INVESTOR PORTFOLIO SERVICE (IPS) THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS.

Transcription

1 INVESTOR PORTFOLIO SERVICE (IPS) THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS.

2 2 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS. 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 25 May Changes from the last version: We ve updated clause A.14.2 DATA PROTECTION to reflect the implementation of the General Data Protection Regulation (GDPR). 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 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.

3 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 3 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 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 Service PO Box 1112 Chelmsford CM99 2UX Or such other addresses that we tell you about after acceptance. 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.

4 4 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 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.

5 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 5 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 or by contacting the FCA on Their address is: Financial Conduct Authority 25 The North Colonnade Canary Wharf London 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 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.

6 6 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 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 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 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 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 government/publications/personal-savings-allowancefactsheet 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 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

7 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 7 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 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 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 Commissionincluded 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.

8 8 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 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 , account number , 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).

9 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 9 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.

10 10 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 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

11 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 11 sell 110% of the amount required. Any Sale for Regular Payment will have a minimum value of 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 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

12 12 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 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 re committed to protecting and respecting your privacy. We collect your personal information so that we can verify your identity, set up your account and provide ongoing administration. We need this information to carry out our obligations and to provide you with the products and services under the terms of your contract with us. We work with carefully selected suppliers that carry out certain functions on our behalf. We only share the appropriate level of personal information necessary to enable our suppliers to carry out their services and they need to keep the information safe and protected at all times. Our suppliers must only act on our instructions and can t use your personal information for their own purposes. The personal information we collect may be transferred to, and stored at a destination outside the European Economic Area (EEA). This could be to other companies within the Aegon Group or to our service providers. Where any such processing takes place, appropriate controls are in place to make sure your information is protected. We may disclose your information to credit, fraud and financial crime agencies to enable us to verify your identity and help make decisions regarding the ongoing administration of your investments. This will be undertaken during the application process and on an ongoing basis, for you and anyone you re linked

13 THE INVESTOR PORTFOLIO SERVICE NON-ADVISED TERMS AND CONDITIONS 13 with financially or other members of your household. Our enquiries or searches may be recorded. You can find more information on how we use and share your personal information, including how long we keep it and details of your rights at www. nationwide.onlineips.co.uk/docs/your-personalinformation.pdf or by contacting us. For Your protection we will record all phone calls between You and our customer services relating to any trade you make. YOUR PORTFOLIO INVESTMENTS TERMS AND CONDITIONS. This section contains the Portfolio Investments Terms and Conditions, applying to unit trust and OEIC investments, including Individual Savings Accounts (ISAs). These Portfolio Investments Terms and Conditions should be read alongside the IPS Terms and Conditions. These Portfolio Investments Terms and Conditions, together with the IPS Terms and Conditions, set out the legal agreement that applies to your investment through IPS. The Terms and Conditions, which are governed by English law, shall apply to an Investment Account/ISA as soon as your Application (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 unless we agree with you otherwise. CONTACTING US Write to us You can write to us with instructions on your investment, or if you have any questions or want to make a complaint: Investor Portfolio Service PO Box 1112 Chelmsford CM99 2UX Call us You can call our Customer Services on 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.