STOCKS & SHARES ISA Key Features of the Alliance Trust Savings Stocks & Shares ISA Tax Year 2014/15 This is an important document which you should keep.
About this booklet This Key Features document will give you information on the main features, benefits and risks of the Alliance Trust Savings Stocks & Shares ISA. You should read this document carefully. If you would like further information, please contact us. We will be happy to help answer any questions you might have. Helping you decide What should you know before you invest? What is the purpose of this document? To give you a summary of information to help you decide if you want to invest in our Stocks & Shares ISA. What questions should I ask before I invest? In this document we have given you the answers to some very important questions about the Stocks & Shares ISA. These are set out between pages 4 and 6 and will give you important information to help you make your investment decision. The Financial Conduct Authority The Financial Conduct Authority is the independent financial services regulator. It requires us,, to give you important information to help you decide whether our Stocks & Shares ISA is right for you. You should read this document carefully so you understand what you are applying for and keep it safe for future reference. Its aims To offer you tax efficient investment through an ISA To give potential for capital growth or income or a combination of both To allow you to choose from a wide range of investments from our platform. You may want to use a financial adviser to help you make these decisions To provide you with the ability to make regular and one-off withdrawals or a combination of both Your commitment When you make a payment, the minimum to the Stocks & Shares ISA is 50. This may be a single payment or regular savings by Direct Debit To pay the annual account charge as long as you have a Stocks & Shares ISA with us To ensure you understand what risk you are prepared to take and match this to the risks associated with any investments you make To subscribe no more than the annual maximum allowance each tax year To only open and subscribe to one Stocks & Shares ISA per tax year To view your Stocks & Shares ISA investment strategy as a medium to long term commitment. This usually means that investments should be held for 5 years or more, however there is no fixed term Risk Factors General risks for the Stocks & Shares ISA As a self select ISA, you will be responsible for making investment decisions The value of your investment, and any income arising, may fall as well as rise and you may get back less than you invested Any returns are subject to investment performance Investment returns are not guaranteed. Past performance is not a guide to the future HMRC rules and applicable tax laws may change in the future We regularly review our charges and may alter them to reflect changes in our costs. If you use your right to cancel within the first 30 days and the value of your investment has fallen when we receive your cancellation instruction, the amount you get back will be less than you paid in Investment specific risks Each investment carries a different level of risk; some will carry more risk than others. Full details of the risks that apply to each fund can be found in the prospectus for the relevant fund which is available online or by calling our Client Services team Investment made in funds available on our platform are managed by fund managers who are able to make their own investment decisions The decisions made by these investment managers may not take into account your interest. Full details of the risks that apply to each fund can be found in the fund s prospectus which is available online or by calling our Client Services Team Shares are stakes in a company. When you buy shares you become a joint owner of the company with the other shareholders. The industry which the company is part of may fail or the company itself may fail The price of shares on stock markets is affected by various factors including political, economical and social factors, not necessarily controlled by the management of the company but the market, government or non-governmental organisations, which may be on a national or global basis Overseas investments are subject to currency fluctuations There may not be a market to buy or sell the shares you are interested in at the time you want to trade Property funds can be difficult to sell, you might not be able to sell a fund when you want to. The valuation of a property is generally a matter of opinion, rather than fact 3
your Questions answered Who is our Stocks & Shares ISA intended for? Our Stocks & Shares ISA is designed for someone who is looking to hold primarily equity based investments in a tax efficient wrapper and is comfortable with the risks associated with these investments. The account should be considered as a medium to long term investment. Equity based investments give the possibility of better returns but your capital is at risk. Where can I get advice? We do not give investment or financial advice. If you wish to receive that advice from a financial adviser you can appoint one and agree details of their fees with them. You can search for a local financial adviser at www.unbiased.co.uk What is a Stocks & Shares ISA? A Stocks & Shares ISA is a tax advantaged account which is suitable for a medium to long term investment. Who can apply for a Stocks & Shares ISA? You must be 18 years of age or over and resident in the UK or otherwise qualify for the purpose of the ISA regulations. You can