Investment Loan FAQs



What types of Investment Loans do you offer?

We offer two types of Investment Loans with slightly different features to suit different investor needs:

  • One with a 10% buffer and features aimed at investors predominantly investing into Managed Funds; and
  • One with a 5% buffer and features aimed at investors predominantly investing into direct listed equities.

There are also other different product features such as LVRs and margin call clearance time which can be viewed on either the Accepted ASX Listed Equities list or Accepted Managed Fund list.


What securities do you lend against?

We have a comprehensive accepted securities list with over 500 ASX Listed Securities, 2,000 Managed Funds and 80 Investment Platforms. Each accepted security has a lending ratio which indicates the maximum we can lend against. Our lending ratios are generally between 40% up to 80% depending on the investment loan type.


What types of Investment Loan do you offer?

We offer two types of Investment Loan with slightly different features to suit different investor needs:

  • One with a 10% buffer and features aimed at investors predominantly investing into Managed Funds; and
  • One with a 5% buffer and features aimed at investors predominantly investing into direct listed equities.

How much can my clients borrow?

The maximum amount your clients can borrow depends on:

  • How much money they have to invest and the value of the assets they provide as security
  • Which shares or managed funds your clients invest in, as we lend different amount for different types of investments.
  • The Borrowing Limit for each accepted security is set out in our Accepted Securities List. Borrowing Limits, which we determine, may change from time to time at our discretion.

What is a Margin Call?

A Margin Call occurs when:

  • A client’s current Loan to Value Ratio (LVR) exceeds the Margin Call LVR; or
  • A client’s current LVR exceeds the Maximum Gearing Ratio

A Margin Call can occur when:

  • The loan value increases due to withdrawals or interest capitalisation;
  • The market value of your client’s portfolio falls;
  • We reduce the LVR of an investment securing a client’s investment loan; or
  • We reduce the Buffer amount.

What actions does CommSec Adviser Services take in the event of a Margin Call?

  • We will take reasonable steps to notify you and your affected client(s) by SMS, email or phone. You must ensure you are contactable at all times in the event of a Margin Call and keep us informed of any changes to your contact details or your clients'.
  • Your clients' gearing levels must be adjusted within the timeframes stipulated in the Terms & Conditions so that it is below the lower of:
    • The Base LVR; and
    • The Maximum Gearing Ratio

How do my clients resolve a Margin Call?

If a Margin Call is triggered on a client’s account, the following resolutions are available:

  • Reduce loan balance by depositing money into the investment loan;
  • Add accepted shares or managed funds to increase portfolio value; or
  • Sell a sufficient amount of the portfolio to reduce loan balance and gearing level

What are the risks?

All investments are subject to risk. This means that your clients may lose money on their investments or fail to meet their financial objectives.

The key risks of an Investment Loan include:

  • Adverse market conditions may result in portfolio value being reduced and subsequently gearing level may increase, triggering a Margin Call.
  • We may reduce or remove the LVR applied to some or all of your clients' investments, or their portfolio as a whole at any time, which may result in a Margin Call.
  • The variable interest rate may increase resulting in higher interest costs, which may exceed the portfolio’s return.
  • Margin Calls may require investments to be sold by you or us quickly at unfavourable prices and may trigger unwanted capital gains or losses if your client is unprepared.
  • Tax legislations or marginal tax rates may change and have an adverse impact on the client’s tax position.
  • The loss of any assets (including property) if they have been mortgaged as security or to provide security to the Investment Loan.
  • Default events or enforcement events (as defined in the Terms & Conditions) occurring. The consequences of such an event occurring include all amounts owing becoming immediately payable. Default events include a materially-adverse change to your client’s financial position, or to the financial position of any Guarantor or Mortgagor; and/or where all the All Ordinaries Index falls by 10% or more in any one trading day or by 20% or more over any three consecutive trading days
  • The client’s financial situation may materially change, adversely affecting their investment loan.
  • Adverse market and/or security specific conditions may result in the value of their security being insufficient to repay their loan.

For general information on the risks involved, visit www.moneysmart.gov.au/investing/borrowing-to-invest.


How can my clients manage the risks of an investment loan?

