investor portfolio service (ips) 1 the investor portfolio service … · 2018. 9. 23. · the...

1INVESTOR PORTFOLIO SERVICE (IPS)

THE INVESTOR PORTFOLIO SERVICE ADVISED TERMS AND CONDITIONS.

THE INVESTOR PORTFOLIO SERVICE ADVISED TERMS AND CONDITIONS2

THE INVESTOR PORTFOLIO SERVICE ADVISED TERMS AND CONDITIONS.This document contains the Investor Portfolio Service Terms and Conditions for IPS customers investing on an advised basis. These IPS Terms and Conditions are separate from, and should be read alongside, the Product Terms and Conditions for the relevant IPS Product(s) that you hold.

Your adviser will give you more information on the products available through them.

These IPS Terms and Conditions, together with your Product Terms and Conditions, set out the legal agreement that applies between you and us in relation to your investment through IPS.

This version replaces the previous version of the Investor Portfolio Service Terms and Conditions (both Sections A and B) for Advised customers and is valid from 14 November 2016.

Changes from the last version:

We have updated the following clauses to reflect the transfer of the Investor Portfolio Service from Legal & General (Portfolio Management Services) Limited to Cofunds Limited:

A.2.3, A.5.10, A.9.1, A.15.1, A.15.2, B.22, B.23, B.28.

We have also updated A.5.5 to add information about the personal savings allowance.

The IPS Terms and Conditions, which are governed by English law, shall apply to your Account as soon as we accept your correctly completed Application, and payment where required, for a Product. The information contained in these IPS Terms and Conditions and the Application is based on our understanding of current legislation and HM Revenue & Customs practice and could be affected by changes in legislation and practice.

In the event of any conflict between the IPS Terms and Conditions and your Product Terms and Conditions, the Product Terms and Conditions will always prevail.

In the event of any conflict between the ISA Regulations or any other Regulations or legislation relating to your Account, and the IPS Terms and Conditions, the ISA Regulations and/or the other Regulations/legislation will always prevail.

The IPS Terms and Conditions and all communications will only be available in English. All communications you receive from us will be by letter, telephone or email unless we agree with you otherwise.

3THE INVESTOR PORTFOLIO SERVICE ADVISED TERMS AND CONDITIONS

A.1 DEFINITIONS IPS TERMS AND CONDITIONS

“Account” An account that we open in your name to record investments that you make through IPS.

“Advised” The Service Type that applies to you if you set up an Account with an Advised application.

“Advised Terms and Conditions of IPS” The IPS Terms and Conditions relevant to the Advised Service Type. These Terms and Conditions, together with the Terms and Conditions applicable to the Products in which you invest, set out the legal agreement that applies to your investment through the IPS Platform.

“Adviser” A person, or company, authorised by the FCA to conduct investment business, including acting as a financial adviser.

“Adviser Charge(s)” The charge or charges that you have agreed with your Adviser and have arranged to be paid through IPS.

“Application” An application, including an application form, completed by you or on your behalf to invest in an Account, or to add money to your IPS Cash Account.

“Assets” Portfolio Investments, income, interest, cash balances in your IPS Cash Account and any other rights and entitlements from time to time held within your Account.

“Assets Under Administration” (AUA) The financial value of your Assets.

“Bank” The bank or banks appointed from time to time by us to provide banking services to Cofunds Limited (“Cofunds”). Full and up to date details of the banks with which money is held can be obtained by writing to our Customer Service Address, or online at www.onlineips.co.uk/accountrates

“Bundled” A pricing model or asset in which IPS costs and any advice costs are accounted for within the Ongoing Charges Figure (OCF) of Commission-Included share class funds.

“Business Day” Any day when the London Stock Exchange is open for business.

“Cash Reserve” An interest-paying Client Money Account used to hold cash within your stocks and shares ISA.

“Client Money Account” A current or deposit account that is in our, our Nominee’s, or our agent’s name at a Bank, and includes in its title an appropriate description to indicate that it holds only clients’ money in accordance with our regulatory responsibility and is used to hold the money of one or more clients.

“Client Reference” The number assigned to the account we hold in your name to record investments you make through IPS.

“Commission-free Share Class” A share class that doesn’t include an element of commission payable to an Adviser within the Ongoing Charges Figure (OCF) of the fund.

“Commission-included Share Class” A share class that includes an element of commission payable to an Adviser within the Ongoing Charges Figure (OCF) of the fund.

“Customer Service Address” The contact address for sending Portfolio Investment instructions, in case of enquiries and complaints:

Investor Portfolio Service PO Box 1112 Chelmsford CM99 2UX

Or such other addresses that we tell you about after acceptance.

Email addresses and telephone numbers for contacting us are in the Product Documents applicable to your Product(s).

“Fund” An authorised Unit Trust, or OEIC, or where applicable a sub-fund of these in which you can invest within your Portfolio Account and this includes any Fund transferred to your Account from another manager.

“IPS” or “Investor Portfolio Service” An investment service offered by Cofunds. Can also be called The Platform.

“IPS Cash Account” Interest-paying Client Money Account(s) that can be used to process or hold Monies to be invested into Portfolio Investments, or paid out to you (such as a withdrawal or income payment). The IPS Cash Account is specific to Portfolio Investments. Your IPS Cash Account contains the following three Balances:

ANY DEFINED TERM LISTED BELOW HAS THE SAME DEFINITION IF ALSO USED IN THE PRODUCT TERMS AND CONDITIONS.


– “Available Balance” The balance in your IPS Cash Account that can be invested into Portfolio Investments or to pay charges and fees. It takes into account future transactions, for instance if you choose to pay an investment withdrawal into the IPS Cash Account, your Available Balance will be increased by that amount. Note: your Available Balance may be different from your Cleared Balance.

– “Cleared Balance” The balance in your IPS Cash Account that can be withdrawn or transferred to another account (your Nominated Bank Account for example). Note: your Cleared Balance may be different from your Available Balance.

– “Reserved Balance” The balance in your IPS Cash Account that has been ring-fenced to pay charges and fees. This balance is not available for you to invest in Portfolio Investments or withdraw from your IPS Cash Account.

“ISA” your stocks and shares Individual Savings Account as defined by HMRC.

“IPS Platform Charge” A monthly investment-based charge deducted to cover services provided by the IPS Platform.

“Largest Holding” The Fund in which you hold the greatest value of Units.

“Monies” Any client money held within a Client Money Account, or the IPS Cash Account.

“Nominated Bank Account” A UK bank or building society account of yours, which is associated with your Account as in Section A.5.6.

“Nominee” Any company appointed by us in whose name Assets in a Portfolio Account, other than Cash, will be registered. This is currently Cofunds Nominee’s Limited.

“Non-advised” or “Self-directed” The Service Type that applies to you if you set up an Account with a Non-advised application.

“Ongoing Charges Figure (OCF)” Quoted on a Fund’s Key Investor Information Document (KIID). It shows the Fund Manager’s annual costs for running the fund and includes the Annual Management Charge.

“Payment” Any lump sum or regular payment made into a Portfolio Investment or the IPS Cash Account, including the value of an ISA transferred to us from another account manager. Only lump sum Payments can be made into the IPS Cash Account.

“Platform Account Reference” The number assigned to your IPS Cash Account used for payments into and out of the IPS Cash Account. If you have more than one IPS Cash Account you will have a reference for each one. You’ll need to quote this reference if you wish to transfer assets from or to us.

“Portfolio Investments” Our collective investment offering, made up of unit trust and OEIC investments, including these investments held within an ISA.

“Product” An investment offered through us.

“Product Documents” The literature provided to you for each Product you apply for, as amended from time to time. These documents are listed in the Product Terms and Conditions.

“Product Terms and Conditions” The Terms and Conditions for a specific IPS Product (as opposed to these IPS Advised Terms and Conditions).

“Regulations” The relevant Regulations, determined by the Financial Conduct Authority (“FCA”), that apply to your investments, as specified in the relevant Product Documents.

“Sale for Regular Payment” A process used to sell investments to receive cash into your IPS Cash Account to help manage IPS Platform Charge and Adviser Charges payments going out of your IPS Cash Account.

“Service Type” The distinction between whether you are accessing Advised or Non-advised services and signed up to the relevant Terms and Conditions on IPS. We will assign you to the Advised or Non-advised Service Type as appropriate to your circumstances.

“Unbundled” A pricing model or Asset in which you pay the IPS Platform Charge and your Adviser’s charges separately, outside the Ongoing Charges Figure (OCF) of Commission-free share class funds.

“Unit” A unit of a Unit Trust or a share of an OEIC.

