Single Investment (Pension)
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Valleys Innovation Centre Tel: 01443 749 991 / 0845 872 6418<br />
Navigation Park Fax: 01443 741 893 / 0845 872 6419<br />
Abercynon<br />
info@leabold.co.uk<br />
CF45 4SN<br />
www.leabold.co.uk<br />
Customer Agreement for<br />
‘<strong>Single</strong> <strong>Investment</strong> Services (pension)’<br />
This agreement is suitable for customers requiring ongoing advice and oversight of a<br />
single collective investment fund held within a single platform within a pension plan.
1. Parties to this agreement<br />
1.1. This agreement is made between Leabold Financial Management Ltd (referred to variously<br />
in this agreement as ‘the Company’, ‘we’, ‘us’, ‘our’) and the following (referred to in this<br />
document as ‘the Client(s)’, ‘you’, ‘your’):<br />
2. Primary Contact<br />
2.1. The Company will deal with the following individual as the Primary Contact and classify its<br />
dealings with the Clients(s) in accordance with that individual’s understanding and previous<br />
experience of relevant financial matters:<br />
3. Designated Adviser<br />
3.1. The Company has designated the following individual to act in this capacity:<br />
3.2. FCA regulations require the Adviser to hold an approved qualification and statement of<br />
professional standing.<br />
3.2.1. The relevant qualifications held by the Adviser are:<br />
Qualification Awarding Body Date Awarded<br />
3.2.2. The most recent statement of professional standing for the adviser was issued by:<br />
You may review the adviser’s qualifications and most recent statement of<br />
professional standing on our website at https://www.leabold.co.uk/meet-the-team<br />
Page 2 of 13 Customer Agreement <strong>Single</strong> <strong>Investment</strong> Services (<strong>Pension</strong>) – 25/7/2023
4. The Company’s status<br />
4.1. The Company is registered in England and Wales under Companies House number<br />
05173817.<br />
4.2. The Company is a wholly owned subsidiary of Leabold Financial Management Holdings<br />
Limited, which is registered in England and Wales under Companies House number<br />
08296996.<br />
4.3. The Company is directly authorised by the United Kingdom financial services regulator,<br />
the Financial Conduct Authority (FCA), to undertake activities regulated under the Financial<br />
Services and Markets Act 2000. This means the Company holds authorisation directly with<br />
the FCA as opposed to being an appointed representative of another directly authorised firm.<br />
4.4. The relevant activities that the Company has been authorised to undertake by FCA include:<br />
4.4.1. Advising on investments.<br />
4.4.2. Advising on pension transfers and opt-outs.<br />
4.4.3. Bringing about deals in investments.<br />
4.4.4. Making arrangements with a view to transactions in investments.<br />
4.4.5. Assisting in the administration and performance of a contract of insurance<br />
4.5. Details of the Company’s FCA authorisation can be found on https://register.fca.org.uk/<br />
under the Firm Reference Number 402291.<br />
4.6. The Company provides ‘independent advice’. This means that, when advising customers, it<br />
must ‘assess a sufficient range of relevant products available on the market which must be<br />
sufficiently diverse with regard to their type; and issuers or product providers to ensure that<br />
the client’s investment objectives can be suitably met; and not be limited to relevant products<br />
issued or provided by the firm itself or by entities having close links with the firm; or other<br />
entities with which the firm has such close legal or economic relationships, including<br />
contractual relationships, as to present a risk of impairing the independent basis of the advice<br />
provided.’<br />
5. Commencement, alteration, and termination of this agreement<br />
5.1. This agreement is effective once signed by the Client(s) and a Director of the Company.<br />
5.2. The Company may terminate this agreement at any time, and without penalty, subject to<br />
giving written notice to the Client(s).<br />
5.3. The Client(s) may terminate this agreement at any time, and without penalty, subject to giving<br />
written notice to the Company and payment of any outstanding fees.<br />
5.4. The Company reserves the right to change the terms of this agreement on thirty days written<br />
notice to the Client(s)<br />
Page 3 of 13 Customer Agreement <strong>Single</strong> <strong>Investment</strong> Services (<strong>Pension</strong>) – 25/7/2023
6. Client money<br />
6.1. The Company is not authorised by the FCA to hold or control client money. This means<br />
that we cannot accept payments from the Client(s) where these are intended to be passed on<br />
to third parties, or payments from third parties to be passed to the Client(s).<br />
7. Client categorisation<br />
7.1. The Company is required under FCA Handbook rule COBS 3.3.1A to categorise the Client(s)<br />
according to the level of regulatory protection they will be entitled. The Company will<br />
therefore categorise the Client(s) depending on the provision of the following services:<br />
7.1.1. In the case of ‘investment mediation’, this will be a ‘retail customer’. This<br />
means ‘a client who is not a professional client or an eligible counterparty’.<br />
7.1.2. In the case of ‘insurance mediation, this will be a ‘consumer’. This means ‘any<br />
natural person who is acting for purposes which are outside his trade or profession’.<br />
7.2. As either a ‘retail customer’, or ‘consumer’, the Client(s) may have recourse to the<br />
Financial Ombudsman Service in the event of a dispute with the Company reaching deadlock.<br />
The Client(s) may also be eligible for protection from the Financial Services Compensation<br />
Scheme should the Company be unable to cover losses arising from its own negligent acts.<br />
