1 WELCOME TO ALLIANCE TRUST SAVINGS Guide for Advised Clients
2 2 Welcome to Alliance Trust Savings IN THIS GUIDE This guide is designed to provide helpful information and answer the questions we are most often asked by our Account holders. 03 Who is Alliance Trust Savings 04 How does your service work? 05 What types of Accounts do you offer? 07 How do I access my Account online? 08 Who can manage my Account? 08 How do I authorise others to act on my behalf? 11 What charges do you collect from my Account? 12 When do you process payments to and from my Account? 13 How much can I pay in to my Account? 14 Can I transfer into my Account? 18 How do I take cash or investments out of my Account? 18 What happens to income from my investments? 19 When do I earn a Loyalty Discount? 20 What information will I get from you? 21 What are my rights as a shareholder?
3 Welcome to Alliance Trust Savings 3 WHO IS ALLIANCE TRUST SAVINGS Welcome to Alliance Trust Savings. We re pleased that you and your Adviser have chosen us to manage your investments. We are an award-winning business that looks after the investments of more than 110,000 customers and have been in business since We currently administer over 16.2bn of assets for our customers (as of 30 June 2018). Fairness is central to everything we do. With our flat platform Account fees we charge you for what you do, not what you are worth. Plus, as your wealth grows, your Account fees won t unlike investing with a provider that charges percentage based fees. Your Account charge The flat fee difference Fee based on the value of your Account Flat fee Your Account value So whether you are looking for growth in the longer term or to generate income now, our services are designed to help you do just that. WINNER Best Customer Service WINNER Best ISA Provider
4 4 Welcome to Alliance Trust Savings HOW DOES YOUR SERVICE WORK? We re a platform service provider which means we provide technology and other services that let you and your Adviser access and deal in a wide range of investments. You can hold your choice of the investments on offer, all together in one place and through one or more types of Accounts. Your Adviser will be able to confirm the types of investments on offer to you. Investments Funds Equities ETFs View consolidated portfolio Track performance Buy and sell investments Research and plan new investments Investment Trusts Product Wrappers ISA SIPP GIA Junior ISA Bonds Junior SIPP Wrap Platform You Your Adviser Buy and sell investments Manage client accounts Create model portfolios and rebalance Access planning, research and business management tools Maintain regulatory audit trail Flexible Wide range of products and investments to choose from across the whole of market Simple Everything in one place, not across multiple providers or systems Efficient 24/7 aggregated online service that makes it easier to manage investments
5 Welcome to Alliance Trust Savings 5 WHAT TYPES OF ACCOUNTS DO YOU OFFER? You can hold your investments through a choice of three Account types: 1 Individual Savings Account (ISA) Our most popular Account is our Stocks & Shares ISA. It lets you access your money at any time and you don t have to pay any tax on income or capital gains from your ISA. There are limits to how much you can pay in and you can only subscribe to one Cash ISA and one Stocks & Shares ISA in each tax year. The new tax year begins on 6 April each year. For ease of use our Stocks & Shares ISA allows you to keep current and previous year subscriptions in one Account. 2 General Investment Account (GIA) This is a straightforward Account that lets you buy and sell investments. You can put in as much as you like but your investments are not protected from tax. You can hold as many GIAs as you want. 3 Self Invested Personal Pension (SIPP) This Account is designed for people investing towards their retirement. There is no tax to pay on any investment gains you make. You can also get tax relief on what you pay in, although there are limits for this and we ll claim tax relief for you at basic rate on your personal contributions. We also offer a junior version of each Account to help you give your children a head start in life. Tax benefits depend on your circumstances and tax rules can change. The minimum payment you can make into any type of Account is 50. Before you open an Account, it s important that you read the Key Facts document to make sure it is right for your individual circumstances. Tax treatment depends on individual circumstances and may be subject to change in the future The information here is our understanding in September 2018.
