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INVESTOR PORTFOLIO SERVICE (IPS)

THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS.

THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS2

This section contains the IPS Terms and Conditions for Investor Portfolio Service (IPS). 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.

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 non-advised customers and is valid from 6 April 2018.

Changes from the last version:

We’ve updated clause B.19 PROCEDURE FOLLOWING DEATH and B.26.2 AMOUNT OF ADDITIONAL ISA ALLOWANCE to reflect changes to the ISA regulations that are relevant if the ISA holder or spouse dies on or after 6 April 2018.

THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS.

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.

Customers investing through Nationwide

Building Society:

All terms in this document (Part A and B) are relevant to you if you invested before 1 July 2014 (you receive our Standard Platform Service).

If you invested on or after 1 July 2014 through Nationwide in our Basic Investment Service please note:

• You are unable to make a joint investment through this service.

• The Funds you can invest in do not have Distribution Units available so you cannot choose to take an income.

3THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS

A.1 DEFINITIONS These definitions refer to these IPS Terms and Conditions. Any Defined Term listed below also has the same definition if also used in the Product 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.

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

“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

“Basic Investment Service” An investment service provided by IPS allowing investment only in a small panel of Funds from one Fund Manager.

“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. IPS costs are rebated to you if you pay a separate IPS Platform Charge.

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

“Cash Reserve” A Client Money Account used to hold cash within your stocks and shares ISA.

“Client Money Account” An interest-paying 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 ServicePO Box 1112ChelmsfordCM99 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:

– “Available Balance” The balance in your IPS Cash Account that can be invested into Portfolio Investments.

It takes into account future transactions, for instance if you choose to pay for 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.

“IPS Platform Charge” A monthly investment-based charge deducted to cover services provided by the IPS Platform. An explanation of the charge is set out in the ‘Platform Charge Explained’ document.

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

“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.4.6.

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

“Non-advised” (may also be described as “Self-directed”) This means the Service Type that applies to You if You set up an Account with a Non-Advised application.

“Non-advised Terms and Conditions of the IPS Platform

Services” The IPS Terms and Conditions relevant to the Non-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.

“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.

“Person or Company” A financial Adviser or company who provides access to IPS services.

“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 for each Product.

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

“Rebate” An amount returned to us by the Fund Manager of any of the Funds your Account invests in, as set out in your Product Documents.

“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 Service Charge payments going out of your IPS Cash Account.

“Service Charge” The charge that you have agreed with and specified by the Person or Company that gives you access to IPS, for their services.

“Service Type” The distinction between whether you are accessing Advised or Non-advised services (using the Standard Platform Service and/or the Basic Investment Service) 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.

“Standard Platform Service” The platform service provided by IPS allowing investment in a wide range of Funds from multiple Fund Managers.

“Unbundled” A pricing model or Asset in which you pay the IPS Platform Charge and any applicable Service Charge 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 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.

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 the 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 Financial Services Register number is in the Product Documents applicable to your Product. You can check this on the Financial Services Register by visiting the FCA’s website 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 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 Non-advised pricing model will be made into a Commission-free Share Class.

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 Section A.12 Termination for more information.

A.4 IPS CLIENT MONEY ACCOUNTS

A.4.1 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 below.

A.4.2 SITUATIONS WHERE WE HOLD CLIENT MONEY AND PAY YOU INTEREST

A.4.2.1 IPS Cash Account

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 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 Charge and, if requested, to facilitate the payment of any Service Charge. 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 Service 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.11.5 for details on Sale for Regular Payment and ring-fencing.

A.4.2.2 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.4.2.3 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.4.3 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 statement will show any interest allocated to your Portfolio Account.

A.4.4 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.4.5 TAX ON YOUR INTEREST

Interest received on the IPS Cash Account and Consolidated Income Account is taxable as income. 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.4.6 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.4.7 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 £85,000 (£170,000 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.4.8 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.4.9 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 at your last known addresses informing you of our intention to cease treating that balance as client money. You will then 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.4.10 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 you.

A.5 DEALING IN INVESTMENTS THROUGH IPS

A.5.1 IF YOU HOLD EXISTING COMMISSION-INCLUDED ASSETS ON IPS (Nationwide customers only)

When making a new investment or completing any of the transactions listed below, Commission-free Share Class Assets will be purchased and your existing Commission-included Share Class Assets will be moved into Commission-free versions of the same fund (known as a share class conversion). Following this, you’ll pay the OCF and the IPS Platform Charge across all of your Funds. You will also pay a separate Service Charge to Nationwide.

Please see Clause B.12.2 for more information on conversions.


Relevant transactions:

• Share class conversions – moving between Commission-included and Commission-free Units in the same Fund.

• Additional investment into a fund you hold or into Cash Reserve.

• New or increases to regular investments made by Direct Debit.

• Fund switches (including switching into Cash Reserve).

• Unit Trust to ISA switches.

• ISAs transferred to us as cash from another manager.

• Funds transferred to IPS from another platform or Fund Manager.

• Stock transfers.

