Frequently Asked Questions

General

What is the difference between Direct Broking, FNZC, First NZ Capital Securities Limited and FNZ?
Direct Broking is the trading name or brand of First NZ Capital Securities Limited’s digital investment service for self-directed investors.

First NZ Capital Securities Limited (FNZC) is a leading full-service, wholly locally owned, share broking and investment banking* firm. We’ve been active under various names for more than 50 years and have a formal strategic alliance with Credit Suisse, a relationship that has existed for more than 20 years. FNZC’s new alliance with ANZ provides our clients with access to world-class global research, industry expertise, global securities distribution, bank debt and underwriting capabilities. *FNZC is not a registered bank.

FNZ Limited (FNZ) is FNZC`s independent custodian and it holds custody investments on behalf of our clients as a bare trustee in New Zealand. FNZ has appointed Citibank NA as sub-custodian in Australia and the rest of the world, to hold all custody investments on behalf of our clients as a bare trustee.

Can I sign up for Direct Broking if I don't bank with ANZ?
Yes. There is no requirement to have an ANZ account to open an account with Direct Broking.

How do I sign onto the Direct Broking website for the first time?
Please call 0800 805 777 to activate your account and receive a temporary password. The temporary password will allow you to login to the Direct Broking website where you can create a password of your own. Full sign on instructions will be sent to you shortly after the account is opened.

Where can I find my account balances?
To view your balances, click on the My Accounts screen.

Click on My Portfolio to see all shares, bonds and cash positions. Note that cash positions are your actual account balances. Share and bond positions will be a combination of your actual purchases plus any positions you have added manually.

What is a Cash Management Trust (CMT) account and what are the benefits?
CMTs act as a bank account and allow for easy access to your money while earning interest. Each Direct Broking client receives a CMT account. The funds are held in a pooled segregated trust account at ANZ bank.

CMTs allow you to hold NZD and multi-currency balances on call. This will make it easier to invest in offshore shares such as those listed on the ASX.

Rather than sending a cheque, which can slow down the process of investing, you can fund your CMT balance to use at any time (and still earn interest on the balance).

The rate of interest paid to you on money held on your behalf in the cash management account(s) within your portfolio reflects a margin deducted and retained by us by way of mark-down from the rate of interest that is paid to FNZC.

The current interest rates based on investment size are found here.

Is my money is still protected?
FNZC is required under NZX regulations to hold client monies in client funds trust bank accounts. FNZC administers monies belonging to clients in a fiduciary capacity. This is a key area of regulation under the Financial Advisers Act 2008 and the NZX Limited Participant Rules, the main purpose of which is to ensure that FNZC accounts for, and safeguards, client assets at all times. The Financial Advisers Act 2008 and the NZX Limited Participant Rules dictate a high standard of custodianship and associated record keeping.

FNZC is not a registered bank and is therefore not regulated by the Reserve Bank. The protections for your money are as prescribed by the NZX Regulations.

What is the minimum outlay I require to start buying shares?
The minimum parcel of shares that can be registered is based on the particular price band a stock falls under. A general guideline is $500.

How does your fee structure work?
Brokerage is charged on your Buy and Sell transactions. The brokerage varies based on certain criteria on what class of security you trade, the channel that you trade through (internet or phone) and how it is settled (credit or prepaid through your Cash Management Account). Click here for our rate sheet detailing our brokerage charges and fees.

How easy is it to buy and sell shares on the market?
Once you have completed and submitted an application form, Simple! You can either phone our toll free number 0800 805 777 to place an order directly with one of our Equity Dealers or with our simple to use DIY service on our website.

What sort of advice and information is available to me?
Direct Broking offers a DIY service, no advice is given but general information is provided, such as stock prices and company news information via our website.

How can I place an order with you?
Clients can choose to submit an order via our online ‘Self Trader’ service or by calling our toll free dealing line 0800 805 777. Please have your client account number ready for the Dealer.

When you contact us to place a sell order, please have your CSN and FIN ready.

ASX sell orders:

If your holdings are sponsored in CHESS by UBS through Direct Broking, your order can be placed immediately.

If your Australian shares are Issuer Sponsored you will need to provide your Shareholder Reference Number (SRN) on your Issuer Sponsored holding statement.

