Key Facts about our services and costs - Saga Investments Online

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1 1. What is the purpose of this document? The Financial Conduct Authority (FCA) asks regulated firms to provide this important information to help you decide if our products and services are right for you. This document sets out the key features about offered by Saga Investment Services powered bytilney Bestinvest and the applicable costs of this Service. More detailed information can be found on our website, in the terms of business and in the key features documents (KFDs) and key investor information documents (KIIDs) for funds and the Saga SIPP. Please read this document carefully and keep it for future reference. 2. What is the Service? This is an execution-only investment service provided by Bestinvest (Brokers) Limited where you make your own decisions about the investments that you buy and sell. Using you can currently buy and sell online any combination of the investment types available through our services. You will not receive personal investment advice based on your circumstances as part of this service. We provide research, information about investments and tools to make it easier for you to make your own investment decisions. We also offer, in addition to this execution-only service, the Saga Advised Investment Service (should you require suitability advice) and the Saga Financial Planning Service. We will provide you with the key features of these services separately if you are interested. Investment types offered Our services can involve one or more of the following investments: Units and shares in collective investment schemes (funds); Shares in UK listed companies; Exchange Traded Funds (ETFs) Investment trusts; and Other products will be made available, as we may consider appropriate, during the course of your holding an account with us. Account types offered In order that you can manage your money and, should you wish, take advantage of the tax benefits that are normally available with ISAs and SIPPs, each of our services enables you to have up to three different types of accounts: i) Investment Account: Bestinvest (Brokers) Limited open an Investment Account for all clients using any of our services. This account enables you to invest money in any of the investments offered by Saga Investment Services and hold cash. ii) ISA Account: this account is for investments that you wish to hold in a stocks and shares Saga Individual Savings Account. We also offer Junior ISAs, which is available as a separate account. iii) SIPP Account: this account is for investments that you wish to hold within a Saga SIPP (Self-Invested Personal Pension). 3. What products do we offer? The products offered by Saga Investment Services are predominantly funds but may include other investment products (e.g. shares and investment trusts). Custody of your investments will be with Pershing Securities Limited (the Custodian), as detailed in your account opening documentation and our terms of business. The ISA (and Junior ISA) we offer is managed by Bestinvest (Brokers) Limited. The Saga SIPP is a Self-Invested Personal Pension Scheme provided, operated and administered by Pershing Securities Limited with BNY Mellon Pershing Trustees Limited acting as trustee. The funds available via cover most of the market and include the Ready-made Portfolios (Open Ended Investment Companies (OEICs) called IFSL Tilney Bestinvest Multi-Asset Portfolio Funds) for which Bestinvest (Brokers) Limited are the sponsor and investment manager. 1 of 8

2 4. What will you have to pay us for our services? Charges that apply to different investments i) Initial charge: for most funds offered via our services, there is no initial charge our website will confirm this, or tell you before you buy it if an initial charge applies. ii) Ongoing Charge Figure (OCF): this is a fund manager s annual management charge plus additional third party costs and is taken annually by the fund manager from the value of the fund. For new purchases this charge will normally be between % for equity funds, around 0.3% for tracker funds and 0.6% for bond funds (although it could be higher or lower than this, as it is not set by us, but by the fund provider). In respect of Ready-made Portfolios, the OCF is approximately 1.52%, as the costs also reflect the levy of annual management charges of the underlying funds. iii) Stamp Duty Reserve Tax: this is currently 0.5% and applies to purchases of mainland UK registered companies that are UK listed (this does not apply to ETFs, OEICs and Offshore companies, such as Guernsey registered companies, that are UK listed) and 1% on Irish registered stock. iv) PTM Levy: is a flat rate charge of 1 on all trades over 10,000, collected by the Panel on Takeovers and Mergers (POTAM), who oversee all take-overs and mergers within the UK. Please see the fee tables from page 6 onwards for other fees that may apply to your account(s). Charges specific to i) We charge a tiered fee based on the average daily value of all assets in your account, excluding cash. Fees accrue monthly, calculated using the month end closing value and are levied monthly in arrears. Your ongoing service fee will begin to accrue once you have agreed to the account opening documentation and once you have made your first investment through us or once cash and/or stock/units have been received into your investment account. ii) For SIPP accounts, our tiered fee begins at 0.30% for assets up to 250,000 and reduces in levels down to 0% for any excess over 1,000,000. By way of illustration, on a 100,000 investment the fee for a SIPP Account would be calculated as follows: - 100,000 at 0.30% = 300 per annum. iii) On a 1,100,000 investment the fee would be calculated as follows: - First 250,000 at 0.30% = ,001-1,000,000 at 0.20% = 1,500-1,000,001-1,100,000 at 0% = 0 - Total = , = 2,250 per annum. For General Investment Accounts and ISA/JISA accounts our tiered fee begins at 0.40% for assets up to 250,000 and reduces in levels down to 0% for any excess over 1,000,000. By way of illustration, on a 100,000 investment the fee would be calculated as follows: - 100,000 at 0.40% = 400 per annum. On a 1,100,000 investment the fee would be calculated as follows: - First 250,000 at 0.40% = 1, ,001-1,000,000 at 0.20% = 1,500-1,000,001-1,100,000 at 0% = 0 - Total = , = 2,500 per annum. iv) VAT is not currently applicable on the tiered service fee. Online dealing in funds: there are no dealing fees or switch charges on investments in unit trusts and OEICs. v) Custody fee: Custody fees are included in the overall service fees detailed above. vi) Online dealing in securities other than funds: you pay a dealing fee on each (buy and sell) when investing online in securities, such as stocks and shares, ETFs and investment trusts. The standard online dealing fee is per. All quotes to buy stocks and shares, ETFs and investment trusts will tell you what the dealing fees are and any taxes or levies that apply. These are payable immediately. 2 of 8