A.5.2 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 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.7 DOCUMENTATION

A.7.1 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 (not available in the Basic Investment Service), all documentation will be sent to the first applicant’s address. Joint holders can request copies of all documentation.

A.7.2 INFORMATION ON YOUR INVESTMENTS

You can contact us at any time for information on your investments, such as valuations and illustrations. You can also register for online servicing and get online access to statements, valuations and historic correspondence that’s been sent to you. In some circumstances you’ll be automatically registered for online servicing.

A.7.3 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.7.4 IPS CASH ACCOUNT AND REBATE ACCOUNT TAX DOCUMENTATION

The statement you receive in the second quarter of the year will confirm the tax you’ve paid in that year. A tax voucher will also be sent to you with your second quarter 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.7.5 STATEMENTS

Every three months we will send you a statement, for each Account, which will show a valuation and all the transactions on the investments in your Account for the previous three month period. Details of the exact statement date are available from us by writing to the Customer Service Address.

A.8 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 from Portfolio Investments in the IPS Cash Account.

A.8.1 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 Account Reference 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.8.2 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 the 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.8.3 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.9 WITHDRAWALS FROM YOUR IPS CASH ACCOUNT

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

A.10 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 a BACS or CHAPS payment is rejected by your bank then 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.

Any transfers and/or payments to the beneficiaries will be subject to any deduction for tax liability as explained in Section A.9 above.

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 Service Charge 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 unit 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.11 FEES, CHARGES AND EXPENSES

A.11.1

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.

A.11.2 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 platform charge is calculated in arrears and may depend on your AUA in the previous calendar month.

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 fee.

A.11.3 SERVICE CHARGE

The Person or Company who gives you access to IPS may charge you, with your agreement, a Service Charge for their services. This charge may be liable to VAT at the current rate. They will provide separate Terms and Conditions for that charge.

If you instruct us to do so, we will pay the Service Charge (including the amount needed to cover any VAT charged by them) from your IPS Cash Account to the relevant Person or Company on your behalf. We won’t take a Service Charge unless we receive confirmation from you that you’ve agreed to the charge and the relevant terms – this might be you agreeing online or signing an application form.

The Service Charge is a monthly investment-based charge that is calculated monthly in arrears and paid out of your IPS Cash Account. It is calculated on the agreed rate of the Service Charge and applied to the investments you hold in Commission-free Share Class only. The Service Charge is calculated and moved into the Reserved Balance of your IPS Cash Account on, or around the third Business Day of the month.

If there is not enough money available in your IPS Cash Account to pay the Service 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 it.

Any money taken from your IPS Cash Account for payment of a Service Charge becomes the property of the Person or Company charging it as soon as it’s removed. We will transfer the money deducted to Legal & General Assurance Society Limited for payment to that Person or Company.

You can stop paying any Service Charge at any time. If you do wish to stop, please contact us to discuss the options available.

Cofunds are appointed by the Person or Company as their agent to agree the Service Charge on their behalf. As it is acting on the Person or Company’s instructions, Cofunds has no responsibility for how that Service Charge is made up, amended or presented to you. If you have any queries about the Service Charge, please contact us.

A.11.4 DEDUCTION OF FEES AND CHARGES FROM YOUR IPS CASH ACCOUNT

On, or shortly after, the fifth Business Day of each calendar month, we will determine if there is enough money in the Available Balance of your IPS Cash Account to pay the fees and charges that are due.

The IPS Platform Charge, and if applicable, any Service Charge, 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 the Cleared Balance of your IPS Cash Account on this date to pay the full amount of either of them, that fee or charge will carry forward to be paid the next calendar month.

A.11.5 SALE FOR REGULAR PAYMENT

If there is not enough money in the Available Balance of your IPS Cash Account to pay fees and charges that are due, we will carry out a Sale for Regular Payment.

If we carry out a Sale for Regular Payment we will arrange to sell some of your Assets to cover the fees and 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 required. Any Sale for Regular Payment will have a minimum value of £1.10.

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

If you hold sole investments, and have not provided a separate instruction, we’ll sell units from the Largest Holding to pay for fees and charges relating to those investments.

Please note that if your Largest Holding is in an ISA, we will sell down from that product. Remember that you cannot replace any annual ISA allowance we take from a Sale for Regular Payment.

To help ensure your Assets are not sold, please make sure there are sufficient cleared funds in your IPS Cash Account. For information on how to add money to your cash account, please see section A8 ‘Making payments into the IPS Cash Account’.

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 ninth Business Day of the calendar month. The proceeds of any sale will be paid into your IPS Cash Account four Business days later.

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 required amount. We will use the money that has been raised to pay the IPS Platform Charge, then any applicable Service Charge.

Any fee or charge not paid in full will accrue into the next calendar month. Any unused money following a Sale for Regular Payment process will stay in your IPS Cash Account.

A.11.6 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 containing 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.

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 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.12 VARIATION, TERMINATION AND AMENDMENT OF TERMS

A.12.1 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.12.2 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. This is to ensure that any due 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 the Customer Service Address. 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.13 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.14 GENERAL

A.14.1 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 any 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.14.2 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; and

4. 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 a


financial 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.

