Junior Individual Savings Account

Transcription

1 Initial Charge waived 0% Junior Individual Savings Account Class R GBP Application forms 2015/2016

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3 Junior Individual Savings Account Contents Page What is a Junior Individual Savings Account (Junior ISA)? Supplementary Information Document 4 Junior ISA terms and conditions 11 Junior ISA application forms 14 It is a savings account for children but one that is taxefficient. There is currently no tax to pay on interest, income or capital gain within the Junior ISA. And also just like ISAs, there are two types available: Cash Junior ISAs and Stocks and Shares Junior ISAs. Main features Allowance of 4,080 per child per tax year, rising in line with inflation Account held in child s name, but opened and managed by parent or guardian Once opened, anyone can contribute to a child s Junior ISA: you don t have to be a parent, guardian or relation No withdrawals are allowed until the child becomes 18, when the Junior ISA can be transferred to an adult ISA and the child gains full access to his or her capital Same tax benefits as an ISA The annual allowance (currently 4,080) can be split in any proportion between Cash and Stocks and Shares Artemis offers only Stocks and Shares Junior ISAs. Who is eligible? Any child resident in the UK who wasn t eligible or did not register for a Child Trust Fund (CTF). This is most likely to mean: Children born on or after 3 January 2011 Children born on or before 21 August 2002 Children born on or between 1 September 2002 and 2 January 2011 who didn t qualify for a CTF For more information about Junior ISAs please read the following pages. 3

4 Supplementary Information Document Thank you for requesting information from Artemis. If you require any additional information about us or our funds please contact us; You can phone us on , between 8am and 6pm Monday to Friday. We may record and monitor any phone calls. You can also: send an to: or write to us at: Artemis Fund Managers Limited PO Box 9688 Chelmsford CM99 2AE. Documents in alternative formats If you want any document in another format (for example, in large print, in Braille or on CD), phone the Client Services team on or contact us by or by post at the addresses shown above. Introduction Please read this document and the Key Investor Information Document(s) (KIIDs) relating to the fund(s) selected before making an investment. We treat all investors who buy our fund(s) as retail clients. That means you receive the greatest level of protection under the Financial Conduct Authority s regulations. Before investing, you should consider the following. Are you comfortable that you fully understand the features of the fund(s) you have chosen for the child? Do you understand that the fund(s) is/are only suitable for investors who are prepared to put their money away for at least five years? Do you understand and accept that the child may not get back all of the investment? Have you considered all the risks involved? Do you understand how charges affect the investment? We recommend that you get independent financial advice before making any investment decisions. Find an IFA is an The investment A Junior ISA can invest in any one or more of the following Artemis managed unit trusts; Artemis Capital Fund Artemis European Growth Fund Artemis European Opportunities Fund Artemis Global Energy Fund Artemis Global Growth Fund Artemis Global Income Fund Artemis Global Select Fund Artemis High Income Fund Artemis Income Fund Artemis Monthly Distribution Fund Artemis Strategic Assets Fund Artemis Strategic Bond Fund Artemis UK Growth Fund Artemis UK Smaller Companies Fund Artemis UK Special Situations Fund Each fund has different aims and objectives and sector exposure. Before investing in a fund you must have read the latest KIID for that fund. This is available from your adviser, Artemis Client Services or artemis.co.uk. A unit trust allows investors to pool money with other investors to buy a wider range of investments than you would be able to do on your own. This can help to reduce risk by spreading money over a range of investments and provides access to the services of a professional fund manager. All Artemis funds are divided into units, with the number of units held representing the child s share. Additional information and copies of the fund s latest annual and interim reports and accounts are available from our website artemis.co.uk. independent service that helps you search for an independent financial adviser (IFA) online at unbiased.co.uk. 4

5 What are the Key Investor Information Documents (KIIDs) and Supplementary Information Document (SID)? The KIIDs and SID are essential documents available to all investors. The KIIDs contain details of the investment objective, charges and risks for our funds. A KIID is aimed at helping you assess whether a particular fund meets the child s needs. It comes in a standardised format. The SID provides additional useful information you should be aware of before investing with us. When considering an investment in any of our funds, you should read the KIID for each fund and the SID carefully so that you understand what you are buying for the child, and then keep them safe for future reference. To make sure you have the most up-to-date version of the relevant KIIDs and SID, please visit our website or contact us. What is a Junior ISA? Junior ISA stands for Junior Individual Savings Account. Junior ISAs were introduced in November 2011 to allow children to hold a range of investments in a tax-efficient account. Children who are resident in the UK, under 18 and born after 3 January 2011, or any child that does not have a Child Trust Fund account, can invest in a Junior ISA. There are two types of Junior ISA a Cash Junior ISA and a Stocks and Shares Junior ISA. Depending on limits set by HM Revenue & Customs, an appropriate adult can invest on behalf of a child in a Cash Junior ISA and a Stocks and Shares Junior ISA in the same tax year. A child can only hold one Stocks and Shares Junior ISA and one Cash Junior ISA at any one time. Who can open a Junior ISA? A Junior ISA can only be opened by a person aged 16 or over. This can be the child themselves, if they are aged between 16 and 18, or a person with parental responsibilities. The person with parental responsibility could be the child s natural parents, a person who has legally adopted the child, a person who has been granted parental responsibility by the courts or a local authority that has parental responsibility for a child in its care. This person, named as the applicant in the Junior ISA application form, will be known as the registered contact and referred to as you or I throughout this document. Who can invest into a Junior ISA? Once an account has been opened by the child themselves or the registered contact, any person can invest into the Junior ISA. The person need not be a resident in the UK, nor do they need to be related to the child. Consent of the registered contact, i.e the responsible parent or child if over 16, is not required before accepting the subscription from any person. However, the registered contact must confirm the fund choice, and that they have read the KIIDs for the fund(s) selected. Subscriptions are made as a gift to the child, and cannot be repaid to the subscriber. Subscriptions can still be made even if a child becomes non-resident in the UK. Buying and selling How does the registered contact invest in a Junior ISA? You can open a Junior ISA: through a financial adviser; by phoning us on to make an investment using a debit card; by filling in a Junior ISA application or top up form and sending it to us. If you choose to invest a regular amount each month, you must fill in a Direct Debit instruction. You may want to send a cheque for your first monthly contribution with your Direct Debit instruction as we may not be able to set up your Direct Debit in time for the next collection. We will collect your Direct Debit payments in the first working day of each month. Are there minimum and maximum investment limits? Our minimum and maximum investment limits are set out in Minimum initial lump sum 500 Maximum investment in 2015/2016 tax year 4,080 Minimum top-up lump sum 500 Minimum regular investment 50 a month Minimum balance in each fund 500 the table above. If a payment has been made into a Cash Junior ISA during the current tax year, this will reduce the amount that can be invested in a Stocks and Shares Junior ISA. The limit for the tax year 2015/2016 is 4,080 for all eligible Junior ISA accounts. You can invest the entire amount in a Cash Junior ISA or a Stocks and Shares Junior ISA, or it can be split. It need not be split equally, but the subscription limit must not be exceeded. Only one Cash Junior ISA and one Stocks and Shares Junior ISA can be held at any one time. We only offer a Stocks and Shares Junior ISA. If we receive your instruction before 12 noon we will invest in the funds on the same working day. If we receive your instruction after 12 noon we will invest in the funds on the next working day. Can I top up the investment? Any person can make extra investments as long as the amount does not go over the maximum allowed in a tax year. The minimum top-up lump sum is 500. The minimum regular investment is 50 a month. The registered contact must confirm the fund choice, and that they have read the KIIDs for the fund(s) selected. What happens if a payment is not made following an instruction to buy units? 5

