Transition from CommSec Adviser Services to the Commonwealth Bank

  • On 3 May 2021, the Commonwealth Bank divested CommSec’s Adviser Services wholesale trading solutions business Ausiex, but continued to provide Investment Loans to clients with Advisers.

    It's been less than 12 months since we legally separated from Ausiex and we are thrilled to officially relaunch our business under the Commonwealth Bank brand focussed on Geared Investments Loans, with a new and dedicated website for our Investment Loans to service you and your adviser.

    Although we have a new name, we're still the same business, with the same great people and commitment to servicing your needs.

How can I apply for a new CommSec Adviser Services Investment Loan account?

  • Geared Investments Loan applications can be accessed on the forms section on this website only, click here to access.

    You should also read the Geared Investment Loan Terms and Conditions which provides you with information about us and services we can provide. In addition, you should read all relevant Product Disclosure Statements or disclosure documents available on our Forms page.

What types of Investment Loans do you offer?

  • We offer 3 types of Investment Loans, some with slightly different features to suit different investor needs:

    Retail Client, Wholesale clients,  Corporate & Trust Entity Loans;

    • One with a 5% buffer and features aimed at investors predominantly investing into direct listed equities. This loan type provides clients with bonus securities and portfolio LVR, when they are diversified and hold five or more approved listed securities.
    • One with a 10% buffer and features aimed at investors predominantly investing into Managed Funds, allowing a larger buffer to cater for managed fund investment and redemption processing times; and

    There are also other different product features such as LVRs and Margin Call clearance time which can be viewed on either the Accepted ASX Listed Equities list or Accepted Managed Fund list.

    Wholesale Loans;

    We only offer the 5% buffer features on the wholesale loan. Wholesale clients can get access to the maximum lending values on the Approved Security List, when they diversify their portfolio.

What securities do you lend against?

  • We have a comprehensive accepted securities list of listed securities, managed funds, investment platforms and SMA. Each accepted security has a lending ratio which indicates the maximum we can lend against. Our lending ratios are generally between 40% up to 80% depending on the investment loan type.

How much can I/and advised client borrow?

  • The maximum amount you can borrow depends on:

    • How much money you have to invest and the value of the assets they provide as security
    • Which shares or managed funds you invest in, as we lend different amount for different types of investments
    • The Borrowing Limit for each accepted security is set out in our Accepted Securities List. Borrowing Limits, which we determine, may change from time to time at our discretion

    Note: For retail client loans, clients must have the net servicing capacity to afford the interest expense of their fully drawn loan, have sufficient collateral available to support the limit applied for, and have a total gearing level for all personal and investment debt including the Geared Investments Loan being applied for, that does not exceed our upper limits. If you want to know more about our assessment limits or application process, please contact our business development managers or call our team on 13 15 20.

What is a Margin Call?

  • A Margin Call occurs when:

    • A client’s current Loan to Value Ratio (LVR) exceeds the Margin Call LVR; or
    • A client’s current LVR exceeds the Maximum Gearing Ratio

    A Margin Call can occur when:

    • The loan value increases due to withdrawals or interest capitalisation
    • The market value of your client’s portfolio falls
    • We reduce the LVR of an investment securing a client’s investment loan; or
    • We reduce the Buffer amount

What actions are taken in the event of a Margin Call?

    • We will take reasonable steps to notify you and your adviser by SMS, email, or phone. We also make your gearing levels available to you and your adviser in real time on our website, so you can always keep up to date
    • You and your adviser must ensure you are contactable at all times in the event of a Margin Call and keep us informed of any changes to your contact details
    • The gearing levels must be adjusted within the timeframes stipulated in the Geared Investments  Loan Terms & Conditions so that it is below the lower of:
    • The Base LVR; and
    • The Maximum Gearing Ratio

How to resolve a Margin Call?

  • If a Margin Call is triggered, the following resolutions are available:

    • Reduce loan balance by depositing money into the investment loan
    • Add accepted shares or managed funds to increase portfolio value; or
    • Sell a sufficient amount of the portfolio to reduce loan balance and gearing level

What are the risks & how to manage it?

