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Direct Trader Share Dealing Account and Self-Select ISA – Terms and Conditions
Your information
Who we are
We are NatWest Stockbrokers Limited (“NWS”) and if you have a Share Dealing Account or a Monthly Portfolio Builder Account, your Account is with us. NWS is a joint venture between The Royal Bank of Scotland Group plc and The Toronto-Dominion Bank. The plan manager of the Direct Trader Self-Select ISA and the Monthly Portfolio Builder Account ISA is TD Waterhouse Investor Services (Europe) Limited (“TDW”).
For information about The Royal Bank of Scotland group of companies (the “Group”) please visit www.rbs.com and click on “About us”, or for similar enquiries please telephone 0131 556 8555 or Textphone 0845 900 5960.
How your information is used and who it is shared with
Your information comprises all the details we hold about you
and your transactions and includes information obtained from
third parties.
We and TDW may use and share your information with members
of the Group to help us and them:
- assess financial and insurance risks;
- recover debt;
- understand our customers’ requirements;
- develop and test products and services; and
- prevent and detect crime.
NWS has appointed TDW, a subsidiary of The Toronto-Dominion Bank,
to provide the Direct Trader Share Dealing service and the Monthly
Portfolio Builder service. The information you have provided in the
Application Form to open an account will be disclosed to and used by
TDW to carry out your share dealing instructions, but will not be used
by TDW for marketing purposes.
The plan manager of the Direct Trader Self-Select ISA and the Monthly
Portfolio Builder ISA is TDW. The information you have provided in the
Application Form to subscribe to an ISA (or which is provided
by another plan manager where you instruct an ISA to be transferred
to TDW) will also be disclosed to NWS and used to manage and
administer your Plan, but will not be used by TDW for marketing
purposes.
- Neither we nor TDW will disclose your information to anyone
outside the Group except:
- where we/TDW have your permission; or
- where we/TDW are required or permitted to do so by law; or
- to credit reference and fraud prevention agencies and to other
companies that provide a service to us, or to TDW or you; or
- where we/TDW may transfer rights and obligations under this
Agreement.
We or TDW may transfer your information to other countries on the
basis that anyone to whom we pass it provides an adequate level
of protection. However, such information may be accessed by law
enforcement agencies and other authorities to prevent and detect
crime and comply with legal obligations.
From time to time we or TDW may change the way we or TDW use
your information. Where we (or TDW) believe you may not reasonably
expect such a change we shall write to you. If you do not object to the
change within 60 days, you consent to that change.
If you would like a copy of the information we hold about you, please
write to The Royal Bank of Scotland Share Dealing, PO Box 549,
Leeds, LS1 4ZY . A fee may be payable.
Credit reference agencies
We and TDW may make periodic searches at credit reference
agencies and will provide information to the Group to manage and
take decisions about your account. This may include information
about how you manage your account including your account balance,
credit limit and any arrears. We will also provide this information to
credit reference agencies who may make this information available
to other organisations so that they can take decisions about you,
your associates and members of your household. The information
may also be used for tracing purposes.
Fraud prevention agencies
If false or inaccurate information is provided and fraud is identified
or suspected, details may be passed to fraud prevention agencies.
Law enforcement agencies may access and use this information.
We, TDW and other organisations may also access and use this
information to prevent fraud and money laundering, for example when:
- checking applications for, and managing credit or other facilities
and recovering debt;
- checking insurance proposals and claims;
- checking details of job applicants and employees.
We, TDW and other organisations that may access and use information
recorded by fraud prevention agencies, may do so from other
countries.
We and TDW can provide the names and addresses of the credit
reference and fraud prevention agencies that we and TDW use.
If you would like a copy of your information held by them please call
0870 606 5023. The agencies may charge a fee.
The Services
The telephone and online Share Dealing Service (the “Share Dealing
Service”) and the Monthly Portfolio Builder service referred to in these
terms and conditions (the “Terms and Conditions”) is provided by
NWS (through TDW). The Direct Trader Self-Select ISA Service and
the Monthly Portfolio Builder ISA service referred to in these Terms and
Conditions (the “ISA Service“) is arranged by NWS. The plan manager
of the Direct Trader Self- Select ISA and the Monthly Portfolio Builder
ISA is TDW. In these Terms and Conditions the Share Dealing Service,
the Monthly Portfolio Builder Service, the Monthly Portfolio Builder
ISA and the Direct Trader ISA Service are collectively referred to as
the “Services”.
These Terms and Conditions set out the basis on which NWS will
provide or arrange to provide the Services and govern all aspects of
the provision of these Services (and, where relevant, the Nominee
Service (as defined in Clause 1, below)) and are in addition to, and not
in substitution for, all legal rights of NWS, (or TDW, as the case may
be). In these Terms and Conditions, those terms and conditions
applying to the Share Dealing Service are collectively referred to as
the “Share Dealing Service Terms and Conditions”; and those terms
and conditions applying to the ISA Services are collectively referred to
as the “ISA Service Terms and Conditions”. The terms and conditions
applying to the Monthly Portfolio Builder Service are collectively
referred to as the “Portfolio Builder Terms and Conditions”.
Please ensure that you read these Terms and Conditions
carefully and that you also refer to the “important” information
set out on the back of this leaflet.
1. Introduction
Definitions
In these Terms and Conditions:
The Direct Trader Share Dealing Service
2. The Share Dealing Service
- NWS is a member of the LSE and PLUS and will provide share
dealing services under the respective rules of the LSE and PLUS
in addition to the FSA Rules.
- Neither the Share Dealing Service nor any other services are
available to US residents and any communication issued or
materials published regarding the Services do not/does
not constitute an offer or solicitation to undertake investment
business in any jurisdiction other than the UK.
- None of the services or investments referred to in these
Terms and Conditions or on our web site is available to persons
resident in any country where the provision of such services
or investments would be contrary to local law or regulation.
- Unless you deposit funds in our Direct Trader Cash Management
Account, you will (providing this option has been offered by us
and accepted by you in your Application Form) need to have a
Current Account with a UK bank, that accepts Direct Debits and
is held in your name (or you are named as one of the account
holders, together with one or more others), in order to use the
Share Dealing Service.
- We will provide an execution only service which means that we
will not provide any recommendations or any investment advice
to you. Accordingly, when giving orders or instructions to us, you
must rely upon your own judgement. If you are in any doubt as to
the suitability of your entering into this Agreement you should
take independent professional advice.
- If, on your own initiative, you have asked us to provide you
with execution only dealing services in Non-Complex Products,
we are not required to assess the suitability of the instrument
or the service provided or offered to you. As a result, you will
not benefit from the protection of the FSA Rules on assessing
suitability. Accordingly, when giving orders or instructions to
us, you must rely upon your own judgement. You should get
independent advice from an authorised investment advisor if
you are in any doubt.
If we are providing execution only services to you in relation
to Complex Products, we are required to assess whether it is
appropriate for you to deal in Complex Products, by requesting
from you certain information relating to your experience and
knowledge of trading such products that will help us assess
whether you understand the risks associated with dealing
in them.
Usually, we will ask you for this information during the account
opening process but we may need to ask you for additional
information in the future if you decide to deal in a new product
type or sector.
- If you do not provide sufficient information to allow us to carry
out the appropriateness assessment or do not provide any
information at all, we are unlikely to be able to assess whether
you have the necessary knowledge and experience to
understand the risks involved. If you still wish us to proceed on
your behalf, we may do so at our absolute discretion. If we do so,
you should note that we may not be able to determine whether
the dealing in the particular Complex Product is appropriate for
you or in your best interests.
If, on the basis of the information that you have supplied to us in
relation to your knowledge and experience, we consider that
dealing in the particular Complex Product is not appropriate for
you, we will warn you of this. If you still wish us to proceed on
your behalf, we may do so at our absolute discretion. If we do so,
you should note that it may not be appropriate for you and that
you may be exposing yourself to risks that fall outside your
knowledge and experience and/or which you may not have the
knowledge or experience properly to assess and/or control to try
to mitigate their consequences for you.
- Even where we have carried out an appropriateness assessment,
you may, in any event, wish to get independent advice from an
authorised investment advisor if you have any doubts about
dealing in Complex Products.
- We have set out a general description of the nature of and risks
associated with those products in respect of which we offer
services, in the Appendix to these Terms and Conditions.
3. The Nominee Service (Clause 3 only applies if you have opted
to use the Nominee Service or where the Nominee Service
automatically forms part of the Service that you are receiving).
- The Nominee Service is provided subject to the FSA Rules and
the rules of the LSE, which will prevail in the event of any conflict
with these Terms and Conditions.
