Client Agreement Document for Intelligent Financial Advice Limited

Transcription

1 Client Agreement Document for Intelligent Financial Advice Limited INVESTMENT SERVICES Intelligent Financial Advice Limited is permitted to advise on and arrange (bring about) deals in investments. With regard to investments which we have arranged for you, these will not be kept under review, unless you elect to subscribe to one of our fee-based investment management propositions. Details of these services will be provided separately. However, we may contact you in the future by means of an unsolicited promotion (i.e. where you had not expressly requested it) should we wish to contact you to discuss the relative merits of an investment or service which we feel may be of interest to you. Intelligent Financial Advice Limited does not handle clients money. We never accept a cheque made payable to us or handle cash (unless it is payment in settlement of charges or disbursements for which we have sent you an invoice). If you do send us money, this may delay your transaction as we may have to return this money to you. REGULATORY STATUS Intelligent Financial Advice Limited, Bridge House, Derby Road, Long Eaton, Derbyshire, NG10 1NL, is authorised and regulated by the Financial Conduct Authority. Our FCA Register number is You can check this on the Financial Services Register by visiting the FCA s website or by contacting the FCA on CLIENT CATEGORISATION In providing investment services to you, we will categorise you as a retail client. The type of client category will determine the level of protections afforded to you under the regulatory system. As a retail client the regulatory protections available to you are determined by this category and will be the highest available. Where we have categorised you other than as a retail client (see above), you may request re-categorisation under a client category which benefits from a higher degree of protection. However, we reserve the right to agree to such a recategorisation on a case-by-case basis, and where we agree to do so it does not necessarily mean that you will have a right of access to the Financial Ombudsman Service. CONFLICT OF INTERESTS Intelligent Financial Advice Limited offers advice in accordance with that disclosed to you in our Initial Disclosure Document. Occasions may arise where we or one of our other clients have some form of interest in business being transacted for you. If this happens or we become aware that our interests or those of one of our other clients conflict with your interests, we will write to you and obtain your consent before we carry out your instructions, and detail the steps we will take to ensure fair treatment. TERMINATION OF AUTHORITY You or we may terminate our authority to act on your behalf at any time, without penalty. Notice of this termination must be given in writing and will take effect from the date of receipt. Termination is without prejudice to any transactions already initiated, which will be completed according to the Client Agreement unless otherwise agreed in writing. You will be liable to pay for any transactions made or carried out prior to termination and any fees which may be outstanding. COMPANIES ACT DISCLOSURE Registered Office: 57 New Walk, Leicester, LE1 7EA Incorporated in England & Wales Registration No RIGHT TO WITHDRAW In the case of many retail investment products, such as life assurance contracts, personal pension scheme investment bonds and collective investment arrangements (e.g., unit trusts) a right to withdraw or cancel the contract within a specified period is normally provided. Details of such rights are ordinarily contained in the product literature (e.g., Key Features Document) and/or we may provide details of such rights in a separate communication. In the case of any non-retail investment products e.g. an ISA wrapper, we will inform you in writing of any right to withdraw or cancel you may have or, if it is the case, we will inform you in writing that no such rights will apply.

