Portfolio Services Adviser User Guide

Transcription

1 Portfolio Services Adviser User Guide 1 of 13 CAS4017 (10/15)

2 TABLE OF CONTENTS 01 Introduction... 3 Benefits of the Service About Us Contacting Portfolio Services New Advisers Requirements for Opening a Portfolio Services Account... 5 General Requirements Account Opening Requirements Power of Attorney Fee Schedule Asset Schedule Photocopy of Cash Account Application Photocopy of Third Party Authority Form for the Cash Account Identity Requirements... 7 Account Opening Checklist Fees and Commission Payments... 8 Fee Householding Reporting... 9 Hard Copy Reporting... 9 Portfolio Services Online General Approved Securities Registration Address Corporate Actions Online Short Selling Account Closures of 13 CAS4017 (10/15)

3 01. INTRODUCTION Portfolio Services is a disciplined approach to Portfolio Management designed to fulfil your clients demand for an allencompassing investment service. We provides you with the power to service your clients needs in the most efficient and effective way possible by streamlining the reporting of activity on your clients portfolios. Benefits of the Service Corporate actions online service allowing advisers to lodge instructions and nominate participation electronically. The reconciliation and tax implications of the corporate action are processed based on your selected option. Regular reports on clients investment portfolios, including online reporting access for both advisers and clients. Dividend and distribution income receipted, reconciled and reported. Cost base and tax parcelling provided, allowing advisers to manage their clients capital gains tax liability. A comprehensive tax report detailing all investment related transactions and calculations is provided after the end of the financial year. This includes breakdowns and allocations of complex tax distributions from listed and property trusts as well as retail and wholesale managed funds. Mailing address services provided, eliminating costly and time-consuming share registry correspondence and paperwork. Access to a wide range of investments, enabling advisers to offer a diversified investment choice with respect to customers portfolios 3 of 13 CAS4017 (10/15)

4 02. ABOUT US Share Trading and Portfolio Administration and Reporting are services provided by Australian Investment Exchange Ltd (AUSIEX) ABN AFSL , a Participant of the ASX Group and Chi-X Australia. CommSec Adviser Services is a brand of Commonwealth Bank of Australia (CBA) ABN AFSL and Australian credit licence , and is one of the leading wholesale providers of broking services, offering equity-related products and services across trading, gearing, debt optimisation, portfolio administration, portfolio construction and tax reporting. Share Trading and Portfolio Administration and Reporting under the CommSec Adviser Services brand are services provided by Australian Investment Exchange Ltd (AUSIEX) ABN AFSL , a wholly owned but non- guaranteed subsidiary of CBA and Participant of the ASX Group and Chi-X Australia. Portfolio Services Time Saving, Efficient and Effective A complete portfolio solution providing streamlined administration, simplified tax reporting and corporate actions management available through the CommSec Adviser Services website. It s designed to relieve the burden of administering your investment portfolio allowing you and your Adviser to make more informed investment decisions and be in constant touch with your portfolio s performance. 03. CONTACTING PORTFOLIO SERVICES Portfolio Services offers a dedicated Adviser Services team who are available to answer any questions you may have regarding the service or your clients portfolios. Phone: (outside Australia) Hours: 8.30am pm Mon-Fri (Sydney Time) Fax: portfolioservices@cba.com.au 4 of 13 CAS4017 (10/15)

5 04. NEW ADVISERS Before Portfolio Services accounts can be opened for your clients, we need to set up an Adviser Code for you on our systems. Your client accounts will then be linked to this code for visibility and commission purposes. In order to establish a new Adviser Code, please complete the New Adviser Form, which is available on the CommSec Adviser Services website or by ing portfolioservices@cba.com.au. The completed New Adviser Form should be ed to portfolioservices@cba.com.au. An Adviser Code will then be established for you, and a username and password sent to you in order to access Portfolio Services Online. Once your Adviser Code has been established, this code should be completed on all Portfolio Services Application Forms. A New Adviser Form should also be completed for adviser assistants requiring access to the Portfolio Services Online site. Assistants can be linked to multiple adviser codes, should this be required. 05. REQUIREMENTS FOR OPENING A PORTFOLIO SERVICES ACCOUNT General Requirements: Portfolio Services provides a reporting service over existing trading accounts. If a new equities, options or margin lending account is required, please complete the relevant application form to establish these accounts prior to applying for Portfolio Services. If only a margin lending or options account is requested, a linked Portfolio Services account will also be required, in order to process the collection of management fees and the reflection of income on the portfolio. The income and expenses for both accounts will be processed through the Cash Account linked to the Portfolio Services account. For third party collateral accounts on margin loans, both a Portfolio Services and Margin Lending account must be opened in the name of the third party in order to reflect third party assets. All Portfolio Services accounts must have a Cash Account with a minimum cash balance of $1000. The minimum cash balance of $1,000 must be maintained at all times. Certain Margin Lenders and Cash Management Providers are approved for Portfolio Services clients, as it is necessary to have established data feeds in place for reporting purposes. Please contact the Portfolio Services Client Support team should you require confirmation of the providers available to your clients. 5 of 13 CAS4017 (10/15)