- If the Nominee Service applies, your investments will be registered
in the name of, or otherwise held to the order of, TD Waterhouse
Nominees (Europe) Limited (the “Nominee”). You will at all times
remain the beneficial owner of any of your investments that are
held by the Nominee. All overseas securities purchased by us on
your behalf must be held in the Nominee Service.
- Any investments purchased by us or by TDW or existing holdings
held by the Nominee on your behalf will be held in accordance
with these Terms and Conditions.
- We may at our discretion refuse to accept or hold any investment
in the Nominee Service.
- Upon request, we will issue a share certificate in your name
where this is possible for any of your investments held by the
Nominee or otherwise purchased by us on your behalf. A charge
will be made for each holding for which we produce a share
certificate, in accordance with our Tariff of Fees and Charges
applicable at the time.
- A charge will be made, in accordance with our Tariff of Fees and
Charges applicable at the time, for any investments transferred
from the Nominee or sold through another institution.
- Non-UK securities held on your behalf may be held overseas.
Where this is necessary, we will take into account the law and
market practice in the relevant overseas jurisdiction.
viii. Due to the nature of applicable laws or market practices in
certain overseas jurisdictions, we may decide that it is in your
best interests for your investments to be registered or recorded
in our name or in the name of the person who is a custodian
for the purposes of FSA Rules. In such circumstances:
- the investments will be registered or recorded in
the name of the firm or custodian as the case
may be;
- the investments may not be segregated and separately
identifiable from the designated investments of the person
in whose name they are registered; and
- as a consequence, in the event of a failure, the investments
may not be as well protected from claims made on behalf
of our general creditors.
- There may be different settlement, legal or regulatory
requirements applicable in overseas jurisdictions from those
applying in the UK and different practices for the separate
identification of your investments.
In the event of insolvency or any other similar proceedings in
relation to assets held overseas by a custodian, your assets may
be treated differently from the treatment that would apply if the
assets were held by a custodian in the UK.
- Any investments held on your behalf may be pooled with the
investments of other customers. This means that your entitlement
may not be individually identifiable on the relevant company
register, by separate certificates or electronic records (other than
ours, where they will be identifiable) and, in the event of an
un-reconciled shortfall caused by the default of a custodian,
you may share proportionately in that shortfall.
- In the event of the default of the Nominee or any other connected
company, we accept responsibility for any losses arising from
fraud, wilful default or negligence by the Nominee or its
employees and agents or the employees and agents of any other
connected company. We do not accept responsibility for any
losses arising from the insolvency, default of or any act or
omission of any other properly appointed custodian.
- We will use reasonable endeavours to notify you of any rights
issues, calls, conversion, subscription or redemption rights
and take-overs and other offers arising from capital
reorganisations (“corporate events“) which affect any investment
held in the Nominee Service on your behalf. Where your
instructions in respect of such corporate event are received
within agreed timescales, we will use reasonable endeavours
to exercise any rights arising on your behalf. However, we will
not be responsible for taking action if your instructions are
received late or not received at all.
- We will have no responsibility for notifying you of corporate
events until the relevant investments are registered in the name
of the Nominee.
- Where a corporate event results in a fractional entitlement to
part of a share, then we will sell such fractional shares and
credit the funds either to your bank account or Direct Trader
Cash Management Account (as appropriate), provided such
cash value is £5.00 or more. Where such cash value is less
than £5.00, such sum shall be retained for the account of NWS.
- Where corporate events, such as partial redemptions, affect
some but not all Nominee investments held in a pooled account,
we will allocate any resulting investments in a fair and equitable
manner.
- We will not notify you of, nor arrange for the exercise of, any
voting rights attaching to your investments, whether exercisable
at an AGM or otherwise. We will not notify you of any AGMs or
EGMs applicable to your investments.
- We will not be obliged to arrange for you to attend shareholder or
unit holder meetings and vote in person or to direct how the
Nominee should vote on your behalf unless you give us your
written instructions in sufficient time, whereupon we shall use
reasonable endeavours to make appropriate arrangements
subject to such undertakings and in the manner and within
timescales we may impose.
- Any dividends or interest payments received on your investments
held by us will be paid to you in accordance with your written
instructions to us.
- A consolidated tax voucher relating to your investments,
acceptable for H.M. Revenue and Customs purposes, will be
sent to you shortly after the end of each financial year.
- We will only accept instructions concerning the investments held
in the Nominee Service if these are received from you or from
any person who you have advised us in writing is authorised
to give instructions on your behalf. Instructions to transfer
investments out of the Nominee Service must be given in writing.
- We will give all instructions to the Nominee on your behalf.
The Nominee will not accept instructions from any other person.
- Cash held on your behalf will be placed in bank accounts
operated by us. Interest will be paid on cash held. Details of
prevailing rates are shown in our Tariff of Fees and Charges as
applicable at the time.
- At least twice a year, we will send you a statement listing your
investments held by the Nominee. We will value your investments
shown on this statement in a way that we consider fairly reflects
the current market price of each such investment.
- Statements are based on trade date information for assets held
in safe custody on your behalf and settlement date in relation
to cash balances.
- We may hold some or all Nominee investments with a connected
company.
- A quarterly administration charge may be levied on all Nominee
Accounts, as set out in Clause 15 (Fees and Charges).
4. Using the Share Dealing Service
Verifying your identity
5. Best execution
- In accordance with the FSA Rules, we have implemented an
order execution policy which sets out the reasonable steps
that we will take in order to obtain the best possible result for
our clients (the “Execution Policy”). Information on our Execution
Policy is summarised below. You agree that the terms of the
Execution Policy will apply where we are executing orders
on your behalf.
- When executing orders on your behalf, we will take all
reasonable steps to obtain the best possible result for you by
taking into account a number of factors including price, costs,
speed, likelihood of execution and settlement size, nature and
any other consideration which we believe is relevant. We will
ordinarily give the price and the costs relating to the execution
of your order the highest priority in obtaining the best result for
you, although there may be circumstances where we reasonably
determine that another factor is more important.
- An “Execution Venue” means a Regulated Market, a Multilateral
Trading Facility, a firm that executes orders off its own book,
a market maker, or other liquidity provider (or any entity
outside the European Economic Area which performs a
similar function to any of these). A list of the Execution
Venues that we use can be found on our website at
www.rbs-sharedealing.co.uk/mifidbestexecutionpolicy. This list
is not exhaustive but it comprises those Execution Venues on
which we place significant reliance. We reserve the right to use
another Execution Venue where we consider that it is
appropriate, in the light of our Execution Policy and we may from
time to time add or remove an Execution Venue from this list.
We will regularly assess the Execution Venues available in
respect of any products that we trade, to identify those that will
enable us, on a consistent basis, to obtain the best possible
result when executing orders. We will update the list of Execution
Venues, if this is necessary, after such review.
Other than by updating the website, we will not notify you of any
changes to the Execution Venues and you are advised to consult
this list from time to time. Alternatively, you can ask a customer
services representative.
- When you provide us with a specific instruction as to the
execution of an order that cannot be carried out in accordance
with our Execution Policy, our Execution Policy may not apply
and we will execute your order in accordance with your specific
instructions.
- From time to time, we may execute your order outside a
Regulated Market or a Multilateral Trading Facility. Such
transactions may accordingly not be subject to the same investor
protection standards. However, before we execute your order
outside a Regulated Market or a Multilateral Trading Facility,
we are required to obtain your express consent and so will
always ask you before we execute your orders in this way.
- We may transmit an order that we receive from you
to various third parties for execution. A list of these
third parties can be found on our website at
www.rbs-sharedealing.co.uk/mifidbestexecutionthirdpartieslist
In doing so, we must act in your best interests and comply
with sub-clause (ii) above.
- We will monitor compliance with our Execution Policy and we will
review the effectiveness of our Execution Policy at least annually.
Whenever a material change occurs that affects our ability to
obtain the best possible result for our clients, we will amend this
Policy as appropriate. We will let you know if we make any
material changes to the Execution Policy by publishing details
on our website.
- You may request in writing that we demonstrate to you that your
orders have been executed in accordance with our Execution
Policy. We will use reasonable endeavours to deal with such a
request within 20 Business Days. However, if we are unable to
satisfy your request within such a timescale, we will write to you
informing you of the reason for the delay and confirming when
you can expect to receive a response.
6. Purchase of investments
- All purchases involving share certificates will be registered in
accordance with the details supplied on your Application Form.
- We will collect the funds to pay for any purchase of investments
either from the bank account specified in your Application Form
(where appropriate) or from your Direct Trader Cash
Management Account, on the appropriate settlement date.
