INVESTOR PORTFOLIO SERVICE (IPS)
INVESTING
WITH IPS.
This brochure supports the Key Investor Information Document.
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INVESTING WITH IPS
WELCOME TO THE INVESTOR
PORTFOLIO SERVICE (IPS).
USING THIS DOCUMENT
CONTACTING US
This document gives you important information to
help you make an informed decision about investing.
You should read this document carefully and then
keep it safe for future reference.
We’re here to help. If you have a question or would
like some information there are several ways to get
in touch with us. Please note we are unable to offer
financial advice.
You should read this document alongside
the following:
Contact our UK Customer Services contact centre on:
•The Key Investor Information Document (KIID)
gives you the key information you need to decide
whether a fund is right for you. It’s essential that
you read the KIID carefully so that you understand
what you’re buying.
•The Important Fund Information guide lists the
funds available to you and shows the specific
risks that apply to them.
•There is also a separate document that explains
the Terms and Conditions that apply when you
invest. You must also read this document.
OTHER USEFUL INFORMATION
The Platform Charge Explained document tells you
more about the IPS Platform Charge.
If you’ve agreed to pay adviser charges the Guide
to Facilitated Adviser Charges explains how we can
facilitate payment of these for you.
The Using IPS guide tells you more about investing
with us and how to make changes to your investment.
You’ll find detailed technical information on each
fund we offer in the fund’s Prospectus. Please
contact us if you’d like a copy. The Prospectus is
only available in English.
If you need a copy of these documents please
contact your adviser or Customer Services.
0345 272 0089.
We’re open Monday to Friday 9am to 5.30 pm. Call
charges will vary. We may record and monitor calls.
[email protected]
If you’re contacting us by email, please remember
not to send any personal, financial or banking
information because email is not a secure method
of communication.
Investor Portfolio Service
PO Box 1112
Chelmsford
CM99 2UX
ABOUT IPS
IPS is an investment service that allows you to buy a
selection of investments in carefully selected funds,
and manage your investment online 24 hours a day.
IPS uses the Cofunds Platform to provide the range
of funds available to you.
With IPS you can:
•Select and compare funds and invest online
yourself.
• Keep track of your investments on our website.
•Buy, sell, switch and top up your investments
online.
INVESTING WITH IPS
AIMS, COMMITMENTS
AND RISKS.
UNIT TRUSTS AND OPEN-ENDED
INVESTMENT COMPANIES (OEICs)
INVESTMENT AIMS
With IPS you can invest in unit trusts and OEICs.
These are types of investment funds that:
•To give you the option of taking an income.
•Give you the potential to make your money grow
and receive an income.
YOUR COMMITMENT
•Offer you access, through the fund, to buy
different types of ‘assets’, such as company
shares, fixed-interest securities, commercial
property and cash.
•Can help you reduce risk by spreading your
money over a range of assets types.
•Give you access to professionally managed
funds so you don’t have to choose individual
assets yourself.
You can either:
•Invest directly in unit trusts and OEICs; or
•Invest through an Individual Savings Account (ISA).
An ISA is simply a way of investing in a fund taxefficiently. It allows you to invest in a unit trust or
OEIC without any personal liability to income tax or
capital gains tax on any income or growth.
We only offer a stocks and shares ISA.
•To grow your investment.
•You need to invest a lump sum, or make a regular
payment every month, with a minimum of £20.
•You can keep your investment for as long as you
want but you should consider it as a medium to
long-term investment. You should be prepared
to invest for at least five years, and ideally not tie
yourself to a particular end date.
RISKS
There are some risks that you need to understand
before you invest.
•The value of investments, and any income taken
from them, can fall as well as rise and you may
get back less than you originally invest.
•There are specific risks relating to the funds
you can invest in. Generally, the greater the
potential reward (investment growth or income)
a fund offers, the higher the level of risk to your
investment. The risk and reward profile in the KIID
shows the fund’s level of risk in relation to the
potential reward.
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INVESTING WITH IPS
YOUR QUESTIONS
ANSWERED.
