Download SIPP terms - Barclays Stockbrokers

Stockbrokers
The Barclays
Stockbrokers SIPP
Terms and Conditions
Contents
Section 1 3
Appendix 1 – Additional Terms for Cash Management 29
1. Applications 3
1. Our legal relationship
29
2. Contributions and transfers 3
2. Payments into and from your Cash Account
29
3. Dealing and investment 4
3. Payment Orders
30
4. Services
5
4. Refusing Payment Orders
31
5. Pension administration charges 5
5. Your obligations
31
6. Risk warnings 6
6. Fees, Interest and Charges
31
7. Indemnity and exemptions from liability 6
7. Ending the Cash Account relationship,
8. Instructions and notices
7
9. Complaints
7
8. Variations
32
10. Amendment
8
9. Interest
32
11. Termination and suspension 8
10. European Savings Directive (“ESD”)
33
12. Miscellaneous
9
11. Varying the interest rate
33
13. Data protection 9
12. Payments into your Account
34
14. Financial Services Compensation Scheme 9
13. Unauthorised payments
34
15. Cancellation rights 9
14. Our liability
34
16. Jurisdiction and law 10
15. Statements
34
Section 2 Dealing and Investment administration
11
16. Definitions
34
Terms and Conditions 11
Schedule A: Information on how BBPLC executes
1. Introduction 11
clients order & the execution venues that BBPLC use 38
2. The BBPLC service
11
Part 1: Our typical dealing arrangements
3. Looking after investments in your SIPP 12
for different types of investment:
38
4. Corporate actions 13
Part 2: The execution venues that we use:
38
5. Dealing
15
Schedule B
39
6. Settlement and charges
18
Investment Specific Risks
40
7. Agents
18
Schedule C
41
8. Your money 18
9. Restrictions 21
10. Your responsibilities 21
11. Keeping you informed 22
12. Circumstances beyond our control 23
13. General
23
14. Conflicts of interest 23
15. FSCS 24
16. Ending this Agreement
25
17. Tax
25
18. International taxation arrangements
25
19. Automatic dividend reinvestment
26
20. Dormant and lost accounts
26
21. Assignment
26
22. Dealing with personal representatives and
insolvency practitioners
28
23. Pooling of Investments
29
24. Corrections
29
services or products
32
Introduction
Section 1
This document details the Terms and Conditions for the
1. Applications
Services provided to you, as the holder of a Self Invested
1.1Applications must be made in a form determined
Personal Pension from BBPLC, by AJ Bell Management
from time to time by AJ Bell. Membership of the
Limited (“AJ Bell”).
Scheme will only commence upon notification
by AJ Bell to you following receipt and AJ Bell’s
AJ Bell is the Scheme Administrator of the Scheme and
acceptance of a Contribution or Transfer. AJ Bell
carries out the administration and management of the
may decline any Application, Contribution or
Scheme, which is a registered pension scheme under
Transfer at its absolute discretion.
Chapter 2 of Part 4 of Finance Act 2004. Sippdeal Trustees
1.2On becoming a Member you agree to be bound by
Limited (“STL”), a wholly owned subsidiary of AJ Bell,
these Terms and Conditions and the Scheme Rules,
is the trustee of the Scheme and acts for all purposes
as amended from time to time. In particular, you
at the direction of AJ Bell.
agree that you will not require, nor attempt to require,
the withdrawal of funds held under your SIPP other
As trustee, STL is the legal owner of all assets within the
than in accordance with the Scheme Rules. In the
Scheme. Your entitlement is to the future benefits which
event that an unauthorised payment is made, you
will become payable under the Scheme in line with the
agree to AJ Bell deducting the amount of any scheme
Scheme Rules and the HMRC rules which apply at the time
sanction charge, or other charge, levied by HMRC on
benefits are drawn.
AJ Bell from your SIPP in order to pay that charge to
HMRC. If there are insufficient funds held in your SIPP,
AJ Bell is authorised by the Financial Conduct Authority.
you agree to pay to AJ Bell the amount by which the
AJ Bell is on the FCA Register under FCA Register Number
charge exceeds the value of your SIPP in the event
211468. STL does not conduct any regulated activities and
that HMRC pursue AJ Bell for this amount, or to pay
is, therefore, not regulated.
the outstanding amount direct to HMRC.
1.3On becoming a Member we will classify you as a retail
Under an agreement between AJ Bell, STL and Barclays Bank
client for the purposes of FCA rules. This classification
PLC (“BBPLC”) BBPLC will provide dealing and investment
provides the highest level of protection under
administration services for your SIPP. These Terms and
FCA rules.
Conditions set out how Dealing Services will be provided
1.4Where the application for membership of the Scheme
for your SIPP, how you may use those Dealing Services,
is made by a legal guardian on your behalf because
and the terms on which you are authorised by AJ Bell and
you are under the age of 18, all authority to manage
STL to give instructions to BBPLC in relation to your SIPP
your SIPP in accordance with these Terms and
Account. You acknowledge that all purchases and sales
Conditions and the Scheme Rules will rest with the
of Investments within the SIPP Account must be made
legal guardian until such time as you reach 18 years of
through BBPLC. All cash and investments held for the
age at which time all authority will automatically pass
purposes of your SIPP will be held in the name of BBPLC’s
to you.
nominee or STL.
2. Contributions and transfers
Please see clause 15 of Section 2 for the definitions of the
terms used in these Terms and Conditions.
2.1Subject to 2.3, you may contribute to the Scheme
at any time, subject to HMRC requirements. You
may also arrange for a Transfer from any other UK
registered pension scheme to the Scheme.
2.2Set up, contribution processing and transfer-in fees,
as set out on the Charges and Rates page of the
3
Website, will be deducted by AJ Bell before any cash is
is the exclusive provider of the Dealing Services in
paid into the SIPP Account.
relation to the Barclays Stockbrokers SIPP. AJ Bell and
2.3Payment of Contributions and Transfers may only
STL by and under the provisions of these Terms and
be made in such form and manner and subject to
Conditions authorise you to use this Dealing Service
such minimum levels as determined by AJ Bell in its
on their behalf in relation to your SIPP and further
absolute discretion from time to time and published
authorise you to delegate that authority to a User,
in the Key Features Document. Valid Transfers or
provided BBPLC consents to such delegation.
Contributions received by cheque will usually be
3.2No advice will be given by AJ Bell, STL, BBPLC or the
available for dealing within five Business Days.
Bank as to the suitability of any Investments and
Banking system failures outside of AJ Bell’s or BBPLC’s
nothing published on the Website or provided to you
control may sometimes make this period longer. If a
either verbally or in writing whatsoever should be
payment is not subsequently honoured by the payer,
construed as financial or investment advice as defined
an appropriate adjustment will be made to the SIPP
by the Financial Services and Markets Act 2000 unless
Account and a reasonable charge levied to your SIPP
it is expressly stated to the contrary.
for costs arising therefrom.
2.4You will be responsible for initiating and co-ordinating
3.3For the avoidance of doubt no advice shall be
provided by AJ Bell, STL, BBPLC or the Bank in relation
all Transfers from other pension providers and neither
to the following:
AJ Bell nor BBPLC shall be liable for any delay in receipt
• the suitability of the SIPP for your own particular
of such Transfers, except to the extent any loss arises
from its negligence, wilful default or fraud.
2.5Where you have made a Contribution that is
subsequently refunded (for any reason), the refund
may be less than the amount originally paid.
The reduction may be as a result of our Charges;
charges or interest applied by HMRC; or due to the
performance of Investments held within the SIPP
circumstances;
• the level of Contributions (if any) to be paid into
your SIPP;
• whether or not to transfer an existing pension
benefit into your SIPP;
• the suitability of any Investments you may wish to
buy or sell through the Dealing Service;
• whether to take benefits and if so whether to elect
Portfolio. AJ Bell shall not be liable for any such
for income withdrawal, annuity purchase or any
reduction in value except to the extent it arises as
other benefits available under the Scheme;
a result of its negligence, wilful default or fraud.
2.6In the event of a Transfer from other registered
pension schemes being made in error to your SIPP,
AJ Bell reserves the right to make refunds of such
• whether or not to register with HMRC for
transitional protection for pension rights; and
• any other matters relating to tax or financial
services whatsoever.
Transfers at its discretion and without further
authority from you.
2.7You are responsible for ensuring that all Contributions
are within allowable limits for tax relief. AJ Bell accepts
Any advice you may receive from a third party shall fall
outside of the scope of the Service and these Terms
and Conditions.
no responsibility for any interest claimed by HMRC
on any tax relief erroneously granted, for any reason,
3.4 Where you have delegated authority to a User you
except to the extent any loss arises from its negligence,
will be responsible for any instructions the User gives
wilful default or fraud.
us or actions the User takes on your behalf in relation
to your SIPP and you agree to indemnify and hold
3. Dealing and investment
AJ Bell, STL and BBPLC harmless in relation to such
3.1BBPLC provides an execution-only service for your
instructions or actions.
SIPP for the purchase and sale of Investments. BBPLC
4
4. Services
within the SIPP Portfolio, as we may determine at our
4.1 AJ Bell will provide the following services:
discretion, to cover the outstanding Charges. If any
• setting up administrative records and systems to
shortfall remains AJ Bell will hold you personally liable
establish and maintain your SIPP in line with HMRC
for this amount. You are responsible for ensuring
and other regulatory requirements;
that there is always sufficient cash available within
• maintenance of administrative records and systems
to receive Contributions, Transfers and pay benefits
as appropriate;
• recovery of basic rate tax on Contributions where
appropriate;
• recovery of any allowable tax deducted at source on
investment income received by your SIPP;
• provision of certificates to verify Contribution
payments, if required;
• a dealing and investment administration service made
the SIPP Cash Account to pay all Charges or benefits
when due.
5.3 In addition, AJ Bell and BBPLC may modify the
Charges from time to time by 30 days’ written notice
given to you or by publication on the Website. Such
changes will take effect from the date stated in the
notification. During this notice period we will not
increase our then published transfer out fees and you
will be free to transfer your SIPP to another registered
pension scheme, subject to the existing transfer out
available through an exclusive arrangement with
fees. The use of the Website by you after any notified
BBPLC;
changes to give instructions or carry out any transaction
• dealing with day to day general correspondence and
will be considered acceptance of those changes.
telephone enquiries in relation to the administration of
We will generally only alter our Charges for the
your SIPP; and
following reasons:
• such other services as may from time to time
be necessary to effectively administer your
SIPP and comply with HMRC or any other
regulatory requirements.
• significant changes in pensions or other relevant UK
or European legislation;
• significant changes in the regulatory regime or
reporting requirements;
• changes in the fees levied on us by the FCA,
5. Pension administration charges
including any levies raised under the Financial
5.1
Services Compensation Scheme;
All Charges in connection with the SIPP, as at the date
your SIPP is established, are shown on the Rates and
• changes in how the LSE or other markets may work
Charges page of the Website. All Charges are subject to
which may impact on the operation of your SIPP;
VAT which is payable in addition to the amounts shown,
• changes in investment dealing or administration
unless otherwise stated. All quarterly charges will be
payable in arrears and will apply for each quarter or part
which may impact on the operation of your SIPP;
• to avoid cross subsidisation between individual
thereof to which the Services under these Terms and
Member funds where the provision of certain
Conditions relate. “Quarter” for this purpose means a
services are being charged on an uneconomic basis;
calendar year quarter ending on 31 March, 30 June,
30 September or 31 December respectively. The quarterly
• changes in ownership of our businesses or how
they operate;
charges will be calculated based on the value of the SIPP
• to reflect changes in how the internet operates; and
Account at the relevant quarter end. AJ Bell and BBPLC
• to remedy manifest errors.
reserve the right to charge reasonable interest for late
payment of Charges.
5.2 All Charges will be deducted from the SIPP Cash
If we alter our Charges for valid reasons that are not
specified in these Terms and Conditions and you are
Account. If there are insufficient funds available in the
not happy with those changes, then we will waive the
SIPP Cash Account then AJ Bell is authorised to give
existing transfer out fee should you wish to transfer
instructions to sell such Investments as may be held
your SIPP to another registered pension scheme,
5
provided that the transfer is made within three
purchase the annuity may be lower, or higher, than
months from the date on which you were given notice
the pension previously being paid under income
of the change. We will not meet any other costs of
withdrawal and/or the annuity you could have
the transfer.
purchased initially.
• If significant withdrawals are to be taken, these
5.4 AJ Bell reserves the right to make an additional charge
high income levels may not be sustainable over the
if it is required to pay a levy, or interim levy, under the
longer term.
Financial Services Compensation Scheme or by the
FCA. AJ Bell will apply the amount of the additional
7. Indemnity and exemptions from liability
charge proportionately across all SIPP cash accounts
7.1
Indemnity
in a manner AJ Bell considers is fair and reasonable
You agree to indemnify AJ Bell, its employees, agents,
and AJ Bell will explain the calculation of the charge to
STL, the Bank and BBPLC (“the Indemnified Parties”)
you. AJ Bell will give you 30 days’ notice of the amount
against all reasonable costs, claims, expenses, tax
of the additional charge before it is deducted from
charges, demands and losses (“Liabilities”) that the
your SIPP Cash Account. Should any levy be refunded
Indemnified Parties may suffer or incur in performing
to AJ Bell by the Financial Services Compensation
their duties under these Terms and Conditions or
Scheme, a proportionate amount of the refund will
carrying out their lawful duties and responsibilities
be passed onto your SIPP on the same basis as the
in relation to your SIPP except where that Liability
charge was initially calculated.
arises from the negligence, wilful default or fraud of
the Indemnified Parties. This indemnity will remain
6. Risk warnings
in force notwithstanding that you transfer your
6.1
SIPP elsewhere.
General
• The rules on taxation can change. The value to you
7.2
Nothing in these Terms and Conditions will exclude or
of any tax benefits will depend on your tax position.
limit AJ Bell or STL’s liability for
You should consult your tax adviser in order to
(a)any duty which we owe you under the FCA rules
understand the impact of investment decisions on
(b)death or personal injury caused by our negligence
your tax position.
(c)fraud
• The Key Features Document includes further
information on the risks associated with your SIPP.
(d)any obligations which the law does not permit to
be excluded.
7.3 Except as provided in clause 7.2, neither AJ Bell nor
6.2Income withdrawal
• If you are using capped drawdown under income
withdrawal, based on current rules, income limits
must be reviewed at three yearly intervals up to
age 75 and annually from age 75. The maximum
pension permitted at each review may be reduced if
STL shall be liable for:
• any loss or damage arising from the use by you of
the Dealing Service provided by BBPLC
• any loss or damage that is not
reasonably foreseeable
• any loss of income or revenue, loss of profits or
your SIPP achieves insufficient investment growth.
anticipated savings or wasted expenditure (except
• Taking income withdrawals may erode the capital value
where such losses are a direct result of our breach
of the SIPP Account, especially if investment returns
of the Agreement) or loss of the ability to reinvest
are poor and a high level of income is taken. This could
• any indirect, special or consequential loss or damages
result in a lower income than anticipated in future.
• There is no guarantee that annuity rates will
6
and in all cases regardless of whether or not such
improve in the future. If you choose to purchase an
loss was foreseeable or arises from circumstances
annuity, the level of pension you receive when you
particular to you which you had advised us of.
7.4
7.5
AJ Bell and STL exclude all obligations, warranties and
8.3Unless these Terms and Conditions provide otherwise
conditions express or implied and any liabilities that
you can send BBPLC a Communication by post, e-mail
arise from them so far as is permissible by law.
or telephone using the contact details set out below:
Circumstances beyond our control
Barclays
AJ Bell, STL and BBPLC will not be liable to you for
Tay House
any partial or non-performance of their obligations
300 Bath Street
under these Terms and Conditions by reason of
Glasgow G2 4LH
any cause beyond their reasonable control. This
includes prevailing stock market conditions, the
Telephone: 0333 2027544*
breakdown or failure of any clearing system used
in connection with the Service, the insolvency
e-mail: [email protected]
or default of any participant in such a clearing
system or the failure by any settlement bank
or such other contact details as BBPLC may notify you
to make, receive, credit or debit any payment.
of in the future in a manner contemplated by these
This also includes failures, interruptions or delays
Terms and Conditions.
due to postal delays, unauthorised access, theft,
earthquakes, war or other hostilities, terrorist
If you send BBPLC a Communication that you feel
activity, civil unrest and interference (whether
is important, you agree to check with BBPLC or ask
or not caused by severe or abnormal weather
them to tell you when they have received it. This will
conditions). Please also note that the internet and
ensure they are aware of any Communication that has
any telecommunication or computer service or
not reached them.
systems or equipment or software may break down,
malfunction or lead to a delay in relation to the
Services through no fault of AJ Bell, STL or BBPLC.