6 06. ACCOUNT OPENING REQUIREMENTS 1. Power of Attorney The Portfolio Services Power of Attorney (POA) gives AUSIEX authority to act on the client s behalf in a restricted range of functions in line with the Terms and Conditions stated on the POA. There are strict business rules governing the use of the Portfolio Services POA, with only a limited number of Managers at AUSIEX permitted to sign under the POA. While signing a Power of Attorney is not a mandatory feature of opening a Portfolio Services account, it does allow the Portfolio Services team to facilitate corporate action participation and other administrative tasks on the client s behalf. Completion of the Portfolio Services POA is therefore strongly recommended. The Power of Attorney must be completed in exactly the same name as the Registered Name on the account. The POA must also be dated and witnessed, and the original form is required in all instances. 2. Fee Schedule All clients will need to sign and submit an original Portfolio Services Fee Schedule document. The rates indicated on the form are the total management fees calculated on the daily market value of the client s portfolio, and include both the adviser commission and the Portfolio Services cost recovery portion. Please refer to the following section entitled Fees and Commission Payments for further information on this process. 3. Asset Schedule An Asset Schedule listing the cost bases for all open parcels on the account should be completed, signed by the client and submitted with the Application. Original purchase dates and cost bases will also need to be provided for all holdings transferred on to the Portfolio after the account has opened. Failure to provide the correct cost bases for each tax parcel will affect the capital gains reporting on the account. Once the cost bases for all holdings have been loaded, an initial Unrealised Capital Gains Report is ed to the Adviser. The Adviser is responsible for checking the reports and confirming the CGT information is correct. Reporting will only commence on the account once this has taken place. 6 of 13 CAS4017 (10/15)

7 4. Photocopy of Cash Account Application Required only where CBA Accelerator Cash Account is not being used as linked cash account. All Portfolio Services accounts must have a Cash Account with a minimum cash balance of $1000. The Cash Account must be in the same name as the Registered Name on the client s Portfolio Services account. All Portfolio Services fees will be drawn from the linked Cash Account, and all dividends must be paid into this account. The original Cash Account Application should be submitted to the client s cash management provider prior to applying for the Portfolio Service. 5. Photocopy of Third Party Authority Form for the Cash Account Required only where CBA Accelerator Cash Account is not being used as linked cash account. Third Party Authority over the Cash Account is required in order for AUSIEX to debit management fees from the Cash Account. It is also used to establish data feeds from the cash management provider that allows transactions to be captured for reporting purposes. The current Portfolio Services Dealer Code is All levels of access should be ticked on the form (Enquiry, Fee, Tax Payment, General Withdrawal and Authorised Signatory). The original form should be submitted to the client s cash management provider prior to applying for the Portfolio Service. 6. Identity Requirements Identity documents are required for clients trading through AUSIEX as the CHESS Participant. The identity requirements are detailed in full in the Client Application Form. For clients not trading through AUSIEX, your Dealer Group may have an Agency Agreement with AUSIEX in place that allows photocopies (rather than certified documents) to be provided. Please contact the Portfolio Client Support team if you are unsure of the requirements for your clients. Account Opening Checklist: Client Application Form Power of Attorney Fee Schedule Asset Schedule Photocopy of Cash Account Application (Where a CBA account is not used as the cash account) Photocopy of Third Party Authority Form for the Cash Account (Where a CBA account is not used as the cash account) Identity Requirements 7 of 13 CAS4017 (10/15)

8 07. FEES AND COMMISSION PAYMENTS All clients are required to sign a Portfolio Services Fee Schedule. The percentage rates indicated on the form are the total management fees (inclusive of GST), and include both the adviser commission and the Portfolio Services cost recovery portion. These fees are calculated monthly based on the daily market value of the portfolio. The percentage rates are applied in fee bands as indicated in the Fee Schedule. For example for a Portfolio valued at $300,000, in the instance of the fees being applied as per the table below: 1.925% applied to the first $125,000 The next $125,000 (i.e. $125,000 -$250,000) would be charged at 1.650% The remaining $50,000 (i.e. $250,000 - $300,000) would be charged at 1.320% The management fees are debited from the client s Cash Account on or about the second last Business Day of the month. The funds are then split between AUSIEX and the Dealer Group based on an agreed scale. The commission portion is typically paid to the Dealer Group the following Business Day. An Establishment Fee and minimum monthly fee may also apply. These charges are set in accordance with the Portfolio Services Fee Schedule. VALUE OF CLIENT S INVESTMENTS RATE (INCL. GST) $0-$125, % $125,001-$250, % $250,001-$500, % $500,001-$1,000, % $1,000,001-2,000, % Above $2,000, % If there are insufficient funds in the Cash Account when the management fees are charged, a dishonour fee of $22 will apply. 8 of 13 CAS4017 (10/15)

