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Managed investments - adding a new investment 108-04090020

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This document outlines characteristics of a managed investment. It explains how to record managed investments owned by a customer, or an entity such as a private trust or private company.

Staff trained in Process Direct are to use the Process Direct tab. Staff not trained, use Customer First.

Process Direct

On this page:

Initial contact and coding for a new managed investment

Finalising a new managed investment

New timeshare or afforestation investment

Initial contact and coding for a new managed investment


Table 1

Expand table

Step

Action

1

To update income and assets for a change of circumstance:
  • Access the Customer Summary in Process Direct
  • Use the Super Key to go to screens
  • Key 'START' in the Super Key
  • Select Income and Assets Update from the task selector
  • Select Investments Summary from the task selector options
  • Select Start to initiate the Change of Circumstances flow

2

Customer advises a new investment

For customers under Age Pension age, do not ask or record Australian superannuation products in accumulation that are invested in their name. If the new investment is a superannuation product for either the customer and/or their partner, see Assessing superannuation.

Before starting the update, check - 'Where did the money come from to buy the investment?'

For example, if the customer used funds from another asset such as savings, the Savings Summary (SVS) screen will need to be updated within the same activity.

If the new investment relates to:

3

Public Trustee organisation

The investment is:

  • coded on the customer's record when:
    • the Public Trustee is managing the personal funds of a customer under an administration order, and
    • interest and earnings from the investment are reported on the customer's personal income tax return
  • not coded on the customer's record when:
    • investments are made in the name of a trust
    • earnings from the investment are on the trust's tax return
    • the customer receives distributions from the trust

Documents for some State and Public Trustee managed investments may not always include the Asia Pacific Investment Register (APIR) code.

  • Confirm the product is a managed investment – further verification may be required
  • Refer to the Financial Industry and Network Support (FINS) Bulletin
  • Check this investment is not already incorrectly coded on the Direct Investments (SVDI) screen as a bank account

Is the investment to be coded on the customer's personal record?

4

Notification

If there is a small change to asset value, check if the customer needs to notify.

Use the Income and Assets Update Task Selector (START) and select Next to go to the Managed Investments (MIS, MIP, MIUS).

Is the managed investment already recorded?

5

Providing information

A customer must provide the latest statement from a fund manager showing:

  • the current balance for portfolio products that do not have an Asia Pacific Investment Register (APIR) code, for example:
    • Personal Investment fund portfolios (also known as a master trust)
    • Funds that have not purchased an APIR code
    • Unregistered managed investment
  • a breakdown of the investment options and number of units owned for unitised products

Has the customer provided the latest statement?

6

Coding

Before coding the product, check the FINS Bulletin to determine if the product should be coded as one portfolio or as individual investment options.

  • Use the Income and Assets Update Task Selector (START)
  • Select Next to go to the Managed Investments (MIS, MIP, MIUS)
  • Select Add on the Managed Investment (MIP) line to access the Create Managed Investment (MIP) options. The system will use details entered to search the Managed Investment (MIN) system for the investment product

Enter the investment's APIR code in the APIR Code field and press [Enter].

If the statement does not include an APIR code, go to Step 7.

The APIR code:

  • must be exact to obtain a match
  • consists of 9 characters:
  • the first 3 are letters
  • the next 4 are numbers
  • the final 2 are 'AU'

Is there a match for the APIR code?

7

Coding - APIR code not available or no match found

Search for the managed investment product by clicking on the Fund Manager name field. This launches Search for APIR code.

Complete the following fields. To access screen help, key '?' in each field.

  • Fund Manager: is mandatory and must have at least 2 characters. The first must be a letter
  • Product Group: is optional, to narrow the investment search
  • Search by Product Option: is optional, to narrow the investment search

Select the Search icon.

A product list displays below the Search for APIR code fields.

Has the product been found?

8

Product does not appear on Create Managed Investment (MIP)

If the investment is a Self-Managed Superannuation Fund (SMSF) see Table 2 > Step 2.

