Technical guide For adviser use only (not to be relied on by anyone else)

Transcription

1 FundZone Technical guide For adviser use only (not to be relied on by anyone else)

2 Contents 03 What is FundZone? 03 The advantages 03 Who is eligible? 03 How to invest on FundZone 03 ISA cash transfers 03 Re registration (ISA/Investment Funds) 04 Investment amounts 04 Making payments 04 Share classes 04 Buying and selling units 05 Withdrawals 05 Charges 05 Taxation 06 Functionality 06 Servicing functionality 07 Statements 07 Contract notes 07 Cancellation rights 07 Upon an investor s death 07 Illustrations and Key Features 02/08 FundZone Technical Guide

3 What is FundZone? FundZone is a mutual funds portfolio platform for advisers, available only through Standard Life. It offers a wide choice of funds, online transactions and a selection of risk assessment and fund analysis tools. FundZone is accessed via Adviserzone. If you are not already registered for Adviserzone, you will need to do so to fully utilise the FundZone platform. The advantages FundZone offers a wide range of funds and fund managers covering all of the main asset classes. FundZone also provides a range of support and research tools to make fund analysis, selection and review more efficient: Fund selection filters (such as asset class, IMA sector, performance and citicode) Fund Factsheets and KIIDs Links to literature library Links to fund manager websites and microsites Who is eligible? Age restrictions Minimum Age for Investing: FundZone is available to anyone over 18 years of age. Maximum Age for Investing: There is no maximum age limit. Restrictions on term There is no fixed term for investing. Geographical limits and acceptable applicants Investors must be resident in the UK for tax purposes. FundZone can accept the following trustee business: All existing trusts New Gift Plans FundZone is not available for Corporate Investments. How to invest on FundZone Investments can be made into Supermarket Cash, through an ISA wrapper, or directly into funds (OEICs or Unit Trusts) through the Investment Funds product. Investments can be made on FundZone by: Putting money into Supermarket Cash Investing in a new Stocks & Shares ISA Cash transfer of an existing Cash or Stocks & Shares ISA from another ISA Manager Investing in the Investment Funds product Re registering an existing OEIC/UT from another OEIC/UT Fund Manager A combination of the above ISA cash transfers Both Cash and Stocks & Shares ISAs can be transferred onto the FundZone platform in cash. If you transfer a Cash ISA though, it can only be reinvested into a Stocks & Shares ISA on the FundZone platform. We do not offer a Cash ISA. Transfers can be done online, or by submitting a paper application. A letter of authority signed by the client is also required. An ISA transfer must be made into a fund that offers an ISA investment option. If you want to transfer an ISA part way through the tax year to which it applies, the full year s subscription must be transferred. Partial transfers can be accepted for previous tax years. Re registration (ISA/Investment Funds) ISA and Investment Funds can be re registered onto the FundZone platform. Re registration may be completed online, or if you prefer, by submitting the paper based application form (FZMF33B for an ISA and FZMF33C for Investment Funds). The transfer can be part reregistration and part as cash. A letter of authority signed by the client is also required. There is currently no charge made by Standard Life for re registering online. However, we reserve the right to pass on any charge made by an existing manager or ISA manager. Full or part previous tax years for ISAs can be re registered onto FundZone, however current year transfers can only be re registered in full. Where only a part year is to be transferred, this will be subject to agreement by the existing provider. FundZone Technical Guide 03/08

4 Investment amounts Stocks & Shares ISA Minimum regular investment is 50 a month Minimum single initial investment is 500 You can invest the full yearly ISA allowance of 20,000 for the tax year 2018/19 into: A Stocks & Shares ISA; or A Cash ISA; or An Innovative Finance ISA; or Any combination of Stocks & Shares ISA, a Cash ISA, an Innovative Finance ISA and Lifetime ISA (maximum 4,000) We currently only offer a Stocks & Shares ISA. Investment Funds and Supermarket Cash: Minimum regular monthly investment is 50 Minimum single initial investment is 500 There is no maximum amount for an Investment Fund. Additional investments Additional investments can be made at any time. For lump sum/yearly investments, the minimum additional investment is 250. For monthly investments, the minimum additional investment is 25. Making payments Regular investments can be made: Monthly Quarterly Half yearly Yearly Regular investment must be made by direct debit. Investment frequency can stop, start or be varied as an investor wishes. Single investments can be made at any time to Standard Life by cheque, direct debit or BACS/CHAPS payment. Cheques should be made payable to Standard Life Savings Limited. Share classes The following investment options are available: Income funds, where the income received by the funds is either paid out as a regular income or used to purchase more units for the investor Accumulation funds, where the income is re invested in the fund to increase the value of the fund A combination of the above options Buying and selling units An adviser can instruct the purchase and sale of units on behalf of their client online, by telephone or in writing. Dealing instructions we receive via the Fundzone platform will be executed no later than the third business day after the business day on which we receive them. Please see the Terms and Conditions for further details. Buying units Investments by lump sum payments will reflect the price of the funds available after the next dealing cut off point. Investments made by Direct Debit will reflect the price of the funds after the next dealing cut off point following collection of the investor s Direct Debit. Selling units The proceeds from the sale of units will be credited to the investors account on the settlement date subject to us receiving payment from the relevant fund manager. The investor must be aware of the minimum value of units that can be sold and the minimum value of units that must be retained for each fund. These minimums are explained in the Key Features Document (FZMF17) and in the relevant fund factsheet. Please note that an ISA can only be held on FundZone through a fund that offers the ISA investment option. 04/08 FundZone Technical Guide