7 Welcome to Alliance Trust Savings 7 HOW DO I ACCESS MY ACCOUNT ONLINE? As an Alliance Trust Savings client, you have access to an online Account which allows you to: view your investments view your Account details change your personal information see your transaction history read your documents and letters What if I don t have online access? You should direct any questions about your Account to your Financial Adviser in the first instance. You can also call our Customer Services Team at between 8am and 5pm Monday to Friday. When you call us you will need to provide your client reference details and answer our security questions. You can find your Client Reference Number in your Welcome Pack. How do I log in? Just go to alliancetrustsavings.co.uk and select the Login button. Alternatively if you have been provided a Login URL directly from your Financial Adviser, please use this to log in. You will then be taken to a screen where you ll be asked for your Personal ID and Password. What if I ve lost or forgotten my Personal ID and/or Password? Follow the lost or forgotten Personal ID and Password link on the login screen, or ask your Adviser to request a new one for you.
8 8 Welcome to Alliance Trust Savings WHO CAN MANAGE MY ACCOUNT? As you have agreed, your appointed Adviser has been assigned to look after your affairs and the operation of your Account(s) with us. You can also arrange for others to act on your behalf such as a solicitor, accountant or family member. There are some instructions we can t accept from third parties or may need to check with you first. Speak to your Adviser regarding third party authority to see which options are available to you. For Junior ISAs and Child SIPPs, if the Account holder is under age 16, a parent or guardian known as the Registered Contact must be appointed to manage the Account on a day-to-day basis. HOW DO I AUTHORISE OTHERS TO ACT ON MY BEHALF? You simply need to let us know in writing. In most cases you can do that using our Third Party Authority Form (available from your Adviser or at alliancetrustsavings.co.uk). If you are asking us to act on a power of attorney you will need to send us either the original power of attorney or a certified copy, along with a covering letter. Once we have completed our necessary checks, the person authorised can give instructions on your behalf online or via telephone. If you want to give others authority, please speak to that person first to agree what will be best for you. And it may be useful to check with your lawyer that the authority you are giving is appropriate. Sometimes, another person might be appointed to look after your financial affairs, regardless of what you have told us.
9 Welcome to Alliance Trust Savings 9
10 10 Welcome to Alliance Trust Savings Making sure there is cash in your Account to cover your charges You and your Adviser are responsible for making sure there is enough cash in your Account to cover charges as they fall due. If it isn t possible to collect any charges owed to us or your Adviser when they fall due, we will sell some of your investments to cover them. Please see our Terms and Conditions for Advised Clients for more information and details of how we will do this.
11 Welcome to Alliance Trust Savings 11 WHAT CHARGES DO YOU COLLECT FROM MY ACCOUNT? Our Charges Guide for Advised Clients gives all the details of the charges we may collect from your Account and when we will collect them. Your Adviser can provide you with a copy of this. Our two main types of charges are Account charges and Dealing Service charges. You may also have asked us to facilitate Adviser Charges through your Account. All other service charges are collected when we provide the service to which they relate. Account charges We have two options for Account charges: Standard or Inclusive. You and your Adviser will have agreed which is most suitable for you. Under the Standard option you pay a quarterly Account charge for ISA and GIA Accounts and an Annual Account charge for SIPP Accounts. Under the Inclusive option you pay a higher annual Account charge, but you and your Adviser can then deal in investments at no extra charge, up to 35 online trades as well as all Regular Buy trades. If you are a non-uk resident for tax purposes or hold investments that we consider to be nonstandard, a Supplementary Account charge will also apply. Dealing Service charges The dealing charges you pay depend on your Account charge type, how you or your Adviser give us dealing instructions (online or by phone) and (in the case of the Standard Account charge option only) how long you have been a client of Alliance Trust Savings (Loyalty Discount) and whether you and your Adviser use our regular dealing or phased investment service. All Dealing Service charges are collected as part of the transaction. If you are buying we collect the charge from the amount you are investing. If you are selling we collect it from the proceeds. Adviser Charging We offer a facility for you to pay your Adviser through your Account with us. You sign an Adviser Charging Agreement with your Adviser, agreeing how much you will pay them: initially, on an ongoing basis or through an invoice. We collect any Adviser Charges you have agreed on a monthly basis. You have to have the money in your Account to cover them by the start of the month.