“We”, “Us” or “Our” Refers to Cofunds.

“Written” or “in Writing” An instruction to us that you have signed. For joint holdings all holders would need to sign.

“You” and “Your” The Account holder(s), including the individual(s), who has applied to open an Account under these IPS Terms and Conditions. Where appropriate this may include any company or other corporate body, a trust and the trustees.


A.2 OUR ROLE

A.2.1 GENERAL

IPS allows you to invest in a range of Products, and offers services by post, telephone, and online where available. Your adviser will tell you which Products are available through them.

A.2.2 INFORMATION WE REQUIRE

You must give us all information, which we reasonably request to manage your Account. You agree to inform us, without delay, of any change in your circumstances or status, including in particular any change of address, name, Nominated Bank Account or residency status.

In certain circumstances we may need to contact you to obtain more information regarding your investment. Where we do not have an up to date address for you, we may make enquiries to identify your new address. In order to make these enquiries, we may need to share your details with trusted external parties.

To protect you and us from financial crime, we may need to confirm your identity from time to time. We may do this by using reference agencies to search sources of information relating to you (an identity search). This will not affect your credit rating. If this fails, we may ask you for documents to confirm your identity. We may require verification of your bank details for certain transactions.

Tax regulations require us to collect certain information about your tax arrangements under UK law. In order for us to comply with these obligations you agree to:

(a) complete the appropriate section within Application Form or the FATCA Self-Certification Form: and

(b) immediately notify us if any of the information provided on the tax residency self-certification has changed including, but not limited to, your tax residency.

If you fail to provide a fully completed tax residency self-certification within 90 days of us receiving your Application Form or from being requested to do so by us (whichever is the earlier), you acknowledge and accept that we will be obliged to share information about your account(s) with HMRC, who may in turn share this information with any or all participating tax jurisdictions.

A.2.3 ACCOUNT REGULATION

Cofunds Limited is authorised and regulated by the Financial Conduct Authority. The relevant FCA registration number is in the Product Documents applicable to your Product. You can check this on the Financial Services Register at www.fca.org.uk/firms/systems-reporting/register or by contacting the FCA on 0800 111 6768. Their address is:

Financial Conduct Authority25 The North ColonnadeCanary WharfLondon E14 5HS

A.3 OPENING AN ACCOUNT WITH IPS

A.3.1 ACCEPTANCE

We will set up your Account when we receive your first fully completed Application and Payment (where required) for a Product. We will inform you, or your Adviser, promptly if there are any problems with your Application or, alternatively, that your Application has been accepted. Where an Account is to be held in joint names, all joint holders must sign the Application. You cannot set up an Account solely with a Payment into the IPS Cash Account.

A.3.2 INITIAL INVESTMENT

Your initial investment(s) will be made in accordance with your Application. All investments requested under the Unbundled pricing model will be made into the Commission-free Share Class. Please see Section A.9 of these Terms for further details of how money is invested.

A.3.3 YOUR RIGHT TO CANCEL

See the Product Terms and Conditions for details about specific Cancellation Rights for those Products. If you change your mind about investing with IPS, you can cancel or close the Product(s) that you’ve bought and this will also close your IPS Account. See Clause A.13.2 Termination for more information.

A.4 YOUR ADVISER

As part of your Application to set up an Advised Account with IPS, you appoint an Adviser with authority to deal with us on your behalf in relation to certain matters regarding your Account. We are entitled to rely on the accuracy of and act on any instruction or information given to us by your Adviser on your behalf, or which we reasonably believe has been given in this way. You allow us to give your Adviser information about you and your Account from time to time.

You may at any time inform us in writing to stop accepting instructions from your current Adviser and appoint a new Adviser in their place. Your instruction will take effect when we receive it at our Customer Service address. Your letter must include your IPS Client Reference or, failing that, clear details to identify yourself and your IPS Account. We will stop the facilitation of any Adviser Charges for your current Adviser on receipt of this instruction.


A.5 IPS CLIENT MONEY ACCOUNTS

A.5.1 CLIENT MONEY ACCOUNTS – GENERAL

We deposit all Monies that we hold for you in one or more Client Money Accounts that we maintain specifically for you or for our clients generally. We keep all Monies that we hold in a protected Client Money Account separate from our own money and hold it under trust with the Bank.

The Bank pays interest to us on client money held which we keep to offer this service. You can write to us at our Customer Services Address if you require specific details on the amount of interest we receive. In certain situations we pay interest to you as described in A.5.2.

A.5.2 SITUATIONS WHERE WE HOLD CLIENT MONEY AND PAY YOU INTEREST

A.5.2.1 IPS Cash Account – Portfolio Investments Only

When you open an Account, we also create an IPS Cash Account for you, and provide you with a Platform Account Reference to manage the Account. You may decide to leave money in this account for a period of time. This account pays interest monthly.

Monies for investment into Portfolio Investments can be made through the IPS Cash Account. The IPS Cash Account can also hold Monies from payments and withdrawals from your Portfolio Investments, and payments can be sent from the IPS Cash Account to your Nominated Bank Account. You can also make Payments into the IPS Cash Account by cheque or by bank transfer from your Nominated Bank Account, using your Platform Account Reference.

When we are instructed to use Monies from your IPS Cash Account to pay for an investment, we will check whether there are sufficient Monies in the account (sufficient Available Balance) and that the investment is to be held in the same name or names as the IPS Cash Account. If the amount available is not sufficient or the holder not the same, we will not process your instruction and will notify you or your Adviser accordingly.

Please see ’Pending Trades’ in your Product Terms and Conditions for information on how you can set up an investment from your IPS Cash Account as long as you pay enough money into your IPS Cash Account within 14 calendar days.

Please note that withdrawing from an ISA into the IPS Cash Account will mean losing the ISA tax benefits on that money.

Certain Monies will be ‘ring-fenced’ and moved from the Available Balance to the Reserved Balance of your IPS Cash Account to pay your IPS Platform Charges and if requested, to facilitate the payment of any Adviser Charges set up to be paid out of your IPS Cash Account.

Any ring-fenced Monies will reduce your Available Balance, so that you will not be able to carry out transactions using this amount.

We will use the Available Balance to meet IPS Platform Charge payments before any Adviser Charge.

However, during working hours on a Business Day, any money received into your IPS Cash Account, which increases the Available Balance sufficiently to pay for pending trades, will be used for that purpose before any other type of transaction. For trades set up to pend into the next tax year, this rule does not apply. Please see section A.12.5 for details on Sale for Regular Payment and ring-fencing.

A.5.2.2 Cash Reserve

If you invest in an ISA, the Cash Reserve will be available to you. The Cash Reserve allows you to hold cash within a stocks and shares ISA for investment purposes. You can also move cash from a fund and place it into the Cash Reserve without losing the ISA status on the cash being moved. This account pays interest monthly provided that you do not withdraw all of your Cash Reserve holding during that month.

A.5.2.3 Consolidated Income Account

Where you receive Consolidated Income from your investments, we will open a Consolidated Income Account for you. You can only use it to collect income from your investments and have that paid to you at regular intervals. This account pays interest monthly.

A.5.3 INTEREST

The rate of interest payable by us on the IPS Cash Account, Cash Reserve and Consolidated Income Account will fluctuate. Details of the current interest rates can be found at www.onlineips.co.uk/accountrates or from IPS customer services. At the end of each calendar month we’ll work out how much interest you are entitled to. We’ll apply that to the relevant Account by the tenth working day of the next calendar month. Your annual statement will show any interest allocated to your Portfolio Account.

A.5.4 SITUATIONS WHERE WE HOLD CLIENT MONEY AND DO NOT PAY YOU INTEREST

Other client money (non-interest paying)

We may hold your money on your behalf for a number of reasons including when paying for investments we have purchased on your behalf, any rebates paid into your Rebate Account pending reinvestment and money due to be paid to you from investments we have sold on your behalf. In these situations money is ordinarily held on a temporary basis and we do not pay interest to you.

A.5.5 TAX ON YOUR INTEREST

Interest received on the IPS Cash Account and Consolidated Income Account is taxable as income.


money received into your IPS Cash Account, which increases

stocks and shares ISA for investment purposes. You can also

This account pays interest monthly provided that you do not withdraw all of your Cash Reserve holding during that month.

