Netwealth Wealth Accelerator Changes
Notification of changes - 1 March 2020
Summary of changes
New IDPS guide available.
On 1 March 2020 Netwealth issued a new IDPS Guide for Wealth Accelerator (IDPS Guide).
Below is a summary of the key changes which may impact the way you use Wealth Accelerator. You should obtain and read the IDPS Guide for the full details. The IDPS Guide is available from the Forms and Documents section on our website or by contacting us.
The changes outlined below are all of the material changes that may impact on your existing Wealth Accelerator account. The IDPS Guide includes new information about how Wealth Accelerator works which may be relevant to you. However any other material change to the terms and conditions of Wealth Accelerator that are included in the IDPS Guide and are not mentioned in this notice will apply only to new accounts opened after 1 March 2020 and will not apply to your existing Wealth Accelerator account unless otherwise notified to you or agreed with you by us.
We have introduced new functionality:
We are making some changes to fees:
- Changes to the way we charge for Wealth Accelerator Plus
- A reduction to the international securities fee for holdings over $1 million
- A foreign currency holding fee
- The removal of upfront advice fees on future investments
We have provided some additional information in our IDPS Guide:
A new Premium Service for Wholesale Clients in Wealth Accelerator Plus
Account holders in Wealth Accelerator Plus who qualify and use the service as Wholesale Clients have access to additional investment options through the Premium Service.
Details of the Premium Service and how to qualify as a Wholesale Client are included in Netwealth Wrap Service Wrap Service Guide 2 Premium Service for Wholesale Clients which is available on our website or by contacting us. This Guide replaces the Wrap Service Guide 2: Wholesale Client Information Guide.
The Premium Service includes a premium asset fee of $50.00 per year for each wholesale managed fund and for each Australian bond held in your account. The premium asset fee is deducted annually from your cash account, following the end of the financial year to which it relates. The fee is applied for each wholesale managed fund and for each Australian bond you hold or have held in your account during the year.
If you withdraw your entire account balance and close your account, the premium asset fee will be deducted from your cash account before the proceeds are paid to you.
The premium asset fee will apply to existing investors from 1 July 2020 and replaces the unregistered scheme fee for Wholesale Clients, which will no longer apply from 1 July 2020.
Paying bills with BPAY®
We have introduced the BPAY facility for new and existing investors. BPAY allows you to pay certain bills from your cash account.
You are required to provide your mobile phone number for use in relation to BPAY. We may notify you of payments made using BPAY by sending a notification to the mobile phone number you provide.
You have the option to also allow your Adviser Representative to make payments on your behalf using BPAY. You can instruct us to give your Authorised Representative permission to use BPAY by logging into your account and changing your bank settings. You can also remove this permission at any time.
If you have previously given permission for your Adviser Representative to make payments using the pay anyone facility, your Adviser Representative will automatically be given permission to make payments using BPAY. You can see and change the permissions by logging into your account and changing your bank settings.
Accounts that require multiple signatures to transact (including joint, SMSF, trust and company accounts) do not have access to BPAY.
® Registered to BPAY Pty Ltd ABN 69 079 137 518.
Changes to the way we charge for Wealth Accelerator Plus
From 1 March 2020 the administration fee for new investors in Wealth Accelerator Plus has been replaced with a new account fee.
The new account fee will apply to existing Wealth Accelerator Plus accounts from 1 January 2021 and will be a reduction in fees for most clients. You can change your account to the new fee scale before 1 January 2021 if you wish.
The new account fee for Wealth Accelerator Plus accounts will apply based on a percentage of your account balance, plus a fixed amount. The account fee is subject to a minimum daily amount and is calculated as follows:
| Account balance | % applicable |
| $0 to $250,000 | 0.35% p.a. |
| $250,000 to $500,000 | 0.25% p.a. |
| $500,000 to $1,000,000 | 0.15% p.a. |
| $1,000,000 to $2,500,000 | 0.05 p.a. |
| Balance over $2,500,000 | Nil. |
The fixed amount is calculated daily at the rate of $240 per calendar year which applies to each Wealth Accelerator Plus account.
