Beneficial Owner / Shareholders
To comply with AML/CTF Law the investor is required to disclose its beneficial owners. ‘Beneficial owner’ means an individual who ultimately owns or controls, directly or indirectly, the Investor. ‘Control’ includes control as a result of, or by means of, a trust, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights, and includes exercising and control through the capacity to determine decisions about financial and operating policies. ‘Owns’ means ownership, either directly or indirectly, of 25% or more of the Investor.
The most common status types as follows:
These are accounts that the Fund Administrator will need to report annually to ATO/IRS. The Fund Administrator will flag these in the registry system and use them to produce a report compliant with ATO guidelines. The accounts that will be reported include:
An account holder who is a US citizen or taxpayer. Includes US entities and other qualifying persons such as Green Card holders.
Specified US person
A US citizen or US resident for tax purposes, privately owned US Corporation or US Owned Foreign Entity.
FFI (Foreign financial institution)
FFI that enters into an agreement with the IRS to undertake certain due diligence, withholding and reporting requirements for US account holders.
Nonparticipating FFI is an entity that does not comply with FATCA and generally will not fall into any of the below categories:
NFFE (Non-financial foreign entity)
NFFE is any non-US entity that is not an FFI (Foreign financial institution).
Deemed-compliant FFIs (Non-reporting FFI and exempt beneficial owners)
The following non-reporting entities are treated as exempt beneficial owners or deemed-compliant FFIs, as the case may be, and the following accounts are excluded from the definition of Financial Accounts:
The Foreign Account Tax Compliance Act (FATCA) was introduced in 2010 and is a United States regulatory requirement that aims to deter tax evasion by US taxpayers. From 1 July 2014 under FATCA, financial institutions (including managed investment funds) are required to identify investors that hold certain "financial accounts" and are US persons, or that are entities with substantial US owners.
Information on accounts and investments held by these investors must then be reported to the US Internal Revenue Service (IRS) via the Australian Taxation Office (ATO) in Australia.
FATCA self-certification must be completed by all investors to declare their US status except for regulated super funds (i.e. Self-Managed Superannuation Funds, APRA regulated super funds, government super funds or pooled superannuation trusts).
From July 1, 2017 the Common Reporting Standard, (CRS) a global standard for the collection and exchange of financial account information, applies in Australia. From that date, each time an application is made for a fund the investor will be required to self-certify their tax residency or tax status as part of the application process.
If the investor is a foreign tax resident, they are required to supply their Tax Idendification Number (TIN) or equivalent if they have one. Where the investor is an entity certain associated individuals, such as beneficial owners or controllers, will also be required to provide their tax status. This information is required to be reported to the ATO by the fund's Trustee or Responsible Entity for passing on to the relevant offshore tax authority.
To comply with AML/CTF Law we require you to disclose whether you are or have an association with a politically exposed person (PEP).
A PEP is an individual who holds a prominent public position or function in a Government body or an international organisation in Australia or overseas, such as a Head of State, or Head of a Country or Government, or a Government Minister, or equivalent senior politician. A PEP can also be an immediate family member of a person referred to above, including spouse, de-facto partner, child and a child’s spouse or a parent. A close associate of a PEP, i.e. any individual who is known to have joint beneficial ownership of a legal arrangement or entity is also considered to be a PEP.
Where you identify as, or have an association with a PEP, we may request additional information from you.
Source of Funds
As part of the Fund Manager’s or Responsible Entity’s obligations to ‘know their customer’ and to assess money laundering and terrorism financing risk under their AML/CTF program, the AML/CTF Law now requires them to ask about the Investor’s (and of the Investor’s beneficial owners) income and assets available for investment and the sources of funds, including their origin.
As you proceed through the application form, all data collected will be saved.
The next time that the Investors apply for any of the Funds that are available through the system, they will be given the option to pre-populate the new application with data from any of the previous applications, thereby saving time in completing the form and eliminating key-stroke errors.
The application amount and execution pages will not be pre-populated, these fields will need to be completed and terms accepted for the new application.
An agent is an individual or entity that has authority to act on behalf of the investor, either via a Power of Attorney (or similar authority) or an Authorised Representative (Individual or Company) Form.
