The significant investor visa program (SIV) will be suspended from 24 April 2015 and reintroduced on 1 July 2015 with a new set of requirements.

The SIV program has brought in $3.475 billion dollars with some 695 approved applications to date according to DIBP. However the program is set to be suspended in preparation for the introduction of the new SIV framework.

“To ensure clarity for prospective applicants about the investment framework that will apply to them, and to ensure the programme continues to offer the best balance between investment migration and economic benefit, the Australian Government has decided to temporarily suspend all new nominations to apply for a SIV” states a news release from the DIBP.

“This suspension will commence on 24 April 2015, with nominations reopening on 1 July 2015 to coincide with the introduction of the new framework through associated amendments to the Migration Regulations 1994.

According to the release, during the suspension of nominations, prospective SIV applicants will still be able to lodge an Expression of Interest (EOI) to be nominated for the programme. Anyone who has an EOI current at 1 July 2015 will be able to be nominated from 1 July 2015 onwards, and will be subject to the new complying investment framework.

“This suspension will not impact existing SIV applicants, or those who have already been invited to apply for a SIV.  Any existing SIV applications and those who have already been invited to apply prior to the suspension will continue to be processed under the current regulations,” states the release.

Given the strong performance of the SIV program, and the proposed changes, major financial institutions have started changing their product offerings and campaigning more aggressively to attract prospective applicants into their fund management programs.

One of the biggest challenges to the SIV program is the government’s proposal to direct a significant portion of the SIV applicants’ funds into relatively high-risk ventures. The proposals are for the SIV program to have mandatory investments in Venture Capital Funds ($1 million proposed) and Small and Micro Cap Companies ($1.5 million proposed). The remainder of the investment can be through managed funds. The PIV program will have no limits on complying investments other than no investment in residential real estate and no ‘loan back’ i.e. the full investment of $15 million could be in Australian managed funds.

Migration Alliance has partnered with the National Australia Bank to promote NABs products to prospective investors.

Significantly, NABs experience with the conservative risk profiles of SIV investors has had it developing specific products that both meet the SIV legislative requirements as well as the applicants risk appetite and lifestyle needs. Specialist wealth managers are on hand talk applicants through their preferred options.

At the top level, NAB has also been actively making submissions to Austrade on investors’ concerns and needs. Austrade is the lead government agency directing the SIV program.