For Your protection we will record all phone calls between You and our customer services relating to any trade you make.

Access: You have the right to ask for a copy of your information and any recorded phone calls in return for payment of a £10 fee. To obtain a copy of your information, please write to us at our Customer Service Address.

CUSTOMERS INVESTING THROUGH THE SIMPLE ISA SERVICE ONLY

A.15 ADVISER CHARGES

You may agree with your Adviser to pay an initial or one-off Adviser Charge. You’ll agree the amount of this charge with your Adviser before you invest. It’s payable as a lump sum from your IPS Cash Account.

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 from your IPS Cash Account to Legal & General Assurance Society Limited for payment to your Adviser.

No adviser charges apply on any future transactions you make yourself through the Simple ISA Service on IPS, unless you previously agree them with your Adviser.

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 (where required) 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.

YOUR PORTFOLIO INVESTMENTS TERMS AND CONDITIONS.

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.


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.

“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 (where appropriate)

• Commission disclosure (Commission-included funds only).

The above documents are available 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.

Or

Commission-included Share Class that includes any 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.

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


“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 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.32 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.24 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.

We can only accept the transfer of fund holdings if they are held in a Fund and/or Share Class that is available on IPS. If you’re invested through the Basic Investment Service we will only accept the transfer of fund holdings if they are held in a Fund and/or Share Class that is available as part of that service.

Please note: if you wish to transfer Commission-included Assets we will convert the holding to Commission-free Assets as part of that transfer. You’ll then pay our Platform Charge and any relevant Service Charge on those 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, where both are available, 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.32 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.32 by the end of this 14-day period.

If you exercise your right to cancel we’ll refund the Payment and any relevant Service Charge and IPS Platform Charge(s) you may have been charged, subject to the below. 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 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 for your instructions.

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.

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.

Any money held in the IPS Cash Account may be used to pay for any fees or charges due.

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.11. 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.

Please note that if you set up a Pending Trade for the next Tax Year and send in a cheque to pay for it before the Tax Year end, this money will be used to pay any charges or payments set up against your Cash Account.

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. You can request a statement of the units and shares and/or Client Money, that we hold on your behalf, from us. This may not be identical to your statement, 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.32.

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 the statement you receive every three months.

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.

If you have chosen Distribution Units (where available), and you’re reinvesting the income, any income 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.

If the Funds you’re invested in have Distribution Units available, 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. If you are receiving income from a Commission-free 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: Due to FCA regulations, if you 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.

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: Due to FCA regulations, if you 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-FREE FUNDS

The Fund Manager takes a percentage of the value of your holding in the Fund. This percentage is shown as the Fund’s OCF and is accounted for in the unit price of a Fund. Some Funds may also have a performance fee or exit charge. All of these charges are shown on the Fund’s KIID.

B.11.2 COMMISSION-INCLUDED FUNDS Only held by existing Nationwide customers.

The Fund Manager takes the OCF and pays IPS and Nationwide out of that amount. You’ll receive the amount that IPS receive as a Rebate into your Largest Holding. There may also be an initial charge for Units bought within the Account including when investing any income payments. 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.

The OCF that the Fund Manager takes on Commission-included Funds includes an amount for the services both IPS and Nationwide provide. If you pay a separate IPS Platform Charge we will rebate the IPS cost to you. We will also rebate any Nationwide costs that exceed 0.50% per fund to you.

B.12 CHANGING FUNDS OR UNITS

B.12.1 CHANGING FUNDS (FUND SWITCHING)

You can request that some or all of your Units of a Fund are switched into Units in a Commission-free Fund offered by us. The minimum amount that can be switched into a Fund is £20 and the minimum value that must remain in a Fund is £20. Where you request a switch, Units of the original Fund will be sold and Units of the new Fund will be purchased as detailed in the following table.

UNIT SALE DEAL UNIT PURCHASE DEAL

If the instruction is received by the Dealing Deadline, then at the next Valuation Point.

At the Valuation Point of the new Fund on the day after the sale deal.

(Depending on the Valuation Points of the Funds an investment may not be reinvested in Units for up to 30 hours.)

If you switch your entire holding in a fund, any residual income received after that transaction will be switched as per your instruction. However, if the amount is under £100 then the residual income will be switched into the Fund in which you have the Largest Holding within the relevant part of your Product.

No interest will be paid on the cash holding, that’s held in a Client Money Account, between the sale and purchase deal. Where you request to switch a specific amount, the number of Units to be sold will be estimated using the previous Unit price. This will mean that the amount switched may be more or less than the amount you requested. Where you are making Payments by Direct Debit, you may request that any future Payments be invested in a Commission-free Fund or Funds. We must receive this request eight Business Days before the day your Direct Debit is collected in order to make the change.

Please note: Due to FCA regulations, you can only switch into Commission-free Funds. If you switch from a Commission-included Fund, the Commission-included Units will be sold and we’ll buy Commission-free Units in the new Fund.

