Terms and Conditions of Business
These Terms of Business set out the terms under which we shall provide your financial services. They replace all earlier Terms. Please read them carefully and ask us to explain any points that are not clear to you. These Terms of Business constitute the formation of a contract between you and Shard Capital Partners LLP (“Shard Capital”). Shard Capital is authorised and regulated by the UK Financial Conduct Authority (“FCA”). The FCA has its address at 25 The North Colonnade, Canary Wharf, London E14 5HS. The FCA maintains a register of all businesses that it regulates at www. fca.org.uk/register/. Shard Capital and its affiliates undertake all dealing, settlement, safe custody, nominee and associated services for Shard Capital. These Terms of Business will come into effect on the date that we receive your correctly completed application form and identification documents, or on completion of your first deal. Other services are available and are subject to additional Terms of Business.
The rules of the FCA require Shard Capital to categorise its clients as retail, professional, or eligible counterparties and we will therefore treat you as a retail client unless we agree with you otherwise. As a retail client, you may request to be re-categorised as a professional client, but as such you will no longer qualify for those protections which only apply to retails clients. We will only accept such a request if we are permitted to do so in accordance with the regulatory criteria. You agree to notify us immediately if you consider at any point that you no longer fall within the definition of a Professional client.
3. The Services
You may request to be treated as an execution only client either in respect of all transactions or any specific transaction. Where you have not supplied us with sufficient information (either orally or in writing) about your investment objectives, financial circumstances and the degree of risk you are prepared to accept or when, even though you have previously supplied us with information, we may reasonably believe that you are not expecting us to advise you about the merits of a particular transaction, then we will not make any personal or product investment recommendations, and we will treat you as an execution only customer.
As an execution only customer we will action all instructions on an ‘execution-only’ basis. This means that we are only able to act on the instructions that you provide. We cannot give you advice about what instructions you should give us. You are responsible for the investment decisions that you make when you engage our services as an execution only customer. We do not accept responsibility on a continuing basis for advising you on the composition of your portfolio.
Where we undertake transactions for you on an execution only basis, in relation to shares there will be no further information required and we will carry out your instruction without providing advice. For complex products such as derivatives and warrants we may request additional information from you to assess if the product is appropriate. Should you choose not to provide this information we cannot guarantee that the investment will be suitable for your needs.
If you are designated as an advisory customer we accept responsibility for advising you as to the merits of any particular investment based on the information supplied by you in our Fact Find pertaining to your individual circumstances, requirements and objectives. It remains your sole responsibility to inform us of any changes to your individual circumstances, requirements and objectives.
We may provide you with investment advice on your request. Information supplied by you, via our Fact Find, should be updated as necessary before we give you advice on a particular transaction and recommend it as suitable for you. If you do not inform us of any investment or types of investments which you do not wish us to recommend or purchase for you, we may recommend to you any investment.
However under the rules of the FCA, we may recommend to you any investments which we have reasonable grounds for believing are suitable for you.
Shard Capital can offer a discretionary managed service. If you opt to use this service Shard Capital will manage, on a discretionary basis, your portfolio of cash and investments. Subject to any instructions from you, Shard Capital shall have full authority at its discretion, without prior reference to you, to enter into any kind of transaction or arrangement for your account. Under the rules of the FCA, Shard Capital may only exercise discretion in accordance with your investment objectives and in a manner that Shard Capital believes to be suitable for you.
The above is subject to any limits or restrictions that you specify. Please set out in the “Annex I To The Asset Management Agreement” (“Annex I”) any limits or restrictions that you wish to apply:
(a) On the type of investment in which Shard Capital may enter into transactions on your behalf; or
(b) On the amount of the consideration which may be involved in any transactions on your behalf; or
(c) On the value of any investments or any class of investments which may be held for you; or
(d) In relation to any similar matters, if you do not inform Shard Capital Terms and Conditions of Business of any investments or types of investments which you do not wish it to recommend to you or purchase for you, Shard Capital may recommend to you or purchase for you any investment. However, under the rules of the FCA, Shard Capital may only recommend to you investments that Shard Capital has reasonable grounds for believing are suitable for you.