8.4 You are required to maintain a live e-mail address for
receipt of ongoing Communications.
8.5 AJ Bell cannot be forced to make any payment that is
8. Instructions and notices
not authorised by Finance Act 2004. AJ Bell is required
8.1 AJ Bell may act upon oral, email or facsimile
to report any unauthorised payments made by your
instructions but reserves the right to refuse to act
SIPP to HMRC.
until the original written instruction is received. Any
written notice or Communication to AJ Bell should be
9. Complaints
sent to its registered office address.
If you want to make a complaint in relation to the Services
provided by AJ Bell in accordance with these Terms and
AJ Bell accepts email as an acceptable form of
Conditions then such a complaint should be made in
Communication. E-mail messages may not be secure
writing and addressed to the Compliance Officer at AJ Bell’s
and may be intercepted by third parties. AJ Bell
registered office. A leaflet explaining AJ Bell’s complaint
therefore advises you not to use email to send
handling procedure is available on request.
confidential information or Communications which
require immediate attention.
If you want to make a complaint about the Dealing
8.2When sending Communications to you, AJ Bell will send
Services, you should contact BBPLC’s Client Service Team.
them to the permanent postal or e-mail address or
A leaflet explaining BBPLC’s complaint handling procedure
telephone number you gave on the Application or to any
is available on request.
other postal or e-mail address or telephone number that
you have subsequently given to AJ Bell in writing.
If you want to make a complaint in relation to the activities
of a User, you should take these up with the User directly.
7
10. Amendment
of the change. We will not meet any other costs of
10.1 Subject to 10.2 below, AJ Bell may amend, or
the transfer.
supplement these Terms and Conditions from
time to time upon 30 days’ written notice to you.
11. Termination and suspension
You acknowledge that, from time to time, BBPLC is
11.1 Termination of membership of the Scheme and of
entitled to change the Terms and Conditions upon
the SIPP Account may only be effected by you or
which BBPLC provides the Dealing Services to AJ Bell.
AJ Bell subject to the Scheme Rules, HMRC rules
Any such changes by BBPLC will be notified to you
and the provision of relevant instructions to AJ Bell.
by AJ Bell or BBPLC by 30 days’ written notice. BBPLC
11.2 BBPLC is entitled to terminate the provision of the
may only do so in circumstances similar to those set
Dealing Service or, where reasonable, suspend its
out at 10.3 below.
provision for a reasonable period to your SIPP, at any
10.2 Such changes will take effect from the date stated
time by giving written notice to you. This notice will
in the notification. During the notice period we will
apply from the date it is received or any later date
not increase our then published transfer out fees
advised in the notice from BBPLC. BBPLC will give
and you will be free to transfer your SIPP to another
you at least 30 days’ written notice before ending the
registered pension scheme, subject to the existing
Dealing Service.
transfer out fees. The use of the Website by you after
11.3 BBPLC may give you less or no notice if termination
any notified changes will be considered acceptance of
of the Dealing Service is necessary for any legitimate
those changes.
reason, for example, to comply with any Relevant Law,
10.3 We will generally only alter our Terms and Conditions
or because of legitimate security concerns or because
for the following valid reasons:
of other breaches of arrangements you have with
• significant changes in pensions or other relevant UK
BBPLC, including when you owe BBPLC money.
or European legislation;
• significant changes in the regulatory regime or
reporting requirements;
• changes in how the LSE or other markets may work
which may impact on the operation of your SIPP;
• changes in investment dealing or administration
which may impact on the operation of your SIPP;
• to avoid cross subsidisation between individual
Member funds where the provision of certain
services are being charged on an uneconomic basis;
• changes in ownership of our businesses or how
they operate;
• to reflect changes in how the internet operates; and
to remedy manifest errors.
11. 4 Termination of the Dealing Service in relation to your
SIPP will not affect:
• instructions you have already given in relation to
your SIPP (which will be processed in the usual
way); or
• any rights or obligations arising prior to termination.
11.5 The Dealing Service cannot be terminated in relation
to your SIPP until all transactions underway are
complete.
11.6 If BBPLC ends the Dealing Service, AJ Bell will write
to you to seek instructions on the transfer of the
Investments in your SIPP Portfolio and the cash in
your SIPP Cash Account to an alternative registered
pension scheme. Once instructions have been
received that comply with the Scheme Rules and
If we alter our Terms and Conditions for valid reasons
HMRC rules to the reasonable satisfaction of AJ Bell,
that are not specified above and you are not happy
AJ Bell will issue the appropriate instructions to BBPLC.
with those changes, then we will waive the existing
BBPLC will only act on AJ Bell’s instructions.
transfer out fee should you wish to transfer your
SIPP to another registered pension scheme, provided
that the transfer is made within a period of three
months from the date on which you were given notice
8
11.7 BBPLC will send you a valuation of the SIPP Portfolio
as at the date the Service ends.
11.8 If you instruct us to make a transfer from your SIPP to
another pension scheme the transfer must always be
made direct to the trustees or administrators of the
correspondence purposes, your e-mail address and
receiving pension scheme.
your bank details. AJ Bell and BBPLC will not be liable
11.9 These Terms and Conditions as varied, if appropriate,
to you for any loss that may be suffered as a result
will continue until your membership of the Scheme is
of you not receiving correspondence or payments
terminated. If there are any Charges or fees payable
where you have not informed AJ Bell of any change
when membership is terminated, they will remain
in your details and bank account save to the extent
payable. Termination shall be without prejudice to the
such loss arises as a result of our negligence, wilful
completion of transactions already initiated by BBPLC.
default or fraud.
12.6 It is your responsibility to notify AJ Bell of a change of
12. Miscellaneous
personal circumstances that results in you becoming
12.1 Headings are for reference only and shall not affect the
a US national or resident. The Service is only available
construction of these Terms and Conditions.
to UK residents.
12.2 These Terms and Conditions are in addition to, but
not contrary to, the Scheme Rules. In the event of any
13. Data protection
dispute arising out of the construction of these Terms
13.1 AJ Bell and BBPLC are joint data controllers as defined
and Conditions, the K­ey Features Document and the
in the Data Protection Act 1998. All information
Scheme Rules, the Scheme Rules will take precedence.
received by AJ Bell and BBPLC will be dealt with
A copy of the Scheme Rules can be obtained from AJ Bell
in accordance with the provisions of the Data
on request.
Protection Act 1998 or successor legislation.
12.3 AJ Bell or BBPLC may delegate some or all of their duties
13.2 For your protection, to check instructions and to
to a third party they reasonably consider capable of
maintain high quality service standards, BBPLC and
performing the same.
AJ Bell may record and monitor calls and e-mails made
12.4 Your use of the Service is at your sole risk and AJ Bell
to or from BBPLC and AJ Bell.
and BBPLC give no warranty that the Service will
meet all of your requirements although they will try
14. Financial Services Compensation Scheme
to ensure that the service provided is of a proper and
14.1 AJ Bell and BBPLC are covered by the Financial
reasonable quality. In particular, your attention is drawn
Services Compensation Scheme which was set up
to the following:
to provide compensation if firms authorised by the
• AJ Bell or BBPLC may alter the Investment range made
FCA are unable to meet claims made against them.
available through the Service at their sole discretion
The amount of compensation available depends on
and may require the sale of any existing Investments
the type of business and the circumstances of the
that are no longer to be available through the Service;
claim. Further information about the compensation
• the internet may be subject to interruption or failure
through no fault of AJ Bell or BBPLC;
arrangements is available from the Financial Services
Compensation Scheme (www.fscs.org.uk).
• you are responsible for providing and maintaining
the communications equipment (including personal
15. Cancellation rights
computers and modems) to use the Website; and
15.1 You have cancellation rights in the following
• we cannot guarantee that the Website will support
circumstances:
all browser types and be fully compatible with your
15.1.1on the establishment of your SIPP;
communications equipment.
15.1.2on the making of a Transfer to your SIPP;
12.5 You must inform AJ Bell as soon as possible of any
changes to your personal details, including the
address that AJ Bell and BBPLC have registered for
15.1.3on the first occasion when you choose to take benefits;
15.2 On each of the events set out in 15.1 you will have 30
days from the date of the event to cancel, if you wish.
9
15.3 You may exercise your cancellation rights by writing to
payment repaid to the transferring scheme, after
us at:
the effective date that you lapse your cancellation
Barclays
rights. You may also lapse your cancellation rights by
SIPP Administration Team
giving us notice in writing to the address shown in
Trafford House
15.3 above.
Chester Road
Manchester
16. Jurisdiction and law
M32 0RS
16.1 These Terms and Conditions shall be governed by and
By fax to: 0845 543 2601
construed in accordance with the laws of England and
By e-mail to [email protected]
Wales. The parties agree that courts anywhere in the
Quoting your name and SIPP reference number.
United Kingdom (subject to clause 16.2) shall have
15.4 When exercising your cancellation rights you must
confirm whether you wish to cancel your SIPP, a
arise in connection with these Terms and Conditions,
transfer, or your decision to take benefits.
including their creation, validity, effect, interpretation
15.5 If you cancel your SIPP we will repay any contributions
we have received.
15.6 If you cancel a transfer payment we will attempt
to repay the amount received to the transferring
or performance and for such purposes irrevocably
submit to the jurisdiction of courts anywhere in the
United Kingdom.
16.2 The agreement of the parties in 16.1 is concluded
scheme. If the transferring scheme refuses to accept
for BBPLC and AJ Bell’s benefit alone. BBPLC and
the repayment, or only accept it on different terms to
AJ Bell retain the right to bring proceedings against
those applying prior to the transfer, you must provide
you in their absolute discretion in the courts of any
instructions on whether to pay the amount to another
other country which may have jurisdiction, to whose
registered pension scheme. If you have not provided
jurisdiction you irrevocably submits.
your instructions within the 30 day cancellation
16.3 AJ Bell believes these Terms and Conditions are fair.
period we reserve the right to take reasonable
If any part proves not to be legally valid because it is
administration charges from your SIPP until such
unfair, it will not affect the rest.
time as we are able to make the transfer to another
registered pension scheme.
15.7 If you cancel your decision to take benefits you must
return any lump sum or pension income that has
been paid to you in relation to your decision.
15.8 If you do not exercise any of your cancellation rights
16.4 No waiver by AJ Bell of any breach of these Terms
and Conditions will be construed as a waiver
of any subsequent breach of the same or any
other provision.
16.5 These Terms and Conditions only confer rights and
obligations on you, AJ Bell, STL and (or) BBPLC. BBPLC
you will not be able to cancel your SIPP, or any
shall, with AJ Bell’s consent, have the right to enforce
relevant transfer, or your choice to take benefits at
these Terms and Conditions as if they were AJ Bell.
a later date. This will not affect your rights to transfer
The Contracts (Rights of Third Parties) Act 1999 does
your SIPP to another registered pension scheme or,
not otherwise apply to these Terms and Conditions
if applicable, purchase an annuity.
and no-one other than you, AJ Bell, STL and (or)
15.9 If you make an investment within the 30 day
cancellation period you will lapse your cancellation
rights. If you lapse your cancellation rights you will
not be able to cancel your SIPP, or have a transfer
10
exclusive jurisdiction to settle any dispute which may
BBPLC may enforce any term of these Terms and
Conditions.
16.6 The registered office of AJ Bell and STL and their
or verifying the validity of their content with you.
contact details are:
You or the User must notify BBPLC in writing if you
Trafford House
wish to terminate any authority delegated to a User.
Chester Road
BBPLC shall be entitled to continue to receive and act
Manchester
upon instructions from a User until such time as it
M32 0RS
receives from you or such User written notification of
AJ Bell and STL are both incorporated in England
termination of the User’s authority. BBPLC can refuse
under registration numbers 3948391 and 4050222
to continue to accept the instructions of a User for any
respectively.
or no reason by sending written notification to you.
1.4 (i) Where you are provided with an investment service,
The Barclays Stockbrokers SIPP is administered
it is important that you understand the nature and
by AJ Bell, part of the AJ Bell Group.
risks involved. Please read Schedule B carefully, as
it sets out important information on some of the
Telephone: 0333 2027544* Fax: 0845 543 2601
general risks of investing, and the nature and risks
E-mail: [email protected]
associated with particular types of investments.
Website: BarclaysStockbrokers.co.uk
(ii)Unless the Agreement states otherwise, BBPLC
may deal for you in securities the price of which
AJ Bell is registered in England and Wales at Trafford
has been influenced by measures taken to
House, Chester Road, Manchester M32 0RS.
stabilise it. This is particularly the case where
Registered number 3948391. Authorised and
new issues are concerned. You should read the
regulated by the Financial Conduct Authority.
explanation in Schedule C carefully. It is designed
to help you judge whether you wish to invest your
Section 2 Dealing and Investment
administration
funds in such securities.
Terms and Conditions
2. The BBPLC service
1. Introduction
2.1 Cash comprised in your SIPP will be held in the SIPP
1.1 Section 2 of these Terms and Conditions shall govern
the use by you of the Dealing Services.
1.2 AJ Bell and STL delegate authority to you, as a
Member, to give instructions to BBPLC in relation
to your SIPP. You are also authorised to delegate
such authority to a User. References to ‘you’ giving
instructions therefore will always mean that these
instructions are given by you under the authority
given to you by AJ Bell and STL in relation to your
SIPP, or by a User under delegation of authority by
you. The Dealing Services from BBPLC are provided
on an execution-only basis. BBPLC is authorised and
regulated by the FCA.
1.3 Where you have delegated authority to a User, you
Cash Account pending investment.
2.2 Unless restrictions agreed with AJ Bell and advised to
you apply:
• BBPLC will deposit money to and withdraw money
from the SIPP Cash Account;
• sale proceeds will be paid into the SIPP Cash
Account on the settlement date;
• purchase costs will be taken from the SIPP Cash
Account on the settlement date;
• You authorise BBPLC to deduct any Charges from
the SIPP Cash Account.
2.3 Contributions and Transfers can only be deposited
in the SIPP Cash Account via AJ Bell. BBPLC will pay
cash dividends, gilt and bond interest into the SIPP
agree to be responsible for the action of the User
Cash Account when BBPLC receives them from the
and confirm that you understand the risks involved
registrars. These payments will normally be paid into
in delegating authorities to the User. BBPLC shall be
the SIPP Cash Account six Business Days after BBPLC
entitled to rely upon any instructions given by a User
receives them. No interest will be earned on this money
as valid and shall not be responsible for monitoring
before it has been paid to the SIPP Cash Account.
11
2.4 You can view the SIPP Portfolio valuation and make
entity entering administration, liquidation or a similar
share price enquiries using the Website. The value of
procedure. However, it cannot be guaranteed that
the SIPP Portfolio will be delayed by up to 20 minutes.
there would be no loss of Investments in the event of
When you ask for a price quote this price will be
such a failure. Where the Investments are held by a
real-time.
nominee or sub-custodian outside the UK, it may not
be possible under the relevant law of that country for
3. Looking after investments in your SIPP
those Investments to be separately identifiable from the
3.1 Where BBPLC provides its custody service for your
investments of the nominee or sub-custodian or from
SIPP the provisions of this paragraph 3 will apply. In
BBPLC’s investments and accordingly there may be a
providing the custody service BBPLC is responsible
greater risk of loss in the event of any such nominee or
for the safekeeping of the investments of your SIPP
sub-custodian entering administration, liquidation or a
(including dealing with any cash), the settlement on
similar procedure.
behalf of your SIPP of any transactions BBPLC effect
3.4 Wherever possible your Investments (other than
for your SIPP, collecting income, the presentation
bearer stocks and non-registrable investments) will be
for redemption or payment of any securities that
registered in your name or the name of a nominee which
are redeemed or called and otherwise administering
is controlled by:
the investments. BBPLC will take the steps set out
(i) BBPLC,
in this paragraph 3 to ensure the protection of the
(ii) another member of the Barclays Group;
investments of your SIPP.