only hold a Stocks & Shares ISA in your own name. How do I apply for a Stocks & Shares ISA? You can apply online at www.alliancetrustsavings.co.uk. You may also apply by post by completing an Application Form. Please note if you complete the postal investment instructions you will incur higher charges for postal dealing than online. Can I change my mind about my application? You have the right to change your mind. We will remind you of this right when your application has been accepted and will send you a Cancellation Notice form. You will have up to 30 days from the date you receive this notification to cancel your application. If you decide that you do not want the ISA, please let us know in writing within 30 days and we will give you your money back, less any reduction in the investment value where applicable. The easiest way to cancel is to complete the Cancellation Notice we send you and return it to us. Or you can write to us at: Client Services Team Remember to include your full name, address and Client Reference Number, and state clearly that you wish to cancel your ISA. If you do not cancel within 30 days, your ISA will continue as set out in this document and the Terms and Conditions. How much can I subscribe to a Stocks & Shares ISA? You can subscribe up to 11,880 in the 2014/15 tax year. Changes planned for 2014/15 Tax Year to ISAs In the March 2014 budget, the government announced changes to the current ISA rules and allowances that will apply from 1 July 2014. From 1 July 2014, the 2014/15 overall annual ISA subscription limit will be increased from 11,880 to 15,000. All of the new limit may be held as Stocks & Shares, as cash or any combination of the two. Under the amended rules, you will be able to transfer your investments from a stocks and shares ISA to a cash ISA. Currently transfers are only possible from cash ISAs to stocks and shares ISAs. How do I pay into a Stocks & Shares ISA? Our Stocks & Shares ISA offers a flexible range of methods for you to make payments into your Account. You may choose the most convenient method for you. Direct Debit You can arrange for regular payments into your Account by Direct Debit. These can be monthly or quarterly. You can choose to have your Direct Debit collected on the 1st, 8th, 15th or 22nd of the month. To set up a Direct Debit, you can use the Manage My Account section of i.nvest or complete a Direct Debit Instruction. Copies are available from www.alliancetrustsavings.co.uk or by calling our Client Services Team. Debit card You can pay into your Account using your debit card online and by calling our Client Services Team on 01382 573737. Cheque You can pay into your Account by cheque at any time. To make a cheque payment, you should make the cheque payable to and send it to us attached to a completed Instruction Form. Our Instruction Form is available from www.alliancetrustsavings.co.uk or by calling our Client Services Team. Bank transfer You can transfer funds directly from your bank account into your Alliance Trust Savings Stocks & Shares ISA. Please contact our Client Services Team on 01382 573737 for details about how to complete this transaction. Can I change how often I make subscriptions to my Stocks & Shares ISA? You can start, stop and vary payments into your Stocks & Shares ISA at any time. 4
How do I withdraw money from my Stocks & Shares ISA? You can make a one-off withdrawal from your ISA at any time by completing a Withdrawal Form which is available online. Alternatively, please call our Client Services Team who will send you a form. The minimum amount you can withdraw without closing your ISA is 100. We can make payments electronically to your bank account by BACS or cheque. Any withdrawals will reduce the value of your ISA. Can I make regular withdrawals from my Stocks & Shares ISA? Yes. You can allocate dividend payments so they are paid out to you or you can withdraw a regular fixed cash amount from your deposit account. All withdrawals are subject to funds being available in your Stocks & Shares ISA. You cannot withdraw dividends and take regular cash withdrawals from your income account at the same time. For more details please refer to our Client Handbook. How much do you charge? Full details of the charges we will apply to your account can be found in our Table of Charges document. This is available on our website or by calling our Client Services Team. We regularly review our charges and may alter them to reflect changes in our costs. What about tax? Tax on your Stocks & Shares ISA There will be no additional tax to pay on dividends you receive in a Stocks & Shares ISA UK dividends pay 10% tax at source No capital gains tax liability on gains within a Stocks & Shares ISA You do not have to inform HMRC about dividends and capital gains from your ISA Current tax laws and HMRC rules are subject to change in the future and may reduce the tax benefit of your Stocks & Shares ISA. What happens if I die? If you die, the tax benefits which apply to your ISA will stop. There will be no tax to pay up until the date of your dearth but tax on everything earned after your death until your ISA is closed will have to be paid by your legal personal representatives. Can I transfer a Stocks & Shares ISA I have with another manager to you? Yes. You should complete and sign a Stock & Shares ISA Transfer In Request Form which is available online or by calling our Client Services Team. We will then arrange the transfer with your current ISA manager. You can transfer a Stocks & Shares ISA in full or part. You should bear in mind that your current