6 If you do not make the appropriate payment when you have instructed us to buy units, we may, without giving you notice, cancel that instruction or, if we have already bought the units, sell them to pay off any amounts you owe us. If your units have fallen in value, you would have to pay any shortfall. How do I make a withdrawal from the Junior ISA? The child, or any other person, cannot make any withdrawals from the Junior ISA. Only the child can withdraw funds when they turn 18 years of age, once we have received proof of identity and a completed ISA application form so that the Junior ISA can be converted to an adult ISA. This can be completed prior to the child s 18th birthday so that it does not delay the sale of units if required. Investments can be withdrawn prior to the child s 18th birthday when a terminal illness claim has been agreed, and we have received confirmation of this from HM Revenue & Customs. Will I receive an income? No, it is not permitted to receive any income from a Junior ISA account. Any income the fund(s) receive(s) is reinvested into the fund and automatically reflected in the value of your units. If the High Income Fund is selected, any income the units earn will be reinvested and will buy more units. What happens when the child is/turns 16? If the applicant is aged between 16 and 18 they can apply for a Junior ISA as the registered contact, with the authority to make investment decisions. When a child holding an Artemis Junior ISA turns 16 we will write to the child requesting their National Insurance number. We will also confirm to the child that they can take over the management of the account. If they wish to do so they should apply in writing to Artemis. Please remember no withdrawals can be made from a Junior ISA until the child is 18. In the tax year in which a child turns 16 they can subscribe up to the full Junior ISA limit. In addition, from their 16th birthday, they can subscribe to up to 50% of the adult ISA limit into a Cash ISA. In the tax year in which a child turns 17 they can subscribe up to the full Junior ISA limit, and subscribe up to 50% of the adult ISA limit into a Cash ISA. What happens when the child is/turns 18? When a child holding an Artemis Junior ISA turns 18, we will write to the child confirming they can take over the management of the account, and request they complete an adult ISA application form. 2015/2016 is 15,240 into an adult Stocks and Shares ISA or up to 50% of the adult Cash ISA limit. Only the child can withdraw funds from their Junior ISA when they turn 18 years of age. We will require proof of identity and a completed ISA application form. If required, this can be completed prior to the child s 18th birthday so that it does not delay the sale of units. How do I close the Junior ISA? A Junior ISA can only be closed when the child reaches their 18th birthday, by direct request from HM Revenue & Customs or the death of the child If there is a nominal balance, the Junior ISA can be closed to cover management charges and other specific expenses. What happens to the Junior ISA if the child dies? Proof of death of the child must be obtained before the Junior ISA can be closed. We require sight of the original death certificate or the coroner s interim document before we can close an account. Any subscriptions made after the date of death will not be valid subscriptions to the Junior ISA. Interest, dividends or gains after the date of death are not exempt from tax. Cancellation What if I change my mind? If you have purchased this product as a result of a personal recommendation from a financial adviser you would be entitled to cancel your investment should you change your mind. If you have the right to cancel, we will send you a cancellation notice. You will then have 14 days from the date you receive that notice in which to cancel. Details of how you might exercise these rights will be sent to you with your contract note confirming your investment. If the value of units has fallen since you opened your account, you may not get back the full amount you invested. Can I stop or change my monthly payment? Yes. All you need to do is to send us a completed amendment form. It may take up to 10 working days to change a Direct Debit instruction. If you change your bank account details, you must send us a new Direct Debit instruction form. Please remember a child may have multiple Direct Debits on their account at any one time. In the tax year in which a child turns 18 they can subscribe up to the full Junior ISA limit. In addition, from their 18th birthday they can subscribe up to 100% of the adult ISA limit 6