Check the FINS Bulletin by searching the investment's fund manager name under the alphabetical list.

Is the investment in the FINS Bulletin?

9

Product listed in FINS Bulletin

Key the investment as advised in the FINS Bulletin.

To:

10

Product not listed in FINS Bulletin

Contact Local Peer Support (LPS) for help in locating product. If product still cannot be found:

  • contact the FINS Helpdesk for coding advice, then key the managed investment as instructed

To:

11

Request documents

Check the customer's record to make sure a documented request for the return of documents is not already recorded.

  • Advise the customer:
    • what information they need to provide
    • all information is required before recording any change. This will make sure they receive correct payments
  • DOC the record with what has been requested
  • Request the information and forms required and allow extra days for surface mail delivery

Procedure ends here until documents returned.


Finalising a new managed investment


Table 2

Expand table

Step

Action

1

Coding Create Managed Investments (MIP)

Once the search results locate the correct management investment product, the Fund Manager details will populate on MIP. If unable to locate the product with a name search (for example, HESTA, Q-Super, REST or GESB) refer to the FINS Bulletin for individual coding instructions. Do not code these products on MIUS.

Key the following fields:

Fund Manager Details

  • Investment date: This date is not assessed by the system
    • Use the commencement date of the product, if written on the verification document
    • If the verification document does not provide the commencement date of the product, leave the field blank. Once the investment is added, the date will default to today's date. This can be left unchanged
    • If the following errors present 'Managed Investment product has been closed on XXXX-XX-XX' or 'Managed Investment product has been terminated on XXXX-XX-XX', refer to the Examples of E126MI error on the Resources page for required actions
  • Policy number:
    • Key the policy/account/certificate or a unique number for the investment
      Note:       if this number exceeds 10 characters, key the last 10 only. For products where individual investment options need to be coded under separate Asia Pacific Investment Register (APIR) codes, the same policy number will apply to all investment options within the investment portfolio

Investment Details

Managed Investments and Superannuation products may use different Event Dates. Make sure to follow the correct instructions below. The Resources page has some examples to assist with coding.

  • Event date (Managed Investments):
    • For existing customers: the date the investment was opened (if the payment was transferred from an earlier dater, refer to the Resources page for an example)
    • For new claims: claim lodgement date, unless:
      - customer's start date is backdated: use payment grant date
      - a change in circumstance has occurred since lodging claim: use the date the investment was opened (if the payment was transferred from an earlier date, refer to Resources page for an example)
      Note: if the customer or partner is current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC) and the managed investment is not recorded, refer to 'Previously undeclared managed investments' below
    • Previously undeclared managed investments: the investment needs to be recorded from the first day customer or partner became current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC) or the date purchased (whichever is later)
  • Event date (Superannuation):
    • For existing customers:
      - under Age Pension age, superannuation in the accumulation phase must not be coded unless customer is within 13 weeks of reaching Age Pension age. For more information, see Assessing superannuation
      - over Age Pension age, the date the investment was opened or the date the payment for the investment was transferred (if the payment was transferred from an earlier date, refer to the Resources page for an example)
    • For new claims: claim lodgement date, unless:
      - customer's start date is backdated: use payment grant date
      - a change in circumstance has occurred since lodging claim: use the date the investment was opened
    • Superannuation must only be coded if the owner of the investment is within 13 weeks of reaching Age Pension age from the claim lodgement date
      Note: if the customer or partner is current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC) and the superannuation investment is not recorded, refer to 'Previously undeclared superannuation investments' below
    • Previously undeclared superannuation investments: the investment needs to be recorded from the first day the owner of the product reached Age Pension age when either customer or partner are current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC). If neither were current, then code from the first date customer or partner became current
    • For Transfer to Age: code superannuation from claim lodgement date or Age Pension age date, whichever is earliest (a customer's Age Pension age date can be located on the Pensions General Information (PNGI) screen)
  • Funeral exempt:
    • This field is only visible if the investment is a funeral bond
    • Select Yes if the investment is to be disregarded from the income and assets tests
  • Customer owned % and Partner owned %, for when the investment is owned jointly with the customer's partner
  • Loan/Encumbrance amount $:
    • If applicable, key the balance of the loan/encumbrance which is deductible from the investment value. See Loans and liabilities against assets
    • Do not key margin loans here – see the FINS Bulletin which has information about margin loans, including the pseudo code for a number of margin loan products
    • For sales of the former home finalised before 1 January 2023, this field includes the exempt amount from the sale of the former home that the customer intends to spend on their new home
  • New home deduction amount $:
    • If applicable, code the exempt amount from the sale of the former home that the customer intends to spend on their new home for sales finalised on/after 1 January 2023. See Sale of principal home
  • Rural exemption code: leave blank unless the customer is claiming a rural payment then select:
  • ASS if asset value is exempt
  • BTH if both asset and deemed income is exempt
  • NOT if neither asset value or deemed income is exempt
  • Number of units:
    • Use when the investment is unit based
    • It must be a whole number. If the customer owns a partial number of units, round down to the nearest whole number
  • Account amount $, used for account based managed investments. Record in either dollar and cents or whole dollars rounding down, it will result in the same outcomes. For:
    • margin loans: key the gross market value
    • personal investment funds: key the total value of the portfolio, including any cash component
    • funeral bonds: for new funeral bonds, code the original amount invested. For existing bonds, code the total contributed by the customer since purchase (do not include investment earnings or bonuses paid)
  • Enter the Receipt date
  • Select the Channel
  • Select the Service Reason. If the system does not select a default Service Reason, select the most relevant Service Reason for the update
  • Select Save

