The terms of this Client Agreement come into force immediately on issue and remain in force until further notice.

Transcription

1 Client agreement 19 Strathern Road Leicester LE3 9QA Tel: Fax: Co. Registered No / Registered in England/ Registered office as above INDEX 1 INTRODUCTION 2 CUSTOMER CLASSIFICATION 3 FINANCIAL PLANNING OBJECTIVES 4 CUSTODIAN 5 PAYMENT FOR SERVICES 6 CLIENT MONEY 7 ACCOUNTING TO YOU 8 FINANCIAL SERVICES COMPENSATION SCHEME 9 FORCE MAJEURE 10 COMPLAINTS 11 CANCELLATION RIGHTS 12 MATERIAL INTERESTS 13 RISK WARNINGS 14 TERMINATION OF AUTHORITY 15 DATA PROTECTION AND ANTI MONEY LAUNDERING 16 GOVERNING LAW & JURISDICTION 17 CLIENT S CONSENT APPENDIX 1: SANTORINI FINANCIAL PLANNING LTD CONFLICT OF INTEREST POLICY APPENDIX 2: SANTORINI FINANCIAL PLANNING LTD CODE OF ETHICS 1 INTRODUCTION This document sets out the basis on which Santorini Financial Planning Ltd will conduct business with you and on your behalf. It is an important document and Santorini Financial Planning Ltd would ask you to read it carefully and make sure you read and understand these Terms and Conditions. If you are unsure of any of its terms please ask. The terms of this Client Agreement come into force immediately on issue and remain in force until further notice. Santorini Financial Planning Ltd is an appointed representative of Financial Ltd, which is authorised & regulated by the Financial Services Authority (FSA). Santorini Financial Planning Ltd s FSA number is You can check this on the FSA s Register by visiting the FSA s website or by contacting the FSA at 25 The North Colonnade, Canary Wharf, London, E14 5HS or telephone or by contacting Financial Ltd. at Unit 1, Andoversford Business Park, Cheltenham, Gloucestershire, GL54 4LB. These Terms and Conditions (hereafter Terms ) constitute the legal agreement, or contract, between you and Santorini Financial Planning Ltd. They contain details of the duties owed to you by Santorini Financial Planning Ltd, and also the responsibilities owed by you to Santorini Financial Planning Ltd as its client. You should also be aware that it is difficult for Santorini Financial Planning Ltd to fulfil its obligations to you if you do not answer questions about your financial circumstances, goals and approach to investment risk both fully and accurately.

2 These Terms are also in respect of the agreement into which we have entered into with a Custodian on your behalf, in which the Custodian has agreed to provide settlement, custody, nominee and associated services for our clients, as a result of which you will also have entered into a contract with the Custodian. See Section 4. 2 CUSTOMER CLASSIFICATION The type of client category will determine the levels of protection afforded to you under the Financial Services and Market Act The firm proposes to classify you in accordance with FSA rules as a Retail Client and the regulatory protection available to you will be the highest available. 3 FINANCIAL PLANNING OBJECTIVES 3.1 The First Service Lifeplanning The first and most important service is that of Lifeplanning. This is the process of getting to know you. How you got to where you are now and where you want to get to in the future. What you want to achieve, financially, in the next 5, 10, 15, 20 or 30 years. What s important to you? What drives you? What are your lifestyle expectations? In other words, what do you want your money to do in the first place! Without answers to these fundamental questions no financial decisions can made. We will also work with you to identify the cost of your current and future desired lifestyle allowing for all of the things that you want to do in your lifetime. Most clients find this an enjoyable part of the process as it helps them to identify what they want to do with their lives now and in the future. 3.2 The Second Service Financial Planning Once we have established exactly what you are trying to achieve we can then take you to the next stage by undertaking comprehensive financial planning. This is where we analyse all of your existing arrangements to identify exactly what you have already, what they are worth now and what we can safely assume they will be worth in the future taking into account performance to date. Once we have this information available, including a breakdown of your lifetime expenditure requirements we will then input this data into our financial planning software. This software is called truth and is the most sophisticated financial planning software available. Quite simply, it enables us to show you what your financial future looks like. The financial planning meetings will produce a detailed statement of your net worth, we will confirm your various income sources, available now and in the future, and we will look at your expenditure requirements, based on you living the life you want to live. We will also look at various catastrophe situations to consider the effect on you and your family should the worst happen. Then, using truth, we will together look at various what if scenario s in order to identify what needs to happen to ensure that your goals (based on the Lifeplanning meetings) are achieved. This is when most clients suddenly understand what they need to do, and why. It s when money starts to make sense. This is when clients see the possibilities available to them, now and in the future. 3.3 The Third Service Independent Financial Advice Finally, should your financial plan indicate that you need financial products to satisfy the needs of your financial plan, (and therefore your real goals and objectives), then, and only then, do we move to the third stage of the process. This is where we research the whole market to identify the financial products best suited to your objectives and the needs of your financial plan. This stage involves the use of sophisticated independent product research software to compare product wrappers, fund performance, volatility, asset allocation for suggested funds etc, etc. This stage will involve rigorous research on our part including a detailed recommendation report. This third stage is always the final stage of the comprehensive process we use with clients and it only occurs when we know exactly what you are trying to achieve in the first place. In many ways this process is directly opposite to most financial advisers who are only interested in selling products. We believe that a financial adviser has no right to sell you a product unless they have carried out this three stage process. Santorini Financial Planning Ltd provides financial planning advice on investments and protection and arranges transactions in these products.