12 12 Welcome to Alliance Trust Savings WHEN DO YOU PROCESS PAYMENTS TO AND FROM MY ACCOUNT? This summary gives the key dates. Please note that if any of the dates fall on a weekend or holiday, we will collect the payment the next working day. Day of the month 1st 1st February, May, August and November 1st 2nd 5th 6th 8th 12th 15th 20th 20th 22nd Annually on charge anniversary date or next business day Action Direct debits are collected We collect the quarterly GIA and ISA Account charge under the Standard Account charge option We collect any annual Account charges that are due Where we couldn t collect any Account charges or Adviser Charges that were due in the preceding month, we sell investments from your Account to cover them Your Account is valued to work out any Adviser Charges falling due this month Adviser Charges are collected from your Account Direct debits are collected When any regular withdrawals that you or your Adviser have instructed are paid to your bank account (as long as those instructions were in place by the 5th of the month) Direct debits are collected We act on any regular or phased investment instructions you and your Adviser have set for your Account When any SIPP drawdown income you have asked for is paid to your bank account Direct debits are collected Supplementary Account charge if you are non-uk tax resident or hold non-standard investments. Full details provided in the Charges Guide for Advised Clients
13 Welcome to Alliance Trust Savings 13 HOW MUCH CAN I PAY INTO MY ACCOUNT? The minimum payment you can make to your Account is 50. You can arrange to make payments in by Direct Debit, direct transfer from your bank account or by cheque. You can make payments as often as you like, subject to these Account limits. Please remember that any money you pay into your Account to cover any Account charges or Adviser charges will count towards these limits. Account Tax year Account limit ISA Account 2018/19 20,000 SIPP Account 2018/19 40,000* General Investment Account n/a No limits Junior ISA Account 2018/19 4,260 Child SIPP Account 2018/19 3,600 First Steps GIA Account n/a No limits * Typically up to 40k depending on individual circumstances. Where there are limits, these are set by HMRC because the Accounts are tax-advantaged. Unless you are transferring investments that you ve already made into an ISA or pension in the current tax year, transfers from one ISA to another or one SIPP to another don t count towards the relevant limits. There are Annual and Lifetime Allowances for paying in to pensions. If you exceed these you might have to pay a tax charge at a high rate. Full details are provided in the SIPP Key Facts.
14 14 Welcome to Alliance Trust Savings CAN I TRANSFER INTO MY ACCOUNT? Transferring investments and cash into your Alliance Trust Savings Account is simple. You can transfer investments without selling them first provided we offer the same investment you want to transfer. We offer well over 4,000 different investments. To see the total list of options available to you, simply log into your Account and you can access the available investment list. There may be a period where you are not invested and when you might not benefit from any increases in the market. Also not all of your existing investments may be available through Alliance Trust Savings. If your investment is not available, you or your Adviser can ask us to add it. If we agree to add it, this might take some time. Otherwise you can ask your current provider to sell the investment and transfer in cash. How do I transfer in an existing ISA? ISA rules mean you can t withdraw your ISA investments and transfer them yourself, so you need to ask us to arrange your ISA transfer(s) for you, including any transfers in cash. Your Adviser would normally arrange an ISA transfer for you, but you can ask us to arrange a transfer directly if you wish. The transfer process starts when we agree and accept the details of the transfer from your existing ISA manager. After that, your existing ISA manager should make your transfer within 30 days. You can transfer in: all your subscriptions for the current tax year (you can t transfer just some of these) all or (if your ISA manager allows this) some of your previous years subscriptions Sometimes we can t accept transfers in, but we will let you and your Adviser know if this affects you. And once transferred, our ISA Terms and Conditions will apply to your investments. Can I transfer individual equity investments into my ISA? Yes, but only from an employee share scheme. Our Request to Transfer Investments Acquired from an Employee Share Scheme into a Stocks & Shares ISA gives the details of how to do this. You and your Adviser can access this at alliancetrustsavings.co.uk. Otherwise you and your Adviser can use our Share Exchange Service. How do I transfer investments to my GIA? If you have agreed with your Adviser, you can transfer investments held on your behalf by another provider (including a fund manager if you are invested directly in a fund) and also equities held in your own name. Your Adviser would normally arrange this for you but you can instruct us directly if you wish. You will need to complete a Transfer In Form in all cases and also a Crest Form for each equity investment held in your own name that you want to transfer. You must send each Crest Form to us with the relevant share certificate(s).