Acting as Principal
Shard Capital may act as principal when dealing with you. This means that we have purchased the shares and are selling them to you. We will always disclose when this is the case. When Shard Capital are acting as principal the price paid by you, the client, will be the same price as Shard Capital have paid. You will then be charged a commission and/or an administration fee.
We may arrange or execute transactions on your behalf in any investments for which we have FCA permission to trade, as well as rights to or interests in any such investments.
The Services will be provided in respect of investments traded on the Official List of the London Stock Exchange, the Alternative Investment Market, Plus Markets, Irish Stock Exchange, or such other recognised investment exchange or unquoted securities which we may agree with you from time to time.
We may also undertake transactions for you in units in unregulated Collective Investment Schemes.
Aggregation of orders
We may arrange the aggregation of orders, which may, or may not, result in a more favourable price being obtained. We will only arrange this aggregation of your orders with other orders where we believe that doing so is in your best interests.
Once accepted by us, your order is irrevocable, unless prior to execution of a particular order, you receive confirmation from us of any amendment or cancellation of your order. We will provide best execution as required by the FCA rules.
We are required by the FCA to obtain prior consent from the client to our order execution policy and the client will be deemed to provide such consent once the client has given their first order after receipt of these terms. For our full order execution policy please visit: www.shardcapitalstockbrokers.com/important-information
All contract notes, confirmations, and other notices or communications under these Terms will be emailed or will be despatched or transmitted to you at the address shown in our records and shall be conclusive & binding on you.
We, Shard Capital, an associate or our respective employees may communicate an unsolicited real time communication to you where we consider this to be appropriate. You agree that we may make such a communication. Shard Capital will always accept your request not to continue a particular discussion.
Shard Capital may contact you on any telephone number provided by you, including unlisted numbers. You accept that all telephone calls may be recorded and such recording remains the sole property of Shard Capital. You accept that Shard Capital may rely on these recordings in the event of a dispute. If, as a result, you decide to make a particular investment, you will have agreed to forego any statutory rights you may have to cancel it.
Deal quotations are available on request. You acknowledge that the market price may have changed between the time at our giving a quotation and the execution of your instructions.
When we accept your order, we will use reasonable endeavours to carry it out. However, we will not be liable for any loss or expense which you incur if we are unable to carry out an order for any reason (other than our negligence) or there is a delay or change in market conditions before the transaction is completed.
Where there is more than one person who is party to a joint account under these Terms any instruction, notice, demand, acknowledgement or request may be given by any one of you and any such communication will be treated as binding on the other(s). If you give us conflicting instructions, we will not have to act on them. Any notice given by us under these Terms to any participant in a joint account will be deemed to be notice to each person interested in the account. If you are a party to a joint account your liability will be joint and several. On the death of an individual or dissolution (if applicable) of any one of you, we may treat the survivor(s) as the only person(s) entitled to your money and investments.
4. Potential Conflicts of Interest
You acknowledge that when we process an instruction from you, we or a connected person may have a material interest in relation to the investment or transaction concerned which may give rise to a conflict of interest.
We require our employees to comply with an independence policy. This means that they must disregard any material interest or conflict of interest when providing our Services to you. Such a conflict may arise because:
a. We may deal in investments where a connected person is involved in a new issue, rights issue, takeover or similar transaction concerning the investment;
b. We may match your transaction with that of another customer;
c. We may trade or deal in investments purchased or sold by you.
We have a conflicts of interest policy and take steps to mitigate any potential conflicts of interest. In the event of a conflict of interest arising where we identify that our actions to manage the conflict of interest is not sufficient to ensure, with reasonable confidence, that risks of damage to your interests will be prevented, we will clearly disclose the general nature and/or sources of conflicts of interest before undertaking business for you. Our Conflicts of Interest Policy can be provided to you upon request.
