Download Existing ISA - New money top up with no changes

Private & Confidential
Name
Address
Date
Dear Name
As part of your review / During our discussions, we identified that you wanted to discuss
making a further payment to your current/ new Openwork / Zurich …..enter name of platform
account.
We discussed whether there had been any changes to your personal or financial
circumstances and objectives since our last insert – review / meeting / discussions etc. You
confirmed that there haven’t been any changes /…OR. explain any changes, including any
change in objective that has resulted in the recommendation of a new tax wrapper.
Attitude to Risk
You agreed that your attitude to risk remains as / has changed to, Cautious / Balanced / Adventurous
/ Speculative which is an appropriate description, considering the level of risk you are prepared to
take with any investment you make.
For more information on the Openwork risk categories, please refer to ‘Making More of your Money’
booklet.
INCLUDE IF LAT/REPLACEMENT Why move your existing investment(s)
I carefully considered your existing select product(s) in particular whether they meet your current
investment objectives and at what cost. Taking this into account, together with any benefits you may
lose, alternatives available and any costs of moving, I recommended that you should move your
existing arrangements. The outcome of my analysis can be found in more detail in appendix B.
INCLUDE IF PENSION LAT / REPLACEMENT, CLIENT IS UNDER AGE 55 AND EXIT
PENALTY IS GREATER THAN 1%
Maximum pension exit penalty cap
From 31 March 2017, the Financial Conduct Authority (FCA) and DWP have limited the early exit
charges you pay to 1% when moving your pension fund to another provider.
This means that if you had waited until age 55 to transfer your pension funds, the exit penalty would
be £…enter amount instead of £…enter amount.
You understand the difference and are happy to accept the higher exit penalty because….. give
details to support why the client is willing to proceed now – e.g. it’s a negligible difference with no
material impact or specify the other reasons etc
To help meet your aims and objectives, I recommended that you invest further into the following:
Total to be invested
Zurich/Openwork Platform
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£
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New contributions INCLUDE IF NEW MONEY CONTRIBUTIONS RECOMMENDED
Platform account
Regular
Frequency
£
Lump sum
£
ADD ROW(S) TO TABLE WHERE MULTIPLE ACCOUNTS BEING RECOMMENDED
New Employer contributions INCLUDE IF EMPLOYER CONTRIBUTIONS TO PENSION
Platform account
Regular
Retirement/Pension Account
£
Frequency
Lump sum
£
Assets to be transferred to Platform
Platform account
Previous provider
Product
Lump sum
£
ADD ROW(S) TO TABLE WHERE MULTIPLE PLANS BEING TRANSFERRED
IF NEW TAX WRAPPER INCLUDE RELEVANT DESCRIPTOR PARAGRAPH – see appendix C
Investment solution
As there has been no change in your attitude to risk, we agreed that you would continue to invest in
the fund(s) I previously recommended / you chose to meet your investment strategy and objectives.
This is / These are…enter the name of fund(s) previously selected.
INCLUDE IF NO CHANGE TO FUNDS You should refer to the fund information previously provided
for details of the investment objectives and associated risks.
INCLUDE IF FUND CHOICE IS CHANGING As there has been a change in your attitude to risk, we
agreed what would be the most appropriate investment strategy to meet your objectives and I have
recommended that you invest in.....enter the name of your fund(s) being recommended.
INCLUDE IF OMNIS MANAGED PORTFOLIO SERVICE (ZURICH ONLY)
Omnis Select ATR Managed Portfolio Service
I recommended this managed portfolio service which aims to offer you access to the best and most
consistent fund managers in the business. It manages risk by ensuring that you do not put all your
eggs in one basket and allows you to invest in a portfolio of investments that:



is actively managed to reduce or minimise the risk you take with your investment in times of
uncertainty based on the day to day assessment of market conditions
gives the potential for the most consistent level of return as well as benefit from short term
opportunities
and
has the different fund holdings adjusted to ensure the mix of funds stay in line with the
amount of risk you’re comfortable taking
Service charge
The expected cost of the Omnis Managed Portfolio Service is made up of two parts:

Firstly, the explicit cost of providing the management of your portfolio, as well as the monthly
updates, quarterly round ups and an annual report. This is 0.25% plus VAT a year.
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
Secondly, the underlying fund management charges, which will vary as a result of the active
management of the portfolio and any adjustments made to the different fund holdings.
Should there be insufficient un-invested cash to meet the payment of the charges, Zurich will deduct
the cost for this service by selling down the relevant assets in accordance with the Platform Accounts:
Platform Account
Sell down of assets
ISA
Proportionate disinvestment across all funds
Investment Account
Least volatile stock
Retirement Account
Least volatile stock
DELETE ROW AS APPROPRIATE
You confirmed that you are willing to pay for this service by signing the Omnis Managed Portfolio
Service Declaration.
Please refer to the Omnis Managed Portfolio Service Brochure I gave you for further details about the
service I recommended. This explains how the service works, how you’ll be kept informed about the
markets and changes to your portfolio as well as the associated risks.
INCLUDE IF GRAPHENE MODEL PORTFOLIO
Select recommended portfolio
I recommended this portfolio/combination of portfolios which aim to offer you cost-effective access to
the best and most consistent fund managers in the business. It manages risk by ensuring that you do
not put all your eggs in one basket and automatically rebalances your portfolio so that the risk
remains right for you now and in the future I recommended the option which offers: select portfolio
INCLUDE IF OTHER RECOMMENDED FUNDS
Select other recommended fund
I recommended ….set out full reasons for the specific fund selection.
INCLUDE FOR ALL RECOMMENDED FUNDS (NOT FOR OMNIS MANAGED PORTFOLIO
SERVICES)
Please refer to the fund information I gave you for further details about the funds I recommended.
This will explain the investment objectives and the associated risks.
Risks
We reviewed the continuing risks associated with your enter name of existing platform account(s) as
well as the benefits. You are fully aware of all of the risks and the ongoing charges, as well as the
fees you are paying for the service you receive.
For full details of my original Openwork / Zurich enter name of existing platform account(s)
recommendation, the benefits and associated risk, please refer my Suitability Report dated enter date
of original report.
Other important considerations
As part of our discussions, we also considered and agreed the following:
INCLUDE IF ISA ALLOWANCE HAS NOT BEEN FULLY USED Individual Savings
Account (ISA) Allowance
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An Individual Savings Account is one of the most tax efficient investments available for you to invest
in. You have not used your full ISA allowance for this year and £enter amount can still be used. Any
unused ISA Allowance cannot be carried forward to the next tax year if it’s not fully utilised.
Taxation and Legislation changes
I explained the taxation implications of my recommendation and confirmed that this area will be
reviewed as part of my ongoing advice service. Nothing in this letter should be construed as the
provision of specific tax advice. Information contained in this letter concerning taxation and related
matters are based on Openwork’s understanding of the present law. UK Government reserves the
right to amend the preferential treatment of any investment, pension or trust arrangement in the
future.
My service & remuneration
We agreed that you would pay an initial fee of £ enter total initial fee for the new amount you’re
investing with an ongoing fee of £ enter fixed yearly amount or total amount for 1st years of ongoing
fees for the top up a year.
INCLUDE IF LAT/ REPLACEMENT It’s important to note that where my advice includes moving an
existing investment, the initial fee amount will vary based on the actual amount of funds received.
INCLUDE IF % ONGOING SERVICE AGREED The ongoing fee will vary each year and could
increase if the fund grows in value. The actual amount deducted will depend on the performance and
value of the underlying funds you are investing in.
You understand that …..insert one of the following:
INCLUDE IF ONGOING SERVICE FEE AGREED….my ongoing service commitment will continue to
help ensure your investments remain in line with your objectives both now and in the future.
INCLUDE IF NO ONGOING SERVICE FEE AGREED…any future advice you receive will have to be
paid for on an ad-hoc basis.
Openwork’s commitment
It is important to reiterate that Openwork is committed to providing financial advice which is suitable
for your needs based on the information that you have given. Openwork guarantees to act in
accordance with all consumer rights in the event of any dispute. We intend to deliver high-quality,
suitable advice and if we don’t, we’ll put it right.
Important documents
As part of my recommendation, I reviewed the following important documents with you as well as
those shown in the covering letter:



Illustrations for recommended investments/Charges information
Fund Fact Sheet(s) and / or Key Investor Information Document(s)( If applicable )
Include name of any additional documents given to the client
INCLUDE IF APPROPRIATE
As you selected to access some of the documentation electronically, I would confirm that these can
be found at:
 Openwork.uk.com/wrap
INCLUDE IF ZURICH PLATFORM
I also explained that you will have full online access to the important Zurich documents now that your
Zurich Intermediary Platform has been set up.
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Insert closing paragraph
Yours sincerely
Adviser Name + Role
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INCLUDE IF LAT / REPLACEMENT
Appendix B - Understanding your existing investments & pensions
savings
As outlined above, I recommended that you move existing investments as part of my advice. There
are some important considerations which you need to be aware of and so I have outlined below the
reasons for my advice and what this means for you.
INCLUDE IF LAT ONLY
Please read this section in conjunction with any Client Report and fund assessment reports I gave
you.
Reason for my recommendation to move your existing investment(s)
SELECT AS APPROPRIATE OR SUMMARISE THE OVERALL REASONS FOR YOUR
RECOMMENDATION TO MOVE