There are a number of things you can do to reduce the risks associated with an investment loan. They include:

  • Don’t borrow to the maximum permitted gearing level (i.e. the Base LVR)
  • Diversification may help to smooth out volatility, making a margin call less likely. When you spread your portfolio across different companies and sectors, a fall in the value of one investment may be offset by a rise in the value of another.
  • Reinvest distributions and dividends into your investment loan which can lower your gearing level.
  • Pay your interest costs instead of capitalising them as it increases your loan balance and gearing level.
  • Don’t rely on investment income to cover your interest costs
  • Ensure you have sufficient cash flow - Work out your interest payments and other costs in advance. Remember that interest rates may rise or you may be required to meet a margin call within short timeframes.
  • Monitor your investments:
    Regularly monitor the market and your margin loan, and be prepared to adjust your strategy when the market outlook is less positive. Your account information is available anytime online. If your account is in buffer, use the time to be proactive and avoid a margin call

How can I update my clients' personal details?

Simply complete the Investment Loan Change of Personal Details Form and return to us by:

Email (preferred): investmentlending@cba.com.au

Post:
CommSec Adviser Services
Locked Bag 34
Australia Square NSW 1214

We will process the request within approximately 48 to 72 hours of receipt.


How long does it take to process redemptions, reinvestments, and investment switches for clients?

We process your client’s redemption within 5 business days of receipt. Please allow at least 10 business days to complete the instructions, once authorised by our office.

Processing time varies depending on each Fund Manager's service level of agreement.


How do my clients repay or close their Investment Loans?

Simply have your clients complete the Investment Loan Closure and Repayment Form and return to us via:

Email (preferred): investmentlending@cba.com.au

Post:
CommSec Adviser Services
Locked Bag 34
Australia Square NSW 1214

We will process the request within approximately 48 to 72 hours of receipt.


This information was prepared by CommSec Adviser Services, a brand of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945, administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 80 067 254 399 AFSL 238614, a Participant of the ASX Group and Chi-X Australia. Only investors who fully understand the risks associated with gearing into investments should apply. Applications are subject to credit approval. Fees and charges apply. Please consider the Product Disclosure Statement (PDS) and Terms and Conditions, issued by the Bank before making any decision about the product.

CALIA+ FAQs



General

What has happened to Colonial Geared Investments?

CommSec Adviser Services brings together and enhances the unique strengths of the Core Equity Services and Colonial Geared investments businesses. We have brought the two parts of our business together under the one name to further integrate our offering and open up new and exciting opportunities to better service your needs.

CALIA+ Application

If a borrower already has an existing Commonwealth Bank account can they convert this account to a CALIA+ sub-account and retain the BSB and account number?

Yes. Borrowers can convert an existing CBA account and retain the BSB and account number. Simply provide the account details in Section 4 of the loan application form. Existing salary crediting and direct debit arrangement will also continue.



If a CALIA+ facility is established in joint names can some sub-accounts be created in one name only?

Yes. Sub-accounts may be established in any combination of the joint borrower’s names. Where single named sub-accounts are established the other borrower will be required to provide a guarantee over this account.



Can CALIA+ Fixed Loans be progressively drawn down?

No. Fixed Loans are non-transactional accounts and must be fully drawn down at time of funding/settlement.



How do I find out whether a CALIA+ application has been approved?

We will inform the financial adviser of our credit decision by telephone or email and through our online service.



When will the CALIA+ offer documents be posted to the borrower?

The offer documents will be sent to the financial adviser after all necessary supporting documents have been received and verified by us and the facility has been approved. We will inform the financial adviser if any supporting documents are outstanding. Offer documents are generally despatched within 2-3 working days of approval.



What are the application fees and charges?

All fees and charges are detailed on the CALIA+ product page and in the CALIA+ offer document.



If the CALIA+ application involves the refinancing of a loan from another financial institution, does the borrower need to notify them?

Yes. Please check with the current lender to establish what they require to discharge an existing mortgage. Most financial institutions simply require their specific discharge authority form to be completed and signed by each borrower.



How long will it take to settle a CALIA+ facility if it involves a refinance from another financial institution?

Approximately 10-15 working days after all completed documents have been returned. Often the other financial institution(s) will require this lead-time to book and confirm a settlement date. Please note that this timeframe is dependent upon the other financial institution(s).



Do all CALIA + Applications require a Property Valuation?

You will be advised upon Credit Approval if a Property Valuation is required.

CALIA+ Post-Settlement

How often are CALIA+ statements sent to the borrower?

A consolidated account statement is sent every month.



How can my clients transact on their CALIA+ facility?

All clients can transact on their CALIA+ Variable sub-account via ATM, NetBank, EFTPOS, BPAY®, Telephone Banking, cheque book or at any Commonwealth Bank branch. Transactions on CALIA+ Fixed Loans are limited to the initial draw down and the final repayment. Transactions on CALIA+ Investment Loans can be conducted by contacting our Client Service team on 1800 252 351.



How can my clients make loan repayments on their CALIA+ Variable Line of Credit?