2 CLIENTS RISK You are advised that because investments can fall as well as rise, you may not get back the full amount invested. Past performance is not a guide to future performance. HOW WE CHARGE YOU FOR OUR SERVICES The method of paying for our services will depend on the type / level of service(s) provided. We will discuss your payment options with you and answer any questions you may have. Initial Advised services For advised services, you will be charged an adviser charge. The actual amount will depend on the service(s) provided to you and the amount will be agreed with you before we carry out any work that we will charge you for and we offer the following options: Full Advice We will review all areas of scope i.e. Investment, Retirement Planning, IHT, Protection etc Limited Scope We will review only the scope of advice that you have instructed us on e.g. Investment only Limited Transaction If you have already decided what product you want we will limit our advice to recommending a product provider and range of funds (we are not responsible for the suitability of the product) Execution Only If you have already decided what product, product provider and range of funds we can arrange the transaction for you on an execution only basis (we are not responsible for the suitability of any advice) Our Services and Payments Agreement that we will issue to you, will contain details of how much you will be charged and how payment is to be made. Examples of the costs of our services are included within the Services and Costs Disclosure Document. We will not charge you anything until you have agreed on how much we are to be paid. We will inform you if you have to pay VAT. Non-advised services For non-advised services, if commission is available to us, you can choose to pay us by allowing us to keep the commission, or by paying us an adviser charge instead. If you choose to pay via commission, we will tell you how much the commission is before the transaction is completed. If you choose to pay an adviser charge, we will agree its basis, frequency and method with you in writing before we carry out any work that you will be charged for. Ongoing Advised Services In addition to our initial advice services, you could ask us to undertake further services on an ongoing basis. We offer the following four fee-based ongoing service propositions: Financial Planning (Lifetime Cashflow Planning) Active Wealth Management Personal Wealth Management Initial Transaction Only (No Review Option) You may at any time cancel an Ongoing Service by serving your notification of cancellation to us in writing. Upon receipt of your cancellation notice for an Ongoing Advice Service, we will arrange for any future payment of any associated charges to cease. Full details of these services, including costs, are provided within the proposition summary attached to this document. We may also receive some form of benefit if we introduce business to a product provider or another firm. We will tell you before the transaction if we are likely to receive some form of benefit from recommending any product to you, or from working with any product provider or firm. Examples of the cost of our services are included within the about our services and costs disclosure document.

3 PROJECT FEES In certain circumstances where you require a particular package of work to be completed we may agree a specific fee in writing to cover that work. ACCOUNTING TO YOU Unless in exceptional circumstances, we will confirm to you in writing the basis or our reason for recommending the transaction executed on your behalf. We will also make arrangements for all your investments to be registered in your name unless you first instruct us otherwise in writing. We will forward to you all documents showing ownership of your investments as soon as practicable after we receive them; where a number of documents relating to a series of transactions is involved, we will normally hold each document until the series is complete and then forward them to you. Intelligent Financial Advice Limited may arrange business through platforms, which will provide custody services for your assets. Where this is the case, the legal title of investments will be registered in the name of the third party s nominee. Transactions will be transmitted to the fund supermarket, investment wrap platform, or similar third party investment institution for them to execute. Money or transferred assets will be placed immediately with that third party for investment we will never hold the assets for you. We will provide you with the relevant account opening details for the identified third party such as their Terms & Conditions, Nominee and Safe Custody Service, Best Execution Policy, Execution Venues and Conflicts of Interest Policy (or equivalent documents). The legal title of investments will be in the name of the third party s nominee. For non-platform business we will make arrangements for your investments to be registered in your name unless you first instruct us otherwise in writing. INVESTMENT OBJECTIVES & RESTRICTIONS Following the issue of this document, any subsequent advice or recommendation offered to you will be based on your stated investment objectives, acceptable level of risk and any restrictions you wish to place on the type of investments or policies you are willing to consider. Details of your stated investment objectives will be identified during our discussions with you and confirmed in the suitability report that we will issue to you to confirm our recommendation. Unless confirmed in writing, to the contrary, we will assume that you do not wish to place any restrictions on the advice we give you. BEST EXECUTION POLICY It is in the interests of our clients and Intelligent Financial Advice Limited that we obtain the best possible result when placing orders with other firms (e.g. third party brokers) for the execution of client orders or when transmitting orders on behalf of clients for particular investments e.g. shares. We are required under the Rules of the Financial Conduct Authority to take all reasonable steps to provide best execution when carrying out such transactions. Where we place or transmit orders for such investments on behalf of our clients, we may utilise the services of a third party broker and base our decision to place or transmit an order on the price and cost of execution of the order. For orders in collective investment schemes (e.g. unit trust), however, the price of units or shares in the scheme is normally set by the scheme operator or manager and as such we have little influence over the price available. Full details of our best execution arrangements are provided in our Best Execution Policy, a copy of which can be provided on request. MODE OF COMMUNICATION Our communications with clients will ordinarily be in English, both in respect of oral and written communications. We will enter into communication with you through whatever means are convenient to you and us, including face-to-face, telephone, and other acceptable electronic communication methods. DATA PROTECTION ACT 1998 HOW WE USE YOUR PERSONAL INFORMATION We collect data about you and your family during our initial and other meetings with you. We will also collect data about you and your family from other people. We collect the data through note-taking and filling in of questionnaires about you and your family s circumstances.