3 Unless you inform us whether there are any restrictions as to the type of investment or protection or the markets on which you want advice, Santorini Financial Planning Ltd will only provide that advice on investments within our authorisation and that Santorini Financial Planning Ltd believe are suitable for you. The advice that Santorini Financial Planning Ltd provides to you is INDEPENDENT on products from the whole market. 4 CUSTODIAN Assets that are to be managed by Santorini Financial Planning Ltd must be held by a suitable Custodian. Santorini Financial Planning Ltd maintains relationships with a number of Custodians and the most appropriate will be recommended to you. The Custodian will normally provide the following range of wrap account facilities as needed. General Investment Account (GIA). Holds assets not otherwise held in any of the below Accounts; Individual Savings Account (ISA) Personal Pension Plan (PPP) Self Invested Personal Pension (SIPP) Pension Income Withdrawal Facility Onshore Bond Offshore Bond 4.1 Periodic Statements, Valuations and Contract Notes In addition to periodic reviews you will; Receive a contract note confirming the details of each transaction (sent directly from the Custodian in accordance with their terms and conditions), within a few days of dealing. Have access to your portfolio valuation on line via the Custodians website. Receive annual reports relating to the holdings in your portfolio with the Custodian as at 5th April each year. Receive a half yearly valuation reports relating to the holdings in your portfolio with the Custodian for the period 6th April to 5th October each year. 5 PAYMENT FOR SERVICES 5.1 New Client Requirements In order to ensure that we serve our clients to the best of our abilities and in most cases exceed their expectations, we need to limit the number of new clients that retain us each year. The following is a schedule of the basic minimum requirements to begin a relationship with Santorini Financial Planning Ltd. You would only need to satisfy one of the following: An investment portfolio of 100,000 An expectation of an investment portfolio of 100,000 within 12 months or: Satisfy a minimum fee of 1,500 per year for planning and investment management. Anticipated 1,000,000 portfolio within 5 years ( 2,500 per year minimum fee applies). Portfolio of 250,000 and minimum annual savings of 25,000 ( 2,500 per year minimum fee applies). Immediate family member of client with a portfolio over 500,000 ( 2,500 per year minimum fee applies.)

4 5.2 Financial Planning and Investment Advice For providing financial planning and investment advice you will pay for our services by fees. Santorini Financial Planning Ltd will agree the amount to be charged before beginning any work in accordance with our Treating Customers Fairly policy and company culture. We will tell you the precise fee for advice in your engagement letter. Santorini Financial Planning Ltd will tell you in advance if you may have to pay Value Added Tax (VAT). The amount payable will be as follows: An Initial Fee based upon the initial workload, typically 0 % - 3% of investment value Size of Portfolio initial fee 1,000, % 750,000 to 1,000, % 250,000 to 750, % 100,000 to 250, % Up to 100, % In addition an annual fee of 0.833% of the value of your investments, chargeable monthly, to pay for the ongoing wealth management, financial planning and investment advice. Discounts will be applied on a tiered scale as per the table shown (the discount applying to the funds that fall into the related band) for amounts in excess of 1,000,000. *Portfolio size includes the total of your funds that we supervise under this agreement, including current investments and new cash being invested You will pay us for our advice and services (whether you buy a product or not) at an amount or a rate agreed before we commence any work. We do not take commission from investment providers. Any fee will either be paid by cheque or taken directly from the investment 5.3 Insurance Advice Size of Portfolio* Annual portfolio management fee Monthly portfolio management fee Discount First 1,000, % % Next 2,000, % % 25% Next 2,000, % % 50% Next 5,000, % % 75% 10m plus 0.20% % 80% Some clients would rather not pay a fee up front for business carried out on a one off transactional basis (e.g. life insurance cover). In such instances Santorini Financial Planning Ltd will offer the choice of the client paying a fee (whether the advice is accepted or not) or being remunerated by commission paid by the product provider. In the latter case, 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. For example if you pay 100 pm towards a whole life policy then maximum we would receive is 2, The precise amount of commission we receive in each case will depend upon your circumstances at the time of any policy commencement, which we will establish in full prior to any advice given. Santorini Financial Planning Ltd will inform you of the likely amounts involved in both alternatives and agree a route forward before proceeding with the transaction. For example, our minimum cost for advice and submission for an Annuity is 750, thus where the commission is below this (and Santorini Financial Planning Ltd have agreed a commission payment route) Santorini Financial Planning Ltd will also agree to charge you a fee in order to make up any potential shortfall. Santorini Financial Planning Ltd will tell you in advance if you may have to pay Value Added Tax (VAT). In all instances Santorini Financial Planning Ltd require our clients to give us instructions in writing, to avoid possible doubt or disputes. Santorini Financial Planning Ltd will, however, accept oral instructions in certain instances provided they are subsequently confirmed in writing.