How do I know if my order has traded?
We forward a contract note to you or an authorised representative via email or a hardcopy via post or fax.

Once my shares are sold when do I get paid?
For NZX transactions payment is made to your nominated account on the Settlement Date specified in the Contract Note you will be provided.

For ASX transactions payment is made to your nominated account on the Settlement Date specified in the Contract Note you will be provided.

Why does Direct Broking restrict depth to clients who have traded on the internet within the last 90 days?
The NZX charges broking firms royalty fees for live price and depth information accessed by our clients. It is not cost effective to provide this data to all clients. In order to recover some of the costs for providing clients with this data, the depth function is only available for clients that have traded with us in the last 90 days. Clients that have not traded with us in the last 90 days do not have access to the depth function.

What are your brokerage rates?
Brokerage rates are available here.

What are your office hours?
Between 8.30am & 6.00pm, Monday to Friday.

What are the market trading hours?
NZX trading hours: 10.00am until 5.00pm, Monday to Friday except statutory holidays. Orders can be taken from 9.00am onwards.

ASX trading hours: 10.00am until 4.00pm (EST Australian time), Monday to Friday except statutory holidays.

Can I place an order when the market is closed?
Yes, you can place an order outside market hours but it will not be processed until the opening of the next trading day.

How long does an order stay in the market?
NZX orders will expire after 4 weeks (3 weeks for ASX orders) or earlier if there is a corporate action (if the stock goes ex-dividend or the stock goes 'ex' share consolidation or 'ex' share split).

What about partially traded orders?
NZX partially traded orders will also expire after 4 weeks, (ASX 3 weeks). Clients will need to amend their price to complete the order or submit a new order after expiration. If you place your order online you can receive email notifications when your NZX or ASX order expires.

Are there minimum security holdings?
Minimum Holdings at any time shall, unless otherwise determined by NZX, are as follows:

(a) In relation to equity securities (shares), a holding with a market price at the relevant time of:

Number of Units	Price (both figures inclusive)
2,000	Where the price does not exceed 25 cents
1,000	Where the price exceeds 25 cents but does not exceed 50 cents
500	Where the price exceeds 50 cents but does not exceed $1.00
200	Where the price exceeds $1.00 but does not exceed $2.00
100	Where the price exceeds $2.00 but does not exceed $5.00
50	Where the price exceeds $5.00 but does not exceed $10.00
25	Where the price exceeds $10.00

(b) In relation to rights to equity securities, the number that would, upon exercise, convert to a minimum holdings as specified in (a).

(c) In relation to debt securities, a holdings with $5,000 or $10,000 principal amount.

(d) In relation to any other securities, a holding with $1,000 face value.

Direct Broking wishes to advise where the minimum holding requirement is met at the time of order submission or order execution but, due to a price variation or corporate action, is no longer met on the settlement date the trade will not proceed.

Where this occurs Direct Broking will contact you. At this point you will have two options:
1. Purchase additional shares to raise the parcel above the minimum holding.
2. Reverse the transaction.

How can I settle international share trades?
If you have an Cash Management Account (CMT) and there are sufficient funds held in the relevant currency, we can settle your overseas trades (AU, US and UK) in the currency of that country (AUS, USD or GBP). Otherwise, you will need to settle in NZD (foreign currency conversion margin applies)

How can I contact the share registries?
It is your responsibility to inform the share registries of your new address, as the share registry will only accept instructions from the registered shareholder. You should be aware that if there are discrepancies between your contact details and the address held by the share registries, there may be delays in settling trades and/or paying funds to your bank account.

See the links below to view the relevant contact details for NZ and AU share registries.

New Zealand: Computershare Investor Services
New Zealand: Link Market Services

Australia: Computershare Investor Services
Australia: Link Market Services
Australia: Security Transfer Registrars
Australia: Boardroom Ltd
Australia: Advanced Share Registry Services

Note: Australian CHESS clients are not required to notify Australian share registries of the new contact details - Direct Broking will do this on your behalf.