15 Welcome to Alliance Trust Savings 15 What do you charge to transfer? We don t charge for making transfers into your Account, but your existing provider may charge you for transferring out, your Adviser should inform you of associated charges. How do I transfer into my SIPP? Pensions are a long term investment and can be complicated. You could lose valuable benefits by transferring. You should seek financial advice before making any pension transfer and if your Adviser agrees it is right for you, they can arrange the transfer for you. We accept transfers from registered pension schemes that are: Defined Contribution (sometimes called Money Purchase ) occupational schemes Personal Pensions (including other SIPPs) and Stakeholder Pensions that includes funds that are already in Income Withdrawal Retirement Annuity Contracts Free Standing Additional Voluntary Contribution plans and most Additional Voluntary Contribution plans associated with occupational schemes. Important information about pension transfers You can t transfer money to us from safeguarded rights (this includes Defined Benefit transfers, guaranteed annuity rates and block transfers) unless you have taken advice from a Financial Adviser with the required qualifications. The only exception is when the total transfer value of all your benefits in that scheme is less than 30,000. You are unlikely to be able to transfer money to us from a public sector Defined Benefit scheme at all. The transfer process starts when we agree the details of the transfer with your existing pension scheme, including to accept it. We can accept transfers in cash, directly in the form of investments (where we and your previous pension scheme both offer the same investments) or a mixture of both. Sometimes we can t accept transfers in, but we will tell you if this affects you. And once transferred, our SIPP Terms and Conditions will apply to your investments. Remember, there are Annual and Lifetime Allowances for paying in to pensions. If you exceed these you might have to pay a tax charge at a high rate. The details are in the SIPP Key Facts.
17 Welcome to Alliance Trust Savings 17 CAN I TRANSFER INTO MY ACCOUNT? (CONTINUED) Can I set up regular investments? Yes, your Adviser can arrange this for you. You can either set up a Direct Debit for regular monthly investment or pay a lump sum into your Account and make regular (phased) investments from there. If you agree to fund regular investment by Direct Debit you and your Adviser must give us 10 days notice to set this up. We buy investments two Business Days after your Direct Debit has been credited to your Account. Are there any investment restrictions? If you buy an investment that is for UK residents only and then stop being a UK resident you might still be able to hold the investment but not buy any more of it. If you move and are in any doubt whether you may still hold an investment please discuss this with your Adviser. Some investments have conditions or may be subject to a Supplementary Account charge. For example, there might be a minimum amount you have to buy or the investment might be for UK residents only (as is the case with some funds). If you can t meet the conditions you may not be able to buy the investment or may be charged for the additional administration required to manage your investments. If there are conditions you will find the details in the Key Investor Information Document, Key Information Document, Prospectus or our Charges Guide for Advised Clients. These are available in the Investment research section online, by contacting your Adviser or by calling our Customer Services Team.
18 18 Welcome to Alliance Trust Savings HOW DO I TAKE CASH OR INVESTMENTS OUT OF MY ACCOUNT? Your Adviser can arrange this for you or you can ask us directly. For some Accounts there are restrictions, for example: for SIPP Accounts you can t normally take any cash or investments out until you reach the age of 55 (set to go up to 57 from 2028) for Junior ISA Accounts you can t normally take any cash or investments out until the Child reaches the age of 18. Details are in the Key Facts for each Account. In both above cases you can ask to transfer your cash or investments to an equivalent account with another provider at any time. For all Accounts, we charge for transferring out to other providers. Details are in our Charges Guide for Advised Clients. For ISA and GIA Accounts the minimum amount you can take out is 100. That s unless you are closing your Account. Please ensure that you there is enough money in your Account to withdraw the amount you are requesting. For SIPP Accounts there is no minimum amount. You should speak to your Adviser and read our guide to Accessing Your Pension Savings before taking any cash out of your SIPP. You can receive your money by: BACS this is our normal payment method if you ve given us details of your bank account. CHAPS but there is a charge for this. Details are in our Charges Guide. For GIA Accounts in more than one name we ll only pay to a bank account in the name of whoever is named in the Withdrawal instruction as the Account holder. WHAT HAPPENS TO INCOME FROM MY INVESTMENTS? We pay any income you receive from your investments into your Account in cash. You and your Adviser can agree and give us instructions for investing or withdrawing it from there.
