InvestSMART

Fundlater Terms & Conditions

Key information:

  • Fundlater allows you to make a $10,000 minimum investment in an InvestSMART Professionally Managed Account (PMA) with an initial investment of $4,000 (Initial Investment) and 20 monthly loan repayment instalments of $325 (Loan Instalments), which includes a $25 per month facility fee (Facility Fee).
  • InvestSMART will lend you the balance of $6,000 (Loan Amount) on a full non-recourse basis.
  • Your first Loan Instalment payment is due one month after you make your investment. The next 19 Loan Instalments are due every month after your first instalment.
  • If you miss a Loan Instalment, we will contact you and allow you 10 business days to pay the missed Loan Instalment. If that is not received by us, we will redeem your investment at market value less brokerage costs and deduct any outstanding instalments at that time and return the balance to you. If the market value of your portfolio is less than the total value of outstanding instalments you will not owe InvestSMART any money and your account will be closed, and this contract terminated.
  • If you miss a Loan Instalment, your credit rating and credit score may be affected in a way that impacts your ability to obtain further credit.
If you use the Fundlater facility, then the Fundlater terms and conditions set out in this document forms a contract between you and InvestSMART Financial Services Pty Ltd ACN 089 038 531 AFSL 226 435. Before you proceed, please carefully consider the Fundlater terms and conditions and whether you will be able to pay the Loan Instalments when they are due.