5. Best Execution
We have a duty to provide Best Execution for you and we will take all reasonable steps to achieve this taking into account the execution factors. The factors we will consider are those which will allow us to obtain the best possible result in terms of total consideration (price and costs of execution) in accordance with the Rules of the FCA. In order to obtain the best outcome for you we will use the best available trading venue from the list of venues we have elected to use. We will add or delete Venues in accordance with our obligation to provide you with the best possible outcome.
Should you provide specific execution instructions to us, this may prevent us from taking the steps that are necessary to achieve the best possible result in respect of the order to which the instructions relate.
6. Risk Warnings – General
This notice is provided to you as a Retail customer in compliance with rules of the FCA. Retail customers are afforded greater protections under these rules than other customers and you should be aware of your rights of access to the Financial Ombudsman Service and other benefits. Please remember that the price or value of investments can go down as well as up. You may not get back the amount invested. Past performance is not necessarily a guide for future performance.
Foreign Markets – Foreign markets will involve different risks from the UK markets. In some cases the risks will be greater. On request, we will provide an explanation of the relevant risks and protections (if any) which will operate in any foreign markets, including the extent to which we will accept liability for any default of a foreign firm through whom we deal. The potential for profit or loss from transactions on foreign markets or in foreign denominated contracts will be affected by fluctuations in foreign exchange rates.
Non-Readily Realisable Investments – We may enter into transactions on your behalf in non-readily realisable investments (investments in which the market is limited or could become limited). Non- readily realisable investments can be difficult to deal in and it can become difficult to determine what a proper market price is. Please inform us in the Annex I if you do not wish us to buy such investments for your portfolio.
Small-Cap Shares – There is an extra risk of losing money when shares are bought in some smaller companies. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them. The price may change quickly and it may go down as well as up. These shares carry a high degree of risk and you can lose all of your investment.
Structured Products – A structured product is defined as a ‘Complex’ instrument and in deciding whether to hold a ‘complex’ instrument, you should be aware it is an investment which offers a pre- packaged investment strategy based on derivatives and which delivers a known return for given instrument conditions. It may be based on a single security, a basket of securities, options, indices, commodities, debt issuances, foreign currencies or swaps, or any combination of these. Their reliance on derivatives means that structured products are high risk investments and you could lose all the money you have invested. If you require advice on whether to invest in structured products, please contact an FCA regulated Financial Advisor.
Suspensions Of Trading – Under certain trading conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session to such an extent that under the rules of the relevant exchange, trading is suspended or restricted. Placing a stop-loss order will not necessarily limit your losses to the intended amounts, because market conditions may make it impossible to execute such an order at the specific price.
Clearing House Protections – On many exchanges, the performance of a transaction by us (or third party with whom we are dealing on your behalf) is guaranteed by the exchange or clearing house. However, this guarantee is unlikely in most circumstances to cover you, the customer, and may not protect you if we or another party defaults on its duty to you. On request, we will explain any protection provided to you under the clearing guarantee applicable to any on exchange derivatives in which you are dealing. There is no clearing house for traditional options, nor normally for off-exchange instruments, which are not traded under the rules of a recognised or designated investment exchange.
AIM/ISDX – Shard Capital trades on in Alternative Investment Market (AIM) and ISDX shares, all of which carry a higher degree of risk than blue chip investments and there is always the possibility of losing the capital sum invested. Investment should be restricted to the maximum one can afford to lose. These investments may not be suitable for everyone and if you have any doubt regarding suitability please contact your regular investment adviser. Shard Capital and/or its connected companies and/ or directors or employees and/or members of their families may from time to time have a material interest (including options) in relation to an investment in which we deal on your behalf and may add or dispose of such securities from time to time. It is more difficult to buy and sell shares in small companies and it may not always be possible to deal. Market Makers operate with a wide spread between buying and selling prices for small companies and this spread and fluctuations in the share price may mean that you do not get back the full amount invested. AIM and ISDX are designed primarily for emerging or smaller companies. Both the AIM and ISDX Rules are less demanding than those of the Official List of the London Stock Exchange. The past is not necessarily a guide to future performance.
