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Direct Broking Call Account

  
  
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Higher, Compounding Returns
than a standard call account

As a Portfolio Investment Entity (PIE), the Direct Broking Call Account can benefit all investors when compared to a non-PIE call account, at the same interest rate.
Direct Broking call account rate:

 2.8% p.a.

Higher, compounding returns
Tax on income earned on your PIE investment is usually paid annually, not monthly, so returns on your investment can compound to higher levels during the year.
 
High income earners pay less tax
The PIE status of the Direct Broking Call Account caps the tax rate on income to 28% p.a.
 
You can save money on share trading
Direct Broking's DIY internet share and bond investors, with enough money in their Direct Broking Call Account to cover the trade, get our cheapest brokerage rates.
 
All funds are currently invested in on-call and term deposit accounts with ANZ National Bank Limited

Features of the Direct Broking Call Account ("Fund") are:
Designed as a settlement account for share trading activities

You earn a competitive rate of interest

Online withdrawals and transfers via the Direct Broking website(1)

Telephone access to your funds via an experienced operator(1)

Return on your investment accrued daily and distributed monthly(2)

Monthly statements keeping you informed of transactions and account balances

Account holders can make regular deposits to their account under the savings option

Portfolio Investment Entity ("PIE") status means tax on your investment is capped at 28% p. a.
(1)For same day withdrawals, requests must be made by 4pm on a business day
(2)Deposits by investors will commence earning interest (unit holders distribution entitlement) when the Fund invests your deposit according to the Fund’s Investment Policy, which is usually the first business day after being received into the Funds Client Trust Account. Interest is accrued daily and distributed monthly.
APPLY TODAY!
Click Here to download a PDF (Adobe) copy of the Direct Broking Call Account Investment Statement and application form.

Please note you require the Acrobat Reader to view PDF documents, if you don’t have Adobe Reader, click here to download this for free!

Make a Deposit

Once your Direct Broking Call Account has been established you can make New Zealand dollar (NZD) deposits by using the various methods outlined below.

CHEQUE PAYMENT:
Please send NZD cheques to our office and ensure you write your client account number and surname on the back of the cheque. All cheques must be crossed "not transferrable – a/c payee only".

Postal address: Freepost 3755, Direct Broking Call Account, PO Box 1790, Wellington 6140, New Zealand.

DIRECT CREDIT:
NZD direct credit payments can be made to the following bank account. Please ensure you reference your deposit with your client account number and/or surname.

Direct Broking Call Account
02 – 0500 – 0673551 – 00

BILL PAYMENT:
The Direct Broking Call Account is a registered payee for internet banking bill payments with the major New Zealand retail banks. Please ensure you reference your deposit with your client account number and/or surname.

CASH DEPOSIT:
Cash deposits can be taken to any branch of the BNZ and deposited into the following bank account. Cash deposits cannot be accepted at the Direct Broking office. Please ensure you reference your deposit with your client account number and/or surname.

Direct Broking Call Account
02 – 0500 – 0673551 – 00

CREDIT CARD:
We are unable to accept credit card deposits for the Direct Broking Call Account.

Manager

Direct Broking Limited is a wholly owned subsidiary of ANZ National Bank Limited and is the Manager and Issuer of the Direct Broking Call Account.

Trustee

The Trustee of the Direct Broking Call Account is New Zealand Permanent Trustees Limited (“NZPT”).

New Zealand Permanent Trustees Limited
Level 10, 141 Willis Street
PO Box 5067, Wellington

Prospectus

A prospectus for the Direct Broking Call Account has been registered under Section 43B of the Securities Amendment Act 2011 (in force from 1 May 2011).
Click here to view the Direct Broking Call Account prospectus

Investment and Administration

Direct Broking Limited (a wholly owned subsidiary of ANZ National Bank Limited) is the issuer and manager of the Direct Broking Call Account. Direct Broking Limited has the day-to- day management responsibility in respect of the Direct Broking Call Account. Units in the Direct Broking Call Account do not represent deposits or other liabilities of ANZ National Bank Limited or Direct Broking Limited. Units are subject to investment risk, including possible delays in repayment and loss of income and principal invested. No member of the ANZ National Bank Limited group (which includes Direct Broking Limited), New Zealand Permanent Trustees Limited or any other person guarantees (either partially or fully) Direct Broking Limited or the capital value or performance of any product issued by them.

Direct Broking Call Account Objective

The objective of the Direct Broking Call Account is to provide investors with a competitive, easily operated and well managed investment account. The investment objective is capital stability and competitiveness of return.