  • All investments are subject to risk. This means that you may lose money on your investments or fail to meet your financial objectives.

    The key risks of an  Investment Loan include:

    • Adverse market conditions may result in portfolio value being reduced and subsequently gearing level may increase, triggering a Margin Call
    • We may reduce or remove the LVR applied to investments, which may result in a Margin Call
    • The variable interest rate may increase resulting in higher interest costs, which may exceed the portfolio’s return
    • Margin Calls may require investments to be sold by you or us quickly at unfavourable prices and may trigger unwanted capital gains or losses
    • Tax legislations or marginal tax rates may change and have an adverse impact on your tax position
    • The loss of any assets if they have been mortgaged as security or to provide security to the Investment Loan
    • Default events or enforcement events (as defined in the Terms & Conditions) occurring. The consequences of such an event occurring include all amounts owing becoming immediately payable. Default events include a materially-adverse change to your financial position, or to the financial position of any Guarantor or Mortgagor
    • Your financial situation may materially change, adversely affecting your investment loan
    • Adverse market and/or security specific conditions may result in the value of security being insufficient to repay their loan

    For general information on the risks involved, visit https://moneysmart.gov.au/how-to-invest/borrowing-to-invest.

    There are a number of things you can do to reduce the risks associated with an investment loan. They include:

    • Don’t borrow to the maximum permitted gearing level (i.e. the Base LVR)
    • Diversification may help to smooth out volatility, making a margin call less likely. When you spread your portfolio across different companies and sectors, a fall in the value of one investment may be offset by a rise in the value of another
    • Reinvest distributions and dividends into your investment loan which can lower your gearing level
    • Pay your interest costs instead of capitalising them as it increases your loan balance and gearing level
    • Don’t rely on investment income to cover your interest costs
    • Ensure you have sufficient cash flow - Work out your interest payments and other costs in advance. Remember that interest rates may rise or you may be required to meet a margin call within short timeframes
    • Monitor your investments: Regularly monitor the market and your investment loan, and be prepared to adjust your strategy when the market outlook is less positive. Your account information is available anytime online. If your account is in buffer, use the time to be proactive and avoid a margin call

Support of Grandfathered CALIA+ Product

  • Please note that we are closing our CALIA+ product, and no longer accept CALIA+ applications. For any remaining CALIA+ loan facilities some product restrictions apply, including credit limit increases and changes to loan borrowers, underlying securities and loan terms. 

    For existing CALIA+ product support or to obtain CALIA+ interest rates, fees and charges or the product’s Terms and Conditions please contact the team on 13 15 20 or view CALIA+ latest interest rates and CALIA+ fees and charges.

How clients need to manage their ACA Account

  • From 19 March 2022, advisers will no longer be able to obtain information and/or conduct transactions on client ACA accounts through the AUSIEX website or through Geared Investments. Clients can continue to access information and transact on their ACA cash account through CommBank channels, including Netbank, CommBank App, CommBank branches or phone banking. ACA disclosure documents including ACA Terms and Conditions, and interest rate information can be found on commbank.com.au.

Dispute Resolution

  • Steps in making a complaint

    While we welcome any positive comments you may have, it is equally important for us to know when you have a problem so that we can resolve it and retain your confidence.

    To save yourself valuable time, gather all the facts and documents about the complaint, think about the questions you want answered and decide what you want us to do.

    Once you have compiled all the relevant information, please follow the below steps.

    1. Talk to us

    Where possible, we encourage you to contact us as soon as possible for assistance with your complaint. We aim to resolve your complaint at your first point of contact with us.

    2. Contact Customer Relations

    Sometimes, a complaint is complex or requires a more detailed investigation than our team is able to provide. If this is the case, your complaint might be referred to our Customer Relations team for specialist assistance.

    If you have tried to resolve your complaint through the Client Service Team and are not satisfied with the outcome, you may also contact our Customer Relations team:

    Phone: 1800 805 605

    Mail:
    CBA Group Customer Relations
    Reply Paid 41
    Sydney NSW 2001

    Fax: 1800 028 542

    3. What happens after you make a complaint

Financial hardship

  • If the unexpected happens and you’re having trouble paying what you owe, please get in touch, we may be able to help.