7 Administration What documents will you send to confirm the investment? We will send a contract note to confirm the investment to the registered contact or the child if they have taken over management of their account. If you are not the registered contact and are paying regular investments, we will send you an acknowledgement letter. Every six months the registered contact will receive a statement showing the value of the child s investments and any transactions since the last statement. The valuations shown on the statement will be as at the 12 noon valuation point on 5 April and 5 October. How are units priced? The value of units is related directly to the value of the investments held by the fund. We work out buying and selling prices at 12 noon each working day. This is known as the valuation point. The offer price is the price at which you would have traditionally bought units. However, we are currently waiving the initial charge. Therefore, the price you will normally buy units at is the creation price, which does not include an initial charge. How will I be able to follow the progress of the child s investments? You can find out the value of the investment, unit prices and the yield of each fund from Artemis. As well as the valuations we send out, the registered contact will also receive the fund s annual and interim short reports. You can get the latest copies of the report and accounts from us or our website at artemis.co.uk. Unit prices for all funds are available from artemis.co.uk. How are the investments held? The investments will be held in the name of the registered contact, but the child is the beneficial owner of the account. Can I re-register? Yes. Re-registration is the process through which the registered contact can transfer units from our register of the relevant fund to that of a subregister, such as a fund supermarket which offers access to a wider range of funds. The registered contact s interest in the investment is recorded as a nominee name on the relevant subregister. However, we will not be able to recognise the child as the underlying holder. If monthly investments are being made, new Direct Debit instructions will need to be set up with the organisation transferred to, as your existing Direct Debit will be cancelled. I am the registered contact, how do I tell you about any change in my personal details? You must write to us to tell us about any change in your personal details. Our address is given at the beginning of this document. Can the registered contact be changed? Yes, we require written consent from the existing registered contact before we can make any changes, even when the applicant is the account holder who is 16 years or older. Written confirmation is not required, where: a registered contact dies or cannot be contacted a registered contact lacks capacity a court order brings an end to the existing person being a person with parental responsibility for the child a court has appointed a guardian, orders the existing registered contact to cease or the new registered contact has adopted the child. We require sight of suitable documentation to evidence this before any changes can be made. A Junior ISA cannot be operated under a Power of Attorney (POA) for the registered contact. Charges How will charges and expenses affect the investment? When units are bought, a one-off charge is paid which is included in the price paid for the units. However, this charge is currently being waived. After that an annual management charge (AMC) is paid. We work this out each day as a percentage of the average value of each fund. For each fund there are other charges for the following: The costs of holding meetings with investors. Fees and expenses for any legal or professional advice for the funds. The costs of publishing daily prices and any costs of preparing, producing (including printing), distributing and revising fund documents. Charges related to fund administration and accounting. Smaller charges including trustee fees, registration, bank, custodial and audit fees and other allowable expenses are also charged to the funds. Full details of charges are listed in the prospectus. The ongoing charge shows, as a percentage, the annual expenses of the funds. It does not include any preliminary charge, which is shown separately, or the costs of buying and selling securities in the funds underlying portfolios. The ongoing charge is the European accepted standard for comparing the costs associated with funds. 7

8 Is there a charge for the transfer of a Junior ISA? Currently there is no charge. However, in the future we may charge if you want to re-register a Junior ISA to an organisation such as a fund supermarket. Are there any exit charges? There are no exit charges on the fund(s). However, for large deals (selling units worth 30,000 or more), we may sell your units at cancellation price, which can be lower than the bid price. This is to protect the remaining investors in the fund(s). Switching/transfers Can I switch my investments? The registered contact can switch the investments between funds in the Artemis range. If we receive an instruction before 12 noon, we will carry out the switch at 12 noon that same day. If we receive your instruction after 12 noon, we will carry out the switch on the next working day. We will make the switch by selling the units in the existing fund at the bid price, and buying units in the new fund at the creation price. However, your adviser may take up to 3% commission, in which case your buying price would be higher than creation price. Please remember before switching or investing into any fund you must have read the latest Key Investor Information Document (KIID) relating to the fund(s) you have selected. They are available from your adviser, our Client Services team or artemis.co.uk. Can I switch from a unit trust to a Junior ISA? Anyone can switch their investment from a unit trust to a Junior ISA, providing the amount that is switched is within the Junior ISA allowance for that tax year. Subscriptions are made as a gift to the child and cannot be repaid to the subscriber. If the switch is remaining in the same fund then the product switch will be completed at no cost, as we will sell from the unit trust at the bid price and buy in to the Junior ISA at the same bid price. If you are changing to a different fund then we will sell the units from the unit trust at the bid price and buy units in the new fund at the creation price. If we receive the instruction before 12 noon, we carry out the switch at 12 noon that same day. If we receive the instruction after 12 noon, we will carry out the switch on the next working day. The registered contact must confirm the fund choice, and that they have read the KIIDs for the fund(s) selected. Also complete a JISA application form. Can I transfer an existing Junior ISA to you? As only one Cash Junior ISA and one Stocks and Shares Junior ISA can be held at any one time, we will only accept Stocks and Shares Junior ISA transfers in full. We will accept a transfer of a Cash Junior ISA in full or part into an Artemis Stocks and Shares Junior ISA. Please be aware that Junior ISA transfers may take some time to complete, during which time the money may not be invested in the stock market. A Junior ISA can still be transferred even if the child becomes a non-resident in the UK. Can I transfer a Child Trust Fund to you? No, at present Artemis do not accept Child Trust Funds to be transferred into a Junior ISA. Taxation What about tax? Tax can affect the funds themselves and the child s individual tax position. The following information is based on our understanding of current law and practice, which could change in the future. If you are not sure about the tax position, please get advice from a professional adviser. How are Junior ISAs taxed? The child does not pay capital gains tax on the capital growth of the Junior ISA. Dividends reinvested or accumulated will suffer a 10% tax credit (that is, 10% tax will be taken) but will be free of tax once they are paid into the Junior ISA account. How is the fund taxed? The fund does not pay capital gains tax on its growth, but does pay corporation tax at a rate equivalent to the lower rate of income tax. Stamp duty reserve tax (SDRT) Stamp duty reserve tax is due on the total value of units we cancel, and on certain other transfers of units. The amount of tax due depends on the pattern of dealing within each fund and cannot be set at the time you give us your instructions to buy or sell units. Our policy is to pay SDRT from the value of the funds. In the last 12 months we did not charge SDRT to individual investors, and do not expect to do so. However, we can charge you SDRT if you sell units with a total value of more than 5% of the value of the relevant fund. Data protection We may make your name and address available to companies within the Artemis group so they can send you information about other investment services. They can do this by post, phone, or any other reasonable method. If you do not want to receive this information, please tell us at PO Box 9688, Chelmsford CM99 2AE or investorsupport@artemisfunds.com. We and other companies within the Artemis group will use any personal information we have about you for the purposes of managing products and services which we provide to you, preventing fraud and money laundering, marketing, and analysing the investment market and products. 8