A loan repayment from a Commonwealth Bank account can be transferred into a CALIA+ Variable Line of Credit via NetBank, Telephone Banking, or using a Commonwealth Bank ATM. Cash or cheque repayments can be deposited directly into the CALIA+ Variable Line of Credit at any Commonwealth Bank branch.



Can the borrower nominate where the monthly interest charges for each CALIA+ sub-account is debited?

Yes. Monthly interest charges can be debited from any variable rate line of credit within the CALIA+ facility. CALIA+ Investment Loan interest charges may be capitalised or debited to any CALIA+ variable rate line of credit.



Is BPAY available on CALIA+?

Yes. Your clients can make payments using BPAY using NetBank or Telephone Banking.



How can my client obtain access to NetBank or Telephone Banking?

NetBank access can be obtained by completing Section 4 of the CALIA+ application form. If access was not requested as part of CALIA+ application, clients can register for this service online by clicking here or by calling 13 22 21 (24 hours 7 days a week).



Is a CALIA+ Investment Loan considered a sub-account and does it count towards the additional sub-account fee?

Yes. A CALIA+ Investment Loan is considered a CALIA+ sub-account and is included in the determination of any additional sub-account fee. The first three sub-accounts do not attract this fee, however each additional sub-account will be charged a monthly $8 additional sub-account fee.

Making changes to the CALIA+ facility

How do clients increase their CALIA+ Bundle Limit?

A New Application Form is required with the necessary supporting documents. This is to ensure the client’s current financial position is reflected and an accurate Credit Decision can be undertaken.



How do clients change their sub-account limits?

If the proposed change to the sub-account credit limits remain within the approved CALIA+ Bundle Limit, please email or write to us with the details of the required sub-account limit adjustments. A credit assessment is not required.



How do clients set up or change a periodic payment on a CALIA+ Variable Loan?

A periodic payment can be established or changed via NetBank. Alternatively, a client can establish or change a periodic payment by visiting a Commonwealth Bank branch or calling 13 22 21.



How do clients activate their CBA Keycards (ATM cards)?

Clients can activate a CBA Keycard by calling 13 22 21 (24 hours a day, 7 days a week).



How does a client notify you of changes to their personal details?

Clients should write to us at address: Locked Bag 34, Australia Square NSW 1214.

Important Information

BPAY is registered to BPAY Pty Ltd ABN 69 079 137 518

CALIA+ is one of the products available under the CommSec Adviser Services brand, and is provided by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (‘Bank’). The Bank’s wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814, a Participant of the ASX Group and Chi-X Australia, only administers the Investment Loan Sub-accounts within CALIA+. Applications are subject to credit approval. Fees and charges apply.

Portfolio Service FAQs


Can I settle trades made within Portfolio Service to a margin loan?

All trades placed through Portfolio Service must settle through the linked Accelerator Cash Account.

What is the difference between Portfolio Service and a Wrap platform (e.g. FirstWrap)?

Portfolio Service and Wrap platforms are both administration and reporting solutions which allow advisers to manage their client's investments in one place efficiently.

Both solutions offer clients and their advisers’ access to a wide range of investments options. Within a Wrap platform, assets are held in ‘custody’ for the client, meaning they are held in the name of the custodian rather than the individual. Within Portfolio Service, assets are both directly held in the name of the client (listed securities, cash) and held in custody (managed funds, term deposits managed accounts1).

How does Portfolio Service compare in fees to other platforms?

Portfolio Service has a price which is very competitive for the industry. Portfolio Service offers a flat fee structure for the administration fee, while majority of leading platforms offer basis point fee structures.

Does the 20% administration fee discount for grouped families apply to the first Portfolio Service account or only to every additional account?

The 20% fee discount is for every additional account within a client file, prorated across all accounts in the client file. Below is an example:

Fee discount

Can we transition existing managed funds into Portfolio Services from another platform?

Yes, managed funds which are on the Investment Menu can be transitioned into the service without selling the underlying asset. Managed funds within Portfolio Service are held in custody through a Managed Investments Account with your client as the beneficial owner.

Can my client or only myself as the adviser complete trades?

Portfolio Service is an advised offer and therefore only advisers can execute trades.

Can I add other assets to the customer reports manually (e.g. properties, term deposits from other institutions, etc.)?

Yes, this can be completed via the Manual Registry once your client’s account has been created.

What data feeds are supported?

The following data feeds can integrate with Portfolio Service:

  • IRESS XPLAN
  • CLASS
  • BGL
  • PlatformPlus
  • COIN
  •  

Managed Accounts FAQs



What is the investment universe for the CommSec Managed Accounts?