What is CHESS and why will I be sponsored by UBS Securities Australia Limited ('UBS')?
CHESS is a computerised share sub-register system operated by the Australian Stock Exchange. CHESS requires an ASX broker to act as Sponsor. UBS has been appointed as Sponsor for this purpose. UBS Sponsorship carries with it the following benefits:

You can trade or sell your shares immediately. The alternative is that you cannot sell your shares unless you know your Shareholder Reference Number (SRN) and it can take up to six weeks to get your SRN from some companies.
You have only one Holder Identification Number (HIN) for all your shareholdings. The alternative is that you are given a different SRN for each company. A single HIN is easier to remember and, if you change address, you only need to notify us raher than notifying every company that you hold shares in.

Important note: you must open a CHESS account if you want to buy/sell Australian shares thorough Direct Broking. You can download a CHESS application form from the Download Forms page.

Read more about the CMT here.

Direct Broking does not direct credit funds in AU$, US$ or GBP to a foreign currency account operated from a New Zealand based bank. Funds paid into a foreign currency account are done so by electronic transfer on an individual transaction basis. These are costly for you, due to the manual process required and the bank charges that are applied during the transaction by the remitting, transferring and receiving banks. All charges from these banks including transaction and currency exchange charges; are passed onto you by deduction from the amount transferred or from the sending and receiving accounts.

The following types of equity orders are permitted

Market Order
When submitting a market order, you are requesting that the buy/sell order be placed at the best available offer/bid price at the time the order is entered into the market. Please note, a market order does not necessarily mean that the order will be traded in full.

Limit Order
A limit order is an order to buy or sell a stock at a specific price or better. A buy limit sets the maximum price you are willing to pay, and a sell limit sets the minimum price at which you are willing to sell. Limit orders ensure that you pay or receive a specific price, but do not necessarily ensure that your order will be executed. For example, you may wish to purchase a stock that is currently quoted at a $2.04 bid, $2.07 offer, but do not want to pay more than $2.02. If you place a limit order at $2.02, your order will only be filled if the price drops to $2.02 or lower and there are no orders ahead of yours. If it continues to trade at its current quote, your order will not trade.

Trigger Order
A trigger order is a conditional order (stop-loss order) that can be entered for a sell order or for a buy order, and is only placed to market once the trigger condition is met. A trigger order involves entering a price limit as normal, with the addition of adding a trigger price. The limit, depending on whether the order is a buy or a sell, is the price to sell no less than or buy no more than, respectively. If a trigger price is entered, the order will not be placed at the limit unless the security trades at a price that meets the trigger condition - i.e. if the security trades at or below the trigger price for a sell order, or at or above the trigger price for a buy order. For example, to limit losses on a stock that you purchased at $5.00, you could enter a sell order with a limit of $4.75 and a trigger of $4.80. Once the stock trades at $4.80 or below, your order becomes a limit order to sell at $4.75. In this example, note that if the stock next traded after the trigger condition was met at a price below $4.75 the order would remain as a limit order.

Tax

The following is a general summary of the New Zealand tax implications based on current tax legislation. The information below does not constitute the provision of tax advice by Direct Broking. If in doubt you should seek professional tax advice in relation to your circumstances.

What do I have to pay tax on?
Distributions by companies by way of dividend are generally taxable income. The amount of tax that is ultimately paid depends on your own individual tax circumstances.

What types of credit are attached to/deducted from dividends?
Dividends received may have imputation credits and dividend withholding payments attached or have had foreign and/or RWT deducted. These credits may be used to reduce the amount of any residual tax that you could be required to pay at the end of the financial year.

Why is Resident Withholding Tax deducted from dividends?
The Income Tax Act 2007 requires that RWT is deducted from any dividends paid unless one of the exemptions apply. Any RWT deducted is remitted to the Inland Revenue Department by the Issuer and is available to you as a tax credit to offset against your residual tax liability in most circumstances.

Whether or not RWT is deducted, your overall tax liability remains the same. However, the deduction of RWT reduces the amount of any residual tax that you may be required to pay at the end of the financial year.

What if I have a Certificate of Exemption?
If you do have a valid RWT Certificate of Exemption for New Zealand, please send a copy to: Direct Broking, PO Box 1118, Wellington 6140, New Zealand. Once the certificate is received, future distributions will not have any RWT deducted unless you notify us of a change in the status of the certificate.

Please be aware that in providing a copy of your RWT Certificate of Exemption as described above, you undertake to maintain a valid certificate of exemption at all times and that you will notify in writing any change in this regard to Direct Broking.

