ISA SERVICES MADE FOR YOU

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1 ISA SERVICES MADE FOR YOU

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3 MADE FOR YOU At Charles Stanley we have a different approach to investment services. Rather than slotting you into someone else s financial model, we custom build a service around you. Charles Stanley and Made for You Whether you are an individual, a family, a company or a trustee, we will tailor our service to suit you. This is a way of working we have nurtured for over 150 years, building our reputation on a level of service that is driven by the relationships we develop with our clients. Your tailored service starts with an introduction to one of our Investment Managers, who will listen to what you have to say, ask questions and assemble a comprehensive picture of exactly where you are and, just as importantly, where you want to be. Then, and only then, will your Investment Manager design and implement a level of service that is built to fit your requirements, one that is unique to you. Charles Stanley s personal investment service truly is Made for You. About Charles Stanley A member of the London Stock Exchange since 1852, Charles Stanley has grown to become one of the most respected UK firms in the field of private client stockbroking, investment management and financial planning, consistently winning industry praise for its high level of service. We are one of the UK s leading independently owned, full service stockbroking and investment management groups, advising on substantial client funds. Prudent management, an uncompromising commitment to our clients and our long-term financial stability drive our corporate success. Our clients benefit from our objective advice, high quality service and the close working relationship we maintain with them. VICTORIA GRANT HATS Victoria Grant makes hats and headwear for the high-end boutiques of London, Tokyo, Rome, New York and Los Angeles. Its clientele includes Christina Aguilera, Dita Von Teese, Annie Lennox and Elizabeth Jagger. Appearing on the cover of style magazines with extraordinary regularity, these elegant and memorable hats are specially designed for the individual heads they sit on. While hat-making may seem very different from financial services, we like to think there is a shared philosophy that puts the individual at the heart of our offering. 1

4 ISAs AND YOU If you are a private investor, looking to secure your long-term security, you need to make certain you choose the right provider for your tax-efficient Individual Savings Account (ISA). At Charles Stanley we specialise in bespoke financial arrangements, building your investments around you rather than slotting you into a convenient pigeonhole. A dedicated Investment Manager is appointed to each discretionary and advisory client to make certain he or she receives the best possible attention at all times. Thousands of private investors choose Charles Stanley as their Stocks & Shares ISA manager. Having been involved with ISAs and their predecessors PEPs since they were created, we know and understand them. ISAs can be a highly efficient way to manage your investments. Properly measured and fitted to you they can be a major advantage in your portfolio. What is a Stocks & Shares ISA? Charles Stanley offers only Stocks & Shares ISAs. A Stocks & Shares ISA is a wrapper in which investments may be bought, sold and held in a tax-efficient way. The main advantage of ISAs is that for many investors they can substantially reduce the tax burden created by income and profit on investments held within them. Any UK resident, aged 18 or over, is eligible to invest a substantial sum for income or capital growth with little or no tax implications. As well as opening new ISAs, many clients have chosen to transfer all their ISAs held with other managers to Charles Stanley, thereby taking advantage of the reduction in paperwork and administration this affords them. Managing ISA investments We can design a level of service that is right for you. Depending on how involved you want to be in the day-to-day management of your investments, you can choose to have your ISA looked after in one of the following ways: Discretionary: We manage your portfolio on your behalf, taking investment decisions on the basis of your chosen objectives and risk preferences Advisory Managed: You are responsible for taking all the investment decisions. As with a discretionary portfolio, we frame our recommendations in light of your chosen objectives and risk preference Advisory Dealing: Simply ask us for advice, from time to time, on particular Stocks & Shares. We may also initiate recommendations Execution-Only: Through one of our stock brokers, our award-winning online platform, or by telephone through our Execution-Only Dealing department in London Invest in one of our unit trusts managed by Matterley, our specialist fund management boutique. These include, the Regular High Income Fund, the Undervalued Assets Fund, the International Growth Portfolio and the UK Equity Fund. Cash may be held in a Charles Stanley ISA, pending investment. 2