- Dividends and other payments due to you from the seller of any
investments will be claimed by us on your behalf and forwarded
to you on receipt, together with the relevant tax voucher, if any,
to a destination agreed in advance with you.
- Where investments are purchased cum rights, we will notify you
of details of these rights. Unless instructions are received in
sufficient time to the contrary, together with all necessary funds
being available, such rights will be allowed to lapse. If we are
able to do so, we will claim on your behalf any proceeds from
the sale of such rights made by the issuing company from the
seller of the investments.
- We will charge you an Administration Fee where a Direct Debit
or cheque on your account is returned unpaid by your bank.
This Fee will be collected from either your bank account or Direct
Trader Cash Management Account, as appropriate. The Fee
to be collected will be at the prevailing rates shown in our Tariff
of Fees and Charges.
7. Sale of investments
- We may, at our discretion, request the receipt of necessary
documents, in the form of allotment letters and renounceable
certificates duly signed, to effect settlement of a transaction,
before agreeing to deal in investments which are normally traded
for cash settlement.
- We will pass on to you any costs incurred as a result of late
delivery to us of such documents and you will be required to pay
such costs. We will credit the full proceeds from the sale of any
investment to either your specified bank account (or an account
agreed in advance with us) (where this option has been offered
by us and accepted by you) or your Direct Trader Cash
Management Account (as appropriate) on the appropriate
settlement date. Payment will only be made on the settlement
date where you have delivered to us original stock transfer forms
and covering share certificates and/or other documents of title in
good order by close of business on the business day falling
three business days before the settlement date. If we do not
receive these documents within the timeframes specified, we will
credit the appropriate account three business days following
receipt of valid documents.
- If we are crediting the proceeds of any sale of investments to a
bank account, the account must be in your name or you must be
named as one of the account holders, together with one or
more others. We cannot make payments to a third party account.
- We will not knowingly enter into transactions on your behalf that
will, or may, result in your having a short position. A short position
arises when a person has contracted to sell investments that
he/she does not currently own.
- You are not permitted to short sell. Investments held for you in
custody will be used to settle your sale transactions. Otherwise,
in respect of all sale transactions you:
- warrant to us that at the time of placing an order to sell,
you own the relevant investments; and
- will immediately arrange for delivery to us of the certificates
and transfer forms for such investments at the latest by the
contracted settlement date
- If, as a result of a short sale or as a result of your failing to deliver
valid documents to us, either within the timeframes specified or
at all, we are obliged to purchase equivalent stock in the market
to honour your obligations, you accept that any costs incurred
by us in our doing so will be passed on to you and that you will
be required to pay such costs.
- Dividends and other payments due to the subsequent purchaser
of your investments will be collected from either your specified
bank/building society account (where this option has been
offered by us and accepted by you) or your Direct Trader Cash
Management Account, as appropriate.
- Any share certificates and other documents of title will be
forwarded to the correspondence address given on your
Application Form, unless otherwise agreed in writing with us.
- We reserve the right to close out contracts or positions that we
may have for you which are not duly fulfilled. Any such right will
be exercisable without further notice to you and in the manner,
and subject to such conditions, as we consider appropriate.
- All investments which we are instructed to sell must either
be your legal property, properly registered in accordance with
the registration particulars entered on your Application Form,
or alternatively you must be duly authorised to sell these
investments. All such investments must be free from any pledge,
lien, charge or encumbrance. In giving us an instruction to sell
an investment you are warranting to us that you are not in breach
of this Clause 7 in respect of the investment which is the subject
of such instruction.
8. Provision of information
- Any news, prices and other information which we may provide to
you (“Information“), is provided solely to enable you to make
your own investment decisions and does not constitute personal
investment recommendations or advice.
- Neither we nor any of our agents or licensors make any
representation as to the completeness, accuracy or timeliness
of such Information nor do we or they accept any liability for any
losses, costs, liabilities or expenses which may arise directly
or indirectly from your use of, or reliance on, the Information.
Such Information is not an offer or solicitation by us or any
connected company to buy, sell or otherwise deal in any
particular investment.
- All Information is and remains our property or the property of our
third party licensors.
- UK real-time Pricing Information is provided to you under license
from the LSE. You may not redistribute that data without the prior
written consent of the LSE. All intellectual property rights in such
data provided by the LSE shall at all times remain the property
of the LSE (or as otherwise notified by the LSE from time to time).
The LSE (or such other party as is notified by the LSE from time
to time) must be identified as the source of the data where
reproduced in accordance with the licence conditions which we
notify to you prior to your accessing such data for the first time.
- We provide all International real-time Pricing Information under
licence from the relevant Exchange providing the data. Your use
of such information is subject to the terms and conditions of each
exchange that will be notified to you prior to your accessing such
data for the first time.
9. Conflicts of interests
Managing conflicts of interest
- When we execute a transaction on your behalf, we or an
associate (including a connected company) may have an
interest, relationship or arrangement that is material to all or
any part of the information or Services being provided to you.
- We take the identification and management of conflicts of interest
seriously. We have implemented a conflicts of interest policy that
identifies those circumstances that constitute, or may give rise to
conflicts of interest which pose a material risk of damage to the
interests of one or more of our clients. This policy also addresses
the effective organisational and administrative arrangements that
we maintain and operate to manage these conflicts, such as
departmental procedures and management arrangements,
periodic testing of such measures and staff training. If, at any
time, you would like to receive further details of our conflicts
of interest policy, please contact us with this request, in writing.
- If, in respect of a specific conflict of interest which arises, we
consider that the arrangements are not sufficient to enable us
to ensure, with reasonable confidence, that the risk of damage
to your interests and the interests of our other clients will be
prevented, we will decline to act or we will inform you of the
nature and type of conflict of interest before we undertake any
business on your behalf that may be affected by this conflict.
You will then be able to decide whether you agree to us acting
for you in these circumstances. If you object to our acting for
you, you should notify our Compliance Officer, in writing.
- Examples of conflicts of interest which may arise when providing
services to you include, for example and without limitation,
the following:
- acting as agent for an associate or another customer
or investor and also acting as agent for you in the same
transaction, and receiving and retaining commission
or other charges from both parties, and the price of the
transaction being different from the bid or, as the case may
be, offer price;
- buying investments where we are, or an associate
is, involved in a new issue, offer for sale, rights
issue, take-over or similar transaction concerning
the investment;
- executing a transaction for or with you in circumstances
where we have knowledge of other actual or potential
transactions in the relevant investment;
- holding a position in, or trading, dealing or
market-making in,
- investments purchased or sold by you;
- sponsoring, underwriting, sub-underwriting, placing,
purchasing, arranging, acting as stabilising manager for,
or otherwise participating in, the issue of investments
purchased or sold by you;
- acting as adviser or banker to, or having any other
business relationship with, or interest in, the issuer
(or any of its associates or advisers) of any investments
purchased or sold by you or advising or acting as banker
to any person in connection with a merger, acquisition
or take-over by or for any such issuer (or associate); or
- being the issuer of any investments purchased or sold by
you or being (or being adviser or banker to, or having any
other business relationship with) the trustee, custodian,
operator or manager of, or investment adviser to, any form
of collective investment scheme in which interests are
purchased or sold by you.
- The relationship between you and us is as described in these
Terms and Conditions. Neither that relationship, nor the Services,
nor any other matter will give rise to any fiduciary, equitable
or contractual duties on our part, or that of any connected
company, which would prevent or hinder us or them from doing
business with or for you, other customers or other persons or
for our or their own account.
Treatment of fees, commissions or other non-monetary
benefits
- We are entitled to pay or accept a fee, commission or other
non-monetary benefit paid by, or provided to you or on your
behalf or paid in connection with the provision of the Services.
We are also entitled to retain any payment, remuneration or fees
which enables us to provide or which are necessary for the
provision of the Services, such as, without limitation, settlement
and exchange fees, regulatory levies and legal fees.
- We may receive periodic payments of up to 2.5% of the value
of funds purchased, and still held at the relevant date from unit
trust and other collective investment scheme managers. This is
standard industry practice. Any amounts received are kept by
us and applied against general business expenses.
- If you would like to receive further information in relation to the
receipt and provision of fees, commissions or other non-monetary
benefits, this can be provided on your written request.
10. Aggregation of orders
We may, without prior reference to you, combine your orders with
those of other clients and/or connected companies and/or may
average any transaction effected for others within a 24-hour period,
so that each transaction is assigned an average price. If aggregation
is with orders of other clients, on some occasions you may obtain a
more favourable price, and on other occasions you may obtain a less
favourable price than if your transaction had been effected separately.
Any aggregation of orders will only be undertaken in compliance with
the FSA Rules.