The Investments Summary (MIS) shows the updated managed investment.

If the investment is recorded on the SVDI screen, zero the balance from the same date as the product is coded on the MIP screen.

Go to Step 3.

2

Coding the Unregistered Managed Investment (MIUS) for a customer

After making sure the product is not included in the FINS Bulletin, select Add on the MIUS line to access the Create Unregistered Managed Investment (MIUS) options.

Key the following fields:

Header Detail

  • Product name
  • Investment name
  • Investment date (dd/mm/yyyy): This date is not assessed by the system
    • Use the commencement date of the product, if written on the verification document
    • If the verification document does not provide the commencement date of the product, use today's date
  • Investment type: select the appropriate option:
  • Deeming Ex:
    • Select Yes if the investment is exempt from the deeming rules
    • Note: if deeming exempt, record an amount in the Interest Rate field

Item Detail

  • Event date (Managed Investments):
    • For existing customers: the date the investment was opened (if the payment was transferred from an earlier date, refer to the Resources page for an example)
    • For new claims: claim lodgement date, unless:
      - customer's start date is backdated: use payment grant date
      - a change in circumstance has occurred since lodging claim: use the date the investment was opened (if the payment was transferred from an earlier date, refer to the Resources page for an example)
      Note: if the customer or partner is current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC) and the managed investment is not recorded, refer to 'Previously undeclared managed investments' below
    • Previously undeclared managed investments: the investment needs to be recorded from the first day customer or partner became current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC) or the date purchased (whichever is later)
  • Event date (Superannuation):
    • For existing customers:
      - under Age Pension age, superannuation in the accumulation phase must not be coded unless customer is within 13 weeks of reaching Age Pension age. For more information, see Assessing superannuation
      - over Age Pension age, the date the investment was opened (if the payment was transferred from an earlier date, refer to the Resources page for an example)
    • For new claims: claim lodgement date, unless:
      - customer's start date is backdated: use payment grant date
      - a change in circumstance has occurred since lodging claim: use the date the investment was opened (if the payment was transferred from an earlier date, refer to the Resources page for an example)
    • Superannuation must only be coded if the owner of the investment is within 13 weeks of reaching Age Pension age from the claim lodgement date
      Note: if the customer or partner is current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC) and the superannuation investment is not recorded, refer to 'Previously undeclared superannuation investments' below
    • Previously undeclared superannuation investments: the investment needs to be recorded from the first day the owner of the product reached Age Pension age when either customer or partner are current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC). If neither were current, then code from the first date customer or partner became current
    • For Transfer to Age: code superannuation from claim lodgement date or Age Pension age date, whichever is earliest (a customer's Age Pension age date can be located on the Pensions General Information (PNGI) screen)
  • Funeral exemption: select Yes if the investment is an exempt funeral investment
  • Customer owned %
  • Partner owned %: Note: superannuation cannot be jointly owned
  • Rural exemption code: leave blank unless the customer is claiming a rural payment then select:
    • ASS if asset value is exempt
    • BTH if both asset and deemed income is exempt
    • NOT if neither asset value or deemed income is exempt
  • Number of units:
    • A unit based investment must be a whole number