5 Fund switches Funds can be switched on the platform; there is no charge for this. For fund switches, sell and buy contract notes are issued. Withdrawals Regular withdrawals Regular withdrawals can be made as detailed below: Regular withdrawals can be taken from funds with an accumulation share class, and from funds with an income share class. If a client has chosen to take income payments, these will continue in addition to any regular withdrawal unless the client has instructed us to reinvest the income. Regular withdrawals can also be taken from Supermarket Cash Regular withdrawals are taken at product level ISA/Investment Funds/ Supermarket Cash Withdrawals can be taken on a monthly, quarterly, half yearly and yearly basis Withdrawals are taken either on a percentage or monetary amount basis Regular withdrawals can also be set up from ISA and Investment Funds with the proceeds going to Supermarket Cash. This can be used to fund any product and/or adviser charges on a regular basis If an investor takes regular withdrawals they also have the option to take any income generated by the fund, or have this income re invested. Payment is made into the investor s bank account by the date they have selected. If the date of payment falls on a weekend or bank holiday, the payment is made on the last working day prior to the start of the holiday period/weekend. An investor can cease to take regular withdrawals or re start them at any time. The minimum regular withdrawal is 25 or 0.5% (provided that this % equates to a minimum of 25). There must be a minimum of 500 within the account to allow regular withdrawals to be paid. One off withdrawals The value of your client s Investment Funds must be at least 500 to allow a one off withdrawal to be made from their Investment Funds. The minimum one off withdrawal from their Investment Funds is 250. There is no minimum amount for one off withdrawals from their ISA. All withdrawal payments will be made to the investor s nominated external bank account. Single withdrawals can be set up so that the proceeds going to Supermarket Cash can be used to fund any adviser charges and product charges. Note: For ISAs, as there is a limit on the amount that can be paid into a Stocks & Shares ISA in any tax year, the investor may not be able to reinvest any amount withdrawn. Charges Please refer to our guide FundZone charges - Guide to fund, product and adviser charges (FZMF21) for details of charges. Taxation What about Tax? ISA All ISA earnings, whether derived from income or capital growth or both, are exempt from UK personal Income Tax and Capital Gains Tax. You need not declare any income or capital gains to HM Revenue & Customs on your tax return. Investment Funds Income from Shares and Funds paid as a dividend will be subject to the Dividend Allowance of 2,000. Tax will only be due on Shares and Fund income over this amount. Income from Interest paying funds will be subject to the Personal Savings allowance of 1,000. Tax will only be due on interest income over this amount and your tax liability depends on your own personal circumstances. You may have a personal liability to Capital Gains Tax when you cash in part or all of your investment within your investments funds. If the value of the ISA or Investment Funds falls below 250, we will be entitled to terminate the ISA and sell all units. We will pay the proceeds, less any charges incurred, to the investor. Withdrawals can be set up at the new business stage or later. FundZone Technical Guide 05/08

