Simplifying our Legal Structure Important Information
Important news about your Barclays Stockbrokers Account In the second half of 2012 Barclays Stockbrokers Limited ( BSL ) will be transferring its business to Barclays Bank PLC. This means that BSL will no longer be the company providing services to you; it will be Barclays Bank PLC. We will confirm the transfer date nearer the time but, in the meantime, we would like to tell you what the change will mean for you and confirm the action you need to take to ensure the smooth transfer of your account. Why are we making this change? We are making this change to simplify the way we do business and the way we offer our services to you. This change is part of broader changes we are making to streamline Barclays as a business. You will continue to receive the same high standard of products and services with the added benefit that they will be brought to you or provided by Barclays Bank PLC. As a bank, Barclays Bank PLC must comply with strict capital requirements. Once transfer has taken place, you will be dealing with one of the strongest banks in the UK. It also means that you will be dealing with only one company, making it simpler for you to know who is providing services to you. Which accounts are affected? All BSL accounts will be affected by this transfer of business. Will I notice any changes to the services I receive? No. Services provided by Barclays Bank PLC will be almost identical to those you currently receive from BSL. Our services will still be offered under the trading name of Barclays Stockbrokers and you will continue to have access to the same wide range of investments with the same account, portfolio number and functionality. Your login and security credentials to the Barclays Stockbrokers website will remain unchanged. There are, however, some important differences and these are set out in this brochure. It is important that you take time to read this information to understand what the changes will mean for you. Will the way in which you hold my investments and money change? At present, under the UK regulatory regime, BSL performs two important functions: It holds client investments in safe custody and holds cash in your account as Client 2
Money. Below we explain where there will be changes to these functions on transfer. Investments There will be no change to the way your investments are held. Currently, your investments are held using nominees. Following transfer, your investments will continue to be held by the same nominees. The only change will be that the company responsible for providing safe custody of your investments (including investments in an ISA) will be Barclays Bank PLC), in place of BSL. Your right to make a claim to the Financial Services Compensation Scheme ( FSCS ) in respect of the investment services that you receive will remain unchanged. Cash Currently, as BSL is not a bank, it is required to hold your cash as Client Money in accordance with the FSA s Client Money rules. This means that cash is held with regulated banks completely separate from BSL s own money and assets. Under the current rules, BSL cannot hold more than 20% of its Client Money with banks within the Barclays Group. The remaining 80% of Client Money is held with a number of third party banks, which change regularly. All other BSL accounts Yes, there will be a change to the way your cash is held. Once BSL transfers its business to Barclays Bank PLC, Client Money held in your accounts will be held by Barclays Bank PLC as banker and will be treated in the same way as a cash deposit in a bank account. Please note that this does not mean that your account will be a fully functional current account. Its operation will remain as it does today and you will only be able to make payments to and from your account using the UK bank or building society account you nominated on your Application Form or notified us of (referred to as your Chosen Account in the terms and conditions). What happens to my cash if Barclays Bank PLC becomes insolvent? In the event that Barclays Bank PLC were to become insolvent, you will become a creditor of the bank. In the event of insolvency, you may be entitled to make a claim under the FSCS up to a level of 85,000 for all cash held by you on deposit across Barclays Bank PLC. Accordingly, following transfer to Barclays Bank PLC, if you have a number of accounts holding cash with the Bank (for example a savings account, a current account and a Barclays Stockbrokers account), these balances held for you will increase the total that you hold with Barclays Bank PLC and on default of the Bank the FSCS would pay you a maximum amount of 85,000, irrespective of whether you hold more than 85,000 across your accounts. This is because the 85,000 FSCS limit is given per customer, not per bank account. The balance owed to you would need to be claimed as part of the liquidation process. 3
Example post transfer from BSL to Barclays Bank PLC You have a cash balance of 30,000 on your BSL account. You also have a current account with Barclays Bank PLC that has a balance of 50,000 and a savings account with Barclays Bank PLC that has a balance of 15,000. You therefore have a total of 95,000 deposited with Barclays Bank PLC. If Barclays Bank fails, the FSCS will pay compensation of 85,000 so for the remaining 10,000 you would rank as an unsecured creditor. For further information about the FSCS and how it pays compensation, please visit www.fscs.org.uk Will there be any change to the way interest is paid to me? No there will be no change to the way interest is paid on your ISA. I have a BSL ISA - will my ISA Plan manager change? Yes, there will be a transfer of all ISAs so Barclays Bank PLC will become your plan manager once the transfer has taken place. You have a right to transfer your ISA whenever you want to. If you do not want your ISA transferred to Barclays Bank PLC please contact us on 0845 758 5039 to discuss transferring your ISA to another plan manager. The transfer will not impact any existing ISA that you may hold with Barclays Bank PLC (subject to the standard ISA subscription rules). Do I need to sign up to new terms and conditions? No, copies of our terms and conditions for all products can be found at www. BarclaysStockbrokers.co.uk. If you require paper copies please contact us on 0845 758 5039. We will be making some changes to these terms to reflect that from the effective date, the service will be provided by Barclays Bank PLC, the way we hold cash balances is changing, and in relation to any claim you may have under the FSCS, it will be against a default by Barclays Bank PLC. These changes are set out on pages 7-9 of this brochure and you should read them carefully. They will come into effect on the date that the transfer takes place. We will tell you that date nearer the time. Will I need to set up a new Direct Debit? No the good news is that you need take no action to continue receiving the benefits of Direct Debit. Please be assured this change will not affect the service you receive in any way. The only change you will notice is that once the transfer has 4
