I am a financial advisor helping an investor client. We’re working up plans and financial projections for her investment funds from the initial investment until the end of the required investment period. My understanding of how the funds can “exit” their required investments is not clear, however. How do we know it’s OK to withdraw funds from the investments, and what is the proper mechanism to do so?
Once the investment period is over, there is no restriction on re-investment. The restriction of "complying investment" would not be continuously binding and would be lifted after the application for a permanent residence visa is granted. Thus, the proper method is to wait for the PR grant, then change investment strategies.
For primary subclass 188 visa holders under the Significant Investor stream, the Significant Investor Extension stream and the Premium Investor stream, condition 8557 is also always imposed on the visa. It requires that, subject to periods when an investment may be being switched for re-investment into other complying investments, the visa holder must maintain the complying investments for the duration of their visa. Following the grant of permanent residency under subclass 888, these permanent residents will also be able to cease any business or investment activities that secured them their permanent residency, if this is their desire, and still retain their permanent residency. This is provided, at least until the time of the permanent visa grant, that they maintained a genuine intention to continue with those business or investment activities. All funds must be invested via a complying fund, and management of these funds is strictly limited. Direct investment is not permitted under the Significant Investor stream.
This should be included in the agreement entered into with the Australian investment. Each investment should have its own investment/subscription/shareholders agreement. I would make sure you read these documents in detail to ascertain that the options are available once the investment period is over. This is critical for cashflow and exit strategies.
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