19 Welcome to Alliance Trust Savings 19 WHEN DO I EARN A LOYALTY DISCOUNT? If your Account is on the Standard Account charge option, you may be able to benefit from a Loyalty Discount. Loyalty Discounts only apply to our Dealing Service charges when you buy or sell investments online or by phone. They depend on how long you have been an Alliance Trust Savings Customer and are determined (for all of your Accounts) based on the date you opened your first Account (as long as you have held an Account consistently since this date). Account age Discount Online Phone Less than 5 years 0% years 10% years 15% years 20% Greater than 20 years 25%
20 20 Welcome to Alliance Trust Savings WHAT INFORMATION WILL I GET FROM YOU? We supply the following information to you based on your preferences (online or paper). You can also access these through your online Account. We will send you a notification by to let you know when it is available. If you choose to receive paper documentation, we will charge you for this. Details can be found in our Charges Guide for Advised Clients. 1 Account Statement and Valuation (all Account types) You will receive regular Statements and Valuations which will provide you with the value of your Account, your transaction history and outline all charges paid. 2. Contract Notes (all Account types) Whenever you buy and sell investments, confirming the details of your deal(s). 3. Consolidated Tax Certificate (GIA Accounts) After the end of the tax year, detailing tax-relevant income payments that you received into your Account during that tax year. This is to help you in completing your tax return and is accepted by HMRC as evidence for tax credit. 4. Statutory Money Purchase Illustration (SMPI) (SIPP Accounts) After the end of the tax year and before 5 July, showing the estimated pension you might get in today s prices if you were to buy a guaranteed income for life when you retire (an annuity). If your pension fund is worth less than 1,000 or you are already taking money out of it, you may not be sent an SMPI. 5. Pension Savings Statement (SIPP Account) If the total amount contributed into your SIPP during a pension input period (PIP) is more than the Annual Allowance for the tax year in which the PIP ends we issue a Pension Savings Statement.
21 Welcome to Alliance Trust Savings 21 WHAT ARE MY RIGHTS AS A SHAREHOLDER? We hold your investments through our nominee company. You still own the rights to the underlying investment (you are the beneficial owner ) but the nominee is the legal owner. This means that the companies and funds you have invested in communicate directly with our nominee rather than with you. Our nominee also has the right to vote on any issues relevant to your investments. Unless you or your Adviser ask us to, we don t normally send you the information we receive from the companies or funds you invest in. Neither do we exercise any voting rights on your behalf. But you can ask us to: The only exception to this is for certain Corporate Actions (actions a company or fund are taking that impact your investment and may mean a decision for you), where our process is summarised in the following table. vote on any company or fund resolutions on your behalf (as long as there is a right to vote and you give us clear instructions for how you want us to vote) arrange for you to attend a company or fund meeting in person (as a non-voting guest) help you to find a copy of a company s annual report and accounts. Companies that you invest in may contact us to send you information on their behalf e.g. annual and interim reports and notices of general meetings. We ll tell you about We ll tell you about and you can give us instructions about We won t tell you about Any bonus issues of shares or units Mergers and de-mergers If a company is de-listed If a company goes into Administration If a company goes into liquidation or is wound up If there is an offer of cash in exchange for your shares If there is an offer of new shares in place of your current shares. When a company is returning some of its profits to shareholders When a company is being taken over or acquired by another company If you get a bonus issue of subscription shares that you can later convert into ordinary shares in a company If a company is giving existing shareholders the right to buy a fixed amount of shares at a price set by the company If a company is giving existing shareholders the right to buy additional shares, and these rights can be traded. If a company is giving existing shareholders the opportunity to buy more shares at a discounted price If a company offers to buy back shares from their shareholders at a price higher than the shares are currently trading at When a company offers to redeem shares for cash Any sub-division of shares or units Any consolidation of shares or units Any fund name change Any change in a fund AMC Any change in a fund s Investment Strategy Annual General Meetings for companies or funds When a company offers to redeem shares for cash Any benefits being made available to shareholders
24 Alliance Trust Savings Registered head office: PO Box 164, 8 West Marketgait, Dundee DD1 9YP Lines are open 8am to 5pm Monday to Friday. Calls may be recorded for training and monitoring purposes. Alliance Trust Savings Limited is a subsidiary of Alliance Trust PLC and is registered in Scotland No. SC 98767; is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number Alliance Trust Savings gives no financial or investment advice. ATS AWEB G 0001 (9674)