The minimum account fee is calculated daily, at the rate of $550 per calendar year and applies to each Wealth Accelerator Plus account.
If you wish to transfer your account to the new fee scale before 1 January 2021 or obtain more information about the impact of this change on your account, please contact your adviser or Netwealth.
You can find information about your existing account fee rates by logging onto your account and viewing your fee profile, or by contacting us. If you or your adviser have previously negotiated different fees to apply to your Netwealth account, the fees in this table may not apply to you.
There is no change to the administration fee for Wealth Accelerator Core.
[1] ® Registered to BPAY Pty Ltd ABN 69 079 137 518.
Changes to the international securities fee for Wealth Accelerator Plus
We have changed the way the Administration fee – international securities fee is calculated and introduced a tiered fee structure as set out below. This change results in a reduction in the amount of the fee for investors who hold over $1m in international securities.
| Value of international securities | % applicable |
| $0 to $1 million | 0.150% p.a. |
| $1 million to $2 million | 0.125% p.a. |
| $2 million to $3 million | 0.100% p.a. |
| Balance over $3 million | 0.050% p.a. |
The international securities fee is calculated daily and is deducted monthly in arrears from the cash account, or on full withdrawal from the account.
This change applies to all Wealth Accelerator Plus accounts effective from 9 January 2020.
Foreign currency holding fee for Wealth Accelerator Plus
Trading or holding international securities may result in us holding foreign currency on your behalf. Wholesale Clients may also hold foreign currencies through the Premium Service. Where we hold money in a foreign currency account on your behalf, we do not credit interest to that account. If we receive interest on money held in foreign currencies, any interest received is retained by us, as a foreign currency holding fee. This fee will apply to all Wealth Accelerator Plus accounts from 1 May 2020
Upfront advice fee on future investments
If you have nominated a financial adviser, you may agree with them to pay an upfront advice fee on investments made into your account.
From 1 March 2020 we will not accept a new standing instruction from you to pay an upfront advice fee on any subsequent investments or in relation to a regular savings plan.
Where you have previously provided an instruction to us to pay an upfront advice fee on any subsequent investments or in relation to a regular savings plan, this instruction will continue to apply until further notice. You can find information about your advice fees by logging onto your account and viewing your fee profile, or you can contact Netwealth. If you want to change your advice fees you should contact your adviser or Netwealth.
Change to the cash account and associated costs
The description of the cost identified as a “cash account fee” has been changed to “interest retained on the cash account” to better describe the nature of this cost to investors. There is no change to the way this cost is applied or the way it is calculated. This cost is not deducted from your account.
Additional information about privacy
We have updated the information about privacy in the IDPS Guide. You should read the privacy section of the IDPS Guide for more information about the information we collect from you, how we use that information and how you can access that information.
Additional information about how direct and indirect investments differ
We have updated the IDPS Guide with additional information about indirect investments.
Wealth Accelerator may provide access to certain managed funds and managed models that are not available to you as direct investments. In addition, certain investment options may only be available if you have a Nominated Financial Adviser who has arrangements with the product issuer to make the investment option available to their clients. These investment options may no longer be available to you if you withdraw from Wealth Accelerator.
You may also be adversely affected if you change your Nominated Financial Adviser or cease to have a Nominated Financial Adviser because such investment options may no longer be available to you, you may be required to redeem or withdraw from those investments and/or assets held in a managed account may cease to be managed in line with the chosen managed models. The disclosure document for the relevant investment option explains any such restrictions and your Nominated Financial Adviser will provide further information in this regard.
Additional information about user/third-party user risk
We have updated the information about risks in the IDPS Guide to include information about the risk of mistake by you or your Adviser Representative in operating your account or misuse of your account by other persons, including fraud or theft.
For more information about User/third-party user risk please refer to Wrap Service Guide 1a: Operating your Wealth Accelerator account available on our website or by contacting us.