The portfolios consist of ASX 200 companies.

How do I set up a Managed Account?

We can help direct you to the right request form for each investment platform you intend to use. Please contact our team on 1800 252 351 or email us at commsecadviserservices@cba.com.au.

Who makes the investment decisions?

The Investment Committee with the CommSec Investment Management Team is responsible for all investment decisions. Our experienced team continuously monitors each Managed Account, makes changes as necessary, utilising primary research from the CIM Team with the support of external research.

How are corporate actions handled?

The CommSec Investment Management Team makes all the decisions regarding the corporate actions, with decisions based on the benefits to the accounts themselves.

Can I make additional investments into a Managed Account?

Your clients can make additional investments into the Managed Account from funds held in their nominated bank account.

Can I make withdrawals from a Managed Account?

Your clients can withdraw from the Managed Account using the appropriate platform’s process.

Is there a Cash component in the Managed Account?

Yes, there will always be a Cash component reflected in the Managed Account. The Cash component will range between 2% and 10% depending on the portfolio mandate. Holding Cash is to ensure corporate actions, stock replacements and portfolio rebalances can occur without the need to draw down additional funds.

How are franking credits treated?

Your clients will be accredited franking credits in the same way they receive them if they hold listed securities.

Is the performance of the Managed Account tracked?

The Investment Management Team monitors the performance of each Managed Account and provides regular performance reports that are under the Managed Account Resources tab.

What is the Investment Management Team's investment track-record?

All performance data is available on the CommSec Investment Management Team Managed Account reports. Please contact the team to gain access to these reports.

Model Portfolios FAQs



What are Model Portfolios?

Model Portfolios are indicative direct investment portfolios, tactically managed in line with a pre-defined investment strategy and mandate. Weightings within the portfolio are dynamic in nature, meaning that they evolve with the market and the underlying direction of each investment.

Are Model Portfolios available to Self-Managed Super Funds?

The CommSec Investment Management Team specialises in direct investment portfolio construction, with over 70% of all portfolios used within an SMSF structure. Model Portfolios cater for all clients and risk profiles within different stages of their investment lifecycle.

How are trades for Model Portfolios conducted?

You can either place trades online or ‘insource’ trades to us, where you benefit with our state of the art trading technology at no additional cost.

Can the Model Portfolios be managed online?

Yes, you can manage the portfolios online. You will receive the same access to view trade history and run reports, as you would with a regular trading account.

How is the performance of the Model Portfolios tracked?

CommSec Investment Management uses professional portfolio management tools to track portfolio characteristics and performance. The team issues monthly reports tracking performance, attribution statistics as well as underlying market, stock and portfolio commentary.

How often are changes made to the Model Portfolios?

The CommSec Investment Management Team aims to keep portfolio turnover to a minimum. There is a predefined turnover guide for each portfolio. However, there is no regular or predestined stock turnover or rebalancing cycle. This approach gives us the flexibility to ensure stock and sector allocations are appropriate, in-line with the portfolio parameters and underlying market conditions.

What is the investment philosophy and process?

For a copy of the comprehensive investment guide, please contact the CommSec Investment Management Team on 1800 252 351 (8:30 am-5:30 pm Monday to Friday).

How will I be notified of changes to the Model Portfolios?

You will receive daily market updates and stock or asset-specific market-sensitive announcements as they happen. Notifications will occur immediately if the Investment Team changes a stock or asset within the portfolio. These notifications are additional to the monthly performance reports.

What happens if I cannot make the suggested changes to the Model Portfolios immediately?

Model Portfolios, while being prescriptive in nature, are primarily designed to provide you with a guide, or process to manage your clients’ direct investments.

If your client falls outside of the Model Portfolio for a short period, it means your client could experience a tracking error when compared to our reported performance. However, given the nature of stock markets, it is important to note that any tracking error will not always work for your client. By providing SOA, advice, various trading tools and transaction calculators, we can help you ensure changes to portfolios are made promptly, either in bulk or at a client-by-client level.

Is there a Cash component within the Model Portfolios?

Yes, there will always be a Cash component reflected in the Model Portfolios. The Cash component will range between 2% and 10% depending on the portfolio mandate. Holding Cash is to ensure corporate actions, stock replacements and portfolio rebalances can occur without the need to draw down additional funds.

Linking the Commonwealth Bank Accelerator Cash Account allows you to access automatic dividend redirection for all distributions related to the model. We notify share registries for each trade.

Are the Model Portfolios managed for tax optimisation?

Individual tax outcomes or capital account implications are not factored into the investment process unless specifically outlined in the mandate of the portfolio.