    Sometimes unexpected events can occur in life which can leave you needing support to get financially back on track. Our Customer Service team may be able to help customers experiencing financial difficulty with our Geared Investment loan by:

    • pausing loan interest repayments;
    • applying concessions to fees and charges; and/or
    • working with you to develop a payment plan

    Did you know that missed or late payments can impact a borrower’s credit report? For further information, please read Changes to credit reporting.

    Our financial assistance process

    1. If a client is experiencing financial difficulty, please see the contact us section below. They will be assigned a dedicated case manager, who will ask questions about the situation and may ask the client to provide documents such as payslips, bank statements and medical certificates
    2. We will review all information available, and get in touch with the client to discuss next steps
    3. At this point, if the client chooses to apply for financial assistance, we will ask them to submit an application which we will review and either accept or decline
    4. If accepted, we will work with the client to develop a tailored financial assistance plan. If the application for financial assistance is declined, we will let the client know our reasons in writing

    If preferred, we can also work with a representative nominated by the, such as their Adviser or a financial counsellor. Please provide us with their details at any stage of the process.

    If you have already applied for financial assistance with us and you are not satisfied with the response, you have the right to lodge a complaint. Please view the Dispute Resolution FAQ above for more information.

    Your financial assistance plan

    This tailored plan of action will:

    • provide details of the new arrangement;
    • highlight any necessary repayments;
    • explain when the new arrangement will end; and
    • advise next steps.

    We're here to help

    For more information or to apply for financial assistance with us, please contact us.

Estate Management

  • If you have recently lost someone close to you, we understand this may be a very difficult time.

    Below is information that will help guide you through this process, from how to notify us through to what documents you will need to provide. The below relates to all products offered through us however there are some specific requirements depending on the products held, where noted below.

    What you need to do

    Step 1: Let us know

    To ensure the account of your recently deceased client, family member or friend is protected, please notify us of their passing as soon as possible. Please provide us with the deceased’s:

    • Full name
    • Account number/s (if known)
    • Address
    • Date of birth and
    • Date of passing

    Once these details have been verified, we will take the following actions to protect the account(s):

    • Remove access to the account (including additional authorities on the account)
    • Switch off any recurring fees
    • Refund any fees charged after the date of their death (if applicable)

    Important Information: Under ASX Business Rules, all CHESS Settlement Facility holdings must be ‘locked’ on initial notification of a deceased estate. This means that the shares cannot be transferred or sold until all requirements have been satisfied.

    Step 2: Complete the Notification form

    Download and complete the Estate Management Notification form

    The Deceased Estate Notification form is used to notify us of the executors/administrators and solicitors (where applicable) representing an estate and lists the supporting documentation requirements based on the different account types and estate value.

    Once we have received and verified this information:

    • We are only able to execute instructions received from the Estate executor, administrator, solicitor or appointed adviser
    • We will provide you with the portfolio statement and historical transaction summary. This information will assist you in determining how to disburse the shares of the estate

    Step 3: Complete the Disbursement form

    Download and complete the Estate Management Disbursement form

    At this point, you are ready to disburse the shares. The Estate Management Disbursement form is used to instruct us to transfer and/or sell the shares of the estate. The information and documentation requirements will depend on the account types held by the deceased.

    Once we have received and executed your disbursement instructions, we will automatically close the accounts and send a notification to you.

    Important information: All shares must be sold or transferred from the deceased trading account within 3 months of being unlocked, unless signed approval is received from all executors requesting an extension. Please note the maximum extension that can be granted is up to 12 months from the initial unlock date. In the event this does not occur, the holdings may be sold at our discretion to repay any outstanding balance (where applicable), and release the remaining shares to issuer sponsored holdings. The executor will need to liaise directly with the Share Registry to finalise the shareholdings.

    We’re here to help

    For more information on managing the account/s of a deceased estate, please view the Estate management frequently asked questions. Alternatively, please contact us.