3 is primarily an online service. If you place a deal in any type of investment by phone, each currently costs 75. Certain securities can be illiquid; these tend to be small cap companies, investment trusts and ETFs, and it is not always possible to trade online. Phone-dealing rates apply in these circumstances. We reserve the right not to make available certain products or investments in our sole discretion depending on the service we provide and due to reasons related to liquidity, pricing, complexity or other risks to clients or us. See Table 1 for a list of all charges applicable to. The charges summarised above are charges in respect of our standard fees; in special circumstances and at our sole discretion other tariffs may be offered to you; please contact us if you are unsure which fees apply to you. SIPP accounts See Tables 3 and 4 for charges applicable specifically to the Saga SIPP. For s in other investment accounts, please refer to the charges applicable to the account in the appropriate column in Table 1. Please ask us if you are unsure which charges are applicable to you. If you were to terminate your agreement with us in relation to your SIPP account the standard Pershing SIPP Charges Schedule will apply instead of the charges shown in Table 4. This is because we pay Pershing Securities Limited directly for certain of the standard Pershing SIPP Charges Schedule costs in respect of the administration services Pershing Securities Limited provides for Saga SIPP clients. 5. Fund-based commission and rebates We do not earn commission on funds. If you transfer in commission-paying funds to a Saga Investment Services account, we will convert those funds within one month into the equivalent clean share class (i.e. a non-commission paying share class) where possible. If a clean share class is not available, or we receive commission in respect of a period before such conversion, any commission received by the Custodian will be returned to the relevant fund manager. Where we have negotiated a discount to a fund s standard annual management charge (on the clean share class) on behalf of clients, a fund rebate will be paid to your account (normally calculated monthly, on the basis of the daily value of the relevant funds) in respect of such discount. Payment will be made following receipt of the rebate by the Custodian, save that the first such rebate will not be credited before May Certain fund managers may make such payments less frequently (e.g. annually), in which case they will be credited to your account less frequently, following receipt by the Custodian. The relevant fund manager will remit the rebate to the Custodian as cash, which will be used to buy additional units in the relevant fund for our clients on an aggregated basis. As a result, when calculating the number of units for individual clients, there may be some rounding down of fractions (depending on the number of decimal places allowed by the fund manager for dealing) which could result in a small reduction in the rebate you would otherwise be entitled to receive, and the rounded down amount will be credited to your account. Any residual fractional units may be sold and the proceeds may be paid to a registered charity of our choice. Where the value of the rebate is 1 or less per fund/per investor, or you no longer hold the fund in question at the date of receipt of the rebate, or you have instructed the closure of your account at the date of calculation of the rebate, we may credit the rebate due in cash. Fund rebates, whether paid in units or cash, are subject to income tax, so the Custodian will deduct basic rate income tax from any such payments where applicable. Details of the calculation of the rebate credited to your account are available on request. 6. Is interest paid on cash? Interest is calculated on the daily balance and paid monthly into your account. We may, at our discretion, vary the terms upon which interest is paid. We will notify you where we change those terms. For cash held on your behalf by Pershing Securities Limited, you will receive an interest payment from the Custodian as detailed in the table below. Pershing Securities Limited may retain a portion of the interest earned in client bank accounts and will withhold tax where required. Details of the amount and frequency of such interest and withholding are available on request. 3 of 8