Extended settlement and leverage (T+20 trading) – Trading using extended settlement prolongs the settlement date and as a client you pay or receive the profit or loss at the end of the extended settlement period. When using leverage you can lose more than your original investment and you agree that this is therefore a high risk activity. Collateral can be used to trade in this manner and the level of leverage allowed on collateral will be determined using a risk based assessment by Shard Capital. Extended settlement trading does not incur any financing cost but the price dealt in the market is likely to be at a premium to the prevailing market price.
Warrants – A warrant is a right to subscribe for shares, debentures, loan stock or government securities, and is exercisable against the original issuer of the securities. Warrants often involve a high degree of gearing, so that a relatively small movement in the price of the underlying security results in a disproportionately large movement in the price of the warrant. The prices of warrants can therefore be volatile. You should not buy a warrant unless you are prepared to sustain a total loss of money you have invested plus any commission or other transaction charges. Some other instruments are also called warrants but are actually options (for example, a right to acquire securities which is exercisable against someone other than the original issuer of the securities, often called a ‘Covered Warrant’).
ISA’s and JISA’s
‘Regulations’ means the Individual Savings Account Regulations 1998 as amended from time to time.
‘Shard Capital ISA’ is a Stocks & Shares ISA which holds investments eligible for a Stocks & Shares ISA as defined by the Regulations.
‘Shard Capital Junior ISA’ is a Stocks & Shares Junior ISA which holds investments eligible for a Stocks & Shares Junior ISA as defined by the Regulations.
‘Registered contact’ means a person with parental responsibility for an eligible child who applies to open a Junior ISA on their behalf.
A child is an ‘eligible child’ if, when the account application is made:
(a) they are under age 18;
(b) they were born on or after 3 Jan 2011, or do not have a Child Trust Fund Account; and
(c) they are resident and ordinarily resident in the UK, or are a UK Crown servant, married to or in a civil partnership with a Crown servant, or a dependent of a Crown servant.
‘Tax year’ means the period from 6th April one year to the 5th April the following year.
New Applications – You may subscribe to an ISA for any tax year for which you are either resident or ordinarily resident in the United Kingdom for tax purposes. You may also subscribe where you perform duties as a Crown employee outside of the UK which are treated as being performed in the United Kingdom or are the spouse or civil partner of such a person. A person with parental responsibility for an eligible child (or, at our discretion the child themselves if aged between 16 and 18) may apply to open a Junior ISA on their behalf and thereby become the registered contact. Once a Junior ISA is open, any person may make subscriptions to the account. If you are applying for an ISA or Junior ISA for the next tax year Jarvis Investment Management shall hold your money in a client bank account until 6th April. No interest is paid on this money. On the first working day of the new tax year we will open your ISA or Junior ISA and make investments in accordance with your instructions.
Investments – You may transfer an existing ISA or Junior ISA to Jarvis Investment Management in cash or stock. Following a transfer, investments will be made when we have received the proceeds from your existing ISA or Junior ISA Manager. Any subsequent payments (which may include outstanding dividends and tax credits) will be held within your account awaiting your instructions. Shard Capital do not offer a Cash ISA.
Consolidation – All new money invested in the Shard Capital ISA, including transfers, will be held as one account. This means Jarvis Investment Management shall administer all your Stocks & Shares ISAs for different years as one account. This principle also applies to the Shard Capital Junior ISA. You can also elect to consolidate previous ISAs into your Stocks & Shares ISAs so they too can be held, managed and charged as one account. If you do not consolidate previous ISAs, they will be held, administered and charged separately from each other.