Interest is paid net of 20% tax so basic rate taxpayers have no further tax to pay. Your personal savings allowance means that if you’re a basic-rate taxpayer you’ll be able to earn up to £1,000 in savings income tax free. Higher-rate taxpayers will be able to earn up to £500 tax free and if you are a non-taxpayer you are entitled to reclaim any tax deducted. You can find more information at www.gov.uk/government/publications/personal-savings-allowance-factsheet or by speaking with a tax adviser. The tax treatment will depend on your individual circumstances and may change in the future. More information is available from your tax office or from the HM Revenue & Customs website www.hmrc.gov.uk.

Income tax isn’t payable on interest received on the Cash Reserve.

A.5.6 NOMINATED BANK ACCOUNT

In order to receive income payments from Portfolio Investments you must give us details of your Nominated Bank Account. Your Nominated Bank Account must be a United Kingdom bank or building society account (held with a United Kingdom branch) of which you are a named holder. We will ask you for details of your Nominated Bank Account when you first apply for Portfolio Investments.

You can only have one Nominated Bank Account, for each IPS Cash Account you hold, for payments to and from that account.

Withdrawal payments from Portfolio Investments can be made to different bank details to your Nominated Bank Account. Please see the relevant Product Documents for more details. Once we have verified your Nominated Bank Account, it can also be used to transfer Monies to and from your IPS Cash Account. If you’ve chosen to receive income from any of your Portfolio Investments, the income payments will be paid to and held in your IPS Cash Account or sent to your Nominated Bank Account depending on your instructions.

You can instruct us at any time to change your Nominated Bank Account. You can provide us with new bank or building society account details to replace your Nominated Bank Account. Subject to completing any necessary checks, we will make this change, although payments due to be paid to you within that period may still be sent to your previous Nominated Bank Account.

A.5.7 DEPOSIT PROTECTION

IPS maintains its Client Money Accounts with one or more selected leading banking institutions and we monitor the Banks we use regularly. If you would like any more information about the banks we’re using, you can see this information at www.onlineips.co.uk/accountrates, or by writing to the Customer Service address. We can change, add and remove Banks at our discretion.

We may use more than one Bank to hold a Client Money Account. If this is the case and one of those Banks failed, your claim will reflect your relative share of the total Client Money held by us at that Bank when it failed. We are not responsible to you if the Bank that provides this Client Money Account does not pay this money back.

If the Bank providing the Client Money Account is unable to pay your money back, you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS). Any claim is currently limited by the FSCS to the first £75,000 (£150,000 for joint accounts) you hold with that Bank or building society, and so any money you hold in other accounts with that Bank would count towards this limit. This limit is subject to change – please see www.FSCS.org.uk for details. This refers to money held in a Client Money Account, not when invested within a Product. Please see the Product Documents for your relevant Product for information about FSCS compensation on investments.

A.5.8 GOOD DISCHARGE

We will pay any amounts owing to you under or in connection with these IPS Terms and Conditions into your Nominated Bank Account. Any such payment will be a good discharge of our obligation to pay the relevant amount.

A.5.9 DORMANT BALANCES

If there have been no transactions in both your IPS Cash Account and your Portfolio Investments, for a period of at least six years (other than routine charges, interest and similar items), we may write to you, and/or your Adviser, at your last known addresses informing you of our intention to cease treating that balance as client money. You will have 28 calendar days to make a claim for the Monies held on your behalf, after which they will lose the protection of being held in a separate Client Money Account. However, we will still pay what is due to you if you subsequently claim payment. We will make and retain records of all balances released from Client Money Accounts.

A.5.10 TRANSFER OF CLIENT MONEY

If all or part of Cofunds Limited IPS business is transferred to a third party, you agree that we may transfer to the third party any client money we hold on your behalf that relates to the transfer. We agree that in these circumstances we will transfer the money to a third party who is also bound by the FCA’s client money rules, or we will exercise all reasonable due skill, care and diligence in assessing whether the third party will otherwise apply adequate protection to that money. We will undertake any transfer in accordance with the prevailing FCA rules. We will notify you of any transfer no less than seven calendar days after the transfer taking place and you may opt to have the transferred sum returned to you.


A.6 DEALING IN INVESTMENTS THROUGH IPS

A.6.1 SHARE CLASS CONVERSIONS

Subject to an appropriate Share Class being available, you can convert between Commission-included and Commission-free Assets.

Please note the following:

• There are some transactions that you won’t be able to make while your funds are being converted. These include switching, selling or transferring to another provider. Any of these instructions we receive during your conversion period will be held and processed once the conversion is completed.

• You’ll still be able to buy or top up during this period, any regular investments will continue, and you’ll remain invested while your conversions are taking place.

• The conversion process typically takes less than five days, but some Fund Managers can take up to three weeks to complete conversions.

• We’ll send you confirmation as each fund conversion completes.

• For Share Class conversions, Units will continue to show in your Account as Commission-included Units until the Fund Manager completes the conversion.

When converting Share Classes from Commission-included to Commission-free funds, any residual income received into the Commission-included units after the conversion will also be converted.

You’ll receive units based on the unit price of the new assets on the day we send the request to the Fund Manager.

A.6.2 SERVICE TYPES

You must send an instruction that is appropriate to your Service Type. Your investment may be delayed and/or rejected if you have sent us an incorrect instruction.

A.6.3 HOLDING BOTH COMMISSION-FREE AND COMMISSION-INCLUDED ASSETS

If your Adviser advises you to hold Commission-included Assets in an Advised Account, please be aware of the following:

Income mandates – requests to change your income mandate from income paid out to income reinvested where you hold both Commission-included Assets and Commission-free Assets under a client record. On such a request, only your Commission-free Assets will have their mandate changed to reinvest income. Any Commission-included Assets you hold will continue to pay any income to you.

Commission rebate – if you hold both Commission-included Assets and Commission-free Assets under a client record and have agreed with your Adviser that some of their commission will be rebated, based on this instruction we will rebate the commission paid from the Commission-included Assets and pay it to the Rebate Account.

A.6.4 FUNDS AVAILABLE

Commission-free Share Class funds don’t pay commission to Advisers. The type of Commission-free Share Class Funds available to you will depend on what your Adviser has agreed with the Fund Managers. If you request to buy, switch or convert into a Fund, we’ll process your trade into the particular Commission-free Share Class that is available through your nominated Adviser.

A.7 OWNERSHIP OF PRODUCTS

IPS is a service that brings the administration of the Products together in one place. IPS holds Portfolio Investments on your behalf through a Nominee. This means the way in which you hold your Portfolio Investments through IPS is different to the relationship you would have with the Fund Manager if you held the investments directly. Where your Product is held through a Nominee, you remain the beneficial owner of the assets.

A.8 DOCUMENTATION

A.8.1 ACCOUNT CONFIRMATION

Once your Account has been set up, we will send you a letter confirming your Client Reference and Platform Account Reference. Where an Account is held jointly, all documentation will be sent to the first applicant’s address. Joint holders can request copies of all documentation.

A.8.2 INFORMATION ON YOUR INVESTMENTS

You can obtain further information on your investments, such as valuations and illustrations, from your Adviser. Your Adviser may provide you with online access to valuations and transactional information. Please refer to your Adviser for details.

A.8.3 ACKNOWLEDGING IPS CASH ACCOUNT INSTRUCTIONS

When you add or withdraw Monies from the IPS Cash Account, we send you a letter confirming your transaction.

A.8.4 ACKNOWLEDGING ADVISER CHARGE PAYMENTS

We’ll send you confirmation each time you pay a one-off or initial Adviser Charge. We’ll send you confirmation of your instructions to set up facilitation of ongoing Adviser Charges and/or Sales for Regular Payment authorities.


A.8.5 IPS CASH ACCOUNT AND REBATE ACCOUNT TAX DOCUMENTATION

Your annual statement will confirm the tax you’ve paid in that year. A tax voucher will also be sent to you with your annual statement. If you’re not due to receive a statement but you are due a tax voucher, we will also send you a certificate showing the tax you’ve paid.

A.8.6 STATEMENTS

We will send you an annual statement, for each Account, which will show a valuation and all the transactions on the investments in your Account for the previous 12 calendar months. Details of the exact statement date are available from us by writing to the Customer Service address.

A.9 MAKING PAYMENTS INTO THE IPS CASH ACCOUNT

You can add money to the IPS Cash Account at the same time or after you open an IPS Account and an IPS Product. You can add money by cheque or bank transfer from your Nominated Bank Account. You can also choose to hold money withdrawn, or income from Portfolio Investments in the IPS Cash Account.

A.9.1 BY CHEQUE

You can add to your IPS Cash Account by sending us an instruction and cheque made payable to ‘Investor Portfolio Service’, quoting your Platform Reference Number as the reference. We will put this into the IPS Cash Account no later than the Business Day after we receive the valid instruction and Payment.