11. Charge, lien and set-off
- All of your investments and money in any accounts held by you
relating to the Services (“Accounts”) are subject to a general
charge (security interest) in our favour to cover outstanding
amounts due from you to us for provision of the Services.
- If you default in paying any amount due, interest will be payable
by you on demand at the rate set out from time to time in our
Tariff of Fees and Charges together with all associated
administrative and recovery costs including legal costs. If we
have to pay or repay any money from any Account or deliver
or redeliver any investment it will be conditional upon there
being no outstanding liabilities (whether actual or contingent)
due from you.
- We shall also have a lien, in respect of all cash and investments
we or the Nominee may hold, as security for the satisfaction of
all of your liabilities outstanding from time to time and we have
the right to realise the same on such terms (including as to price)
as we consider appropriate and to apply and set off the
proceeds of such realisation as set out below.
- We may, without notice to you combine, consolidate or merge
all or any of your Accounts, balances and other amounts with,
or liabilities to us and may set-off any sum standing to the credit
of any such Accounts, balances or other amounts in or towards
the satisfaction of any sum or liability you owe to us. To effect
set-off we may transfer monies and/or assets between any of
your Accounts.
- We may convert any relevant foreign currencies in any of your
Accounts in order to exercise our rights under this Clause.
- As continuing security for your discharge of all liabilities, you
agree to charge with full title guarantee (or, if you are a trustee,
with limited title guarantee) free of any adverse interest
whatsoever to and for the benefit of us:
- by way of first fixed legal charge, each Account with us
and all assets and cash from time to time credited to that
Account and, by way of separate first fixed legal charge,
the benefit of any Account and any rights against any
banker, custodian or other person on whose books that
Account exists, to which any such assets and cash are
from time to time credited;
- by way of first fixed legal charge, all assets in respect of
which title has been transferred by way of security to us
or to our order;
- charge all other assets which (or the certificates or
documents of title to which) have been deposited in any
Account or are otherwise held by us;
- by way of first fixed legal charge, all sums of money held
by us for you, the benefit of all Accounts in which any such
money may from time to time be held and all your right, title
and interest under any trust (whether arising by agreement
or otherwise) relating to such money or to such Accounts.
The benefit of such charge is held by us for our benefit
and as trustee for the benefit of all of our affiliates, agents
and licensors from time to time.
The security created under these Terms and Conditions will
remain in full force and effect by way of continuing security and
will not be affected in any way by any settlement of account or
other matter or thing and will be in addition to any other security,
guarantee or indemnity now or at anytime held by us or any other
person in respect of your liabilities.
- You grant to us a power of attorney to execute and sign all such
transfers, assignments, further assurances or other documents
and do all such other acts and things as may reasonably be
required to vest or to realise the above security or any of it in
us or to our order or to a purchaser or transferee or to perfect or
preserve our rights and interests in respect of the security or for
the exercise by us of all or any of the powers, authorities and
discretions conferred on us by these Terms and Conditions.
- Unless the context requires otherwise, references in this
clause to “us” include references to any person holding any
of the security or in whose name any of it may be registered.
Sections 93 (restriction of right of consolidation) and 103
(restriction of right of sale) of the Law of Property Act 1925
will not apply to these Terms and Conditions.
- Cash we hold for you will be used to settle your purchase
transactions. Otherwise, you must provide us with sufficient
funds at the latest by the contracted settlement date.
- If you fail to make any payment or to deliver any assets due to
us,we may enforce the security, without prior notice or demand
to you. In enforcing the security, we may sell, pledge, deposit or
otherwise deal with all or any of the security, free of any interest
of yours and as we in our absolute discretion think fit (without
being responsible to you for any loss or diminution in price).
The net proceeds of any such dealings will be applied towards
the discharge of your liabilities. You will be entitled to any
balance remaining after discharge of all liabilities. In the event
of a shortfall, you remain liable for any such shortfall and will
immediately pay to us the balance remaining due.
- Nothing in this Clause 11 shall create a security over the
investments and cash in an Account which is an ISA except to
the extent permitted by the Regulations (as defined in Clause
23).
12. Rights issues, take-overs
- We (or any connected company) will not be responsible for
taking up any rights, exercising any conversion or subscription
rights, dealing with take-over or other offers or exercising voting
rights, for investments which are in the course of settlement
or which we hold on your behalf, unless we receive specific
instructions from you in sufficient time and all necessary
funds are received by us at the relevant time.
- We may enter into transactions on your behalf in investments
with which we, or a connected company, may have been
involved in connection with a new issue, rights issue, take-over
or similar transaction, during the twelve months preceding
the date of any transaction relating to that, or any related,
investment.
13. Lending and borrowing
We will not lend title documents belonging to you and held by us,
or on our behalf, to any third party nor shall we borrow money on
your behalf against the security of those documents unless you have
expressly agreed this with us.
14. Indemnity
We will not be liable for any loss, costs, expenses or damages suffered
or incurred by you, unless it arises from our negligence, wilful default
or fraud. You will indemnify us (and keep us indemnified) on first
demand against:
- any loss, liability, expense or damages suffered or
incurred by us in connection with any service performed,
or action permitted, on your behalf, under these Terms
and Conditions; and
- any loss, damages, liability or expense suffered or incurred
by us in connection with any failure by you to comply
with your obligations under this Agreement, including your
obligations relating to transactions entered into as
contemplated hereby (except where this is due to our
negligence, wilful default or fraud).
This will not, however, exclude or restrict any obligation which
we have to you under the FSA Rules, or any liability which we
may incur under those rules or under the Financial Services and
Markets Act 2000, and which may arise as a result of a breach
of any such obligation. If you need further information or advice
about this aspect, you may wish to contact your local Citizens
Advice Bureau or seek professional advice.
15. Fees and Charges
- Our Fees and Charges will be in accordance with our published
Tariff of Fees and Charges at the time the charge is incurred.
A copy of our current Tariff of Fees and Charges accompanies
these Terms and Conditions. Further copies are available on
request at any time by calling 0870 606 5023 or can be viewed
on our web site www.rbs-sharedealing.co.uk. You will be notified
in writing of any new fees or charges to be imposed or any
increases to existing fees or charges set out in our Tariff of Fees
and Charges, not less than 30 days before such a change
takes place.
You will also pay to us any stamp and other duties, taxes of
whatever nature, impositions and fiscal charges, fees and all
other costs and expenses incurred by us (including any Value
Added Tax (VAT)) in performing any part of the Share Dealing
Service on your behalf. You should be aware that you may be
liable to pay other taxes and costs which are not paid through
NWS or imposed by it.
Any amounts you are due to pay to us, or our agents, may be
deducted from any funds held on your behalf or, at our
discretion, shall be payable as stated in the relevant contract
note or advice, subject to and in accordance with the FSA
Client Money Rules.
We may share our fees and charges with any connected
company. If we share any fees or charges with a third party
who is not a connected company, this will be indicated on
the relevant contract note or advice.
- In the case of limit orders, if your order is publicly displayed on
the order book in accordance with Clause 4.xxix, it may be
subject to multiple fills. Each fill may be treated as a separate
transaction and commission may be charged on each
transaction or fill in accordance with our Tariff of Fees and
Charges. If this is applicable, you will be informed about this
before your limit order is accepted.
- We may levy a quarterly administration charge for CREST
Personal Membership Accounts at the prevailing rates specified
in our published Tariff of Fees and Charges, as amended from
time to time (plus VAT, where applicable). The charge will be
made in respect of the immediately preceding quarter and will
be levied during the last week before each quarter end (namely,
the last week before each of 31 March, 30 June, 30 September
and 31 December) or as soon as practicable after that week.
This charge will be applied to all CREST Personal Membership
Accounts held on the last week before each quarter end, except
where there have been at least 2 trades on the account in the
preceding quarter, or where the value held in the account is
worth £5,000 or more (in cash and/or stock) on the last week
before each of 31 March, 30 June, 30 September and
31 December, in which case no “CREST” administration charge
will be levied for that quarter.
- We may levy a quarterly administration charge on all Nominee
Accounts at the prevailing rates specified in our published Tariff
of Fees and Charges, as amended from time to time (plus VAT,
where applicable). The charge will be made in respect of the
immediately preceding quarter and will be levied during the last
week before each quarter end (namely, the last week before
each of 31 March, 30 June, 30 September and 31 December)
or as soon as practicable after that week.
This charge will be applied to all Nominee Accounts held on the
last weekend before each quarter end, except where there has
been at least 1 trade on the account in the preceding quarter,
or where the value held in the account is worth £2,000 or more
(in cash and/or stock) on the last week before each of 31 March,
30 June, 30 September and 31 December, in which case no
“Nominee” administration charge will be levied for that quarter.