What if my client has existing holdings and would like to transition into a Model Portfolio?

Our CommSec Investment Management Team can assist you in the process of transition by preparing a comprehensive transition report with SOA template wording, transaction summary and associated independent research. The Investment Management Team can also construct a Bespoke Portfolio for your clients who do not suit a Model Portfolio for an additional cost.

How much does the Model Portfolios service cost?

To suit the changing needs of your advice business, you can choose to subscribe to our Model Portfolios based on your number of clients who require the service.

Please contact your CommSec Adviser Services BDM or the Investment Management Team for more information on our competitive pricing alternatives and rates.

How many Model Portfolios does CommSec Investment Management issue?

At this stage, we offer a range of objective-based Model Portfolios:

  • Income
  • Balanced
  • Growth
  • ETF
  • Bespoke Model Portfolios

 

What are the services offered with Model Portfolios?

  • Access to all Australian Equity and ETF Model Portfolios
  • Comprehensive research, basis of advice support and template SOA wording
  • Monthly Model Portfolio reports include portfolio holdings, investment performance, sector allocation and market and stock commentary
  • Daily CommSec Investment Management news bulletin
  • Ad hoc market sensitive information and RBA announcements
  • Premium access to the CommSec Adviser Services Trading Platform (live pricing) including multi-stock and multi-client trading
  • Phone, email and research support from the CommSec Investment Management Team
  • Full trade execution capability including bulk or algorithmic trading
  •  

How do I get started?

Contact the CommSec Investment Management Team on 1800 252 351 (8:30am-5:30 pm Monday to Friday).

This information is only for AFSL Advisers. As this information is not advice and is prepared without taking into account your client’s objectives, financial situation or needs you should, before acting on this information, consider its appropriateness for your client’s circumstances.

Trading FAQs



How does my client transfer existing Broker Sponsored holdings to CommSec Adviser Services?

Your client may elect to transfer all or part of their existing Broker Sponsored holdings from another broker by completing the CHESS Sponsorship and Broker to Broker Transfer Form.

Note: To avoid any delay in processing your client’s request, please tick the box authorising us to amend minor changes to the client’s Holder Identification Number (HIN) registration details in the event that there is a mismatch of registration details on Section 2 of the form (refer screen image below).

HIN

 

The completed form and a copy of the most recent Broker Sponsored Holding statement/s can be sent by:

Email (preferred): advisertrading@cba.com.au

Post:
CommSec Adviser Services
Locked Bag 3005
Australia Square NSW 1215

Your request will be completed within approximately 48 to 72 hours of receipt.


How does my client transfer shares held by another party to their share trading account?

Your client can transfer shares held by a different party or entity to their share trading account by completing either a:

(If transferring ownership of multiple stocks from one entity to another within the Ausiex Participant ID).

Please note the original signed form is required. Please sent to:

CommSec Adviser Services
Locked Bag 3005
Australia Square NSW 1215

Your request will be completed within approximately 48 to 72 hours of receipt.


How does my client complete a Standard Transfer Form for Off-Market Transactions?

Please see page two of the Standard Transfer Form for Off-Market Transactions for step-by-step guidelines on how to complete the form.


What can I trade for my client?

 

  • All ASX-listed securities
  • All warrants listed on the ASX (additional forms required to trade warrants and partially paid securities)
  • Exchange Trade Funds (ETFs)
  • Exchange Traded Commodities (ETCs)
  • Exchange Traded Options (ETOs - where an options account has been established)
  • Listed company-issued options
  • Listed unit trusts
  • Listed convertible notes
  • Renounceable rights
  • Listed fixed interest securities
  • Australian Government Bonds

 

All ASX-listed securities are tradeable through Chi-X Australia market.


How do I place a trade on behalf of my clients?

Once your client's trading account has been set up, there are several ways to place trades:

Online

We've made placing a share trade quick and easy by giving you the ability to place a trade in a number of different ways:

  • From the Quotes page, once you've located your desired security,
    click Buy or Sell.
  • From your Watchlist or Portfolio click on a stock to be taken to the Quotes Page.
    From there you can choose to Buy or Sell as described above.
  • On the main menu, navigate to Trading > Share Orders > Place Order.

To place an order you will first need to select a client. If you have not selected a client you will be redirected to the My Clients > Find Client Screen to select one. Once you have selected a client, to place an order from the Share Orders > Place Order page simply complete all fields marked with a red asterisk and follow the prompts. You can learn more about what information is required in each of the fields by hovering your mouse cursor over the question marks to the left of each field.