At What Rate is Resident Withholding Tax Applied?
The RWT rate on dividends paid to New Zealand residents is 33%. The 33% rate applies regardless of whether the client has supplied their Tax File (IRD) number.

The amount of RWT deducted is reduced by the imputation credits attached, dividend withholding payments made or foreign withholding tax deducted overseas. No RWT is required to be deducted where a dividend is fully imputed, has full dividend withholding payment credits or the percentage of foreign withholding tax deducted is greater than or equal to 33%.

What is an SRN and where can I find it?
A shareholder reference number (SRN) is the identification number of your issuer sponsorship’s shares listed on the ASX. If you do not have a broker sponsor, you can trade on the ASX using your SRN. You will find your SRN on most postal correspondence from the Australian registries, for example, your dividend confirmation, or proxy form. Your SRN can be found on the top right of the document.

What is Automatic Exchange of Information (AEOI)?
AEOI is the exchange of financial account information between Tax Authorities in relevant countries. The law requires this information to be collected by Financial Institutions around the world for reporting to Tax Authorities.

AEOI is made up of two information sharing frameworks:

The Foreign Account Tax Compliance Act (FATCA) which is a US framework to identify US citizens and tax residents with accounts in foreign (non-US) jurisdictions. This has been in place since 1 July 2014; and
The Common Reporting Standard (CRS) under which details of foreign tax resident accounts are shared between participating Governments. Phased implementation of this regime commenced 1 January 2016

For more information, see www.ird.govt.nz/infoshare

What is a Controlling Person?
Controlling Person: A person who has 'control' over an entity includes any natural person who exercises effective control over the entity, such as the entity’s directors, senior managing officials, substantial shareholders, or equivalent. Controlling persons could include:

Companies: shareholders with more than 25% ownership interest and directors
Partnerships: the partners
Incorporated societies and associations: the chair, treasurer, and secretary
Trusts: settlors, trustees, protectors, beneficiaries (or classes) regardless of whether they exercise control over the trust’s activities.

Where anyone is an entity, you may also need to identify the controlling persons of that entity.

What is Shareclarity and what will it do for me?
Shareclarity is a service that provides digital real-time research on companies listed in New Zealand, Australia and Hong Kong. As part of the service with Direct Broking, each client receives free basic Shareclarity membership which provides access to stock screens, monthly newsletters, mobile alerts, company descriptions, chat forums and annual reports.

You can access Shareclarity directly when you are logged into your Direct Broking account. Direct Broking is working with Shareclarity to offer even better research services for self-directed investors over time.

The Foreign Account Tax Compliance Act (FATCA)

The following information does not constitute legal or tax advice. It was collected from various sources generally believed to be reliable. First NZ Capital Securities Limited (operating as Direct Broking) believes the information provided here to be correct at the time of publication but disclaims responsibility as to the accuracy and completeness of the information or reference to any information. The information on these pages is subject to change without notice and does not represent a commitment on the part of First NZ Capital Securities Limited. First NZ Capital Securities Limited expressly disclaims liability for errors or omissions in this information and materials.

What is FATCA?
The following is general information on the Foreign Account Tax Compliance Act (FATCA).

FATCA is US legislation that places certain obligations on financial institutions, like Direct Broking, to identify customers who may have tax obligations in the United States.

Where this is determined, we are obligated to report those customers and their qualifying accounts to Inland Revenue (IR), who then pass the information to the US Internal Revenue Service (IRS).

Who will FATCA impact?
FATCA applies to US persons who have foreign financial accounts, e.g. custodial holdings or an Cash Management Account managed by FNZC.

US persons are generally US citizens and/or permanent residents (e.g. green card holders).

FATCA also affects US entities, such as US registered companies, other entities controlled by US persons, and non-participating financial institutions (e.g. a foreign financial institution that has not entered into an agreement with the IRS and is subject to withholding under FATCA).

FATCA will also affect any applicants, and/or their associated parties, who do not provide adequate information on the applicable application form(s) or in answering follow-up questions.

We will need to ask all clients certain questions to help determine where US tax obligations may be applicable.

Generally, this will be determined if:

You are a US resident for tax purposes or a US citizen
You are a company, trust or partnership with one or more US persons who have a controlling interest (e.g. a director, trustee, beneficiary, settlor or partner).