4 6. Is interest paid on cash? (continued) The current interest rates paid to you in respect of money held with Pershing Securities Limited as Custodian are: Account Type Investment Account ISA/JISA Account SIPP Account Current interest rates (effective 01/11/2015) Cash Balance all balances all balances all balances Interest Rate (gross) Bank of England Base Rate less 0.5% Bank of England Base Rate less 0.5% Bank of England Base Rate less 0.5% 7.Who regulates us? Saga Investment Services Limited is an Appointed Representative (as defined under FCA rules) of Bestinvest (Brokers) Limited, which is authorised and regulated by the Financial Conduct Authority, and is responsible for introducing customers and providing marketing and administrative services on Tilney Bestinvest s behalf. The services referred to in this document are provided by the Tilney Bestinvest Group of companies. Investment advice and dealing services are offered by Bestinvest (Brokers) Limited, firm reference number Financial planning services are provided by HW Financial Services Limited (HWFS), which is also authorised and regulated by the Financial Conduct Authority, firm reference number Our permitted business includes advising on investments, managing investments, arranging custody, and dealing in investments as agents (including execution-only dealing). You can check the regulatory permissions for these companies on the Financial Services Register by visiting the FCA s website or by calling the FCA on What to do if you have a complaint? If you wish to register a complaint, please contact us: In writing: Saga Investment Services, Royal Liver Building, Pier Head, Liverpool, L3 1NY By phone: By complaints@sagainvestments.co.uk If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (FOS) (financialombudsman.org.uk). If you wish to contact the FOS, please contact them; In writing: Exchange Tower, London, E14 9SR By phone: By complaint.info@financial-ombudsman.org.uk 9. Are you covered by the Financial Services Compensation Scheme (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. Should you be entitled to compensation from the Financial Services Compensation Scheme, you may be able to recover up to 100% of the first 50,000 that you have invested. Further information about compensation arrangements is available from the FSCS. Their address is FSCS, 7th Floor, Lloyds Chambers, Portsoken Street, London E1 8BN and their website is fscs.org.uk. 4 of 8

5 10. Who holds my investments? The appointed Custodian for your investments, including cash, is Pershing Securities Limited whose address is Capstan House, One Clove Crescent, East India Dock, London, E14 2BH. Pershing Securities Limited is a UK custodian that is authorised and regulated by the FCA. Your investments are held in accounts held in the name of Pershing Nominees Limited, segregated in accordance with the FCA s client money and assets rules. 11. How do I know you are giving me a fair deal on my investments? Our procedures are designed to ensure that we obtain the best possible result for you. Bestinvest (Brokers) Limited has a best execution policy (see the Terms of Business) that you agree to as part of opening an account with us. 12. What happens if I change my mind about buying an investment? You have 14 days from the account opening date to cancel an Investment Account, ISA Account or Junior ISA account; 30 days from the account opening date to cancel a SIPP Account and 30 days to cancel following each transfer of a pension from another provider to your Saga SIPP; however, you will waive your cancellation rights in relation to a SIPP or SIPP transfer if you choose to request that a cash contribution is invested during the cancellation period (for SIPPs, full details of cancellation rights can be found in the Pershing SIPP Key Features Document). Please be aware that if you cancel any investments (outside a SIPP) as a result of exercising your cancellation rights you may get back more or less than you put in as a result of price movements over the period. Please send any cancellation requests to Saga Investment Services, Royal Liver Building, Pier Head, Liverpool, L3 1NY. For the avoidance of doubt, the cancellation mentioned above does not relate to cancelling investments once purchased for example, you cannot cancel the purchase of funds or shares purchased within any type of account mentioned above, unless they are being cancelled as a result of the account itself being cancelled within the time periods specified above. Investments that you buy for your Investment Account or ISA Account can be sold and cash withdrawn at any time although you may get back more or less than you put in. 5 of 8