Ownership and Custody – All documents evidencing title to Assets in your account are held by us or as we direct. The title to all investments held in your account will be registered in the name of our nominee the account investments will be, and must remain in your beneficial ownership. You may not use your account as security for a loan. You may dispose of or transfer an interest in any asset only through us and you may not create (or have outstanding) any charge or security on or over any asset.
Documentation and Voting – For any investment held in your account, we can arrange at your request in writing for you to:
- Receive a copy of the annual report and accounts for each company or other concern in respect of shares, securities or units in which you have invested; and
Attend meetings of shareholders, securities shareholders, or unit holders and exercise voting rights and receive information sent to such holders in addition to the annual report and accounts
We do not accept standing instructions in respect of the matters referred to in 6.16 for all investments held in your account. If you wish to exercise your rights referred to in 6.16, in respect of more than one investment held in your account, you must make a written request in respect of each relevant investment.
Voiding and Repair – We will tell you if a failure to satisfy the provisions of the ISA regulations makes, or will make your ISA void (invalid)
If we receive notification from HMRC to either repair or void your ISA we will tell you as soon as reasonably possible. HMRC will tell us what action to take and we will carry this out if your ISA becomes void
If it is not possible to repair your ISA, your investments will lose their tax exempt status. We will ask for further instructions from you. If we have to take action to repair your ISA or to transfer assets from a void ISA into another account or elsewhere, you must pay us any charges that we incur in doing so.
Delegation – Subject to the rules and regulations, we may delegate any of our functions or responsibilities under this agreement to any person, provided that before doing so we shall and will continue to satisfy ourselves that such person is competent to carry out those functions and responsibilities.
Undertakings/Liability/Responsibility – We will invest your money into an ISA or Junior ISA in compliance with the requirements of HM Revenue & Customs. This means we shall provide to HM Revenue & Customs all particulars of your account which they may reasonably request and to exercise the duties and powers conferred to us under the Regulations; these include all claims for repayment of, or credit against, tax in respect of the account as well as providing account management services including record keeping, reporting, dealing, compliance with the Regulations and Rules of HM Revenue & Customs. We may apply any cash and realise investments (forming part of the account) for payment of charges, reimbursement of expenses and payment of any tax in respect of your account that you are bound to pay under the relevant regulations. We shall notify you if by reason of any failure to satisfy the provisions of the relevant HM Revenue & Customs Regulation your account has or will become void for tax purposes.
Advisory ISA/JISA – Advice given by Shard Capital partners will be determined by the financial situation, investment objectives and investment experience of the underlying client. This advice must be suitable and appropriate for the individual account and Shard Capital Partners systems and controls will ensure that is the case. Investing in Securities is a high risk investment and you may lose your initial investment or it may be worth less than the original amount invested. Once an annual limit of investment has been reached this cannot be replenished if losses occur.
Rights Issues – You may ask Shard Capital specifically to take up rights attached to your account investments as they arise (we do not accept standing instructions). Where there are insufficient funds within the account to take up the rights issue in full then we will arrange for the maximum amount of rights to taken up from your cash balance, none if necessary.
Dividends and Income – Where investment income is received net, we reclaim tax where permitted by, and in accordance with, current HMRC regulations. Jarvis Investment Management will reclaim UK tax credits on dividend income, where appropriate, up to the 5th day of each month (unless a gross payment has been received), or the next working day if the 5th day falls on a weekend, and it will receive the tax credit approximately seven weeks after that date.
Withdrawals, Terminations, Transfers and Death – Upon receipt of your written instruction (and within the time frame specified by you – which may not be less than 30 days) all (or part) of your account shall be transferred to another ISA or Junior ISA Manager.