All agents will be required to provide proof of authority with the Investor's application, such as the current Power of Attorney or Authorised Representative Form.
Two factor Authentication is an added layer of security within Pinnacle.
It is a process with two stages to verify the identity of a person trying to access Pinnacle which requires:
Each factor must be validated for authentication to occur.
The first step is to log in using the username and password. This makes use of the knowledge factor.
The second step requires an email address or mobile phone number which makes use of the possession factor. A security token will be sent to the email address or mobile phone number, which will need to be entered into Pinnacle in order to proceed.
The purpose of using two-factor authentication is to prove that users are a real person and not a robot, reduce the risk of identity theft, online fraud and phishing scams.
You will need to register prior to filling out your first application form on the system. This can be done by providing your name and an active email address, where you will be sent an activation email.
When you complete each application via the system, as a secondary security measure, you will need to provide your email address or mobile phone number to receive a security code and enter that code to proceed through the form. This two-factor identification process is to deter unwanted access to the system.
The person registering and completing the form does not have to be the applicant. You might be a financial advisor, have a power of attorney or be an authorised representative.
Payment of your investment can be made in 4 ways:
Relevant details for all options will be provided on the checklist at the conclusion of the application form.
Please ensure that you have read and understood the offer documents, and in particular the terms and conditions surrounding the deadlines for accepting applications and cleared funds. The Responsible Entity does not accept responsibility for any loss caused as a result of non-receipt, missed deadlines or non-acceptance of any application or cleared funds.
All applications must include details for a current bank account, in the name of the Investor, for distributions and redemption payments. The Fund Administrators may ask for proof of bank account details in the form of a bank statement.
If paying for your Investment via EFT or Bank Deposit, you must send a copy of the payment receipt to the Fund Administrator. This may be done via our internal message system.
Please ensure that all data is entered into the system carefully and check each page before you proceed to the next.
Data may only be changed prior in the data collection module, after that it will be locked. If you have made an error, you can delete any application that has not been submitted and start a new application, or contact the Administrator (using the button on the Applications Dashboard) and advise them of the error.
As you are filling out the data collection module, you can select the PREVIOUS PAGE button at the bottom of each page to go back and check or change information.
Alternatively, from the Applications Dashboard, you can select "Show details" for the application that you would like to change.
From there, you can either select the "In Progress/Complete" icon, or "Continue Application". This will take you back to the beginning of the application form.
You may use the breadcrumbs at the top of the form to take you directly to a particular section, or use the "Next page" buttons to move through the form and check all the fields.
If at any stage of the process, you need assistance, please do not hesitate to call Pinnacle on 1300 010 311.
A charitable trust is a trust for a purpose, not for a person.
Most charitable trusts fall under the following categories:
The term family trust refers to a discretionary trust set up to hold a family's assets or to conduct a family business. Generally, they are established for asset protection or tax purposes.
An Australian family trust:
A family trust has many other potential benefits, including avoiding issues such as challenges to the will following a death of a senior member of the family.
The terms and conditions under which a family trust is established and maintained are set out in its deed.
A Regulated Trust is a trust domiciled in either Australia or a foreign country that is regulated by a relevant regulatory body.
Proof of Identity documents will need to be provided and can be downloaded for a registered scheme, regulated trust or government superannuation fund after conducting a search of the ASIC, ATO or relevant regulator's website (www.abn.buslness.gov.au).
Like other superannuation (super) funds, self-managed super funds (SMSFs) are a way of saving for retirement. The difference between an SMSF and other types of funds is that, generally, the members of an SMSF are also the trustees. This means the members of the SMSF run it for their own benefit.
When establishing a SMSF, you become a trustee of the fund (or a director of a company that is a trustee). In either case, you will be responsible for managing it according to its trust deed and the laws and rules that apply to SMSFs. The key principle is that you run your SMSF for the sole purpose of providing retirement benefits to members.
The Trustee of the SMSF needs to manage the fund’s investments in the best interests of fund members and in accordance with the law. The SMSF's investments must be separate from the personal and business affairs of fund members, including the Trustee.
