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Can I use foreign currency in a Wealth Accelerator account?

What is a Foreign Currency Account?

Foreign Currency Account means an account we hold with an Australian authorised deposit-taking institution (‘ADI’) in which money is denominated in a currency other than Australian Dollars (‘AUD’). Foreign Currency Accounts are held only in foreign currencies that have been approved by us for this purpose. A list of approved currencies is available from your adviser or by contacting us.

Money held on your behalf in a Foreign Currency Account is held in a pooled account with money held in the same currency on behalf of our other clients. We hold one or more separate Foreign Currency Accounts for each approved currency. Money held on your behalf in a Foreign Currency Account may be used to buy international securities.   

How do I invest in Foreign Currency Accounts?

To invest in a Foreign Currency Account, you must be a wholesale client. If you want to read more please refer to Portfolio Service Guide 2: Premium Service for Wholesale Clients.

To transfer money to or from a Foreign Currency Account, you can instruct us directly by providing us with a completed ‘Foreign Currency Transfer’ form (available from us or from your adviser) by email.

Where we receive a valid instruction to transfer money to or from a Foreign Currency Account before 2:00pm (Melbourne time) on a business day, we use our best endeavours to process the transfer to or from your cash account (as applicable) that day.

If you have money in a third-party bank account in an approved foreign currency and have been approved by us to use a Foreign Currency Account within the Wrap Service, we may, at our discretion, accept a transfer of that money directly into that Foreign Currency Account. This enables the transfer of an approved foreign currency into the Wrap Service without converting it to AUD. To transfer approved foreign currency into your Wrap Service account, please contact us to obtain the necessary banking details.

What exchange rates are used for foreign currency transfers and is there fees involved?

The exchange rates used for any purchase, sale, income receipt, corporate action, or any other foreign currency requirement in relation to international securities are the prevailing ‘value today’ rate available in wholesale/interbank foreign exchange markets.

Although there is no fee, to action a foreign currency transfer margin of up to 0.45% may be applied to the prevailing ‘value today’ rate available in wholesale/inter-bank foreign exchange markets. We retain this margin, less any margin we pay to third parties to complete this conversion.

How will foreign currency values show in my portfolio?

Any foreign currency can be held for you and are shown in your online account and on statements in Australian dollars. The value of any foreign currency is based on the exchange rate between the Australian dollar and the foreign currency.

When you want to sell the currency held, and the settlement is completed, we convert the money received from the sale in the foreign currency to Australian dollars and the proceeds are transferred into your cash account.

Funds available from sell transactions are available to you only after the sub-custodian has settled the transaction and we have converted the funds to Australian dollars.

Will I earn interest on funds held in foreign currency accounts?

Interest will not be paid to you on money that is held in foreign currencies.

Can I invest using foreign currency without being a Wholesale Client?

If you are not registered as a Wholesale client within your Netwealth Wrap Services account, then you will be unable to invest using or hold funds in Foreign Currency Accounts.  

Foreign currency in your account is not available for you to withdraw or to be used to purchase investments until we have converted the funds to Australian dollars, after which time the proceeds are transferred into your cash account.

If you want to read more please refer to Portfolio Service Guide 1a: Operating your Wealth Accelerator account.

Will income from international assets be held in foreign currency accounts?

Non wholesale investors - Income we receive from international securities in a foreign currency is converted to Australian dollars.

Wholesale investors - Income will not be converted if you are a Wholesale Client. Dividends will remain in their native currency until you or your Nominated Financial Adviser request their conversion to
Australian dollars.

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Let us help you with your query. You can contact us on 1800 888 223, or email us at contact@netwealth.com.au

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