Contra trading describes the sale and purchase of Australian
listed securities on the same day. The sale proceeds will be used
to cover the costs of the Australian listed securities purchased
on the same day. Contra trading is only available offline through
an eligible external broker. That is, your adviser (on your behalf)
is unable to do this online. When there are insufficient funds after
offsetting sales and purchases, we will draw the shortfall from
your Wrap Cash Account. Contra trading may also give rise to a
CGT event. Please refer to your adviser for further details.
We refer to corporate actions as any event that brings material
change to a company and affects its stakeholders such as
shareholders. Typically, corporate actions relate to shares in
companies and interests in some managed investments. These
may affect the capital structure of the security, or the number
or type of securities held on your behalf. These types of actions
can be mandatory, such as share reconstructions, or voluntary,
such as entitlement offers and share purchase plans.
We will generally seek instructions from you on your preferred
course of action for a corporate action. We may refuse to act
on your instructions if to do so would result in the acquisition of
an asset not on the Investment Menu or where inconsistent with
our other duties under the law (for example, if the governing
documents of the service or the general law forbids it).
Where it is available, we will endeavour to provide relevant
information to your adviser about corporate actions impacting
your account through the corporate actions calendar, viewable
by your adviser online. Your adviser must use the corporate
actions calendar to check for any corporate action information
that may be relevant to your account or require your action.
When a corporate action occurs and we ask you for
instructions, we must be given those instructions at least three
Business Days prior to the published closing date of the action
(the cut-off date), unless we specify otherwise. For the issuance
of new securities, we must generally be given instructions eight
Business Days prior to the published close date.
The online instruction is final and no changes are able to be
made to this instruction. By submitting the online instruction you
and your financial adviser confirm you have read and understood
all documents issued in relation to the corporate action.
If a corporate action requires payment, you must ensure your
Wrap Cash Account has sufficient funds to complete the
transaction. If you do not have sufficient cleared funds available
in the Wrap Cash Account at the time your instructions are
received by us and retain sufficient cleared funds in your Wrap
Cash Account until such time as we process the relevant
transaction, the transaction will not be processed and we have
no liability in relation to the corporate action.
Where notice is received after the applicable cut-off date, or
you have insufficient funds available at the time of processing,
you may not be able to participate in the corporate action, and
we are not liable to you for any potential loss of opportunity
arising in those circumstances.
If you do not have an adviser, you are responsible for
monitoring upcoming corporate action events. If you would
like to participate, you must contact us at least eight Business
Days before the published closing date of the action.
Generally, you will not be able to vote at shareholder meetings
or participate in bonus share plans (offered on some securities,
enabling security holders to elect to receive fully paid bonus
shares instead of cash dividends) on investments held in
In certain circumstances, we may take a variety of actions
to remove or avoid taking assets which do not fit within the
investment options or strategies that we offer. These actions
might include not processing a corporate action, disposing of
an asset before or after the corporate action and transferring
the asset to be held directly by you.
Convertible financial products and physical
settlement of underlying assets
Some financial products are ‘convertible’ in that they change
into, or are replaced by, a different ‘underlying’ financial
product. Where the underlying assets of an investment you
hold cannot be administered on the platform, the conversion of
the investment into the underlying asset will not be allowed or
the new asset will need to be transferred out of the account.
International listed securities
All international listed securities trading is conducted online
by the Authorised Broker through your adviser. Investors
that choose to invest in these securities may be required to
complete additional forms, as required by the laws of the
foreign jurisdiction, to avoid additional tax being levied on
income derived from these investments. Where required, you
will be asked to provide these forms before any trades in these
securities can proceed.
Trading of international listed securities are generally
conducted on the basis that it is an ‘At Limit’ order.
‘At Market’ orders are able to be submitted where the
international exchange is able to support them. Where ‘At
Market’ orders are not supported, the order will be converted
to an ‘At Limit’ order opposite best price.
Please note: when buying and selling international
listed securities, the expiration date will always be
today only. Unfilled or partially filled orders will expire by
the end of the foreign exchange trading day.
Partially completed orders
If an ‘At Market’ order is only partially filled, the remainder of
the order will be amended to an ‘At Limit’ order, with the limit
being the market price at which the partial execution was
completed. Your adviser must monitor the order to ensure the
market price does not move outside of the limit or they must
amend their initial ‘At Market’ order online.
Odd lot orders
An odd lot is an order amount for a security that is outside
the normal unit of trading for that security. Some exchanges
do not support the trading of odd lots. If an odd lot purchase
of units in an international listed security is placed on such
an exchange the order will automatically round-off to the
nearest normal unit of trading for that security. Through certain
corporate actions, additional units of a security can be allotted
to an existing security holding leading to an odd lot holding.
If a sale order of the odd lot is placed, we will endeavour to
work with the broker to conduct the trade, however, there may
be additional costs and/or delays to the settlement of the odd
lot holding. Where there are additional costs incurred, these
will be reflected in the trade price.