(iii) a recognised investment exchange; or
(iv)a third party (outside the Barclays Group) with
3.2 BBPLC may employ agents (including members of the
Barclays Group) to perform administrative, custodial and
ancillary services to assist us in providing the services
whom assets are deposited.
referred to in paragraph 3.1 and may authorise them to
registered in the name of a third party or, if this is not
do the same. BBPLC’s liability for all matters delegated
possible, BBPLC but only if:
to a member of the Barclays Group will be unaffected by
the delegation. BBPLC will exercise reasonable skill, care
the Investments are subject to the law or market practice
of a jurisdiction outside of the United Kingdom; and
and diligence in the selection, appointment and periodic
(i) BBPLC considers this to be in your best interests, or
review of the third party and of the arrangements for the
(ii)it is not feasible to do otherwise, because of the
holding and safe keeping of those assets, but will not
otherwise be liable for their acts or omissions except to
nature of the applicable law or market practice.
Registration in the name of a nominee, third party or
the extent your losses result from our negligence, wilful
BBPLC may mean you lose incentives and shareholder
default or fraud.
benefits attaching to the assets. The nominee or third
3.3 BBPLC will keep records that make it clear that your
party may be located in or outside the jurisdiction in
SIPP’s investments are held on behalf of your SIPP and
which BBPLC provides services to you. BBPLC or any
do not belong to BBPLC. Where investments in BBPLC’s
sub-custodian it appoints will hold any documents of
custody are held by a nominee or sub-custodian BBPLC
title (including bearer stocks).
will take reasonable steps to ensure that the records of
the relevant entity make it clear that the investments
are held by or on BBPLC’s behalf for your SIPP and that
12
Where this is not possible, your Investments will be
You consent to your Investments being registered in the
name of BBPLC in the circumstances described above.
3.5 Where investments are securities which are
they do not belong to BBPLC or any such nominee or
uncertificated or are transferable by book entry
sub-custodian. The purpose of this is to make clear
transfer, BBPLC or its sub-custodian may use a
that the event of the failure of any such entity, that
securities depositary, clearing or settlement system,
the Investments are held on behalf of third parties
account controller or other participant in the relevant
and, are not available to creditors in the event of the
system to hold and transfer the investments
(or entitlements to them). The investments or
3.10 In certain circumstances, and subject to applicable
entitlements will be separately identifiable from any
laws and Regulatory Requirements, BBPLC may cease
investments or entitlements held in the same system
to treat any assets held on your behalf as client
for our account.
assets, and (i) liquidate these assets, at market value
3.6 Where BBPLC considers it appropriate and in accordance
and pay away the proceeds or (ii) directly pay away
with regulatory requirements the investments in
these assets, in either case, to a registered charity of
your SIPP may be pooled with those of other clients
its choice. BBPLC may only do this if:
(including other clients of sub-custodians) in an
(a)BBPLC has held your assets for at least twelve
omnibus account. In that case individual client
years and there have been no instructions
entitlements may not be identifiable by separate
received by BBPLC in relation to the assets during
certificates, or other physical documents of title, entries
the twelve years immediately before being paid
on the register or equivalent electronic records. If there is
away to the registered charity ; and
an irreconcilable shortfall following any default by BBPLC
or BBPLC’s sub-custodian your SIPP may not receive its
full entitlement and may share in the shortfall pro-rata
b)BBPLC has taken reasonable steps to trace you
and return the assets to you.
If you contact us after BBPLC has paid away your
among BBPLC’s other clients or the sub-custodian’s
assets, BBPLC will return a sum equal to the value of
other clients. This paragraph is for information purposes
your assets at the time they are liquidated or paid away.
and is not intended to limit any claim you may have
against BBPLC in respect of a default.
3.11 In certain circumstances, and subject to applicable
3.7 BBPLC will collect and receive all income, interest
laws and Regulatory Requirements, BBPLC may cease
distributions and other payments in respect of the
to treat any money held for you as Client Money, and
investments of your SIPP.
balances held on your behalf (when those balances
3.8 BBPLC may arrange for some of the investments of
remain unclaimed) and pay away the money to a
your SIPP to be held outside the UK. In that case,
registered charity of its choice.
different settlement, legal and regulatory systems
BBPLC may only do this if:
will apply in the overseas jurisdiction from those that
(a)there has been no movement on your balance
apply in the UK. Different practices for the separate
for a period of at least six years, in spite of any
identification and segregation of clients’ investments
payments or receipts of charges, interest or
will also apply.
similar items; and
3.9 BBPLC reserves the right not to hold, or to cease
(b)where your balance is more than £25, BBPLC has
to hold or register in Nominee name certain
taken reasonable steps to trace you and return
investments delivered to it in relation to your SIPP.
the money to you; or
This right includes the right to refuse to accept or to
(c)where your balance is £25 or less, BBPLC has
cease holding any investments and/or documents of
made one attempt to return your money using
title and the right to transfer your SIPP holding out
the most up-to-date contact details it holds for
of CREST. BBPLC will try to warn you in advance of
you and not received a response from you within
exercising this right. When BBPLC exercises this right,
28 days.
BBPLC will try to ensure its decision is reasonable and
You agree that BBPLC may release Client Money
BBPLC will comply with any laws and regulations that
held on your behalf from your account under the
apply. BBPLC will not be liable to you in any way if
circumstances set out in (a) and (b) above. If you
BBPLC refuses to follow your instructions or if BBPLC
contact us after BBPLC has paid away your Client
ceases holding any Investments and/or documents of
Money balance, BBPLC will return a sum equal to the
title in relation to your SIPP.
balance paid away to charity.
13
4. Corporate actions
4.1 It is essential that you provide BBPLC with your
4.9 BBPLC will credit the SIPP Portfolio with new stocks and
shares paid in relation to Investments as a result of any
instructions in relation to a corporate action before
corporate action, as long as they are eligible to be held
the deadline that BBPLC notifies to you expires. This
in your SIPP and BBPLC will credit these within three
deadline may expire before the deadline set by the
Business Days of issue from the company registrars.
company or their registrars. This is to ensure that
4.10 BBPLC will pay any cash due to your SIPP from any
BBPLC has a reasonable amount of time to process
corporate action to the SIPP Cash Account. BBPLC will
instructions in relation to the corporate action for all
normally pay this cash to your SIPP six Business Days
its clients.
after BBPLC receives it from the company registrars.
4.2 It is your responsibility to ensure that there are
No interest will be earned on this cash until BBPLC
sufficient cleared funds in the SIPP Cash Account to
has paid it to your SIPP Cash Account. If there is any
take up any corporate actions.
delay in paying this cash into your SIPP Cash Account
4.3 If BBPLC has been unable to contact you, or BBPLC
beyond this period BBPLC will start calculating interest
does not receive instructions from you by the deadline
from the latest date the cash should have been paid
advised in relation to a corporate action, BBPLC will
to your SIPP Cash Account. BBPLC will not pay interest
select the basic default option specified by the company
of less than £5.
or registrar concerned, or in the case of a rights issue,
subject to clause 4.13, allow the rights to lapse.
4.11 If a company has a bonus or other similar issue,
BBPLC will automatically credit the SIPP Portfolio with
4.4 Sometimes BBPLC will only be made aware of these
the new Investments or the cash proceeds, unless
events a short time before they happen. If this is the
there are restrictions in the terms of the corporate
case and BBPLC does not have time to obtain your
action that prevent BBPLC from participating.
instructions, BBPLC will select the default option that
is specified by the company or registrar concerned.
4.5 Sometimes the terms of a corporate action will
4.12 If there is a take-over, conversion or other offer BBPLC
will contact you, as long as there is enough time to
do so. BBPLC will then follow your instructions. If
require an election to be made on behalf of BBPLC’s
there is an unconditional take-over and BBPLC has
Nominee’s entire holding in a company on an ‘all or
not received instructions from you, BBPLC will contact
nothing’ basis. In these circumstances, BBPLC may
you to confirm the offer. If BBPLC has been unable to
not be able to get instructions from all its clients
contact you or BBPLC does not receive instructions
holding shares in that company or were it able to
from you by a given date, BBPLC will accept the basic
do so, might not be able to act in accordance with
offer for you.
those instructions. BBPLC reserves the right in these
4.13If a company has a rights issue, as long as there is
circumstances not to offer the option to you. BBPLC
enough time to do so and the terms of the issue
will use reasonable efforts to give you an alternative
permit it, BBPLC will contact you and ask whether you
option but BBPLC cannot guarantee that this will
want to:
match the option offered by the company.
• take up the rights;
4.6 If there is a scrip dividend, BBPLC will follow
any instructions that you have provided on
• sell the rights; or
• do nothing (i.e. allow the rights to lapse).
your application.
4.7 If there is an enhanced scrip dividend BBPLC will ask you
BBPLC will then follow your instructions.
to decide whether to take the dividend in shares or in
cash. If BBPLC does not hear from you, BBPLC will take up
BBPLC will automatically accept nil-paid rights for your
the default option, subject to the provisions of clause 4.5.
SIPP, provided the terms of the rights issue permit it
4.8 If a company offers a Dividend Re-investment
Programme (DRIP), BBPLC will always take the cash
dividend for you.
14
to do so and subject to the Scheme Rules and any
rules of HMRC.
4.14 Some corporate actions permit you to subscribe
4.21 If BBPLC is notified of a class action or group litigation
for additional shares in a company. In these cases
order that is being proposed or taken concerning
applications to subscribe will be made on behalf of
Investments that the Nominee is holding, or has
BBPLC’s Nominee’s entire holding in that company.
held in relation to your SIPP, BBPLC will be under no
The additional shares will be allocated to the Nominee
obligation to inform you or otherwise act on that
on the basis of that holding. BBPLC will then allocate
notification.
the shares amongst all the clients involved on a
4.22 Unless BBPLC agree otherwise with you, where BBPLC
pro-rata basis. The shares allocated to your SIPP may
hold Investments which give you rights in relation to
be different to what you would have received if your
a company, including if BBPLC become aware of any
SIPP had been holding the shares directly. It may be
proposed class action or group litigation:
that on some occasions no shares are allocated to
your SIPP.
4.15 Nil paid shares (such as those from rights issues)
in relation to these matters;
may require further payments, known as ‘calls’ or call
payments. BBPLC will write to you before the due date
(i)BBPLC will not be responsible for taking any action
(ii)BBPLC will not be obliged to notify you or obtain
your instructions in relation to these matters;
(iii)if BBPLC do seek but do not receive your
to tell you how much needs to be paid. BBPLC will
instructions by any deadline stated by us,
collect any additional payment from the SIPP Cash
BBPLC will take such action as BBPLC consider
Account.
appropriate (including taking no action); and
4.16 Any Investment received in relation to your SIPP as
(iv)if BBPLC seek and receive your instructions by
a result of a take-over, conversion or other offer will
any deadline stated by us, BBPLC will take such
be rounded down to the nearest whole unit. BBPLC
action as BBPLC reasonably consider appropriate,
will retain any amount remaining and will pay this
including action that does not accord with your
amount, together with similar amounts retained
instructions where following such instructions is
relating to other accounts, to a charity.
not reasonably practicable.
4.17 In the case of a redemption of an Investment in your
SIPP, BBPLC will pay to the SIPP Cash Account the
amount received from the redemption and let you
know that BBPLC has done this.
4.18 If shares have to be registered outside of the Nominee
4.23 If you ask us to vote as proxy for you, BBPLC may
refuse or agree on payment of a fee.
4.24 Where your Investments are pooled with those of
third parties, distribution of entitlements to any
benefits or entitlements arising from corporate events
as a result of a corporate action, a charge may
will be allocated pro rata. Fractions of entitlements
apply if this is indicated in the Charges published on
arising from this process will be rounded down to
the Website.
the nearest whole unit or share. The accumulated
4.19 If your SIPP’s Investments are pooled with those of
amount of any undistributed entitlements arising
other BBPLC clients you may find that the options
from this process will be sold and the proceeds
available in relation to those Investments during
allocated pro rata. However, where this would result
a corporate action are different from what you
in an allocation to you of less than such amount as
would have received if the Investment were held
BBPLC may designate from time to time, BBPLC may
directly. BBPLC reserves the right to apportion the
accumulate with other similar amounts and pay away
total entitlement received in respect of the pooled
to a charity of its choice. Pooling may mean that
Investments between your SIPP and the other clients
where an allocation or share issue has rights weighted
involved.
towards smaller investors, your allocation may be less
4.20 BBPLC will treat any fractional entitlement in the same
than it otherwise would have been.
way as the company concerned, acting through its
registrars.
15
5. Dealing
appropriate course of action. For the avoidance of
5.1 When BBPLC executes transactions on behalf of your
doubt, this may include the prioritisation of another
SIPP BBPLC will normally be required to provide best
execution factor (such as speed or certainty of
execution and when BBPLC do so BBPLC will comply
execution) over the best market price when it is in
with its Execution Policy.
your SIPP’s interest to do so.
5.2 A summary of BBPLC’s execution arrangements
is attached as Schedule A. BBPLC will consider
execute transactions when BBPLC acts as agent on
the continued placement of orders by you to
behalf of your SIPP. When BBPLC does so, BBPLC
constitute your continued consent to our execution
will take reasonable steps to ensure that the dealing
arrangements as may be in effect from time to time.
arrangements of the parties BBPLC places reliance
5.3 When deciding where to execute a deal on behalf of your
on are sufficient to provide appropriate execution
SIPP, BBPLC may transact outside of a regulated market
quality. When passing orders to a broker outside of
or multilateral trading facility. BBPLC will do so when
the European Economic Area (“EEA”), you should note
BBPLC believes it is in the best interest of your SIPP to
that brokerage standards in such markets may not
transact in this way, for example either due to the pricing
be equivalent to those in the EEA. In these markets
available or where sufficient liquidity is not available on a
BBPLC will take reasonable care to identify that
regulated market or multilateral trading facility.
the brokers used provide an appropriate quality of
5.4 Please note that BBPLC may accept specific dealing
instructions from you. Where BBPLC does so and is
execution.
5.8 When BBPLC deals for you, BBPLC may combine your
able to execute in accordance with such instructions,
order with its own orders and orders of other clients
it may not be possible for BBPLC to obtain the best
if BBPLC believes that aggregation can generally
result that would otherwise be available to you at the
be expected to work to the benefit of all parties
time of dealing.
concerned. However on some occasions aggregation
5.5 When BBPLC executes for your SIPP BBPLC will consider
may disadvantage your SIPP. When BBPLC combines
a number of factors in deciding where to route your
orders or when an order cannot be executed as a
order for execution. These factors may include total
single transaction, BBPLC may execute it in a series
consideration payable (inclusive of deductions relating
of deals and confirm to you the aggregate of these at
to third party brokerage or other charges), speed of
an average price. BBPLC may allow brokers who deal
execution, likelihood of execution and settlement, and
on behalf of your SIPP to combine deals with their
the size and nature of your order. BBPLC will generally
own and their clients’ deals subject to applicable laws
execute transactions with reference to the best total
and regulations.
consideration identified and available to BBPLC at the
5.9 When BBPLC combines your order with another
point of dealing unless there is a reason why it is not in
BBPLC will allocate the transaction in accordance
your SIPP’s best interest to do so.
with its allocation process. When the combined order
5.6 BBPLC’s assessment of the relative importance of
cannot be filled, BBPLC will generally allocate to all
the execution factors may vary from deal to deal,
participants on a pro rata basis, unless it may not be
depending on the circumstances of the trade
in your SIPP’s interest to receive a reduced allocation
and the prevailing market conditions. When using
(for example if BBPLC view the deal is not economic
automatic order routing technology, BBPLC’s dealing
when considered against dealing costs), or BBPLC are
process prioritises the best price net of dealing
otherwise unable to do so by force of law.
costs. In circumstances where an order cannot be
16
5.7 BBPLC may place reliance on third party brokers to
5.10 If you place a limit order with BBPLC in respect of
executed automatically, it will be dealt manually by
a share admitted to trading on a regulated market,
BBPLC’s dealing professionals, who will consider
and BBPLC is not immediately able to execute at the
the circumstances of each deal and decide on the
relevant price, BBPLC will publish the amount of stock
and price available in order to increase its chances of
5.16 Limit Orders can be placed online at any time or by
execution. BBPLC will not publish orders which are
telephone during BBPLC Client Contact opening hours
large in scale as defined by the FCA. You may choose
specified on the Website. Foreign dealing Limit Order
to instruct us not to publish your unexecuted order
instructions can only be given by telephone.
when you place a deal with BBPLC.
