During 2016 the Australian Securities and Investment Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) introduced a few regulatory changes which will affect the operations of UC Invest in the future.
As a result, we have undertaken an extensive review process to assess the ramifications and opportunities presented by the changing regulatory environment.
While it is disappointing that we have to change our operations, which have been successful for many years, we believe that we can continue to provide the Uniting Church community with a quality investment service.
The most significant amendment that will be made in response to the regulatory changes is to establish a new company, which will be wholly owned by the Uniting Church SA. This new company will hold an Australian Financial Services Licence (AFSL), allowing us to continue providing investment services to the Uniting Church community.
The biggest impact for many of our individual investors will be that the new regulatory environment excludes us from providing at-call services from 1 January 2018. The shortest term that we will be able to provide after this time will be an investment of 31 days.
The good news is we can continue to offer individuals:
So what does this all mean for our personal investors?
If you hold a fixed term investment with us, we will be sending out an offer to transfer your investment to the new company which will hold the Australian Financial Services Licence. To continue investing with us you will need to accept this offer.
If you currently hold an ‘at-call’ account (Money Manager or eSaver), we will offer to transfer the investment to a new 31 day Notice Account in the new company. If you do not accept the offer of a Notice Account or a term investment with the new company, we will be required to close your account before 31 December 2017.
We are hoping that you will want to continue to support the Church, your Church, through investing with us for many years to come. We will be providing you with more information and will be more than happy to answer any questions you may have in coming months.