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purchasing stock for third parties

  1. Was wondering if someone out there could advise of the logistics involved in purchasing investments for a third party. I have a nephew who was just recently born and wish to arrange the purchase of investments for him. There is around $2000 in the kitty and i was considering buying some floating rate income securities for him - such as the Woolworth Income Notes (WOWHA). An investment is sought which has high capital stability and yields better than cash in the bank. I suggested these income notes as they yield a 2% premium to the BBSW and are only trading slightly above their face value. Any other better alternatives than this?

    What is required to establish investment facilities for a third party? Is a seperate trading account required? What about tax file numbers etc? Do trustees and the like need to be initiated?

    Any information given is much appreciated. Hopefully someone out there has done this before and can advise Cheers!

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