9 We and other companies within the Artemis group may need to give personal information to any agent, independent financial adviser or other person who represents you. We and other companies within the Artemis group may need to give personal information to service providers, agents and contractors involved in providing services to us or the Artemis group. We and members of the Artemis group may need to transfer personal information to other Artemis group companies, service providers, agents and subcontractors in countries where they may not have data protection laws providing the same level of protection as those in the European Economic Area. In these circumstances, we will make sure that personal information is processed only in line with the relevant laws and under suitable confidentiality arrangements. By buying units in the funds, you agree to personal information being used in the way described above. Identification checks Identity checks may be undertaken on the registered contact, or any other person making investments on the child s behalf. We will check the identity of the child when they turn 18 years of age and the account is transferred to an adult ISA. Our checks may include searches of the electoral roll and making enquiries through credit-reference agencies. Under the Data Protection Act 1998, your instruction to buy our unit trusts gives us permission to gather this information. We can delay processing an instruction and withhold any payments due to the child until we receive satisfactory evidence of identity and address. We will hold any cash in an account that does not pay interest. We can refuse any application to buy our funds without giving a reason for doing so. If you would like a full list of acceptable documents please call Client Services on or investorsupport@ artemisfunds.com. Notices Any notices and instructions you give us must be given in writing and be signed by you. However, we can decide to act on instructions given by you, or on your behalf, even if those instructions are not in writing. We will not be liable for instructions given to us as a result of another person s negligence or dishonesty unless that person is an employee or agent of ours. a fund, we will need to get permission from investors first. Some changes we can make without permission but we must give investors notice. Compensation Am I entitled to compensation if something goes wrong? In certain circumstances you may be entitled to compensation under the terms of the Financial Services and Markets Act You can get more details from us or from: The Financial Services Compensation Scheme 7th Floor Lloyds Chambers Portsoken Street London E1 8BN. Website: fscs.org.uk Complaint What if I have a complaint? If you want to complain about any part of our service, please write to, phone or Client Services: Artemis Fund Managers Limited PO Box 9688 Chelmsford CM99 2AE. Phone: investorsupport@artemisfunds.com If you are not happy with how we deal with your complaint you can write to: Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR. Website: financial-ombudsman.org.uk Who manages the unit trusts? The manager of the unit trusts is: Artemis Fund Managers Limited Cassini House 57 St James s Street London SW1A 1LD. Website: artemis.co.uk This document and the full prospectus set out the terms and conditions on which we will accept your instructions for investing in the fund. We may change the terms and conditions. For some changes, such as those to the aims of 9

10 Who monitors your activities? All authorised unit trusts must appoint an independent trustee to act in the best interests of investors. The trustee of the fund is: National Westminster Bank Plc. The Broadstone 50 South Gyle Crescent Edinburgh EH12 9UZ. The funds auditors are: Ernst & Young LLP Ten George Street Edinburgh EH12 2DZ. Artemis and the funds are regulated by: Financial Conduct Authority 25 The North Colonnade Canary Wharf London E14 5HS. Website: fca.org.uk Consumer helpline:

11 Junior ISA terms and conditions Definitions Account Account holding your Investments in a Junior ISA. Application Form An Artemis Stocks and Shares Junior ISA Application Form or in the case of an ISA transfer, an Artemis Stocks and Shares Junior ISA Transfer Application Form. Applicant The person opening the Junior ISA on behalf of the Child. Company Artemis Fund Managers Limited. Financial Adviser Any person authorised by the FCA who has entered into a terms of business agreement with the Applicant which covers the investment. FCA The Financial Conduct Authority. Funds Artemis range of unit trusts. Investment Units in the Funds held through a Junior ISA. ISA An Individual Savings Account. ISA Regulations The Individual Savings Account Regulations 1998 (as amended from time to time). Junior ISA Agreement These Terms and Conditions and the Junior ISA application form. Manager Artemis Fund Managers Limited, authorised and regulated by the Financial Conduct Authority. Purchase Buying units within the Junior ISA. Registered contact The same as the Applicant. Rules These Terms and Conditions (as varied from time to time and the rules of the FCA and HM Revenue and Customs (as amended or replaced from time to time). Sale Selling units from the Junior ISA. Subscriber A subscriber is a person who invests in the Junior ISA. Once an account has been opened, any person can invest into the Junior ISA. Tax Year A tax year beginning on 6 April in any calendar year and ending on 5 April in the following calendar year. Terms and Conditions These Terms and Conditions (as amended from time to time). The Child The person named on the application form as the child and as the beneficial holder of the units. They are classed as a retail client. This means that they receive the greatest level of protection under the Financial Conduct Authority s regulations. Units Units in an Artemis unit trust. We The Junior ISA manager, Artemis Fund Managers Limited. We are authorised and regulated by the Financial Conduct Authority. Working Day A day (other than a Saturday, Sunday or statutory holiday) on which UK clearing banks are open for business. You The registered contact, as the applicant for the Junior ISA. You are classed as a retail client. This means that you receive the greatest level of protection under the FCA s regulations. 1 The Artemis Fund Managers Limited Junior ISA The Junior ISA will be a Stocks and Shares Junior ISA as defined in the Individual Savings Account Regulations 1998 (the Junior ISA regulations) and any amendments to them. We will manage your Junior ISA account in line with: your instructions; rules set by the Financial Conduct Authority (FCA); the Junior ISA regulations; and the Junior ISA agreement. If any term or condition of the Junior ISA agreement conflicts with the Junior ISA regulations, the Junior ISA regulations will apply. 11

