Hatch – Kids Investment Account rules

Last updated: 29 October 2020

Thanks for paving the way for future generations to live their best lives. You can help to set a child up with a secure future and, along the way, give them the best financial education that money can buy.  

When you create a Kids Account, you agree to the Hatch terms and conditions, as well as the specific terms outlined below.

Parents and legal guardians can create a Hatch investment account for a child

To start, you’ll need to be the child’s parent or legal guardian to create an investment account for them. Once you have verified your identity through Hatch, you can create a Kids Account. There’s no limit on how many you create.  

A Kids Account is for the sole benefit of the child

When you create a Kids Account, the child will get their own brokerage account and you will act as an authorised signatory on their behalf. You administer the account (and will be able to switch between your account and theirs when you sign in to Hatch) but it’s for the sole benefit of the child - it’s an investment in their future.

All money deposited to the child’s investment account is an irrevocable gift, meaning the child has the sole rights to the money.  

Any actions, including investment decisions, must be for the benefit of the child.  

Any withdrawals must go to a bank account in the name of the child, and be for the benefit of the child.

Your child can take control of their investments at an agreed age between 18 and 25

You can decide what and how much you allow the child to be involved in investing decisions. For many investors, allowing the child to see and understand their investments is a valuable part of their financial education.  

You’ll be an authorised signatory on the Kids Account (meaning you can make investment decisions) until a mutually agreed age (between 18 and 25). Then, the child will be able to sign up to Hatch and complete the verification process to open an individual account of their own. The shares and USD in the Kids Account will be transferred over to their individual account and you will no longer be an authorised signatory.

Your child may need to have a personal tax return completed on their behalf at tax time

As the authorised signatory on the Kids Account, you will need to ensure any income received is included in the child’s tax return.

We reserve the right to close accounts if we find out that account is being used other than for the benefit of the child.

The rest of Hatch’s Terms and Conditions still apply.

Our Privacy Act obligations apply to you and your child

In signing up to a Kids Account, you agree that you have the authority of the child’s parent or legal guardian to provide personal information about the child to us.