5.11 BBPLC has the right to refuse to accept any
5.17 Some Limit Orders placed by telephone will be
subject to a £3,000 or currency equivalent minimum
instruction given by you for any Dealing Services
value and all Limit Orders placed by telephone will be
and/or transaction for any legitimate reason, for
subject to standard telephone commission rates.
example, where it reasonably considers that to
5.18 Limit Orders will only be carried out if a price equal to
execute the Instruction would result in a breach of law
or better than your specified limit is available. If the
or regulation.
specified price is not reached during this time, your
5.12 Whilst the Market is open you can request a real-time
quote and place a deal at that price. If you deal using
the Website the price quote will be held for a period
order will expire. It is your responsibility to confirm
whether this order has been carried out.
5.19 Orders will expire in line with your instructions and
of 15 seconds. After this period has expired, you
be confirmed to you at the time of placing the order
can request a new price quote. We may restrict the
and will remain in a queue for dealing until the date
number of quotes you can request on a daily basis.
specified for expiry.
Deals will be carried out as soon as possible for the
5.20 Once you have placed your At Best or Limit Order,
relevant market at the best price available to us at the
you may be able to cancel or amend your instructions,
time of dealing.
as long as the order has not been carried out or is not
5.13 When the Market is closed you can place an online
in the process of being executed and BBPLC accepts
order to buy or sell selected stocks, subject to the
the cancellation or amendment. If you amend your
amount in the SIPP Cash Account available for
order it will be dealt according to the time of receipt
dealing. You have the option of specifying a `limit
of these new instructions.
price’. However, if you do not leave a limit price the
5.21 When BBPLC accepts your order, BBPLC will use its
order will be dealt `At Best’. To ensure orders placed
reasonable endeavours to follow your instructions
can be dealt:
and will generally carry out orders by reference to
• the SIPP Cash Account and SIPP Portfolio holdings
time of receipt. However, all orders for the same stock
will be adjusted to take into account the pending
and with the same limit price (if applicable) received
order; and
outside of normal Market hours will be treated as
• for an At Best Order if you are selling a stock you
will only be able to specify the quantity to be sold
or if you are buying a stock the cash amount to
be invested.
5.14 BBPLC will endeavour to carry out At Best Orders as
having been received at the commencement of
trading the following working day.
5.22 The demand for the Service and Market conditions
may fluctuate. BBPLC does not accept any
responsibility for any actual or potential financial loss
soon as is reasonably practicable, dependent on market
or expense you incur if for any reason (other than its
conditions. If your order is deemed to be outside the
negligence, wilful default or fraud) there is a delay or
normal market size for the security BBPLC may not act
change in market conditions before execution of your
upon your instruction, in which case, it will attempt to
order is complete.
contact you using the details that you have supplied.
5.15 If, after an order given by you is placed with the
Market, BBPLC is asked by the Market to cancel any
dealings in the relevant stock, BBPLC will not be liable
5.23 BBPLC will ask you some security questions when you
deal by telephone, and BBPLC may refuse to deal for
you if you cannot answer them correctly.
5.24 BBPLC will not accept your instructions to deal by
for any loss save to the extent it arises as a result of its
fax or email or any form of communication via the
negligence, wilful default or fraud.
Internet other than through the Website.
17
5.25 Instructions can only be processed during normal
working hours even though the Dealing Service may
most circumstances your deal will only be carried out
within the official opening hours of the Market.
be available outside these hours. This means that
5.36 There may be occasions when you want to give
your instructions may not always be processed as
BBPLC a dealing Instruction when the Market is
soon as BBPLC receives them. BBPLC will do what
closed. BBPLC will usually accept such instructions,
BBPLC reasonably can to carry out your instructions
but will not present them for execution until the
as soon as BBPLC receives them.
earliest opportunity after the Market next opens. If
5.26 You can normally use the Dealing Service at the times
you do not receive the ‘DEALT’ confirmation during
specified in BBPLC’s literature and on the Website.
Market hours, this means that your order has not
Routine maintenance or demand on the systems may
been dealt automatically and will be dealt by BBPLC’s
mean that is not always possible.
dealing team as soon as practicable.
5.27 BBPLC will record the date and time that you place an
Instruction and all relevant bargain details.
5.28 If BBPLC reasonably thinks you may not have
5.37 BBPLC will not be liable to you for any difference in
the value quoted at the time you place the Instruction
and the time the Instruction is executed save to the
authorised an Instruction, BBPLC will try to check it.
extent any loss arose as a result of its negligence,
BBPLC may refuse to act on it or take steps to reverse
wilful default or fraud.
it. BBPLC will not be responsible for loss to you as long
as BBPLC has acted reasonably.
5.29 BBPLC reserves the right to withdraw the facility to
deal through the Website.
5.30 You can only deal for your SIPP using the cash
available in the SIPP Cash Account.
5.31 If the SIPP Portfolio benefits from investments
5.38 If BBPLC negligently fails to accurately carry out your
Instruction, BBPLC will ask you to choose one of the
following options:
• Instruction to buy an Investment: BBPLC will either
(1) buy investments to put your SIPP in the position
that it would have been in if BBPLC had carried out
your Instruction correctly, or (2) pay into the SIPP
or dividends denominated in a foreign currency,
Cash Account the difference between the price that
foreign exchange rates may affect the value of your
should have been paid for the Investment, and the
Investments and any income.
price that was actually paid;
5.32 When you deal online it is your responsibility to
• Instruction to sell an Investment: BBPLC will either
ensure all details are correct prior to execution.
(1) pay into the SIPP Cash Account the difference
5.33 In relation to foreign securities there may be a
withholding tax on dividends.
5.34 You should note that:
• you may not always have access to the same levels
between the price that was obtained on the sale
and the price that should have been obtained if
BBPLC had carried out your Instruction correctly,
or (2) if the value of the Investment has risen from
or types of functionality across all the channels by
the price that should have been obtained, the
which BBPLC provides the Dealing Service;
Investment, can be retained in your SIPP Account so
• balance, holding and valuation information
you can sell it at the higher price.
may be updated at different times for BBPLC’s
electronic channels, and you should always take
6. Settlement and charges
into account any previous transactions made or
6.1BBPLC charges fees and commissions for the Dealing
instructions given;
• when using any of the electronic channels, you
the Website. In addition, BBPLC may also charge for
are responsible for paying any telephone or
any expenses an Affiliate incurs while administering
transmission charges.
Investments and cash for your SIPP Account.
5.35 Whilst you can access your SIPP and place dealing
instructions in BBPLC’s published opening times, in
18
Service as set out on the Rates and Charges page of
These additional charges will be paid from the SIPP
Cash Account.
6.2If you deal using the Website, then online commission
6.8 On notification of your death, we will not, where
rates will apply. If you deal by telephone, telephone
you have authorised the payment of fees from your
commission rates will apply. The commission will be
SIPP Account, pay any further invoices. If, at the time
deducted from your SIPP Cash Account.
of notification of your death, any third party is due
6.3You must make sure that there is enough money
any fees from the SIPP Account, such fees must be
available in the SIPP Cash Account to cover payment
of all Charges and settlement costs when they
recovered direct from your estate.
6.9 Where BBPLC is a member or participant of
are due.
commercial settlement systems, it may place or
6.4If the SIPP Cash Account does not have sufficient
execute delivery versus payment (“DvP”) transactions
funds for your transactions or to pay the Charges on
time, AJ Bell reserves the right to instruct BBPLC to:
as your agent.
6.9.1 You agree that where BBPLC executes DvP
• deduct the monies owing from the sale of
transactions through commercial settlements
investments held in the SIPP Portfolio;
systems for you, BBPLC will rely on the DvP exemption
• sell such SIPP Investments, as we may determine at
to the Client Money Rules in line with Regulatory
our discretion, subject to FCA rules, and if the sales
proceeds are not enough to meet the Charges, you
Requirements as follows:
a)where you instruct BBPLC to purchase
will be liable to AJ Bell for the difference;
Investments, BBPLC will do so on the basis
6.5Government stamp duty, stamp duty reserve tax
that the Investments will be due to you within
(SDRT), VAT or other applicable taxes will be charged
one business day of you fulfilling your payment
at the prevailing rates. If these rates change, the new
obligations. BBPLC will not treat these sums
rates will be applied straight away. Neither AJ Bell
as client money under the Client Money Rules,
nor BBPLC will normally write to you to inform you of
unless the trade does not settle by the end of the
any change.
third business day after you fulfil your payment
6.6BBPLC is a member of the LSE but not of any other
obligation. BBPLC will treat the Investments it
stock exchange so BBPLC may have to deal with
receives on settlement in line with the custody
an agent. Any charges incurred by dealing with an
services of this Agreement; and
agent will be shown on your contract note along with
b)where you instruct BBPLC to sell securities,
BBPLC’s dealing commission.
BBPLC will do so on the basis that the sales
6.7 Foreign deals can be settled in either sterling or
proceeds are due to you within one business
foreign currency. If settled in sterling, your contract
day of you fulfilling your delivery obligation to
note will contain details of the transaction and the
BBPLC. BBPLC will not treat these Investments in
foreign exchange rate used to convert the currency
line with the custody services of this Agreement,
to sterling. BBPLC will receive remuneration from
unless the trade does not settle by the end of the
an associate for this conversion. The basis of this
third business day after you fulfil your delivery
charge is available on request. Dealing commission
obligation. BBPLC will treat the monies it receives
will be shown in Sterling. If settled in foreign currency,
on settlement in line with the provisions for
your contract note will contain details of the deal in
holding your money under this Agreement.
currency, including our dealing commission. Your
7. Agents
currency account will be debited with the total cost
7.1BBPLC may employ and continue to use agents or
of your deal on the settlement date that is detailed
Affiliates to provide some or all of the Dealing Services.
on your contract note. You must ensure you have
BBPLC will exercise reasonable skill, care and diligence in
sufficient funds in your currency account to complete
selecting, using and monitoring them, but will not their
any transactions. As we can only carry out foreign
acts or omissions except to the extent your losses result
exchange transactions, we cannot deal or settle using
from BBPLC’s negligence, wilful default or fraud.
cross currency transactions.
19
8. Your money
BBPLC and held as Client Money on your behalf
8.1BBPLC will work out interest daily on money in the
until final settlement occurs; or
SIPP Cash Account at its published rates. Interest will
be paid in gross on the last Friday, which is a Business
investment platforms and, to provide you with
Day, of each month. Interest will be paid without
services, pays your money for a purpose other
deduction of basic rate tax. Interest paid for cleared
than settlement of a transaction instead of
balances in currency accounts is paid on a quarterly
holding your money as banker.
basis providing there is a minimum balance of £1,000
8.2.3 There may be specific exceptions to the
currency equivalent. See indicative interest rates
circumstances referred to above where BBPLC will
within Rates & Charges on our Website.
cease to hold your money as Client Money. Examples
8.2 Your money will be held in an account with Barclays
Bank PLC as your banker, not as your trustee or agent,
of these circumstances include where:
and the Client Money Rules will not apply.
your money will not be subject to the Client Money
title transfer collateral agreement;
BBPLC agrees to accept your request to opt out
distribution under the Client Money Rules. However,
of the Client Money Rules;
scheme, as set out in Clause 15.
8.2.2 There may be circumstances where BBPLC will
(d)BBPLC makes payments to a third party as part
your money as trustee in accordance with the Client
its procedures for dealing with dormant funds in
Money Rules. In these circumstances, your Client
accordance with the Client Money Rules.
8.3 BBPLC may allow another person such as an exchange,
another member of Barclays Group or an Approved
clearing house or intermediate broker to hold or control
Bank in accordance with Regulatory Requirements.
your money for the purposes of transactions for your
Examples of these circumstances include where:
SIPP.
(a)you have instructed BBPLC to undertake
8.4 Where BBPLC effect a non-UK investment transaction
on behalf of your SIPP or income is paid on non-UK
(i) BBPLC settles transactions with a third party (such
investments, your money may have to pass through an
as a broker or custodian) outside of a commercial
overseas bank or an intermediate broker, a settlement
settlement system;
agent or counterparty located outside the UK. The legal
(ii)BBPLC settles transactions within a commercial
and regulatory regime applicable to that money will
settlement system via a third party through an
be different from the UK regime. If there is a default,
account held by the third party at the commercial
your SIPP’s position may be worse than in the UK and
settlement system and not through a Barclays
the bank concerned may exercise a right of set-off
member or participant account, or an account in
or counterclaim in respect of money owed on any of
which Barclays has sponsored access; or
BBPLC’s other accounts. Similar considerations apply
(iii)BBPLC attempts to settle your transaction on a
to the use of intermediate brokers and settlement
delivery versus payment (“DvP”) basis through
agents outside the EEA. Money may not be protected as
its own member or participant account at a
effectively as it would be if held solely within the EEA.
commercial settlement system, and where the
20
becomes due and payable to BBPLC; or
of a transfer of part of its business or in line with
securities transactions on your behalf and:
(c)money BBPLC holds for you as Client Money
cease to hold your money as banker, and will hold
Money will be held in a client account with BBPLC,
(b)you are categorised as a professional client and
Rules, so you will not be entitled to share in any
your deposits may be covered by a deposit protection
(a)BBPLC agrees to take collateral from you in
relation to a transaction you undertake using a
8.2.1 In the event of BBPLC’s administration or insolvency,
(b)BBPLC has arrangements with third party
8.5BBPLC reserves the right to reclaim from your SIPP
transaction does not settle on the intended
any payment or Investment which has been paid or
settlement date. In this case, the value of your
transferred to your SIPP in error. These must be returned
transaction will be segregated on the third day
to BBPLC, or BBPLC may take these from the SIPP
following fulfilment of your delivery obligation to
Portfolio. If BBPLC writes to reclaim them, BBPLC will give
you at least 10 Business Days before BBPLC makes the
it is not. If BBPLC notices that there is an error in the
claim. BBPLC will then send them to the person who is
documentation that BBPLC has sent to you in relation
entitled to them.
to your Instructions, BBPLC will re-issue correct
8.6BBPLC reserves the right not to pay to your SIPP Account
documentation. You agree to return the original
amounts less than £5 or any other minimum amount
incorrect documentation to BBPLC if so requested,
that BBPLC may notify you of from time to time in
and to repay any overpayments promptly.
accordance with Clause 10 of Section 1.
8.7BBPLC may debit Charges and fees properly due and
10.2You agree not to reproduce, re-transmit, disseminate,
sell, distribute, publish, broadcast, circulate or
payable from, and deposit dividend income to, the SIPP
commercially exploit the Data (unless BBPLC has
Cash Account.
agreed in writing that you could) and not use the
Data, or the Website, for any unlawful purpose.
9. Restrictions
9.1BBPLC will usually be acting as agent when buying
10.3You are responsible for all dealing Instructions placed
using your Security Codes. You must make sure
and selling for your SIPP Portfolio. BBPLC will not act
that these details remain confidential. You must not
as principal unless it is in your SIPP’s and its interests
disclose them to anyone. For the avoidance of doubt,
to do so. If BBPLC acts as a principal you will be
this shall include BBPLC and AJ Bell employees.
notified at the time of dealing.
9.2BBPLC will not provide stock market or tax advice.
10.4BBPLC is entitled to treat as genuine and duly
authorised and may act on all instructions placed
The decision to buy, sell or hold Investments will be
using your Security Codes, including deals that
your responsibility. If BBPLC give you information
have been placed in error or duplicated unless
on investments or markets such as research
it is manifestly clear to the person acting on the
recommendations, market trends, investment analysis
instruction that this is the case.
or commentary on the performance of selected
companies this should not be viewed as a personal
recommendation or advice.
9.3 Once BBPLC has received your instructions you will
10.5You agree to let BBPLC know as soon as possible if you:
• lose or disclose your Security Codes, or if they are
stolen; or
• find out that someone has used your Security
not normally be able to change them, unless you have
Codes, online account, or any of the Data without
left a Limit Order or At Best Order that has not yet
permission.
been executed.