12 2 Payments into the child s Junior ISA We will invest payments in line with the instructions given on the Junior ISA application form from the registered contact, as it is only them that can manage the investments within the Junior ISA. The child can only hold one Stocks and Shares Junior ISA at any one time. Anyone can pay in a lump sum or lump sums, or make regular monthly payments. The minimum lump sum that can be paid in at any time is 500. If regular monthly payments are made, the minimum payment is 50 per fund. The maximum that can be paid into the Junior ISA in the current tax year is 4,080: All or none of the yearly limit can be placed into a Stocks and Shares Junior ISA with any one provider or All or none into a Cash Junior ISA with either the same provider or a different provider. Artemis does not provide a Cash Junior ISA. 3 Investment To open a Junior ISA account you must apply by phone or fill in an application form. An account can only be opened by a person with parental responsibility. We may request proof of this status. a b c d If we accept your application, we will use your payments into the Junior ISA to buy units in the chosen Artemis fund(s). If we receive your instruction before 12 noon, we will buy the units the same working day. If we receive your instructions after 12 noon, we will buy your units the next working day. If we need to hold any money before it is invested, we will hold it in a separate account that does not pay interest. The registered contact can give us written instructions or telephone us to switch units to another fund or funds. The minimum amount to switch to any one fund is 500 (or any other amount we may set from time to time). The value of the remaining units in a fund you have switched units from must be at least 500. To make a switch, we sell the units at the bid price in the current funds and buy units in the new fund at the creation price. If we receive your instruction before 12 noon we will invest in the funds on the same working day. If we receive your instruction after 12 noon we will invest in the funds on the next working day. Your adviser may take up to 3% commission from this transaction. You can also switch units online. Upon closure (see section 11), any proceeds from the Junior ISA account are currently completely free from personal income tax and capital gains tax. Units are sold to or bought from us acting as principal (that is, we are acting on our own account and not as your agent). 4 Ownership All investments held in the Junior ISA belong to the child and cannot be used as security for a loan. You or we cannot transfer or lend Junior ISA investments, ownership documents or any other property relating to an account to anyone else. The units will be registered in the child s name. We must use any amount paid into the account to buy units. If we need to hold it before buying units, we will hold it in a separate account that does not pay interest. That account will be with the bank or building society we specify from time to time. 6 Your rights You have the right to receive a copy of the prospectus, attend and vote at meetings for investors, and receive any other information we send to people who have invested in a unit trust. You will also receive the relevant fund s annual and interim short reports. 7 Transfer to another Junior ISA provider You need to contact the other Junior ISA provider and fill in the Junior ISA transfer forms that they give you. The new Junior ISA provider will then send us your filled-in transfer forms and tell us that they will accept the transfer. If you are transferring a Junior ISA in cash, we will sell the units in your Junior ISA and pay the proceeds to the other provider. If you are transferring a Junior ISA in units, we will transfer your units to the new provider and you may have to pay a charge. 8 Statement of investments Every six months the registered contact will receive a statement showing details of all the units that have been bought and sold over the previous six months, the total number of units in the Junior ISA account, and the value of those units. The valuations shown on the statement will be as at the 12 noon valuation point on 5 April and 5 October. 9 Client Money Cash may be held for you in a client money account in the UK with an authorised bank in accordance with the FCA s client money rules. The bank will hold the cash on our behalf in an account separate from any account used to hold money belonging to us in our own right. We will not be responsible for any acts or omissions of the bank. If the bank becomes insolvent, we will have a claim on behalf of our clients against the bank. If the bank cannot repay all of its creditors, any shortfall may have to be shared pro-rata between them. No interest is earned on any balances in a client money account. We will use the delivery versus payment (DvP) exemption as permitted by the Rules, which provides for a one-day window during which money given to us is not treated as client money. We will use the DvP exemption when: (a) we receive cash from you in relation to units to be purchased on your behalf from the trustee; (b) we receive the proceeds of sale of units paid by the trustee to us in accordance with the Rules; or (c) we settle a transaction on your behalf with a commercial settlement system. If we have not passed subscription money to the trustee or if we have not paid redemption proceeds to you at the end of the one-day window, we will place the money in a client money bank account until we can make the transfer. Money which is not held as client money will not be protected if we become insolvent. 5 Custody 12