Which Direct Broking products are captured under FATCA?
- Custodial holdings
- Cash Management Trust accounts (CMT)

Note: if you do not have any tax obligations in the US, no reporting for FATCA will be applicable. Likewise, if you hold a balance in USD in your CMT and you do not have US tax obligations, no reporting is typically applicable.

Where can I get advice about FATCA?
While Direct Broking can provide factual information on New Zealand tax regulations associated with FATCA, we are strictly prohibited from providing tax advice.

For more information please visit www.ird.govt.nz or www.irs.gov

If you require specific personal advice with regards to FATCA, e.g. to determine if you are a “US resident for tax purposes”, we suggest that you speak with a professional tax advisor.

Instructions for applicants with previous US connections

Applicants with previous US connections

If you were formerly a US resident for tax purposes or a US citizen (a Specified US person), or you had the right to be, we need you to send us more information proving these US connections have been ended.

Likewise, if you have previously advised us that you are a Specified US person we will continue to treat you as a Specified US person and your qualifying accounts may be reported yearly to Inland Revenue, until we receive the following information.

If you used to be a US citizen and/or you were born in the US

Please provide the following:

A completed and signed Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (W-8BEN) form, and
A copy of your Certificate of Loss of Nationality of the United States, or complete and sign the “FATCA Reasonable Explanation” form, and
A copy of one of the following: the personal pages of your non-US passport; your non-US citizenship certificate; or other government issued identification which evidences your citizenship or nationality in a country outside of the United States.

If you have never been a US citizen and you were not born in the US

Please provide the following:

A completed and signed Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (W-8BEN) form, and
A copy of any one of the following: a letter from the US Internal Revenue Service, or the Department of Homeland Security, confirming that you have complied with all U.S. revocation requirements from your previous “Green Card” status”; your “sailing” or “departure” permit obtained by filing either Form 1040-C or Form 2016 with the IRS; or any other relevant documentation supporting your US non-residency.

Assistance to complete the "US person" questions in an application form

Individual application form

IMPORTANT NOTE

If you are a US resident for tax purposes or a US person, your application will be reviewed by Direct Broking before it is processed. Direct Broking reserves the right to refuse an application – particularly an application from an individual who is not a New Zealand tax resident.

Direct Broking will contact you if your application is not approved.

Applicant

If you are a US resident for tax purposes or a US citizen, a W-9 form must be completed in your name.

Please refer to the “W-9 and W-8BEN Forms” section below

Agent and/or Minor

A “Minor” is defined as an applicant who is under the age of 18 years.
An “Agent” is defined as the parent or guardian acting on behalf of a Minor.

Please refer to the list of requirements below:

- If the Agent is a US resident for tax purposes or a US citizen
- And the Minor is also a US resident for tax purposes or a US citizen
- Then a W-9 form must be completed in the name of the Agent

- If the Agent is a US resident for tax purposes or a US citizen
- But the Minor is not a US resident for tax purposes or a US citizen
- Then a W-9 form must be completed in the name of the Agent

- If the Agent is not a US resident for tax purposes or a US citizen
- But the Minor is a US resident for tax purposes or a US citizen
- Then a W-8BEN form must be completed in the name of the Agent

Where there are two Agents acting on behalf of a Minor, these requirements apply to BOTH Agents.

Please refer to the “W-9 and W-8BEN Forms” section below.

Authorised Representatives

If you have nominated an Authorised Representative and he/she is a US resident for tax purposes or a US citizen but you, as the applicant, are not a US resident for tax purposes or a US citizen, a W-8BEN form must be completed in your name.

If you have nominated an Authorised Representative and he/she is a US resident for tax purposes or a US citizen, and you, as the applicant, are also a US tax resident or US citizen, the Authorised Representative does not need to complete any additional paper work because you have already completed the W-9 form.

Please refer to the “W-9 and W-8BEN Forms” section below.

Power of Attorney

Click here to download the Power of Attorney Supplement form

If the Power of Attorney is a US resident for tax purposes or a US citizen but you, as the applicant, are not a US resident for tax purposes or a US citizen, a W-8 BEN form must be completed in your name and a W-9 must be completed in the name of the Power of Attorney.