9.4BBPLC may receive remuneration from fund managers
• Following notice, BBPLC will suspend your access
to the Service until your new Security Codes
when you deal in Unit Trusts and OEICS and other
have been set up and communicated to you.
forms of UK funds. Where BBPLC receives this,
Neither AJ Bell nor BBPLC shall be liable for any
BBPLC will tell you about it on your contract note.
unauthorised use of your Security Codes or any loss
Cancellation rights do not apply to orders placed
that results save to the extent it arises as a result
through BBPLC.
of their negligence, wilful default or fraud. In any
9.5BBPLC may keep any share of any commission paid
event, you will not be held responsible for deals
as a result of transactions BBPLC carry out in relation
placed using your Security Codes if they have been
to your SIPP including transactions made through
placed after midday on the next Business Day after
an Affiliate or third party. Details of any commission
you have notified BBPLC.
BBPLC has kept can be obtained on request.
9.6BBPLC will not exercise voting rights on your shares.
10.6You agree to let BBPLC know as soon as possible if you:
• do not receive confirmation by post that BBPLC has
carried out your dealing Instructions within three
10. Your responsibilities
10.1You agree to check that the information on contract
notes, statements and other Communications is
Business Days of you placing them;
• receive confirmation of a deal which you did
not place.
correct and to let BBPLC know as soon as possible if
21
10.7 You must ensure that, when purchasing an
• details on the balance of your SIPP Cash Account.
Investment, you have sufficient cash available to pay
Currency account statements will be sent on a
in full for the Investment on the settlement date.
quarterly basis showing all the movements in each of
If you do not, BBPLC may, but are not obliged to,
your currency accounts.
take one or more of the following actions (“Default
11.5 A periodic statement will not include any
Actions”):
measurement of performance. The statements are
(a)if practicable, not execute the transaction;
based on instructions received from you, up to and
(b)settle the transaction on your behalf at our
including the Business Day before the date of issue.
expense and recover that expense from you;
(c)sell, at the prevailing market price, sufficient of the
You can also view this information via the Website at
any time or ask BBPLC for an up-to-date statement at
Investments for which settlement is outstanding
any time. BBPLC will inform you if it intends to change
to recover the amount of any shortfall; and
how it reports this information to you however you
(d)sell, at the prevailing market price, sufficient of
will retain the right to request BBPLC to continue to
your other assets to recover the amount of any
shortfall.
provide transaction confirmations for each trade.
11.6 BBPLC will provide AJ Bell with a consolidated tax
certificate for your SIPP Account once a year.
11. Keeping you informed
11.1BBPLC will send Communications to you using one of
11.7 BBPLC will send you a contract note each time BBPLC
buys or sells Investments for your SIPP. BBPLC will
the following methods:
do this by the end of the Business Day after the day
• in writing (i.e. by post, fax or email);
that BBPLC deals. The contract note will show the
• verbally by telephone;
amount your SIPP Account will receive or pay on
• by posting the Communication onto the Website.
the settlement date, including charges. You agree to
11.2BBPLC will assume that you have received a
check that the information on the contract note is
Communication from BBPLC:
correct and to let BBPLC know as soon as possible if it
• two days after BBPLC posts it to you, if it is sent to
is not.
you by post;
• immediately upon sending, if it is sent to you by fax
and BBPLC has received confirmation of successful
transmission;
• when it is received by your internet service provider,
if it is sent to you by email;
• when it is posted onto the Website.
11.3You can choose to receive email acknowledgements
when there are any status changes on your orders.
BBPLC will send these to the email address BBPLC
11.8 If you place an order via the Dealing Service:
• using BBPLC’s Quote & Deal facility, you will receive
an electronic deal confirmation immediately; or
• using other types of order e.g. Limit Order, At
Best Order, you will receive an order confirmation
immediately, and you can choose to receive
an e-mail alert confirming when the deal has
been placed.
You will also receive a paper contract note.
11.9BBPLC does not accept responsibility for any
holds for you, unless you nominate a different email
documents which go missing in transit to and from
address when you place your order.
its office save to the extent this arises as a result of its
11.4At least every six calendar months BBPLC will send
negligence, wilful default or fraud.
you a statement that lists:
• what Investments are held in your SIPP Portfolio;
12. Circumstances beyond our control
• what Investments you have bought and sold since
12.1BBPLC provides you with Data through the Dealing
your last statement;
• the current value of the Investments held in your
SIPP Portfolio (using mid‑market prices);
22
Service. BBPLC tries to ensure that the Data that
BBPLC provides is accurate and up-to-date. You
are responsible for evaluating the Data and for any
decisions that you make as a result. Where BBPLC
13.2BBPLC is part of a global financial institution. Future
sources the Data from third parties, the views
developments in the structure or operation of BBPLC’s
expressed will not be AJ Bell’s or BBPLC’s but those
group’s businesses may result in BBPLC needing to
of the third party concerned. BBPLC tries to ensure
change the provider of a part or all of the Dealing Service
that those sources of Data are reputable. However,
to one of its Affiliates. BBPLC will be entitled to make
neither AJ Bell nor BBPLC endorses those views.
such a change as long as it reasonably considers the
BBPLC does not provide any guarantees about the
Affiliate capable of providing the service to at least the
accuracy of the Data that third parties provide and
standard of BBPLC by giving you reasonable advance
neither AJ Bell nor BBPLC accepts any responsibility
notice of it. After you have received notice of this change,
for any loss or damage that you suffer in connection
your use of the Dealing Service will be acceptance of it.
with them. BBPLC will not be held responsible for
any errors, failures, delays or distortions in the
14. Conflicts of interest
transmission of information or instructions, either
14.1. The complexity and size of BBPLC’s business, BBPLC’s
from you to BBPLC, or from BBPLC to you and BBPLC
position within the wider Barclays Group, and
will not be responsible for the failure of security of
BBPLC’s reliance on third parties at various points
such transactions.
can occasionally lead to situations where BBPLC’s
12.2BBPLC will act on instructions that BBPLC reasonably
believes to come from you.
12.3Neither BBPLC nor its Nominee will be responsible
for any claims loss or liability in connection with
interests and/or those of BBPLC’s staff conflict with
your interests. Equally, your interests may occasionally
compete with those of other BBPLC clients.
14.2 Where BBPLC are aware or made aware that BBPLC
these Terms and Conditions, including when acting
are faced with a situation of competing interests,
in accordance with your Instructions, except where
BBPLC will undertake all reasonable steps to protect
a liability is incurred as a result of BBPLC’s own
your SIPP’s interests and ensure fair treatment of
negligence, wilful default or fraud or that of its
your SIPP, in line with the duties BBPLC owe you as
Nominees or its Affiliates.
our client. To this effect, BBPLC have a framework in
12.4Neither AJ Bell nor BBPLC is responsible for products
place to handle conflicts of interest, such that BBPLC
or services provided by third parties, even if you
act with an appropriate degree of independence from
access them through the Service. Neither AJ Bell nor
BBPLC’s own interests when transacting with your
BBPLC endorses these products or services. You are
SIPP or dealing on behalf of your SIPP. This framework
responsible for evaluating them.
comprises of:
(a) a policy that specifies the requirements for staff to
If you decide to buy any of these products or services,
identify, prevent and manage conflicts of interest,
you do so at your own risk. Neither AJ Bell nor BBPLC is
including ongoing monitoring of the effectiveness
party to any dealings that you have with third parties.
of the arrangements designed to protect clients’
interests in the face of conflicts;
13. General
13.1If BBPLC enters into liquidation, receivership or
administration:
• funds BBPLC holds in relation to your SIPP are
protected under the FSCS;
• Investments BBPLC holds in relation to your SIPP are
held under the FCA Custody Rules;
• any amounts that BBPLC owes in relation to your SIPP
will still remain due and owing.
(b) the active engagement of senior management
in order to ensure BBPLC’s arrangements remain
robust; and
(c)mandatory training sessions to familiarise all
BBPLC’s staff with the relevant arrangements.
14.3 Where BBPLC are not satisfied that BBPLC’s
arrangements to handle conflicts are sufficient
to prevent a conflict from potentially harming the
interests of your SIPP, BBPLC will:
23
(a)disclose the nature and source of the conflict to
has come to the attention of any other person;
you; and
(b)disclosure of which would be a breach of a duty
(b)if appropriate, obtain your permission to proceed
of confidentiality to any other person or result in a
with the service.
breach of any applicable law or regulation, or
14.4 On request, BBPLC will provide you with further
(c)is held solely in a division of us or the Barclays
information on how BBPLC handle conflicts of interest.
Group in a manner that precludes its publication
14.5 BBPLC will ensure that transactions BBPLC enter
outside that division.
on behalf of your SIPP are on terms that are not
materially less favourable to you than if no potential
15. FSCS
conflict had existed. Neither BBPLC nor any member
15.1 BBPLC is authorised in the UK by the Financial
of the Barclays Group will account to you or your SIPP
Conduct Authority and eligible depositors and
for any profit, commission or remuneration made or
investors may be covered by the Financial Services
received from or by reason of such transactions and
Compensation Scheme (“FSCS”) if BBPLC is declared
these amounts will not be set-off against BBPLC’s fees
in default.
except where this is required by the FCA Rules.
14.6 When conducting business on behalf of your SIPP,
Investments
Payments to investors under the FSCS are limited to
BBPLC may receive from or pay to a third party
£50,000 to any one eligible investor.
commissions or other benefits in relation to that
Deposits
business. For any such commissions or benefits,
Important information about compensation
arrangements
BBPLC will ensure that these arrangements provide
for an enhancement of the service to which they
relate and that they do not prevent us from acting in
compensation to depositors if a bank is unable to
your best interests.
meet its financial obligations. Most depositors –
14.7 When providing services to your SIPP, BBPLC are
including most individuals and small businesses – are
permitted to deal in investments with your SIPP
as agent and/or principal including dealing in
covered by the scheme.
In respect of deposits, an eligible depositor is entitled
investments issued by Barclays Bank PLC or another
to claim up to £85,000. For joint accounts each
member of the Barclays Group. agree that neither
account holder is treated as having a claim in respect
the relationship between you and BBPLC nor any
of their share so, for a joint account held by two
other service that BBPLC provide to you will give
eligible depositors, the maximum amount that could
rise to any duties on BBPLC’s part or that of BBPLC
be claimed would be £85,000 each (making a total of
associates that would prevent BBPLC or its associates
£170,000). The £85,000 limit relates to the combined
undertaking normal business activity except where it
amount in all the eligible depositor’s accounts with
would not be permitted under the FCA Rules.
the bank including their share of any joint account,
14.8 BBPLC and its associates provide a range of services
and may possess information of a confidential or
and not to each separate account.
For further information about the scheme (including
non-public nature which BBPLC are under a duty
the amounts covered and eligibility to claim) please
not to disclose or use for its own benefit or anyone
contact your Relationship Manager, call us on
else. BBPLC will therefore be unable to use this
0800 015 4449* or local number 0333 202 7544,
information on behalf of your SIPP or disclose it to
refer to the FSCS website www.FSCS.org.uk or call
you. In providing its services, BBPLC are not obliged
0800 678 1100 or 0207 741 4100. You can also
to disclose or take into consideration any information,
write to the FSCS at 10th Floor, Beaufort House,
fact or matter that:
15 St Botolph Street, London, EC3A 7QU.
(a)has not come to the actual attention of the
individual acting on your behalf whether or not it
24
We are covered by the FSCS. The FSCS can pay
16. Ending this Agreement
17.3 If you are paying us interest or fees, you may be
16.1 On termination of these Dealing and Investment
required by law to deduct tax from the amounts
Administration services, where your investments can
payable to us. This would mean that you would
be transferred you must tell us whether you want
need to deduct tax from the payment before paying
them transferred to another broker, registered in
us. Where this is the case, you must “gross up” the
your SIPP’s name or sold. If stock is registered in your
payment so that the net amount BBPLC receive is
SIPPs name, it may take several weeks to receive the
equal to the full amount BBPLC would have received
share certificates. If BBPLC terminate an investment
had the payments made by you not been subject
service and you do not tell us what you want to do
to a tax deduction. For example, if the interest
then following our reasonable attempts to contact you
payment due is £100 but withholding tax of 20%
BBPLC may take reasonable steps as are necessary
applies, you must pay a total of £125 from which
to return your assets to your SIPP, or (where BBPLC
you should deduct withholding tax of £25. BBPLC
terminate to close or transfer a business) BBPLC may
therefore receive £100 after deduction of tax. You are
sell your assets and send the proceeds of sale to
responsible for the payment of any withholding tax to
your SIPP.
the applicable tax authorities.
16.2 Where investments cannot be transferred to another
broker or registered in your SIPP’s name, BBPLC will
18. International taxation arrangements
sell them for you when you or STL or AJ Bell instruct
18.1 If you (or a person with whom you hold a joint
us. BBPLC will pay all proceeds of sale into an account
Account or Asset) are subject to tax or reporting in
in your SIPP’s name by a payment method BBPLC
another country or jurisdiction (or BBPLC have reason
decide. If BBPLC decide to send STL a cheque, BBPLC
to believe or are required to presume that this may be
will only do so if the amount is more than £5 or its
the case), BBPLC and other companies in the Barclays
equivalent in another currency. If the amount is less
Group may be required by legislation, regulation, order
than £5 or its equivalent BBPLC will contribute the
or by agreement with tax authorities of that country
balance to charity. The Agreement will continue to
or jurisdiction to report on an ongoing basis certain
apply until BBPLC have transferred the investments or
information about you and your Accounts and assets
paid you the proceeds.
and other products you hold with us on an individual
or aggregated basis:
17. Tax
(a)to a relevant tax authority which may then pass
17.1 BBPLC may ask questions about your personal
that information to the tax authorities where you
tax position and may explain our understanding
are subject to tax; or
of the generic legal or tax position relating to our
products or services. This is to provide you with
(b)directly to the tax authorities in that country.
If you are not an individual, BBPLC may also have
information on those products or services and to
to report information about your direct and indirect
assist us in selecting which products or services
shareholders or other owners or interest holders and, if
may be appropriate for you. BBPLC are not legal or
you are a trust, your beneficiaries, settlors or trustees.
tax advisers and BBPLC do not provide legal or tax
18.2 If BBPLC are required to report information about you,
advice. BBPLC recommend that you obtain your
this would include (but is not limited to) information
own independent advice, tailored to your particular
about you, your Accounts and assets, for example
circumstances. You cannot rely on our information as
your Account number(s), the amounts of payments
a substitute for taking your own independent advice.
including interest paid or credited to the Account(s),
17.2 There may be other taxes or costs that are not paid
the account balance(s) or Asset value(s), your name,
through us or imposed by us that you have to pay in
address and country of residence and your social
connection with your Account.
security number/taxpayer identification number or
similar (if applicable). You may need to provide us
25
with further information, if BB PLC ask for it, about
19. Automatic dividend reinvestment
your identity and status.
19.1 If you choose automatic dividend reinvestment,
18.3 If some of your income is reportable and some is
BBPLC will reinvest your dividend income in the stock
not, BBPLC will report all income unless BBPLC can
which originated the dividend within ten Working
reasonably determine the reportable amount.
Days of the dividend funds being credited to your
18.4 If a withholding tax under the European Savings
account, provided that, after the deduction of fees or
Directive or any similar or equivalent measures
any other due amounts, the dividend income is £10
(“ESD”) applies in the jurisdiction where your
or more. Commission charges apply for purchases
Account or Asset is booked BBPLC will withhold tax
carried out as a result of automatic dividend
at the rate specified in the ESD (currently 35% for
reinvestment..
most jurisdictions), unless you elect for us to report
19.2 If you choose automatic dividend reinvestment
information instead or provide us with evidence that
and a dividend is offered in the form of a scrip
you qualify for an exemption from the ESD. If you
dividend, BBPLC will accept this on your behalf; no
hold an Account in Jersey, you agree that BBPLC may
automatic dividend reinvestment will be carried out
report to the Comptroller of Income Tax all interest
or commission charged. Where BBPLC are unable to
payments made by us to you, unless you provide us
accept a scrip option due to time constraints, BBPLC
with a certificate confirming that you are exempt from
will accept cash on your behalf and subsequently
ESD. If you hold an Account in Gibraltar, a withholding
carry out dividend reinvestment.
tax will only be the default position if you are a UK
resident. If you hold an Account in Guernsey or the
20. Dormant and lost accounts
Isle of Man, there is currently no withholding tax.