B.12.2 CHANGING UNITS (CONVERSION)

B12.2.1 Commission-included to Commission-free Units (Share Class conversion)

Subject to an appropriate Share Class being available, you can convert from Commission-included to Commission-free Units. You’ll receive Commission-free Units to the same value as the Commission-included Units you converted.

B12.2.2 Accumulation to Distribution Units (Unit conversion)

If you are not currently receiving income, you can, at a later date, request in writing to have income paid to you (if Distribution Units are available). Where you currently invest in Accumulation Units, this will mean a Unit conversion to Distribution Units. Where requested you can have income paid out to you shortly after we receive it.

Please note the following applies to all conversions:

• 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.


• If, at the time of your conversion instruction, your units are being sold to pay fees, or you have a regular savings collection in progress, we will wait for these transactions to complete before commencing your conversion.

• 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.

B.13 CASH RESERVE (FOR ISAs ONLY)

The Cash Reserve provides the ability to invest in cash within your stocks and shares ISA without exposure to the risk of market movements. You may request on your Application to put an amount of money into the Cash Reserve instead of investing in Units for your ISA straightaway. You can invest up to the whole of your ISA allowance into the Cash Reserve.

You may request that:

• Some or all of the money held in your Cash Reserve is invested in Fund(s) of your choice subject to any minimum investment amount per Fund.

• Some or all of the Units held in your ISA are sold and the proceeds invested in the Cash Reserve.

If your instruction is received before the Dealing Deadline, then Units will be bought or sold at the next Valuation Point. Interest on any holdings in the Cash Reserve is added to your ISA on a monthly basis except in the circumstances detailed in this Clause. This means that interest may be added to the Cash Reserve after you’ve invested in Fund(s) or withdrawn the money. Where you have switched from a Fund into your Cash Reserve, interest is calculated up to the day that you switch into a Fund or withdraw from the Cash Reserve, and paid on the next monthly allocation date. Where you have invested directly into the Cash Reserve, including via an ISA transfer from another ISA manager, no interest is paid if you switch into a Fund or withdraw from the Cash Reserve before the next monthly allocation date. Interest received on the Cash Reserve is not currently taxable as income. Details about the interest rates can be found online at www.onlineips.co.uk/accountrates or by contacting us at the address given in Clause B.32.

B.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 Portfolio Investments 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 Portfolio Investments 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 Portfolio Investments 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 Portfolio Account. You will also be responsible for any reasonable losses suffered by you and us as a result of your material breach of these Portfolio Investments Terms and Conditions or if you provide inaccurate or untrue information to us.

B.15 MAKING WITHDRAWALS FROM YOUR PORTFOLIO ACCOUNT

You may make partial cash withdrawals for amounts of £20 or more from the Portfolio Account by Written request, or any other method as agreed by us, before the next Dealing Deadline, provided that the value remaining in your Portfolio Account is at least £20. Unless a withdrawal is made from the Cash Reserve in which case we will return the money to you, Units will be sold at the price calculated at the next Valuation Point unless for any good reason we need to confirm or check your instruction, signature, or change of your personal details. If the value of your Portfolio Account subsequently falls below £20 we reserve the right to withdraw the amount invested in that Portfolio Account and pay it to your Nominated Bank Account or your IPS Cash Account. Where you request to withdraw a specific amount from your Portfolio Account, other than the Cash Reserve, the number of Units to be sold will be estimated using the previous Unit price. This will mean that the amount withdrawn may be more or less than the amount you requested. You can also request to withdraw some or all of your investment without selling the Units by requesting that we transfer the ownership of your Units into your name or the name of your nominee as appointed by you. Please contact Customer Services to request a form for this.


Where a full withdrawal is requested from a Portfolio Account where you make monthly Payments, we will also, unless otherwise instructed, stop the Direct Debit. If you are invested in more than one Fund, and don’t tell us which Fund you wish to sell, we will be unable to process your request. Alternatively, you can make a full cash withdrawal.

If you make a full withdrawal, the following applies:

• We’ll cancel any Sale for Regular Payment;

• Any ongoing Service Charge will be cancelled but we may still take any IPS Platform Charge not yet deducted from your IPS Cash Account.

If you make a full cash withdrawal, any distribution will be paid to you in accordance with your original withdrawal payment instructions or into your IPS Cash Account.

B.16 CLOSING A PORTFOLIO ACCOUNT OR REPAIRING AN ISA

You may close your Portfolio Account at any time by giving us Written instructions, or instructions by any other method agreed with us in advance. When we receive such an instruction before a Dealing Deadline, except for Monies in the Cash Reserve, Units will be sold at the price calculated at the next Valuation Point unless for any good reason we need to confirm or check your instruction, signature, or change of your personal details. Where requested, and within the timescales requested (subject to a minimum notice of ten Business Days), we can transfer Units from IPS to be held directly in your name, rather than selling them and paying you their value.

We can close your Portfolio Account by giving you one month’s prior written notice. In particular, we may need to close your Portfolio Account if changes to the Regulations mean that it is no longer feasible to continue to operate it. We may also close your Portfolio Account if we have notified you that you have failed to meet these Portfolio Investments Terms and Conditions and you have not rectified your failure within a reasonable time or you continue to fail to meet these Portfolio Investments Terms and Conditions.

