Client Agreement document for Financial Choices IFA Ltd INVESTMENT SERVICES Financial Choices IFA Ltd is permitted to advise on and arrange (bring about) deals in investments. With regard to investments which we have arranged for you, these will not be kept under review, but we will advise you upon your request. However, we may contact you in the future by means of an unsolicited promotion (i.e. where you had not expressly requested it) should we wish to contact you to discuss the relative merits of an investment or service which we feel may be of interest to you. Financial Choices IFA Ltd does not handle clients’ money. We never accept a cheque made payable to us or handle cash (unless it is payment in settlement of charges or disbursements for which we have sent you an invoice). CLIENT CATEGORISATION In providing investment services to you, we will categorise you as an retail client. The type of client category will determine the level of protections afforded to you under the regulatory system. As a Retail Client the regulatory protections available to you are determined by this category and will be the highest available. Where we have categorised you other than as a ‘retail client’ (see above), you may request re-categorisation under a client category which benefits from a higher degree of protection. However, we reserve the right to agree to such a re-categorisation on a caseby-case basis, and where we agree to do so it does not necessarily mean that you will have a right of access to the Financial Ombudsman Service. CONFLICT OF INTERESTS Financial Choices IFA Ltd offers advice in accordance with that disclosed to you in our Initial Disclosure Document. Occasions may arise where we or one of our other clients have some form of interest in business being transacted for you. If this happens or we become aware that our interests or those of one of our other clients conflict with your interests, we will write to you and obtain your consent before we carry out your instructions, and detail the steps we will take to ensure fair treatment.
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TERMINATION OF AUTHORITY You or we may terminate our authority to act on your behalf at any time, without penalty. Notice of this termination must be given in writing and will take effect from the date of receipt. Termination is without prejudice to any transactions already initiated, which will be completed according to the Client Agreement unless otherwise agreed in writing. You will be liable to pay for any transactions made or carried out prior to termination and any fees which may be outstanding.
RIGHT TO WITHDRAW In the case of a non-packaged product ISA or Pep recommended (e.g. a direct equity ISA), we will inform you in writing of any right to withdraw or cancel you may have or, if it is the case, we will inform you in writing that no such rights will apply.
CLIENTS RISK You are advised that because investments can fall as well as rise, you may not get back the full amount invested. Past performance is not a guide to future performance.
HOW WE CHARGE YOU FOR OUR SERVICES Our income normally comes from either commission from the product providers (e.g. life assurance companies) we write business with, or fees paid to us by our clients. Whenever commission is available to us, you can choose whether to pay us by allowing us to keep the commission, or by paying us a fee instead. This is in line with standard industry practice. We will tell you how much the commission is before the transaction. If you choose to pay us by commission, we will keep the commission and may charge you a fee if this has been agreed. If you choose to pay us on a fee basis, we will agree its basis, frequency and method with you in writing before we carry out any work that we charge you for. We may also receive some form of benefit if we introduce business to a product provider or another firm. We will tell you before the transaction if we are likely to receive some form of benefit from recommending any product to you, or from working with any product provider or firm. We will provide further details on the cost of our services in a separate document. ACCOUNTING TO YOU We will confirm to you in writing the basis or our reason for recommending the transaction executed on your behalf. We will also make arrangements for all your investments to be registered in your name unless you first instruct us otherwise in writing. We will forward to you all documents showing ownership of your investments as soon as practicable after we receive them;
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where a number of documents relating to a series of transactions is involved, we will normally hold each document until the series is complete and then forward them to you. INVESTMENT OBJECTIVES & RESTRICTIONS Following the issue of this document, any subsequent advice or recommendation offered to you will be based on your stated investment objectives, acceptable level of risk and any restrictions you wish to place on the type of investments or policies you are willing to consider. Details of your stated investment objectives will be identified during our discussions with you and confirmed in the suitability report that we will issue to you to confirm our recommendation. Unless confirmed in writing, to the contrary, we will assume that you do not wish to place any restrictions on the advice we give you.