A.9.2 BY BANK TRANSFER FROM YOUR NOMINATED BANK ACCOUNT

You can add money to your IPS Cash Account by bank transfer to sort code 16-04-00, account number 31256358, using your relevant Platform Account Reference as the reference for the Payment. We will put this into your IPS Cash Account no later than the Business Day after we receive the valid Payment. If we are unable to identify the source of the bank transfer we will return the monies to the source account.

A.9.3 FROM YOUR PORTFOLIO INVESTMENTS

When you provide us with an instruction to withdraw from your Portfolio Investments, you can instruct us to pay this into your IPS Cash Account instead of paying it to your Nominated Bank Account. We will hold the Monies in your IPS Cash Account until you withdraw the Monies to your Nominated Bank Account or invest into a Fund(s).

A.10 WITHDRAWALS FROM YOUR IPS CASH ACCOUNT

You can withdraw Monies from your IPS Cash Account by telephone or by writing to the Customer Service Address.

We may require the signatures of all joint holders before we can process the withdrawal.

We will usually make the payment from your cash account within two business days of receiving your instruction. This means you will normally receive your payment in your bank account within five business days. If there is a further payment due in relation to a residual balance, this will be made once all fees, charges and rebates clear into your cash account. We may delay payment if we reasonably believe that we should delay payment for your protection or as required by law, or where this is necessary in order to verify your identity. This means that sometimes, payment may be made outside the period outlined above.

If your Bank rejects a BACS or CHAPS payment, the payment will be added to your IPS Cash Account shortly after it is returned to us.

We may pay proceeds by cheque if we agree it with you in advance. Please note: interest stops being earned from the date the cheque is issued. If the cheque remains uncashed, shortly before six calendar months from issue the cheque will be stopped and the monies added to your IPS Cash Account.

Where a withdrawal is requested shortly after a Payment is made, the withdrawal process will start once we are assured of cleared funds in respect of that Payment. This will be within 14 days of the date we receive the withdrawal instruction.

Where we have good reason to query a signature or the validity of an instruction, we will not pay you until the query has been resolved to our reasonable satisfaction. Whilst we are waiting for any such query to be resolved, the proceeds will remain in the IPS Cash Account. We may deduct an amount which we reasonably estimate will be enough for us to meet any tax liability for which we must account to HM Revenue & Customs for you under the Regulations, where applicable. We may delay paying any sale proceeds and cash balances until we know that all Payments made by you have cleared and we have received all amounts that you owe to us.

You may also make a withdrawal from your Account depending on the type(s) of products you hold. Please refer to the relevant Product Documents for more information.

If you hold Monies in your IPS Cash Account, but zero Units in your Portfolio Investments, we reserve the right to pay the Monies in your IPS Cash Account to your Nominated Bank Account.

Please speak to your Adviser if you wish to withdraw all cash from your IPS Cash Account in case there are any Adviser Charges due.


A.11 IPS ACCOUNT PROCEDURE FOLLOWING DEATH

The IPS Account will close once the Products and any Monies held in the IPS Cash Account (where relevant) have closed or are no longer associated with the Account, following the procedures detailed in the Product Documents.

For Monies held in the IPS Cash Account in more than one name, the Account will continue in the name(s) of the surviving investor(s). For Monies held in your sole name, when we have all the documentation we reasonably need to establish proof of death and proof of entitlement in order to finalise the arrangements, on instruction from the executor we will either:

• transfer the Monies to an IPS Cash Account(s) in the name(s) of the beneficiaries, and/or

• withdraw the Monies within one working day of the instruction and send the proceeds to your personal representatives within two working days.

Please note that payment may take up to 10 Business Days to show in your bank account.

If your Bank rejects a BACS or CHAPS payment, the payment will be added to your IPS Cash Account shortly after it’s returned to us.

We may pay proceeds by cheque if we agree it with you in advance. Please note: interest stops being earned from the date the cheque is issued. If the cheque remains uncashed, shortly before six calendar months from issue the cheque will be stopped and the monies added to your IPS Cash Account.

Any transfers and/or payments to the beneficiaries will be subject to any deduction for tax liability as explained in Section A.10.

If your personal representatives require an Account to be opened with us in another investor’s name, we may require verification of identity from the new Account holder. The payment of any proceeds or the setting up of any new Account may also be delayed until after we have verified the identity of the executor. If your personal representatives decide to transfer the assets to another investor, and Commission-included units are held, these will be converted to Commission-free units automatically once transferred. These IPS Terms and Conditions shall be binding on your personal representatives.

For Accounts in a single name: On receipt of a death notification, we’ll stop any ongoing Adviser Charges not already deducted from your IPS Cash Account and cancel any Sale for Regular Payment. We will continue to deduct an IPS Platform Charge where there are sufficient monies in your IPS Cash Account. However, we’ll return any IPS Platform Charges deducted to your IPS Cash Account after

we receive acceptable documentation for settlement. Any applicable rebates will continue. For Accounts in more than one name: On receipt of a death notification and death certificate of the first applicant, the Account will move into the second holder’s name and all fees, charges and Sale for Regular Payment mandates will continue.

A.12 FEES, CHARGES AND EXPENSES

A.12.1 GENERAL

Fees and charges will apply to your Account. Certain charges will depend on the Product(s) you invest in through IPS and you should see the applicable Product Documents for details of any fees, charges and expenses.

We will charge you an IPS Platform Charge for investing through IPS. This is a monthly investment based fee that is calculated monthly in arrears and paid out of your IPS Cash Account.

If you have arranged with your Adviser to pay any Adviser Charges through IPS, then the Adviser Charges section below will apply.

A.12.2 PLATFORM CHARGE

The IPS Platform Charge is a monthly investment-based fee that is calculated monthly in arrears and paid out of your IPS Cash Account. It is calculated on all your holdings on IPS and applied to your Portfolio Investments only. This charge is calculated and moved into the Reserved Balance of your IPS Cash Account on, or around the third Business Day of the month.

The rate of the IPS Platform Charge is calculated in arrears and may depend on your AUA in the previous calendar month. Further details of how this charge is calculated are available from your Adviser or us.

If there is not enough money available in your IPS Cash Account to pay the IPS Platform Charge, by agreeing to these Terms and Conditions, you authorise us to make a Sale for Regular Payment and sell assets from your investment to pay this charge.

A.12.3 ADVISER CHARGES

You may instruct us to pay Adviser Charges from your IPS Cash Account. If you want to do this, you must instruct us to do so on your Application or on a separate Adviser Charge Authority form. We will pay the Adviser Charges from your IPS Cash Account to your Adviser on your behalf.

You may agree with your Adviser to pay an initial Adviser Charge, one-off Adviser Charges and/or ongoing Adviser Charges. The amounts or rates of these agreed charges will be included on your Application or on a separate Adviser Charge Authority form. Further details of how the Adviser Charges may be calculated are in the Guide to Facilitating Adviser Charges.


One-off and initial Adviser Charges are payable as a lump sum and remain in your IPS Cash Account until payable.

To determine the amount payable by you, the agreed rate of your ongoing adviser charge will be applied to the value of your Assets for the previous calendar month.

The value of your Assets will be calculated on, or around, the fifth Business Day of the calendar month for the purposes of determining the amount of ongoing Adviser Charge payable.

Adviser Charges are payable from your IPS Cash Account. If there is not enough money available in your IPS Cash Account to pay your Adviser Charges and you have instructed us to do so we will arrange a Sale for Regular Payment.

If there is not enough money available in your IPS Cash Account to pay your Adviser Charges and you have not instructed us to carry out a Sale for Regular Payment we will be unable to pay any Adviser Charge. Any outstanding charges will be a matter between you and your Adviser and will remain payable by you until there is sufficient money in your IPS Cash Account to pay your Adviser.

Any money taken from your IPS Cash Account for payment of Adviser Charges becomes the property of your Adviser as soon as it’s removed. We will transfer the money deducted to Legal & General Assurance Society Limited for payment to your Adviser.

If you agree with your Adviser to change the ongoing charges we’re paying on your behalf, we’ll make the change the calendar month after we receive the instruction.

A.12.4 DEDUCTION OF CHARGES FROM YOUR IPS CASH ACCOUNT

On, or shortly after, the fifth Business Day of each calendar month, we will determine whether we expect there to be enough money in your IPS Cash Account to pay the charges that are payable by you in respect of your IPS Platform Charge and Adviser Charges accrued in the previous calendar month.