4 We may make checks with credit rating agencies to authenticate and verify your identity and credit status. We also make checks with organizations with whom you have policies of insurance and investments and with your mortgage provider. These checks are to help us with our legal obligations and to ensure that we provide you with advice that suits your circumstances. The scope and extent of the gathering of information from third parties depends on what type of service you are taking from us. How is your information used? Primarily, we use your data and data about your family s circumstances to provide advice to you and complete transactions on your behalf. We analyse and assess your data to maintain and develop our relationship with you. Depending on the instructions we receive from you, we may pass your data to other professional advisers to enable us to provide advice most suited to your circumstances. Usually, this would be referrals to local accountants, solicitors, tax advisers and sometimes to specialist advisers in the financial and insurance industry where you may benefit from the expertise of such third parties. We, and any third party specialist advisers to whom we introduce you, will, of course, pass your data to organisations when you agree to purchase or amend policies and products. We will retain your data in accordance with law and regulation. For instance, if you are given specialist pension advice, the data will be retained indefinitely. If you want details of the statutory retention periods for the differing product types and classes of data please contact us. We may be required to share your data with our regulator and other third parties including our auditors or insurers. Your right to a copy of your personal data Under the Data Protection Act you have a right, on payment of a fee, currently 10, to obtain a copy of the personal information that we hold about you. If you believe that any information held is incorrect or incomplete, you should contact the Data Protection Officer at our usual address. Any information that is found to be incorrect or incomplete will be amended promptly. Our products and services We provide advice on a wide portfolio of financial products. We believe these are some of the best and most appropriate in the marketplace. We would like to be able to contact you so that we can advise you of new products that might be suited to you. We also may advise you of any developments that might make it appropriate for us, or for third parties, to give you pro-active advice about the investments, insurance and other financial products of which we are aware. We stress that your information would only be used in this way to help us to provide a pro-active service to you. There may be times when we feel that a service or product may be of interest to you. In order to make you aware of these services or products, we, insurers or third parties may wish to contact you so that you can make informed choices about your finances. Please indicate your preferences using the boxes below. Please indicate if we can contact you. Please tick either one or both boxes so that we can advise you of products and services from time to time. Yes, please give me details about products or services in which you think I may be interested. Yes, I am happy for you to pass my details to carefully selected third parties so they can contact me about their products and services Please indicate you preferred methods of contact, if all methods tick all boxes. We would like to provide details to you about products or services we think will interest you. Please tick the relevant boxes below to authorise us to contact you via the following methods: via telephone via post via via SMS You may inform us at any time if you no longer wish to receive this information from us.

5 CLIENT S CONSENT This is our standard client agreement and Data Protection Statement upon which we intend to rely. For your own benefit and protection you should read the terms carefully before signing, as by signing you consent to the terms contained within, including the authorisation to transfer information between parties as described above. If there are any terms within this agreement that you do not understand, please ask for further information. The Client Agreement will come into effect from the date of acceptance of this agreement, which will be confirmed by the date set beside your signature(s) below, unless otherwise stated. Please sign one copy of this letter and return it to Intelligent Financial Advice Ltd to signify your consent to its terms and provisions and also as acknowledgement of receipt of the following documentation prior to signing any application forms:- a) Intelligent Financial Advice Ltd. s Client Agreement Document including Customer Proposition Document explaining our designated service levels (and advisers business card) b) Intelligent Financial Advice Ltd. s Combined Initial Disclosure Document entitled key facts about our services and costs c) A Key Features document, specific to the product(s) recommended. d) A Key Features illustration, specific to your own individual circumstances and which clearly informs you of any commissions we will receive. Product(s)/Provider(s) and Service Level Agreement: Initial Advice and Service Level Ongoing Reviews and Service requirement Level requirement Adviser Fee initial (one off) Adviser Fee ongoing per annum. Adviser Name: Adviser Signature: Date of issue: Client Name(s): a) Client Signature(s): a) Date of Acceptance: a) b) b) b)