If the Power of Attorney is a US resident for tax purposes or a US citizen and you, as the applicant, are also a US resident for tax purposes or a US citizen, a W-9 form must be completed in your name and a W-9 must be completed in the name of the Power of Attorney.

Please refer to the “W-9 and W-8BEN Forms” section below.

W-9 and W-8BEN Forms

The W-9 form allows the applicant to provide their Taxpayer Identification Number (TIN) for reporting purposes. Direct Broking requires all US Persons to complete a W-9 form so that their associated accounts may be reported to Inland Revenue using the appropriate TINs.

The W-8BEN form is used to certify that the account holder is a non-US person.

Important notes:

We cannot accept a "W" form that has been corrected by hand or corrective substances (twink, white-out etc). If any corrections need to be made to your form, you must start over and complete a new copy of the form.
When completing a W-9 form, please ensure you write the date as Month DD YYYY (e.g. January 1 2000) to avoid confusion between American and New Zealand date formatting.
When completing a W-9 form, if you have changed your surname, for instance, due to marriage without informing the Social Security Administration of the name change, you should enter your first name, the surname name shown on your social security card and your new surname. You should then circle the parts of your name that are associated with your social security number (your first name and your previous surname).
While revocation of US citizenship documents provide useful insights into your current status, we still need a W-8BEN to be completed by those who have previous connections to the US.
We will not accept a "W" form that has been signed and dated more than 3 months prior to the date that the details of the form are recorded in our system.

Joint application form

IMPORTANT NOTE

If you are a US resident for tax purposes or a US citizen, your application will be reviewed by Direct Broking before it is processed. Direct Broking reserves the right to refuse an application – particularly an application from an individual who is not a New Zealand tax resident..

Direct Broking will contact you if your application is not approved.

Applicants

If an applicant is a US resident for tax purposes or a US citizen, a W-9 form must be completed in their name (one form per person).

Important note: If only one joint applicant is a US resident for tax purposes or a US citizen, the total value of any funds held in an OMCA and/or the total value of any custodial holdings are reportable. For example, if Mr Smith is a US citizen but Mrs Smith is not a US citizen, the total value of the OMCA and the total value of any custodial holdings (rather than half) will be reported under Mr Smith’s US tax obligations.

Please refer to the “W-9 and W-8BEN Forms” section below.

Authorised Representatives

If you have nominated an Authorised Representative and he/she is a US resident for tax purposes or a US citizen but you, as the applicant, are not a US tax resident or a US citizen, a W-8BEN form must be completed in the name of the applicants.

If you have nominated an Authorised Representative and he/she is a US tax resident or a US citizen, and you, as the applicant, are also a US tax resident or US citizen, the Authorised Representative does not need to complete any additional paper work because all of the applicants have already completed the W-9 form.

Please refer to the “W-9 and W-8BEN Forms” section below.

W-9 and W-8BEN Forms

The W-9 form allows the applicant to provide their Taxpayer Identification Number (TIN) for reporting purposes. Direct Broking requires all US Persons to complete a W-9 form so that their associated accounts may be reported to Inland Revenue using the appropriate TINs.

The W-8BEN form is used to certify that the account holder is a non-US person.

Important notes:

We cannot accept a "W" form that has been corrected by hand or corrective substances (twink, white-out etc).
When completing a W-9 form, please ensure you write the date as Month DD YYYY (e.g. January 1 2000) to avoid confusion between American and New Zealand date formatting.
When completing a W-9 form, if you have changed your surname, for instance, due to marriage without informing the Social Security Administration of the name change, you should enter your first name, the surname name shown on your social security card and your new surname. You should then circle the parts of your name that are associated with your social security number (your first name and your previous surname).
While revocation of US citizenship documents provide useful insights into your current status, we still need a W-8BEN to be completed by those who have previous connections to the US.
We will not accept a "W" form that has been signed and dated more than 3 months prior to the date that the details of the form are recorded in our system.

Company application form

Country of Establishment and Country of Primary Place of Business

If the Country of Establishment and/or Country of Primary Place of Business is not New Zealand, the application will be reviewed by Direct Broking before it is processed. Direct Broking reserves the right to refuse an application – particularly an application from an entity that is not a New Zealand tax resident.

Direct Broking will contact you if the application is not approved.