5 THE BENEFITS OF INVESTING WITHIN ISAs ISAs allow you to build your own portfolio of investments within a tax-efficient account that is ring-fenced from the rest of your financial affairs. You need not give HM Revenue & Customs any details whatsoever about these investments. The choice of eligible investments is extremely wide. With a Charles Stanley Stocks & Shares ISA you have the freedom to choose from all qualifying investment options including shares, fixed interest stocks, gilts, unit trusts, investment trusts and OEICs. The tax benefits are attractive too. Investments within an ISA are free of all Capital Gains Tax (CGT) on disposals. This is an additional exemption, on top of your personal annual CGT allowance. There is no higher-rate tax charge on the investment income that you receive in your ISA. You pay no additional tax on dividends, or on interest on stocks that you hold in your ISA. The tax position is more favourable still where you hold interest-bearing investments in your ISA, bonds, for example. In this case, where 20% UK tax has been deducted by the issuer before paying the interest, we will reclaim this from HM Revenue & Customs on your behalf. There are also favourable rules regarding the treatment of interest on the cash balances in your ISA. You can withdraw your money at any time without losing the previous tax relief and we make no exit charges apart from a pro rata administration fee. JUNIOR ISAs To enable families to save for children in a taxefficient way we also offer a Junior ISA service - which allows investment in a wide range of Collective Investments. The rules, subscriptions and features of a Junior ISA are different to an adult ISA. For more information please ask for our Junior ISA brochure. 3

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7 THE BENEFITS OF TRANSFERRING YOUR ISAs TO CHARLES STANLEY Transferring your existing ISAs to Charles Stanley is straightforward. We charge nothing for doing this but you should clarify exit charges and transfer terms with your existing manager. You can transfer all, or part, of any existing ISA held with a different provider to a Charles Stanley ISA; the only limitation is that the current year s ISA subscription must be transferred in full or remain in situ. You may also transfer a Cash ISA into our Stocks & Shares ISA. In keeping with the bespoke nature of our service, we offer both flexibility and convenience, meaning you can choose from the widest range of investment possibilities. You will receive regular updates, valuations and statements itemising all payments, transactions, dividends and tax credits as well as our dedicated newsletter, ISAy ISAy, which updates you on the latest changes to ISA regulations. Matterley, our specialist Fund management boutique, offers a range of equity and multi-asset funds to meet our clients capital growth and income requirements. These unit trusts are: There are two types of ISA: a Stocks & Shares ISA and a Cash ISA. These can hold either Stocks & Shares, or cash deposits, up to the maximum annual subscription limits for the type of ISA, which are currently: TYPE OF ISA ANNUAL SUBSCRIPTION LIMIT 2012/ /14 Stocks & Shares 11,280 11,520 Cash 5,640 5,760 Total must not exceed annual allowance of 11,280 11,520 A Charles Stanley Stocks & Shares ISA therefore allows you to invest the full annual subscription. Of course, this means that you cannot subscribe to any other ISA in that tax year. The IM Matterley Regular High Income: delivering monthly payments. The IM Matterley Undervalued Assets Fund: investing in UK equities through a deep value focused investment style. The IM Matterley International Growth Portfolio Fund: covering non-uk overseas markets and the IM Matterley UK Equity Fund: giving exposure to a range of predominantly FTSE 100 stocks. For further details, please refer to 5

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9 How your Charles Stanley Stocks & Shares ISA works The initial minimum subscription is 1,000, or 3,000 if you choose the Regular High Income option. You can top up your account whenever it suits you, up to the annual limit. Once your account is set up and in credit, you can buy securities and if you sell them at a profit there will be no Capital Gains Tax liability (note that, conversely, you can t take advantage of capital losses, either). There is no minimum holding period; in theory, you can withdraw all the proceeds immediately. You can keep subscribing up to the statutory limit every year to build up your tax-efficient portfolio. If you opt to make your own investment decisions, we keep you informed of any corporate actions requiring a decision and will execute your instructions accordingly. Corporate actions with no element of choice, such as bonus issues, are automatically accepted on your behalf. Your securities remain in your beneficial ownership, although they cannot be registered directly in your own name. This means that you have no direct contact with the companies whose securities you hold, but arrangements can be made to forward company documents to you, or lodge proxies, on request. Withdrawals from your ISA You are free to withdraw all or part of your cash balance at any time, on giving us written instructions. You can also transfer securities out with no liability to Capital Gains Tax. However, once removed, you cannot put investments or cash back into an ISA, to the extent that this would take your subscription above the annual limit. What happens about cash balances? From time to time you may have cash balances in your ISA pending a suitable investment opportunity. Uninvested cash in your ISA will earn interest that is subject to a flat rate 20% payment to HM Revenue & Customs. There is no higher rate charge, so no details have to be included in your tax return. Subscriptions and employee shares Existing securities that you may hold can be sold to fund your subscription and then repurchased within your ISA. To maximise your tax concession on such transactions, with UK securities we generally waive our normal commission on the purchase. In addition, the fact that their sale is counted as a disposal for tax purposes means that such sales can usefully contribute to your overall tax planning strategy. You can, however, transfer shares from an approved Employee Share Scheme directly into your ISA, free of Capital Gains Tax, within 90 days of the exercise of option. The value of any shares transferred will count towards your annual subscription limit. 7