13 We may cease to treat cash held for you in a client money account as your cash, if we have held it for you for a period of not less than six years and, having taken all reasonable steps, are unable to contact you. In such circumstances, that cash can be paid to charity. We will pay all amounts due to you where you re-establish contact with us. 10 Records We will keep all records relating to the Junior ISA account as specified in the Junior ISA regulations and rules set by the FCA. We will make tax returns to HM Revenue & Customs and will give you all the tax information the Junior ISA regulations say that we must provide. We will tell you if the Junior ISA account has lost or will lose its tax advantages because it does not meet the requirements of the Junior ISA regulations. 11 Charges and commission Charges made to the Junior ISA account will be limited to those we make on our funds. Details of the charges for each fund are given in the Key Investor Information Documents. We may pay commission, out of the purchase price of units, to eligible financial advisers. We will value all units at 12 noon each working day. 12 Closing the account A Junior ISA can only be closed when the child reaches their 18th birthday, on the death of the child, or by direct request from HM Revenue & Customs. 13 Withdrawals from the account The child, or any other person, cannot make any withdrawals from the Junior ISA until the child turns 18 years of age, and we have received proof of identity and a completed ISA application form. This can be completed prior to the child s 18th birthday so that it does not delay the sale of units. Investments can be withdrawn prior to the child s 18th birthday in the event that a terminal illness claim has been agreed, and we have received confirmation of this from HM Revenue & Customs. The Junior ISA can also be closed to cover management charges and other specific expenses. 14 Communication You must give your instructions in writing. We will send confirmation of those instructions to the last address you gave us. We will only accept instructions given by phone, fax or if you also confirm your instructions in writing. We will only contact you in connection with managing the Junior ISA account. We may monitor and record phone calls. 15 Excluding our liability We will be liable for any losses the child suffers as a result of our negligence or something that we should or should not have done, or us not keeping to any of these terms and conditions. We will not be liable for any loss or damage you suffer as a result of circumstances which are beyond our reasonable control. We do not guarantee the performance of any funds or of the Junior ISA account. We will not be liable for any opportunity missed for increasing the value of the Junior ISA account, or for any reduction in the value of the Junior ISA account. The application form authorises us to give any information about the Junior ISA account to HM Revenue & Customs, the Financial Conduct Authority, our professional advisers, auditors and associates, and to anyone else we are allowed by law to give the information to. 16 Risk warnings The price of units, and the income from them, can fall and rise because of stock market and currency movements. Please remember that past performance is not a guide to future performance. Each of the funds has different risks associated with its underlying investments. These are described in their Key Investor Information Document, which you should read carefully before you make any decisions on investments. Tax laws and practices can change. The tax advantages of Junior ISAs are those available under current tax laws. The value of the tax advantages depends on individual circumstances. 17 Conflicts of interest A conflict of interest is when our own interests disagree with or clash with your interests. These conflicts of interest usually arise from us providing investment services to other clients. If a conflict of interest arises, we will try to make sure that we provide our services in a way which does not put any client at a disadvantage. We have adopted policies and procedures to manage conflicts of interest. You can get more information on those policies and procedures from us. 17 Changing these terms and conditions The Junior ISA account must keep to the ISA regulations, which may change from time to time. We can change these terms and conditions by giving you reasonable notice in writing, as long as the change does not result in the account not meeting the ISA regulations. 19 Governing law The Junior ISA agreement will be governed by English law. It is based on our understanding of current tax laws and HM Revenue & Customs practice. 20 Appointing a new Junior ISA manager We may appoint another company within the Artemis group to be the Junior ISA manager. If we do this we will give you one month s notice first. We may appoint any person (whether or not connected with us) to give advice on or to carry out any of our roles or duties, and may provide information about you and your account. Before we appoint another person to carry out any of our roles or duties, we will make sure that they are competent. 21 Administration The day-to-day administration of the funds is carried out by International Financial Data Services (UK) Limited. 13

14 Filling in the application forms Filling in your application forms Before filling in your application, be sure that you understand the features of the investments you have chosen. Please make sure you have chosen the fund(s) that is/are right for the child, have considered the risks involved and understand the effect charges have on the child s investment. Read these instructions and the Terms and Conditions carefully. The Supplementary Information Document explains the investment options available and contains important information about the child s investments. You should consider getting independent financial advice before you make any investment. Please fill in your application form in block capitals. If you want to make monthly payments, you also need to fill in the Direct Debit instruction on page 23. Payment If you are sending a cheque with your application, make it out to Artemis Fund Managers Limited. The cheque should be from a personal bank account held in your name or be made out by a building society. If the cheque is made out by a building society, arrange for it to sign the front of the cheque to confirm your name. If you are making monthly payments, fill in the Direct Debit form on page 23. We will then take your payments direct from your account on the first working day of each month. Please note: it takes at least 10 working days to set up a Direct Debit, so you may want to enclose a cheque, made payable to Artemis Fund Managers Limited, for the first monthly contribution. Important information Please make sure that the registered contact reads and signs the declaration and authorisation. Please also make sure that the registered contact keeps the Key Investor Information Document and Supplementary Information Document as you will be asked to acknowledge that you have done so when signing the declaration and authorisation. If you have made this investment through a financial adviser, make sure they fill in part F (or part E for transfers or top-ups). When you have filled in all relevant sections, send your application, with a cheque, to: Artemis Fund Managers Limited PO Box 9688 Chelmsford CM99 2AE. If you have any questions, phone Junior ISA opening Please fill in application form 1 and the Direct Debit form on page 23 if applicable. This should only be completed by the person with parental responsibility for the child, and therefore has authority to open an account. Junior ISA transfer Please fill in application form 2 and the Direct Debit form on page 23 if applicable. This should only be completed by the person with parental responsibility for the child, and therefore has authority to transfer the Junior ISA. Junior ISA top up Please fill in application form 3 and the Direct Debit form on page 23 if applicable. This should be completed by anyone wishing to invest for the child. 14

