The new financial year has seen the reopening of the significant investor visa programme but with a new list of eligible investments for foreigners to consider. The tough part with this list is that it may not sit well with what some analyst describe as conservative investors seeking a safe haven to park their funds while waiting on their visa decision.

In an attempt to stop the flow of funds into the Australian property market, the government’s new rules are forcing funds away from government bonds and the property market into high risk investments.

No less than $1.5 million will have to be invested in managed funds or listed investment companies that invest in ASX-listed emerging companies. Part of this requirement is that the managed fund must dedicate at least 80 per cent of its assets to firms with a market capitalisation of less than $500 million.

Of the remainder, at least $500,000 will have to be put in eligible Australian venture capital or private equity funds which invest in start-up and small private companies

And what's left over – up to $3 million – can be invested in a combination of assets, including ASX listed companies, eligible Australian corporate bonds or notes, annuities and real property in Australia. The last is subject to a $300,000 limit on residential housing.

Undoubtedly, given these changes, applicants for the Significant Investor Visa (SIV) program will require financial planning services to secure permanent residency.

Explaining the changes, Migration Alliance founder and director Liana Allan recently told ifa that not only is there an opportunity for retail financial advisers in the controversial SIV scheme, but that they may be crucial to the program's success. IFA (Independent Financial Adviser) is a specialist news website for financial planners and advisers.

"It would be close on impossible to assist a migrating client without referring the client to a qualified financial planner, due to the complexity of rules around investment advice," Ms Allan said. "If they do not have this advice then their visa application is likely to be refused. The Department of Immigration is looking for a properly executed, well thought out investment strategy."

As a result, Ms Allan said there is significant scope for referral arrangements between financial planners and migration agents, but warned that advisers should look for agents who are certified with an accrediting body with a code of conduct.

"Due to the rules around commissions and referral fees, the partnership model which is most prevalent is the direct referral method," Ms Allan said.

"Mitigating risk of visa refusal due to poor financial and investment advice is always a priority, so agents tend to deal with planners that they trust or whom Migration Alliance trust and recommend."

So far more than 750 foreign applicants, of which more than 90 per cent are Chinese, have been given the right to live and work in Australia in return for more than $3.7 billion worth of investment.

Follow these links for further details on the new complying investment framework (PDF) for the Significant Investor Visa (SIV); Premium Investor Visa (PIV) programme (media release (PDF)); FAQs explaining the new complying investment arrangements.