WHAT CHARGES WILL I PAY?
Platform Charge
•Covers the costs of the services we offer, including
setting up and administering your investments,
the technology we use and providing you with a
service.
•The Platform Charge Explained document shows
you how the Platform Charge is calculated.
Fund charges
•No initial fund charge.
•You’ll pay the fund’s ongoing charge as shown on
the fund’s KIID. The ongoing charge is taken into
account in the unit price so you won’t see it as a
separate charge.
•Part of the fund’s ongoing charge might be
‘rebated’ to you. The Important Fund Information
guide shows any rebates that apply.
•For more information on rebates, including
how they are paid, please see part A of the
Terms and Conditions.
Advice charge
•You’ll agree with your adviser how to pay for
their services before you invest.
•We can facilitate payment of any initial and/or
ongoing adviser charges that you agree.
•Please see the Guide to Facilitated Adviser
Charges for more information.
Service charge
•If your investment is arranged without advice
through another financial services firm, you may
pay a Service Charge to that firm for the services
they provide. You’ll receive details of this from
them if applicable. HOW DO I PAY THE CHARGES?
•Platform, advice and service charges are paid from
your IPS Cash Account each month.
•If there isn’t enough money in your IPS Cash
Account to pay the charges we’ll automatically sell
units from your investments.
•Please see part A of the Terms and Conditions for
more information on how and when the charges
are paid.
HOW MUCH CAN I INVEST IN
A STOCKS AND SHARES ISA?
•You can invest up to £15,240 in the 2016/17 tax year.
The ISA allowance for the 2017/18 tax year is £20,000.
•You can only invest in one stocks and shares ISA in
each tax year (a tax year runs from 6 April to
5 April the following year).
•We don’t currently offer a Flexible ISA, so if you
withdraw money held in an ISA, you lose the ISA
benefit on that portion of your money. You can’t put
that money back into an ISA unless you have enough
of your ISA allowance left in the current tax year.
•Our ISA Cash Reserve allows you to hold your ISA
money as cash within our stocks and shares ISA.
CAN I TRANSFER AN EXISTING
CASH OR STOCKS AND SHARES
ISA TO IPS?
•Yes, you can transfer an existing ISA held with
another company to us by completing an ISA
transfer application form.
•If you’re transferring an ISA that holds current tax
year subscriptions, you must transfer that amount
in full.
•Your money won’t be invested while the transfer
is processed. If there’s a rise in the markets before
the ISA transfer is complete, you could potentially
miss out on some income or growth. If you transfer
an ISA to us, your existing manager may charge an
exit fee on transfers.
Please note we do not currently offer a Lifetime
ISA, however you can transfer your Lifetime ISA
into a Stocks and Shares ISA. Should you transfer
from a Lifetime ISA to this Stocks and Shares ISA,
your Lifetime ISA status will be lost along with any
other benefits specific to that ISA.
CAN I MAKE REGULAR SAVINGS
INTO AN INVESTMENT?
•Yes, if you want to invest a regular monthly amount
you can do so by Direct Debit from an account of
your choice.
•You can choose when you want to invest
each month.
•There’s no need to complete a new instruction
each year. We will simply roll over your regular
savings instruction into the new tax year until you
ask us not to.
INVESTING WITH IPS
WHERE’S MY MONEY HELD WHEN
IT’S NOT INVESTED?
•When you first invest with IPS, an IPS Cash Account
is set up for you. This is where your money is held
when it’s not invested.
•Your IPS Cash Account helps you manage the
movement of your cash into and out of investment
funds, and pay any charges.
•Cash held in your IPS Cash Account will earn interest
daily. This interest will be credited to your balance
monthly in arrears. For more information please see
part A of the Terms and Conditions.
Unit trusts and OEICs:
•You’ll have a personal liability to capital gains tax on
any growth above the capital gains tax allowance.
•Basic rate taxpayers – no further income tax on
interest distributions, 7.5% on dividends above the
dividend allowance.