6 Table 1 Transaction charges (for SIPP accounts there are additional administrative charges as shown in Table 4) FEE (EXCLUDING VAT) Fee Type Investment Account ISA/JISA Account SIPP Account Is VAT payable? When is fee due? SERVICE AND DEALING FEES Service Fee Tiered fee see table 2 below Tiered fee see table 2 below Tiered fee see table 3 below No Paid monthly in arrears Online dealing fee purchase/sale unit trusts and OEICs FREE FREE FREE - - Online Fund switch fee FREE FREE FREE - - Online dealing fee - purchase/ sale UK stocks and shares Telephone Transcation - fee for each telephone only clients Stamp Duty Reserve Tax (SDRT) payable on mainland UK registered companies that are UK listed only. 0% on Exchange Traded Funds, OEICs, and unit trusts. PTM Levy (applicable on certain s over 10,000 on the LSE) Upon completed Upon completed No 0.5% of the value of 0.5% of the value of 0.5% of the value of investment you buy investment you buy investment you buy Upon completed (1% on Irish (1% on Irish (1% on Irish No registered stock) registered stock) registered stock) At point of No ISA/JISA Administration Fee N/A FREE N/A - - ACCOUNT SPECIFIC FEES Account custody fee FREE FREE FREE - - TRANSFER AND ACCOUNT CLOSURE FEES Transfer in from another provider (including Protected Rights transfers into a SIPP) Transfer out of an investment to another nominee (to another pension scheme in the case of a SIPP account) Transfer out of an investment as a share certificate FREE FREE FREE per asset 25 per asset 25 per asset Upon completed No transferred transferred transferred* 20 per asset 20 per asset Upon completed - No transferred transferred Account closure FREE 50 See table 4 Yes Upon completed below CASH TRANSACTION FEES Dividend and interest receipt FREE FREE FREE - - Cash transfer between accounts FREE FREE FREE - - Income payment to your bank account FREE FREE MISCELLANEOUS FEES Paper valuations/contract notes FREE (on request) N/A N/A CHAPS Charge No When actioned Probate valuation 10 per holding (min 50) Yes When actioned * 10 of which is paid to Pershing Securities Limited. 6 of 8

7 Key Facts about our services and costs - Table 2 Tiered fee for the Service for Investment Accounts and ISA/JISA Accounts ASSET TIER ONGOING ADVICE FEE 0-250, % 250,001-1,000, % 1,000, % Note: other fee tariffs may be offered at our discretion Table 3 Tiered fee for the Service for SIPP Accounts ASSET TIER ONGOING ADVICE FEE 0-250, % 250,001-1,000, % 1,000, % Note: Additional fees apply to the Saga SIPP as detailed in Table 4 Table 4 The following table sets out the administrative charges applicable to the Saga SIPP (in addition to the standard charges shown in Tables 1 and 3 above). Important Note: The Saga SIPP is provided, operated and administered by Pershing Securities Limited with BNYMellon Pershing Trustees Limited acting as trustee. When you open your SIPP Account you are bound by the Pershing SIPP documentation comprising Pershing Terms and Conditions, Permitted Investment Schedule, Key Features Document, Pershing Charges Schedule and rules of the Scheme. The charges in the table below consolidate the Saga SIPP charges that are payable by you. If you were to terminate your agreement for services with Saga Investment Services powered by Tilney Bestinvest in relation to your Saga SIPP, the standard Pershing Charges Schedule will apply instead of Table 4 below and, shall be payable in full by you to Pershing Securities Limited. SIPP BENEFITS, PAYMENT AND CLOSURE FEES SIPP ESTABLISHMENT AND ADMINISTRATION CHARGES Fee (excluding VAT) Is VAT payable? When is Fee due? When you establish your SIPP Nil N/A N/A SIPP quarterly administration charge Nil N/A N/A If you pay a single cash contribution Nil N/A N/A If you transfer in from another registered pension scheme (cash and/ or in-specie) Nil N/A N/A 7 of 8

8 Table 4 (continued) SIPP BENEFITS, PAYMENT AND CLOSURE FEES BENEFITS AND TRANSFERS OUT Fee (excluding VAT) Is VAT payable? When is Fee due? CHARGES Drawdown administration fee Nil N/A N/A If you designate additional funds Nil N/A N/A If you purchase an annuity with part, or all, of your fund If you transfer out to another UK pension scheme If you transfer out to a Qualifying Recognised Overseas Pensions Scheme QROPS If you close your SIPP through trivial commutation 75 Yes 75* Yes 150* Yes 75 Yes On payment to annuity provider On payment to the new pension provider On payment to the new pension provider On payment of benefits If you request early retirement due to ill health Nil N/A N/A If you close your SIPP through flexi access drawdown 75 Yes On payment of benefits Implementation of pension sharing order 75 Yes Administration of death benefits Nil N/A N/A * This fee is waived if closure occurs more than two years after opening the Saga SIPP account. Before the implementation period commences as specified under the Court Order SIS002V Saga Investment Services Limited is an Appointed Representative of Bestinvest (Brokers) Limited which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited (Company Reg. No ) and HW Financial Services Ltd (Company Reg. No ) which are members of the Tilney Bestinvest Group of companies with registered offices at 6 Chesterfield Gardens, Mayfair, London, W1J 5BQ. Saga Investment Services Limited (Reg. No ) has registered offices at Enbrook Park, Sandgate, Folkestone, Kent CT20 3SE. Each company is registered in England & Wales.. This document has been issued by Bestinvest (Brokers) Limited (FCA Reg. No ). 8 of 8