DATA PROTECTION STATEMENT The information you have provided is subject to the Data Protection Act 1998 (the “Act”). By signing this document you consent to us or any company associated with us (such companies include, for the avoidance of doubt, Bankhall Investment Associates Limited and any member of its group and/or companies, persons or entities of any nature whatsoever with which it is associated or allied from time to time) processing, both manually and by electronic means, your personal data for the purposes of providing advice, administration and management. “Processing” includes obtaining, recording or holding information or data, transferring it to other companies associated with us, product providers, the FSA or any other statutory, governmental or regulatory body for legitimate purposes including, where relevant, to solicitors and/or other debt collection agencies for debt collection purposes and carrying out operations on the information or data. We may also contact you or pass your details to other companies associated with us to contact you (including by telephone) with details of any other similar products, promotions, or for related marketing purposes in which we think you may be interested The information provided may also contain sensitive personal data for the purposes of the Act, being information as to your physical or mental health or condition; the commission or alleged commission of any offence by you; any proceedings for an offence committed or alleged to have been committed by you, including the outcome or sentence in such proceedings; your political opinions, religious or similar beliefs, sexual life; or your membership of a Trade Union. Please tick this box to confirm your consent to us or any company associated with us processing any such sensitive personal data. If you are happy for us or any company associated with us to contact you for marketing purposes by e-mail, telephone, post or SMS, please tick this box. If at any time you wish us or any company associated with us to cease processing your personal data or sensitive personal data, or contacting you for marketing purposes, please contact The Data Protection Officer on 01227274374 or in writing at Financial Choices IFA Ltd 1 Thanet Way Whitstable Kent CT5 3JF
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You may be assured that we and any company associated with us will treat all personal data and sensitive personal data as confidential and will not process it other than for a legitimate purposes. Steps will be taken to ensure that the information is accurate, kept up to date and not kept for longer than is necessary. Measures will also be taken to safeguard against unauthorised or unlawful processing and accidental loss or destruction or damage to the data. Subject to certain exceptions, you are entitled to have access to your personal and sensitive personal data held by us. You may be charged a fee (subject to the statutory maximum) for supplying you with such data. MODE OF COMMUNICATION
We will enter into communication with you through whatever means are convenient to you and us, including face-to-face, telephone, e-mail and other acceptable electronic communication methods.
CLIENTS CONSENT I understand and consent to the above terms and I hereby authorise the transfer of information, as described above on a confidential basis when warranted between such third parties. I agree that the Client Agreement will come into effect from the date of acceptance of this agreement. Client Name(s) ____________________________________________________________ Client signature(s) ____________________________________________________________ Date of signature(s) ____________________________________________________________ Date of issue ____________________________________________________________
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about our services Financial Choices IFA Ltd
Amphenol Business complex, 1 Thanet Way, Whitstable CT5 3JF
1. The Financial Services Authority (FSA) The FSA is the independent watchdog that regulates financial services. It requires us to give you this document. Use this information to decide if our services are right for you.
2. Whose products do we offer? Investment X
We offer products from the whole market. We only offer products from a limited number of companies. Ask us for a list of the companies and products we offer. We only offer products from a single group of companies name of single company.
Insurance X
We offer products from a range of insurers for Term Assurance, Permanent Health Insurance, Critical illness, Private Medical Insurance, Mortgage Payment Protection and Household Insurance. We can only offer products from a limited number of insurers for . Term Assurance, Permanent Health Insurance, Critical illness, Private Medical Insurance, Mortgage Payment Protection and Household Insurance. Ask us for a list of the insurers we offer insurance from. We can only offer a products from a single insurer for Term Assurance, Permanent Health Insurance, Critical illness, Private Medical Insurance, Mortgage Payment Protection and Household Insurance.
Mortgages, Lifetime Mortgages and home reversion schemes X
We offer mortgages from the whole market. We can only offer mortgages from a limited number of lenders. Ask us for a list of the lenders we offer mortgages from. We can only offer mortgages from a single lender .
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3. Which service will we provide you with? Investment X
We will advise and make a recommendation for you after we have assessed your needs. You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed. We will provide basic advice on a limited range of stakeholder products and in order to do this we will ask some questions about your income, savings and other circumstances but we will not: • Conduct a full assessment of your needs; Offer advice on whether a non-stakeholder product may be more suitable
Insurance X
We will advise and make a recommendation for you after we have assessed your needs [for] [list the types of non-investment insurance contracts]. You will not receive advice or a recommendation from us [for] [list the types of non-investment insurance contracts]. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.
Mortgages, Lifetime Mortgages and home reversion schemes X
We will advise and make a recommendation for you after we have assessed your needs. You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.
4. What will you have to pay us for our services? Investment X
Before we provide you with advice, we will give you our keyfacts guide 'about the cost of our services'. We will tell you how we get paid, and the amount, before we carry out any business for you.
Insurance A fee X
No fee for mid term contract and claims handling.
You will receive a quotation which will tell you about any other fees relating to any
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particular insurance policy. [Lifetime] Mortgages [and home reversion schemes] No fee. We will be paid by commission from the Company X
A fee of £1000 payable at the outset for a lifetime mortgage or home reversion scheme. We will also be paid commission from the lender/company.
