Term of Business

CLIENT AGREEMENT

Our services

 Douglas Hope Financial Management is able to act on your behalf in advising you on investments and non-investment insurance contracts. We offer products and services as follows:-

  • Investments – we offer an independent advice service. We will recommend investments from the whole of the market.
  • Non-investment protection contracts – we offer non-investment protection products e.g. term assurance, income protection and critical illness from a range of insurers.

 

We offer you an initial discussion (at our cost) at which we will describe our services more fully and explain the payment options. If you decide to go ahead, we will:

  • Gather and analyse personal financial information about you and your needs and objectives;
  • Recommend and discuss any action we think you should take and, with your agreement, arrange relevant solutions for you.

 

Your aims and objectives

 

Unless we notify you in writing to the contrary, we will be treating you as a “retail client”. This means that you are afforded the highest level of protection under the regulatory system and should have the right to take any complaint to the Financial Ombudsman Service.

Any advice or recommendation that we offer to you, will only be given after we have assessed your needs and considered your financial objectives and attitude to any risks that may be involved. We will also take into account any restrictions that you wish to place on the type of products you would be willing to consider.

With very few exceptions, we will confirm to you in writing the basis of our recommendations along with details of any special risks associated with the products recommended.

Full details of the products we recommend to you including, for example, the minimum duration of the product, information on your right to cancel or whether no right to cancel exists, and any other early termination rights and penalties, will be covered in the relevant product disclosure information you will receive before conclusion of any contract.

We will issue any documentation/recommendations and any other communication to you in English (unless agreed otherwise).

In executing or transmitting applications on your behalf to third parties, we will take all reasonable steps to ensure that we obtain the best possible result for you in terms of best execution.

We may also, on occasion, advise on other financial products which are not regulated by the FCA under the Financial Services and Markets Act 2000. The Financial Services Compensation Scheme does not apply to any of these products.

Under the terms of this agreement, we may, if appropriate, advise you on investments which are not readily realisable. We would draw your attention to the risks associated with these investments as there is a restricted market for them. In some circumstances it may therefore not be possible to deal in the investment or obtain reliable information about its value.

Please note that any products we have arranged for you will only be kept under review as part of an agreed ongoing service for which you agree to pay. Any ongoing service will be agreed with you in writing in fee and services agreement. We may contact you in the future by means of an unsolicited promotion (by telephone, email or post) should we wish to discuss the relative merits of a particular product or service which we feel may be of interest to you.

Please be aware that investments can fall as well as rise, and that you may not get back the full amount invested. The price of investments we may recommend may depend on fluctuations in the financial markets, or other economic factors, which are outside our control. Past performance is not necessarily a guide to future performance. Specific warnings relevant to the investments, investment strategies or other products we recommend will be confirmed to you in your suitability report.

Neither Douglas Hope Financial Management nor its employees are qualified to render legal or accounting advice or to prepare any legal or accounting documents. It is hereby understood and agreed that the onus is on you the client to refer to a solicitor or accountant any point of law or accountancy that may arise during the course of discussions with us.

 

Client money

 

Douglas Hope Financial Management is not permitted to handle client money and we cannot accept a cheque made out to us (unless it is in respect of an item for which we have sent you an invoice) or handle cash.

 Documentation

We will endeavour to make arrangements for all your investments to be registered in your name unless you first instruct us otherwise in writing. All policy documents will be forwarded to you as soon as practicable after we receive them. If there are a number of documents relating to a series of transactions, we will normally hold each document until the series is complete and then forward them to you.

 Cancellation rights

In most cases you can exercise a right to cancel by withdrawing from the contract. In general terms you will normally have a 30 day cancellation period for a life, pure protection, payment protection or pension policy and a 14 day cancellation period for all other policies.

For pure protection policies the start of the cancellation period will normally begin when you are informed that the contract has been concluded or, if later, when you have received the contractual terms and conditions. In other cases, the cancellation period will begin on the day the contract is concluded or, if later, the day on which you receive the contractual terms and conditions. Instructions for exercising the right to cancel, if applicable, will be contained in the relevant product disclosure information which will be issued to you.

If you cancel a single premium contract, you may be required you to pay for any loss you might reasonably incur in cancelling it which is caused by market movements. This means that, in certain circumstances, you might not get back the full amount you invested if you cancel the policy.

 

Additional protection

Douglas Hope Financial Management is authorised and regulated by the Financial Conduct Authority (‘FCA’), 25 The North Colonnade, Canary Wharf, London, E14 5HS. Our FCA Register number is 453710. Our permitted business is advising on and arranging pensions, savings and investment products and non-investment insurance contracts. You can check this on the FCA’s Register by visiting the FCA’s website www.fsa.gov.uk/register or by contacting the FCA on 0800 111 6768.