We will not be liable to you for any loss, liability or damage you may suffer if we close your Portfolio Account due to such failure by you to meet these Portfolio Investments Terms and Conditions. If you/we close your Portfolio Account, any distribution that was due to be paid, from a Fund in which you held Distribution Units, after the account is closed, will be paid into your Nominated Bank Account if you have one, or your IPS Cash Account.

Please note that if any distribution is paid into your IPS Cash Account or back into a Fund, your Portfolio Account will then remain open.

If you make a full withdrawal, the following applies:

• We’ll deem the full withdrawal as your authority to stop your Sale for Regular Payment.

• Any ongoing Service Charge will be cancelled but we may still take any IPS Platform Charge not yet deducted from your IPS Cash Account.

• Any rebates due will continue to be paid into your IPS Cash Account.

Where two successive Direct Debit Payments are refused due to no fault on our part, we have the right to close your Portfolio Account if you don’t hold more than £20 in any of the Funds you‘re invested in. We will tell you if your ISA has or will become void because we have failed to meet the provisions of the Regulations. If your ISA becomes invalid under the Regulations, we will sell enough Units to make any payment as HMRC may demand. Unless HMRC allows the ISA to be repaired, any remaining Units will be held outside the ISA in an Investment Account but you will remain the beneficial owner.

B.17 WHEN DO WE PAY YOU FOR ANY WITHDRAWALS?

When you make a cash withdrawal from a Portfolio Account, or your Portfolio Account is closed by you or us, the proceeds of the sale of Units or any amount from the Cash Reserve will be sent to your Nominated Bank Account, your IPS Cash Account, or another bank account in your name as instructed by you, within five Business Days of the date that the last Units were sold and priced.

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

Where a withdrawal is made shortly after a Payment, the proceeds will be paid only once we are assured of cleared funds in respect of that Payment.

If your Bank rejects a BACS or CHAPS payment, then 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. 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.

If the proceeds of sale are to be held in your IPS Cash Account, they will be transferred to your IPS Cash Account within five Business Days of the date the last Units were sold and priced.

Please note that payment may take up to a further five Business Days to show in your bank account. If your Bank rejects a BACS or CHAPS payment, then 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. 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. Payment will be made within ten Business Days of the date that the last Units were sold or ten days of the date we receive the withdrawal instruction, or of the Portfolio Account closure in relation to the Cash Reserve.

We may delay payment if we have outstanding Nominated Bank Account details or we require further evidence of identity as required by law for your protection. During any payment delay of up to 30 days, the proceeds will be held in a Client Money Account and no interest will be paid.

If the payment remains outstanding for more than 25 days, we reserve the right to add the money to your IPS Cash Account shortly after this period. In the case of Direct Debit collections, payment may be deferred in relation to the last Direct Debit collection until we can be sure that Payment has been successfully collected.

For your protection, payment will be made by BACS transfer. Subject to Clause B.14, and the remainder of this Clause, payment to your Nominated Bank Account or another bank or building society account given by you is good discharge of our duty under these Portfolio Investments Terms and Conditions.

If you instruct us to make a payment to a non-Sterling bank account, payment will be made in Sterling and we will not pay any costs for currency conversion. Payments to anyone other than you will be made only to a third party who can hold client money, or on death (see Clause B.19) or when transferring to another ISA account manager (see Clause B.23). No interest will be earned between the date Units are sold, or the date of the withdrawal instruction in relation to the Cash Reserve, and the date any payment clears into your Nominated Bank Account, except any period that it is held in the IPS Cash Account.

The rate of interest payable by us on the IPS Cash Account will fluctuate. Details of the current interest rates can be found at www.onlineips.co.uk/accountrates or from customer services. We reserve the right to deduct any outstanding fees, charges and expenses due to us, relevant to your Service Type, from the amount due to be paid to you. In the case of Direct Debit collections, payment may be deferred in relation to the last Direct Debit collection until we can be sure that Payment has been successfully cleared.

B.18 UNCLEARED PAYMENTS

If, for any reason, we cannot pay you, we will hold the money in your IPS Cash Account or a Client Money Account(s). We will take reasonable steps to contact you and if we do not hear back from you or if you have not

provided us with revised payment details within six years, we may write to you at your last-known address. We will inform you if it is our intention to no longer treat this as client money. You will have 28 days to make a claim for this money. We will then transfer this amount from the Client Money Account to us. However, we will make good any valid claims that are subsequently received.

B.19 PROCEDURE FOLLOWING DEATH

For Investment Accounts held in more than one name, on receipt of a valid death notification of the primary holder, the Account will move into the second holder’s name and the Investment Account will continue in the name(s) of the surviving investor(s). If you die after 6 April 2018, while money can’t be paid in to your ISA after your death, the ISA will continue to remain tax exempt for the purposes of UK Income Tax and Capital Gains Tax. This ‘Continuing ISA account’ status remains until either, the administration of your estate is complete, the Continuing ISA account is closed, or three years have passed since date of death, whichever is sooner.