•Higher-rate taxpayers – additional 20% income
tax on interest distributions, 32.5% on dividends
above the dividend allowance.
•Additional-rate taxpayers – additional 25% income
tax on interest distributions, 38.1% on dividends
above the dividend allowance.
•You can see details about the interest rates
online at www.onlineips.co.uk/accountrates
or by contacting Customer Services.
IPS Cash Account
CAN I TAKE AN INCOME?
• Income tax isn’t payable on interest.
•Yes, if you choose a fund that pays income you can
have it paid into your Nominated Bank Account.
•Alternatively, you can choose to automatically reinvest
the income or hold it in your IPS Cash Account.
HOW DO I FIND OUT HOW MY
INVESTMENTS ARE DOING?
•We send you a statement each year.
•You can also log in to your account via our secure
website to see your investments at any time.
WHAT TAX WILL I PAY?
•The tax treatment on your investments depends on your
personal situation and where your money is invested.
• Interest is paid net of 20% income tax.
IPS Cash Reserve
CAN I CANCEL MY INVESTMENT?
•You can cancel your initial investment within 14 days
by writing to us at the postal address on page 2.
•Once you’ve invested we’ll send you a cancellation
notice confirming your right to cancel.
•The 14-day cancellation period starts when you
receive your confirmation note.
•If you cancel your initial investment and it has
fallen in value you will receive less than you
originally invested.
•If you don’t cancel within the 14-day period you
will be subject to the investment risks detailed in
this brochure, the KIID, and the Important Fund
Information guide.
•All tax assumptions we’ve made are those that
currently apply. Tax law does change, which may
affect you, so it’s a good idea to get regular advice.
HOW DO I WITHDRAW MONEY OR
CLOSE MY ACCOUNT?
•As of 6 April 2017, interest distributions no longer pay
income tax.
•You can take money out by selling some or all
of your investments. The minimum you can take
out is £20. We can pay your money into your IPS
Cash Account or into a nominated bank account
held in your name.
•From 6 April 2016 the dividend tax credit was replaced
with the tax-free dividend allowance. This means
you won’t have to pay tax on the first £5,000 of your
dividend income.
Stocks and shares ISAs:
•No personal liability to capital gains tax on any growth.
•You can use a Withdrawal Form or send us a letter
to the postal address on page 2. The form is available
online, from Customer Services or your adviser.
•No tax to pay on dividend distributions. No further
tax on interest distributions.
•If you want to transfer your investment to another
manager please contact them to arrange the transfer
with us. The minimum you can transfer out is £20.
•We reclaim the 20% tax that was deducted on interest
distributions for you.
•To close your account please write to us at the
postal address on page 2.
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INVESTING WITH IPS
FURTHER
INFORMATION.
COMPLAINTS
If you have a complaint about any part of our service,
or you’d like us to send you a copy of our internal
complaint handling procedure, please contact us by
telephone or in writing. Our contact details are on
page 2.
subsidiary of Cofunds Limited. This ensures that
assets are kept separate from Cofunds’ own assets.
Cofunds keeps a record of your individual holdings
and you remain the beneficial owner of these assets.
Cofunds Nominees Limited is not authorised by the
FCA, but Cofunds Limited accepts full responsibility
for its subsidiary.
Any complaint we cannot settle can be referred to:
When your money is held as cash
The Financial Ombudsman Service
Exchange Tower
Harbour Exchange Square
London
E14 9SR
We hold the following money in a ring-fenced Client
Money Bank Account:
0800 023 4567 or 0300 123 9123
[email protected]
www.financial-ombudsman.org.uk
Making a complaint will not affect your right to take
legal proceedings. We’ll tell you about your rights
when we answer your complaint.
OUR REGULATOR
Cofunds Limited is authorised and regulated by the
Financial Conduct Authority (FCA). We’re entered on
the Financial Services Register under number 194734.
You can check this at:
www.fca.org.uk/firms/systems-reporting/register
Or calling:
0800 111 6768
Or writing to:
The Financial Conduct Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
SECURITY OF YOUR MONEY
Cofunds Limited is responsible for the safeguarding
of your money and is covered by the Financial
Services Compensation Scheme (FSCS).