16. Money and interest
17. Communications
- Any dealing instructions must be given either by telephone
or online. Apart from instructions to buy or sell investments
using the Internet, all other instructions must be given either
by telephone or in writing.
- We may, where you have opted to receive it, communicate
with you via email or other electronic media in relation to matters
arising under this Agreement.
- Telephone conversations may be recorded in order to resolve
problems that may arise through misunderstandings or human
error. Strict controls and security will be maintained over access
to recorded tapes at all times. They will be played back only under
appropriate supervision. We will charge a fee where you request a copy
of the transcript of any telephone conversations you have with us.
18. Applicable laws and regulations
- We will not be required to take any action which would, in our
opinion, breach any applicable laws or regulations (including the
rules, regulations or usage of any stock or investment exchange).
We may take such actions as we consider necessary to comply
with such laws and regulations.
- Neither we nor any connected company will disclose to you the
nature or extent of any interest we have in any investment, unless
obliged to do so by any applicable law or regulation. Nor will we,
nor any connected company, be obliged to:
- disclose to you information if this would, or might be,
a breach of any duty or confidence to any other
person; nor
- in dealing for you, take into consideration information
which comes to the notice of an employee, officer
or agent of ours or any connected company, but does
not come to the notice of the individual dealing with
or for you.
- Under the Take-Over Code, you will, in certain circumstances,
be required to inform the LSE if you buy or sell shares in any
company involved in a take-over.
- You will need to comply with any relevant notification
requirements set out in the Companies legislation.
19. Miscellaneous
- Where two or more people are contracted with us under a joint
arrangement, the liability of each of you under the Agreement
shall be joint and several and every agreement of and
undertaking given by such persons will be construed
accordingly. Upon the death of any of you, we will be entitled
to treat the survivor(s) as the only person(s) interested in any
investments or monies that are subject to the Agreement.
We may act in accordance with the authority contained herein
or in any other written communication duly signed by you
and verified as regards requests, instructions, delivery
of documents and/or payment of money.
- We may appoint agents to act on our or your behalf in carrying
out any of the arrangements contemplated hereby, and on such
terms as we see fit.
- All money and investments that are subject to the Agreement are,
and will remain, beneficially owned by you.
- In the event of your death, these arrangements cannot be
terminated until we receive written notice from your duly
authorised representative.
- Investment business undertaken by us under these Terms and
Conditions is covered under the terms of the Financial Services
Compensation Scheme. This provides compensation to eligible
investors for a loss of up to £48,000 in the event of our being
unable to meet our liabilities to you. It will pay 100% of the first
£30,000 and 90% of the next £20,000, so the most the scheme
can pay out is £48,000. At your request we can provide you with
information relating to the conditions governing compensation
and the formalities that must be completed in order to obtain
compensation. Further information about the scheme can also
be obtained from the FSA or from the Financial Services
Compensation Scheme.
- If a debt becomes due to us as a result of your failure to settle
a transaction in accordance with these Terms and Conditions,
we may employ agents to recover any such outstanding debts.
You will be liable to us for any costs we incur in the recovery of
these debts.
- Details of this Agreement, including debts unpaid under this
Agreement, may be registered with credit reference agencies.
This may affect your ability to obtain credit in the future.
- Each of the provisions of these Terms and Conditions shall be
severable and distinct from one another. If one or more of such
provisions is invalid or unenforceable, the remaining provisions
shall continue in force and shall not be affected in any way.
- If you require any further information about this Agreement,
please contact us.
- These Terms and Conditions shall in all respects be governed
by English law. Any disputes arising under these Terms and
Conditions shall be referred for resolution to the English courts,
which shall have exclusive jurisdiction to hear such disputes.
- These Terms and Conditions are provided to you in the English
language. Any other documents relating to the Agreement will
also be provided to you, in English. Where we have to
communicate with you for the purposes of the Agreement, we
shall do so in English and you should also communicate with
us in English.
Variation of Terms and Conditions
- We will give you notice of any changes made to these Terms
and Conditions and will give that notice by any one of the
following methods:
- writing to you;
- e-mailing you;
- posting a message on our website; or
- posting a message within the secure area of your
on-line account;
These Terms and Conditions may be varied from time to time
in the event of legal or regulatory changes, changes in market
practice or if a decision is made to change, for operational
reasons, any aspect of the service or the manner in which its
provided. Usually at least 10 working days notice (or such longer
period of notice as is specified here) will be provided, although
changes made to reflect a change of law or regulation may,
if necessary take effect immediately.
- Where any tax provisions or a particular tax treatment is
mentioned in these Terms and Conditions, you should be aware
that the tax treatment depends on your individual circumstances
and may be subject to change in the future.
20. Termination
Either party is entitled to terminate the Agreement, without penalty,
with immediate effect, by giving the other party written notice to this
effect. Where two or more people are contracted with us under a joint
agreement a valid notice of termination given by one person will
terminate the Agreement as regards all persons. This will not affect
any action already taken by us, in accordance with these Terms
and Conditions, prior to termination, or any legal rights or obligations
that may have already accrued or been initiated or arisen under
the Agreement. In addition, we shall be entitled to receive or be
reimbursed for all costs, charges and expenses accrued or incurred
under the Agreement:
- up to and including the date of termination;
- subsequently incurred on orders or transactions
outstanding on that date; and
- incurred as a result of termination.
We shall also be entitled to promptly receive or be reimbursed for
any other sums due to us under the Agreement.
21. Complaints
We have a written complaints procedure that complies with the
requirements of the FSAs Rules for the handling of client complaints,
a copy of which is available on request. If you have a complaint,
you should write to us at Customer Concerns, PO Box 549, Leeds,
LS1 4WN. In the event of a dispute remaining unresolved after
exhausting these procedures, or if we do not provide you with our final
response within 8 weeks of receiving your complaint, you may refer
your complaint to the Financial Ombudsman Service which is at
South Quay Plaza, 183 Marsh Wall, London, E14 9SR.
Direct Trader Self-Select ISAs
22. The scope of the service we provide
Clauses 22 to 33 (both inclusive) of these ISA Services Terms and
Conditions apply to the Direct Trader Self-Select ISA which is provided
by TD Waterhouse Investor Services (Europe) Limited (“TDW”, “Plan
Manager” or “we“, “our“ or “us“). It will be referred to in these ISA
Services Terms and Conditions as your “Plan“. The cash and
investments in your Plan are called your “Portfolio“.
These ISA Services Terms and Conditions should be read in
conjunction with the Share Dealing Service Terms and Conditions and
with your Direct Trader ISA application form. The relevant provisions of
the Share Dealing Service Terms and Conditions (including Clauses 1,
2, 3, 4, 5, 8, 9, 10, 11,14, 16, 17, 18, 19 and 21), shall form part of this
Agreement as though set out in full in these ISA Services Terms and
Conditions (with these provisions being taken as applying and referring
to TDW instead of NWS and these provisions being adapted if and as
necessary to apply to the ISA Services) and insofar as they do not
conflict with any provision of the ISA Services Terms and Conditions. In
the event of any conflict between the ISA Services Terms and
Conditions and the relevant provisions of the Share Dealing Service
Terms and Conditions the terms of the ISA Services Terms and
Conditions shall prevail.
23. How we will run your Plan
- When we accept your application, or if we have already
accepted your application, we will run your Plan in the way we
set out in this Agreement and in accordance with the Individual
Savings Account Regulations 1998 as amended (“the ISA
regulations or “the Regulations”).
- If you are employed by a business engaged in regulated
investment activities, as defined in the Financial Services and
Markets Act 2000, you must get any necessary permission for us
to run your Plan. Where this applies to you, we will run your Plan
on the basis that you have received this permission, and
submitting an Application Form to us will constitute a warranty by
you to us that you have received such permission, and that such
permission has not been revoked.
- If you transfer your ISA to us and your previous ISA Manager has
held your ISA as separate plans for each subscription year, we
may arrange to merge them into one ISA, unless you request
otherwise.
- Subscriptions can only be made to an ISA for the current tax
year (or in future tax years) in accordance with the annual
subscription allowances applying for these tax years (see current
brochure for details). (For the avoidance of doubt, the annual
subscription allowance isn’t affected by transfers made from a
Cash ISA of savings made in previous tax years, to a Stocks and
Shares ISA).
- Money, which we hold on your behalf, will be deposited by us
with TD Waterhouse Bank N.V. which for the purposes of the FSA
Client Money Rules is an approved bank. We will deal with your
money in accordance with the FSA Client Money Rules, which
require us to hold it in a client bank account, segregating your
funds from ours at a bank approved by the FSA.