Investment Strategy

The Direct Broking Call Account, being a “designated Group Investment Fund”, may only invest in a portfolio of cash, deposits with, loans to, or other short-term debt securities of any trading bank (including but not limited to ANZ National Bank Limited), Treasury Bills, Government Stock and other investments which a designated Group Investment Fund may invest in without losing that status under the Income Tax Act 2007, such as mortgages and Local Authority Stock. Currently the Fund invests, and intends to continue to invest, entirely in debt securities and deposits with ANZ National Bank Limited. The Manager will manage the investments of the Fund. However, the Trustee holds the assets of the Fund in its own name.

Tax Rates

Your Inland Revenue Department (IRD) number must be provided on your Direct Broking Call Account Application. Your Prescribed Investor Rate (PIR) is the rate at which income tax is deducted from income earned on your investment. You can elect a PIR rate of 0%, 10.5%, 17.5% or 28% p.a. and you will be asked to reconfirm this each year.

Please note; if an IRD number is not provided then tax is deducted at 28% p.a.

Investors with a PIR other than 0% are referred to as “tax-paying investors”.

The Direct Broking Call Account's tax liability on PIE income allocated to its tax-paying investors will be deducted at the earliest of the three following times in respect of each tax year. The tax liability will be deducted by cancelling units equal to the value of the tax liability:
  1. At the end of the tax year (following 31 March normally);
  2. Upon a full withdrawal; or
  3. If at any time, especially upon a partial withdrawal (including standing redemptions) or upon a partial switch, the balance of the remaining units is, or could potentially become insufficient, to cover the Direct Broking Call Account's accrued tax liability on income allocated to such an investor. In these circumstances, this will be deemed a full withdrawal and tax will be deducted on account of the accrued liability. The Manager will consider potential market movements when determining whether the remaining units are of sufficient value to cover the tax liability.
A refund of tax will be provided to the Fund to compensate for PIE tax losses or excess tax credits (if any) relating to tax-paying investors, which is then allocated to such investors by way of issue of additional units.

The Fund will not cancel any units or otherwise adjust the interests of its zero rated investors for PIE tax, as the Fund does not pay tax on the income allocated to such investors.

Investors who have elected a PIR of 0% are zero-rated investors. Zerorated investors and trusts that do not select 28% must complete a tax return that includes PIE income or losses from the fund. These investors will have a tax liability in respect of the PIE income allocated to them, regardless of whether the Fund makes any distributions to them.

Investors must advise if their PIR changes. Failure to advise, or providing a lower rate than that applicable, will mean the investor is personally liable to pay any resulting tax shortfall, including penalties and interest, and may be required to file a tax return. Investors that provide a PIR that is too high will usually not be able to claim a refund for any excess tax paid by the Fund in most cases.

If the correct tax rate has been elected, the tax paid on income allocated to tax-paying investors will be a final tax and no obligation to file a tax return (in respect of this investment) will arise as a consequence.

Frequently Asked Questions and Answers

At Direct Broking Limited, we aim to make our communication with you as simple and direct as possible. Below are some frequently asked questions and answers. If these do not address your queries, please call us on 0800 338 637.

Direct Broking Call Account FAQ’s
Questions Answers
Who is involved in providing it for me? The name of the 'scheme' (or product) being offered is the 'Direct Broking Call Account' (“the Fund”), which was established on 10 April 1997. The Fund is a group investment fund that invests in short-term securities, deposits and first ranking mortgages in favour of the Trustee.
Is there a minimum deposit? No.
How and when can I withdraw funds? All investors have ready access to funds by phoning Direct Broking on 0800 338 637 by 4pm (weekdays) or by submitting a withdrawal request via the Direct Broking website by 4pm (weekdays).
Are there charges for withdrawing money? No.
When are returns on my investment paid? Deposits by investors will commence earning interest (unit holders distribution entitlement) when the Fund invests your deposit according to the Fund’s Investment Policy, which is usually the first business day after being received into the Funds Client Trust Account. Interest is accrued daily and distributed monthly.
How are investments made? You may use the internet and telephone banking facilities set up on your bank account to make funds transfers into your Direct Broking Call Account. Alternatively cheques should be posted to Direct Broking Call Account PO Box 1790 Wellington.
How is my balance affected when buying and selling shares? The proceeds from any sales when distributed after brokerage is paid will be automatically deposited into your Direct Broking Call Account. Payment for purchases will be automatically debited from your Direct Broking Call Account (if you have provided Direct Broking Limited with a debit authority).
When do I receive statements? Statements are posted or emailed monthly.

A copy of the latest Direct Broking Call Account Investment Statement is available here


Please call 0800 338 637
for more information about our Direct Broking Call Account.
© Direct Broking Limited 2005.
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