Frequently asked questions about UDC investments.
What has been announced about closing UDC Investments?
Recently UDC has undertaken a review of its funding sources. Following this review the current intention is to repay all existing UDC Secured Investments in mid to late 2019 and wind-up the UDC debenture programme.
As a result, the following changes were made to the programme:
- From 16 January 2019, the UDC debenture programme is closed to new deposits. Customers with existing Term Investments which matured on or before 14 February 2019 had the option to reinvest their deposits or have their investment repaid.
- From 15 February 2019, customers with existing Term Investments will no longer be able to reinvest their deposits when they mature and will need to have their investment repaid.
- Existing Call Accounts and Dealer Reserve Accounts will remain open for customers to continue to use.
If a final decision is made to repay all existing Secured Investments, investors will receive an Election Notice giving them the choice to have their remaining UDC Secured Investments either converted into an ANZ Equivalent Product (as defined in the Product Disclosure Statement) or repaid directly to them.
We issued a new Product Disclosure Statement dated 16 January 2019 containing details of these changes and other important information about UDC Secured Investments.
What does this mean for investors?
- No new UDC investments can now be opened. This means no new Term Investments can be opened or existing investments reinvested, and no new Call Accounts can be opened.
- Customers with existing Term Investments maturing from 15 February 2019 are no longer able to reinvest their deposits when they mature and will need to have their investment repaid.
- Existing Call Accounts and Dealer Reserve Accounts will remain open for now and customers can continue to transact as usual, including making deposits.
Once a final decision is made to repay all existing Secured Investments and a repayment date is set, all UDC investors will be sent an election pack outlining their options to convert their remaining Term Investments and Call accounts to a comparable ANZ deposit or have their investment paid out.
Will I receive notification of my maturing UDC Term Investments?
Yes. You will be sent a maturity notice letter approximately two weeks before your maturity date (including investors who previously selected the auto renewal option as automatic reinvestment will no longer occur). This notice contains details of your maturing investment and a Repayment Instructions sheet which you will need to complete and return to us.
How is my maturing UDC Term Investment repaid?
Maturing funds are not automatically repaid to you. First we need you to confirm your correct bank account details for repayment. Many investors have a nominated NZ bank account they agreed with UDC when they set up their investment. If we hold this verified account on our files, it will be shown on the Repayment Instructions sheet sent with your maturity notice, and you can simply check, sign and return this sheet to us ready for repayment into that account at maturity.
If we do not hold a verified bank account for repayment you will need to provide it to us. The bank account must be in the name of the investor(s).
If you also have a UDC Call Account you can have your maturing UDC Term Investments paid to this account by ticking this option on the Repayment Instructions sheet, including the Call account number, signing and returning to us.
What happens if I don’t return my maturity Repayment Instructions sheet?
Your investment will be held earning interest at our “On Demand” interest rate (currently 1% p.a.) until we receive repayment instructions from you.
What happens if my Term Investment maturity date is after mid-late 2019?
If a final decision is made to repay all existing UDC Secured Investments, investors will receive an Election Notice giving them the choice to have their remaining Term Investments either converted into an ANZ Equivalent Product (an ANZ Term Deposit as defined in the Product Disclosure Statement) or repaid directly to them.
UDC Call Account investors will have the choice to either convert to an ANZ Equivalent product (an ANZ Online Account), or have their funds repaid directly to them.
A comparison of the key features of UDC Secured Investments and ANZ Equivalent products is provided in section 9 of the Product Disclosure Statement.
I’m not sure what to do with my money now – what can I do?
We suggest you talk to ANZ Bank about their term deposit and investment options. To find out more call ANZ directly on 0800 269 296 or +64 4 470 3142, or visit anz.co.nz/termdeposit or anz.co.nz/savings.
Another option is to talk to your investment adviser.
Why are UDC closing the debenture programme?
UDC has strong growth plans and is reviewing its funding structures to ensure it has the best funding options to support that growth. The UDC Debenture programme may not offer the flexibility required.
Is this change because ANZ are preparing to sell UDC or pursue an IPO?
No. ANZ announced at the end of October 2018 that they are not actively looking at either of these options and are focusing on growing the UDC business.
How will UDC be funded now?
UDC has a strong funding line in place with ANZ. There are a number of other options being explored to ensure UDC have the ability to access sufficient funding to support our growth plans.
Will UDC still focus on New Zealand?
Yes, UDC will continue to focus on lending to fund assets across a diverse range of industry sectors throughout New Zealand.
What is the impact on staff?
Our Investment Services team will continue to look after the needs of our investment customers until the programme is closed and will then have the option to take up another role within the business.
Can I withdraw my investment before its maturity date?
As UDC is winding up the debenture programme, we will allow early withdrawal of Term Investments before the maturity date without penalty.