Place_order

Phone
  • Step 1: Please contact us
  • Step 2: You will be asked to provide your client's name and trading account details to verify them.
  • Step 3: You will be asked to provide your adviser code and Dealer Group name as part of our verification process. In some instances you may be required to provide more information.
  • Step 4: Once the details of your order have been confirmed, we will endeavour to place the order in the market.

Confirmation notes will be sent to you and your client via their preferred delivery method (email or paper confirmation notes) on the day the order is executed.


Do you offer discounted client brokerage?

Yes, we have Brokerage Bundles available for your clients who link their trading account to one or more of their existing or new Accelerator Cash Accounts, Investment Loans or Portfolio Services accounts. For more details, please see our Bundled Pricing offering.


What is required when changing from an individual or joint trustee to a corporate trustee?

  • An email from the adviser to notify about the change of trustees
  • A Share Trading Application to be completed by the new trustee
  • A Deed of Variation or completed IFSA form to confirm the new trustees
  • Completed OMT is required to transfer the stock from the old to the new account
  • Confirmation via email from the adviser to close the old account once the stock has been transferred

 


What are the trading times?

Australian Securities Exchange

Shares, Bonds, Hybrid Securities, Exchange-traded products, Managed Funds, Warrants and Structure Products

The Australian Securities Exchange (ASX) opening takes place at 10:00am (AEST) and lasts for about 10 minutes. Securities open in five groups, according to the starting letter of their ASX code, but reserve the right to vary these times:

  • A-B 10:00:00am +/- 15 secs
  • C-F 10:02:15am +/- 15 secs
  • G-M 10:04:30am +/- 15 secs
  • N-R 10:06:45am +/- 15 secs
  • S-Z 10:09:00am +/- 15 secs

The market is placed in a pre-closing phase between at 4:00pm and 4:10pm (AEST). Trading stops and brokers enter, change and cancel orders in preparation for the market closing.

The Closing Single Price Auction takes place at a random time between 4:10pm and 4:12pm (AEST). ASX calculates closing prices during this phase.

Exchange Traded Options and Index Options

Market trading hours for both exchange traded options and index options are from 10am to 4:20pm (AEST).

Chi-X Australia

Chi-X Australia market continuous trading occurs from 10:00 – 4:12pm (AEST) where:

  • Participants may enter orders into the Chi-X market
  • Orders are matched in accordance with the rules
  • Trade reports may be lodged in accordance with the Market Integrity Rules

The Chi-X Australia market opening at 10:00am is a standing start for all Chi-X quoted securities. This means some securities will be available for trading on Chi-X before they are open for trading on ASX.

Please note that unlike the ASX, Chi-X Australia does not operate an opening and closing auction.

 


Can I place single and multi-stock trades for my clients?

Yes. You can place single stock, multi-client orders and multi-stock, single client orders through our trading platform.

Placing a single stock or multi-client order

There are two ways to access the 'Single Stock, Multi-Client' order pad:

  1. From the My Clients > Find Client page; and
  2. By clicking on Trading in the top menu and selecting Single Stock, Multi-Client

When starting from the My Clients > Find Client page, tick the boxes to the left of each client record to select the clients you wish to place a trade for and click Place Multi-Client Order.

Step 1. Set Up

Complete the order details in first section of the page as you would for a single order and select Apply Instructions to apply them to each client.

Amend the order details for individual client if required and click Proceed to review before placing order.

Step 2. Review

Review your Buy or Sell order then confirm your approval by entering your trading password and clicking Submit.

Step 3. Confirmation

You will now receive a confirmation of your order.

Single_stock_multi_client
Placing a multi-stock trade

There are several ways to place a Multi-Stock trade for a client:

1. To Buy new stocks for a client, use the Multi-Stock, Single Client order pad from Trading in the top menu; and

2. To Buy or Sell stocks a client currently holds, use the Holdings page (Client Portfolio > Holdings).

3. Buy multiple stocks for a client directly from your watchlists.

Step 1. Setup

Within the 'Setup' screen, simply type in the stock code or description of each stock and select Add to Order.

Select the relevant brokerage option for this client and click Proceed.

Step 2. Review

Review your Buy or Sell order then confirm your approval by entering your trading password and clicking Submit.

Step 3. Confirmation

You will now receive a confirmation of your order.

Multi_stock_single_client

For more information please see our Multi Line Order Functionality online demo.


Can I sell issuer sponsored shares on behalf of my client without a trading account?

Yes, we have a One Off Trade service available to you when you wish to sell issuer sponsored shares on behalf of your clients. To use this service your clients must either be an existing CommSec Adviser Services, CommSec or Commonwealth Bank customer. Please refer to the table below for more information on eligibility requirements.

