Client Agreement

Client Agreement
Milton IFA Ltd is a firm of Independent Financial Advisers.
Milton IFA Ltd is regulated by the Financial Services Authority, the industry watchdog
Milton IFA Ltd is authorised and regulated by the Financial Services Authority (FSA) and bound by the
FSA’s rules. Our FSA registration number is 491145 and our details can be confirmed on the FSA
website www.fsa.gov.uk/register ,or by contacting the FSA on 0845 606 1234.
Client classification
The vast majority of our clients are designated ‘Retail Clients’ as defined by the Financial Services
Authority. Retail Clients are afforded the greatest level of ‘protection’ by the Regulator, in the event of
complaint or dissatisfaction. If you are not classed as a ‘Retail Client’ we will notify you at outset and
explain the implications of this to you. Milton IFA Ltd can provide advisory services to clients whilst they
are located in the United Kingdom but is unable to do so to those located in other countries within the
European Economic Community.
Our Relationship & Service
We will establish and agree with you your expectations and we will in turn ensure you are aware of the
services we can provide and the costs involved in the provision of those services, including any products
recommended to you. This process assists Milton IFA Ltd in meeting its goal to treat clients fairly and
provides the foundation upon which a successful relationship can be built.
Once we have accepted clients’ instructions, we gather essential background and personal information.
We then carry out research and recommend particular courses of action which can range from advice to
do nothing through to advice to take out a particular product or products to advice on all aspects of
financial planning. All recommendations will be confirmed in writing so you have a record of actions
taken and the reasons for them.
We offer a personal and confidential service, but occasions can arise where we, or one of our other
clients, will have some form of interest in business that we are transacting 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 inform you in writing and obtain your consent before we carry out your instructions.
We will be glad to review your investments and other financial arrangements or provide you with any
further advice but will not do so unless you request it, or unless we agree from the outset a review
schedule.
However, in the circumstances where we advise you on and / or arrange Pension Fund Withdrawals or
Phased Retirement, or you appoint us as your Independent Financial Adviser in respect of such
arrangements, we will review your arrangements for retirement income at intervals of 12 months from
the effective date of the first arrangement. We will write to you with a view to making an appointment to
discuss these arrangements so long as we remain instructed by you.
From time to time we may contact you by telephone or in writing to bring to your attention additional
services or investments that may be of interest to you. If you have any objection to us contacting you in
these circumstances, please write to the Compliance Officer at the address above.
We may also write to you periodically as part of our Treating Customers Fairly programme to establish
whether or not you are satisfied with the service provided by Milton IFA Ltd.
Our Service
The three main categories of business on which we provide advice are…
•
Investments, which includes for example: Pensions, Unit Trusts, Individual Savings Accounts
(ISAs), and Bonds.
•
Mortgages, which include for example: borrowing for house purchase, remortgaging and buyto-lets (Not all mortgages, including buy-to-lets for example, are regulated by the FSA).
•
General Insurance, which includes for example: household, motor and a range of personal
protection plans such as life assurance; critical illness cover; income protection; and payment
protection insurance (PPI).
Our Recommendations
We conduct research of the whole market, the products and alternatives, and provide you with a full
advice and recommendation service. In order for us to do this we must assess your suitability for
particular products and services and this is achieved by you providing us with certain information about
your financial and personal circumstances.
Complaints
Naturally, we wish to ensure that we provide a first class professional and confidential service to our
clients but misunderstandings can arise. If you are dissatisfied with any of the services provided or any
of the products recommended by us and wish to raise a formal complaint, please contact Stuart Milton,
Compliance Officer in writing or by telephone or by email or by facsimile to suit your convenience using
the details at the bottom of this document. We will endeavour to resolve the matter speedily and to
provide a fair response but in the event you are still not satisfied, you have the right, in most instances,
to take your complaint to the Financial Ombudsman Services (FOS). We will supply a copy of our formal
complaints procedure on request, or if we receive a complaint from you. This will include the address of
FOS.
Your Protection
If you make a valid claim against the firm in respect of our services or the products we arrange for you
and we are unable to meet our liabilities in full, you may be entitled to redress from the Financial
Services Compensation Scheme. This depends on the type of business and the circumstances of the
claim. For example, most types of personal investment and mortgage business are covered for 100% of
the first £30,000 and 90% of the next £20,000, so the maximum compensation is £48,000. General
Insurance advising and arranging is covered for 100% of the first £2,000 and 90% of the remainder of
the claim without any upper limit. Further information is available from the Financial Services Authority
and the Financial Services Compensation Scheme.
Client Money
For your protection, we do not handle clients’ payments to the companies we recommend to you and we
will always ask you to issue all payments in favour of the respective company. The only time we will ask
you to issue cheques in favour of Milton IFA Ltd is when they are for Milton IFA Ltd’s fees. We never
accept payments in cash and you should never make cheques payable to the adviser personally.