For Investment Accounts in only one name on receipt of proof of death without proof of who is entitled to the benefits, all future distributions will be used to buy additional Distribution Units. After we have received all the documentation we reasonably need to establish proof of death and proof of entitlement in order to finalise the arrangements, we require a valid instruction from your personal representatives to sell the Units. On receipt of a valid instruction, we will sell the Units at the next Valuation Point as long as we receive the instruction by the daily Dealing Deadline.

The proceeds together with any amount in your IPS Cash Account will then be sent to your personal representatives within five Business Days.

Please note that payment may take up to a further five Business Days to show in your representative’s bank account. If your representative’s bank rejects a BACS or CHAPS payment, then 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. 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. If your personal representatives require a Portfolio Account to be opened with us in another investor’s name, we may require verification of identity from the new Portfolio Account holder.

The payment of any proceeds or the setting-up of any new Portfolio Account may also be delayed until after we have verified the identity of the executor. These Portfolio Investments Terms and Conditions shall be binding on your personal representatives.


B.20 CHANGING THE PORTFOLIO INVESTMENTS TERMS AND CONDITIONS

Over time, circumstances can change and this may mean (when we have a valid reason) we need to change these Portfolio Investments 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 Portfolio Account.

(g) We add, change, or remove features of our Portfolio Investments 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. If you are unhappy with any such changes you can transfer an ISA (see Clause B.23) or close your Portfolio Account (see Clause B.16). We also reserve the right to remove any Fund from IPS. If a Fund is suspended by the Authorised Fund Manager, we may hold or reject instructions to deal until the suspension is lifted. Should a Fund pay income during a period of suspension and you have instructed us to reinvest, we may not be able to fulfil your request. In the event that we are unable to fulfil your request we will communicate with you on how income will be treated.

B.21 TRANSFERRING OUR DUTIES

We may appoint agents to carry out our obligations in managing your Portfolio Account as ISA/account manager, 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 any Cofunds group company all or any of our rights and obligations under these Portfolio Investments Terms and Conditions. We will notify you of any such assignment.

B.22 PROCESSING DATA AND PROVIDING INFORMATION TO OTHERS

Where you tell us that the Portfolio Account is being used in connection with a mortgage or mortgages from a named lender or lenders, then we may inform the lender(s) and any other person you permit in Writing, of any information about the Portfolio Account. These requests will be answered only on an individual basis. The Cofunds group of companies will hold and process information obtained about you as a result of your Application whether or not it proceeds, either by computer or otherwise.

B.23 TRANSFERRING AN ISA TO ANOTHER MANAGER

You may, at any time, request that we transfer the whole or part of your ISA, including any amount in the Cash Reserve, as permitted in the Regulations, to another account manager. Please note that we need your Portfolio Account Reference to allow us to process this request.

If you request the transfer to be as cash, enough Units will be sold from the ISA to meet the requested Transfer Value.

A transfer should take no more than 30 working days from the new manager receiving your request.

If the transfer means that the remaining value of your ISA would be less than £20, we would sell all the Units and transfer the whole ISA. When we have received all the information we reasonably require to finalise the transfer by a Dealing Deadline, unless we are told otherwise, the Units will be sold at the next Valuation Point. Alternatively, where instructed, we will transfer the Units to the other account manager provided that the other account manager will accept those Units. Where there are not enough Units in the ISA to meet this value, no sale will proceed and the other account or plan manager will be informed. Alternatively, you can request that we transfer the Units to your new ISA manager without selling the Units. In this case we will request that the Authorised Fund Manager transfers the ownership of your Units from us or the Nominee to your new manager. We will deduct any outstanding charges, or any payments that are owed to HMRC in accordance with the Regulations from the Transfer Value.


Any distribution that is paid after completion of your transfer may be sent to your new ISA Manager if they agree to accept the amount or otherwise will be paid into your Nominated Bank Account if you have one, or into your IPS Cash Account.

B.24 TRANSFERRING FROM ANOTHER ACCOUNT MANAGER

We will, at our discretion and as long as we have received all the information we require to complete the transfer, allow an account to be transferred from another account manager to us.

(a) For an ISA, if the account(s) is to be transferred as cash, then this cash value must not be less than the current minimum Payment for an ISA as detailed in our current ISA transfer application (which shall be regarded as an Application for the purpose of this Clause B.24).

(b) Where you wish to transfer any Fund which is available on IPS, you can request that we ask the other manager to transfer the ownership of the Fund to us or the Nominee. However, in the event of such a transfer, you do not have the right to cancel as described in Clause B.4. Please note that due to FCA regulations, any Commission-included Funds will be converted to Commission-free as part of this process.

(c) The transfer date will be a date to be agreed between the previous account manager and us and within the timescales requested.

(d) If any Payments are received from your previous manager after the date of transfer, but before a Dealing Deadline it will be invested at the next Valuation Point in the same Funds and in the same proportions as the original transfer.