This investment no longer meets your objectives because ...explain why including what
options were considered and why amending the existing investment is no longer appropriate
INCLUDE IF PENSION DEATH BENEFITS…you wanted to benefit from pension savings that
can be:
 passed down family generations under a pension tax wrapper – sometimes known as
‘Family Pensions’
 retained in a taxed advantaged environment until such time they’re needed
 passed down to the next generation on the nominee’s or successor’s death if not
needed in their lifetime
 used to provide flexible income as and when needed, paid tax free if the predecessor
dies before age 75
INCLUDE IF PENSION LIFESTYLE FUND…you wanted to benefit from investing your
pension savings in a portfolio / fund / blend of funds that can offer greater investment growth
potential.
As you do not intend to buy an annuity or seek a guaranteed income in the future, remaining
in a pension fund that gradually moves the investment to cash to offset the risk ahead of your
retirement age will not offer the investment growth you are looking for.
You did consider the possibilities of moving to a suitable alternative fund within the existing
pension but confirmed that you did not want to be responsible for making your own
investment decisions.
The level of risk is no longer appropriate for your financial plans because... explain
product/fund risk mis-match and what options were considered/discounted with current plan
The investment is no longer suitable for your tax position because..explain why an existing
investment is no longer appropriate and headline benefits of new recommendation
You can achieve your investment objectives in a more cost-effective way by moving this
investment because...explain cost differential
You want to consolidate your existing investments in order to achieve cost-effective access to
the most suitable investment wrappers. You want to be able to agree an overall investment
approach for all of your investments and have the ability to change and diversify your
investments as your circumstances or market conditions change. Cannot be used in isolation
for a more expensive solution or where only one investment is moved
CLIENT AGED 53 OR OVER

Help you manage your future spending / access strategy...demonstrate and justify why
moving to platform and the future options available, along with the service they’ll receive, will
be of benefit to the client
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Existing plan considerations REPEAT THIS TABLE FOR ALL PLANS BEING MOVED
Provider / Product
Charges
Charges are an important factor as ultimately the costs associated with an
investment will affect the amount you get back.
IF LAT - The enclosed Client Report confirms that the new plan has lower /
higher similar charges
IF NON LAT – I compared the costs of your existing investment versus the
new solution and you can find details in the comparison below:
Provider/Product
Running costs
Fund management
costs
Existing investment
New investment
initial charges / allocation
rates / annual charges / admin
fees etc
initial fund charges / bid offer
spread / annual charges / fund
rebates / other expenses etc
initial charges / allocation
rates / annual charges / admin
fees etc
initial fund charges / bid offer
spread / annual charges / fund
rebates / other expenses etc
IF HIGHER CHARGES (LAT AND NON LAT)
Although the charges will be higher going forward I recommended that you
continue with the new investment because…explain why additional charges
are justified/what features/benefits of the new investment outweigh the
additional cost and are not available from the existing investment
INCLUDE IF HIGHER CHARGES & PENSION DEATH BENEFITS
ONLY…the way the pension benefits can be paid on death, in addition to any
potential future income requirements, is your main priority and feel that
having all available options definitely outweighs the additional costs you now
have to pay.
INCLUDE IF HIGHER CHARGES & PENSION LIFESTYLE FUNDS
ONLY…the way the pension lifestyle fund works, and how you intend to
access your pension savings in the future, no longer suits your investment
strategy and objectives.
You feel that having funds fully invested and not moving to cash the closer
you get to taking your pension benefits definitely outweighs the additional
costs you now have to pay.
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Existing plan considerations
SELECT AS APPROPRIATE
Provider / Product
Quality / Performance

The fund(s) you are leaving behind are performing well against the
sector average. However, I recommended that you continue with the
new investment because…explain what features/benefits of the new
investment outweigh the decision to stay with well performing funds
which are not available from the existing investment.

