Hardship claims

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 IDPS.

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.

Unemployment Grounds
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).

Compassionate grounds
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 their dependent;

(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.

Permanent incapacity
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.