When your money is invested in a fund
When you invest with a fund manager, units and
shares in the funds are registered in the name
of Cofunds Nominees Limited - a fully-owned
•Money waiting to be invested
•Income payment waiting to be paid to you
•Proceeds of sales waiting to be paid to you
Your money is held under trust and kept separate
from our own money in accordance with the FCA’s
client money rules and guidance. Money held in the
IPS Cash Account and ISA Cash Reserve is held in
this way.
Information on the banks that hold the client money
accounts is available online at www.onlineips.co.uk/
accountrates or from Customer Services.
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, Cofunds Limited
will notify you five working days in advance
of your account being debited or as otherwise
agreed. If you request Cofunds Limited 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 Cofunds Limited 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’re not entitled to,
you must pay it back when Cofunds Limited
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 Cofunds Limited.
INVESTING WITH IPS
FINANCIAL SERVICES
COMPENSATION SCHEME (FSCS)
The Financial Services Compensation Scheme (FSCS)
is the UK’s compensation fund for customers of
authorised financial services firms.
If Cofunds became insolvent
Any money invested in a fund or held as client
money is kept separate from Cofunds’ own assets
so its therefore unlikely that you would need to claim
under the FSCS. However, in the unlikely event you
were to suffer financial loss, you would be able to
claim under the investment business section of the
FSCS. The maximum level of compensation for
investments is 100% of the amount invested, up to a
maximum of £50,000 per person.
If the bank providing the client money account
became insolvent
If the bank became insolvent and couldn’t return
your money, you would be protected for 100% for
the first £85,000 held with the bank. The £85,000
limit applies per person, per institution and covers
all money held with the bank through IPS or directly.
If you owe money to the bank (e.g. loans, mortgage
or credit card debts), these will be taken into account
before any compensation is paid.
If the fund manager became insolvent
In the unlikely event you were to suffer financial loss
directly because a fund manager of a unit trust or
OEIC became insolvent, you would be able to claim
under the investment business section of the FSCS.
The maximum level of compensation for investment
is 100% of the amount invested, up to a maximum
of £50,000 per person, per fund. For example, if two
different fund managers became insolvent, you
could claim up to £50,000 from each.
You can find out more about the Financial Services
Compensation Scheme (including amounts and
eligibility to claim) by visiting its website:
www.fscs.org.uk
or calling:
0800 678 1100
CONFLICTS OF INTEREST
Conflicts of interest may arise between you and
us, our employees, our associated companies or
our representatives. To ensure we treat investors
consistently and fairly, we are required to have
a policy on how to identify and manage these
conflicts. Please see part B of the Terms and
Conditions for a summary of our policy. A copy of
the full policy is available on request from the postal
address on page 2.
LAW AND LANGUAGE
The contract you enter into with us is governed by
English Law. All customer communications are only
available in English. All communications from us will
normally be by letter, telephone or email.
CLIENT CATEGORISATION
There are various categories of client set out in
the financial regulations. If you buy this Cofunds
product, we will treat you as a ‘retail client’. Being a
retail client gives you the greatest level of protection
under the regulations and ensures you get full
information about any products you buy.
You can choose to be categorised as a professional
client or an eligible counterparty, but this means
you receive less information about our products and
services. Also, you would not be entitled to receive
a suitability report or appropriateness assessment
where these would be required for retail clients.
If, under the regulations, you are a professional
client or eligible counterparty, we will still treat you
as a retail client, although this would not necessarily
mean that you would be eligible to refer any
complaints to the Financial Ombudsman Service
or to make a claim under the Financial Services
Compensation Scheme.
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INVESTING WITH IPS
Cofunds Limited
Registered in England and Wales No. 3965289.
Registered office: Level 43, The Leadenhall Building,
122 Leadenhall Street, London, EC3V 4AB
We are authorised and regulated by the Financial Conduct Authority.
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