The performance of the investment has been poor. This can be
shown by <provide summary of substantiated performance analysis
against sector>
Penalties /Lost benefits/guarantees

You will incur a penalty of £amount as a result of moving your
investment. However, I recommended that you continue with the
new investment because…explain why it’s still appropriate for the
client to move their investment despite the charge

You will lose insert all lost benefits/guarantees as a result of moving
this investment. However, I recommended that you continue with the
new investment because explain why it’s still appropriate for the
client to move their investment despite the loss of
benefits/guarantees
Pension Earmarking Order

I identified that an earmarking order applies to this pension which will
transfer to your new investment. However, I recommended that you
continue with the new investment because give details of your
discussions with the client about how this will impact their pension
planning both now and in the future.
Transferring a pension whilst in ill health
You have confirmed that you are in ill health and we discussed that HMRC
take the view that if you (knowing you are in ill health), make a pension
transfer and die within 2 years of the transfer, a chargeable lifetime transfer
can arise. This means that the whole transfer value could be deemed as
reducing the value of your estate and potentially be liable to IHT.
However, I recommended that you continue with the new investment
because….. give details of your discussions with the client about any
potential IHT liability as a result of transferring their pension, what this will
mean to them and how they feel.
Impact on taxation, allowances or any other means tested benefits
INCLUDE IF TAXATION IMPLICATIONS
Whilst I cannot provide specific tax advice, based on the calculations we discussed, you are likely to
incur a tax liability of £amount as a result of moving your investment. However, I recommend that you
continue with my recommendations because…explain why it’s still appropriate for the client to move
their investment despite the tax liability
INCLUDE IF ALLOWANCES AFFECTED
My recommendation is likely to impact on your select allowances affected. However, I recommended
that you continue with the new investment because…explain the extent of the impact and why it’s still
appropriate for the client to move their investment despite the impact
INCLUDE IF MEANS TESTED BENEFITS AFFECTED
As a result of my recommendations…explain any impact on means tested benefits, or risks such as
bond moving to another tax wrapper which will be assessed for any means tested benefits
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DELETE THIS PAGE ONCE REPORT COMPLETED SELECT WRAPPER(S) AS
APPROPRIATE APPENDIX
C - Tax Wrapper Descriptor
Individual Savings Account (ISA)
It is one of the most tax efficient ways for you to invest and allows you to access funds at any time.
There is no fixed term but the amount you can invest each year is limited.
INCLUDE IF ISA TO BE FUNDED EACH YEAR BY DISINVESTMENT
We agreed that your annual ISA allowance would be maximised each year by topping up from funds
held in your Select product.
Investment Account
Although not as tax efficient as an Individual Savings Plan (ISA), you can make a certain amount of
gain each year before you have to pay capital gains tax. It has no fixed term and the amount you can
invest is not limited.
Pension / Retirement Account
A tax-efficient way to invest that has the potential to benefit from tax relief on your contributions. A
proportion of your fund will be available, tax free when you wish to take benefits and you have flexible
access to your funds from age 55.
INCLUDE IF APPROPRIATE & OPENWORK PLATFORM Discretionary Trust
The pension has been written in trust using a Discretionary Trust drawn up by your Solicitor. This will
ensure that upon your death the benefits are paid more quickly and will normally avoid any
inheritance tax liability.
INCLUDE IF APPROPRIATE & ZURICH PLATFORM Discretionary Trust
The pension has been written in trust using a Discretionary Trust. This will ensure that upon your
death the benefits are paid more quickly and will normally avoid any inheritance tax liability. It allows
the payment of any lump sum death benefits and there’s no provision for paying the proceeds on
death in any other way. The trust isn’t designed to be revoked and you will need to seek professional
legal advice to see if anything could be done.
Workplace Pension
We established that Select as appropriate
Give details of your discussions covering the above and how this impacted on your advice. Please
note that where the client is a member of an employer pension you will need to cover why they are
not topping up including why not transfer an existing pension plan to the employer’s scheme.
AQT/RPS approval is required for any advice where the client is not joining or opting out of an
employers’ scheme
Onshore Investment Bond
An investment bond allows withdrawals of up to 5% per year (for up to 20 years) without generating a
liability to UK income tax. It gives you control over when any tax is paid and can be placed in a Trust.
Trusts provide a number of ways of reducing how much Inheritance tax must be paid on your death.
Offshore Investment Bond
An investment bond allows withdrawals of up to 5% per year (for up to 20 years) without generating a
liability to UK income tax. This bond is not subject to corporation tax on any gains made within the
fund when compared to the onshore bond. Put simply, they have the potential for better returns.
IMPORTANT: REFER TO MAIN SUITABILITY REPORT TEMPLATE FOR TRUST WORDING IF
INVESTMENT BOND TO BE WITHIN A TRUST
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