The ATO is the regulator of SMSFs. Information on the management of SMSFs are on the ATO website.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 ("AML Act") and other applicable anti- money laundering and counter terrorism laws, regulations, rules and policies which apply to the Responsible Entity ("AML Requirements"), regulate financial services and transactions in a way that is designed to detect and prevent money laundering and terrorism financing. The AML Act is enforced by the Australian Transaction Reports and Analysis Centre ("AUSTRAC").
In order to comply with the AML Requirements, we as the Responsible Entity are required to, amongst other things:
We reserve the right to request such information as is necessary to verify the identity of an applicant and the source of the payment. In the event of delay or failure by the investor to produce this information, we may refuse to accept an application and the application monies relating to such application or may suspend the payment of withdrawal proceeds if necessary to comply with AML Requirements applicable to them. Neither the Responsible Entity nor their delegates shall be liable to the Applicant for any loss suffered by the Applicant as a result of the rejection or delay of any subscription or payment of withdrawal proceeds.
We have implemented a number of measures and controls to ensure we comply with their obligations under the AML Requirements, including carefully identifying and monitoring investors. As a result of the implementation of these measures and controls:
We have certain reporting obligations under the AML Requirements and are prevented from informing you that any such reporting has taken place. Where required by law, we may disclose the information gathered to regulatory or law enforcement agencies, including AUSTRAC.
We are not liable for any loss you may suffer as a result of any compliance with the AML Requirements.
There are two stages in the Proof of identity module
The first stage is an On-Line Investor Verification procedure.
The verification system will incorporate the data (name, DOB, address, phone number) that has already been entered in the application form, and will conduct a background check through the White Pages, Electoral Roll and other databases. Investors will be asked for details of documents such as a drivers licence or passport, and will usually receive a confirmation before proceeding to the second stage (Supply of documents) and then the submission module.
Investors who do not pass the On-Line Investor Verification procedure, will be required to send certified copies of proof of identity documents via post to the Fund Administrator.
Proof of identity will be required for all persons and entities named in the application form.
All investors will be asked to provide original certified copies of certain forms of identification, as requested in the data collection module.
Forms of identification may include Trust Deeds, Company Registration, Partnership Documents, or may be as simple as Drivers Licence or Passport.
Where acceptable, documents may be uploaded via our secure server in Stage 2 of the Proof of Identity module, or may be asked to post them to the Fund Administrator. Details will be provided on the checklist at the conclusion of the application form.
For investors who are retail clients (as defined in the Corporations Act 2001) a 14 day cooling off period applies, during which time, investors may change their mind about investing in the Fund and request that application money be returned. The 14 day cooling off period commences on whichever is the earlier out of:
1. confirmation of the application form being received; or
2. the fifth Business Day after the day when the Units were issued.
Cooling off rights do not apply to Wholesale Clients or where units are issued to investors as a result of distribution reinvestments.
A retail client may exercise his/her cooling off rights by notifying the Fund Administrator in writing.
A retail client is entitled to the return of his/her application money adjusted for any transaction costs and any increase or decrease in the value of their investment incurred as a result of the application for, and termination of, the investment. Any contribution fees or taxes will be refunded.
All investors are advised to refer to the offer documents for the fund in which you have invested and follow the instructions provided if you wish to exercise your cooling off rights.
Please refer to the Fund's offer documents for processing and cut-off times.
Applications will not be considered complete until all documents and payment have been received by the Fund's Administrator, Proof of Identity confirmed and the appropriate anti-money laundering checks have been finalised.
Please ensure that you have read and understood the offer documents and in particular the terms and conditions surrounding the deadlines for accepting applications cleared funds. The Responsible Entity does not accept responsibility for any loss caused as a result of non-receipt, missed deadlines or non-acceptance of any application or cleared funds.
Applications may also be accepted or rejected at the discretion of the Responsible Entity.
At the conclusion of the Proof of Identity module, investors will submit a digital copy of the application.
Submitting the application will send notification of the application to the Fund Administrator, who will be able to access the application for processing via their appropriate systems.
Following online submission, all investors will be given a checklist of next steps that will provide further instruction on where to send any necessary paperwork and proof of payment.