In the event that you are dissatisfied with a recommendation we have made you may be entitled to make a complaint. We have a complaints procedure that is available on request. If you wish to register a complaint, please contact us:

 

In writing:

The Compliance Officer

Douglas Hope Financial Management

43 Northbrook Street

Newbury

Berkshire

RG14 1DT

 

By phone: Telephone +44 (0)01635 35533

By e-mail: [email protected]

 

For your further protection if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (‘FOS’).

We are covered by the Financial Services Compensation Scheme (‘FSCS’). You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

 

  • Investments – most types of investment business are covered for up to a maximum of £50,000.
  • Insurance – advising and arranging is covered for 90% of the claim, without any upper limit.

Further information about compensation scheme arrangements is available from the FSCS at www.fscs.org.uk/consumer.

Please be assured we treat complaints very seriously.

 

Conflict of interests

We will endeavour always to act in the best interests of you our client. However, circumstances can arise where we or one of our other clients may have some form of interest in business being transacted for you. If this happens or we become aware that our interests or those of one of our other clients conflict with your interests, we will write to you and obtain your consent before we carry out your instructions, and detail the steps we will take to ensure fair treatment.

We obtain professional support services from Bankhall, who provide us with regulatory and business advice. Bankhall are supported by product providers, fund managers and platforms, through the provision of training resources and occasionally through commission payments made direct to them, which can be used to offset our own fees to them. In the event that Bankhall is remunerated through commission, this will be disclosed in the literature provided to you, and in no way will it affect the charges you pay.

 

Termination

You or we may terminate our authority to act on your behalf at any time, without penalty. Notice of this termination must be given in writing and will take effect from the date of receipt. Termination is without prejudice to any transactions already initiated which will be completed according to these terms of business unless otherwise agreed in writing. You will be liable to pay for any transactions made prior to termination and any fees outstanding, if applicable.

 Data Protection

Your personal information is very important to us. We will endeavour to take all due care to protect this information. We would like to highlight below a few matters relating to your information that you should be aware of.

Some services are provided to Douglas Hope Financial Management by third parties such as processing business or obtaining compliance or regulatory advice, which warrant the disclosure of more than just your basic contact details. You agree that personal information held by ourselves may be disclosed on a confidential basis, and in accordance with the Data Protection Act 1998, to any such third parties. You also agree that this information may be transferred electronically, e.g. e-mail and you agree that we, or any such third party, may contact you in future by any means of communication which we consider appropriate at the time.

Product providers, lenders and investment managers may administer your policy, any existing policies you may have with them and provide other services, from centres in countries outside Europe (such as India and the USA) that do not always have the same standard of data Protection laws as the UK. However, they are required to put a contract in place to ensure that your information is adequately protected, and they will remain bound by their obligations under the Data Protection Act even when your personal information is processed outside Europe.

 

Anti-money laundering

We are required by the anti-money laundering regulations to verify the identity of our clients, to obtain information as to the purpose and nature of the business which we conduct on their behalf, and to ensure that the information we hold is up-to-date. For this purpose we may use electronic identity verification systems and we may conduct these checks from time to time throughout our relationship, not just at the beginning.

 Disclosure of charges/fees

All charges/fees will be fully disclosed to you. These will be disclosed in summary form before we undertake any work for you. The precise charges relating to any work or recommendations we make will be confirmed in your suitability report or relevant product disclosure information that is provided to you.

In respect of any regular premium policy which we have arranged for you, should you subsequently cease to pay premiums on the policy and in consequence we are obliged to refund the commission that has been paid to us, we reserve the right to charge you a fee representing the amount we have to repay, for a period of up to four years after commencement of the policy. We will confirm the exact amount that will need to be repaid by you and the timescale over which it will need to be repaid in the suitability report we will send you when a recommendation is made. We will not charge any such fee if you exercise your right to cancel in accordance with any cancellation notice sent to you by the life insurance company.

There is no additional cost to you for using a means of distance communication.

 Our remuneration

Following our initial discussion (for which there is no charge) should you decide to go ahead there is a cost for our services. We offer a variety of methods by which we can be remunerated so that you can select the method that best suits your needs. We will discuss your payment options with you and answer any questions you have.

We will not charge you until we have agreed with you how we are to be paid. We will also tell you if you have to pay VAT and if there are other costs that might arise in connection with the services we provide to you.