UDC Call Account investors can withdraw all or part of their investment at any time. The minimum withdrawal is $500. An investor must maintain a minimum investment of $5,000. There are no restrictions on amounts you can deposit or withdraw when using UDC Live.
Can I have my investment repaid to an overseas bank account?
Yes, however, we prefer to repay your investment to a New Zealand bank account. Dealing with international banks takes much longer and can cause a delay in receiving funds. International transaction fee(s) will be incurred.
Can UDC repay my investment by cheque?
UDC is unable to provide payments by cheque.
Can I use a joint account as my nominated account?
Yes you can.
How do I change my nominated account?
You will need to put the instruction in writing signed by all account holders and send the original instruction along with verified bank account details to UDC Investments at PO Box 91145, Victoria Street West, Auckland 1142.
Please note the account must be in the same name as the investor(s), not a third party.
How do I provide verification of a new nominated bank account?
Please provide one of these as proof of your new bank account number:
- An original pre-printed deposit slip
- An original bank statement
- Original bank stamped confirmation of the account number
Please post the original document to UDC (with signed instructions as above), or take it to any ANZ branch to verify the original and email a certified copy to email@example.com with your instructions.
How can I update my contact details?
If you have an existing UDC investment, you can use this form to change your details, or you can call our Investor Services team on 0800 652 832. You can also update your contact details using UDC Live.
Can I view my transactions online?
Yes. UDC Live lets you access your UDC Call and Secured Term Investments online. UDC Live gives you up-to-date information on your deposits, lets you transact on your Call account and arrange repayment of matured Term Investment funds. It also allows you to change your contact details with us. UDC Live is a free password protected service.
How do I access UDC Live?
New users: If you’d like to have access to your investments through UDC Live, please call Investor Services on 0800 652 832 on business days between 8.00am and 5.00pm.
Existing Users: You can access UDC Live via the UDC Live icon on the front page of the UDC website or by typing https://nz.udclive.co.nz/external/login into your internet browser.
What is the minimum Call Account balance?
Minimum balance: $5,000 unless we agree otherwise.
How do I deposit money into my UDC Call Account?
All electronic transfers should be made to UDC’s bank account: 01-0564-0070266-00. Make sure your UDC Call Account number (or IRD number) is loaded as the "payee reference".
Telephone and Internet Banking transfers
Telephone or Internet Banking transfers can be arranged through your nominated bank account as a bill payment option for immediate clearance of funds.
Please call us on 0800 652 832 to request a direct debit form. Once a direct debit is set up, you can call us directly and ask for funds to be transferred from your nominated bank account to your UDC Call Account. Deposits require three working days clearance.
You can contact your bank to set up an automatic payment ensuring your UDC Call Account number is loaded as the "payee reference". Once your automatic payment is set up, three working days are required for clearance.
Cheques can be posted to UDC Finance Limited, PO Box 91145, Victoria Street West, Auckland 1142 with your UDC Call Account number. Cheque deposits may also be made at any ANZ branch. Please note, five working days clearance is required for cheques. Cheques should be made out to "UDC Finance Limited".
These may be made at any ANZ branch of ANZ Bank New Zealand Limited to UDC's bank account 01-0564-0070266-00. Remember to ensure that your UDC Call Account number is included.
What is the account number for electronic transfer or Internet banking payments?
Call Account 01-0564-0070266-000
How do I make a withdrawal from my UDC Call Account?
Phone us on 0800 652 832 on business days between 8am and 4:30pm. The funds will be available in your nominated account the next business day. The minimum withdrawal is $500. An investor must maintain a minimum investment of $5,000. If transactions are made via UDC Live there are no restrictions on amounts you can deposit or withdraw.
Alternatively, put the instruction in writing and either post the original instruction to UDC Investments (PO Box 91145, Victoria Street West, Auckland 1142) or email a verified scan of your original instructions from your nearest ANZ branch to firstname.lastname@example.org.
Is my interest taxed?
Interest earned on UDC Secured Investments is taxable. Tax or Levy is deducted before interest is paid or compounded.
What is an Approved Issuer Levy (AIL)?
If you are a non-resident, you can agree to have deducted the cost of the Approved Issuer Levy (AIL). In this case we will deduct the AIL from the interest to be paid or credited to you and non-resident withholding tax will not be deducted.
As a non-resident investor, you are required to provide us with your overseas address and where applicable, to complete an AIL application which is available on request from us.
What is an On Demand Rate?
The On Demand Rate is the interest rate applied to an investment in certain situations referred to in the current Product Disclosure Statement, in particular, where an investment falls below the minimum required balance and in some circumstances where we haven’t received your maturity instructions. The On Demand Rate is lower than the call interest rate provided to UDC Call Investors (currently our On Demand Rate is 1% p.a.).