One Off Trade service eligibility requirements
Individual and Joint Shareholdings
  • All clients must have an existing CommSec Adviser Services, CommSec or Commonwealth Bank account. For Joint Shareholdings, all clients must hold one of these accounts.
  • The personal information included on the One Off Trade form for each client must match what is recorded on their existing accounts.
Company and Trust Shareholdings
  • The company/trust must have an existing account with CommSec Adviser Services, CommSec or Commonwealth Bank.
  • Information provided on the One Off Trade form such as company/trust name, address and contact details must match what is recorded on the existing accounts.
  • The person requesting the One Off Trade must be a signatory to an existing account of the company/trust.
Deceased Estate Shareholdings
  • The executor(s) of the estate must have an existing CommSec Adviser Services, CommSec or Commonwealth Bank account.

If your clients do not meet the criteria of an existing customer, a CommSec Adviser Services trading account will need to be established in the same name as the shares before the holdings can be sold. The easiest way to setup a new trading account for your client is to complete the online application form. Alternatively, you can complete a paper application form. Please allow time for postage, application processing and any requests for additional information (if applicable)


T+2 Settlement
Why the change?

A shorter settlement cycle means your clients will have quicker access to their money after selling shares and earlier delivery of shares after purchasing. It will also keep Australia aligned with leading settlement practices around the world such as Europe and Hong Kong, with the United States following suit in 2017.


What happens if my clients don't have sufficient cleared funds in their settlement account on the settlement day?

Please ensure your clients are able to meet their settlement obligations prior to placing trades. Failure to provide cleared funds on the settlement day will result in failed settlement and incur penalty fees plus fail fees outlined in our Financial Services Guide.

Which products and services are impacted?

The changes apply to Australian shares, government bonds, interest rate securities, Exchange Traded Funds (ETFs), and warrants traded on the ASX and Chi-X.

The settlement period for international shares, Contracts for Difference (CFDs), and Exchange Traded Options (ETOs) will not change.

Are there any impacts on Exchange Traded Options (ETOs)?

ETOs will continue to settle on T+1. However, if the exercise/assignment results in an Australian share trade, settlement will take place on T+2. In the event that your clients are short stock, they will need to buy back the stock by 2pm (Sydney time) on the day of the exercise/assignment. Please ensure your clients have sufficient cleared funds in their settlement account by the relevant settlement day.


How are corporate actions impacted by the change such as dividends?

In conjunction with the shortening of ASX trade settlement, the period between two important dates for Corporate Actions - ex date and record date will also reduce by one day.

For instance, ABC Company announces it will be paying a dividend to its shareholders. The date the company checks its share registry to determine who should be paid the dividend is known as the record date. Any shareholders on the company’s share register on this date will receive the dividend when it is paid. The ex dividend date, or ex date, is two business days before the record date. Anybody who wishes to buy the shares and receive the dividend must have purchased the shares before this ex date.

With the new settlement period, the ex date will change from two business days before the record date to one business day before the record date.


Can my clients pay by cheque?

Cheque payments for purchasing shares will still be accepted. However, it is important that your clients understand their settlement obligations outlined in our Share Trading Terms and Conditions when taking trading instructions. From 7 March 2016, the three day cheque clearance will fall outside the new ASX T+2 settlement period. To ensure your clients do not fail settlement and incur penalty fees plus fail fees, cheques must be deposited and cleared at least three business days prior to placing trades. Alternatively, they may elect to pay their trades via direct debit or BPAY payment.


What happens if my clients pay via BPAY?

Payments made via BPAY will need to be completed on the Trade Date to ensure available funds are ready on the morning of T+2.


What are the impacts to my clients if they settle trades via their Investment Loan?

Under the new T+2 settlement period, your clients’ loan balance will be updated one day earlier. Accordingly, your clients’ loan liability will be updated once the trades are executed.


What happens during the transition to T+2?

The last T+3 trade execution date will be Friday 4 March 2016. The first T+2 trade execution date will be Monday 7 March 2016. Trades executed on both these dates will settle on Wednesday 9 March 2016.


Are there any changes to the Contra policy?

Yes, the ability to offset trades on T+2 will be removed as under T+2 this will become the settlement day.

When calculating the settlement amount and the settlement date, it is important to consider the residual amount after the trades are offset. Where the second trade is a higher value, settlement will occur T+2 after the higher value trade is executed.


Where can I learn more about the ASX changes?

You can learn more about the ASX trade settlement changes on the ASX website or download the ASX settlement changes brochure.