Generally we will complete your instructions within 30 days, occasionally it may take longer to complete due to factors beyond our control. Transfers will take place in the form of cash. Transfers as stock are also permitted. Shard Capital’s fee for transferring as stock is £10 per holding. For withdrawals, once we are in receipt of an instruction from an investor and within the time stipulated by the investor, all or part of the investments held in an ISA and proceeds arising from those investments shall be transferred or paid to the investor.
JISA Withdrawals (either capital or income) from a Junior ISA are not permitted prior to the child’s 18th birthday, except in the event of terminal illness or death. In the event of terminal illness the registered contact may make a claim to HMRC to be allowed to access the funds in the child’s Junior ISA. HMRC will issue a letter of acceptance which must be handed to us. Should the child die before they reach 18 the Junior ISA will close and the investments will become part of the child’s estate.
Junior ISA holder reaching adulthood – On the Junior ISA holder’s 18th birthday the account will become an ISA. All correspondence from this point will be addressed to the account holder, and they will have full authority to place investment instructions and make withdrawals.
7. Risk Warnings – Securities Subject to Stabilisation
This statement complies with FCA rules. Shard Capital may from time to time carry out transactions in securities on your behalf, where the price may have been influenced by measures taken to stabilise it. You should read the following explanation carefully.
Stabilisation enables the market price of a security to be maintained artificially during the period when a new issue of securities is sold to the public. Stabilisation may affect not only the price of the new issue but also the price of other securities relating to it. The FCA allows stabilisation in order to help counter the fact that, when a new issue comes onto the market for the first time, the price can sometimes drop for a time before buyers are found. Stabilisation will be carried out by a ‘stabilisation manager’ (normally the firm responsible for bringing a new issue to the market). As long as the stabilisation manager follows a strict set of rules, he is entitled to buy back securities that were previously sold to investors or allotted to institutions, which have decided not to keep them. The effect of this may be to keep the price at a higher level than it would otherwise be during the period of stabilisation.
The Stabilisation Rules limit the period when a stabilising manager may subsidise a new issue; fix the price at which he may stabilise (in the case of shares and warrants but not bonds); and require him to disclose that he may be stabilising but not that he is actually doing so. The fact that a new issue or a related security is being stabilised should not be taken as an indication of the level of interest from investors, nor of the price at which they are prepared to buy the securities.
8. Charges and Payments for Transactions
Our charges will be in accordance with our published rates in effect at the time the charges are incurred. There may be other charges for each contract to cover settlement/compliance costs. A copy of our published rates has been notified to you at or before the time the charge is incurred. You agree that we can deduct these charges from your account with us. The equity charges can be found at www.shardcapitalstockbrokers.com/important-information.
In addition to our charges you will be responsible for payment of; any stamp and other duties, taxes of whatsoever nature, impositions and fiscal charges (in each case wherever in the world imposed), brokerage clearing and settlement fees, transfer fees, registration fees and all other liabilities, charges, costs and expenses payable or incurred by us on your behalf: and if any applicable value added tax or similar charge.
We may impose certain additional charges as set out in our published rates which you shall be liable for in the event that you fail to comply with your obligations under these Terms. In particular, if you default in paying any amount when due, interest will be payable by you at the rate specified in our published rates, and in addition you will be charged for each letter concerning your breach of your obligations.
If we should enter into a transaction on your behalf using the London Stock Exchange SETS trading system or any other trading system which imposes any liability on us (in whatever capacity) we reserve the right to make additional charges to reflect the additional risk we are incurring including (without limitation) a mark-up or mark-down on the price of the investment concerned (that is at a premium or discount to the amount at which we will actually purchase or sell the investment concerned). Should we do so you will be notified at the time and details of any additional charges will be shown on the contract note issued to you.
In addition to paying any commission and charges due to us you will reimburse us for any costs and expenses which we may incur which are directly attributable to you. These charges may include (without limitation) the costs of providing information to third parties (such as your accountants or auditors), valuations, or our involvement in legal proceedings brought against you.