15 Application form 1 Investing in a Junior ISA with Artemis Fund Managers Limited K 2015/2016 A Applicant s details (person who applies to open a Stocks and Shares Junior ISA for the child mentioned in section B) Title (Mr, Mrs, Ms and so on) Surname First names Address Daytime phone number address If you already have an Artemis Fund Managers ISA or unit trust/oeic, give your client reference number The child named below will be the beneficial owner of the account investments. B Child s details Child s title Child s surname Child s first name(s) Child s address Child s date of birth Child s National Insurance Number (if they have one) C Subscriber details Title (Mr, Mrs, Ms and so on) Surname Daytime phone number address First names Address Signature Date D Declaration and authorisation Please read this section carefully before you sign and date the declaration, and make sure that the total amount you want to invest over the whole tax year (as shown in section E) is not more than the Stocks and Shares Junior ISA limit. We intend to rely upon our standard Stocks and Shares Junior ISA terms and conditions. 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 more information. 1 I am aged 16 or over and I am the child detailed in section B, or have parental responsibility for, and will be the first registered contact for, the Stocks and Shares Junior ISA for the child in section B, who will be the beneficial owner of the Stocks and Shares Junior ISA. 2 The child detailed in section B does not hold a Child Trust Fund. 3 The child who will hold the Stocks and Shares Junior ISA is either a resident in the UK, a UK Crown servant, married to or in a civil partnership with a UK Crown servant, or a dependent of a UK Crown servant. 4 This application is to open a Stocks and Shares Junior ISA for the child named in section B. I have not subscribed to another Stocks and Shares Junior ISA for the child, and I am not aware of any other Stocks and Shares Junior ISA for the child. I will not knowingly make subscriptions that will result in the annual subscription limit being breached. In relation to monthly savings, the amount invested under the Direct Debit Scheme will be as set out in this form or the maximum amount allowed, whichever is less. 5 Any Stocks and Shares Junior ISA transfers I apply for are valid Stocks and Shares or Cash Junior ISAs. 6 I authorise you to hold the cash subscription, plan investment, interest, dividends and any other rights or funds relating to those investments and any other cash and to make on the child s behalf any claims to tax relief on the investments. I understand that you accept no responsibility for any loss I suffer as a result of any delay in me giving you my application form. I confirm that I have read and kept a copy of the Stocks and Shares Junior ISA terms and conditions. As far as I know, the information I have filled in on this application form is correct. I confirm that all investments I have made, and will be made, belong to the child in section B. I will tell you, Artemis Fund Managers Limited, if any of the above no longer apply. I/we confirm that I/we am/are aware that you will use the Delivery versus Payment exemption from the requirement to treat client money as client money in accordance with the FCA Handbook of Rules and Guidance. In the event that you become insolvent or otherwise fail, I/we understand that there is a risk of loss or delay in the return of any money held by you that is not treated as client money as a result of your use of the Delivery versus Payment exemption, and that there is no guarantee that such money would be returned to me/us. I hereby consent to you making use of the Delivery versus Payment exemption, as more fully described in the relevant section of the Prospectus. Signature Date Data Protection Act We and other companies within the Artemis group will use any personal information we have about you for the purposes of managing products and services which we provide to you, preventing fraud and money laundering, marketing, and analysing the investment market and products. We may make your name and address available to companies within the Artemis group so they can send you information about other investment services. They can do this by post, phone, or any other reasonable method. If you do not want to receive any information from us about other products and services, please tick the box. Prospectus and the manager s report If you would like a copy of the full prospectus or the manager s report for your chosen fund, please tick the box. Registered in England, registration number Registered office: Cassini House, 57 St James s Street, London, SW1A 1LD. 15

16 E Investment requirements I want to open an Artemis Fund Managers Limited Stocks and Shares Junior ISA to invest the following. Lump sum Monthly savings Period you want the ISA open for (Please tick one box) 2015/2016 tax year and later years into a Stocks and 2015/2016 tax year only Shares Junior ISA until further notice Investment limits each tax year Stocks and Shares Junior ISA Minimum Maximum investment investment Lump sum 2015/ a fund 4,080 Monthly savings 2015/ for each fund In the boxes below, fill in the amounts you are investing in each fund. You can select to invest lump sums, monthly payments or both. I confirm that I have read the latest Key Investor Information Document (KIID) relating to each fund selected. Failure to tick this box will result in your application being rejected. Fund Lump Sum Monthly payment Artemis Capital class R units Artemis European Growth class R units Artemis European Opportunities class R units Artemis Global Energy class R units Artemis Global Growth class R units Artemis Global Income class R units Artemis Global Select class R units Artemis High Income class R units Artemis Income class R units Artemis Monthly Distribution class R units Artemis Strategic Assets class R units Artemis Strategic Bond class Q units Artemis Strategic Bond class M units (the minimum investment is 10,000) Artemis UK Growth class R units Artemis UK Smaller Companies class R units Artemis UK Special Situations class R units Total Income received on accumulation units is reinvested into the fund automatically and is reflected in the value of units. F To be filled in by your financial adviser Company name and address (use Agent stamp if available) Please tick if advice not given If you have ticked the box above for advice not given, please complete the commission box below. Agent number Commission % 16 Registered in England, registration number Registered office: Cassini House, 57 St James s Street, London, SW1A 1LD.

