How to invest in Direct Investments
You can establish a DIO account online & start trading in just a few days. Learn how to get started, how to make transactions, and how to transfer your DIO to your pension account.
How to open your DIO account and start trading
1. Open your Direct Investment account
You need to be a legalsuper member to open a DIO. If you're not already a member join here, otherwise follow these steps:
- Read the relevant section of legalsuper’s Product Disclosure Statement;
- login to MemberAccess and go to the ‘Investments’ tab; and
- enter your details to register a Free or Full Access Direct Investment account.
- If you wish to trade as a Full Access user, transfer money across to your Cash account before trading.
2. Transfer funds into your Direct Investment Cash account
If you have chosen to become a Full Access User, you will be requested to transfer cash from your other legalsuper investments to your Direct Investment account.
The Direct Investment Cash account will be used to settle fees and costs for the purchase of investments, brokerage and some account fees and for any interest, dividends and tax to be paid into or out of the account. The Cash account will increase with all dividends, distributions, interest, maturities from Term Deposits and the proceeds of any sale of investments. The impact of pending settlements, e.g. unsettled trades and fees may reduce the available cash to make further investments. A minimum balance of $250 must be maintained and any interest earned in the DIO Cash account is calculated daily and paid monthly in arrears on or around the first business day of the following month.
To transfer funds to your Cash account select ‘Transfer In’ and enter the amount you wish to transfer to your DIO account.
Transfers made before 4.00pm (AEST) will take effect two national business days after receipt of your request. You will not be able to transact until your transferred funds have been credited into your Cash Account.
Once the funds have been received into your Cash account, you can commence purchasing shares, ETFs, LICs and/or Term Deposits.
You must retain at least $250 in your Cash Account at any point in time so it is important to transfer enough funds to cover this minimum and any fees and costs that may apply, and any additional amount you wish to invest.
3. Start direct investing
Once a minimum balance of $250, plus enough money to cover the acquisition of any new investments, and any related fees and taxes is credited to your DIO Cash Account, you can start investing.
Transferring your Direct Investments to a new legalsuper account
If you are a member of legalsuper with some of your account invested in Direct Investments, you may be able to transfer your Direct Investments from your existing legalsuper account to commence a new legalsuper account without having to sell down investments.
Please note Direct Investments are not available to Transition to Retirement Pension members & transfers for members with Term Deposits are not permitted.
|Existing legalsuper account||New legalsuper account|
What are the benefits of transferring Direct Investments?
If you are able to transfer your Direct Investments account, the benefits may include:
• no liability for capital gains tax on unrealised gains on assets transferred and subsequently sold;
• no ‘out of market risks’* associated with selling and repurchasing investments; and
• no brokerage costs or early redemption fees.
* Purchase price of a pension includes the full value of all assets held by the DIO account on the date of transfer of the DIO account
- the transfer will not result in less than $3,000 being invested in your non-Direct Investment Option investments;
- that there are no pending cash transfers, are no unsettled trades in the member’s account, no stocks with a mandatory open corporate action or an election on a non-mandatory corporate action, and there are no share holdings in delisted companies; and
- you must accept the Terms and Conditions of the transfer detailed below.
Terms and conditions
In making a request to transfer an existing legalsuper Direct Investment Option account (DIO account) to a new legalsuper Pension without that account being closed, you must agree to the following terms and conditions.
- All transfer requests must be made on a valid Pension application form submitted to commence a legalsuper Pension. Requests are not accepted in any other manner. Transfer requests cannot be made at an existing legalsuper Pension.
- For Pension applications that include a transfer request of a DIO account, the Purchase Price of the Pension includes the full value of all assets held by the DIO account on the date of transfer of the DIO account.
- Transfers only apply to a full transfer of all assets held in the DIO account. Partial transfers are not accepted. Multiple DIO accounts cannot be combined.
- Transfers are not accepted from (or to) other superannuation or pension funds and cannot be a transfer to another person.
- Transfer requests once made cannot be revoked.
- A failure of the transfer will result in the decline of the Pension application. Declined Pension application monies (other than the DIO account) will be held in the legalsuper fund bank account for a maximum 28 days to allow a new Pension application to be made. Monies held in the legalsuper bank account do not receive interest and interest earned is retained by legalsuper to cover operational expenses.
- On transfer, all: non-elected non mandatory corporate actions are forfeited; dividend reinvestment elections are revoked and if required, will need to be re-elected by the member; and term deposit maturity elections will carry forward.
- Applicants are responsible for ensuring that their transfer request meets the transfer eligibility rules on the day that the Pension application is made.
- Applicants agree not to issue any transaction instructions on their existing DIO account from the date the Pension application is signed until either the transfer is rejected or the transfer to the new Pension account is completed and confirmed in writing to the applicant.
- The commencement date of the Pension is the date of transfer of the DIO account assets.
- Applicants are responsible for applying for a new MemberAccess for their Pension membership once the Welcome letter is issued.
Other Important Information
Once a transfer request is submitted, access to the Direct Investment Option portal will be suspended for approximately 6 working days (NSW and Vic) while the transfer is completed. Once completed, access to the DIO account will be via MemberAccess for the new Pension membership number.
Following the commencement of the Pension and completion of the DIO account transfer, members who retain a legalsuper superannuation membership will be unable to open another Direct Investment Option account for that membership number. A new superannuation membership number will be required.
Transfers of a DIO account from Pension account to a superannuation account are not offered. On commutation of that new Pension account, all assets of the DIO account must sold and the account closed. Pension accounts cannot be commuted if the DIO account cannot be closed.
The transfer requests only applies to a DIO account held in a legalsuper superannuation membership to a new Pension membership for the same member and that one DIO account.