5 6 CLIENT MONEY For you additional security Santorini Financial Planning Ltd does not handle client s money. Santorini Financial Planning Ltd never accepts a cheque made out to Santorini Financial Planning Ltd (unless it is a cheque in settlement of charges or disbursements for which Santorini Financial Planning Ltd has sent you an invoice) or handles cash. 7 ACCOUNTING TO YOU Financial Planning Ltd will confirm to you in writing the basis or reason for recommending the transaction executed on your behalf. Santorini Financial Planning Ltd will make arrangements for your investments, contracts and policies to be registered in your name unless you first instructed otherwise in writing. Santorini Financial Planning Ltd will forward to you all documents showing ownership of investments as soon as practicable after received; where a number of documents relating to a series of transactions is involved, Santorini Financial Planning Ltd will normally hold each document until the series is complete and then forward them to you. 8 FINANCIAL SERVICES COMPENSATION SCHEME Santorini Financial Planning Ltd is covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the scheme if Santorini Financial Planning Ltd cannot meet its obligations. This depends on the type of business and the circumstances of the claim. 8.1 Investments Most types of Investment business are covered for 100% of 50, Insurance Insurance advising and arranging is covered for 90% of the claim with no upper limit. Further information about compensation scheme arrangements is available from the FSCS. 9 FORCE MAJEURE In the event of any failure, interruption or delay, by any party, in the performance of their obligations resulting from acts, events or circumstances not reasonably within their control, including, but not limited to industrial disputes, acts or regulations of any governmental or supranational bodies or authorities, breakdown, failure or malfunction of any telecommunications or computer service, no party shall be liable or have any responsibility of any kind for any loss or damage thereby incurred or suffered by any of the other parties. 10 COMPLAINTS If you should have any complaint about the advice you receive or a product you have bought please write to the Complaints Officer at Financial Ltd, Unit 1 Andoversford Business Park, Andoversford, Cheltenham. GL54 4LB Telephone Number If following our subsequent investigation and response you are still not satisfied you may contact the Financial Ombudsman Service. Full details are contained within our internal complaints procedure, which is available to you on request at any time. 11 CANCELLATION RIGHTS A right to cancel will not normally apply to the opening of your initial accounts with the Custodian and you will not have the right to change your mind once the Custodian has received your initial application. In respect of any other wrap account within your Portfolio (i.e. ISA, PPP, SIPP, Pension Income Withdrawal Facility, Onshore or Offshore Bond); a right to cancel does apply should you wish to change your mind within 30 days of: The date on which the Custodian accept your application to open the wrap account in question. The date on which any single premium or other form of deposit (of whatever nature, including transfers-in) is made. The date on which the first deposit is made in respect of regular deposits In each case where you do exercise any such right to cancel, you will receive back the premium or other form of deposit (of whatever nature including transfers-in) in question less any amount by which any relevant Investments may have fallen in value; SAVE THAT in respect of the PPP, EPP or Section 32 Buy-Out Bond, where the trustee/administrator of the transferring scheme does not have to take the proceeds back, you have to transfer them to an alternative scheme; which you must notify to us forthwith upon request. Cancellation rights for individual policies will be explained in your suitability report