Financial Institution Worksheet

In order to answer Question 3 on the “Company” application form, you must refer to the Financial Institution Worksheet.

Click here to download the Financial Institution Worksheet

If you have answered “Yes” to any of the questions on the Financial Institution Worksheet, then your company is a Financial Institution. However, if you have reason to conclude that your entity is not a Financial Institution (e.g. you have obtained professional advice to that effect) then you should complete Question 3 (Section 2) of the application form accordingly.

Director or Beneficial Owner who is an individual

If an associated individual (e.g. a Company Director or a Beneficial Owner) is a US resident for tax purposes or a US citizen, a W-8BEN-E form must be completed in the name of the Company.

However, you do not need to provide a W-8BEN-E if:

- You have answered “Yes” to Question 3 or “Yes” to Question 3b, or
- You have answered “No” to Question 4a and Question 4b.

Please refer to the “W-8BEN-E FORMS” section below.

Beneficial Owner that is an entity

If a Beneficial Owner is an entity, you must download and complete the appropriate Supplement Form for that Entity.

Click here to view Supplement Forms on the “Download Forms” page

Authorised Representative

If you have nominated an Authorised Representative and he/she is a US resident for tax purposes or a US citizen, a W-8BEN-E form must be completed in the name of the Company.

However, you do not need to provide a W-8BEN-E if:

- You have answered “Yes” to Question 3 or “Yes” to Question 3b, or
- You have answered “No” to Question 4a and Question 4b.

Please refer to the “W-8BEN-E FORMS” section below.

W-8BEN-E Forms

The W-8BEN-E form is used to certify that the company was not established in the US but has controlling persons who are Specified US persons.

Important notes:

We cannot accept a “W” form that has been corrected by hand or corrective substances (twink, white-out etc). If any corrections need to be made to your form, you must start over and complete a new copy of the form.
We will not accept a "W" form that has been signed and dated more than 3 months prior to the date that the details of the form are recorded in our system.

Click here to download a W-8BEN-E form and guide

Trust application form

Country of Establishment and Country of Primary Place of Business

If the Country of Establishment and/or Country of Primary Place of Business is not New Zealand, the application will be reviewed by Direct Broking before it is processed. Direct Broking reserves the right to refuse an application – particularly an application from an entity that is not a New Zealand tax resident.

Direct Broking will contact you if the application is not approved.

Financial Institution Worksheet

In order to answer Question 3 on the “Trust” application form, you must refer to the Financial Institution Worksheet.

Click here to download the Financial Institution Worksheet

If you have answered “Yes” to any of the questions on the Financial Institution Worksheet, then your company is a Financial Institution. However, if you have reason to conclude that your entity is not a Financial Institution (e.g. you have obtained professional advice to that effect) then you should complete Question 3 (Section 2) of the application form accordingly.

Trustee or Beneficiary who is an individual

If an associated individual (e.g. a Trustee or Beneficiary) is a US resident for tax purposes or a US citizen, a W-8BEN-E form must be completed in the name of the Trust. This also includes the Settlor(s) of your Trust.

However, you do not need to provide a W-8BEN-E if:

- You have answered “Yes” to Question 3 or “Yes” to Question 3b, or
- You have answered “No” to Question 4a and Question 4b.

Please refer to the “W-8BEN-E FORMS” section below.

Trustee that is an entity

If a Trustee is an entity, you must download and complete the appropriate Supplement Form for that Entity.

Click here to view Supplement Forms on the “Download Forms” page

Beneficiary that is an entity

If a Beneficiary is an entity with a Country of Establishment that is New Zealand you do not need to provide further details.

If a Beneficiary is an entity with a Country of Establishment that is not New Zealand, a W-8BEN-E form must be completed in the name of the Trust.

However, you do not need to provide a W-8BEN-E if:

- You have answered “Yes” to Question 3 or “Yes” to Question 3b, or
- You have answered “No” to Question 4a and Question 4b.

Please refer to the “W-8BEN-E FORMS” section below.

Authorised Representative

If you have nominated an Authorised Representative and he/she is a US resident for tax purposes or a US citizen, a W-8BEN-E form must be completed in the name of the Trust.

You do not need to provide a W-8BEN-E if:

- You have answered “Yes” to Question 3 or “Yes” to Question 3b, or
- You have answered “No” to Question 4a and Question 4b.

