Some financial institutions lend you or your client money to fund or partly fund buying investments, including ASX listed securities, managed funds and other approved investment options that may be held through Wealth Accelerator. The lending of funds to acquire investments is commonly referred to as 'margin lending'.
Netwealth do not provide margin lending facilities, but Netwealth do have agreements in place with certain lenders to permit investors who wish to borrow funds to acquire investments to hold those investments through Wealth Accelerator. The terms and conditions for a margin loan are as agreed by you/your client and the lender, but it is usually up to the lender to take some form of security over the investments to be held through Wealth Accelerator.
To read more on margin lending at Netwealth, please refer to the Wrap Service Guide 1A.
What is required to open a margin lending account?
To open a brand new WRAP/Wealth Accelerator account with a Margin Lender (ML) attached, Netwealth require a signed application form with the relevant Anti-Money Laundering (AML) forms in order to set up the ML account. The ML and the client will need to sign this application form.
To add a Margin Lender to an existing WRAP/Wealth Accelerator account, Netwealth require a signed letter from the Margin Lender OR a signed 'Australian Standard Transfer Form'. The ML will need to be the 'Buyer' and the client will be the 'Seller'.
Which margin lenders are approved by Netwealth?
| ANZ Banking Limited |
| BT/Westpac Margin Lending |
| Colonial Marking Lending (Commbank) |
| NAB Margin Lending |
| St George Margin Lending |
| Leveraged Equities |
| NAB Equities |
How do I check my margin lending progress?
You can check any outstanding amount on the Margin Loan by checking your/your client's Portfolio on the web. Navigate to Holdings and under the account the Margin Loan will be represented by the Liabilities amount.
What is required to close a margin lending account?
To close a Margin Lending account, Netwealth require signed instructions from the ML. To close the account, Netwealth require signed instructions for a WRAP withdrawal/WRAP closure to be processed.
Can I have a Margin Lending account with a Super Product?
Unfortunately Netwealth do not allow Margin Lending accounts within the Super Product.
How do you release an account from a margin lender? Do I retain the account or am I given a new account number?
To remove the ML from the Netwealth account, Netwealth require signed instructions from the ML to confirm the ML can be removed from the WRAP account. The client will retain the account and no details will be changed. We will simply remove the ML's details from the account.
Can I transfer the account to another margin lender on file?
In order to transfer from one ML to another, Netwealth require a signed Australian Standard Transfer Form (ASTF). The releasing ML will need to be the 'Seller' and the new ML will be the 'Buyer'.
Can I update my personal details online or does the margin lender have to sign the change of details form?
Yes you can update your/your client's personal details on a Netwealth account without ML approval.
What sort of access do I/my client have online with a margin lending account?
You/your client can have browse or transact access, however, you/your client will be prompted for ML approval for certain tasks (for example, investing into non-approved ML assets, updating Regular Savings Plan or processing a withdrawal).