Dated: 01 June 2024

AMP Wealth Management New Zealand Limited (AMP) provides access to Term Deposits provided by Heartland Bank Limited (Heartland Bank) a New Zealand registered bank.

These Terms and Conditions apply at any time you hold a term deposit or term deposits (including where you elect to reinvest proceeds of a maturing term deposit in a new term deposit or deposits) with Heartland Bank through this service. Once your term deposit or term deposits mature these Terms and Conditions cease to apply.

Using this service

To be eligible to use this service you must be over 18 years of age and be a New Zealand tax resident and live in New Zealand. You must also provide us with the details of a bank account held in your name with a New Zealand registered bank. This will be your Nominated Bank Account.

To use this service, we will need certain personal information from you including your date of birth, address, passport or driver licence number, IRD number, and resident withholding tax rate. You will also need to provide us with all additional information we reasonably require in order to verify your identity for anti-money laundering purposes. If you are an existing AMP customer and we have already verified your identity, you may not be required to resupply that information to us.

All applications and queries regarding term deposits are managed by AMP.

Applications

When you apply for a term deposit you must send the full amount of funds required to satisfy the application for that term deposit to the custodian for the service. The custodian is AMP Nominees (NZ) Limited (AMP Nominee). If you choose to transfer funds from another AMP product, such as the AMP Managed Funds (if eligible to make a withdrawal), AMP will transfer the funds for your term deposit on your behalf.

Upon receipt of your application and the required funds, AMP Nominee will arrange for the term deposit with Heartland Bank on your behalf.

Applications for term deposits are processed by AMP or AMP Nominee once a day on Business Days only. Applications are not processed during weekends or on public holidays.

Transferring funds

If you are an existing AMP customer then you can transfer funds from one of your existing AMP products, such as the AMP Managed Funds, to a term deposit without the need to use any unique reference details. A transfer from an existing AMP product with need to be made in accordance with any withdrawal rules for that product.

If you are a new AMP customer, in order to transfer funds, you need to use the unique reference details we provide to you. If you do not use your unique reference details this may result in delays in establishing and accessing term deposits. AMP reserves the right to return funds if it is unable to identify the correct account the funds should be credited to. All transfers of funds must be made into the account specified by AMP for that purpose. Funds will be held in a non-interest-bearing account by AMP Nominee until they are transferred to Heartland Bank.

AMP can, at its discretion, temporarily or permanently stop accepting funds.

In the event of any discrepancies between the funds received by AMP and instruction for establishment of your term deposit, AMP will refund the funds received to the originating bank account, if appropriate, or contact you to discuss further.

Term deposits

You can apply for particular term deposits (including length of term, applicable rate of interest and interest payment options) made available through our advisers, on our website, or via MyAMP, from time to time.

All term deposits are held by AMP Nominee as bare trustee on your behalf. A bare trust is a trust that holds property for your benefit with the trustee acting on your instructions only. You remain, at all times, the beneficial owner of your term deposits.

Term deposits held by AMP Nominee on your behalf are deposited with Heartland Bank. Heartland Bank’s terms and conditions applying to term deposits will apply to the term deposits held by AMP Nominee on your behalf. This includes any minimum application or withdrawal amounts, ongoing fees, and early termination costs (if applicable). Heartland Bank’s terms and conditions applying to these term deposits can be found in the Heartland Term Deposit product fact sheet and Heartland Bank’s Account and service general terms and conditions.

Heartland Bank is, at all times, responsible for investing and applying and paying all applicable interest in respect of your term deposit or deposits along with meeting ongoing prudential and conduct obligations.

Interest, maturity and reinvestment

For any term deposit of less than 90 days interest is only payable on maturity. Unless you choose to reinvest your term deposit at maturity, interest earned and your principal deposit, will be paid to your Nominated Bank Account on maturity.

You can, prior to maturity, choose to have the term deposit reinvested.

