We re enhancing the trading options available on our website and from 24 July you ll be able to

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1 Online trading enhancements Advised business We re enhancing the trading options available on our website and from 24 July you ll be able to A) pend lump sum trades B) set up and maintain regular investments online. This functionality will be available to you via the Cofunds website and this document gives you a detailed explanation of the changes. A) Pending lump sum trades You can now choose to pend a trade where there are insufficient funds in your client s Cofunds Cash Account / Trading Account. This is an additional service to the normal choice of payment methods: Debit Card Cofunds Cash Account / Trading Account (where monies are available) CHAPS for Investment Funds purchases. When you pend a trade, it will be placed into the market only when sufficient funds are in your client s Cofunds Cash Account / Trading Account. You can then send a cheque or transfer the money by BACS/CHAPS to pay for the trade. You can pend a single trade or multiple trades and send just one single payment per client to cover all their pending trades. This new functionality also allows you to invest into model portfolios and pay by cheque. As soon as we see there are enough funds to place the first priority trade, we ll automatically deal from the Cofunds Cash Account / Trading Account. Please note, you ll only be able to use the pend trade functionality if there are insufficient funds in the Cofunds Cash Account or Trading Account. If paying by debit card or directly from the Cofunds Cash Account/ Trading Account, there are no changes to the current journey and trades will not appear as pending. No correspondence will be sent to your client when a pending trade has been submitted. A contract note will only be issued once monies have been received for the trade and it has been placed in the market. Which products can I pend a trade on? Cofunds Investment ISA Investment Funds

2 Cofunds Pension Account Collective investments - providing they have been previously set up. To place a pending trade against the CPA or another pension on the platform the product must have been set up on Cofunds. Insured products (L&G Bond and Pension) are not currently supported. How do I place a pending trade? Follow the process detailed below - the steps in bold show where the process is the same as present and is not changing: Select customer Go to Trade tab select Buy Enter the customer s personal details Enter the product and fund choice Select payment method - Pend trade (only where the Cash Account / Trading Account balance is less than the trade amount) - Pay from Cash Account / Trading Account or Debit card will continue to be payment options Enter income options Confirm declarations, Cofunds Terms and Conditions and Key Features documents View summary of pending trade Submit trade - Deal reference is issued for the trade - Pending trade will be visible against the customer s account Pay for trade - You ll have the option to pay by cheque or pay by BACS /CHAPS - Cheque payment You can download a pre-populated PDF which will include summary details of the trade. This form should be printed and sent to Cofunds with the cheque Optionally you can enter the cheque number on the PDF in case the cheque and form become detached BACS /CHAPS You can download a PDF with details of the bank account, sort code and account number to which they should make payment. Please note that there is normally a charge for using CHAPS

3 NOTE: Payment for a collective pension or bond trade can only be made from the product Trading Account. Money can be added to the product Trading Account via the usual processes which may require contacting the product provider. What if I have trades for both an ISA and the Cofunds Pension Account? A Cheque Payment PDF should be generated via the website and sent to Cofunds for the ISA, and a CPA application would need to be completed and sent to Cofunds for the pension - you could then send one cheque to cover both trades. Monies for the CPA would first be credited to the Cofunds Cash Account, before being moved to the Cofunds Pension Trading Account, via Suffolk Life, within 4 working days, at which point the pending trade for the CPA would be released. How can I view pending trades? You can view all pending trades for a client on the Account Maintenance screen by selecting the relevant account (if the customer has more than one). You re able to re-prioritise or cancel (see below) any pending trade from this screen as well as view how long you have to change or action the trade before it expires. How long will a pending trade be valid for? They re valid for 14 calendar days after the pending trade has been placed or until there are sufficient funds to place the trade a user cancels the trade. If the trade has not been cancelled or placed after 14 calendar days, the trade will be removed. Any monies received after this time will be placed into the Cofunds Cash Account or product Trading Account. If still required, a further trade would need to be submitted, paying from the balance held in the Cofunds Cash Account/ Trading Account. MI on expired pending trades is available, however no notification will be sent at the time. Pending trades expire for a number of reasons To ensure that fund choice remains valid as corporate events and actions can happen frequently To ensure that a client does not build up a list of conflicting trade instructions To ensure the validity of the advice and trade instruction. What happens if the cheque arrives after the trade has expired? As a pending trade is only valid for 14 calendar days, if no funds have been received in the Cofunds Cash Account / Trading Account to release the trade, it will expire.

4 You re able to recreate the trade and use the monies held in Cofunds Cash Account / Trading Account to pay for the trade. MI is available via My Information which will show a report of all pending trades that have expired. Other factors that will expire a pending trade Deceased client all pending trades will expire upon notification of death If a client moves to a different adviser If a fund closes following a corporate action, and that fund is part of a pending trade, the whole trade will expire (even if other funds are still open and valid) Tax Year End (for affected products only) any pending trade for this tax year, that has not been placed, will expire at Tax Year End. The ability to carry pending trades across tax years will be available later this year. How do I prioritise trades? The order in which the trades are created will determine the order in which the trades will be released when monies are received in the Cofunds Cash Account/ Trading account. On the Account Maintenance screen, you can view the order in which the trades have been placed. You can use this screen to re-prioritise the trades as you wish, ensuring the most important trade is released first particularly where monies may arrive in the Cofunds Cash Account at different times and for different amounts. Use the arrows to move the trade before clicking the Confirm button to save these changes, or Reset to go back to the original prioritisation. How do I cancel pending trades? If, for any reason, you wish to cancel a pending trade, you can do so via the Account Maintenance screen. This is only possible where there are insufficient funds in the Cofunds Cash Account/ Trading Account to release the trade and the trade has not been placed. Trades paid for by debit card or directly from the Cofunds Cash Account/ Trading Account cannot be cancelled. Management Information Management Information is available online in the My Information area.