24. Applications
- Subscriptions must come from your own resources.
- We will only accept a transfer in of an existing ISA from another
plan manager if it conforms to the Regulations. We shall not be
obliged to accept the transfer of an ISA to us. If you already
have an ISA with us then the transferred- ISA will usually be
amalgamated into your existing ISA.
- If we accept the transfer of an ISA to us, we will contact your
existing plan manager to arrange the transfer of the ISA. We will
contact you to confirm that we are prepared to accept the
transfer, once we have received notification of the investments
contained within the ISA. You are not permitted to trade these
investments until they have been transferred to us.
- The transfer process will ordinarily take no more than 30 days,
but in certain circumstances it may take longer.
- On transferring your ISA you may have to pay the existing plan
manager an exit charge. If investments are to be sold and other
investments purchased you will have to pay commission charges
on these transactions.
- A transfer could lead to a potential loss of income and, if the
market rises whilst the transfer is pending, you could potentially
suffer a loss of capital growth.
- You must supply all the details that we require to comply with the
Regulations. If you fail to supply us with your National Insurance
number within 30 days of the Agreement coming into effect, the
ISA will become void and the investments contained within the
ISA will be re-registered in your name and returned to you.
25. Investments
- Investments must be made in accordance with the Regulations.
We reserve the right to exclude any investments at our discretion.
We will only accept investments quoted on a recognised stock
exchange on which we conduct business and which in our
reasonable opinion fulfill the qualifying criteria set out in the
Regulations (a “Qualifying Investment”). If you purchase an
investment which is not a Qualifying Investment you do so at your
own risk.
- Currently, to be treated as a Qualifying Investment, an investment
must be officially listed on a recognised stock exchange and fall
under one of the eight heads quoted under the Regulations.
These heads include qualifying shares, qualifying securities, units
or shares in qualifying unit trusts, gilts, shares in qualifying open
ended investment companies (OEICs), shares in qualifying
investment trusts, units or shares in relevant UCITS (undertakings
for collective investment in transferable securities) and shares
transferred directly from recognised share save schemes.
- Shares listed on the Alternative Investment Market (AIM), PLUS
unquoted companies, nil paid rights (purchased in the market),
warrants to subscribe for ordinary shares and futures and/or
options are not Qualifying Investments for inclusion in a plan.
- Please note that cash is not a Qualifying Investment, and may
only be held for the purpose of investing in Qualifying
Investments. A plan must not be used for the express purpose of
sheltering interest from tax.
- If an investment in your Plan ceases to be a Qualifying
Investment, we will write to inform you, giving you the option to
either:
- sell the investment and retain the proceeds within your Plan.
This will be done at no charge to you; or
- withdraw the investment from the Plan. The withdrawal charge set
out from time to time in our Tariff of Fees and Charges will apply
to this withdrawal. If we do not receive instructions from you by
the date specified in the letter, we will liquidate (i.e. sell) the
ineligible investment on your behalf.
- Application can be made for public offers of shares in qualifying
companies including investment trusts, using cash held within a
plan. If you are using sale proceeds for such an application, the
funds from the transaction must be available before the deadline
to take up the offer.
- The investments held in your Plan will be registered in the name
of TD Waterhouse Nominees (Europe) Limited. TD Waterhouse
Nominees (Europe) Limited will only accept instructions to hold
or release investments, from us. In the case of bearer eurobonds,
these will be held to the order of TD Waterhouse on behalf of TD
Waterhouse Nominees (Europe) Limited. TD Waterhouse will
accept instructions only from us in respect of these holdings.
Generally, investments will be held in accordance with the
Nominee Service provisions set out in Clause 3 of the Share
Dealing Service Terms and Conditions.
- Payment of any calls or instalments due in respect of your Plan
must be made from cash held or generated within the Plan.
- Where the investments which constitute your Portfolio are subject
to change as a result of a take-over, a demerger, a capital
reorganisation, a rights issue, a bonus issue or other similar
issue, we will advise you of the options available to you. This will
include a default option which we only use where we do not
receive instructions from you in sufficient time.
26. Tax Relief
We will make the necessary claims for tax relief on your behalf in
respect of income from investments where UK tax has been
deducted in accordance with the Regulations but not in respect
of any investments listed on an overseas stock exchange. You
authorise us to provide HM Revenue and Customs with relevant
information about your Plan.
27. Voting Rights Attaching to Investments
- The Regulations do not permit the holding within a plan of
warrants or certain other rights, which may be conferred in
respect of an investment. Where such warrants or other rights
are conferred, we will notify you of this for you to either sell them
(the proceeds, less any associated charges as set out in our
published Tariff of Fees and Charges, (see Clause 3.xii) will be
credited to your Plan), or reregister them into your name.
- If you wish to use funds in a Plan to take up a corporate event
(as defined in Clause 3.xii of the Share Dealing Service Terms
and Conditions), you must ensure that all transactions have fully
settled before the deadline date. If there are insufficient funds in
your Plan, you may take up the corporate event in your own name
only.
28. Fees and Other Charges
We are entitled to levy the following fees and charges plus VAT
where applicable:
- An annual administration charge at the rates applicable from time
to time and set out in our Tariff of Fees and Charges (notified
separately). This charge will be calculated annually in arrears on
or around the last business day in May and charged in full on the
following Business Day (and it will NOT be charged on a pro rata
basis). It will be notified to you with your Statement. The
Regulations permit these charges to be met from outside a plan.
You may pay these charges by sterling cheque, drawn on a UK
bank account and made payable to “NatWest Stockbrokers” or,
at our discretion, by Maestro/Solo/Delta payment authority, but
your payment must be received within one calendar month from
the date of your statement.
- In the event there is insufficient cash in a plan to meet
administration fees in their entirety, we will forward
correspondence to you requiring either the full remittance or the
difference. In the event that the administration fee is outstanding
after 30 calendar days from when we first notified you that it was
due, we reserve the right to debit the fee from any other plan or
any other account that you hold with us, or to sell investments
from the Plan. Any sale will incur the normal commission charge
and any other applicable fees, expenses and charges.
- Commission on all transactions effected on your behalf under
this Agreement, together with stamp duty, stamp duty reserve
tax, PTM levy, and associated charges (if appropriate), will be
charged at the rates applicable as at the date of the transaction.
These charges must be met from within your Plan. We reserve
the right to pass on to you any further charges, expenses and
fees reasonably incurred by us on your behalf under the
Agreement. You should be aware that you may be liable to pay
other taxes and costs which are not paid through us or imposed
by us.
- We may realise any investments and may apply any cash
balance, after deduction of charges and commission as
indicated in this Clause 28., to recover fees, charges, taxes and
other amounts due to us under the Agreement. We will, at our
discretion, retain within a Plan sufficient funds to cover any future
administration charges but not so as to cause a Plan to cease to
comply with the Regulations.
29. Income
- Dividends, reclaimed tax credits and other income on
investments that we collect on your behalf will be credited to your
account as soon as practicable after receipt by us.
- We will not be liable for any loss of interest due to any delay
outside of our control in crediting any income received, to your
cash balance, under Clause 29.i.
- Interest will be calculated at the rate set out from time to time in
our Tariff of Fees and Charges on the cleared cash balance, and
credited to your Plan on or around the 25th day of May and
November in any year. Interest will be credited to your ISA gross
and then we will deduct the H.M. Revenue and Customs flat rate
charge of 20%.
- We do not offer an automatic income payment method on a
regular basis but any cash withdrawal can be made free of
charge, either on telephone or written request.
- We do not offer an automatic income reinvestment policy.
All dividends, tax credits and interest received in your Plan will
accumulate and be retained within the Plan and detailed on your
Statement. The timing of any reinvestment is at your discretion.
- Normal commission rates, as set out in our Tariff of Fees and
Charges, will apply to such investment.
- H.M. Revenue and Customs will not allow cash to remain
uninvested in a Plan indefinitely. We will write to you on a periodic
basis, if your Plan has acquired substantial cash balances,
reminding you of the Regulations and the options available to
you.
30. Information
- You will promptly supply us with all information that we
reasonably request for the purposes of managing and
administering your Plan and complying with our obligations under
the Agreement and the Regulations.
- You will immediately inform us in writing if you cease to be
resident and ordinarily resident in the United Kingdom for tax
purposes or, if not so resident, you cease to perform duties as a
Crown Employee or are no longer married to, or in a civil
partnership with, a person who performs such duties (as and if
appropriate).
- You will promptly provide H.M. Revenue and Customs with any
information they may require in connection with your Plan.