At this time we also determine whether we expect there to be enough money in your IPS Cash Account to pay any initial or one-off Adviser Charges that are due. The IPS Platform Charge and, if applicable, any Adviser Charges payable from your IPS Cash Account will be deducted from your IPS Cash Account two Business Days before the last Thursday of each calendar month. If there is not enough money in your IPS Cash Account on this date to pay either of them in full, that fee or charge will carry forward to be paid the next calendar month.

Three Business Days before the last Thursday of the calendar month, we’ll check again to ensure there is enough money in your IPS Cash Account to pay all fees and charges due, in full. If there is, the fees will be deducted on the next

Business Day. If there is not enough money in your IPS Cash Account on this date to pay any fee or charge in full, any unpaid fee/charge will carry forward to be paid the next calendar month.

A.12.5 SALE FOR REGULAR PAYMENT

If there is not enough money in your IPS Cash Account to pay your IPS Platform Charge when it becomes payable we will carry out a Sale for Regular Payment in respect of the IPS Platform Charge.

If there is not enough money in your IPS Cash Account to pay your Adviser Charges when they become payable and if you have authorised us to do so on your Application or Adviser Charges Authority form, we will carry out a Sale for Regular Payment in respect of your Adviser Charges.

Where we have an instruction from you to carry out a Sale for Regular Payment to satisfy your Adviser Charges and a Sale for Regular Payment is required to satisfy your payment of your IPS Platform Charge, we will carry out a Sale for Regular Payment for both.

If we carry out a Sale for Regular Payment we will arrange to sell some of your Assets to cover the IPS Platform Charge and/or Adviser Charges payable by you. To ensure that enough money is raised from the Sale for Regular Payment, we will arrange to sell 110% of the amount that we calculate is required. Any Sale for Regular Payment will have a minimum value of £1.10.

If you hold a joint unit trust/OEIC we’ll sell units/shares from the Largest Holding in that investment to pay for charges and fees relating only to that investment.

If you hold a sole unit trust/OEIC and/or ISA we’ll sell units/shares from the Largest Holding in your sole unit trust/OEIC unless you instruct us otherwise. If you don’t have a sole unit trust/OEIC or don’t have enough assets in that unit trust/OEIC to raise the required amount, we’ll then sell from the Largest Holding in your ISA. Please note that you cannot replace any annual ISA allowance we take from a Sale for Regular Payment. Please ensure there are sufficient funds in your IPS Cash Account to avoid your ISA being used.

When setting up a Sale for Regular Payment instruction, we treat different types of ISA (for example, Mini ISAs and PEPs) as one ISA product – and any ISA Largest Holding Sale for Regular Payment instruction will apply to all of them.

If a Sale for Regular Payment is required, we will arrange for this to be carried out on, or shortly after the 9th Business Day of the calendar month. The proceeds of any sale will be paid into your IPS Cash Account.

If, at the time of the calculation, the calculation shows we can raise enough to meet your payments with a Sale for Regular Payment, we will carry out the sale as above. However, as the sale is processed a few Business Days after the


calculation, market movements may mean that the sale of 110% of the amount required does not raise the predicted amount. If this means that there is insufficient money within your IPS Cash Account when the payments are due to pay all fees and charges in full, we will use the money that has been raised to pay the scheduled payments in the priority order below.

Monies in your IPS Cash Account will be used to meet payments in the following order:

(1) IPS Platform Charge;(2) Adviser Charges (if you have agreed to pay these).

If there’s insufficient money to meet the IPS Platform Charge in full, this charge will accrue into the next calendar month. If there’s sufficient to pay the IPS Platform Charge in full, but not also pay any Adviser Charges in full, the IPS Platform Charge will be paid but the total Adviser Charge will accrue into the next calendar month. Any remaining money will stay in your IPS Cash Account if a fee or charge cannot be paid in full.

If you choose to place a sell or switch transaction between the calculation date on the fifth Business Day of the calendar month and the sale date on the ninth Business Day of the calendar month, this can result in the Units needed for the Sale for Regular Payment becoming unavailable. In these instances we will not be able to carry out the Sale for Regular Payment using the usual automatic process. In this situation we’ll make a Sale for Regular Payment from the holding that becomes your Largest Holding.

A.12.6 REBATES

You may receive a Rebate of some of the cost of investing into a Fund. We’ll initially hold the Monies in your Rebate Account. At a later date we’ll invest any Rebate Monies due as Units into your Largest Holding in the product holding that rebated Fund.

If you hold different types of ISA product (Mini ISA, former PEP for example), we’ll treat each different type of ISA as an individual product.

You can get more information on rebates from your Adviser or from Customer Services.

On, or shortly after, the third Business Day of the month, we’ll calculate any rebate due to you for the previous month in each product you hold. On, or shortly after, the fifth Business Day we’ll add the rebate Monies to your Rebate Account. You won’t be able to access Monies in this account as they’ll be used to invest into additional Units. On, or shortly after, the 21st calendar day of the month (or the Business Day before), we’ll use Monies in the Rebate Account to invest into Units in your Largest Holding available within each relevant product, subject to a minimum value of £2.50 per product. If no Funds are

available the amount will remain in your Rebate Account until the following month. The Rebate will be invested in Units once a Fund is available to receive it.

Monies will accrue within the Rebate Account until the amount owed to you for a product is equal to or over £2.50.

Tax on rebates

We automatically deduct basic rate income tax from rebate payments on the Funds you hold outside of an ISA, so that any Rebates are paid to you net of basic rate income tax.

You may be able to reclaim this tax from HMRC or be liable for additional tax depending on your individual circumstances.

Rebate monies relating to an ISA are free from income tax.

A.13 VARIATION, TERMINATION AND AMENDMENT OF TERMS

A.13.1 CHANGES TO THESE TERMS

Over time, circumstances can change and this may mean (when we have a valid reason) we need to change these IPS Terms and Conditions and/or your Product Terms and Conditions.

For example:

(a) Our investment rights and powers are removed or restricted.

(b) There are changes to the way we are taxed.(c) There are changes to the way you are taxed.(d) Exceptional circumstances make it impossible for us

to do what we say we will.(e) There are changes in laws, regulations, consumer

standards and so on.(f) We need to respond to changes in tax rates, interest

rates or the costs of providing the Account.(g) We add, change or remove features of our Investor

Portfolio Service offering.

Any changes must meet the Regulations (if appropriate) and be permitted under the Financial Conduct Authority Handbook. We will provide at least 30 days’ notice of any change, if that change is considered to be to your disadvantage. Please see the next section about closing your Account if you are unhappy with any such changes.

A.13.2 TERMINATION

Your Account will terminate when you withdraw all of the Assets you hold from the Products you hold. This can include transferring any Portfolio Investments to another manager or provider as appropriate. If you withdraw all Assets you hold into your IPS Cash Account, your Account will remain open. Please note that if you withdraw all your Assets from both your Products and your IPS Cash Account, the IPS Cash Account will not terminate but remain open.


Assets from both your Products and your IPS Cash Account,

This is to ensure that any rebate or income payment is allocated to you.

If you’re unhappy with any changes we make to your IPS Terms and Conditions, you may terminate the IPS Agreement by writing to Customer Services. This may have an impact on any Products that you hold.

For details of any impact on your Product(s) please contact Customer Services. You’ll find contact details in your Product Documents.

We may terminate these IPS Terms and Conditions at any time by giving you a minimum of three calendar months’ notice.

Depending on the Product(s) you hold, you may also be able to terminate your Account at any time by giving us notice in writing. Please refer to the relevant Product Documents for further information on closing specific products.

A.14 LIABILITIES

We classify you as a retail client under the Financial Conduct Authority’s rules. This means you’ll receive the greatest level of regulatory protection available under those rules. Except as otherwise provided in these IPS Terms and Conditions, we will be responsible to you for any loss, injury or damage suffered by you due to our negligence, default, or fraud; any material breach by us of these IPS Terms and Conditions; or any failure, delay (that was within our control) or error by us, or the Nominee in carrying out your instructions.

We will not be liable to you for indirect or unforeseeable losses such as loss of business, loss of goodwill, loss of opportunity, loss of profit, or consequential losses; or our failure to comply with these IPS Terms and Conditions due to unforeseen circumstances beyond our reasonable control or due to obligations under applicable laws.

You will be responsible for any losses suffered by you and us if you act fraudulently or if you allow another person to use your security details or your Account. You will also be responsible for any reasonable losses suffered by you and us as a result of your material breach of these IPS Terms and Conditions or if you provide inaccurate or untrue information to us.