Disclosure of charges/fees
Most products will generate commission which normally will cover the costs of the work we undertake on
your behalf but there may be occasions when we will levy a fee. For investment financial planning you
will always be given the option to pay a fee instead of Milton IFA Ltd receiving commission and if you
elect to pay a fee, the amount will be agreed with you in writing before we carry out any chargeable
work.
We will either agree a fixed price with you, which most of our clients prefer, or offer the option of an
hourly rate. Our prevailing hourly rate is £150 per hour for the services of an IFA, and £75 per hour for
the work of an administrator. As an example, if your IFA spent 4 hours providing services, with no
administrative support, the fee would be £600 (4 X £150).
We will always disclose our commission terms on request and where commission is paid we will always
disclose in writing the amount of commission that we receive. Other firms may charge different hourly
rates or receive different levels of commission; you are encouraged to shop around for the most
competitive terms.
If we arrange for you to take out an insurance policy for which we receive commission from the life
insurance company and you subsequently cease to pay premiums on the policy resulting in us having to
refund commission to the insurance company, we reserve the right to charge you a fee based on the
number of hours spent in advising you and arranging the policy. However, we will not charge a fee
ifyou exercise your right to cancel the policy in accordance with the cancellation terms of the
product provider. If we recommend to you any policy to which this paragraph applies, we will at the
same time inform you in writing of the maximum amount of any such fee and of the latest time at which
we would charge it.
Conflict of interest
We will endeavour always to act in the best interests of our clients. However, circumstances can arise
where we or one of our other customers 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 customers
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.
Best execution
In executing or transmitting orders 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.
Risk warnings
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, or investment strategies,
we recommend will be confirmed to you in your Suitability Report.
Cancellation rights
In most cases you can exercise a right to cancel, by withdrawing from the contract recommended to
you. In general terms you will normally have a 30 day cancellation period for a life, pure protection or
pension policy and a 14 day cancellation period for all other policies.
The start of the cancellation period will normally begin, for pure protection policies, 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, we may require you to pay for any loss we 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.
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.
If we receive a commission or other form of benefit from the issuer of a security or from another
intermediary, we will inform you, but we will not tell you its amount unless you ask us to do so.
Data Protection
We keep records of all your investment transactions for at least six years. Under the Data Protection
Act 1998 you, or your appointed agent, have the right to inspect the records at a mutually convenient
time. As we treat all our clients' records as confidential, we reserve the right to give you copies of your
records where in certain circumstances to release the original could compromise other clients'
confidentiality.
Milton IFA Ltd may share the Information to enable a review to take place of your total relationship with
us as part of our service to inform you (by mail, telephone, email or otherwise) about products and
services (including those of other organisations) which it is considered may be of interest to you.
If you would like to obtain a copy of the information we hold about you, please write to us at Milton IFA
Ltd, Unit 4 Genesis Business Park, Albert Drive, Woking, Surrey. GU21 5RW.
Stuart Milton, Milton IFA Ltd is the Data Controller of any data we hold about you and any disclosure of
your personal data will be in accordance with the Data Protection Act 1998.
Some services are provided to Milton IFA Ltd 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 Milton IFA Ltd 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. email and you agree that ourselves, 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.
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.
Your Consent
If you wish to instruct Milton IFA Ltd to act on your behalf, please sign below. These Terms and
Conditions of Business become effective from the date of signing and both you and Milton IFA Ltd
having signed this Agreement confirm acceptance of the terms.
By signing these Terms and Conditions of Business
1. You agree that the information we hold about you can be held on computer and/or paper files.
2. You agree that any information which you give us may be disclosed to third parties (e.g. credit
reference agencies and product providers) for any purpose associated with transacting business on
your behalf or to another firm upon the sale of all or part of our business.
3. You agree that we may use the information that we hold about you to contact you from time to
time by post, fax, e-mail or telephone to bring to your attention additional products or services
which may be of benefit to you.
4. We agree that any consent given by you under paragraph 3 above may be withdrawn by you at any
time by writing to: The Compliance Officer, (Name and address)
1/we elect to remunerate Milton IFA Ltd for the services to be provided by:
1.
Milton IFA Ltd receiving commission.
2.
Paying fees to Milton IFA Ltd in accordance with the accompanying Financial Planning Fee
Agreement.
3.
A combination of 1 and 2 in accordance with the accompanying Financial Planning Fee
Agreement.
It is confirmed that I/we wish to retain the services of Milton IFA Ltd. I/we also confirm that I/we have
received, reviewed and understood a copy of :
a)
Milton IFA Ltd’s Client Agreement
b)
A Fee Agreement *
*To be deleted if not applicable
Client Signature --------------------------------------------
Client Signature -----------------------------------
(Full Name)-------------------------------------------------
(Full Name)---------------------------------------
Date: -------------------------------------------------------
Date: ----------------------------------------------
Signed for and on behalf of Milton IFA Ltd
----------------------------------------------------------------Stuart Milton
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