Guide to Wrap term deposits

1. Log in to Adviser Online
2. Navigate to Interest rates on the landing page
3. Select Wrap
4. Select Wrap term deposits.

In December 2021, APRA released guidance on Prudential Standard APS 210 and Prudential Practice Guide APG 210 dealing with liquidity. This guidance provided further clarity around the liquidity treatment of deposits made by Personal Investment Entities (PIEs). Term deposit providers across the industry have reviewed their definitions of PIE based on this guidance. As a result, our term deposit issuers are placing restrictions on how much can be invested by our clients in a term deposit. This will depend on the entity type and whether the term deposit issuer considers your client to be a PIE.

We’re reducing the maximum investment order limit of $1,999,999 for Wrap on-platform term deposits provided by ANZ and NAB. The limit applies to new investment orders as well as term deposits that are being rolled over on maturity (principal or principal and interest).

*Where you're unsure of your client's classification, assume PIE for ANZ and NAB.

Our platform will no longer allow you to place an investment order on ANZ or NAB term deposit for more than $1,999,999. If you have a non-PIE client who would like to invest $2 million or more in term deposits, you'll need to place more than one order.

If you invest an aggregate amount of $2 million or more in ANZ or NAB term deposits for your PIE clients, these term deposits may be cancelled without any financial compensation. Please make sure you’re considering existing term deposit investments for each term deposit provider before proceeding with any transactions.

Yes. Wrap Online has a minimum investment order limit for term deposits which has been set at $10,000.

1. Log in to Adviser Online
2. Hover over Transacting and select Portfolio transacting
3. Search for the account using the account name or number
4. Click on the blue New Transaction button, and select Buy new Term Deposit
5. Select the term deposit you require from the drop-down list
6. Enter the amount of the term deposit and click on Continue
7. Select the term deposit, complete all required details and submit and authorise the order using your Macquarie ID and password.

Applications for Wrap term deposits close each business day at midnight with the investment being made the following business day. The timeline:

• Day 1: Order submitted and authorised by midnight (client receives today’s rate)
• Day 2: Cash debited from cash account, order sent for processing (this is the start date of the term deposit)
• Day 3 (Day 4 for super/pension accounts): Term deposit issuer confirms order and applies Day 1 interest rate. Term deposit visible in online reports.

You can’t conduct in-specie asset transfers of term deposits between accounts. If you are conducting the following, your term deposit can be transferred:

• Product conversion (where you are converting a legacy product to a Series II product)
• Change of phase (e.g. from your Super to Pension account) only if the term deposit has more than 10 business days left before maturity.
  

You can view your client’s existing term deposit maturity elections in Adviser Online by following the instructions below:

1. Log in to Adviser Online
2. Click Clients on the menu under the Macquarie icon and select your client’s Wrap account 
3. Select Account details and Term deposit maturity elections is located under Features.

You can update the maturity instructions for Wrap term deposits until 9pm (Sydney time) one business day prior to the maturity date.

To change your client’s term deposit maturity elections in Adviser Online: 

1. Log in to Adviser Online
2. Under the Clients tab in the side navigation, select Accounts and search for your client’s account
3. Select Account details
4. Under the Features section, expand the Term deposit maturity elections accordion and click on the Update term deposit maturity elections button. This will launch the Term deposit maturity elections wizard.
5. Select a new maturity election for the term deposit
6. Select Confirm to review the term deposit maturity election updates and disclaimers.
7. Select Submit.

Users must have full transact authority to update term deposit maturity election details.

Under ordinary circumstances, on maturity, the principal and/or interest is paid into the client’s cash account/hub on the day the funds are received from the issuer for investment accounts, and the following day for super and pension accounts. Where an election is made to rollover, an automatic application will be made into the next term deposit for the same term, from the same issuer and the amount specified¹ (principal only or principal and interest). For investment accounts, the start date will generally be the next business day. For super and pension accounts, the start date will generally be two business days after maturity.

¹ Investment order limits apply, refer to the Investment Order limits section of this Guide.

For investment accounts, the proceeds from the term deposit maturity are generally available on the afternoon of the business day after maturity. For super and pension accounts, the cash is generally available two days after maturity.

As term deposit applications are pooled and invested together, there is limited ability to obtain funds before maturity. You may request to break your term deposit, but you should be aware that this is subject to the term deposit issuer’s approval and that fees, notice periods, and interest reductions may apply.

You can request to break a term deposit by submitting a request form. Please speak to us using live chat in Adviser Online to request a copy of the relevant form.

We process requests to break term deposits every Tuesday morning. We then submit the requests to the term deposit product issuer the following Thursday, who will proceed with breaking the term deposit. You must submit your request to break a term deposit by Monday close of business (Sydney time) to be processed on the Tuesday in the same week.