A.15 GENERAL

A.15.1 TRANSFERRING OUR DUTIES

We may appoint agents to carry out our obligations in managing your Account as long as this is allowed by the Regulations and the Financial Conduct Authority Handbook. However, we will not do so unless we are satisfied that the agent is competent to perform such tasks. We will be liable for the acts of any agents we appoint.

You consent and agree that we may assign to a Cofunds group company all or any of our rights and obligations under these IPS Terms and Conditions. We will notify you of any such assignment.

A.15.2 DATA PROTECTION

We take your privacy very seriously. We use the personal information collected via your Application and any other information that you provide to us (‘your information’) for the purposes of:

1. Providing you with our products and services and dealing with your enquiries and requests;

2. Administering your investment;3. Carrying out market research, statistical analysis and

customer profiling; and4. Sending you marketing information (by post,

telephone, email and SMS) about products and services of companies in the Cofunds group and of third parties whose products and services we offer to our customers.

By applying for an IPS product, you agree to receive the information as described in 4 above, unless you tell us otherwise. Given the global nature of our business, we may need to transfer your information to countries outside the European Economic Area in order to provide our services to you.

Disclosures: We will disclose your information to other companies within the Cofunds group of companies, regulatory bodies, law enforcement agencies, future owners of our business and suppliers we engage to process data on our behalf. If you have been dealing with an adviser, we will give them information about your product and, where appropriate, provide them with other information about your dealings with us to enable them to give you informed advice.

Where you have been introduced to us by a bank or a building society, we will share your information with them to enable them to:

(a) carry out market research, statistical analysis and customer profiling; and

(b) send you marketing information about their products and services and products and services of companies in the Cofunds group and of third parties whose products and services we offer to our customers.

By applying for an IPS product through a bank or building society, you agree to receive the information as described in (b) above by post or telephone, unless you tell us otherwise by writing to our Customer Service address.

Access: you have the right to ask for a copy of your information in return for payment of a £10 fee. To obtain a copy of your information, please write to us at our Customer Service address.


B.1 DEFINITIONSYOUR PORTFOLIO INVESTMENTS TERMS AND CONDITIONS

“Accumulation Unit” is a Unit where any income earned by the Fund, after tax, is retained in the Fund rather than paid out as a distribution. This means the capital value of the Unit increases.

“Application” means the printed application form, provided by us, which you completed and signed. It also covers any non-written application, as agreed between us and you, which provides the same information, declarations and authority as the printed form.

“Authorised Fund Manager” means the company responsible for managing a Fund. This is the unit trust manager for a Unit Trust or the authorised corporate director for an OEIC.

“Dealing Day” means any Business Day or the next possible Business Day.

“Dealing Deadline” means the time by which we must receive your instruction in order to buy, switch or sell Units at the next available price. This is currently 11am each Business Day.

“Direct Debit Dealing Day” means, if you are making Regular Payments by Direct Debit, the Business Day on which we request your Direct Debit Payment. This will be the day selected on your Application, or if this is not a Business Day the next Business Day.

“Distribution Unit” (or “Income Unit”) means a Unit or share type where any income earned by a Fund, after tax, can be paid out to Unit holders as a distribution. You can find the payment frequency and date for a Fund in the Product Documents, or from us.

“HMRC” means Her Majesty’s Revenue & Customs. It is responsible for collecting taxes.

“Investment Account” means the part of your Portfolio Account that is not an ISA.

THE DEFINITIONS IN THE IPS TERMS AND CONDITIONS ALSO APPLY HERE. THE BELOW DEFINITIONS ARE IN ADDITION TO THOSE.

YOUR PORTFOLIO INVESTMENTS TERMS AND CONDITIONS.This section contains the Portfolio Investments Terms and Conditions, applying to unit trust and OEIC investments, including Individual Savings Accounts (ISAs).

These Portfolio Investments Terms and Conditions should be read alongside the IPS Terms and Conditions. These Portfolio Investments Terms and Conditions, together with the IPS Terms and Conditions, set out the legal agreement that applies to your investment through IPS.

The Terms and Conditions, which are governed by English law, shall apply to an Investment Account/ISA as soon as your Application is accepted by us. In the event of any conflict between the ISA Regulations and the Portfolio Investments Terms and Conditions, the ISA Regulations will always prevail.

The Terms and Conditions and all communications will only be available in English. All communications from us will be by letter, telephone or email unless we agree with you otherwise.

CONTACTING US

Write to us

You can write to us with instructions on your investment, or if you have any questions or want to make a complaint:

Investor Portfolio Service PO Box 1112 Chelmsford CM99 2UX

Call us

You can call our Customer Services on

0345 272 0089

for general information on our range of investments or for questions about your investment.

We’re open 9.00am to 5.30pm, Monday to Friday. Call charges will vary. We may record and monitor calls.


“KIID” means the current Key Investor Information Document in respect of the Fund.

“OEIC” means an Open-Ended Investment Company (“OEIC”) authorised in the UK by the Financial Conduct Authority.

“Portfolio Account” means your Investment Account and/or your ISA (including your Cash Reserve if applicable), as selected on your Application, covered by these Portfolio Investments Terms and Conditions.

“Portfolio Investments Terms and Conditions” means these Terms and Conditions for Portfolio Investments.

“Product Documents” means the literature provided to you for Portfolio Investments, as amended from time to time. These are:

• Key Investor Information Document (KIID) • Investing with IPS • Terms and Conditions• Important Fund Information • Using IPS

• Information on Investing/Investment Advice (where appropriate)

• Guide to Facilitated Adviser Charges (Advised customers)

• Commission disclosure (Non-Advised customers)• Tariff of Charges

The above documents are available from your Adviser, online or from our Customer Services.

“Regular Payments” means Payments made monthly by Direct Debit into a Portfolio Investment.

“Regulations” means The Individual Savings Account Regulations 1998 as amended from time to time.

“Share Class” means a Share Class that is either a:Commission-free Share Class that doesn’t include an element of commission payable to an adviser in the Ongoing Charges Figure (OCF) of the fund.OrCommission-included Share Class that includes an element of commission payable to an adviser in the Ongoing Charges Figure (OCF) of the fund.

“Transfer Value” means the value of an ISA transferred to us from another account manager.

“Unit Trust” means a unit trust authorised in the UK by the Financial Conduct Authority.

“US Person” means any natural person resident in the United States; any partnership or corporation organised or incorporated under the laws of the United States; any estate of which any executor or administrator is a US person; any trust of which any trustee is a US person; any agency or branch of a foreign entity located in the

United States; any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a US person; any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated, or (if an individual) resident in the United States; and any partnership or corporation if: organised or incorporated under the laws of any foreign jurisdiction; and formed by a US person principally for the purpose of investing in securities not registered under the Act, unless it is organised or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts.

“Valuation Point” means the point in time at which the Fund is valued and a price calculated. Most Funds have a Valuation Point every Business Day. You can find the relevant times for a Fund in the Product Documents or from us.

B.2 ACCEPTANCE

A Portfolio Account will be opened in your name once we have received, for the first time and at the address given in Clause B.33 or by whatever other means we agree, both a fully completed Application and a full Payment. You may transfer an ISA from another account manager in accordance with Clause B.26 of these Portfolio Investments Terms and Conditions.

Instead of making a cash Payment, we may accept the transfer of your existing holding in a Fund as Payment, in which case the Portfolio Account will be accepted when we have received transfer of the first of your holdings in such Funds. However, in the event of such a transfer, you do not have the right to cancel as detailed in Clause B.4.

Please note: if you transfer Commission-included holdings into an advised account (an account set up under the Advised Terms and Conditions) we will convert the holding to Commission-free Assets as part of that transfer.

We’ll only be able to accept the transfer of funds if they are held in a Share Class that is available to you on the IPS Platform.

Please see part A of the Advised Terms and Conditions for information on converting from Commission-included to Commission-free Assets.

In order to accept your first Application you will have confirmed to us by signing your application form that you have been provided with the KIID for the fund(s) you are investing in. You will also have confirmed that you have been provided with information on complaints, compensation and cancellation which is contained in the ‘Investing with IPS’ brochure. Please see Clause B.3 regarding future transactions.


An Application will not be processed if, in our reasonable opinion:

(a) you are not eligible to hold a Portfolio Account; or(b) the Application is incomplete, or needs clarification.

If we believe an Application is incomplete then:

(a) If your Application for an ISA does not include your National Insurance number, date of birth, full name, address and postcode, it will be accepted subject to you providing the missing information within 30 days of requesting it from you. If we do not receive this information within this timeframe, your ISA will be converted to an Investment Account and will remain invested in Units. If we have to close an ISA because your Application is incomplete, your Payment will still count towards your annual ISA allowance.

