Converting Wrap products

A product conversion is the process of converting your existing clients from:

• Consolidator/Manager to Consolidator II/Manager II, or
• between Engage and Elevate Investment Menus.

All assets in the client’s account must be available on the Investment Menu of the product being converted to. Any assets that are not available must be sold down or transferred to an SMA available on the new Investment Menu.

Where the assets can be retained, investments will move without any capital gains tax implications.

For more information see Making an internal transfer of SMA assets.

To move clients from closed products to new Consolidator II and Manager II products, or to move clients between Consolidator II – Engage and Consolidator II – Elevate:

1. Log in to Adviser Online
2. From the global search bar, select Accounts from the drop-down
3. Search for your client’s Wrap account number or name
4. Select the Quick links bar on the right-hand side of the Account Overview screen and click Product conversion
5. You can check the status of product conversion requests submitted through Adviser Online via the Request Centre
   • From here you can complete the conversion process. Clients will need to authorise this via either the print, sign, and upload method or email acceptance.
   • Each client account will need to be converted separately and cannot be completed as a bulk transfer. This is because your clients need to authorise the conversion, including the terms and conditions of the new product.

There are some differences in the way fees are calculated between Macquarie Wrap Consolidator/Manager and our newer products, Consolidator II/Manager II. This includes:

• Adviser service fees
• Account keeping fees.

Our Wrap fee calculator can help you assess the suitability of the various Wrap products and potential impact on your clients.

Please note adviser fees that aren’t offered in the new products won’t be carried over.

Your product conversion will occur on the first business day of the month following your request.

We must receive a completed conversion application at least three business days before the end of the month for it to come into effect the first business day of the following month.
 

What you’ll see in Adviser Online

After you submit a conversion application using the product conversion tool in Adviser Online, it will display as completed or resolved. This confirms that you have successfully submitted your conversion request. This isn’t a confirmation of a conversion. New product conversions will occur at the end of the month. You’ll notice from the changed product names that the conversion has successfully taken place.

Once your client converts their account, they’ll keep their account details, including their account number and transaction history. Their scheduled payments and automated transactions also won’t change.

Please note, if you’re converting your client’s account to Macquarie Super Manager II or Macquarie Super Consolidator II, they’ll need to let their employer know the new Unique Superannuation Identifier (USI). 

There are some circumstances where an account conversion can’t be completed. When this happens:

• we’ll notify you (but not your client) by email, and
• the conversion will automatically be attempted the following month.

Some of the reasons your client’s product conversion may fail include:

• Unprocessed disbursement requests – Dividends or interest adjustment/accruals that haven’t been lodged during the transition run time
• Unsettled cash transactions – Dividends or interest adjustment/accruals that have not lodged during the transition run time
• Transactions on or after the transition effective date – Equity/Managed funds buy/sell orders that have not lodged during the transition run time 
• Ineligible assets – The account being converted holds assets that aren’t eligible with the intended account’s Investment Menu. Any ineligible assets must be transferred to an eligible SMA or sold down before a conversion can occur
• Outstanding pension payment – Pension payments have not yet been met or not enough cash for next run date
• Mismatched portfolio pricing – A portfolio exists where the latest available price on the old product does not match the latest available price on the new product
• Closed account – Your client’s account has been closed after transition loaded 
• Outstanding insurance premiums – Requires account to be placed on premium holiday
• If your client has a blocked/frozen asset and would like to transfer to an Engage product, please contact us via live chat.

No, Accumulator accounts can’t be converted like existing Manager or Consolidator accounts can. You will need to close the Accumulator account and open a new account.

The linked insurance will automatically carry over to Consolidator II and Manager II products, as the account details – such as the account number – are retained.

If converting your client from Super Accumulator to the new product, a new account will need to be opened for the client. To maintain the insurance linked to the Super Accumulator account, the new account number needs to be provided to the insurer to ensure premiums are deducted correctly. 

For insurance provider-initiated rollovers, you may have to provide your insurance provider with the new Unique Super Identifier (USI) for the latest Macquarie products.

No, the conversion of a pension account won’t initiate a pension commutation. Your client’s existing pension payment details will continue to be paid on their new pension account.

No, you can’t convert from a Macquarie Manager account to a Macquarie Consolidator account as these products are closed to new accounts (i.e. Series 1 products). You can convert from an existing Macquarie Manager account to a Macquarie Consolidator II or Macquarie Manager II account (i.e. Series 2 products).