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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.

Customer First

On this page:

Initial contact and system coding for a new managed investment

Managed investment owned by an entity

Finalise a new managed investment

New timeshare or afforestation investment

Initial contact and system coding for a new managed investment


Table 1

Expand table

Step

Action

1

Customer advising of 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 and within the same activity.

If the new investment relates to:

2

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 trusts 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 correctly coded on the Direct Investments (SVDI) screen as a bank account

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

3

Notification

If there is a small change to asset values check if the customer is required to notify.

Complex Assessment Officers – for managed investments owned by a trust or company, search for investment details on the entity's record in Environment A.

Go to the Managed Investments Summary (MIS) screen.

Is the investment already recorded?

4

Providing information

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

  • portfolio products that do not have Asia Pacific Investment Register (APIR) codes, such as: personal Investment fund portfolios, (also known as a Master Trust)
  • funds that have not purchased an APIR code
  • unregistered managed investments

The latest statement showing the current balance must be supplied.

For unitised products, the latest statement showing a breakdown of the investment options and number of units owned, must be provided.

A pseudo APIR code is issued to all managed investment funds on the Managed Investment (MIN) system that do not have an APIR code.

Has the customer provided the latest statement?

5

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. Note: for coding of funeral bond products, only use APIR codes found on the Funeral Bonds FINS Bulletin article.

Go to the Managed Investment Product List (MIP) screen. The system uses details on MIP to search the Managed Investment (MIN) system for the investment product.

The investment product can be found by entering the APIR code in the APIR code field. Note: if searching for the investment product using the APIR code field, do not code the Fund Manager Product Group or Product Option fields.

If the statement does not include an APIR code, go to Step 6.

The APIR code:

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

Is there a match for the APIR code?

6

Coding - APIR code not available or no match found

Search for the managed investment product via the fund manager name and either the product group name or the product option name.

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

  • Fund Manager field, must have at least 2 characters and the first character must be a letter
  • Product Group field, multiple keywords can be entered, separated by a comma. When using this field, the Fund Manager field must also be completed
  • Product Option field, multiple keywords can be entered, separated by a comma. When using this field, the Fund Manager field must also be completed
  • Current Name Only field, if 'Y'es is entered, only the most recent fund manager, product group and product option will be displayed. If 'No' is entered, former names will also be displayed

Select Continue.

A product list will display on the MIP screen.

Has the product been found?

  • Yes, select the appropriate product from the list by coding 'S' in the field next to the product. The Managed Investments (MI) screen is displayed. See Table 3 > Step 1
  • No, go to Step 7

7

Product does not appear on the MIP screen

When the product is not on the MIP screen, it may have been changed or updated in some way. Check the Main Menu (MIMM) screen, see Managed investments.

  • For Self-Managed Superannuation Fund (SMSF), see Table 3 > Step 2
  • For other managed investments, check the FINS Bulletin by searching the investment's fund manager name under alphabetical list. If investment is:

8

Product listed in FINS Bulletin

To:

9

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 and key the managed investment as instructed

To:

10

Request documents

Check the customer's record. There may be a documented request for the return of documents 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.


Managed investment owned by an entity


Table 2

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Step

Action

1

Aggregation

For Complex Assessment Officer (CAO) use.

Managed investments owned by an entity are recorded on the entity record in Environment A.

For aggregation, all managed investments coded on the Managed Investments (MIN) system are assessed as non-primary production assets.

If a customer, trust or company runs a primary production business and invests some of its working capital in managed investments:

  • these may be recorded on the Other Assets (OAS) screen as primary production assets
  • manually code any updates to share/unit prices
  • only update current investments when details of all managed investments are provided

Check the Managed Investments Summary (MIS) screen.

To determine if the investment is included in the Managed Investments (MIN) database, check if the investment is listed on the MIP screen.


Finalise a new managed investment


Table 3

Expand table

Step

Action

1

Coding the MI screen

Complex Assessment Officers - for managed investments owned by an entity, code the investment details for a trust or company on the entity's record in Environment A.