(b) We will return your application, including cheques where applicable, no later than the Business Day after we receive them.

Faxed or email Applications will not be accepted unless we agree to do so in advance.

The minimum allowable Payment, or transfer of any Fund you already hold with another manager, into a Portfolio Account is that detailed in our ‘Investing with IPS’ document.

If a Payment has not cleared within 14 days of the Payment instruction, we reserve the right to cancel any Unit deals relating to that Payment, or cancel the instruction in case of the Cash Reserve. If it is the first Payment into the Portfolio Account and the Payment has not cleared within 14 days of the Payment instruction then in addition to the above, we reserve the right to close the Portfolio Account.

We may ask you for additional information which we need to verify your identity. If, after a reasonable period of time, we haven’t received the information requested, we may close your Account. If we close it, Units will be sold and you will receive the market value. If this relates to an ISA, your annual ISA entitlement relating to any ISA contribution will be lost. Payments will normally be returned to the original source of the contribution.

We reserve the right to reject an application. You must ensure that the information you provide to us is accurate and we are entitled to rely upon the accuracy of the information contained in your Application.

B.3 SUBSEQUENT TRANSACTIONS

Once you have invested, in order for us to accept certain subsequent transactions, you will have confirmed by signing your application form that you have been provided

with the KIID for the fund(s) you are transacting in. These transactions are:

• Additional investment into a fund you hold. • New or increases to Direct Debits.• Unit conversions – moving between Distribution and

Accumulation Units in the same Fund.• Share Class conversions – moving between

Commission-included and Commission-free Assets in the same Fund.

• Changing from receiving income to reinvesting income.• Fund switches.• Unit Trust to ISA switches. • ISAs transferred to us as cash from another manager.

If you currently invest in a Fund, or are transferring an existing holding to us, for which no KIID is available, you will not be able to make any of the transactions listed in Clause B.3. If we do receive an instruction to make one of the relevant transactions we’ll return your application, including cheques where applicable, no later than the Business Day after we receive them. Your existing investment in the Fund will continue until you withdraw.

If you have more than one Account, any subsequent transactions will be made into the Account relevant to the Client Reference and/or Platform Account Reference you provide.

If you wish to make a subsequent transaction and we are still outstanding information that we reasonably require to verify your identity, we will contact you for that missing information. Once we’ve received that information we’ll process your transaction. If we don’t receive the information in a reasonable time we will not process your transaction and may return your investment. If we return your investment, Units will be sold and you will receive the market value on the date of repurchase. Payments will be returned to the original source of the contribution.

B.4 CANCELLATION RIGHTS

When you make a lump sum Payment or transfer your ISA from another manager you will be given a right to cancel your investment that relates to that Payment. For Payment by lump sum, a cancellation notice will be sent to you by post when we accept your Application and for each further investment, giving you your 14-day cancellation period. For Direct Debit instructions, you will be given the right to cancel your investment that relates to that first payment. Cancellation rights start when we send you a letter confirming your Direct Debit and finish 14 days later. If you wish to cancel you must write to us at the address in Clause B.33 by the end of this 14-day period. Please note that if you cancel a Direct Debit instruction it cancels the investment you are making as well as the Direct Debit instruction itself.


A cancellation notice will be sent to you for ISA transfers we receive as cash when we receive the Transfer Value from the other manager. For lump sum Payments into a Fund or the Cash Reserve, and for ISA transfers from another manager, you have 14 days from the day you receive the notice of your right to cancel to withdraw from the transaction. This can be done by returning your completed cancellation notice form to us at the address in Clause B.33 by the end of this 14-day period.

If you exercise your right to cancel we’ll refund the Payment and any relevant Adviser Charge(s) and IPS Platform Charge(s) you may have been charged subject to the following. As we do not offset any gain made in one Fund against any loss made in another Fund, if the value of the units in any of the Funds you’re cancelling decreases between the date your Payment was invested and the date we receive your instruction to cancel, you will get back less than the total amount you invested. If the value of the units in any of the Funds you’re cancelling increases between these two dates, the maximum you’ll receive back will be the total amount you invested. If you exercise the right to cancel an ISA transfer, we will close your ISA and you will lose your ISA entitlement relating to that transfer. Following cancellation, we will return your proceeds to you, once we are certain of cleared funds in respect of your Payment (banks and building societies may take up to 21 working days to fully honour any Payment). Alternatively, you can transfer your ISA back to the original ISA manager or to another ISA manager by completing an ISA transfer form(s). We’ll return any proceeds on cancellation, no later than 30 days after we receive your instruction to cancel, to the original source of the Payment except for ISA transfers and in exceptional circumstances. Cancellation rights do not apply to switches between Funds. No cancellation rights apply for the transfer of funds you hold elsewhere into the Portfolio Account.

B.5 HOW CASH PAYMENTS ARE INVESTED

We will pay all Payments into a Client Money Account or the IPS Cash Account no later than the Business Day after we receive them.

If we receive a Payment for an investment that is in excess of the amount of investment stated in your Application, or if you make a Payment for an ISA that is in excess of the limits allowed by the Regulations, we’ll retain this excess in your IPS Cash Account and contact you and/or your Adviser (if you are using one) for your instructions.

If we receive a payment that is less than the total amount of investment plus any relevant Adviser Charge but enough to make the investment, we will process the investment amount subject to our Acceptance rules. Any Adviser

Charge will not be paid and any amount remaining will be held in your IPS Cash Account.

If we have to request more information from you to allow us to process all or part of your Application, we will place any relevant payment into your IPS Cash Account pending that information. Once we’ve received the information we require, we’ll process your application as requested. Any money held in the IPS Cash Account may be used to pay for any fees or charges due.

If we are unable to match any payment we receive to an existing account or application we will return it to you within 10 days. It may take up to a further 5 days to reach you or your account.

We expect the manner in which you invest in the Funds to reflect their objective of generating steady return over the medium to long term (typically five years or more). If, in our reasonable opinion, your trading activity represents frequent trading, we may refuse to buy Units on your behalf.

Where we receive an Application together with a lump sum Payment (other than a Payment for the IPS Cash Account or the Cash Reserve) before a Fund’s Dealing Deadline, the Payment less any relevant charges described in Clause B.12 (and any adviser charges if relevant) will be invested in Units of the selected Fund(s) at the price calculated at the next Valuation Point following that Dealing Deadline. Your Payment will be invested in Accumulation Units or Distribution Units as selected on your Application.

If a Payment is received after the Dealing Deadline on any day, it will be invested at the Valuation Point after the next Dealing Deadline. Regular Payments will only be collected by Direct Debit. The Payments, less any relevant charges described in Clause B.12 will be invested at the Valuation Point on each Direct Debit Dealing Day. You cannot make Regular Payments into the IPS Cash Account. After we have accepted your Application and we have received any information we reasonably require to verify your identity, the first Direct Debit will be collected on the first Direct Debit Dealing Day after a period of 14 days. No collection will take place until we have received all outstanding information.

A new Direct Debit Instruction will be required if the first monthly contribution will be more than 90 days after the Application was accepted. Regular Payments will be invested in Accumulation Units or Distribution Units as selected on your Application. If you wish to cancel your Direct Debit, we must receive Written instructions, or any other method agreed by us, at least eight Business Days before the Direct Debit Dealing Day. Any increase in monthly Payments will be collected on the same day as the existing Direct Debit. If you don’t specify the Fund(s) you


wish to invest the increase in, we’ll be unable to process your request. If, after a transfer, any further Payments are received from your previous manager, they will be invested in your Portfolio Account in the same Funds, Unit Class, Share Class and proportions as the original transfer.

If an instruction is received to buy Units before the Dealing Deadline, then Units will be bought at the price applicable at the next Valuation Point using the price calculated by the Authorised Fund Manager in accordance with their Fund prospectus after deducting any fees and charges as described in Clause B.12 (and any Adviser Charges if relevant). The actual price used or any dilution levy for your deal will be the price provided, or levy made, by the Authorised Fund Manager. These will be shown on your confirmation notes or statements. See the Product Documents for more information on pricing.

If you invest in any Fund that has Business Days that differ from standard UK Business Days you will be subject to any non-dealing days, for example non-UK national holidays, as specified in the Fund’s prospectus.