31. Termination and Withdrawals
- Your Plan may be terminated with immediate effect by us giving
written notice of termination to you if in our view it is impossible
to administer the Plan in compliance with the Regulations. Your
Plan will terminate automatically with immediate effect if it
becomes void under the Regulations.
- You may at any time give us written instructions:
a) to sell any of the investments contained within your Plan and pay
you all, or some, of the net sale proceeds, after deduction of
commission under Clause 28.iii and closure charges (if
appropriate) as set out in our Tariff of Fees and Charges,
together with the whole or part of any cash balance held in the
Plan; or
b) to terminate your Plan, or to transfer your Plan to another
approved plan manager who agrees to accept the transfer (after
deduction of commission under Clause 28.iii and closure
charges as set out in our Tariff of Fees and Charges) within the
time limits stipulated by you in your written instructions, subject to
a reasonable business period (not exceeding 30 days) for the
practical implementation of your instructions by us.
- We will treat telephone instructions to withdraw cash from your
Plan in the same way that we treat written instructions. We will not
accept oral instructions to close your Plan.
- In the event that you reduce the level of cash and/or investments
in your Plan to such an extent that we in our reasonable
discretion believe you are maintaining the Plan solely to avoid our
closure charges, then we may terminate the Plan with immediate
effect and charge you our normal closure fees as set out in our
Tariff of Fees and Charges. If you close your Plan prior to the
charge date then no annual administration fee will be charged;
however a closure fee may apply.
- We may terminate a Plan at any time by giving one month’s
written notice to you, unless a Plan has become void in which
case Clause 31.i applies.
- If your Plan terminates or is transferred to another plan manager
under Clauses 31.i and 31.ii, we will (as appropriate in the
circumstances) either re-register the investments contained within
the Plan into either your own name or the new plan manager’s
name or, as soon as reasonably practicable at our reasonable
discretion, sell the investments contained within the Plan and pay
the net proceeds of the sale (after deducting our fees and
charges under Clause 28),and any cash balance to you or, if so
directed, to another approved plan manager who agrees to
accept the transfer.
- The termination of a Plan, or its transfer to a new plan manager,
will be without prejudice to the completion of transactions
already initiated.
- We will monitor a closed Plan for any income that is received
after closure and pay this to you or your new plan manager
(as appropriate).
- We will withdraw investments from a Plan on your written request
and register the investment into your name, subject to the payment
of the withdrawal fee as set out in our Tariff of Fees and Charges.
- If any interest is earned on uninvested cash in a Direct Trader
Self-Select ISA (whether withdrawn or not), we will deduct tax at
the flat rate charge applicable from time to time on the total
amount of such interest and pay this to H.M. Revenue and
Customs. You must declare this on your annual tax return.
32. Death of an Investor
- Your Plan will terminate automatically on your death. The
exemptions from tax cease from the date of death.
- Administration fees will continue to be due, until such time that all
administration on your Plan is complete.
- Notwithstanding Clause 32.i above and subject to Clause 32.iv
below, our authority and that of the Nominee will not be affected
by your death and accordingly the Agreement shall be binding
on your personal representatives.
- On production of such documentary evidence as we may
specify, we will deal with the Plan as instructed by the
executors/personal representatives of the deceased investor (but
always in accordance with the Regulations). In the case of a
request to liquidate the Plan, we will sell the investments
contained in the Plan and pay the net sale proceeds and any
cash balance, after deducting our charges and any tax required
to be deducted by law, to, or to the order of, your
executors/personal representatives. In the case of a request to
withdraw the investments from the Plan, we will re-register these
into the name of the beneficiary that your executors/personal
representative specifies.
33. General
- If you are in any doubt as to the suitability of a Plan for your
personal circumstances, you should seek independent
professional advice.
- We will notify you if we become aware that, by reason of any
failure to satisfy the provisions of the Regulations, your Plan has
or will become void.
- The Agreement will come into force when we have accepted your
valid Application Form (or Application Form and transfer form)
and valid subscription.
- We will administer your Plan on a self-select, execution-only
basis. Your attention is specifically drawn to the provisions of
Clauses 1 and 2 of the Share Dealing Service Terms and
Conditions. Investment selection is your responsibility, but
investments must be Qualifying Investments for the purposes of
the Regulations.
- You will at all times be the beneficial owner of any investments
and cash held in your ISA. You must not use the investments
and/or cash in your ISA as security for a loan except to the extent
permitted by the Regulations.
- We can delegate or transfer our rights and duties to agents and
any of our associated companies, subject to our being satisfied
that the agent or associated company involved is competent to
carry out such duties. We remain responsible for the operation of
the Plan.
- Company Reports and Accounts – please refer to Clause 3 xvii of
the Share Dealing Service Terms and Conditions. Clause 3 xvii
will also extend to any other shareholder communication e.g.
reports and accounts. For the avoidance of doubt, where you ask
us in writing to do so, we shall arrange to supply you with any
reports and accounts and other information issued to investors of
any companies, unit trusts, open-ended investment companies or
other entities in which you have investments which are contained
within your Plan.
- You have the right to change your mind and cancel your
application to subscribe to a Direct Trader Self-Select ISA or to
transfer an existing ISA within 14 days from the date on which
your Plan is opened. You must do so in writing to Direct Trader,
New Business, PO Box 549, Leeds LS1 4ZY. Upon cancellation,
you will not be entitled to a refund of any commission paid to
brokers or, in respect of any transactions already effected in
respect of your Plan and, depending on market fluctuations in
the intervening period, you may not receive back the full amount
of your original investment.
Monthly Portfolio Builder Service
34. Introduction
Clauses 34 to 45 (both inclusive) of these Monthly Portfolio Builder
Service Terms and Conditions (the “Portfolio Builder Terms and
Conditions”) apply to the Monthly Portfolio Builder Account which is
provided by NatWest Stockbrokers Limited.
These Portfolio Builder Terms and Conditions should be read in
conjunction with the Share Dealing Service Terms and Conditions and
with your application to open a Monthly Portfolio Builder Account. The
relevant provisions of the Share Dealing Service Terms and Conditions
(including 1, 2, 3, 4, 5, 8, 9, 10, 11, 14, 16, 17, 18, 19 and 21), shall
form part of this Agreement as though set out in full in these Portfolio
Builder Terms and Conditions ( with the provisions being adapted if
and as necessary to apply to the Monthly Portfolio Builder Services)
and insofar as they do not conflict with any provision of the Portfolio
Builder Terms and Conditions. In the event of any conflict between the
Portfolio Builder Terms and Conditions and the relevant provisions of
the Share Dealing Service Terms and Conditions the terms of the
Portfolio Builder Terms and Conditions shall prevail.
35. Definitions
In these terms:
- “Available Cash” means the cleared funds held in your Monthly
Portfolio Builder Account that may include your Subscription
Surplus, dividends, interest and any other funds credited to your
Monthly Portfolio Builder Account;
- “Charges” means the charges, fees and expenses as described
in the Tariff of Fees & Charges which are payable by you in
respect of your Monthly Portfolio Builder Account and the
carrying out of your Investment Instructions by us. Charges on a
Purchase will be deducted from your Investment Subscription,
when a Purchase is made.
- “Company Trade Date” means the days on which we, in our
reasonable discretion, will purchase Investments for customers
that have Monthly Portfolio Builder Accounts and will normally be
the two Business Days in each calendar month as indicated on
our website www.rbs-sharedealing.co.uk
- “Investments” means the shares, collective investments or
other products that we will designate from time to time as
being available to you to Purchase as part of the Monthly
Portfolio Builder Service, as indicated on our website
www.rbs-sharedealing.co.uk
- “Investment Instruction” means your instruction to us to make a
Purchase on each Purchase Date to a value of not more than
your Investment Subscription;
- “Investment Subscription” means that portion of your Total
Monthly Subscription that you allocate each month to satisfying
each Investment Instruction, and which includes any Charges
associated with carrying out that Investment Instruction;
- “Payment Date” means the date on which your Total Monthly
Subscription is credited to your Monthly Portfolio Builder
Account;
- “Purchase” means the purchase of an Investment;
- “Purchase Date” means the Company Trade Date on which we
will carry out your Investment Instruction(s);
- “Purchase Consideration” means your Investment Subscription
less any Charges payable;
- “Monthly Portfolio Builder Account” means the account into which
you pay your Total Monthly Subscription;
- “Monthly Portfolio Builder Service” means the service we provide
to you of maintaining the Monthly Portfolio Builder Account and
purchasing Investments pursuant to your Investment
Instruction(s) and is one of the Services which is referred to in
the Introduction to the Terms and Conditions;
- “Subscription Surplus” means the amount of your Total Monthly
Subscription which is not used for Purchases made on the
Purchase Date immediately following the relevant Payment Date
or for the payment of any Charges due and which will remain as
cash in the Monthly Portfolio Builder Account unless you
specifically instruct us otherwise;
- “Total Investment Instruction (s}” means all of the Investment
Instructions that you give to us to be funded by your Total
Monthly Subscription;
- “Total Monthly Subscription” means the total amount you are
required to pay into your Monthly Portfolio Builder Account each
month for the purpose of fulfilling your Total Investment
Instructions(s) and paying any Charges that may be payable;
and
- “We”/ “us”/ “our” means NatWest Stockbrokers Limited.