6 Initial Advice - Service Level and Fees ADVISORY - Full Advice and/or Limited Scope Advice ADVISORY - Limited Transaction Advice (No Product advice required) ADVISORY - Direct Offer (Reduced Advice) EXECUTION ONLY No initial advice 4% of the portfolio value 3% of the portfolio value 4% of the portfolio value 3% of the portfolio value 1% of the portfolio value 1% of the portfolio value 1% of the portfolio value Or min 500 if greater Or min 400 if greater Or min 300 if greater Or min 300 if greater 80,000 80,000/100 x 4%= , ,000/100 x 3%= ,000 80,000/100 x 2%= , ,000/100 x 1%= 1200 Reviews and Ongoing Advice - Service Level and Fees ADVISORY - Financial Planning ADVISORY - Active Wealth Management Fund Reviews ADVISORY - Personal Wealth Management Fund Reviews INITIAL TRANSACTION ONLY No structured reviews Prestwood or Distribution Technology Wrap Platform (Elevate or Old Mutual Wealth only) Any Wrap Platform or Product Any Wrap Platform or Product Services offered Financial planning to achieve your investment goals, based on your projected lifetime income and outgoings, including: Development of Lifetime Plans Preparation of full Lifetime Planning Report Construction of suitable investment portfolios Portfolio rebalancing Portfolio Review* Valuation* Review and planning meetings* Lifetime Planning Report updates Services offered Quarterly Review of funds Quarterly Valuation Bulk switching Portfolio rebalancing Free Product Specific review for Pension Products Advisory fund management option Services offered Option 1 Wrap Platform Six-Monthly Review of funds Six-Monthly Valuation Option 2 Non Platform Product Annual Review Annual Valuation Free Product Specific review for Pension Products Advisory or Discretionary fund management options Reviews offered subject to Ad Hoc fee Annual Valuation Project Work subject to Ad Hoc fee Product Specific Review subject to Ad Hoc fee * These will take place at an agreed frequency (at least annually). 0-3% Adviser Fee for advised switching of the portfolio value No Adviser fees for advised switching 0-3% Adviser Fee for advised switching of the portfolio value 0-3% Adviser Fee for advised switching of the portfolio value Portfolios based on a panel of funds selected by us as on an advisory basis 4 active fund growth portfolios 2 active fund income portfolios Portfolios based on a panel of funds selected by us as on an advisory basis Not applicable Annual Adviser Fees Fees to be agreed on a bespoke basis as the fees are not linked to the value of your portfolio. Active Funds option = 0.9% p.a. annual adviser fee 100, ,000/100 x 0.9%= 900 1% p.a. annual adviser fee 100, ,000/100 x 1%= 1000 Hourly rate (see ad hoc fees menu) or annual retainer

7 Ad hoc fees The above remuneration and fees will be applied in relation to the selected service level (review of funds/investments under management). Client need Arranging an annuity after PCLS (Pension Commencement Lump Sum abbreviated to PCLS) Fee For Funds up to 100,000 = 3% of the pension value after PCLS if applicable For Funds between = 2% of the portfolio value after PCLS if applicable For Funds in excess of 200,001 = 1% of the portfolio value after PCLS if applicable Or A minimum fee of 500 plus 400 per each additional ceding scheme if greater than the above % based fee (min 750 for enhanced annuities due to adverse medical conditions) Review of endowment policy or Personal Pension or Occupational Pension scheme plus Diploma level ad hoc advice 500 flat fee plus 100 per hour Supplementary advice services e.g. Cashflow planning, completion of end of year tax report on investments held for onward submission to a tax specialist etc 0.25% p.a. of invested funds Please note that Taxation advice is not regulated by the Financial Conduct Authority. Ad hoc advice Specialist (requiring advanced adviser qualifications e.g. AF3 Pensions) 1,500 flat fee plus 125 per hour Administrative support (non advisory) 35 per hour Initial assessment of needs Free Our contact details Intelligent Financial Advice Limited, Bridge House, Derby Road, Long Eaton, Derbyshire, NG10 1NL Tel: Registered Office: 57 New Walk, Leicester LE1 7JB. Incorporated in England & Wales Registration No