5 Two reports are available Expired Trades Outstanding Pending Trades This will show trades across your firm (depending on your access level). You can also view pending trades on a client by client basis by searching for your client and then viewing Account Maintenance and selecting Pending Trades. Example Trades Single Pending Trade Day Cash Balance Pending Trades Result 1 3,000 Pending trade for ISA placed for 10,680 Insufficient funds in Cash Account to release trade, trade remains pending 4 3,000 plus cheque received for 10,000 = 13, ,320 Sufficient funds in Cash Account, ISA trade for 10,680 will be released. 2,320 remains in Cash Account Multiple Pending Trades Day Cash Balance Pending Trades Result Pending trade for Investment Fund placed for 20, Pending trade for ISA placed for 5,000 Insufficient funds in cash account, trades remain pending 2 10,000 cheque received Cash Account now has 10,000. However, as the first pending trade is for 20,000, no trades will be placed as there are insufficient funds 3 10,000 Adviser re-prioritises pending trades, and moves the ISA trade to be no 1. There are sufficient funds in cash account to pay for the 5,000 ISA trade this will be released. 4 5,000 Cash account now has 5,000,which insufficient to

6 5 5,000 plus cheque received for 15,000 place the 20,000 Investment fund trade Sufficient funds, Cofunds will place the trade for investment fund. B) Regular investments You re now able to submit and maintain Regular Investment Instructions online for new and existing products. This will be available for ISAs and Investment Funds including model portfolios and panels. How do I set up a Regular Investment Instruction? Firstly, a client s nominated bank details would need to be set up. Having a linked bank account is essential for Cofunds to set up a Regular Investment. This will be the bank account from which we will deduct monthly payments. You can set up a client s nominated bank account from the Account Maintenance area. Select the appropriate account Select to view the Linked Bank Account area Select Create - this will allow you to enter your customer s bank details Once complete - tick to verify. Once set up: Select Customer go to Account Maintenance Select the appropriate account Select Create new regular investment on the Account Maintenance page Select the product against which you wish to set up a Regular Investment - ISA, Investment Funds only Enter Commission Fund choice - You can assign a customer to a model portfolio, or select funds from a panel using the fund selection filters. Enter amount to invest Select income options Read and confirm declarations, Cofunds Terms and Conditions and Key Features documents View and/ or print Key Features documents

7 Print application - Only needed for the first Regular Investment for a client s account A PDF can then be downloaded which populates client details including bank details. The customer will then need to sign the PDF before it s sent to us - If we already have a Regular Investment Instruction for a client s account there is no need for another signed application, and the new regular investment can be set up fully online Your client will receive a confirmation note following the set up of a regular investment instruction. Regular Investment applications for ISAs and Investment Funds need to be received by the last day of the month in order for the first direct debit collection to be made on or just after the 25th calendar day of the following month. Direct debits will be taken on the 25th calendar day of each month from then onwards. There are still some instances where a Regular Investment cannot be set up online. Where the product involves a third party provider, Regular Investments need to be set up directly with that provider. Also, when setting up regular investments for joint holders or when setting up a new designated account for a client the paper application form needs to be completed and signed by the client/s. How do I view and amend Regular Investments? The Account Maintenance function allows you to view all products where a client has a Regular Investment set up. From the Regular Investments area you can amend these Regular Investments From here you can also add a new Regular Investment. For an ISA or an Investment Fund you can amend the following: Commission Fund choice - as long as the client is not linked to a model portfolio Amount being invested into funds - you can change existing monthly payments by entering a new value into New monthly payments - New monthly payment figure can be zero to stop contributions into a particular fund Income options if a client decides to change their income options when placing a trade from Reinvest to Pay to Cash Account you would need to return to Account Maintenance to confirm the destination of the income. - From here you ll need to re-affirm declarations, Cofunds Terms and Conditions and Key Features documents

8 Once confirmed, you ll be notified when the changes will be applied. A Regular Investment takes five working days to be amended - therefore changes made within five working days will not be applied until the following collection Amending Regular Investments works slightly different with other products SIPP Centre SIPP, Suffolk Life products - you re able to amend the fund choice, commission and income options; however the overall investment amount must remain the same. If the amount being regularly invested needs to be amended you need to complete the required form, available on the Cofunds website. Model portfolios - only commission, income or the amount being invested can be amended. Cofunds Pension Account - you re able to amend the amount of Regular Investment, commission, fund choice and income options. NOTE: changing the Regular Investment Instruction will not change the amount being regularly debited from your bank account as part of your regular contribution to your pension. If you wish to change the amount of money being collected from your bank account and paid into the Pension Trading Account, you will need to send a CPA Contribution Request form to Cofunds to amend the regular contribution. How do I stop a Regular Investment? Regular Investment Instructions can be stopped online from within the Regular Investments area of the Account Maintenance tab. This can be done by clicking the Stop Regular Investment button on the screen and then clicking confirm. Provided this is completed three working days before the next collection, no further payments will be taken. If the user stops the Regular Investment after this time, Cofunds will collect one more payment before cancelling the Regular Investment. NOTE: Regular Investments for non-cofunds products can t be stopped online.