Key investment details:

  • if the investment is unit-based, key the number of units in the Units field. Note: the system will not allow the coding of decimals. If the customer owns a partial number of units, round down to the nearest whole number
  • if the investment is account based, key the amount (in either dollars and cents or whole dollars rounding down, it will result in the same outcome) in the $ field:
    • for margin loans, key the gross market value
    • for personal investment funds code, 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)
  • Funeral exempt:
    • This field is only visible if the invest is a funeral bond
    • Select Yes if the investment meets the exemption criteria
    • Select No if the investment does not meet the exemption criteria
  • Customer % and Partner %: if the investment is owned in conjunction with the customer's partner, key the percentage owned by the customer and their partner
  • 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)
    • Note: backdating the Event Date may result in additional CPI and other dates such as age pension age date, being auto inserted, these are not to be deleted
  • 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 date: This date is not assessed by the system
    • The system defaults to today's date. Change it to the commencement date of the product, if provided on the verification document
    • If the verification document does not provide the commencement date of the product, leave the default date of today
    • If the following errors present 'Managed Investment product XXX has been closed on DD/MMM/YYYY' or 'Managed Investment product XXX has been terminated on DD/MMM/YYYY', refer to the Examples of E126MI error on the Resources page for required actions
  • 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
    • 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
  • select Continue

The MIS screen 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 MIUS screen for a customer

Complex Assessment Officers - for managed investments owned by an entity:

After making sure the product is not included in the FINS Bulletin, key the following fields:

  • Fund Name: fund manager name
  • Product: product name
  • Investment type: select the appropriate option:
  • FB - Funeral Bond, for more information see Funeral bonds and investments
  • NS - Non Superannuation (Managed Investments)
  • SS - Superannuation, for more information see Assessing superannuation
  • Total asset value: if the investment is account based, key the account balance in either dollars and cents or in whole dollars rounding down. It will result in the same outcome. For
  • Margin loans, key the gross market value
  • Personal Investment Funds code 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)
  • No of units: if the investment is unit based, the number of units. Note: the system will not allow the coding of decimals. If the customer owns a partial number of units, round down to the nearest whole number
  • Unit value: if the investment is unit based, the value of each unit
  • % owned customer/partner: the percentage owned by the customer and their partner (if superannuation, it cannot be jointly owned)
  • 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)
  • Investment date: This date is not assessed by the system
  • The system defaults to today's date. Change to the commencement date of the product, if it is written on the verification document
  • If the verification document does not provide the commencement date of the product, leave the default date of today
  • 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
  • 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
  • Deeming exempt: 'Y' if the investment is exempt from the deeming rules. Note: if recorded as deeming exempt, record an amount in the Interest rate field
  • Funeral exempt:
    • Select Yes if the investment meets the exemption criteria
    • Select No if the investment does not meet the exemption criteria
  • Source: the source of the information
  • DOR: the date of receipt of the information

Select Continue - the MIS screen displays the updated managed investment.

  • Complete the activity on the AR screen. For new managed investments acquired after a withdrawal from an existing investment, see Managed investments - updating existing investments before finalising the activity
  • Record details on a DOC
  • For managed investments owned by entities (Complex Assessment Officers only), procedure ends here.
  • For all other managed investments, 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
  • Customers may request a revaluation of their financial investments at any time
  • Although their unitised managed investment prices are automatically revalued, customers are required to notify changes to the number of units they own and changes to investment options
  • For managed investments owned by entities (Complex Assessment Officers only), procedure ends here
  • 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

Setting up a MFU review code for a new product

The following products are excluded from the bulk updates in March and September and must have a manual review created:

  • Margin loans
  • Account based managed investments and superannuation products
  • Unregistered superannuation products
  • Personal investment funds
  • Self-Managed Superannuation Funds (SMSF)
  • Unlisted overseas managed investments
  • Note: the system automatically creates the CLI review for Unregistered Managed Investments (Non superannuation). A manual review is not required to be coded

In Customer First, create a manual review on the Review Registration (RVR) screen as follows for:

Margin loans
  • Service Reason: customer's payment type
  • Review Reason:
    • PEN: INV
    • JSP, YAL and FHA (FHS): INA
    • PPP and ABY: OTH
  • Due Date: next bulk update 20 March or 20 September
  • Source: INT
  • Date of Receipt: today's date
  • Notes: 'Contact customer to obtain the current market value of the portfolio and current loan balance amount.'
  • Keywords: MARGLOAN
  • Workgroup: leave blank
  • Position: leave blank
  • Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Procedure ends here.

Account based managed investments and superannuation products
  • Service Reason: customer's payment type
  • Review Reason:
    • PEN: INV
    • JSP, YAL and FHA (FHS): INA
    • PPP and ABY: OTH
  • Due Date: next bulk update 20 March or 20 September
  • Source: INT
  • Date of Receipt: today's date
  • Notes: 'Contact customer to obtain the current market value of the portfolio.'
  • Keywords: ABMIS
  • Workgroup: leave blank
  • Position: leave blank
  • Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Procedure ends here.

Unregistered superannuation products (except SMSFs) and Personal investment funds
  • Service Reason: customer's payment type
  • Review Reason:
    • PEN: INV
    • JSP, YAL and FHA (FHS): INA
    • PPP and ABY: OTH
  • Due Date: next bulk update 20 March or 20 September
  • Source: INT
  • Date of Receipt: today's date
  • Notes: 'Contact customer to obtain the current market value of the portfolio.'
  • Keywords: UNREGMIS
  • Workgroup: leave blank
  • Position: leave blank
  • Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Procedure ends here.

