DATE OF ISSUE: 5 SEPTEMBER 1990
NON WITHDRAWABLE FARROW CORPORATION BUILDING SOCIETY SHARES
The purpose of this instruction is to advise the current application of Commission policy in relation to the valuation of investment products where trading has been suspended.
2.The policy on asset test valuations normally refers to the current market value which, for managed investments, is taken as the manager's buy back price. Where trading is suspended, and there is therefore no manager's buy back price, Commission will set a value, in conjunction with the Department of Social Security. This value will be based on the best available advice to the Commission and Department of Social Security. The Government appointed administrator of the Farrow Corporation has advised that it is unlikely that holders of non-withdrawable shares in the following Societies will receive any return on their investment.
Names of non-withdrawable share holdings covered by this Instruction
Pyramid Building Society,
Geelong Building Society, and,
Country Wide Building Society.
3.It is therefore determined that nil asset value is to be applied to those shares until further notice.
Manual Reassessment
4.Those pensioners holding non-withdrawable shares in the Farrow Corporation are to be re-assessed manually with effect from the payday following notification by the pensioner with a maximum backdating of arrears payable from 28 June 1990. No automatic update run is possible on share listings under PIPS.
5.Obligation advice letters should be sent to all clients whose service pension is re-assessed in line with this policy.Advice given to pensioners should include a request to inform the Department within fourteen days of receipt of any payout in respect of their Farrow Corporation non-withdrawable shares.
6.This instruction only applies to non-withdrawable shares. Ordinary deposits have been guaranteed by the Victorian Government and should continue to be assessed at full value for asset test purposes.
Contact Officer
7.The contact officer at Central Office for inquiries on this matter is Nigel Parmenter, Income Support, telephone(06) 2896444.
PETER HAWKER
NATIONAL PROGRAM DIRECTOR (BENEFITS)