    • If the customer owns a partial number of units, round down to the nearest whole number
  • Unit value amount: if the investment is unit based, the value of each unit
  • Loan/Encumbrance amount $:
    • If applicable, key the balance of the loan/encumbrance which is deductible from the investment value
    • Only code the amount while the customer is entitled to have all or part of the asset exempt under the Assets Test. See Loans and liabilities against assets
    • For sales of the former home finalised before 1 January 2023, the field includes the exempt amount from the sale of former home that the customer intends to spend on their new home
  • New home deduction amount $:
    • If applicable code the exempt amount from the sale of the former home that the customer intends to spend on their new home for sales finalised on/after 1 January 2023. See Sale of principal home
  • Total asset value: if the investment is:
    • account based, key the account balance in either dollars and cents or whole dollars rounding down, it will result in the same outcome
    • a margin loan, key the gross market value
    • a personal investment fund, key the total value of the portfolio, including any cash component
    • funeral bonds: for new funeral bonds, code the original amount invested. For existing bonds, code the total contributed by the customer since purchase (do not include investment earnings or bonuses paid)
  • Interest rate: code if Deeming Ex: = Yes
  • Select Save
  • Update the Receipt date
  • Select the Channel
  • Select the Service Reason. If the system does not select a default Service Reason, select the most relevant Service Reason for the update
  • Select Save

Go to Step 3.

3

What to tell the customer
  • There is a bulk update to revalue all listed shares and unitised managed investments each March and September
  • A customer may request a revaluation of their financial investments at any time
  • Although their unitised managed investment prices are automatically revalued, they are required to notify changes to the number of units they own and changes to investment options
  • Margin loans, unregistered managed investments/superannuation funds, account based managed investments/superannuation funds and personal investment funds (also known as a master trust), are manually reviewed every 6 months
  • Advise the customer they need to notify changes to:
    • balance of their margin loan(s)
    • value of their unregistered managed investment(s)/superannuation fund(s)
    • value of their account-based managed investment(s)/superannuation fund(s)changes in the investment held within a personal investment fund portfolio (also known as a Master Trust)
    • if they made any extra contributions to their funeral bond

Go to Step 4.

4

Finalising the process

For new managed investments obtained after withdrawal from existing investments, see Managed investments - updating existing investments before finalising the activity.

  • Select Assess
  • Check the outcome on Entitlements (ELD) and select Finish
  • Add any extra details to the Finalise Note which has been pre-filled with details of the income and assets update
  • Select Finalise to complete the transaction
  • See Table 3 > Step 4 on the Customer First tab to set up a Manual Follow-up (MFU) review using review reason INV for:
    • Margin loans
    • Unregistered managed investments and superannuation products, including Self-Managed Superannuation Funds (SMSF)
    • Account-based managed investments
    • Personal investment funds, or
    • Unlisted overseas managed investments
  • Otherwise, procedure ends here

New timeshare or afforestation investment


Table 3

Expand table

Step

Action

1

Changes to timeshare or afforestation assessment

Although timeshare or afforestation investments are treated as managed investments, they do not have an APIR code and are coded on Direct Investments Account (SVDI).

Are there timeshare or afforestation investments coded on Other Assets (OAS, OASS) or Managed Investments (MIS, MIP, MIUS) or, is income from timeshare or afforestation coded on Other Income (OIN, OINS)?