Self-Managed Superannuation Funds (SMSF)
  • Service Reason: customer's payment type
  • Review Reason:
    • PEN: INV
    • JSP, YAL and FHA (FHS): INA
    • PPP and ABY: OTH
  • Due Date: 12 months from latest statement
  • Source: INT
  • Date of Receipt: today's date
  • Notes: 'Contact customer to obtain the value of the members balance of the SMSF.'
  • Keywords: SMSFMIS
  • Workgroup: leave blank
  • Position: leave blank
  • Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Procedure ends here.

Unlisted overseas managed investment products
  • Service Reason: customer’s payment type
  • Review Reason:
    • PEN: INV
    • JSP, YAL and FHA (FHS): INA
    • PPP and ABY: OTH
  • Due Date: next bulk update 20 March or 20 September
  • Source: INT
  • Date of Receipt: today’s date
  • Notes: ‘Contact customer to obtain the current unit numbers or portfolio balance for overseas managed investment.’
  • Keywords: OSSIUS
  • Workgroup: leave blank
  • Position: leave blank
  • Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Procedure ends here.


New timeshare or afforestation investment


Table 4

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 the Direct Investments (SVDI) screen.

Is there:

    • timeshare or afforestation investments coded on the Other Assets (OAS) or Managed Investments Summary (MIS) screens, or
    • income from timeshare or afforestation coded on Other Income Summary (OINS) screen?
  • Yes, go to Step 2
  • No, go to Step 3

2

Income already coded for a timeshare or afforestation

Any income from timeshare investments coded on the OINS screen and any timeshare or afforestation investment coded on the OAS/MIS screens must be ceased and the asset value recoded on the SVDI screen.

To cease the asset value, key:

  • Event Date: today's date (the same date of event is used for ceasing the timeshare or afforestation when adding it on the SVDI screen)
  • Amount: $0

To cease the income amount, key:

  • Event Date: today's date
  • Amount: $0
  • Freq: blank

Note: income is not required to be coded as it will be assessed under the deeming provisions once the timeshare or afforestation is coded on the SVDI screen.

3

Location of timeshare or afforestation

Is the timeshare or afforestation located in Australia?

4

Key the Direct Investments (SVDI) screen

Go to the SVDI screen and key the following fields:

  • Investment name: the name of the timeshare or afforestation
  • Account number: this can be left blank
  • Type: the investment type. OTH
  • Balance: code the applicable asset value in whole dollars. See Table 6 > Step 1 in Assessment and sale of real estate and timeshare asset
  • Interest %: the actual rate of return, leave blank
  • Non FI deprvd income: the income amount for deprivation, if there is no asset value
  • % Owned: the percentage owned by the customer and/or partner
  • Event date: the date of event
  • Investment date: the date of purchase

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
  • Deeming exempt: code 'Y' if the customer has been granted a deeming exemption for the timeshare investment
  • To see if a product is exempt from deeming, see Deeming exemptions, otherwise leave blank
  • If 'Y' is coded, actual income received from the investment is assessable - key the Interest % field to enable assessment of actual income
  • The Source and DOR and Action (using the code I) fields

Complete the activity on the AR screen.

Record the details on a DOC.

Procedure ends here.

5

Go to the SVDI screen and key the following fields:
  • Investment name: the name of the organisation or timeshare
  • Account number: this can be left blank
  • Type: the investment type. OSA
  • Balance: code the applicable asset value in whole dollars. See Table 6 > Step 1 in Assessment and sale of real estate and timeshare asset
  • Interest %: the actual rate of return, leave blank
  • Non FI deprvd income: the income amount for deprivation, if there is no asset value
  • % Owned: the percentage owned by the customer and/or partner
  • Event date: the date of event
  • Investment date: the date of purchase
  • Assets test deduction amt: the amount of encumbrance (in whole dollars rounding down) which is deductible from the balance of the investment, if applicable
  • Deeming exempt: code 'Y' if the customer has been granted a deeming exemption for the timeshare investment. To see if a product is exempt from deeming, see Deeming exemptions, otherwise leave blank. If 'Y' is coded, actual income received from the investment is assessable - key the Interest % field to enable assessment of actual income
  • The Source and DOR and Action (using the code I) fields
  • Once the Source and DOR fields are completed, the Investment Country and Currency fields will populate to code. Once these are completed the relevant exchange rate will pre populate

Complete the activity on the AR screen.

Record the details on a DOC.

Procedure ends here.