6 12 MATERIAL INTERESTS Santorini Financial Planning Ltd offer independent financial advice, but occasions can arise where Santorini Financial Planning Ltd, or one of our other clients, will have some form of interest in business, which Santorini Financial Planning Ltd are transacting for you. If this happens, or Santorini Financial Planning Ltd become aware that our interests or those of one of our other customers conflict with your interests, Santorini Financial Planning Ltd will inform you in writing and obtain your consent before Santorini Financial Planning Ltd carry out your instructions. There may be occasions when Santorini Financial Planning Ltd will be unable to act for one of the parties. As a consequence of such potential conflicts arising, Santorini Financial Planning Ltd has put arrangements in place to ensure our clients are treated fairly. Santorini Financial Planning Ltd has also implemented a conflicts of interest policy to help manage such risks, which is attached as Appendix RISK WARNINGS The value of investments may go down as well as up, and you may not get back the amount invested. Levels of income from investments may fluctuate. Santorini Financial Planning Ltd cannot be held liable for any depreciation in the value of investments arranged for you. For Insurance products, your insurance policy may lapse if you do not keep up to date with your regular premium payments and you may not be covered if a claim is made. 14 TERMINATION OF AUTHORITY You or Santorini Financial Planning Ltd 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 these terms of business unless otherwise agreed in writing. You will be liable to pay for any transactions made prior to termination and any fees which may be outstanding. Santorini Financial Planning Ltd does not charge a termination fee. 15 DATA PROTECTION AND ANTI MONEY LAUNDERING Santorini Financial Planning Ltd is registered under the Data Protection Act It is understood that Santorini Financial Planning Ltd keeps personal and financial information with regard to your circumstances on file (electronic and/or paper based) as required to be able to advise you as to your financial planning needs. Santorini Financial Planning Ltd confirms that this information will not be used, or transferred by us to any other firm or company with the exception of Financial Ltd. We may also provide information to the FSA upon request for regulatory reasons. Santorini Financial Planning Ltd confirms they cannot be held responsible for the information held on your file becoming inaccurate due to your change of circumstances if you fail to properly inform Santorini Financial Planning Ltd of those changes. We want to make sure your personal information is accurate and up to date. You may ask us to correct or remove information you think is inaccurate. Where investment business services are provided to Santorini Financial Planning Ltd by third parties then circumstances may arise which warrant the disclosure of more than just your basic contact details. On these occasions such as processing business, and obtaining compliance and regulatory advice, you agree that personal information held by Santorini Financial Planning Ltd may be disclosed on a confidential basis, and in accordance with the Data Protection Act 1998, to such third parties. You agree that this information may be transferred electronically, e.g. . You also agree that Santorini Financial Planning Ltd, or any such company, may contact you in future by any means of communication which Santorini Financial Planning Ltd consider appropriate at the time. Santorini Financial Planning Ltd keeps records of business transactions for at least five years. If you would like a copy of all or some of the information please write to: The Data Controller, Santorini Financial Planning Ltd, 19 Strathern Road, Leicester LE3 9QA. We may make a small charge for this service. Santorini Financial Planning Ltd is required to verify your identity in accordance with the Proceeds of Crime Act 2002 and the Money Laundering Regulations Santorini Financial Planning Ltd reserve the right to approach third parties and to delay any applications until adequate verification of identity has been obtained.

7 16 GOVERNING LAW & JURISDICTION Santorini Financial Planning Ltd reserve the right to amend these Terms at our discretion where changes in regulation, law etc. necessitate by giving you notice in writing. These terms of business shall be governed by and construed according to English Law. Any disputes shall be determined in the English Courts. 17 CLIENT S CONSENT I/We understand and consent to the terms of this Client Agreement and I/we hereby authorise the transfer of information, as described above, on a confidential basis when warranted between such third parties. I/We authorise Santorini Financial Planning Ltd to liaise with my other professional advisers in exchanging relevant personal information pertinent to my/our financial planning requirements and to rely on any such information provided. I/We agree that the terms of business of this Client Agreement will come into effect from the date of issue. Please tick this box if you do not wish for us or any company associated with us to contact you for marketing purposes by , telephone post or SMS. This is our standard client agreement upon which Santorini Financial Planning Ltd intends to rely. For your own benefit and protection you should read these terms carefully before signing them. If you do not understand any point please ask for further information. Client Signature Client Signature Client Name Client Name Date Signed Signed for and on behalf of Santorini Financial Planning Ltd: Santorini Financial Planning Ltd Director Signature Matthew Walne Santorini Financial Planning Ltd Director Name Date of Issue