Close a Wrap account for your client

Before you submit a closure form to close your client's wrap account, you’ll need to consider the action you would like to take with the cash and any assets held in the account.

Options for assets when closing an account

For Investment Wrap (not including Investment Accumulators) accounts, your options include:

1. Selling the assets to cash, and/or
2. Transferring the assets out of the account.

For super, pension and Investment Accumulator accounts, all assets will need to be sold to cash as we’re unable to facilitate a transfer of the assets out of the account.
 

Options for cash when closing an account

Once you’ve decided on what action to take with any assets, you’ll need to decide what action to take with the cash component of the account.  

To close a super or pension account via rollover to another platform, please initiate this via the external super platform once all assets are sold to cash.

For all other scenarios, please send us a completed and signed request. Product-specific requirements for account closure can be found in the below articles:

• Close Investor Directed Portfolio Service (IDPS) account
• Close a Term Deposit for your client
• Closing a Super or Pension account.

Securities

Securities can be sold via Adviser Online - see How to trade using Adviser Online.
 

Managed funds (daily priced)

Managed funds (daily priced) can be sold via Adviser Online – see How to trade using Adviser Online.
 

Non-daily priced funds (NDPF)

Non-daily pricing funds (NDPF) process orders on their own schedule. An NDPF may take over 30 days to settle. Please check the Non-Daily Priced Fund schedule for redemption timeframes.

Managed funds (non-daily priced) can be sold via Adviser Online see How to trade using Adviser Online.
 

Separately managed account (SMA)

Separately managed accounts (SMA) can be sold via Adviser Online - see How to trade using Adviser Online.

• The underlying assets within an SMA are dependent on the SMA in which your client is invested.
• The underlying assets of the SMA determine the timeframe in which an SMA can be sold to cash.
• Where there are multiple asset types with varying redemption timeframes, selling down an SMA can be an extended process as it is dependent on each of the underlying assets being sold and settling to cash before the SMA can be closed.
   

Illiquid (delisted/suspended/frozen) assets

Where your clients hold illiquid (delisted/suspended/frozen) investments, won’t be able to action the full closure of your client’s account until the illiquid investments are either redeemed or transferred.

Some illiquid assets can be transferred while others are non-transferable. For more information around the transfer of illiquid assets, refer to Transfer Suspended, Delisted or Terminating assets.

Asset transferable: If your asset is transferrable, you’ll need to provide the appropriate documentation to support the transfer request.

Asset non-transferable: If we’ve received a valid closure request and your client holds an illiquid, non-transferable asset, we’ll:

Please note that we’ll only apply this process where the above two conditions have been met, and no other assets remain in the account (except for other illiquid, non-transferable assets).

It’s the responsibility of the adviser to monitor any changes to the liquidity of the asset.

• If the asset becomes liquid, a sell request will need to be initiated by the adviser.
• If the asset becomes transferable, supporting documentation will need to be provided to process the transfer.

You can transfer assets out of IDPS accounts only. This isn't available for super, pension or Investment Accumulator. For more information on how to process this request type, refer to our Asset transfers hub.

Your client may have an outstanding dividend or distribution entitlement for an asset held in their account. This can include:

• listed securities
• managed investments
• part of an underlying holding in a separately managed account (SMA).

Your client’s account must remain open to receive any outstanding dividends.

You’ll also need to ensure that dividend reinvestment plans are set to ‘cash’ for any remaining assets to ensure the account doesn’t reinvest as units.

Automated plans, such as automatic cash management, dollar cost averaging and automatic re-balancing, should be switched off before you submit an account closure request. This helps to prevent unintentional purchases of additional holdings where the plan could still run while we’re processing the account closure instruction.

For more information on automatic plans, please refer to Automated payment plans.

Your client may hold a term deposit that hasn’t matured. Before submitting a closure request, please ensure your client’s Term Deposit maturity election is set to Cash Out.

If you wish to break a term deposit before maturity, you need to request this in writing and accept the penalties to proceed.

For more information around breaking term deposits, please refer to Close a Term Deposit for your client

You can check if there are any outstanding corporate actions on your client’s account by accessing the Corporate Actions Calendar.

If your client wants to claim a tax deduction on personal contributions, or vary a previous deduction, it’s important they submit a Deduction Notice before closing the account, as they won’t be able to do this once the account is closed.