20.1 In the UK, BBPLC participate in the Unclaimed Assets
18.5 To the greatest extent permitted by applicable
Scheme established under the Dormant Bank and
law, BBPLC will not be liable to you for any Losses
Building Society Accounts Act 2008. See further
you may suffer as a result of our complying with
information and your and our rights set out on our
legislation, regulations, orders or agreements with
website Barclays.co.uk
tax authorities in accordance with this condition,
or if BBPLC make an incorrect determination as to
21. Assignment
whether or not you should be treated as being subject
21.1 You may not transfer or assign any of your rights
to tax or tax reporting obligations where the incorrect
or obligations under the Agreement or charge your
determination results from our reliance on incorrect
Accounts under the Agreement.
information provided to us by you or any third party,
unless that loss is caused by our gross negligence,
Transfers within the Barclays Group
wilful default of this clause or fraud.
21.2 BBPLC may transfer its rights under the Agreement
18.6 If you ask us to make a payment to an account based
to any member of the Barclays Group without your
at a financial institution which does not participate
or comply with relevant tax legislation, regulations,
(a)BBPLC has given you at least the following notice
orders or agreements with tax authorities BBPLC may
of transfer (unless that is impracticable in the
be required, and you authorise us, to withhold certain
circumstances): for (i) banking Accounts, two
amounts from the payment (but BBPLC will tell you if
months; and (ii) for any investment product or
this is the case).
service, 30 calendar days; and
18.7 This clause will override any inconsistent term or
consent provided by you under any agreement with
us to the extent that such agreement provides fewer
or lesser rights for us, whether before or after the date
of this Agreement.
26
specific consent, provided that:
(b)you have not given proper notice terminating the
Agreement on a date before the date of transfer.
21.3 Where BBPLC proposes to transfer a material part of
its assets to another member of the Barclays Group:
(a)BBPLC may also transfer all of its rights, powers,
obligations and liabilities under or in connection
Transfers outside the Barclays Group
21.5 BBPLC may also transfer (i) its rights under the
with the Agreement without your further specific
Agreement or (ii) where BBPLC proposes to transfer a
consent; and
material part of its assets, rights, powers, obligations
(b)if BBPLC holds your cash as Client Money, the
and liabilities under or in connection with the
Client Money specific provisions set out below
Agreement, to a third party outside the Barclays
will apply, provided that in each case:
Group without your specific consent, provided that:
(i)BBPLC reasonably considers that the
(a)BBPLC reasonably considers that the transfer will
member of the Barclays Group is capable of
not materially prejudice your rights under the
performing the Agreement;
Agreement; and
(ii)BBPLC has given you at least two months’
(b)BBPLC has given you the same notice as set out
notice for banking Accounts and for any
above for a transfer within the Barclays Group
investment product or service, 30 calendar
and you have not given notice terminating the
days’ notice (unless that is impracticable in
Agreement on a date before the date of transfer.
the circumstances); and
(iii)BBPLC has not given notice terminating the
Agreement on a date before the date of
Dealing with Client Money
21.6 Where BBPLC intends to transfer cash that it holds
transfer.
for you as Client Money, the following provisions will
apply.
Partial transfers within the Barclays Group
21.7 If the recipient is authorised to accept deposits,
21.4 BBPLC may carry out each of the following transfers
without your further or specific consent in relation to
your cash being treated as a deposit from the date of
the compliance of any member of the Barclays Group
transfer without further action on your part.
with any legal or regulatory requirement anywhere:
21.8 If the recipient is not authorised to accept deposits,
(a)A transfer of all or any of your and BBPLC’s rights,
powers, obligations and liabilities in relation to
BBPLC may transfer the cash if either:
(a)BBPLC receives your specific consent or
deposit Accounts and the deposits in those
instructions from you at the time of the transfer
Accounts to another member of the Barclays
of its business; or
Group.
BBPLC may transfer the cash and you consent to
(b)the Client Money relates to the business that
(b)A transfer of all or any of your and BBPLC’s
other rights, powers, obligations and liabilities in
recipient to return your cash to you as soon
relation to the Agreement, provided that, in each
as practicable at your request and one of the
case:
following conditions applies:
(i)BBPLC has given you at least two months’
(i)the sums transferred will be held for you by
notice of the transfer (or such other period of
the recipient in accordance with the Client
notice as may be required under applicable
Money Rules; or
law or regulation); and
BBPLC is transferring, BBPLC has required the
(ii)you have not given sufficient notice closing
(ii)BBPLC has exercised all due skill, care and
diligence in assessing whether the recipient
those Accounts on a date before the date of
will apply adequate measures to protect your
transfer.
cash; or
You agree that you will not object to such a transfer,
whatever legal means BBPLC uses to effect it.
(iii)the amount of your Client Money is equal
to or less than an amount that BBPLC’s
regulators permit BBPLC to transfer without
either of the other two above conditions
27
applying and it will be treated as Client
the transfer in any newspaper of general circulation in
Money or otherwise in the same manner as
the United Kingdom.
the treatment of money held in your account
after the transfer.
21.9 If for whatever reason BBPLC is unable to give you an
advance notice as set out in this clause, BBPLC will
22. Dealing with personal representatives and insolvency
practitioners
22.1 If you die, the Agreement will continue to bind your
notify you no later than seven days after the transfer
estate until terminated by, or us giving notice to, your
has taken place (or such later period as agreed with
validly appointed personal representative. Your estate
its Regulators), setting out the details required by this
must provide us with such information as BBPLC may
clause and;
reasonably require to confirm your death and the
(i)whether or not the cash will be held in
accordance with the Client Money Rules and
if not how they will be held by the recipient;
(ii)the extent that the cash will be protected
under a compensation scheme, if any; and
(iii)that you may opt to have cash returned to
you as soon as practicable.
appointment of the personal representative.
22.2 Once BBPLC have received the grant of representation
for your estate (or such other formal appointment,
as applicable in your jurisdiction), BBPLC will act in
accordance with STL’s instructions where FCA Rules
allow, but:
(a)assets cannot be sold until any re-registration
process is completed with any fees, charges and
Effect of a notice of transfer of business
21.10Where BBPLC gives notice under this clause, on a date
within three months of our receipt of the grant
(a)The recipient will acquire all the rights, powers,
of representation, BBPLC may re-register your
had been an original party to the Agreement in
substitution for BBPLC;
(b)if the transfer is to a recipient that is authorised
correspondence address for your estate; and/or
(d)if your estate is too small to warrant a grant of
be held as Client Money and will be held as
balance on STL’s instructions. This is provided that
a deposit unless otherwise set out in the
BBPLC receive a signed agreement from them to
notice. To facilitate this, you consent to the
reimburse us for any loss BBPLC suffer as a result.
22.3 In spite of anything in the Agreement, if the
acknowledge that this account may not be a fully
Agreement is not terminated within two years of the
functional current account;
date of your death, BBPLC may, where FCA Rules
(c)the terms of this Agreement as amended by the
allow, take such action as BBPLC reasonably consider
contents of the notice will be the written terms
appropriate to close your SIPP Portfolio and transfer
of the new agreement between you and the
cash assets or their value to the STL’s instruction.
recipient;
Your SIPP will be liable for all reasonable costs
(d)you will be released from any further obligation to
(e)BBPLC will be released from any further obligation
to you.
associated with us taking this action, or considering
taking action, except to the extent that costs arise
because of our negligence, wilful default or fraud.
22.4 If you are a non-natural person and BBPLC receive
21.11For the purposes of giving you written notice under
notice of your winding up or similar procedure in any
this “Assignment” clause, if BBPLC is not reasonably
jurisdiction, BBPLC will act on the instructions of your
able to serve written notice on you personally, BBPLC
proven representatives.
may instead give you notice by publishing a notice of
28
(c)BBPLC will send the certificates to the registered
representation, BBPLC may at our discretion pay the
BBPLC; and
holdings into STL’s name;
to accept deposits your cash will cease to
recipient opening an account in your name and
(b)if BBPLC have not received any instructions
specified in the notice:
obligations and liabilities it would have had, if it
expenses owed to us accounted for;
23. Pooling of Investments
23.1 Your Investments may be pooled with those of other
Appendix 1 – Additional Terms for Cash
Management
clients of ours or our sub-custodians in one account,
1. Our legal relationship
subject to Regulatory Requirements. In this case:
These terms apply to cash applied to your Barclays
(a)BBPLC will maintain records of your interests in the
Stockbrokers Account. Cash is held by us through the
Investments which have been pooled;
(b)your right to specific Investments may not be
identifiable; and
facility known as the Cash Management Service SIPP Cash
Account or Sippdeal Trustees Account (“Cash Account”)
associated with your investment service (the “Account”).
(c)if there is a default by us or our sub-custodians
resulting in a shortfall, you might not receive
Money held through the Cash Account is held as a deposit
your full entitlement. You might have to share
with us. This means that money held for you in the Cash
in the shortfall in proportion to the value of the
Account will be held by us as banker and not as trustee (or
Investments which BBPLC or the sub-custodian
in Scotland as agent); and as a result, the money will not be
hold for you with other clients. This explanation
held in accordance with the client money rules.
does not limit your rights against us in any way.
23.2 On occasion pooled assets may be used to settle
trades of another client, which may result in a
2. Payments into and from your Cash Account
2.1 BBPLC may deduct any applicable charges from a
temporary shortfall on your account. If this happens,
payment before BBPLC add it to or make it from your
BBPLC will ensure that any such shortfall is resolved
Account.
as soon as possible.
2.2 The timing of payments into your Account depends
on how the payment is made and where it has come
24. Corrections
from. Although payments made into an Account on
If BBPLC or a counterparty make an error executing your
a non-Working Day will not generally be processed
order, BBPLC may choose to correct the error either
by us until the following Working Day, in certain
through or outside your Account. If BBPLC correct the error
circumstances (such as where they are made through
through your Account you will see the steps taken to correct
online payment) they will be shown on your Account,
the error.
and will be available to use, on that day but will be
dated the following Working Day. However, where
We will try to make the correction outside your Account
applicable, interest will not begin to be payable until
if BBPLC believe there could be a change in your tax
the following Working Day.
obligations if the correction is undertaken through your
(a)Cash payments
Account.
You cannot deposit cash payments over the counter
into a Cash Account.
(b)Cheques
If a payment by cheque is permitted by your
Account into a Cash Account, information about
the clearing cycle for these will be provided to you
separately, or on request.
(c)Debit Cards and Direct Debit Mandates
If a payment by Debit Card or Direct Debit
Mandates are permitted by your Account into a
Cash Account, information will be provided to you
separately, or on request.
29
(d)Electronic payments
An electronic payment received by us before the
banking practice of the country concerned.
Cut-Off Time on a Working Day sterling into an
2.4 Cheques
Account will be available for you to use when it
2.4.1 You will not be given a cheque book for the Cash
received in your Cash Account for investment
facilities of an Account only.
receive the payment that day. This will depend on the
Account
2.4.2 It may not be possible to accept cheques drawn
If you ask us, BBPLC will tell you which specific
on banks outside the jurisdiction in which BBPLC
electronic payments will be available for you to use.
hold your Account. If it is possible, BBPLC will either
“collect” the cheque, in which case BBPLC will pay you
2.3 Electronic payments
the proceeds once BBPLC receive them, or “negotiate”
2.3.1 If you are making a payment out of your Cash
it, in which case BBPLC will pay you the proceeds, less
Account in an EEA currency to your Chosen Account
our charges, on a date BBPLC agree with you which
at a bank in the EEA from a Cash Account held in an
will be before BBPLC receive the payment from the
EEA currency, BBPLC will make sure that any foreign
relevant bank.
exchange is carried out as described in the Account,
2.5. Card payments
and the amount of each payment you ask us to make
You will not be given a card for a Cash Account.
will reach that Chosen Account no later than:
(a)one Working Day after BBPLC received your
Payment Order, if the payment is to a person with
Chosen Account in the same way as you can contact
(i) at a bank in the country where BBPLC provide
us in relation to your Account, but BBPLC may, for
services to you, and the payment is in euro or
example, require you to set up security procedures or
the currency of that country; or
take other steps before being able to give us Payment
Orders in certain ways. When you give us a Payment
and the payment is in euro;
Order, BBPLC will decide, acting reasonably, how the
unless the instruction was given by paper
payment will be sent.
Payment Order, in which case BBPLC will make
3.2 We set Cut-Off Times by which Payment Orders
sure it reaches that person’s bank no later
must be received by us on a Working Day in order
than two Working Days after BBPLC received
for us to process them on the same day. Details of
your Payment Order; or
our Cut-Off Times are available on request. If BBPLC
(b)four Working Days after BBPLC received your
Payment Order, in all other cases or if by BACS.
receive a Payment Order before the relevant Cut-Off
Time on any Working Day, BBPLC will process it on
The bank receiving the payment from us is required
that day unless you have asked us to process it on
by law to pay it into its customer’s account on the day
a future date specified in your instruction, in which
it receives the payment from us.
case BBPLC will process it on that date. Instructions
2.3.2 If you are making a payment to a Chosen Account at
or Payment Orders received after the Cut-Off Time or
a bank not in the EEA or in a currency which is not an
on or for a non-Working Day will be processed on the
EEA currency or ask us to deduct the payment from
next Working Day.
an Account which is not in an EEA currency, BBPLC
3.3 Before BBPLC will act on a Payment Order, BBPLC
will make sure that any foreign exchange is carried
will take steps to check that the instruction is clear,
out as described in the Account, and BBPLC will give
is given by you, or on your behalf, and meets any
you an indication of the date on which the payment
specific requirements that apply to the particular
should be received by that bank. This does not mean
product or service.
that the person the payment is being sent to will
30
3.1 You can normally give us Payment Orders to your
an account:
(ii) at a bank in another country within the EEA,
3. Payment Orders
3.4 We will treat a Payment Order as genuine if BBPLC
(b)it is for more than a limit BBPLC set for security
believe in good faith that the instruction is from
purposes; or
you or any authorised person for your Account (for
(c)for some other reason, such as suspected fraud,
example, because it appears to have been given
by you or an authorised person or the security
BBPLC want to check the instruction with you,
we can ask you to confirm it in a manner reasonably
procedures have been completed) and there are no
acceptable to us and BBPLC will not act on it until you
circumstances BBPLC are, or should reasonably be,
have confirmed it.
aware of that cast doubt on the authenticity of the
4.3 Unless Regulatory Requirements prevent us from
Payment Order.
doing so, BBPLC will try to tell you:
3.5 We will not generally acknowledge receipt of Payment
(a)if BBPLC refuse to act on any Payment Order;
Orders other than by acting on them.
(b)our reasons for refusing; and
3.6 Payment Orders can only be given in connection with
(c)what you can do to correct any errors in the
your investment service or to make a payment to
your Chosen Account. Payment Orders to any other
instruction.
account will not normally be permitted.
We will do this at the earliest opportunity. You can
also ask us why BBPLC have refused to carry out your
3.7 We start processing Payment Orders when BBPLC
Payment Order.
receive them and may not be able to stop or change
them. If BBPLC are able to cancel your Payment Order,
5. Your obligations
BBPLC may charge a fee. Copies of the published
5.1
tariffs are available on request.
To help prevent fraud and protect your Account, you
should:
(a)keep your Security Information secret at all times
4. Refusing Payment Orders
and not disclose it to anyone;
4.1 We can refuse to act on any Payment Order or accept
(b)take all reasonable care to prevent unauthorised
a payment into your Account if BBPLC reasonably
or fraudulent use of your Security Information by
believe that:
others; and
(a)it is not clear, does not satisfy any requirements of
(c)contact us without undue delay using the contact
or is not consistent with the investment service or
details provided if you know or suspect that
was not given by you or an authorised person; or
someone knows your Security Information or is
(b)by carrying it out we, or another Barclays Group
company, might break a law, regulation, code or
impersonating you.
We will be under no obligation to ascertain that you
other duty which applies to us or become exposed
have carried out these obligations when executing a
to action or censure from any government,
Payment Order.
regulator or law enforcement agency; or
(c)it is for a payment to or from a restricted country.
BBPLC will tell you which countries are “restricted”
on request; or
(d)it would leave your Account overdrawn once a
6. Fees, Interest and Charges
6.1 We will charge Account fees, pay credit interest
and charge debit interest in accordance with our
published tariff or as otherwise agreed in writing with
pending transaction for your investment service
you (and all references to fees, charges shall have
has been settled.
the same meaning). Copies of the published tariffs
4.2 If BBPLC receive any Payment Order and:
(a)we are concerned that it may not have come from
are available either from our website or on request.
These may be taken by us from your Account or Cash
you or an authorised person, it contains incorrect
Account, if no alternative payment arrangements have
information or is illegible; or
been agreed with you and implemented.