If you choose to reinvest your term deposit at maturity, your term deposit will automatically be established as a new term deposit for the same length of term at the rate applicable at the date of maturity. However, any interest earned will be paid at maturity if it has not already been paid quarterly.

You can change your maturity instructions at any time up to 3 Business Days prior to the date of maturity.

Grace periods

When signing up to a term deposit, the relevant interest rate you select will remain applicable for 5 Business Days. The necessary funds must be received by Heartland Bank within 5 Business Days for that fixed rate to apply for the term selected. This means that should rates drop during that time, the higher rate will continue to apply. If your money has not been received by Heartland Bank within five Business Days then the interest rate applicable at the time of receipt for the particular term will apply instead.

If, within 7 Business Days of establishing a term deposit, you change your mind and wish to cancel that term deposit then you may do so by giving notice to AMP. If you cancel in such circumstances you will receive your principal investment back but not any interest accrued.

If you have chosen to reinvest a term deposit and you change your mind within 7 Business Days of establishing that new term deposit then you can cancel that reinvestment. Following cancellation you will receive your principal investment back but not any interest accrued.

Early termination of term deposit

If you need to terminate a term deposit early due to circumstances such as financial hardship, then certain break fees and other charges may apply. Early termination will also result in Heartland Bank reducing the amount of any interest payable to you and repaying the full principal originally invested. In some cases, early termination of a term deposit may not be available at the discretion of Heartland Bank.

If you wish to terminate a term deposit and have it repaid early, you will need to contact your adviser or AMP direct by phone or email. AMP will assist you with any early repayment request.

Custody

As bare trustee, AMP Nominee acts as custodian of your funds and term deposits. AMP Nominee holds legal title to all funds and term deposits. You remain, at all times, beneficial owner of your funds and term deposits.

Any funds received and term deposits held with a New Zealand registered bank by AMP Nominee are pooled with the funds and deposits of other clients. All funds and deposits held on your behalf are recorded in your name along with the relevant amounts held and applicable interest rate or rates.

As custodian, AMP Nominee reconciles, on a daily basis (except for days that are not Business Days), all funds held.

AMP Nominee will hold all funds and term deposits on your behalf and will only deal with those funds and term deposits as permitted by these Terms and Conditions, the terms and conditions of the particular term deposits and Heartland Bank.

AMP Nominee will not transfer, exchange, or otherwise deal with any funds held on your behalf except on your instructions, the instructions of a person authorised to act on your behalf, or as otherwise required by law. AMP Nominee will not transfer ownership of any term deposits held on your behalf unless required by law or a court order.

The default duties set out in the Trusts Act 2019 do not apply to the extent that they are inconsistent with these Terms and Conditions.

As custodian, AMP Nominee will provide you with a report every six months that includes details of transactions and fees (if any).

AMP Nominee also undertakes an annual assurance engagement with an independent auditor to verify the manner in which it holds funds and term deposits on your behalf. You can request a copy of the latest assurance report by contacting investments@amp.co.nz.

AMP Nominee

AMP Nominee has been established by AMP to act as custodian. The activities of AMP Nominee are strictly limited to holding and administering funds and term deposits on your behalf.

AMP Nominee does not trade or engage in any commercial activity on its own behalf.

AMP Nominee is not affiliated with Heartland Bank which is the issuer of the available term deposits.

Replacement custodian

AMP Nominee may in the future and without notice to you be replaced by another custodian or an additional custodian may be appointed, in which case these Terms and Conditions continue to apply in relation to the new or additional custodian with all necessary amendments.

A new or additional custodian will not be appointed by AMP or AMP Nominee unless that entity is appropriate to hold and safeguard funds and term deposits on your behalf.

Fees and expenses

AMP and AMP Nominee will not charge you any fees or expenses for arranging the term deposits.

In providing access to terms deposit issued by Heartland Bank, AMP receives an intermediary commission.

This commission is calculated based on the total value of funds deposited in term deposits with Heartland Bank.