9. Your Assets
Client Money will be held on your behalf by our custodian and will be dealt with in accordance with the FCA (client money) rules, which requires them to hold your money in a separate bank account with an approved bank. Your money could be held by the approved bank with other clients’ money in a pooled client account. This means that client money is held as part of a common pool of money, so you do not have a claim against a specific sum in a specific account; your claim is against the client money pool in general.
You agree that where we hold money on your behalf, we may hold your money at any approved bank or pass your money to an intermediate broker, settlement agent, custodian or counterparty outside the UK. In such circumstances, the legal and regulatory regime applying to the bank, broker, agent or counterparty with which your money is held will be different from that of the UK and in the event of a default of the bank, broker, agent or counterparty your money may be treated differently from the position which would apply if the money was in the UK.
We will exercise due skill, care and diligence in the selection, appointment and periodic review of any custodian or bank (other than a central bank) where your money is deposited and for the arrangements for holding your money but we shall not be responsible for any acts, omissions or default of the bank.
We may use a commercial settlement system to settle trades on your account and in such instances there is a period of time known as the Delivery versus Payment (DVP) window. During the DVP window, we may not treat your assets as client assets or your money as client money. The following provisions for the treatment of your cash and assets will apply:
For a purchase on your account, the DVP window starts from the date on which you fulfil your payment obligation to us. The DVP window will then close on the earlier of the date on which the DVP transaction settles or the third business day following the date on which you fulfil your payment obligation to us. If you have fulfilled your payment obligation and delivery of the asset has not occurred by close of business on the third business day following fulfilment of your payment obligation, we will treat your money as client money until such time as the asset is delivered to you.
For a sale on your account, the DVP window starts from the date you fulfil your delivery obligation to us. The DVP window will then close on the earlier of the date on which the DVP transaction settles or the third business day following the date you fulfil your delivery obligations to us. Where payment has not occurred by close of the third business day following the date on which you complete your delivery obligation to us, we will treat your asset as a client asset until such time as we make payment to you.
You should be aware that the protections offered under FCA client money and client asset rules only apply when such money or assets are treated as client money or client assets as defined in the FCA handbook
Any client money or clients assets due to you which are unclaimed by you on an account which has not been active for six years (client money) or 12 years (client assets) will cease to be client money or client assets. After which we may pay or transfer client money, assets or the liquidations proceeds away to a registered charity. We will attempt to contact you at least three times should we intend to exercise these rights and we undertake to make good any valid claim that may be subsequently made against any assets we have liquidated in this way.
No interest will be accrued, or payable, to you on client money balances.
Where our service involves safekeeping your Assets, dealing with any cash or otherwise administering your Assets or Accounts, we will keep records to show that your Assets are held on your behalf and do not belong to us.
In providing this service, you authorise us, where we reasonably consider it appropriate, to employ agents and subcustodians to perform any aspects of the custody service and authorise them to do the same. We will follow any applicable Regulatory Requirements. In such scenarios, we will use reasonable skill and care in selecting, using and monitoring the delegate but are not liable for their acts or omissions, insolvency or dissolution.
Your Assets will be registered in the name of a nominee or a subcustodian where: (a) it is possible; and (b) we consider it appropriate; and (c) Regulatory Requirements allow it. Registration in the name of a nominee or subcustodian may mean you lose incentives and shareholder benefits attaching to the Assets. Such nominee or custodian may be located in or outside the jurisdiction in which we provide services to you.
Where your Assets are held by a nominee or sub- custodian, we cannot ensure that you would not lose any Assets if the entity fails. In order to show that the Assets are not available to the entity’s creditors, we will take reasonable steps to ensure that their records show that the Assets are held for you and that they do not belong to us or the nominee or sub-custodian.
In some jurisdictions, local law might not allow your Assets to be separately identifiable from our assets or those of the nominee or sub-custodian. You might be at greater risk of loss if the nominee or sub- custodian fails.
We or our sub-custodian will hold any physical documents of title (including bearer stocks).