31
6.2 We set out how BBPLC may vary interest payable in
(c)(if no rate is agreed) the Reference Exchange Rate
the clause 8 “Variations” and ” clause 11 “Varying the
that BBPLC have told you will apply (or will be at a
Interest Rate”.
margin above or below that rate if BBPLC have told
6.3 We may pay interest or charge interest, fees and
other charges due to us by crediting or debiting the
Account.
6.4
If you do not pay us amounts when due, BBPLC may
you that is the case).
8.3 BBPLC may apply changes to the Reference Exchange
Rate immediately and without notice.
8.4 If the Reference Exchange Rate used in foreign
charge default interest as set out in our published
currency payments is set by us, BBPLC can change
tariffs or rate card.
that Reference Exchange Rate at any time.
6.5 We may deduct any applicable charges from a
payment before BBPLC add it to your Account.
Changes to other terms
8.5 BBPLC may change any of the other terms for your
7. Ending the Cash Account relationship, services or
products
Cash Account in accordance with the variations
clause of your investment service.
7.1 As the Cash Account is linked with the investment
service, you cannot ask to end your relationship for
Notice
the Cash Account without also closing the investment
8.6 Notice will be given to you of any variation as set out
service, or vice versa. This means BBPLC will close
in the terms of the Account.
your Cash Account as soon as your investment service
is closed or the service is ended and normally pay
9. Interest
cash held back to your Chosen Account.
9.1 BBPLC apply different rates of interest to our various
services or products. Please refer to our website for
8. Variations
details of the rate of interest applicable to particular
Terms that apply to all changes
services or products or ask your usual contact.
8.1 BBPLC may change any of the provisions of the
9.2 BBPLC generally work out interest at the end of each
Cash Account (including a Barclays managed rate,
day taking into account Payment Orders BBPLC have
the amount by which a tracker rate differs from a
carried out that day for you and payments received
Reference Interest Rate and our charges) for any
into your Account.
reason not listed below in this “Variations” clause, in
9.3 Interest will be credited to your Account monthly or
circumstances where:
quarterly in arrears as described in your Account.
(a)you are able to end the Agreement without
Interest, if any, is paid in accordance with the
charge; or
(b)we agree to waive any charge that would
otherwise apply.
published tariff or rate card or as otherwise agreed
with you.
9.4 When BBPLC start to pay interest on payments made
into the Account depends on how the payment is
Terms that apply only to changing exchange rates
8.2 If there are any foreign currency services provided
9.5 Because BBPLC treat payments as added to your
through your Account, the exchange rate used to
Cash Account for the purpose of working out interest
convert foreign currency payments into or out of your
before BBPLC have actually received the amount of
Account will be:
the payment, the amount shown on your statement is
(a)any fixed rate BBPLC have agreed with you for a
not always the same as the amount which is available
particular transaction; or
(b)as detailed in the terms for your investment
service; or
32
made and the Account you are paying it into.
for you to use.
9.6 BBPLC will deduct tax from any interest paid to you
where Regulatory Requirements require us to do so,
and whilst BBPLC hold your cash as a deposit it will
whether or not you should be treated as being subject
normally be paid net of tax unless your Account has a
to the ESD where the incorrect determination results
tax exemption.
from our reliance on incorrect information provided
9.7 Interest is calculated on the basis of a 360-day year.
to us by you or any third party, except to the extent
caused by our gross negligence, willful default or
10. European Savings Directive (“ESD”)
10.1 If you are an individual resident in a member state
fraud.
10.7 Please be aware that the ESD requirements may
of the EU or another jurisdiction which is subject to
change in the future. Please ask us if you require
the ESD (including Gibraltar) or any similar savings
further information.
taxation agreement, BBPLC may be required either:
(a)To report certain information about savings
income, including interest, BBPLC pay you to
11. Varying the interest rate
11.1 Where interest will be applied or charged to your
the tax authorities in the country where BBPLC
Account, BBPLC will tell you in the published tariff
provide the service, who will then exchange
or rate card if you have a tracker rate or a fixed rate
that information with the tax authorities in your
and what it is. A “tracker rate” is a rate which moves
country of residence; or
in line with changes to a Reference Interest Rate. A
(b)To apply a withholding tax to any interest BBPLC
pay you.
10.2 If a withholding tax applies in the jurisdiction where
“fixed rate” is a rate that BBPLC will not change or
which BBPLC will not change for an agreed period. If
BBPLC do not tell you that you have a tracker rate or a
your Account is booked (including Jersey), BBPLC will
fixed rate on a Cash Account, you will have a “Barclays
withhold tax at the rate specified in the ESD (currently
managed rate”. A Barclays managed rate is a rate
35% for most jurisdictions), unless you elect for us to
BBPLC set and can change.
report information instead or provide us with evidence
that you qualify for an exemption from the ESD. If you
Terms that apply only to changing tracker rates
hold an Account in Gibraltar, a withholding tax will
11.2 If you have a tracker rate, that rate will change
only be the default position if you are a UK resident. If
automatically, on the first Working Day of the month
you hold an Account in Guernsey or the Isle of Man,
following a change in the relevant Reference Interest
there is currently no withholding tax.
Rate, to reflect the corresponding change in the
10.3 Where BBPLC are obliged to pass on information
relevant Reference Interest Rate. BBPLC will tell you
about you, this information includes (but is not limited
the applicable Reference Interest Rate in the Account
to) the amount of interest paid or credited, your
or facility terms.
name, address and country of residence. You may
11.3 Whenever this changes, BBPLC will make the new rate
need to provide us with further information, if BBPLC
available on our website, in branches and through
ask for it, about your identity and status.
online and telephone banking within three Working
10.4 If some of your income is reportable and some is
Days of the change.
not, BBPLC will report all income unless BBPLC can
reasonably determine the reportable amount.
10.5 BBPLC may apply these provisions, even if BBPLC
Terms that apply only to changing Barclays managed rates
11.4 If you have a Barclays managed rate, BBPLC may
have previously indicated that you are not subject to
change that rate if at any time there is a change, or
the ESD. BBPLC will do this if BBPLC receive further
BBPLC reasonably expect that there will be a change:
information to suggest our original decision was
(a)in the costs BBPLC incur in providing the Account
wrong. BBPLC will not be liable to you for any resulting
or facility (including operational or funding costs,
Losses.
if relevant); or
10.6 BBPLC are not liable to you for any Losses you may
(b)in Regulatory Requirements.
suffer if BBPLC make an incorrect determination as to
33
Where BBPLC make a change to comply with a
any failure, delay or error in respect of a Payment
Regulatory Requirement, the change will be a fair
Instruction will be limited to interest calculated at the
proportion of the cost of compliance on our banking
rate and/or in the manner provided under applicable
business, as reasonably estimated by us. Other
law or regulations governing such payments by
changes will respond proportionately to changes in
persons generally (or, in the absence of such law or
our costs. BBPLC will not change a Barclays managed
regulations, to interest at Barclays Bank base rate
rate and our charges to cover the same cost twice.
for the time being in force) and will be calculated
11.5 BBPLC may also change a Barclays managed rate for
from the end of the third Working Day (for payments
a valid reason which is not set out in the terms under
within the EEA) or the fifth Working Day (for all other
this heading.
international payments) (or any other date BBPLC
11.6 Such changes may be made without notice if the
specifically agree with you) following the date BBPLC
change is favourable to you. BBPLC will make the new
accept your instructions to the date the funds are
rate available on our website, in branches and through
credited to the beneficiary’s bank.
online and telephone banking within three Working
Days of the change.
11.7 BBPLC will give you at least two months’ Personal
15. Statements
15.1 We will provide statements showing the individual
Notice of other changes to a Barclays managed rate in
transactions paid into and out of your Account since
accordance with the “Variations” clause.
the previous statement, together with information
about those transactions, including details of any
12. Payments into your Account
charges made, interest payable or exchange rates
12.1 Although payments made into an Account on a
used in relation to the transaction. Unless a different
non-Working Day will not generally be processed
frequency is agreed with you, BBPLC will provide
by us until the following Working Day, in certain
these statements as part of the statements for
circumstances they will be shown on your Account,
your Accounts. You can also ask us at any time for
and will be available to use, on that day but will be
information about individual transactions or for a
dated the following Working Day. However, where
more frequent statement by contacting your usual
applicable, interest will not begin to be payable until
contact.
the following Working Day.
15.2 You must tell us as soon as you can if a statement
includes something which appears to you to be wrong
13. Unauthorised payments
or if a payment was not made in accordance with your
13.1 Where there has been an unauthorised payment from
instructions. BBPLC will correct any entry BBPLC made
your Cash Account used to purchase an asset, BBPLC
by mistake on your Account statement immediately
will return your Account to the position it would have
after you tell us about it or BBPLC notice it.
been in if the unauthorised payment had not taken
place.
13.2 BBPLC will not be liable to you for any Losses you
16. Definitions
These definitions apply equally to Section 1 and Section 2
suffer or costs you incur because:
of these Termsand Conditions.
(a)we do not act on a Payment Order for any reason
Account – means, unless otherwise provided in these
specified in the Agreement; or
(b)the details contained in the Payment Order were
not correct
terms, the account or accounts opened by us for you in
relation to your investment service.
Affiliate – The ultimate holding company of BBPLC and any
direct or indirect subsidiary of that holding company.
14. Our liability
AIM – The Alternative Investment Market operated by
14.1 Except as set out above, the liability of any member
the LSE.
of the Barclays Group for any Losses resulting from
34
Agreement – means this document and the terms set out
with any applicable Client Money Rules, in the course of,
in other documents which BBPLC give you, such as your
or in connection with, the business contemplated by the
Application Form, our interest rates and charges documents
Agreement, other than money which is due and payable
and those relating to specific financial products for the
by you to BBPLC or a third party (which may or may not be
Account or Cash Account
called “client money” under the Client Money Rules in the
AJ Bell – AJ Bell Management Limited and (where
jurisdiction in which you are provided the Services).
applicable) any undertaking in the same group as AJ Bell
Client Money Rules – means Regulatory Requirements in
Management Limited
the jurisdiction in which you are provided the Services that
Application – An application to open a Barclays
concern the holding of Client Money.
Stockbrokers SIPP and to arrange facilities for BBPLC to be
Communication(s) – All notices, Instructions,
able to take and process instructions you or a User give in
orders, demands, contract notes, statements or other
relation to the SIPP.
communications that BBPLC or AJ Bell may need to make to
Approved Bank – means a bank or financial institution that
you. If the communication comes from you, this means all
satisfies regulatory conditions in the jurisdiction in which
notices you give to AJ Bell or BBPLC.
you are provided the Services for holding Client Money and
Contribution – Payment by you, or on your behalf,
undertaking banking business.
(including the tax relief thereon) or your employer by way of
At Best Order – An Instruction to obtain the best result in
a single or regular payment.
buying or selling a specified stock.
CREST, CRESTCo – The centralised settlement system for
BACS – Bank Automated Clearing System.
securities traded on the LSE.
Bank – The Governor and Company of the Bank of Scotland
Custodian – A company that BBPLC has chosen to hold
or such other bank as may be determined from time to time
Investments in the event that these are not held with
by AJ Bell at its discretion.
BBPLC’s Nominee. The choice of custodian is at BBPLC’s
Barclays Group - means the Barclays group of companies,
discretion and may be an Affiliate or a company outside of
their parent companies and any companies totally or partly
BBPLC’s group. If it is an Affiliate, BBPLC will remain liable for
owned by any of these companies.
its acts and omissions as if they were its own.
Barclays Bank PLC (BBPLC) – the bank authorised and
Cut-Off Time – means the time, towards the end of the
regulated by the Financial Conduct Authority, registration
Payment Day, by which BB PLC must receive all Payment
number: 122702 whose registered office is at 1 Churchill
Orders and payments into a payment account (including
Place, London, E14 5HP.
cash) if they are to be processed that day notified to you
Base Rate – The Barclays Bank PLC base rate at the time
from time to time.
interest is calculated.
Data – Any market prices, news, research or other
Business Day – A day which is not a weekend day on which
information obtained by you using the Service.
banks in England are open for business.
Data providers – Any third parties who provide Data.
Cash Account – means, unless otherwise provided in these
Dealing Service(s) – Any dealing and investment
terms, the account or accounts opened by us for you to
administration services provided by BBPLC or its Affiliates in
hold cash in relation to your investment service.
relation to the Barclays Stockbrokers SIPP.
Charges – The charges for the Barclays Stockbrokers SIPP
EEA – means the European Economic Area, which is all
published on the Website.
the countries in the European Union plus Iceland, Norway,
Chosen Account – means the bank or building society
Liechtenstein and (for the purposes of this Agreement)
account of a UK credit institution notified by STL to us
Gibraltar.
to which payment from an Account shall be paid to, and
FCA – means the Financial Conduct Authority in the UK, or
payments into the Account shall normally be expected to
any succeeding authority.
be paid from.
FCA Rules – mean the legal rules and guidance published
Client Money – means money of any currency that BBPLC
by the FCA.
receives or holds for you, or on your behalf, in accordance
35
Financial Ombudsman Scheme – The scheme provided
under Part XVI of the Financial Services and Markets Act
Transferable Securities (UCITS);
2000 for resolving disputes by an independent person.
• Venture capital trusts, quoted on AIM;
HMRC – This means Her Majesty’s Revenue and Customs.
and such other investments as AJ Bell and BBPLC may
Indirect, special or consequential loss or damage –
from time to time make available through the Service in
means loss or damage other than direct loss or damage
accordance with these Terms and Conditions.
arising as a direct result of our breach of contract such as
Key Features Document – means the Key Features
the loss of ability to reinvest.
available at the Website.
Intermediary – A third party who (i) is independent
Limit Order – An instruction to BBPLC setting the
to BBPLC (but may be connected to an Affiliate); (ii) is
maximum or minimum price at which you are willing to buy
authorised and regulated by the FCA; and (iii) you have
or sell shares. Third party data will be used to determine the
authorised to use the Service on your behalf; and (iv)
price available to BBPLC.
BBPLC has approved or shall approve to use the Service on
Losses – means all reasonable losses, costs, expenses,
your behalf. (All provisions of these terms and conditions
damages and liabilities.
shall remain in full force and effect notwithstanding any
LSE – London Stock Exchange plc.
connection your Intermediary may have to an Affiliate.)
Market – The London Stock Exchange and such other stock
Investments – Investments made available from time to time
exchange or investment market as AJ Bell and BBPLC may
through the Service in accordance with these Terms and
determine at their absolute discretion.
Conditions and permitted by the Scheme Rules and HMRC
Member – A person who is a member of the Scheme,
rules including:
having been accepted by AJ Bell following completion of an
• United Kingdom equities, investment trusts and Gilts;
Application in a format stipulated by AJ Bell and who has not
corporate bonds; debenture stock and other loan stock;
subsequently left the Scheme.
and warrants (for equities) all of which should be listed or
Nominee – Barclayshare Nominees Limited.
dealt on the LSE;
Payment Day, for the purpose of making or receiving
• Depository interests (including CREST depository interests
payments, means calendar days other than weekends or
in European securities dealt through LSE’s International
public holidays.
Retail Service);
Payment Order – means an instruction to make payments
• Authorised unit trusts resident in the UK and authorised by
the FCA;
from your Account
Personal Notice – means any notice sent to you in
• UK based open-ended investment companies (OEICS);
accordance with the provisions of your Account, including
• fixed interest securities issued by governments or other
notices sent with a statement.
bodies;
Reference Exchange Rate – is a rate for converting one
• debenture stock and other loan stock;
currency into another which BB PLC set and make publicly
• permanent interest bearing shares;
available or comes from another publicly available source
• convertible securities;
(such as a rate set by Visa or MasterCard).
• Options traded on any recognised stock exchange whether
Reference Interest Rate – is a rate on which a tracker rate
currency, equity or bonds and either long or short positions
will be based.
or options (provided there is no exposure beyond that
Security Information – means any security procedures,
permitted in accordance with these Terms & Conditions);
password, security keys, cards, personal identifier, codes,
• Contracts for Differences (“CFDs”);
PINs or encryption device provided to or agreed with you
• ‘Over The Counter’ Products or Derivatives (‘OTC’);
for use in connection with the services to be provided under
• Foreign Exchange;
the Agreement.