6 General On your death, the value of your ISA and/or Investment Funds will form part of your estate and may be liable for Inheritance Tax. Your tax liability is dependent on your personal circumstances. The information here is based on current tax legislation which may change in the future. If you have any doubt over the tax treatment of your investments, you should, in the first instance, speak to your tax adviser. Additional information for Investment Funds only: Dividend payments will be subject to the Dividend allowance of 2,000. Rates for income above the 2,000 limit are: Basic rate taxpayers: 7.5% Higher rate taxpayers: 32.5% Additional rate taxpayers: 38.1% Personal Savings Allowance available on interest income: Basic rate taxpayers: 1,000 Higher rate taxpayers: 500 Additional rate taxpayers: nil Supermarket Cash tax Interest on deposits in Supermarket Cash is paid net of tax at 20%. The interest rate paid may be zero. Functionality New business submission Advisers are able to submit new business on the FundZone platform. Access terms for FundZone will be the same as Adviserzone. When an adviser has signed up for Adviserzone, no further authorisation is required. The FundZone Terms and Conditions are accepted by a client when an adviser submits to us an application form signed by the client to open an ISA and/or Investment Funds. Fund selection filters Advisers are able to use the Fund Selection Filters to search for particular funds. These can be displayed in a variety of ways such as, Investment Type; Fund Manager; Type of Fund; Fund Rating; Performance and Sector. Multiple filters can also be applied in order to narrow down fund selection, to identify a range of funds that meet a very specific set of criteria. Risk Profiling Tool A stand alone version of the Risk Profiling Tool is available on Adviserzone. This tool provides a risk questionnaire that assesses each client s overall attitude to risk. This tool can be used in conjunction with the FundZone tools. Servicing functionality Servicing Advisers have transactional access to FundZone and can perform servicing online, including fund switches, purchases, transfers, encashments and changes to clients personal details. Advisers can also run reports at client and adviser firm level, including valuations and investment transaction reports. Clients may request read only access to FundZone. The FundZone Customer Centre will provide support to advisers. The FundZone Customer Centre can be contacted on (call charges will vary) during the following times: Monday to Friday, 9am to 5pm. The address for writing to us is: FundZone Standard Life Dundas House 20 Brandon Street Edinburgh EH3 5PP Standard alterations Standard alterations can be made via the FundZone Customer Centre. For example, a client s change of address can be completed by writing to the FundZone Customer Centre and provided the instruction comes from an authorised person the change will be made. Similarly, the change can be made over the telephone by an authorised person. We will not issue a confirmation letter unless one is requested. Documentation is required to verify a change of name. 06/08 FundZone Technical Guide

7 Advisers are also able to make certain changes online, such as updating a client s change of address. Valuations Client valuations can be obtained online, and are also available on request. A client can request a valuation either by writing to the FundZone Customer Centre or over the telephone. Telephone dealing For first investments, telephone dealing is available for Investment Funds only. It is not available for ISAs. Once an ISA and/or Investment Funds are open, telephone dealing is available for both products. To place a telephone deal, advisers will telephone the FundZone Customer Centre, confirm that they have a completed application form and a cheque and instruct the investment. The funds will then be automatically purchased. The deal will be placed in anticipation of receiving settlement, which must be received within 5 working days. Statements Statements will be issued every six months. These are issued at product level (ISA or Investment Funds). A copy of the last statement produced can be obtained online, or by contacting the FundZone Customer Centre. Advisers can access current valuations online or by contacting the FundZone Customer Centre. Contract notes Consolidated, or single contract notes will be issued to the client and adviser in respect of multiple deals confirmed on the same business day. The client must receive the contract note. For fund switches, separate sell and buy contract notes are issued. Cancellation rights An investor has 30 days from: (a) the date of their acceptance of their terms in which to cancel their ISA, and (b) receipt of their first contract note in which to cancel their Investment Funds. If the investor wishes to cancel their ISA transfer they must exercise their cancellation rights within 30 calendar days of opening the ISA. The cancellation request should be sent to the FundZone Customer Centre. If the investor cancels during the 30 day period, we will sell any units already purchased and, subject to the terms and conditions, return the amount raised on sale to the investor, minus any loss or plus any gain. We will also deduct any exit charges imposed by the managers of the funds in which they were invested. This may be less than they originally invested. Product charges will continue to apply until the account is closed, product charges that have already been deducted will not be refunded. We will reclaim any adviser charges which have been paid out. Upon an investor s death Once we have received all the necessary details from the investor s legal representatives, we will calculate the final value of the investment and transfer the proceeds to them. Alternatively, we can transfer their holdings to another individual providing that we receive evidence of their identity as proof that they are entitled to receive the proceeds. We will hold any income generated after the investor s death until we receive all the necessary details. On the investor s death, their account stops qualifying for the tax advantages of an ISA. The units will continue to be held in their account and their value may continue to rise or fall from day to day. If they were not entitled to all tax credits we have already allocated to their account, some may be recovered. Any adviser charges which have previously been set up will be cancelled. If an investor dies their surviving spouse or civil partner will get an extra ISA allowance. This extra allowance will be the same as the amount in their ISA on the date of death. Illustrations and Key Features Sample illustrations are provided within the Key Features Document (FZMF17). FundZone Technical Guide 07/08

8 Find out more Call us on (Mon to Fri, 9am to 5pm). Call charges will vary and calls may be recorded and/or monitored to help improve customer service Standard Life Savings Limited, provider of the FundZone Platform, is registered in Scotland (SC180203) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Savings Limited is authorised and regulated by the Financial Conduct Authority. FZMF Standard Life Aberdeen. All rights reserved.