A wealth advisor can assist SIV Applicants in constructing a compliant investment portfolio in line with their personal risk profile, goals and lifestyle objectives.
Licensed Australian financial advisors have has access to a wide range of financial products and investments, generally selected from their licensees Approved Products List, that have undergone due-diligence including ratings by specialist Research houses.
How is the portfolio constructed for an SIV Applicant?
As the objective of the SIV program is to invest in Australia, asset classes are limited to Australian venture capital, corporate bonds, managed shares and property (no more than 10% in residential). These investments must be held in a managed fund or listed investment company (LIC).
While the asset classes are limited and some states have specific requirements, it is still important the applicant undergoes a risk profile assessment to assist in constructing an appropriate portfolio within the constraints of the program which is tailored to the applicants individual risk appetite and objectives.
Implementation of the complying portfolio is undertaken once the visa is approved. The underlying funds provide an SIV compliance or 1413d certificate. As part of an ongoing relationship, the advisor will conduct regular investment reviews with the applicant taking into account market conditions, their objectives, and importantly ensure the funds continue to remain compliant.
For the venture capital component they must be AusIndustry registered. Note there is no independent research in relation to the mandated venture capital category, so it is essential SIV Applicants undertake their own due diligence on available funds.
SIV Application Form
NSW Trade and Investment encourages SIV Applicants to obtain advice in determining their complying investments. Applicants can advise they are seeking advice on the new NSW SIV Application form for applications after 1 July, 2015 at this link: NSW-188SIV-application-form_201509.
Note final investment portfolios selected for the $4.5M must be advised prior to completion of the Visa application process. Selection of Venture Capital can be made post granting of the visa, but no later than 12 months.
Regulations and Compliance
Wealth advisors are authorised by Australian Financial Services Licensees (AFSL) and provide clients with a Financial Services Guide (FSG). A fee is charged for preparation of the Statement of Advice (SoA) and ongoing service. Details of investment manager fees and administration costs are set out in the SoA.
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