• Hedge funds, listed on a recognised stock exchange;
Regulatory Requirements – means any obligation (i)
• Deposit accounts, in any currency, held with any deposit
BBPLC and AJ Bell have to comply with under any law or
taker authorised under FSMA;
36
• Undertaking for Collective Investment Schemes in
regulation (including any tax legislation or rules made by
an applicable regulatory body), or as a result of the decision
User – Someone you have authorised in writing, and
of a Court, ombudsman or similar body; or (ii) under any
BBPLC has approved, to use the Dealing Service on your
industry guidance or codes of practice which BBPLC and AJ
behalf who is either a (i) a third party who is not acting
Bell follow.
in the capacity of an investment professional and who
Relevant Law – All laws, regulations, rules and customs
is not subject to any authority or regulation by the FCA;
which apply to BBPLC and AJ Bell and any transactions
or (ii) an Intermediary. BBPLC will not need to get any
which BBPLC or AJ Bell carries out for you. It includes the
further confirmation from you concerning the User’s use
rules of FCA and any other relevant regulator and the rules,
of the Service and BBPLC are entitled to treat Instructions
customs and practices of LSE and of any other market or
from them as though they have come from you. You are
exchange on which a transaction is carried out.
responsible for the actions of the User, and for ensuring that
Scheme – The registered pension scheme known as the
the User complies with these Terms and Conditions.
Sippdeal e-sipp established under trust deed and registered
Website – Barclays Stockbrokers internet website at
with HMRC.
BarclaysStockbrokers.co.uk
Scheme Rules – The trust deed and rules for the Scheme
VAT – United Kingdom Value Added Tax
as may be amended from time to time and a copy of which
you/your – the Member who has entered into the
is available from AJ Bell on request.
Agreement and, where the context permits, the User acting
Security Codes – Any User identifiers, password(s), account
for the Member.
number(s), electronic keys and details used to identify you
your Information – Personal financial information:
when you use the Service.
(a)obtained from you or from third parties, credit reference
Service(s) – The Service(s) provided by AJ Bell as outlined in
agencies (who may search the Electoral Register),
Section 1 and the Dealing Services as outlined in Section 2.
fraud prevention agencies or other organisations when
SIPP – The pension arrangement, or arrangements,
you apply for a SIPP or any other product or service or
established for a Member under the Scheme, and includes
which you or they give to us at any other time; or
the assets held under the Member’s SIPP Account.
(b)learned from the way you use and manage the SIPP
SIPP Account – The SIPP Cash Account and SIPP Portfolio.
Account, from the transactions you make and from the
SIPP Cash Account – Means a sub-account opened
payments which are made to the SIPP Account.
by BBPLC in respect of Sippdeal’s Trustee’s Account to
Working Day – means any day on which the relevant
enable Members (or their duly authorised agents) to give
Barclays Group company providing the service to you is
Instructions in respect of cash , which shall include any sub-
open for business to accept instructions. Although BBPLC
account for foreign exchange cash (if applicable), held in
may provide certain electronic and telephone services that
relation to their rights under the Scheme.
can be accessed seven days a week, BBPLC cannot usually
SIPP Portfolio – Means a sub-account opened by BBPLC in
act on Payment Orders or make payments into accounts at
respect of Sippdeal Trustees’ Account to enable Members
weekends or on public holidays.
(or their duly authorised agents) to give Instructions in
Words which begin with a capital letter that have not been
respect of Investments , which shall include any sub-
defined in this section are terms that have been defined in
account for foreign equities or investments (if applicable),
the Account documentation or FCA Rules and will have the
which are designated to them in relation to their rights
same meaning as that in this Agreement.
under the Scheme.
Your SIPP – The SIPP established for you under
Sippdeal Trustees’ Account – account held in the name of
the Scheme.
STL with BBPLC for the purposes of holding Scheme assets.
STL – Means Sippdeal Trustees Limited.
Tax Year – A year beginning 6 April one year and ending
5 April in the following calendar year.
Transfer – The transfer of benefits from any UK registered
pension scheme to the Scheme.
37
Schedule A: Information on how BBPLC executes
Collective Investment Schemes
client orders & the execution venues that BBPLC use
BBPLC will usually trade directly with the Fund Manager on
Introduction
negotiated terms not generally available to individual clients.
Before BBPLC undertake any deals in investments for your
SIPP, it is important that you understand how BBPLC will
Over-The-Counter Products
execute such transactions. The following information is
Over-the-counter products are dealt either directly
designed to provide you with a general understanding
between BBPLC and its client, or may be sourced via a third
of BBPLC’s typical dealing arrangements for different
party. The order routing process will depend both on the
investment types (Part 1) and the execution venues that we
execution factors, and on the following;
use (Part 2).
i) A request for a price or quotation on any over-the-
Please note that this information should not be seen as
counter product will be traded by BBPLC as principal at
a prescriptive statement of how a particular order must
the price agreed. For such deals the onus is on a client
be dealt.
to be comfortable with the dealing terms offered.
ii) For bespoke, highly negotiated transactions or for
Part 1: Our typical dealing arrangements for different
those which may be highly original trading ideas or
types of investment:
for which BBPLC has a duty of confidentiality to the
originating firm, it will route such orders exclusively
Equities
to the originating firm since there will be no other
For standard UK market orders, and in normal market
available market liquidity available within a reasonable
conditions, BBPLC will poll a variety of different execution
timeframe.
venues, using automatic execution technology to identify
iii) For some more standardised products, BBPLC will
the best terms available to it at the point of trading for
usually select and price poll from a shortlist of dealing
the equity concerned. Other orders, including those
counterparties identified by it to be among the most
relating to international equities, that cannot be executed
competitive in the field concerned.
automatically will be dealt manually with another regulated
firm or via a Multilateral Trading Facility (MTF). This involves
Part 2: The execution venues that we use:
a manual search for reference trading prices via market
data feeds or by comparing prices offered by other market
Regulated Markets
participants. When an appropriate counterparty is identified,
Regulated Markets are subject to strict operating rules
the price is negotiated manually and executed on the best
governed by the relevant regulatory body in each
terms identified for the order in question. This may occur
jurisdiction in which they operate. Execution via a regulated
off-exchange.
market occurs in line with the rules of each exchange which
are designed to protect market participants. BBPLC uses
Debt Securities (aka “bonds”)
many Regulated Markets to execute client orders however
The debt market in some locations is not centrally organised,
it places significant reliance on the following Regulated
and for many non-government issues, is not a liquid market.
Markets when it executes deals on behalf of its clients.
In these circumstances the majority of debt issues or “bonds”
i) London Stock Exchange - All markets
must be dealt manually in order to identify current traders
ii) ISDX
in the security concerned. If liquidity is available and a price
iii) New York Stock Exchange
comparison made for the size of trade concerned, BBPLC will
iii) NASDAQ
route its order to the counterparty which provides the most
iv) Euronext
competitive overall pricing. For some smaller orders, BBPLC is
38
able to use automatic execution technology which will source
Multilateral Trading Facilities (“MTFs”)
the best bid and offer from a range of bond dealers.
MTFs are privately operated order matching systems which
act in a similar way to an order driven market. Similar to
General Risks:
regulated markets, these execution venues are subject
Volatility of Returns
to regulatory standards determined and governed by the
The value of investments and the amount of income
requirements of the EU Markets in Financial Instruments
derived from them may go down as well as up. All
Directive which is effective from 1st November 2007.
investments can be affected by a variety of factors,
including macro-economic market conditions such as the
Despite being a relatively new type of execution venue, the
interest or exchange rate environment, or other general
use of MTFs is expected to increase, both generally and in
political factors in addition to more company or investment
terms of BBPLC’s reliance upon them.
specific factors.
Off Exchange Trading with Regulated Firms
Liquidity and non-readily realisable securities
Off Exchange trading is the least regulated form of deal
Some investments may be very illiquid, meaning that they
execution. While trading occurs outside of the regulations of
are infrequently traded, and hence it may be difficult to
the Regulated Markets or MTF’s, we believe that executing off-
sell them on within a reasonable timeframe or at a price
exchange can result in enhanced terms for some deals. When
which reflects ‘fair’ value. In extreme cases an investment
dealing off-exchange on behalf of its clients, BBPLC takes
may be non-readily realisable. In this case there may be no
reasonable care to deal with reputable firms with which it has
secondary market available, and it may be difficult to obtain
generally maintained an ongoing dealing relationship.
any reliable independent information about the value and
risks associated with such an investment.
Significant reliance is placed by BBPLC on the following
forms of Off Exchange Trading when relevant to the service
Investment Leverage or Gearing
provided to its clients:
Use of borrowing to invest increases both the volatility
i) Systematic Internalisers, being firms who routinely offer
and the risk of an investment. This applies if a company
prices on listed investments outside of a Regulated
has significant borrowings, or if an investment vehicle
Market or MTF
otherwise allows an investor to gain much greater
ii) Operators of Collective Investment Schemes
economic exposure to an asset than is paid for at the point
iii) Other authorised Firms which trade in Debt Securities,
of sale. It also applies if an investor borrows money for the
and Over-The-Counter Derivatives
specific purpose of investing. The impact of leverage can be
as follows:
Off Exchange Trading may be conducted (among other
firms) with another member of the Barclays Group.
• movements in the price of an investment leads to much
greater volatility in the value of the leveraged position,
and this could lead to sudden and large falls in value;
Schedule B
• the impact of interest costs could lead to an increase in
Investment Risk Warning Notices
any rate of return required to breakeven; or a client may
The following risk warning notices are intended for
receive back nothing at all if there are significantly large
information purposes only. Please note that not all may be
falls in the value of the investment
relevant to the services BBPLC currently provide to you, and
BBPLC will abide by the scope of our existing agreed terms.
Foreign Exchange
For example, where you have not previously consented
Investments denominated in foreign currencies open
to our use of an investment type (such as derivatives)
up additional risks related to the relevant exchange rate.
these will continue to be outside of the scope of our
Movements in exchange rates may cause the value of an
investment powers.
investment and any related income to fluctuate either in a
favourable or unfavourable manner.
39
Taxation
Other smaller companies may not be subject to the rules
The tax treatment of an investment for individual clients
of a listing authority. Such companies are likely to be
is relevant only to the specific circumstances of each
high risk ventures and may have an unproven trading
client. There can be no guarantee that the nature, basis or
history or management team. These equity shares may
incidence of taxation may not change during the lifetime
not be readily sold, and it could be difficult to realise or to
of an investment. This may cause potential current or future
value them independently due to the lack of a secondary
tax liabilities, and you should be aware of the tax treatment
trading market.
of any investment product before you decide to invest.
If your circumstances are changing, or if you are uncertain
The risks involved in equity investment can often be
about any aspect of how an investment might relate to your
managed through investment via diversified investment
own tax position, please seek professional tax advice.
vehicles, or by investing directly in a wide range of different
companies, industries, countries and currencies.
Investment Specific Risks:
Equity Securities and Equity Funds
Debt Securities and Fixed Income Funds
Ownership of an equity security represents a direct stake
The value of debt investments (or ‘bonds’) can generally be
in the company concerned. Such an investment will
expected to be more stable than that of equity investments.
participate fully in the economic risk of the company and its
However in some circumstances, particularly when interest
value can therefore fall as well as rise. The price volatility of
rate expectations are changing, the value of most bonds is
equity markets can change quickly, and cannot be assumed
also volatile. The most common use of a bond is to provide
to follow historic trends. In adverse market conditions
a reliable yield, or source of income until maturity. For
irrecoverable capital losses could be incurred. In the worst
example the value of a bond can be adversely affected by a
case, a company could fail and if this happens its equity can
number of factors such as:
become worthless. These securities are commonly used by
• the issuer’s credit rating, which reflects their ability to
investors seeking longer term capital growth.
repay the amounts payable when they fall due;
• the market expectations about future interest and
Examples of typical company characteristics which could
inflation rates;
heighten equity investment risks are:
• amount of interest payable (the coupon);
• a low market capitalisation;
• the length of time until the debt falls due for
• a product set that is undiversified or reliance on single
markets as a major source of income;
• a significant reliance on borrowing as a source of finance;
repayment; or
• the seniority of a bond within the capital structure of a
company, and the quality of any security available.
• a significant level of fixed costs to pay, irrespective of
output, production or turnover levels;
• major income sources which are seasonal or `cyclical’ in
nature; and
• companies trading primarily in emerging markets
value of a bond are the perceived financial position of the
issuer, and changes to market interest rate expectations.
Bonds issued by major governments or supranational
bodies tend to be lower risk investments, while the risks of
particularly during poor market conditions, or in countries
other debt securities (such as those with emerging market
where legal property rights may be difficult to enforce.
or corporate issuers) can vary greatly. For example if an
issuer is in financial difficulty, there is an increased risk that
The equity of some smaller companies may trade in very small
they may default on its repayment obligations. In this event,
sums per share, and an investment into this type of equity will
little or no capital may be recovered and amounts repaid
usually involve a proportionately large difference between the
may take a significant amount of time to obtain.
market buying and selling price. The effect of this difference
means that an immediate sale may realise significant losses.
40
Schedule C
The fact that a new issue or a related security is being
Risk warning in respect of securities that may be subject
stabilised should not be taken as any indication of the level
to stabilisation
of interest from investors, nor of the price at which they are
Unless the Agreement states otherwise, BBPLC may, from
prepared to buy the securities.
time to time, carry out such transactions on your behalf,
where the price may have been influenced by measures
taken to stabilise it. You should read the explanation below
carefully. This is designed to help you judge whether you
wish your funds to be invested at all in such securities and,
if you do, whether you wish:
(i) to be consulted before we carry out any such
transaction on your behalf; or
(ii) to authorise us to carry out any such transaction on
your behalf without first having to consult you.
What is stabilisation?
Stabilisation enables the market price of a security to be
maintained artificially during the period when a new issue
of securities is sold to the public. Stabilisation may affect
not only the price of the new issue but also the price of
other securities relating to it.
The FCA allows stabilisation in order to help counter the fact
that, when a new issue comes onto the market for the first
time, the price can sometimes drop for a time before buyers
are found.
Stabilisation is carried out by a “stabilisation manager”
(normally the firm chiefly responsible for bringing a new
issue to market). As long as the stabilisation manager
follows a strict set of rules, he is entitled to buy back
securities that were previously sold to investors or allotted
to institutions which have decided not to keep them. The
effect of this may be to keep the price at a higher level
than it would otherwise have been during the period
of stabilisation.
The stabilisation rules:
(i) limit the period when a stabilising manager may
stabilise a new issue;
(ii) fix the price at which he may stabilise (in the case of
shares and warrants but not bonds); and
(iii) require him to disclose that he may be stabilising but
not that he is actually doing so.
41
Services for disabled customers
We are committed to providing equal access to our services for all customers with disabilities. Full details of Barclays services and facilities
can be found in our brochure ‘Disabled customers – making our services available’.
All of our literature can be provided in Braille, large print or audio tape on request, within a reasonable timescale, by calling 0800 015 4449*
or local dial number 0333 2027570*.
*Calls will cost no more than 6p per minute plus your phone company’s access charge. International calls will be charged at a higher rate –
please check with your telecoms provider. Calls to 0800 numbers are free from UK land lines and personal mobiles. Calls may be recorded
so that we can monitor the quality of our service and for security purposes. Our opening hours are 7.30am to 7pm Monday to Thursday,
7.30am to 6pm on Friday (excluding bank holidays) and 9.30am to 12.30pm on Saturday.
Barclays Stockbrokers is a trading name of Barclays Bank PLC which is a member of the London Stock Exchange and ISDX (Registered No. 1986161 Registered VAT No. 243 8522 62).
Barclays Bank PLC is registered in England and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation
Authority (Registered No. 1026167). The registered address is 1 Churchill Place, London E14 5HP.
The Barclays Stockbrokers SIPP is administered by AJ Bell Management Limited. AJ Bell Management Limited is registered in England No. 3948391.Registered Office: Trafford House,
Chester Road, Manchester M32 0RS. Authorised and regulated by the Financial Conduct Authority and on the FCA Register under FCA Register number 211468. Sippdeal Trustees
Limited is a wholly owned subsidiary of AJ Bell Management Limited, registered in England No. 4050222. Registered Office: Trafford House, Chester Road, Manchester M32 0RS.
Sippdeal Trustees Limited does not conduct any regulated activities, and is, therefore, not regulated.
Item Ref: 9904194. March 2017