Please refer to the “W-8BEN-E FORMS” section below.

W-8BEN-E Forms

The W-8BEN-E form is used to certify that the company was not established in the US but has controlling persons who are Specified US persons.

Important notes:

We cannot accept a “W” form that has been corrected by hand or corrective substances (twink, white-out etc). If any corrections need to be made to your form, you must start over and complete a new copy of the form.
We will not accept a "W" form that has been signed and dated more than 3 months prior to the date that the details of the form are recorded in our system.

Click here to download a W-8BEN-E form and guide

Partnership application form

Country of Establishment and Country of Primary Place of Business

If the Country of Establishment and/or Country of Primary Place of Business is not New Zealand, the application will be reviewed by Direct Broking before it is processed. Direct Broking reserves the right to refuse an application – particularly an application from an entity that is not a New Zealand tax resident.

Direct Broking will contact you if the application is not approved.

Financial Institution Worksheet

In order to answer Question 3 on the “Partnership” application form, you must download and complete a copy of the Financial Institution Worksheet.

Click here to download the Financial Institution Worksheet

If you have answered “Yes” to any of the questions on the Financial Institution Worksheet, then your company is a Financial Institution. However, if you have reason to conclude that your entity is not a Financial Institution (e.g. you have obtained professional advice to that effect) then you should complete Question 3 (Section 2) of the application form accordingly.

Partner who is an individual

If a Partner is a US resident for tax purposes or a US citizen, a W-9 form must be completed in the name of that Partner (one form per Partner). In addition, the remaining non-US partners must complete a W-8BEN form (one form per Partner). Lastly, a W-8IMY form must be completed in the name of the Partnership.

You do not need to provide a W-8BEN-E if:

- You have answered “Yes” to Question 3 or “Yes” to Question 3b, or
- You have answered “No” to Question 4a and Question 4b.

Please refer to the “W-8 and W-9 Forms” section below.

Partner that is an entity

If a Partner is an entity, you must download and complete the appropriate Supplement Form for that Entity.

Click here to view Supplement Forms on the “Download Forms” page

Authorised Representative

If you have nominated an Authorised Representative and he/she is a US resident for tax purposes or a US citizen, a W-9 form must be completed in the name of the Authorised Representative. In addition, all of the Partners must complete a W-8BEN form (one form per Partner). Lastly, a W-8IMY form must be completed in the name of the Partnership.

You do not need to provide a W-8BEN-E if:

- You have answered “Yes” to Question 3 or “Yes” to Question 3b, or
- You have answered “No” to Question 4a and Question 4b.

Please refer to the “W-8 and W-9 Forms” section below.

W-8 and W-9 Forms

The W-9 form allows the applicant to provide their Taxpayer Identification Number (TIN) for reporting purposes. Direct Broking requires all US Persons to complete a W-9 form so that their associated accounts may be reported to Inland Revenue using the appropriate TINs.

The W-8BEN form is used to certify that the account holder is a non-US person.

The W-8IMY form is used to certify that the Partnership is not the beneficial owner of the accounts and passes proceeds on to any individual beneficial owners.

Important notes:

We cannot accept a “W” form that has been corrected by hand or corrective substances (twink, white-out etc). If any corrections need to be made to your form, you must start over and complete a new copy of the form.
When completing a W-9 form, please ensure you write the date as Month DD YYYY (e.g. January 1 2000) to avoid confusion between American and New Zealand date formatting.
When completing a W-9 form, if you have changed your surname, for instance, due to marriage without informing the Social Security Administration of the name change, you should enter your first name, the surname shown on your social security card and your new surname. You should then circle the parts of your name that are associated with your social security number (your first name and your previous surname).
We will not accept a "W" form that has been signed and dated more than 3 months prior to the date that the details of the form are recorded in our system.

Frequently Asked Questions

General

The following types of Equity orders are permitted

Tax

US residents for tax purposes, US citizens and/or US entities

Cash Management Account

General

The following types of equity orders are permitted

Tax

The Foreign Account Tax Compliance Act (FATCA)

Instructions for applicants with previous US connections

Applicants with previous US connections

Assistance to complete the "US person" questions in an application form

Individual application form

Joint application form

Company application form

Trust application form

Partnership application form