17 Application form 2 Transferring a Junior ISA to Artemis Fund Managers Limited K 2015/2016 A Applicant s details (person who applies to open a Junior ISA for the child mentioned in section B) Title (Mr, Mrs, Ms and so on) Surname Daytime phone number address First names Address If you already have an Artemis Fund Managers ISA or unit trust, give your client reference number below. The child named below will be the beneficial owner of the account investments. B Child s details Child s title Child s surname Child s first name(s) Child s date of birth Child s National Insurance number (if they have one) Child s address D Declaration and authorisation Please read this section carefully before you sign and date the declaration, and make sure that the total amount you want to invest over the whole tax year (as shown in section E) is not more than the Stocks and Shares Junior ISA limit. We intend to rely upon our standard Stocks and Shares Junior ISA terms and conditions. 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 more information. 1 I am aged 16 or over and I am the child detailed in section B, or have parental responsibility for, and will be the first registered contact for, the Stocks and Shares Junior ISA for the child in section B, who will be the beneficial owner of the Stocks and Shares Junior ISA. 2 The child detailed in section B does not hold a Child Trust Fund. 3 The child who will hold the Stocks and Shares Junior ISA is either a resident in the UK, a UK Crown servant, married to or in a civil partnership with a UK Crown servant, or a dependent of a UK Crown servant. 4 This application is to open a Stocks and Shares Junior ISA for the child named in section B. I have not subscribed to another Stocks and Shares Junior ISA for the child, and I am not aware of any other Stocks and Shares Junior ISA for the child. I will not knowingly make subscriptions that will result in the annual subscription limit being breached. In relation to monthly savings, the amount invested under the Direct Debit Scheme will be as set out in this form or the maximum amount allowed, whichever is less. 5 Any Stocks and Shares Junior ISA transfers I apply for are valid Stocks and Shares or Cash Junior ISAs. 6 I authorise you to hold the cash subscription, plan investment, interest, dividends and any other rights or funds relating to those investments and any other cash and to make on the child s behalf any claims to tax relief on the investments. I understand that you accept no responsibility for any loss I suffer as a result of any delay in me giving you my application form. I confirm that I have read and kept a copy of the Stocks and Shares Junior ISA terms and conditions. As far as I know, the information I have filled in on this application form is correct. I confirm that all investments I have made, and will be made, belong to the child in section B. I will tell you, Artemis Fund Managers Limited, if any of the above no longer apply. I/we confirm that I/we am/are aware that you will use the Delivery versus Payment exemption from the requirement to treat client money as client money in accordance with the FCA Handbook of Rules and Guidance. In the event that you become insolvent or otherwise fail, I/we understand that there is a risk of loss or delay in the return of any money held by you that is not treated as client money as a result of your use of the Delivery versus Payment exemption, and that there is no guarantee that such money would be returned to me/us. I hereby consent to you making use of the Delivery versus Payment exemption, as more fully described in the relevant section of the Prospectus. Signature Date Data Protection Act We and other companies within the Artemis group will use any personal information we have about you for the purposes of managing products and services which we provide to you, preventing fraud and money laundering, marketing, and analysing the investment market and products. We may make your name and address available to companies within the Artemis group so they can send you information about other investment services. They can do this by post, phone, or any other reasonable method. If you do not want to receive any information from us about other products and services, please tick the box. Prospectus and the manager s report If you would like a copy of the full prospectus or the manager s report for your chosen fund, please tick the box. Registered in England, registration number Registered office: Cassini House, 57 St James s Street, London, SW1A 1LD. 17

18 E Investment requirements I want to open an Artemis Fund Managers Limited Stocks and Shares Junior ISA to invest the following. Lump sum Monthly savings Period you want the ISA open for (Please tick one box) 2015/2016 tax year and later years into a Stocks and 2015/2016 tax year only Shares Junior ISA until further notice Investment limits each tax year Stocks and Shares Junior ISA Minimum Maximum investment investment Lump sum 2015/ a fund 4,080 Monthly savings 2015/ for each fund In the boxes below, fill in the amounts you are investing in each fund. You can select to invest lump sums, monthly payments or both. I confirm that I have read the latest Key Investor Information Document (KIID) relating to each fund selected. Failure to tick this box will result in your application being rejected. Fund Lump Sum Monthly payment Artemis Capital class R units /% Artemis European Growth class R units /% Artemis European Opportunities class R units /% Artemis Global Energy class R units /% Artemis Global Growth class R units /% Artemis Global Income class R units /% Artemis Global Select class R units /% Artemis High Income class R units /% Artemis Income class R units /% Artemis Monthly Distribution class R units /% Artemis Strategic Assets class R units /% Artemis Strategic Bond class Q units /% Artemis Strategic Bond class M units (the minimum investment is 10,000) /% Artemis UK Growth class R units /% Artemis UK Smaller Companies class R units /% Artemis UK Special Situations class R units /% Total /% Income received on accumulation units is reinvested into the fund automatically and is reflected in the value of units. F To be filled in by your financial adviser Company name and address (use Agent stamp if available) Please tick if advice not given If you have ticked the box above for advice not given, please complete the commission box below. Agent number Commission % 18 Registered in England, registration number Registered office: Cassini House, 57 St James s Street, London, SW1A 1LD.

19 F Junior ISA transfer instruction form Instruction to transfer a Junior ISA Details of the Junior ISA to be transferred Stocks and Shares Junior ISA Current Junior ISA manager Address Cash Junior ISA Child s surname Child s first name(s) Child s address Full transfer (as cash) All units in your existing account will be sold and transferred as cash, together with any cash balances. Full re-registration (of Artemis units only) All Artemis units in your existing account will be transferred to us, together with any cash balances. ISA to be transferred and plan number Registered contact title Surname First names Address I instruct my current Junior ISA manager (named in this form) to transfer these units or sell and transfer cash within my ISA as shown, with immediate effect, and to transfer where applicable the money to the ISA Department, Artemis Fund Managers Limited, PO Box 9688, Chelmsford, CM99 2AE. Signature Date Information for current Junior ISA managers Cheques should be made payable to Artemis Fund Managers Limited. You should send a full history of the Junior ISA (or Junior ISAs) to us as soon as you can. Artemis Fund Managers transfer details: tax reference , HM Revenue & Customs reference Z1157. Registered in England, registration number Registered office: Cassini House, 57 St James s Street, London, SW1A 1LD. 19

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