The examples are for illustrative purposes only. The name and identifying features do not reflect any particular person; any resemblance to a real person is coincidental.

The presence of the stock mentioned should not be construed as a recommendation. No representation is given, warranty made or responsibility taken as to the appropriateness or performance of this stock.

The information in this website has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should consider its appropriateness, having regard to your objectives, financial situation and needs and, if necessary, seek appropriate professional advice. If a Product Disclosure Statement is available in relation to a particular financial product, you should obtain and consider that Product Disclosure Statement before making any decisions about whether to acquire the financial product. Any securities or prices used in the examples on this website are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance.

This site is directed and available to and for the benefit of Australian residents only. Share Trading and Portfolio Administration and Reporting are services provided by Australian Investment Exchange Ltd (AUSIEX) ABN 71 076 515 930 AFSL 241400, a Participant of the ASX Group and Chi-X Australia. AUSIEX is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia (CBA) ABN 48 123 123 124 AFSL and Australian credit Licence 234945. Lending products under the CommSec Adviser Services brand are provided by CBA. Investment Loans are administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited (CommSec) ABN 60 067 254 399 AFSL 238814, a participant of the ASX Group and Chi-X Australia.

Cash Management FAQs



What is a Cash Management Account (CMA)?

A Cash Management Account (CMA) is a bank account with features geared towards cash flow management. A CMA is designed to help you and your clients manage their financial position with ease. Acting as an investment hub, various cash flows including income from salary, dividends and superannuation are directed straight into the account. The available balance generates income through interest paid before being used to fund other investment opportunities as they arise. CMAs can also be used as settlement accounts for share trades.


Can I obtain an account number prior to my clients completing the ACA Application Form?

Yes, please contact us and one of our Service Team members will generate an account number for you.


Can I operate my clients' Accelerator Cash Accounts (ACAs) on their behalf?

Yes, your clients can give you the authority to operate their ACAs to:

  • Transfer funds
  • Request statement reprints
  • Retrieve account balances and transaction history via your third party planning software

How can I obtain authority to operate on my clients' ACAs?

For new accounts, simply complete the 'Adviser Authority to Operate' section of the Application Form with your client.

For existing accounts, you and your client need to complete the Adviser Authority to Operate Form.


What kind of funds transfers can be made to and from the ACA?

Account holders and those with authority to operate the account can transfer money to any other bank account held at CommBank or another financial institution.

ACAs can receive funds transfers from any other bank account.


How do I transfer funds on behalf of my clients?

In order to transfer funds on behalf of your clients, you must have authority to operate their ACA - see the How can I obtain authority to operate my clients' ACAs? FAQ above.

You can transfer up to $30,000 using our online transfer tool. Once logged in, navigate to Administration > Payments & Transfers > Funds Transfers. Select the account you want to transfer funds from and the transfer type then follow the prompts to complete the transaction. Note: you will need to ensure both your client’s email address and your mobile phone number are registered with us.

For transfers above $30,000 you will need to complete a Transfer Request Form. The form will need to be signed by all relevant account signatories.


How can my clients transfer funds from their ACA?

Clients with access to NetBank can transfer the funds through NetBank or via the CommBank app. Clients without access to NetBank will need to complete and return a Transfer Request Form. The form will need to be signed by all relevant account signatories.


How can I register my clients for NetBank access?

Simply email your clients' ACA details to us at advisercashteam@cba.com.au and we will send them an email with their NetBank Client Number and an SMS containing their temporary password (valid for 28 days).


Do my clients need to provide their Australian Business Number (ABN) and/or Tax File Number (TFN)?

Providing your clients' ABNs and/or TFNs is not compulsory however if you don't, tax may be withheld from their interest at the highest marginal tax rate plus Medicare levy.

The information in this website has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should consider its appropriateness, having regard to your objectives, financial situation and needs and, if necessary, seek appropriate professional advice. If a Product Disclosure Statement is available in relation to a particular financial product, you should obtain and consider that Product Disclosure Statement before making any decisions about whether to acquire the financial product. Any securities or prices used in the examples on this website are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance.

Issued by Commonwealth Bank of Australia ABN 48 123 123 124 Australian Financial Services Licence Number 234945. Ground Floor, Tower 1, 201 Sussex Street, Sydney, NSW, 2000. Accelerator Cash Account and Term Deposit are products of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 ('Bank') and are administrated by Australian Investment Exchange Ltd ABN 71 076 515 930 AFSL No. 241400 ('AUSIEX') under the CommSec Adviser Services brand. AUSIEX is a wholly owned but not guaranteed subsidiary of the Bank.