2

Income already coded for a timeshare or afforestation
  • Cease the asset value on OAS, OASS, MIS, MIP, MIUS or the income on OIN, OINS
  • Code the asset value on Savings (SVP, SVDI)

To cease the asset value:

  • Expand the timeshare or afforestation investment
  • Add a new investment details entry
  • Event date: today's date. Use the same date of event when adding it as a Direct Investment Account (SVDI)
  • Total asset value: $0

To cease the income amount

  • Expand the timeshare investment
  • Add a new investment details entry
  • Event date: today's date
  • Gross amount: $0
  • Frequency: blank

Note: income does not need to be coded. It will be assessed under the deeming provisions once the timeshare or afforestation is coded on SVDI.

3

Location of timeshare or afforestation

Is the timeshare or afforestation located in Australia?

4

Key Direct Investment Account (SVDI) details

Go to SVDI and select Add.

Header Detail

  • Investment type code: select OTH – Direct investment
  • Investment name: the name of the organisation or timeshare
  • Investment date: the date of the purchase
  • Account number
  • Customer owned %
  • Partner owned %
  • Deeming exemption
  • Select Yes if the customer has applied for and been granted a deeming exemption for the timeshare investment
  • Note: the actual income from the investment is still assessable. Key Interest percentage % to assess actual income. Otherwise leave blank
  • Note: to see if a product is exempt from deeming, see Deeming exemptions
  • Account closed: defaults to No and does not need to be changed when adding a new investment

Item Detail

  • Event date: the date of event
  • Balance amount:
    • Use the purchase price
    • Code the applicable asset value in whole dollars. See Table 6 > Step 1 in Assessment and sale of real estate and timeshare asset
  • Interest percentage %: the actual rate of return. Leave blank if not deeming exempt
  • Loan/Encumbrance amount:
  • If applicable, key the balance of the loan/encumbrance which is deductible from the investment value
  • Only code an amount while the customer is entitled to have all or part of the asset exempted under the Assets Test. See Loans and liabilities against assets

Finalise the update:

  • Select Save
  • Update the Receipt Date
  • Select the Channel
  • Select the Service Reason. If the system does not select a default Service Reason, select the most relevant Service Reason for the update
  • Select Save
  • Select Assess
  • Check the outcome on Entitlements (ELD) and select Finish
  • Add any extra details to the Finalise notes which has been pre-filled with details of the income and assets update
  • Select Finalise to complete the transaction

5

Key Direct Investment Account (SVDI) details

Go to SVDI and select Add.

Header Detail:

  • Investment type code: select OSA, also code Investment Country and Currency fields. The system will populate the exchange rate saved after the date of receipt and channel are entered
  • Investment name: the name of the organisation or timeshare
  • Investment date: the date of the purchase
  • Account number
  • Customer owned %
  • Partner owned %
  • Deeming exemption: select Yes if the customer has applied for and been granted a deeming exemption for the timeshare investment
      • Note: the actual income from the investment is still assessable. Key Interest percentage %: to assess actual income. Otherwise leave blank
      • Note: to see if a product is exempt from deeming, see Deeming exemptions
  • Account closed: defaults to No and does not need to be changed when adding a new investment

Item Detail

  • Event date: the date of event
  • Balance amount: code the applicable asset value in whole dollars. See Table 6 > Step 1 in Assessment and sale of real estate and timeshare asset
    • Interest percentage %: the actual rate of return. Leave blank if not deeming exempt
    • Assets test deduction amount: the amount of encumbrance, which is deductible from the balance of the investment, if applicable

Finalise the update:

  • Select Save
  • Update the Receipt Date
  • Select the Channel
  • Select the Service Reason. If the system does not select a default Service Reason, select the most relevant Service Reason for the update
  • Select Save
  • Select Assess
  • Check the outcome on Entitlements (ELD) and select Finish
  • Add any extra details to the Finalise notes which has been pre-filled with details of the income and assets update
  • Select Finalise to complete the transaction