Hardship claims for suspended APN Funds Management funds
APN Funds Management Limited (APN FM) has received relief from the Australian Securities
and Investments Commission (ASIC) to facilitate withdrawals from the following suspended
funds (for which it acts as responsible entity) to investors suffering from hardship:
(a) APN Property for Income Fund ARSN 090 467 208;
(b) APN Property for Income Fund No 2 ARSN 113 296 110.
Generally, hardship withdrawals will only be permitted based on the following circumstances:
1) severe financial hardship; or
2) unemployment; or
3) compassionate grounds; or
4) permanent incapacity,
but only where there are sufficient remaining liquid assets for the day to day operation
of the fund.
Making a hardship claim
Different application processes will apply depending on the investor type.
1. Indirect investors
Where a person has invested indirectly through an entity such as a superannuation
fund, master trust or wrap account (also referred to as an Investor Directed Portfolio
Service, IDPS), please refer to the documentation and processes pertaining to the
A hardship application must be made on behalf of the person who is seeking a withdrawal
based on hardship. This is done by completing the appropriate withdrawal application
form and attaching it to the hardship statutory declaration completed by the individual
experiencing the hardship.
The superannuation fund, master trust or wrap account investor must comply with
any obligations under the terms of the relevant trust or arrangement under which
it acts and all other applicable laws.
2. Direct investors
For direct investors in the Funds, please note that an investor must have exhausted
all other avenues to access sufficient funds including applying for financial hardship
through the investor’s superannuation fund.
This information is to be attached to a regular withdrawal application form for
the relevant APN FM fund and mailed to APN FM.
An investor suffering from hardship must:
1. Complete a statutory declaration setting out the grounds for making the application
(based on one of the below mentioned grounds)
2. Provide the required evidentiary proof to confirm the declaration (details are
provided in the statutory declaration form).
3. Complete a withdrawal application form for the relevant APN FM fund.
Please forward documents to:
APN Funds Management Limited
PO Box 18011, Melbourne Collins Street East, Victoria 8003
Amount of withdrawal
The maximum withdrawal an investor can apply for, per fund, is the lesser of:
(a) the specific amount required as a result of the hardship; and
(b) $100,000 in any calendar year.
Processing hardship claims
1. Hardship claims are assessed on a case by case basis according to the ASIC hardship
criteria (which are set out below).
2. As stated above, the maximum withdrawal claim that can be approved is the lesser of $100,000 per fund, in any calendar year or the specific amount required to address the hardship.
3. An investor (instructor or beneficiary, as applicable) cannot be approved for more than four hardship withdrawals per fund, in any calendar year.
4. Claims will be assessed as they are received.
5. Payments can only be made if there is sufficient cash to meet all claims made
in that month. Claims may be paid on a partial basis or over multiple months or
as further cash becomes available.
6. Payment can only be made if there are sufficient remaining liquid assets for
the day to day operation of the fund.
Grounds for hardship
In determining whether investors qualify for release of funds on the grounds of
suffering from hardship, the following criteria outlined by ASIC applies:
Severe financial hardship
The amount requested is needed to enable the investor to meet reasonable and immediate
living expenses for themselves or their dependants.
For a severe financial hardship claim, the investor must demonstrate that they have no other assets or means
by which to reasonably, in the foreseeable future, pay for the expenses associated
with the basic necessities of everyday living.
Where the investor has not been in gainful employment for a period of at least 3 months and has no other means of financial support (except government assistance, such as unemployment benefits).
The amount requested is needed by the investor or their dependent to:
(a) help pay for medical costs (and transport costs) required to treat a life-threatening
illness or injury, to alleviate acute or chronic pain, or to alleviate an acute
or chronic mental disturbance where two registered medical practitioners (at least
one of whom must be a specialist) have provided certified statements confirming
the medical condition to this effect;
(b) fund specific renovations or modifications (to a principal place of residence or vehicle) that
are necessary to accommodate special needs arising from a severe disability;
(c) assist with funeral and other expenses related to the death of an investor or
(d) enable an investor to provide care for a person who is dying from a terminal
illness, including home care;
(e) prevent an investor’s mortgage lender from selling the member’s principal place of residence;
(f) meet a binding financial obligation entered into by the person prior to APN FM determining that the relevant fund is non-liquid or
otherwise determining that withdrawals should be suspended; or
(g) meet expenses in other cases consistent with grounds mentioned in (a)-(f) where the person does not otherwise have the financial capacity to meet the expense.
Where an investor has ceased gainful employment by reason of mental or physical
ill-health and APN FM is satisfied that the member is unlikely ever again to engage
in gainful employment of the type for which the investor is reasonably qualified
by education, training or experience.