Terms and Conditions

  1. InvestSMART Fundlater is a fixed sum credit arrangement of $6,000 (Loan Amount), granted to you, the investor, (you) by InvestSMART Financial Services Pty Ltd ACN: 089 038 531 AFSL 226 435 (InvestSMART, us or we) pursuant to these terms and conditions, which will form a binding contract between you and InvestSMART.
  2. Your Initial Investment of $4,000 must be made into one and only one Eligible Portfolio available through the InvestSMART Professionally Managed Account (PMA) under the product disclosure statement issued on 1 November 2018 (and updated on 1 May 2022)
  3. InvestSMART Fundlater allows you to repay the fixed sum loan in 20 instalments.
  4. The fixed sum credit of $6,000 is available only for investments in Eligible Portfolios that you make in your PMA account.
  5. Eligible Portfolios are those investment portfolios which may be invested in using InvestSMART Fundlater and excludes other investment portfolios which may be available from InvestSMART. Currently the Eligible Portfolios are Balanced, Growth, High Growth, and Ethical Growth. Eligible Portfolios are updated on our website www.investsmart.com.au/fundlater from time to time. Your investment in an Eligible Portfolio will be the Collateral for the Loan Amount.
  6. The payment schedule for the Initial Investment ($4,000) and Loan Instalments ($325 per month including $25 monthly facility fee) for InvestSMART Fundlater is set out in the table below (Loan Repayment Instalment Plan).
    Loan Repayment Instalment Plan
    Date Initial Investment and Loan Instalments Facility Fee Fundlater Loan Balance
    Month 0$4,000$6,000
    Month 1$325-$25$5,700
    Month 2$325-$25$5,400
    Month 3$325-$25$5,100
    Month 4$325-$25$4,800
    Month 5$325-$25$4,500
    Month 6$325-$25$4,200
    Month 7$325-$25$3,900
    Month 8$325-$25$3,600
    Month 9$325-$25$3,300
    Month 10$325-$25$3,000
    Month 11$325-$25$2,700
    Month 12$325-$25$2,400
    Month 13$325-$25$2,100
    Month 14$325-$25$1,800
    Month 15$325-$25$1,500
    Month 16$325-$25$1,200
    Month 17$325-$25$900
    Month 18$325-$25$600
    Month 19$325-$25$300
    Month 20$325-$25$0
  7. You acknowledge and agree that you are in a satisfactory financial position to pay the Loan Instalments when they are due as set out in the Loan Instalment Repayment Plan and will notify us immediately if these circumstances change.
  8. You acknowledge and agree that InvestSMART Fundlater falls under the exemption set out in section 6 of the National Credit Code which means that the National Consumer Credit Protection Act 2009 (Cth) does not apply to this Contract and InvestSMART Fundlater.
  9. InvestSMART Fundlater is available to natural persons residing in Australia who have a valid and verifiable Australian residential and email address, mobile telephone number and hold an Australian bank account which can be direct debited or used for Bpay payments for the duration of the InvestSMART Fundlater Loan Repayment Instalment Plan.
  10. Persons under 18 years of age: Only persons of at least 18 years of age may apply for InvestSMART Fundlater. If a parent or guardian wishes to apply for InvestSMART Fundlater on behalf of their child, investments are made in the name of the parent or guardian (who must be a natural person over the age of 18) as trustee for the person under the age of 18. The InvestSMART Fundlater loan is in the name of the parent or guardian as trustee for the person under the age of 18
  11. Joint Holders: If two or more individuals apply for InvestSMART Fundlater (Joint Holders), then those same individuals must have a joint account in an Eligible Portfolio. The Joint Holders are taken to have both agreed to the InvestSMART Fundlater Loan Repayment Instalment Plan under these terms and conditions and all Joint Holders are jointly and severally liable for repayment of the Loan Instalments.
  12. Our decision to lend to you under this Contract is based on, amongst other things, our assessment of your credit worthiness and the information you provided us with in your application.
  13. Execution and entry into force of this Contract
    • By entering into this Contract, you expressly accept that the performance of this Contract starts immediately after your acceptance.
    • InvestSMART reserves the right to grant or refuse InvestSMART Fundlater at its sole discretion and for any reason, including on the basis of our assessment of your credit worthiness.
    • Without limiting the above, if your application to invest in the InvestSMART PMA is rejected or fails, your application for InvestSMART Fundlater will be declined.
    • The Loan Amount made available under this Contract will be paid directly to your PMA.
    • Details of the security interest we have over the Collateral may be noted on the register established under the Personal Property Securities Act 2009 (Cth).
    • Before you proceed, please carefully consider the Fundlater terms and conditions and whether you will be able to pay the instalments when they are due.
  14. Loan Instalments
    • You are required to make an ongoing contribution to your PMA of at least $325 every month as long as your Fundlater loan is outstanding.
    • You can increase the amount you pay in your loan repayment instalment to reduce your outstanding Fundlater Loan Balance earlier. You may do this by increasing your monthly ongoing contributions. All additional contributions to your PMA will be automatically debited each month to reduce your outstanding Fundlater loan.
    • You can also make additional payments to your PMA at any time to reduce your outstanding Fundlater Loan Balance earlier. You may do this by making additional contributions to your PMA at any time. All additional contributions to your PMA will be automatically debited against your Fundlater loan.
    • Any additional contributions to your PMA after your Fundlater Loan has reduced to zero will be automatically invested in your Eligible Portfolio.
    • There will be no penalty or other fees for paying off your outstanding Fundlater Loan Amount earlier. As soon as your outstanding Fundlater Loan Amount has been repaid no further monthly Facility Fees will be charged.