36. Account Opening
- We will use our reasonable endeavours to open your Monthly
Portfolio Builder Account in a timely manner, but we do not
guarantee that we will do so in a particular timescale or before
any particular Company Trade Date.
- We reserve the right to close your Monthly Portfolio Builder
Account if you have not accepted these Portfolio Builder Terms
and Conditions within 28 days of opening your Monthly Portfolio
Builder Account.
- If you have not already accepted them by this time, you will be
deemed to have accepted these Portfolio Builder Terms and
Conditions when you pay your first Total Monthly Subscription
into your Monthly Portfolio Builder Account.
- We reserve the right to reject your application to open a Monthly
Portfolio Builder Account without specifying a reason to you.
If your application is rejected, we will promptly notify you of this.
- Your Monthly Portfolio Builder Account can be in your sole name
or providing it isn’t an ISA, may have one other person as a joint
account holder with you, If you have already opened a Direct
trader Share Dealing Account and/or a Direct trader ISA
Account, usually your Monthly Portfolio Builder Account will
be opened in the same name(s) as your existing Direct
trader Account(s).
37. Purchase of Investments
- This Monthly Portfolio Builder Service is designed to enable you
to purchase, once per month, units of Investments to a total value
of no more than your Investment Subscription in respect of each
Investment Instruction you make.
- Each Investment Subscription must not be less than £25 (or such
other minimum amount as we may notify you from time to time).
The minimum Investment Subscription may be higher for
particular Investments such as unit trusts. Details of the current
minimum subscriptions applicable will be set out on our website.
These minimum subscriptions are subject to change. We will
notify you of any changes to the minimum subscription for
particular Investments
- As we can only purchase whole units of equities for you, if the
single unit price of any equity that you select is a substantial
percentage of your Investment Subscription, this may mean that
the amount we are able to use for a Purchase may be less than
your Investment Subscription. This may result in a proportion of
your Investment Subscription remaining unused after a Purchase
as Available Cash in your Monthly Portfolio Builder Account.
- You must specify the Investment to be purchased with each
Investment Subscription. You may specify up to ten (10) different
Investments to be purchased with your Total Monthly
Subscription, but each Investment Subscription shall be for the
purchase of no more than one particular Investment.
- You should ensure that the amount of Available Cash that may be
used for carrying out your Total Investment Instructions and
paying any Charges that may be payable each month is not less
than your Total Monthly Subscription. In calculating the amount of
the Available Cash that may be used for these purposes any
Subscription Surplus will not be taken into account (see Clause
37 vii below).
- We will carry out each Investment Instruction on the Purchase
Date by carrying out a Purchase for an amount not more than the
Purchase Consideration, provided that (and subject to what is
stated in Clause 37 vii below) there is sufficient Available Cash in
your Monthly Portfolio Builder Account.
- Your Subscription Surplus will remain as cash in your Monthly
Portfolio Builder Account and will form part of your Available
Cash. However, unless you give us specific instructions to do so,
we will not use your Subscription Surplus to fulfil any Investment
Instructions or purchase any Investments. You may separately
instruct us to purchase particular Investments on a specific
Purchase Date in addition to fulfilling your Total Investment
Instructions given for that date, using any Available Cash.
If you have a Monthly Portfolio Builder ISA you must promptly give us
any additional instructions required to ensure that all Available Cash is
invested in Investments, without delay. Retaining cash in your ISA could
make your ISA void.
- You are responsible for ensuring that sufficient Available Cash of
a value no less than your Total Monthly Subscription is in your
Monthly Portfolio Builder Account on each Purchase Date. (As
provided above, in calculating whether sufficient Available Cash
is available for these purposes the amount of any Subscription
Surplus will not be taken into consideration). We accept no
responsibility or liability where an Investment Instruction cannot
be carried out due to lack of Available Cash.
- We will carry out your Investment Instructions on the Purchase
Date in the order that they are listed on your Monthly Portfolio
Builder Account, up to the value of the Available Cash (not taking
account of any Subscription Surplus) in your Monthly Portfolio
Builder Account. We will not be able to carry out your Total
Investment Instruction if the Available Cash (excluding for these
purposes any Subscription Surplus) in your Monthly Portfolio
Builder Account is less than your Total Monthly Subscription on a
Purchase Date. We accept no liability or responsibility for any
loss that is alleged to be caused by an Investment Instruction not
being carried out in these circumstances.
- You may make payments to your Monthly Portfolio Builder
Account by direct debit, debit card or by cheque or any other
means that we may from time to time allow.
- You must choose the Payment Date when opening your Monthly
Portfolio Builder Account. If the Payment Date that you select
falls on a day that is not a Business Day it will be deemed to be
the next Business Day following the date that you selected.
- On the Purchase Date your orders for Purchase(s) will be
aggregated with orders from such other of our customers as we
shall in our reasonable discretion determine. If the total
aggregated order for a particular Investment cannot be executed
in full on a Company Trade Date we will use our reasonable
endeavours to execute the order on the next Business Day. We
will not execute such aggregated orders in part. Occasionally,
the aggregation of orders may result in you obtaining a less
favourable price.
- We will only make a Purchase of Investments priced in Pounds
Sterling.
- We will inform you of your Purchase Date when you open the
Monthly Portfolio Builder Account. We will decide the Purchase
Date in our reasonable discretion but it will normally be the first
Company Trade Date falling at least two (2) Business Days after
your Payment Date. We do not guarantee to make a Purchase on
any particular date or at any particular time.
- If you wish to vary or cancel your Investment Instructions in time
for the next Purchase Date, you must notify us of this at least two
(2) Business Days prior to that Purchase Date. Where we do not
receive this notification from you at least two (2) Business Days
prior to a Purchase Date we will use our reasonable endeavours
to vary or cancel your Investment Instructions as notified to us,
prior to the immediately following Purchase Date. However, we
accept no liability in respect of or in connection with a Purchase
made even after receipt of your notification of variation or
cancellation but before we have had sufficient time to put it into
effect.
- We reserve the right to withdraw or add to the list of Investments
at any time. The list of current Investments will be set out on our
website www.rbs-sharedealing.co.uk. We are not required to
publish the list of Investments anywhere other than on our
website. Please note that it is your responsibility to regularly
check the Investments listed on our website and to promptly give
us amended Investment Instructions if this is necessary to take
account of changes that have been made to the list.
- We reserve the right, acting reasonably, to decline to carry out an
Investment Instruction without having to specify a reason to you.
In these circumstances, we will promptly notify you of this.
- We do not accept Limit Orders or Stop Orders for Purchases in
respect of the Monthly Portfolio Builder Service.
38. Sale of Investments
The Monthly Portfolio Builder Service is a service in relation to the
purchase of Investments only. You are responsible for deciding if and
when you should sell any Investments held in your Monthly Portfolio
Builder Account. You may place an order with us for the sale of any
Investments held in your Monthly Portfolio Builder Account and the
Share Dealing Service Terms and Conditions and the relevant charges
set out in the Tariff of Fees & Charges will then apply to that sale order.
39. Charges
- Charges will be payable in respect of each Purchase as
specified in the Tariff of Fees & Charges. These will be deducted
from your Investment Subscription and the balance will be used
to make a Purchase pursuant to your Investment Instruction.
- We will not make any charge in respect of the PTM levy for
Purchases made pursuant to an Investment Instruction. We will
make a charge for the PTM levy in respect of any other purchase
of Investments for your Monthly Portfolio Builder Account or any
sale of any Investments, such sales being made under the terms
of the Share Dealing Service Terms and Conditions and subject
to the relevant charges set out in the Tariff of Fees & Charges.
- Currently, there is no Account Management Fee (as described in
the Tariff of Fees & Charges) payable on your Monthly Portfolio
Builder Account.
40. Execution only service
The Monthly Portfolio Builder Service is an execution only service
and we will not provide any investment advice to you. The
availability of a particular Investment is not a recommendation
from us to purchase any such Investment. You are responsible for
the selection of the Investments that you purchase. We are not
required to assess the suitability of any Investment |