You will receive a key facts illustration when considering a particular [lifetime] mortgage, [or further information about a particular home reversion scheme] which will tell you about any fees relating to it. Refund of fees If we charge you a fee, and your lifetime mortgage or home reversion scheme does not go ahead, you will receive: A full refund if the lender/company rejects your application. A refund of £ if your application falls through. No refund if you decide not to proceed. 5. Who regulates us? Financial Choices IFA Ltd Amphenol Business Complex, 1 Thanet Way Whitstable CT5 3JF is authorised and regulated by the Financial Services Authority. Our FSA Register number is 461887. Financial Choices IFA Ltd permitted business is Advising on, arranging or bringing about transactions in Pensions, Investments, Savings, Mortgages, Life Assurance and other forms of Non Investment insurance contracts You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234. Home reversion schemes are not regulated by the FSA. 6. Loans and ownership Kevin & Meg Bodle own Financial Choices IFA Ltd 60% and 40%
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7. What to do if you have a complaint If you wish to register a complaint, please contact us: In writing: Write to Financial Choices IFA Ltd Amphenol Business Complex, 1 Thanet Way Whitstable CT5 3JF. By phone: Telephone 01227 274374 If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service. The Financial Ombudsman Service does not consider complaints about home reversion schemes. 8. Are we covered by the Financial Services Compensation Scheme (FSCS)? We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Investment Most types of investment business are covered for 100% of the first £30,000 and 90% of the next £20,000 so the maximum compensation is £48,000. Insurance Insurance advising and arranging is covered for 100% of the first £2,000 and 90% of the remainder of the claim, without any upper limit. For compulsory classes of insurance, insurance advising and arranging is covered for 100% of the claim, without any upper limit. [Lifetime] Mortgages [and home reversion schemes] Mortgage advising and arranging is covered for 100% of the first £30,000 and 90% of the next £20,000 so the maximum compensation is £48,000. [Home reversion schemes are not covered by the Financial Services Compensation Scheme.] Further information about compensation scheme arrangements is available from the FSCS. Message from the Financial Services Authority Think carefully about this information before deciding whether you want to go ahead. If you are at all unsure about which lifetime mortgage or home reversion scheme is right for you, you should ask your adviser to make a recommendation. Please remember that home reversion schemes are not regulated by the FSA.
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about the cost of our services Financial Choices IFA LTD
Last updated 01/12/2007
Amphenol Business Complex 1 Thanet Way Whitstable Kent CT5 3JF 1. The Financial Services Authority (FSA) The FSA is the independent regulator of financial services. It requires us to give you this document when advising on some savings and investments. You may use this information to compare value for money, to shop around and to decide which firm to use. 2. Our services We offer an initial discussion (without charge) when we will describe our services more fully and explain the payment options. If you decide to go ahead, we will: gather and analyse personal information about you, your finances, your needs and objectives; recommend and discuss any action we think you should take and, with your agreement, arrange relevant investments for you.
3. What are your payment options? Not all firms charge for advice in the same way. We will discuss your payment options with you and answer any questions you have. We will not charge you anything until you have agreed how we are to be paid. We have ticked the payment options we offer.
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Paying by fee. Whether you buy a product or not, you will pay us a fee for our advice and services. If we also receive commission from the product provider when you buy a product, we will pass on the full value of that commission to you in one or more ways. For example, we could reduce our fee; or reduce your product charges; or increase your investment amount; or refund the commission to you.
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Paying by commission (or product charges). If you buy a financial product, we will normally receive commission on the sale from the product provider. Although you pay nothing up front, that does not mean our service is free. You still pay us indirectly through product charges. Product charges pay for the product provider’s own costs and any commission. These charges reduce the amount left for investment. If you buy direct, the product charges could be the same as when buying through an adviser, or they could be higher or lower. We will tell you how much the commission will be before you complete an investment, but you may ask for this information earlier.
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x
Paying by a combination of commission and fee. In some circumstances, we also charge a fee on top of any commission we might receive.
