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What are the differences between the custody and non-custody asset review process?

Netwealth can now hold assets non-custodially. This feature is available to Wealth Accelerator Plus accounts only. This article details the process of getting an asset reviewed, and if it can not be held custodially on the Netwealth platform, the process taken to add it non-custodially.

Step 1: 

The first option is to check if the fund is available online currently via compare funds. To do this, login to the Netwealth online portal and navigate to Research > Compare Funds & Models, from this page you can search for the fund. You can also find the Compare Funds & Models tool without logging in on the website here.

 

Step 2: 

If you cannot locate the fund in the Compare Funds & Models section, please email your Training and Relationship Manager and State Manager/Distribution Manager, and from there the asset can be checked within the global/private menu to see if it has been previously approved. If the asset is on this menu, you will be able to access it through your licensee code using the first template attached below titled, 'Addition of Managed Funds to Dealer/Adviser AMFM'. The template email can then be sent from a user with full transaction access, or the full transaction user needs to be cc'd in the email. To find out if you have full transact access, please read the article here.

Step 3:

If the asset is not on the global/private menu Netwealth will come back to you with two options: 

Option A -The asset has previously been reviewed and has been rejected from being held custodially

In this scenario, Netwealth will investigate whether the asset can be held non-custodially.

Option B - Asset has not been previously reviewed and Netwealth can commence a review to assess whether it can be held custodially

In addition to the excel template "Asset Review Template" attached below, please also provide Netwealth with a copy of the relevant PDS/IM documents and email them to assetadministration@netwealth.com.au, please cc in the full access user again if you do not hold full transact access. A review of a standard PDS fund can take up to 2-4 weeks to be reviewed and an IM fund can take up to 3 months to be reviewed.

Step 4:

Netwealth have reviewed this new fund and it has been declined. As with option A noted above, Netwealth would then proceed with an investigation to see whether the asset can be held non-custodially, and the asset will not be in-specied onto the platform. At this stage Netwealth will let you know the outcome and will proceed with the non-custodial solution below.

 

Multi Asset Portfolio Services (MAPS) - non-custodial assets

Once all of the above has been done and the outcome is that the fund needs to be held in MAPS, Netwealth require the below:

  1. The attached Limited Power of Attorney (LPOA) per account - The LPOA is part of the Wealth Accelerator Plus application booklet for those new clients that want to utilise MAPS. For existing clients, it can be found online in the Wealth Accelerator forms section. The original LPOA needs to be posted to Netwealth at Netwealth Wealth Accelerator Multi-Asset Portfolio Service 'MAPS' - PO Box 336, South Melbourne, VIC, 3205.
  2. Investment Holding statement - This is needed for each asset you want Netwealth to manage under the non-custodial solution. This does not have to be original and can either be mailed with the original LPOA or emailed to maps@netwealth.com.au.
  3. Certified copy of the ID - This needs to be certified within the last 12 months. This does not have to be original and can either be mailed with the original LPOA or emailed to maps@netwealth.com.au.
  4. Adjusted cost base (parcel level)(CSV format if document uploading, excel is accepted via email) - Netwealth will require adjusted cost base information for all non-custodial assets. This is best provided with the MAPS LPOA. Netwealth require adjusted cost base information as this enables Netwealth to provide accurate tax statements at the end of each financial year and apply an accurate number of currently held units and the value of these units with the accounts tax preferences. This will also take into consideration taxations such as AMIT/MIT occurrences in the past before the asset is transferred to Netwealth if applicable.

Once all the above is obtained, Netwealth will liaise with the fund manager to ensure all information flows through to Netwealth. Netwealth does this by changing the mailing address and bank account to the applicable Netwealth details. As such, Netwealth will receive all paperwork and income, which allows Netwealth to include off platform assets in all reports and annual audited tax statements.

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