9 Fee Householding If multiple Portfolio Services accounts are held for the same client or family, it is possible to link the Portfolio Services accounts together as a household for the calculation of fees. The management fee is then based on the total of the aggregated portfolio market values, not the individual accounts. A portion of the total household fee is applied to each account based on its market value in comparison to the total household market value. Options accounts cannot be householded. Portfolio Services must be specifically notified in the Client Application Form of any new accounts that should be householded with other accounts for fee purposes. 08. REPORTING Please refer to the Portfolio Services Glossary of Terms (available on Portfolio Services Online and provided to clients in their Welcome Pack) for full explanations and samples of the Portfolio Services reports. Hard Copy Reporting Clients receive the following standard reports on a quarterly basis: 1. Market Value Report 2. Transaction Summary 3. Income / Expense Summary 4. Sales Summary 5. Asset Information Clients may also select from a number of additional reports, including: 1. Business Activity Report (BAS) 2. Performance Summary 3. Clients with Option Accounts have these additional reports printed for them: a) Cost Additions Realised Investments b) Option Account Summary Open Positions c) Option Account Summary Closed Positions 9 of 13 CAS4017 (10/15)

10 Clients with a portfolio value of over $250,000 may elect to receive reports on a monthly basis. This should be noted on the Client Application Form at the time of opening the account. The majority of Portfolio Services reports are printed and sent to Advisers for approval within the first five business days of the month following the reporting period. The reports can either be sent back to the Portfolio Services team with the Adviser s approval to be mailed to clients or highlighted amendments. At the end of the Financial Year, clients receive a comprehensive tax report detailing all investment related transactions and calculations. The Portfolio Services team will endeavour to provide all tax related reports as close to the end of the financial year as possible. Accounts with non-standard equities (e.g. listed trusts, stapled securities, exchange traded options and managed funds) can take up to four months to prepare depending on when the tax statements are received from Issuers or third parties. Portfolio Services Online Portfolio Services reports, similar to the hard copies provided, can be accessed by both clients and advisers through Portfolio Services Online. After logging in, follow the menus: Adviser/ Reports/ Report Centre. This will take you to the primary report page. The following reports are available on Portfolio Services Online: Market Value Report Transaction Summary Income / Expense Summary Sales Summary Asset Information Option Account Summary Open Positions Option Account Summary Closed Positions Purchases and Sales Summary Unrealised Gains / Losses Performance Summary Sales Detailed Mailing Label 10 of 13 CAS4017 (10/15)

11 Client accounts can be searched by account name, number or account type. You can also list all clients. It is possible to select a number of reports for different clients at the same time. Select the tick box on the right of the page that says Include in Report for all clients required. It is also possible to click the box to Select All Clients. Enter your start date and end date for the report If you deselect the tick box Generate as separate reports (unconsolidated), the reports for the clients selected will be consolidated. This is normally used when generating reports for a client s Portfolio Services and Margin Lending Accounts. Click Generate Report. 09. GENERAL Approved Securities Portfolio Services offers access to a wide range of investments, enabling you to offer a diversified investment choice with respect to your customers portfolio. In addition to ASX listed securities (including equities, listed trusts, company options and warrants), Portfolio Services can report on the following securities: Exchange Traded Options; International Equities; Wholesale Managed Funds; Retail Managed Funds; Fixed Interest Securities; Cash Term Deposits Please note that a premium may apply for reporting on some of these asset classes. 11 of 13 CAS4017 (10/15)

12 Registration Address The CHESS Registered Address and address for notices in relation to all of the client s investments will be changed to: PO Box 8555, Perth BC WA 6849 Corporate Actions Online The Portfolio Services provides functionality that allows Advisers to receive information regarding upcoming voluntary Corporate Actions and lodge their clients participation elections online. It is also possible to save responses made using the Corporate Actions Response Summary report. These features are designed to assist Investment Advisers and their Assistants with the administration tasks associated with managing their clients investment portfolios. Please refer to the Portfolio Services Corporate Actions Guide for further details of this functionality. Sponsored Stock Portfolio Services only accepts Broker sponsored stocks held on an individual client HIN. Issuer sponsored stock cannot be reported on or sold through the Portfolio. Short Selling Please note that short selling is not available on Portfolio Services. Account Closures A Portfolio Services Closure Form signed by the client must be completed for each Portfolio Services account. The form can be downloaded from the Portfolio Services website or obtained from the Portfolio Client Support team. 12 of 13 CAS4017 (10/15)

13 VISIT commsecadviserservices.com.au CALL PORTFOLIO SERVICES ADVISER USER GUIDE Important information: CommSec Adviser Services is a brand of Commonwealth Bank of Australia (CBA) ABN AFSL and Australian credit licence Share Trading and Portfolio Administration and Reporting under the CommSec Adviser Services brand are services provided by Australian Investment Exchange Ltd (AUSIEX) ABN AFSL , a Participant of the ASX Group and Chi-X Australia. AUSIEX is a wholly owned but non-guaranteed subsidiary of CBA. This information has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should consider its appropriateness, having regard to your objectives, financial situation and needs and, if necessary, seek appropriate professional advice. If a Product Disclosure Statement is available in relation to a particular financial product, you should obtain and consider that Product Disclosure Statement before making any decisions about whether to acquire the financial product. Any securities or prices used are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. CAS4017 (10/15) 13 of 13 CAS4017 (10/15)