Fund s Investment Guide which form part of your Fund s PDS, as supplemented or replaced from time to time. Relevant Exchange means a principal exchange on which the securities are listed or traded, as determined by Macquarie. You or your means you, as a member of your Fund. Note: references to the singular form of a word are taken to include the plural and vice versa.