(e) Any cash transferred, which has been received by the Dealing Deadline, for the Fund requested, will be invested at the next Valuation Point provided we have received all the information reasonably required.

(f) Where the other manager tells us how the Transfer Value is split between the current tax year and the previous tax year, we will hold the current tax year as a separate ISA. (You should note that the banking arrangements in Clause B.6 continue to apply.)

Please note that:

If you’re invested through the Basic Investment Service we will only accept the transfer of fund holdings, (b) above, if they are held in a Fund and/or Share Class that is available as part of that service.

If you wish to transfer Commission-included assets, we will convert those Assets to Commission-free (if the relevant Share Class is available) once we’ve received them from the other account manager.

Please note we do not currently offer a Lifetime ISA, however you can transfer your Lifetime ISA into a Stocks and Shares ISA. Should you transfer from a Lifetime ISA to this Stocks and Shares ISA, your Lifetime ISA status will be lost along with any other benefits specific to that ISA.

B.25 CONSOLIDATION OF ISAs

For administrative purposes we may merge the investments of your previous ISA subscriptions with new ISA subscriptions made under these Portfolio Investments Terms and Conditions.

B.26 INHERITABLE ISA ALLOWANCE

B.26.1 ADDITIONAL ISA ALLOWANCE

In the following circumstances you may make additional investments into an ISA Account held by you, above the normal annual ISA allowance.

• You are the surviving spouse or registered civil partner of an ISA holder who died on or after 3 December 2014. Please note that in this section, we use ‘spouse’ to mean husbands, wives and registered civil partners;

• You were living with your spouse at the time of their death;

• You make the subscription within the permitted period (see below for details of the permitted period).

Any additional ISA allowance will be treated as if it existed in the previous tax year. Your current tax year ISA allowance will remain unchanged.

Please note that once you have made an investment into the additional allowance with us, you cannot transfer that allowance to another provider.

B.26.2 AMOUNT OF ADDITIONAL ISA ALLOWANCE

The total potential amount of additional ISA allowance available to you is the total value of your deceased spouse’s ISA holdings as at the date of their death or, if your spouse died on or after 6 April 2018, at the point their ISA ceases to be a ‘Continuing ISA account’ – whichever is higher. This includes ISAs held with us, past year ISA holdings and ISAs held with different ISA Plan Managers.

The additional ISA allowance available to you with each ISA Plan Manager is the relevant value of all your deceased spouse’s ISA holdings with that specific ISA Plan Manager. You can transfer the whole additional ISA allowance from each ISA Plan Manager to us. Please see the ‘Transferring an additional allowance to us from another ISA Plan Manager’ section.

Please note: due to the values being calculated at different times, the amount of additional ISA allowance available to you may not be the same as the value of any assets that you may inherit. You can also use your own money or assets to invest up to the full additional allowance (see Investing cash or non-inherited assets below).


B.26.3 INVESTING INHERITED INVESTMENT FUNDS (FROM AN IPS ISA ACCOUNT)

If you inherit part or all of the investment funds your spouse had in an ISA Account with us at the date of their death, as long as we’ve continuously held those funds since your spouse’s date of death, you can re-register them directly (up to the value of your additional allowance) into your ISA Account without incurring an exposure to Capital Gains Tax.

B.26.4 INVESTING INHERITED INVESTMENT FUNDS (UNIT TRUSTS/OEICS)

If you inherit any investment funds that your spouse held outside of an ISA, you can request to create an equivalent holding (up to the value of your additional allowance) in your ISA Account. Note that this process may expose you to a Capital Gains Tax liability.

B.26.5 INVESTING CASH OR NON-INHERITED ASSETS

You can also invest cash, or money raised from selling your own investment funds, into your ISA Account up to the value of your additional allowance.

B.26.6 INHERITED INVESTMENT FUNDS (FROM OUTSIDE OF IPS)

Please see the ‘Transferring an additional allowance to us from another ISA Plan Manager’ section below for an explanation of the process for transferring an additional ISA allowance from another ISA Plan Manager to us.

B.26.7 PERMITTED PERIOD IN WHICH TO USE ANY ADDITIONAL ISA ALLOWANCE

The permitted period is different for investment funds and for cash.

Investment funds: you must make any additional investments within 180 days of receiving the assets from your deceased spouse/civil partner’s estate.

If your spouse died between 3 December 2014 and 5 April 2015 (inclusive), we will (for the purpose of calculating the permitted period) treat you as having received the assets from their estate on either 6 April 2015, or the actual date of receipt, whichever is the later.

Cash: you must make any additional investments within three years of the date of your spouse’s death or within 180 days of the completion of administration of your deceased spouse’s estate, whichever is the later.

If your spouse died between 3 December 2014 and 5 April 2015 (inclusive), for cash investments we will (for the purpose of calculating the permitted period) treat 6 April 2015 as the date of death.

B.26.8 INFORMATION WE NEED FROM YOU WHEN REQUESTING TO USE AN ADDITIONAL ALLOWANCE

In order to process your request to make an investment using your additional ISA allowance, we will require certain information and declarations from you relating to your marriage/civil partnership as required by applicable law. This information will be specifically requested in our application form.