taken place, Barclays Bank PLC will collect your Direct Debits instead of BSL and therefore Barclays Bank PLC will appear on your Bank/Building Society statement. There is no need for you to complete a new Direct Debit Instruction, as details of the change will have been supplied to your bank, which may also notify you independently. Additionally you may also see a comment on your bank statement advising you of the final payment under the old name details and the first payment under the new name/details. You will continue to enjoy the full benefits of the Direct Debit Guarantee, as detailed below. If you have any questions about this change please call us. What do I need to do? You can confirm your consent to the transfer in any of the following ways: By completing and returning the enclosed consent form to us, in the prepaid envelope provided; Telephoning us on 0845 758 5039 Via the internet, as follows Log onto www.barclaysstockbrokers.co.uk 1. Select Contact Us (top right of the screen); 2. Select General Enquiries from the Contact us by email menu (middle of the screen); 3. Select Continue to your online enquiry ; 4. Please complete the Personal Details section; 5. In Enquiry Details section, select the Simplifying our Legal Structure option in the Primary Enquiry Category field; 6. In the Secondary Enquiry Category, please choose only ONE response and then click Send Enquiry to send your response to us. Once we have your consent we will make all the necessary arrangements to ensure a smooth transition. It is important that you respond using any of the methods to indicate your Consent to Transfer. What happens if I don t agree to my account being transferred to Barclays Bank PLC? You may decline the transfer of your account to Barclays Bank PLC. If you decline, unfortunately, you will no longer be able to hold your account with BSL. We would like to understand your concerns and we therefore encourage you to contact our client service team on 0845 758 5039 who will be able to answer any questions you may have. If you still do not wish to consent to the transfer, we can discuss the options available to you. 5
What if I have any questions? You can find more information about the transfer by contacting our client service team on 0845 758 5039. The Direct Debit Guarantee This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits If there are any changes to the amount, date or frequency of your Direct Debit Barclays Bank PLC will notify you 10 working days in advance of your account being debited or as otherwise agreed. If you request Barclays Bank PLC to collect a payment, confirmation of the amount and date will be given to you at the time of the request. If an error is made in the payment of your Direct Debit, by Barclays Bank PLC or your bank or building society you are entitled to a full and immediate refund of the amount paid from your bank or building society If you receive a refund you are not entitled to, you must pay it back when Barclays Bank PLC asks you to You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify us. 6
Changes to your Terms For your ease of reference, we have described below what changes will occur to your agreement(s). If you do not know which agreements apply to you, please call us on 0845 758 5039. Client Agreement Account What changes will you see? Barclays Wealth Terms Managed Savings Account All reference to Barclays Stockbrokers Limited will be replaced by Barclays Bank PLC. Managed Savings Account (to be read in conjunction with the Barclays Wealth Terms) Managed Savings Account All reference to Barclays Stockbrokers Limited will be replaced by Barclays Bank PLC unless indicated to the contrary below and we and our and ours will refer to Barclays Bank PLC. The definitions of Client Money and Client Money Rules will be deleted. Paragraph 2.1 will be deleted and replaced as follows: The Services are provided by Barclays Bank PLC. We are authorised and regulated by the FSA. You can find us on the FSA Register by searching for our registration number: 122702. Paragraph 3.1 Barclays Stockbrokers Limited will be replaced with Barclays Stockbrokers Paragraph 9.2 will be deleted and replaced as follows: Your money will be held with Barclays Bank PLC. Money held in an account with Barclays Bank PLC will be held in an account with us as your banker and will therefore be subject to the UK regime regulating banks. 7
Client Agreement Account What changes will you see? Managed Managed Paragraph 9.3 will be deleted. Paragraphs 13.5 and 17.1 Barclays Savings Account Savings Account Stockbrokers Limited will be replaced (to be read in with Barclays Stockbrokers conjunction with the Barclays Wealth Terms) (continued) Paragraph 17.4 will be deleted and replaced as follows: Barclays Bank PLC is authorised in the UK by the Financial Services Authority and eligible depositors and investors may be covered by the Financial Services Compensation Scheme ( FSCS ) if Barclays Bank PLC is declared in default. Investments Payments to investors under the FSCS are limited to 50,000 to any one eligible investor. Deposits Important information about compensation arrangements We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses are covered by the scheme. 8
Client Agreement Account What changes will you see? Managed Savings Account (to be read in conjunction with the Barclays Wealth Terms) (continued) Managed Savings Account In respect of deposits, an eligible depositor is entitled to claim up to 85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be 85,000 each (making a total of 170,000). The 85,000 limit relates to the combined amount in all the eligible depositor s accounts with the bank including their share of any joint account, and not to each separate account. For further information about the scheme (including the amounts covered and eligibility to claim) please contact you Relationship Manager, call us on 0845 758 5039 branch, refer to the FSCS website www.fscs.org.uk or call 0800 678 1100 or 0207 741 4100. You can also write to the FSCS at 7th Floor Lloyds Chambers, Portsoken Street, London E1 8BN. 9
Barclays offers wealth and investment management products and services to its clients through Barclays Bank PLC and its subsidiary companies. Barclays Stockbrokers is the Group name for the businesses of: Barclays Stockbrokers Limited, a member of the London Stock Exchange and PLUS. Registered No. 1986161. Registered VAT No. 243 5822 62; Barclays Sharedealing, Registered No. 2092410. Registered VAT No. 243 5822 62; Barclays Bank Trust Company Limited, Registered No. 920880. Registered VAT No. 243 8522 62. All companies are registered in England and the registered address is: 1 Churchill Place, London E14 5HP. All companies are authorised and regulated by the Financial Services Authority. Item Ref: IBIM1090. June 2012.