ISA manager may charge you to transfer your ISA and you should assess any charges you will incur before instructing the transfer. You must tell the ISA manager you are transferring to us. Can I transfer my Stocks and Shares ISA from you to another manager? Yes. You should contact your new ISA manager who will arrange the transfer for you and let us know. Some ISA managers may insist that you liquidate all your investments and transfer to them in cash. You can transfer your Stocks & Shares ISA in full or part. You should bear in mind that we will charge you to transfer your ISA to another provider and you should consider any charges you will incur before instructing the transfer. You cannot transfer your Stock & Shares ISA into a Cash ISA. What information will I receive from you? Once you have applied for a Stocks & Shares ISA and it has been processed and accepted you will receive a Welcome Pack which will include the following information: a letter acknowledging and accepting your application the Alliance Trust Savings Client Handbook our Terms and Conditions our Order Handling Policy our Conflicts of Interest Policy a Cancellation Notice form You will also receive separately a Personal ID and password, which together will allow you access to our online and telephone services. In the event that there are any changes to the information we have provided, we will notify you. We also will send you six-monthly valuations and transaction statements, and you can check the value of your ISA at any time if you use our secure online services. How do I contact you? If you require further information or an up to date valuation, on your Stocks & Shares ISA, please contact us. Calls may be recorded for training and security purposes. Tel: 01382 573737 Email: contact@alliancetrust.co.uk 5
OTHER INFORMATION The Law In the unlikely event of a legal dispute, the law of England will prevail in all cases. Language Our documents and Terms and Conditions are written in English. All our communications with you will be in English. All communications with us must be in English. How are complaints dealt with? In respect of deposits, an eligible depositor is entitled to claim up to 85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be 85,000 each (making a total of 170,000). The 85,000 limit relates to the combined amount in all the eligible depositor s accounts with the bank, including their share of any joint account, and not to each separate account. For further information about the scheme (including the amounts covered and eligibility to claim) please call us on 01382 573737, refer to the FSCS website www.fscs.org.uk or call 0800 678 1100. We aim to provide you with excellent service but in the event of a complaint about your Stocks & Shares ISA you can contact us by writing, email, telephone, fax or in person. The contact details for complaints are: Service Quality Team Tel: 01382 573737 Fax: 01382 321183 Email: contact@alliancetrust.co.uk Any complaint can be made by you or on your behalf by another person provided that person has your written authority to do so. A leaflet giving more information on how we handle complaints is available from www.alliancetrustsavings.co.uk or by calling our Client Services team. If you are not satisfied with the way that we respond to your complaint and would like to proceed further you can contact the Financial Ombudsman Service by writing to: The Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR Tel: 0800 0 234 567 Financial Services Compensation Scheme (FSCS) We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors including most individuals and small businesses are covered by the scheme. In respect of investments held in Accounts, you may be eligible for compensation under the FSCS, up to 50,000. 6
TERMS AND CONDITIONS This Key Features document should be read in conjunction with our Terms and Conditions. The Terms and Conditions and governing document will fully explain and govern the administration of your ISA Account. We have the right to change the Terms and Conditions and will give you notice of any material changes. Where can I get more information about my Stocks & Shares ISA? Further information about your Stocks & Shares ISA is available on our website at www.alliancetrustsavings.co.uk or by contacting us at: Tel: 01382 573737 Fax: 01382 321183 Email: contact@alliancetrust.co.uk www.alliancetrustsavings.co.uk Please retain this document for reference purposes. It is issued by and is based on our understanding of how the law applies at 1 March 2014. There may be subsequent changes. Contractual terms may have to be changed in response to legislative, regulatory and business conditions. In order to comply with our legal and regulatory obligations, we may be required from time to time to apply additional or alternative conditions in relation to applications, either generally or in respect of particular applicants. 7
CONTACT US Online Manage your accounts online at www.alliancetrustsavings.co.uk Email contact@alliancetrustsavings.co.uk Phone 01382 573737 Our Client Services Team are available Monday to Friday, 8am to 5pm. Calls may recorded for security and training purposes. Post Alliance Trust Savings Alliance Trust Savings,, T +44 (0)1382 321000 F +44 (0)1382 321183 E contact@alliancetrust.co.uk www.alliancetrustsavings.co.uk is a subsidiary of Alliance Trust PLC and is registered in Scotland No. SC 98767, registered office,,, ; is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 116115. Alliance Trust Savings gives no financial or investment advice. ISAK1003-04-14