B.26.9 TRANSFERRING AN ADDITIONAL ALLOWANCE TO US FROM ANOTHER ISA PLAN MANAGER

If your deceased spouse/civil partner held one or more ISAs with another ISA Plan Manager(s), you are allowed to make additional cash investments only up to the value of those ISAs into your ISA Account with us. To do this you will need to:

• Provide us with all the information required in order to process your request;

• Provide the name of the ISA Manager(s) where your deceased spouse held their ISA(s) and as many details of their holding (eg. account number) as you can;

• Confirm that you have not made any investments which make use of your additional ISA allowance in respect of the transferring ISA in any other account.

If you’ve already used part of your additional ISA allowance in respect of a particular ISA with another ISA Plan Manager, any unused allowance cannot be transferred. The unused allowance will remain with your existing manager.

Within 30 calendar days of receiving your request the previous ISA manager(s) is required to confirm to us the value of the additional subscriptions that are permitted, and we will enable additional subscriptions to your ISA up to this value, as described above.

Once you have made use of any additional ISA allowance with us, in respect of a particular ISA, you may not transfer any unused allowance to another provider.

B.26.10 TRANSFERRING AN ALLOWANCE TO ANOTHER ISA PLAN MANAGER

If your deceased spouse held an ISA/ISAs with us, but you wish to make cash investments into your ISA held with another ISA Plan Manager, you may do so as long as you have not made any investments which use any part of your additional ISA allowance in an ISA account with us.

Contact your chosen ISA Plan Manager and they will tell you what you need to do.


B.27 REGULATORS

Cofunds Limited is authorised and regulated by the Financial Conduct Authority.

B.28 VERIFICATION OF IDENTITY

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. In certain circumstances we may need to contact you to obtain more information regarding your investment.

B.29 COMPLAINTS AND POLICIES

We have a procedure for handling any complaints relating to the operation of your Portfolio Account, a copy of which is available on request at the address in Clause B.34. In the event you are not satisfied, you also have a right of complaint direct to the Financial Ombudsman Service.

The Financial Ombudsman, Exchange Tower, Exchange Square, London E14 9SR

Website: www.financial-ombudsman.org.uk

Email: [email protected]

Phone: 0800 023 4567

You can also request copies of the following policies from us:

(a) Investments held in joint names;

(b) Investments from overseas;

(c) Best execution;

(d) Locating customers without an address;

(e) How we use other companies.

The European Commission has established an Online Dispute Resolution Platform (ODR Platform) http://ec.europa.eu/consumers/odr/index_en.htm that is specifically designed to help EU consumers who have bought goods or services online from a trader based elsewhere in the EU and subsequently has a problem with that online purchase. The ODR platform will refer your complaint to the Financial Ombudsman Service who will pass it on to Cofunds.

B.30 COMPENSATION

You may be entitled to compensation under the Financial Services Compensation Scheme in the event that we cannot meet our obligations to you or in the event of insolvency of a third party. Any compensation available is dependent on the type of business and an investor’s circumstances. Most types of investment business are covered for the first £50,000 per person per firm

(for claims against firms declared in default from 1 January 2010). Further information is available from us or from www.fscs.org.uk.

B.31 INFORMING US OF CHANGES

You agree to inform us, without delay, of any change in your circumstances or status, including any change of address, name, bank account, residency or tax status.

Where we believe that your residency for tax purposes is affected we’ll write to you to clarify your circumstances. You may be required to indicate all countries in which you are resident for tax purposes.

Where we do not have an up-to-date address for you, we will make enquiries to identify your new address. In order to make these enquiries, we may need to share your details with trusted external parties. If you are or become a US Person, you agree to notify us immediately.

We are entitled to terminate any agreement with you under these Portfolio Investments Terms and Conditions and any other Product Terms and Conditions if you notify us that you are or have become a US Person, or if we discover that you have become a US Person.

B.32 GIVING NOTICE

We will carry out instructions only if they are from you or your authorised representatives. Any instruction given to us must be in writing (or any other method as agreed by us). Written instructions should be sent to and will become effective only when received at:

For postal instructions:

Investor Portfolio Service PO Box 1112 Chelmsford CM99 2UX

Or for couriered instructions:

Investor Portfolio Service Adams House 2 Springfield Lyons Approach Chelmsford CM99 2UX

Or such other address that we tell you about after acceptance. We will carry out, then confirm any instructions unless we notify you otherwise.

Contact us the way you prefer:

Post – Write to Investor Portfolio Service, PO Box 1112, Chelmsford CM99 2UX

Phone – 0345 272 0089*

Email – [email protected]

If you’re contacting us by email, please remember not to send any personal, financial or banking information because email is not a secure method of communication.

*We’re open Monday to Friday, 9.00am to 5.30pm. Calls may be recorded and monitored. Call charges will vary.

Cofunds Limited Registered in England and Wales No. 3965289 Registered office: Level 43, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AB

We are authorised and regulated by the Financial Conduct Authority.

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