10 Dividend collection Dividends and fixed interest payments that accumulate from your investments are entirely free of any further UK tax. You can either leave your income to accumulate or choose to have income paid to you monthly, quarterly or twice yearly. Whichever option you select, you will receive statements showing details of these payments. You may also elect to receive shares in lieu of cash, in respect of all the holdings in your portfolio, via the SCRIP/DRIP facility. However, this service will not be available in respect of holdings where interest is paid gross, or which suffer deduction of 20% tax (which we can still reclaim) or which are unit trusts, Open Ended Investment Companies (OEICs) or overseas securities. For those companies that do not offer SCRIP/DRIP facilities, we will elect for cash dividends on your behalf. Details of any additional shares received will be shown on your half-yearly valuation. Keeping you informed We will provide you with a valuation of your ISA at least twice a year. Monthly factsheets on our unit trusts are also available at as well as full report and accounts available twice a year on request. You may also monitor your ISA portfolio through our secure online client area at changes in Your circumstances Should you decide to close your ISA and withdraw your investments, the tax benefits will cease from that point. There are certain alterations to your personal circumstances that may affect your ISA, for example if your residency status changes. Once your account is established, please keep us informed of anything that may affect the declaration you signed in the application. 8

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12 IMPORTANT INFORMATION To open or transfer your ISA, please carefully read Our Services and Business Terms and our charges literature, then kindly complete and return the application documents to us. You should be aware that the value of your ISA investments may fall as well as rise and you may not get back the amount you originally invested. This brochure is based on our understanding of current UK tax provisions, which may change in the future. Charles Stanley, as a company authorised and regulated by the Financial Conduct Authority, is acutely aware of the need to safeguard clients financial interests. First, your assets are carefully segregated and ring-fenced from the assets of the firm. Secondly, we carry substantial insurance that provides cover for loss through events such as theft, fire, fraud or negligence. Finally, as a client of an authorised firm, your investments are protected by the Financial Services Compensation Scheme (visit for details). It is always important to seek advice on the suitability of subscribing to an ISA, as this will depend on your individual circumstances. Current legislation suggests that an ISA would be less suitable for you if you are a nil, or low-rate, income tax payer; and conversely the income tax provisions (as well as the CGT exemption) remain attractive if you are a higher-rate tax payer. If you would like to take advice on whether an ISA is the right vehicle for your circumstances, we would be happy to introduce you to an adviser in our Financial Planning department. 10

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15 CONTACT details For more information, please contact us: London HEAD OFFICE Charles Stanley & Co. Limited 25 Luke Street, London, EC2A 4AR Our offices Bath Bedford Beverley Birmingham Bournemouth Brighton & Hove Cambridge Cirencester Dorchester Eastbourne Edinburgh Exeter Guildford Ipswich Isle of Wight Leeds Liverpool London (Head Office) Manchester Milton Keynes Newbury Norwich Nottingham Oxford Plymouth Reading Southampton Southend-on-Sea Truro Tunbridge Wells Watford Wimborne 13

16 30.06 April 2013 Charles Stanley & Co. Limited, 25 Luke Street, London EC2A 4AR T F DX BROADGATE-1 E info@charles-stanley.co.uk Authorised and regulated by the Financial Conduct Authority. Member of the London Stock Exchange, the London International Financial Futures and Options Exchange and the International Capital Market Association. Charles Stanley & Co. Limited is a wholly owned subsidiary of Charles Stanley Group PLC. Charles Stanley & Co. Limited Charles Stanley & Co. Limited is registered in England No Registered Office: 25 Luke Street, London EC2A 4AR