Monday 11am, 30 March 2020
We are not accepting cheques
Due to most Netwealth staff working from home, potential delays in mailing service and the distancing rules being followed, we are:
- Not accepting the receipt of cheques
- Nor issuing cheques
We encourage you to make the switch to our online deposit and payment facilities, such as 'Pay anyone' EFT or BPAY® payments.
Updating client email and mobile records
During this time it is very important that your clients are getting the appropriate communications in a timely manner. To this end, please ensure your clients' details are up to date, especially their email and phone numbers by simply logging into the online adviser portal.
Pension limit and early super release
Minimum drawdown rates for income streams reduced by 50%
The Government has announced a 50% reduction of the minimum drawdown rates for account-based pensions. You can read more about it in our recent technical paper.
We can’t pre-empt which clients will want to immediately alter their payments, so Netwealth will manage this change as follows:
- Clients previously receiving minimum payments will continue to be paid that specific dollar amount (which effectively becomes their nominated payment amount).
- In the coming days, we’ll provide you with a list of clients previously receiving minimum payments - you can update the list with new payment details for each client (i.e. reduce payments to the new minimum, or cease payments for the remainder of the financial year) and return it to us as a bulk instruction.
- Instructions received by close of business on Wednesday 8 April will apply from the April 2020 payment cycle onwards.
Early release of super on compassionate grounds
The Federal Government has announced temporary changes to the early release of super conditions for individuals as part of its COVID-19 response. Under these new rules, eligible investors can lodge their application for early release of superannuation to the ATO via the myGov website. The ATO will provide release authorities to us progressively, and we’ll ensure payments are processed to clients as matter of a priority.
The Contact Centre is going remote and to the cloud
Over the past month our Contact Centre has been busily moving to a new cloud-based platform. We are pleased that it is about to go live in the coming days. The changes you should expect include:
- A resumption to our normal operating hours, that is 8:30am - 7:00pm AEDT Mon-Thur and 8:30am - 6:30pm AEDT Friday
- Emails you will receive from us are in a new template
- A FAQ help centre to provide quick information on regularly asked questions
Helping you work virtually
COVID-19 has changed the way we work and interact with clients in the space of a few short weeks. As many of us transition to working from home, conducting virtual meetings with clients and generally reducing the physical interaction we have with others, Netwealth have reviewed how we can assist you in an increasingly virtual world.
We will accept electronic signatures on most document types
It is important to note that digital signatures are accepted on the majority of Netwealth forms and documents, as long as you have uploaded it using the secure document upload facility in the online adviser portal.
Unfortunately, we require 'wet' signatures for a few forms, including when opening a Wealth Accelerator account for an individual (companies and regulated trusts are ok), in-specie transfer documents and where a certified signature needs to be present (normally for client identification).
Despite recent adverse equity markets, Netwealth Group remains in a very strong financial position, is debt-free and has significant cash at bank.
Our net inflows have continued to be very strong this quarter at $2.9bn and year to date $7.3bn.
While net inflows have been offset by the negative market movement of $3.9bn this quarter, our revenue and profitability remain resilient due to the increased volume in transactions and ancillary revenues. To view our recent ASX announcement click here.
It is important to note that Netwealth will absorb the RBA’s rate cut by 25bps concerning our client’s cash transaction account. Therefore transactional cash will not be going into negative as a result of last weeks RBA announcement.