Taxes

Interest earned and distributions made in respect of term deposits or funds held on your behalf may be subject to taxes. Such taxes will be deducted from interest earned.

If required, we or AMP Nominee can unilaterally deduct amounts from any credit interest earned or even exit term deposits held on your behalf as necessary to meet any taxes owing by you. We will let you know if this happens.

In order to ensure the correct amount of tax is deducted you must keep us informed as to your correct tax rate. If you select a tax rate that is too low, you may have an end of year tax liability. Note that if you do not provide us with your IRD number then resident withholding tax will be deducted at the non-declaration rate of 45%.

Registered bank

AMP and AMP Nominee simply facilitate access to term deposits offered by Heartland Bank. Neither AMP or AMP Nominee are registered banks and they do not issue term deposits.

Heartland Bank is independent of AMP and AMP Nominee. AMP and AMP Nominee do not accept any responsibility for any default or delay in the distribution of funds as a result of delay or failure by, or of, Heartland Bank.

In the unlikely event of Heartland Bank’s insolvency or being put into liquidation, you may be entitled to compensation in respect of your deposits (capped at $100,000) from the Depositor Compensation Scheme under the Deposit Takers Act 2023.

Neither AMP nor AMP Nominee is liable to deposit holders in the event that Heartland Bank is unable to repay deposits.

AMP reserves the right to change the registered bank or banks through which term deposits are made available.

Anti-money laundering obligations

AMP and AMP Nominee must comply with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. AMP and AMP Nominee reserve the right to close access to this service and your term deposits if you do not provide information required by AMP and AMP Nominees to meet their legal obligations or if concerns arise in respect of customer due diligence including ongoing customer due diligence and account monitoring.

Messages and notices

By agreeing to these Terms and Conditions, you authorise us to send you messages by email, other electronic means (including through MyAMP) or to your physical address. You cannot choose to opt out of transactional communications, however, you can choose to opt out of marketing communications from us by emailing us at marketingnz@amp.co.nz.

If you want to change your contact details or the method in which you receive messages from us, you can contact your adviser or AMP on investments@amp.co.nz or 0800 267 027.

Complaints

If you have a complaint, please let us know by contacting our internal complaints team at:

Telephone: 0800 267 027, Monday to Friday 9am – 5pm Email: customerresponse@amp.co.nz Post: Customer Response Manager, AMP Wealth Management New Zealand Limited, Freepost 170, PO Box 55, Shortland Street, Auckland 1140

If you are not satisfied with the result of our internal complaints process, you have access to a free, independent dispute resolution service. This dispute resolution service is operated by the Insurance & Financial Services Ombudsman for AMP and AMP Nominee and you can contact them by:

Telephone: 0800 888 202 Email: info@ifso.nz Post: PO Box 10-845 Wellington 6143

Privacy

Our Privacy Policy governs your use of this service including your term deposits. You can view the Privacy Policy here on our website. Our Privacy Policy tells you what information we might collect about you, and how we might use that information.

Intellectual Property

We own or have exclusive rights in all the intellectual property in our products and services including the content of our website and MyAMP, our logo and other branding, and all the documents and other materials that we produce.

Changes to these Terms and Conditions

We may change any of these Terms and Conditions from time to time by updating them. Any changes will apply if you continue to use the service after we have made updates to these Terms and Conditions.

If we make significant changes to these Terms and Conditions we will let you know either via our website, MyAMP, post or email.

Governing Law

These Terms and Conditions are governed by the laws of New Zealand and the courts of New Zealand will have non-exclusive jurisdiction to hear and determine any dispute arising in relation to these terms and any services provided under them.

Definitions

Business Day means a day of the week (other than a Saturday or Sunday) on which registered banks are open for general business in Auckland and Wellington, New Zealand.

Nominated Bank Account means the account you provide for AMP Nominee to deposit interest payments and your term deposits on maturity.