  Investments

 

Initial Charges

 You can pay for our advised services on the basis of adviser charging, fees or a combination of the two. Our charges relating to new work e.g. client take-on, new investments and one-off reviews are as follows:-

 

Initial Service Initial Charges
Financial review with a view to you becoming an ongoing client i.e. subscribing to an ongoing service. 1% of any monies to be invested subject to a minimum charge of £1,000. For example, if you were to invest £250,000, our charge would be £2,500.
Financial Planning Report (one-off) Minimum charge of £750.00 (non-complex report). A typical charge for a more complex report would be approximately £2,000.
One-off transactional advice, i.e. where you are not subscribing to an ongoing service. 2% of any monies to be invested subject to a minimum charge of £1,000. For example, if you were to invest £250,000, our charge would be £5,000.

 

Paying your adviser charge

 

You can pay your adviser charge by cheque, or by deduction from a financial product that you might invest in. We do not accept payments by cash. Please note that if you choose to pay by deduction from a financial product this could reduce the amount left for investment.

Our charges will become payable on completion of our work and should be settled within 28 business days. Please note (as referred to in the table above), a minimum charge may be applied even if you choose not to invest in a product. You will be provided with a receipt upon payment.

 

Paying by instalments (regular premium contracts only)

 

Where you invest in a regular premium contract only e.g. where contributions are made on a monthly, quarterly or annual basis you can choose to pay your adviser charge in instalments (note that the option to pay in a single payment is still available). Our normal approach will be for the payment to be spread over a maximum of 24 months. Exact details will be confirmed in writing with you. Where you are investing in a product you can choose to have your adviser charge deducted from the product through instalments. Although you may pay nothing to us up front that does not mean that our service is free. You still pay us indirectly through deductions from the amount you pay into your product. These deductions will pay towards settling the adviser charge. These deductions could reduce the amount left for investment.

Where you have opted to pay our adviser charge by instalments these payments are linked to the on-going payment of agreed regular contributions into your plan (until the agreed adviser charge has been paid in full). In the event that the regular contributions to your plan are not maintained (until the agreed adviser charge has been paid in full) we reserve the right to request full payment of any outstanding balance of the adviser charge.

 

Ongoing services

We can offer you three levels of ongoing service designed to provide periodic reviews to ensure that recommended products remain relevant to your circumstances. Details of what is included in each of these services are provided in our Client Services Brochure. Our charges relating to ongoing services are as follows:-

 

Ongoing Service Ongoing Charges
Financial Planning Service 0.75% pa on the first £100,000

Additional funds over and above £100,000 will be 0.50% pa

Subject to a minimum fee of £1000 pa

Retirement Planning Service 0.75% pa on the first £100,000

Additional funds over and above £100,000 will be 0.50% pa

Subject to a minimum fee of £1000 pa

Basic Financial Review Service 0.5% pa on the first £100,000

Additional funds over and above £100,000 will be 0.25% pa

Subject to a minimum fee of £800 pa

 

Payments for the above services can be made either by direct debit or by deduction from your investment on a monthly, quarterly, six-monthly or annual basis. The service can be cancelled at any time by simply informing us in writing.

 

Non-Investment – Protection business

 

In relation to non-investment pure protection contracts we work on a commission basis.

If you wish us to work on a fee basis the fee will be based on an hourly rate basis subject to a minimum fee of £500. Any commission can be used to offset this fee. Any surplus will be used to reduce the monthly premiums (or where this is not possible refunded to you).

Where we-use or refer to hourly rate fees the current rates used are as follows:-

Director                                    £180 per hour

Financial Adviser                       £180 per hour

Administrator                            £ 50 per hour

 

Your consent

 This is our standard terms of business upon which we intend to rely. For your own benefit and protection you should read these terms carefully before signing them. Please sign both copies of this letter, and return one copy to us. If you do not understand any point please ask for further information.

I authorise the transfer of information, on a confidential basis when warranted between any such third parties. I acknowledge that this agreement will come into effect from the date of issue.

 

I also confirm that I AM / AM NOT happy to give Douglas Hope Financial Management my express consent to contact me by telephone to discuss advising on or arranging financial or insurance products in future.

 

 

Service

 

Tick to

Confirm

Details of agreed fee
Financial review with a view to you becoming an ongoing client i.e. subscribing to an ongoing service.
Financial Planning Report (one off)
One-off transactional advice i.e. where you are not subscribing to an ongoing service.
Other – specify details of work:

 

 

Advice relating to non-investment protection contracts. Pay by commission Y / N
Agreed fee

(if applicable)

£
 

Ongoing Services

 

Tick to

Confirm

Financial Planning Service
Retirement Planning Service
Basic Financial Review Service

Note that in relation to your chosen ongoing service a separate service agreement will be put in place.

 

Client Name(s)
 

 

Client signature(s)

 

 

Date of issue

 

 

Date signed

Version:  01/13