The new ‘cash rewards’ type of promotion from upstreet.co invests the proceeds of the rewards made from making retail purchases in shares for you rather than giving you cash back.
Looking at the links from Upstreet to the merchants involved, it seems to be affiliate sales with a twist. The twist being the rewards are invested for your rather than transferred to your member account in cash.
What happens if you want to convert your shares to cash?
The details in page 3 of the product disclosure statement of Jan 2021 under Limitations state:
“We may accept or reject any investment or withdrawal request at any time at our discretion, without providing reason for our decision.”
So they may not give you your cash for your shares but they should still be your shares. Why they wouldn’t give you the cash for your shares is obviously exceptional and unlikely to happen. In fact can they even contract out of the fact that they are your shares?
The mechanism to convert your shares to cash on Upstreet
From the January 2021 PDS – you may decrease the size of your investment by completing a withdrawal form (available at upstreet.co or on request) and returning it to us by email from the email address registered to your account. We may also allow you to submit a withdrawal request using the Upstreet App.
The Fund has a minimum holding period of 31 days. That means we will not accept a withdrawal request for units that have been held for less than 31 days. Where we receive a withdrawal request during the minimum holding period, we may either reject the withdrawal request or we may process the redemption on the frst day after the minimum holding period elapses.
You can also move shares between investment options on Upstreet. A nice touch
It may also be possible to request to move money from one Investment Option to another, and we will deem that to constitute both a request to withdraw from one Investment Option and an application to invest in another. Where we accept that kind of request, units in the first Investment Option will be redeemed at their applicable unit price (less any applicable sell spread) and then the proceeds will be applied towards an application for units in the second Investment Option at their applicable unit price (plus any applicable buy spread). You may hold units in more than one class at a time.