4. How much might our services cost? If you choose the fee option We will agree the rate we will charge before beginning work. We will tell you if you have to pay VAT. Our typical charges are: Principal/Director/Partner £150-200 per hour Financial adviser £100-150 per hour Administration £25 per hour You may ask us for an estimate of how much in total we might charge. You may also ask us not to exceed a given amount without checking with you first. If you choose the combination of commission and fee option We will charge you a combination of fees and commission. The actual amounts will depend on the service provided to you, but will not exceed the total of the maximum fees set out above and the maximum commission set out in the tables below. If you choose the commission option Tables 1 and 2 show examples of the amounts of commission we could receive (or the equivalent we earn through product charges) and compare those amounts with the market average (see notes 1 & 2 at the end of this section 4). The amounts vary according to: the type of product, the amount you invest, and (sometimes) how long you invest for, or your age when you start the product. We will confirm the actual amount to you before you buy a product. Table 1 - Commission if you invest monthly Example term or Comparison of costs Products age
Our maximum
Collective investments (e.g. unit trusts)
Any
Market average
Savings and investments 3% of all 0% of all payments plus payments plus 1% of your 1% of your fund fund value value each year each year from from year 1 year 1
Example based on £100 per month This shows the maximum costs of our sales and advice for a monthly investment or premium of £100, ignoring any changes in fund value
£36.00 each year plus £12.00 in year 1, £24.00 in year 2, and so on (The actual amount in later years will vary in line with your fund value)
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Endowments
Whole of life assurance
10 Year Term
Age 40
25 Year Term Personal and Stakeholder pensions 10 Year Term
63.3% of each 33.2% of each of of the first 16 the first 16 month's month's payments payments Protection 160% of the first 12 month's payments plus 1.5% of all payments from month 49
105.1% of the first 12 month's payments plus 1.5% of all payments from month 49
Saving for retirement 66% of the first 12 month's 0.7% of your payments plus fund value each 0.75% of your year from year 1 fund value each year from year 1 37.9% of the 0.2% of the first first 12 month's 12 month's payments plus payments plus 1% of your 1% of your fund fund value value each year each year from from year 1 year 1
£1012.80 spread evenly over the first 16 months
£1920.00 initially plus £18.00 each year from month 49
£792.00 initially plus £9.00 in year 1, £19.20 in year 2, and so on (The actual amount in later years will vary in line with your fund value) £454.80 initially plus £12.00 in year 1, £24.00 in year 2, and so on (The actual amount in later years will vary in line with your fund value)
Personal Pension Schemes Not all types of personal pension scheme are included in the information above about Commissions. Instead only the more common types are included, and schemes such as SIPPs are not. Before we start advising you, we will inform you of how much we could be paid if we do recommend one of these products to you. You can also ask us about commission we might receive on underlying investments we recommend you hold within a SIPP if not contained in the information above. Table 2 - Commission if you invest a lump sum Products
Example term or age
Comparison of costs
Example based on £10 000 lump sum
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Our maximum
Collective investments (e.g. unit trusts)
Any
Investment bond
Any
Personal and Stakeholder pensions
Any
Market average
Savings and investments 3% of the amount you 0.8% of your invest plus 1% fund value each of your fund year from year 1 value each year from year 1 6% of the amount you 0.9% of your invest plus 1% fund value each of your fund year from year 1 value each year from year 1 Saving for retirement 6.4% of the amount you 0.7% of your invest plus 1% fund value each of your fund year from year 1 value each year from year 1
This shows the maximum costs of our sales and advice for a lump sum investment of £10 000, ignoring any changes in fund value £300.00 plus £100.00 each year from year 1 (The actual amount in later years will vary in line with your fund value) £600.00 plus £100.00 each year from year 1 (The actual amount in later years will vary in line with your fund value) £640.00 plus £100.00 each year from year 1 (The actual amount in later years will vary in line with your fund value)
Personal Pension Schemes Not all types of personal pension scheme are included in the information above about commissions. Instead only the more common types are included, and schemes such as SIPPs are not. Before we start advising you, we will inform you of how much we could be paid if we do recommend one of these products to you. You can also ask us about commission we might receive on underlying investments we recommend you hold within a SIPP if not contained in the information above.
Annuities
Income drawdown
Any
Any
At retirement 2.8% of the 1.4% of the amount you amount you invest invest 5.6% of the amount you invest plus 0.8% of your 1.5% of your fund value each fund value each year from year 1 year from year 1
£280.00 £560.00 plus £150.00 each year from year 1 (The actual amount in later years will vary in line with your fund value)
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Notes: 1. The market average figures are calculated by the FSA using actual data from a representative sample of regulated firms and are shown in a way that you may compare with our own maximum rates. The market average figures will be updated by the FSA from time to time based on new data. 2. Where a firm sells its own products it must calculate its figures according to FSA guidelines. Information about other costs and associated charges (i) the total price to be paid by the client in connection with the designated investment or the designated investment business or ancillary services, including all related fees, commissions, charges and expenses, and all taxes payable via the firm or, if an exact price cannot be indicated, the basis for the calculation of the total price so that the client can verify it. The commissions charged by the firm must be itemised separately in every case. [This information should ordinarily be provided by means of a KFI]. (ii) notice of the possibility that other costs, including taxes, related to transactions in connection with the designated investment or the designated investment business may arise for the client that are not paid via the firm or imposed by it (iii)the arrangements for payment or other performance.
5. Further information If you need any more help or information • ask your adviser; or • visit www.fsa.gov.uk/consumer. Last updated 01/12/2007
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