Update to the CommSec Adviser Services Investment Loan Term and Conditions

Please note from Monday, 8th March 2021, the Terms and Conditions for CommSec Margin Loans and CommSec Adviser Services Investment Loans will be merged into a single document called ‘Margin Loan Terms and Conditions’. The below changes will also be implemented.

Clause 1.7

  • Paragraph (a) - amended from “If You nominate an Adviser, You are appointing that Adviser as Your attorney and agent and empowering Your Adviser to do anything which You are entitled to do under or pursuant to the terms and conditions” to "You must nominate an Adviser to operate Your CommSec Adviser Services Investment Loan. By nominating them, You are appointing that Adviser as Your attorney and agent and empowering Your Adviser to do anything which You are entitled to do under or pursuant to the terms and conditions.”
  • Paragraph (a) - the following sentence added “Should You no longer have an Adviser, We reserve the right to move You to the CommSec Margin Loan product which is designed for non-advised clients. We will notify You before this change occurs."
  • Paragraph (b) - amended from “You agree that You are bound by Your Adviser’s acts.” To "If You nominate an Adviser, You agree that You are bound by Your Adviser's acts. We reserve the rights to move you to the CommSec Adviser Services Investment Loan product which is designed for advised clients. We will notify You before this change occurs."

Clause 1.8

  • Amended from “Give Us five Business Days’ written Notice to process Your request.” To “Give Us five Business Days from when We receive Your written Notice, to process Your request.”

Clause 1.9(b)

  • Amended from:
    • “If We notify You of a Margin Call on Your Loan Account, You must take one of the following actions by 2pm (Sydney time) of the Business Day immediately after the day on which the Margin Call occurs (or earlier if We specify this when We notify You of the Margin Call): Pay money into your Loan Account; Give Us further Financial Products which We accept as Mortgaged Property; or Sell or ensure the sale of Mortgaged Property and use the sale proceeds to reduce the Loan Balance. If none of these actions are taken to clear the Margin Call by the specified time, We’ll treat this as a Default Event (see clause 1.10). You authorise Us to act on any of Your instructions in relation to a Margin Call. If there is more than one account holder, and We act on the instructions of any one person, You release Us from all liability for acting upon these instructions except in the case of Our fraud, negligence or wilful misconduct.”
  • To:
    • "If We notify You of a Margin Call on Your Loan Account, You must take one of the following actions: Pay Money into your loan account, Give us further financial products which we accept as mortgaged property; or Sell or ensure the sale of Mortgage property and use the sale proceeds to reduce the loan balance. These actions must be taken by 2pm (Sydney Time) of the Business Day immediately after the day on which the margin call occurs, or earlier if we specify this when we notify You of the Margin Call, unless: more than 95% of the Market value of Your Mortgaged property is made up of units in unlisted trusts. In this case, You must take action to resolve your Margin Call by 5pm (Sydney Time) of the third business day immediately after the day on which the margin call occurs, or earlier if We specify this when we notify You of the margin call. If None of these actions are taken to clear the Margin call by the specified time, we'll treat this as a default event (see clause 1.10). You authorise Us to act on any of your instructions in relation to a margin call. If there is more than one account holder, and we act on the instructions of any one person, You release Us from all liability for acting upon these instructions except in the case of Our fraud, negligence or wilful misconduct”.

Clause 2.3

  • Table subheading to read “Fees” instead of “Interest Rates”.
  • Notice method amended from “in writing” to “by national media or in writing”

Clause 5 Sponsorship Agreement

  • Update to the CommSec Adviser Services Investment Loan Terms and Conditions. CHESS sponsor is amended from “Australian Investment Exchange Limited (AUSIEX) ABN 71 076 515 930 AFSL 241400” to “Commonwealth Securities Limited (“CommSec”), ABN 60 067 254 399 AFSL 23881”, wherever appearing.

Clause 9.3

  • Paragraph (a) – updated to include “Australian Investment Exchange Limited (AUSIEX) continues to provides certain services in relation to the CommSec Adviser Services Investment Loan; noting that effective 1 May 2021 AUSIEX is no longer a member of the Commonwealth Bank Group”.

Part 10

  • Margin Loan added as a defined term to “CommSec Margin Loan and CommSec Adviser Services Investment Loan products”.

Clause 1.11.3 Priority in favour of ASX Clear

  • Added: ASX Clear has priority over any Security Interest of Ours (whether arising under the Mortgage or otherwise) over any property (including cash) that is pledged, mortgaged, charged or otherwise secured by You in favour of ASX Clear in respect of some or all of the obligations of CommSec (in its capacity as clearing participant) to ASX Clear. We and You agree that the priority agreement in this clause is held on trust for the benefit of ASX Clear.

We're here to help

If you have any questions, please contact CommSec Adviser Services on 13 15 20, Monday – Friday.

Disclaimer:

CommSec Margin Loan and CommSec Adviser Services Investment Loan are products of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945, and Margin Loans and Investment Loans are administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814. Read the Product Disclosure Statement available on our websites before investing or borrowing money. Terms and conditions are available on request. Fees and charges apply.

Published: 01 March 2021