    • On payment of your Loan Instalment, your Loan Instalment will be automatically debited from your PMA. Any additional contributions made by you to your PMA will be automatically applied:
      1. first, to past Loan Instalments which are due but unpaid (if any); then to
      2. the current Loan Instalment being due; and then to
      3. future Loan Instalments in the date order that they fall due.
    • If ongoing and additional contributions to your PMA in any month falls below the minimum Loan Instalment, we will be unable to deduct the Loan Instalment from your PMA. The amount received will be held as cash in your PMA, and you will be treated as if you have missed a Loan Instalment. If you miss a Loan Instalment, we will contact you and allow you 10 business days to pay the missed payment. If that is not received by us, we will redeem your investment at market value less brokerage costs and deduct any outstanding instalments at that time and return the balance to you. If the market value of your portfolio is less than the total value of outstanding instalments you will not owe InvestSMART any money and your account will be closed, and this contract terminated.
    • Missing a Loan Instalment could have adverse consequences, including compulsory redemption of your PMA and/or reporting the default information to a Credit Reporting Body which may impact your ability to obtain, and the cost of, further credit.
  15. Security Interest
    • By entering into the Contract, you acknowledge and agree that this document creates a security interest.
    • You must do all things requested by us to ensure that the security interest created under this document is enforceable, perfected and otherwise effective. You agree to enable us to exercise our rights in connection with the security interest and accept that you must pay all costs and expenses incurred by us in exercising our rights.
  16. Our liability
    We shall not be responsible if you are unable to use InvestSMART Fundlater or should we be unable to carry out any of our obligations under this Contract due to:
    1. our compliance with applicable laws or regulation; or
    2. abnormal and unforeseeable circumstances beyond our reasonable control, the effects of which would have been unavoidable despite our efforts to the contrary.
  17. Communication
    • Any notice to be provided to you by us under this Contract will be exclusively sent by posting it on the InvestSMART website(s) (including the posting of information which is only accessed by logging into your PMA), emailing it to the email address listed in your PMA, calling you by telephone, or sending you a “text” / SMS message.
    • If we have reasonable grounds for believing that you have changed your email and/or postal address, for example because our correspondence is returned to us, we may instruct agents to trace you.
    • You can contact us online at www.investsmart.com.au by selecting ‘Contact us’ for telephone and email details.
  18. Termination
    • This Contract shall automatically terminate once the Fundlater Loan Amount is repaid in full.
    • We may terminate this Contract and InvestSMART Fundlater and demand immediate repayment of the Fundlater Loan Amount if:
      1. we find out that our decision to lend to you was based on inaccurate, misleading or incomplete information;
      2. you breach this contract;
      3. you break the law or you appear on any sanctions list that we monitor;
      4. we have a reasonable belief that you no longer have the ability to control your PMA, including if you are deceased or of unsound mind;
      5. you have broken the terms of another contract with us;
      6. we reasonably believe you no longer reside in Australia; or
      7. if you close or attempt to close your PMA account.
    • To the extent permitted by applicable law, we may also ask you to pay any reasonable losses and costs that we incur as a result of you breaching this Contract.
    • You may terminate this Contract at any time by repaying the outstanding Fundlater Loan Balance due at that time within the conditions set out above.
    • In the event of Termination, we will redeem your investment at market value less brokerage costs and deduct any outstanding Fundlater Loan Amount at that time and return any remaining funds to you. If the market value of your portfolio is less than outstanding amounts you will not owe InvestSMART any money and your account will be closed.
  19. General
    • The laws of New South Wales apply to this Contract and any dispute shall be subject to the non-exclusive jurisdiction of the courts of New South Wales.
    • This Contract contains the whole agreement between us and you regarding InvestSMART Fundlater and supersedes and replaces any prior written or oral agreements, representations or understandings between us and you in relation to this agreement. Each party confirms that it has not entered into this Contract on the basis of any representation that is not expressly incorporated in this Contract.
    • You may not transfer or assign any rights or obligations you have under this Contract without InvestSMART’s prior written consent.
    • InvestSMART may transfer or assign this Contract or any right or obligation under this Contract at any time and you consent to such transfer or assignment.
  20. Privacy and Complaints
    • As an InvestSMART customer, or when you use our services or access our sites, you consent to our use of your personal data in accordance with our Privacy Statement.
    • We are committed to dealing with customer complaints fairly and resolving issues in accordance with our complaints handling processes and policies and relevant regulatory standards.
    • If you have a complaint about our services or believe your PMA may be subject to an unauthorised transaction, account takeover or other type of fraudulent activity, you should contact us immediately.
    • InvestSMART Financial Services Pty Ltd is a member of the Australian Financial Complaints Authority (AFCA), member number 10433. If you are not satisfied with the handling of your complaint, please contact them on 1800 931 678 or complaints@afca.org.au.