B.6 PENDING TRADES

B.6.1 GENERAL

Pending trades allow you to provide us with instructions to buy Units in your investment account or ISA, but delay the purchase if you do not have sufficient money to cover the Payment, in your IPS Cash Account until such time as sufficient money is available. You must send us a pending trade cheque payment form along with a cheque to cover the purchase. Once sufficient money is available in your IPS Cash Account, we’ll carry out your instruction (after taking any fees or charges if relevant). You will receive the price as per valuation point on the Business Day that sufficient funds become available. If sufficient funds are not available within 14 calendar days of your instruction, the trade will not be placed. If funds become available in your IPS Cash Account after this 14-calendar-day period has expired, then they will remain uninvested in your IPS Cash Account until such time as we receive subsequent instruction.

B.6.2 PENDING TRADES AND ISA TAX YEAR END

Pending trades in the current tax year are valid for 14 calendar days from the date on which they are set up, or until tax year end, whichever falls sooner.

If we have not received the money to pay for a current tax year pending trade by tax year end (5 April) your pending trade will be cancelled. This overrides the 14 calendar day expiry period you would usually have for the pending trade – we’d have to receive payment by tax year end in order to carry out your pending deal (subject to our usual dealing procedures).

Pending trades cannot be set up in the current tax year if they are created within five Business Days of the end of the current tax year.

Pending trades cannot be set up to take effect in the next tax year except between 1 March and 5 April in the current tax year. During this period you can set up an instruction to buy Units in a Fund or Funds in the next tax year.

You must pay for the pending trade by 20 April of the new tax year – your Available Balance must have sufficient money to Fund the deal by then or your pending trade will expire and we will not carry it out.

B.7 OWNERSHIP OF ASSETS AND DEALING POLICY

We are responsible for the safe custody of all Assets held in your Portfolio Account. We register your Portfolio Investments, pooled together with those of our other customers, in the name of our Nominee. We may change the Nominee company, and if we do we will let you know.

We are responsible for the acts and omissions of our Nominee. Our Nominee is not itself an authorised person under the Financial Services and Markets Act 2000; it can only hold investments and does not carry on business in its own right.

Your Portfolio Investment is held in the same name as those of other IPS investors and we do not identify each investor’s holdings by separate certificates. This means that in the event of an irreconcilable shortfall following the default of our Nominee, you will share the shortfall proportionally with our other investors. All documents evidencing title to Portfolio Investments in your Portfolio Account are held by us or as we direct. We may not lend any of your investments to a third party and we cannot use them as security for borrowing.

When buying or selling Units on your behalf, we will arrange that Units are only bought directly from or sold directly to the relevant Fund’s Authorised Fund Manager at the relevant Valuation Point as detailed in these Portfolio Investments Terms and Conditions.

You are and will remain the beneficial owner of the investments in your Portfolio Account. Should you, or your Adviser request we’ll provide a statement of the units and shares and/or Client Money, that we hold on your behalf. This may not be identical to your annual statement or consolidated confirmation note, mainly due to timing differences that can arise while transactions are being processed.

Investments made by you will be held on your behalf as owner, but you must not use them as security for a


loan. You may be able to use the Assets in your Portfolio Account as a loan repayment method, subject to your lender’s agreement. You may not dispose of or transfer an interest in any Asset while it is held in your Portfolio Account and you may not create (or have outstanding) any charge or security on or over any such Asset.

B.8 CONFLICTS OF INTEREST

Conflicts of interest may arise between you and us, our employees, our associated companies or our representatives. To ensure we treat investors consistently and fairly, we are required to have a policy on how to identify and manage these conflicts. A summary of our policy is detailed below. A copy of the full policy is available on request from the address in Clause B.33.

We:

(a) will consider the interests of all our customers and treat them fairly;

(b) will manage conflicts of interest fairly to ensure that all customers are treated consistently and to prevent any conflict of interest from giving rise to a material risk of damage to the interests of our customers;

(c) have in place procedures to ensure that staff identify and report any new conflicts;

(d) will keep a written record of any conflicts or potential conflicts;

(e) if appropriate, will disclose any relevant conflict to a customer before undertaking business with that customer;

(f) will carry out an annual review to identify any new conflicts; and

(g) will ensure new business developments identify any new conflicts of interest.

This policy applies to any third party to whom we delegate any of our functions.

B.9 INFORMATION PROVIDED

We’ll send you a confirmation note on the next Business Day following completion of each investment transaction we carry out on your instruction. This will include the essential details of the transaction. For regular savings we will acknowledge receipt of your application or instruction, but will not send confirmation notes each time a regular investment is made. Details of all transactions will be included within your annual statement.

If you make regular Payments we’ll also send you a consolidated confirmation note six months after your annual statement. It contains information about each Unit

purchase for regular Payments.

If you elect we will arrange for you to:

(a) receive a copy of the annual report and accounts issued to an investor by every company, Unit Trust, OEIC or other entity in which you have investments in your Portfolio Account; and

(b) be able to attend any meetings of investors in every company, Unit Trust, OEIC or other entity in which you have investments in your Portfolio Account; and

(c) to vote; and

(d) to receive, in addition to the documents in (a) above any other information issued to investors in each company, Unit Trust, OEIC or other entity in which you have investments in your Portfolio Account; and

(e) exercise voting rights through us or the Nominee at such meetings.

B.10 INCOME

B.10.1 REINVESTING INCOME

Where you have chosen Accumulation Units, any income will be kept within the value of the Units, increasing their capital value, and this will be included in the Fund’s Unit price. Any reclaimed tax credit for ISA Accounts will be used to buy further Accumulation Units in the Fund no later than the business day following receipt.

If you have chosen Distribution Units, and you’re reinvesting the income, any income and/or an amount equal to the tax credit (if applicable) in respect of Units will be used to buy further Distribution Units in the Fund no later than the Dealing Day following receipt. If you invest in more than one fund and select Distribution Units in Funds that have them available, you must choose to have either income reinvested for all Funds, or income paid out to you for all Funds.

You can, at a later date, request in writing to have income paid to you. Where you currently invest in Accumulation Units, this will mean a Unit conversion to Distribution Units.

All Regular Payments will be invested on the basis that income is to be reinvested, unless you tell us otherwise. You authorise us to reclaim any tax credit in respect of Units and to reimburse ourselves when we receive this from HMRC.

If you are receiving income from a Fund, you can, at a later date, request to have future income reinvested. If you make this request after a distribution is due from the Fund, otherwise known as the ex-dividend date, but before the income is paid out, this last income payment will be paid to your Nominated Bank Account.


Please note: If your Adviser allows you to hold Commission-included Funds, you can no longer request to have future income from those Funds reinvested back into Commission-included Funds.

B.10.2 INCOME PAID OUT

You may, for lump sum Payments into any Fund offering Distribution Units, choose to receive the income from your Portfolio Account. Where you have made this choice, your Payments will be invested in Distribution Units. Any income will be paid into your IPS Cash Account shortly after it is received by us. If there is any reclaimable tax credit, we will add this amount to any income payment. You authorise us to reclaim any tax credit in respect of Units and to reimburse ourselves when we receive this from HMRC.

Any income is paid, by BACS, from your IPS Cash Account to your Nominated Bank Account on, or shortly after, the seventh Business Day of the month, and consists of all income payments received between the sixth Business Day of the previous month and the fifth Business Day of the month in which the payment is made. If your Bank rejects a BACS payment, then the payment will be added to your IPS Cash Account shortly after it is returned to us. Ex-dividend dates and income payment dates for the Funds are in the Product Documents or available from us.

If you request it, you can have income paid out to you shortly after we receive it. You can also, at a later date, request in writing to have income generated from Distribution Units reinvested or convert Fund(s) to Accumulation Units. Note that if you want to reinvest income from Distribution Units, we will do this for all the relevant Funds you hold.

Please note: If your Adviser allows you to hold Commission-included Funds, you can no longer request to have future income from those Funds reinvested back into Commission-included Funds.

B.11 FUND MANAGER CHARGES

Details of a Fund’s charges can be found in its KIID.

B.11.1 COMMISSION-INCLUDED FUNDS

Commission-included Funds are only available to customers with existing regular investments into those funds.

There may be an initial charge for Units bought within the Account. The Authorised Fund Manager makes the charge, and the way it is applied depends on their method of calculating a Unit price. Details of how any initial charge is applied and the method of valuation is set out in the Authorised Fund Manager’s prospectus which is available from us on request. Initial charges will not be applied to conversions between Accumulation and Distribution Units

in the same Fund, however you should be aware that the Fund Manager may apply a bid/offer spread for buying and/or selling Units.

For Commission-included Funds the Authorised Fund Manager may pay us a proportion of the Initial and Annual Management charge (details are available on request).

B.11.2 COMMISSION-FREE FUNDS

The Fund Manager takes a percentage of the value of your holding in the