A customer defined as either ‘professional’, or ‘commercial’, would not receive these<br />
protections.<br />
7.3. If the Client(s) believes they should not be classified as a ‘retail customer’, or ‘consumer’,<br />
they will inform the Company immediately.<br />
8. Conflicts of interest<br />
8.1. Occasions can arise where the Company, or another client for whom it may be acting, may<br />
have some form of interest in the business being transacted for the Client(s). If this happens,<br />
or the Company become aware that its interests’ conflicts with those of the Client(s), it will<br />
obtain written consent from the Client(s) before carrying out that transaction.<br />
Conflict Disclosure<br />
8.2. Where the Client(s) has been introduced to the Company by a third party with whom the<br />
Company has an agreement to cede part of any fees payable by the Client(s), the Company<br />
will disclose the name of the third party and the amount of any ceding that will be paid. In<br />
relation to the Client(s):<br />
Name of Introducer<br />
Percentage or amount<br />
of fees to be ceded<br />
Page 4 of 13 Customer Agreement <strong>Single</strong> <strong>Investment</strong> Services (<strong>Pension</strong>) – 25/7/2023
9. Communicating<br />
9.1. In communicating with the Client(s), the Company will:<br />
9.1.1. Provide and exchange documents using either the Company’s secure internet portal,<br />
email, or post.<br />
9.1.2. Take instructions either in written form, recorded phone call, or recorded video call.<br />
9.1.3. Meet with the client via video call. At the Company’s discretion, it may agree to<br />
meet in person.<br />
10. Personal information<br />
10.1. The Company is registered with the Information Commissioner’s Office (ICO) to hold<br />
and process personal information. Details of the Company’s ICO registration can be found<br />
on https://ico.org.uk/ESDWebPages/Entry/Z8721312 under reference Z8721312.<br />
10.2. The Company will collect personal information from the Client(s) and relevant third<br />
parties for the purposes of providing the services set out in this agreement.<br />
10.3. Where the Company needs to obtain personal information from a third party, the<br />
Company will obtain the Client(s) express consent before doing so.<br />
10.4. The Company will not use the information for the purpose of unsolicited marketing<br />
unless the Client(s) has expressly consented to this.<br />
10.5. The Company will not release the information to any other source for the purposes of<br />
unsolicited marketing.<br />
10.6. The Company will share personal information with third parties only when required<br />
by law or where necessary for the purposes of providing the services set out in this agreement.<br />
10.7. The Company will make reasonable endeavours to keep up to date any personal<br />
information it holds regarding the Client(s) during the period this agreement is in force.<br />
10.8. The Company will continue to hold personal information after this agreement has<br />
terminated to enable it to comply with FCA regulations, or as long as reasonably necessary<br />
to indemnify the Company against the risk of claims.<br />
11. Access to records<br />
11.1. The Client(s) may inspect copies of contract notes, vouchers and entries in our records<br />
relating to transactions undertaken on their behalf, provided that reasonable notice is given,<br />
and such access does not affect the confidentiality of other clients.<br />
11.2. On request by the Client(s), the Company will provide details of any personal data it<br />
holds on the Client(s) in accordance with the requirements of the Data Protection Act 2018.<br />
11.3. The Company will use reasonable endeavours to comply with requests from or on<br />
behalf of the Client for copies of documents and information not covered under data protection<br />
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egulations but reserves the right to levy a charge relative to the costs involved in preparing<br />
and forwarding such information.<br />
12. Services<br />
12.1. The Company will use reasonable endeavours to provide the following to the Client(s):<br />
12.1.1. Information collection:<br />
12.1.1.1. The Company will obtain the following information from the Client(s) and<br />
relevant third parties:<br />
12.1.1.1.1. The nature and value of relevant investments, insurances and other<br />
provisions established by or to which the Client(s) may have an entitlement.<br />
12.1.1.1.2. The Client(s) relevant personal circumstances including health and<br />
medical history.<br />
12.1.1.1.3. The Client(s) relevant financial affairs, including assets, liabilities,<br />
income, and expenditure.<br />
12.1.1.1.4. The Client(s) relevant ethical, philosophical views, religious beliefs,<br />
and political affiliations.<br />
12.1.1.1.5. The Client(s) relevant future goals and objectives.<br />
12.1.1.1.6. The Client(s) previous experience of relevant financial matters.<br />
12.1.2. Research and assessment:<br />
12.1.2.1. The Company will research and assess the following:<br />
12.1.2.1.1. The Client(s) understanding of relevant financial matters.<br />
12.1.2.1.2. The Client(s) psychological tolerance to investment risk.<br />
12.1.2.1.3. The statistical mortality and morbidity of the Client(s).<br />
12.1.2.1.4. The extent to which the Client(s) stated objectives are considered<br />
prudent, realistic, and necessary.<br />
12.1.2.1.5. The target investment return required for investments to meet the<br />
Client(s) needs and objectives.<br />
12.1.2.1.6. The nomination of beneficiaries to receive the residual pension fund<br />
following the death of the Client(s).<br />
12.1.2.1.7. The class of financial product in which the Client(s) should make and<br />
hold underlying investments to achieve their objectives.<br />
12.1.2.1.8. The appropriate provider with whom products or services should be<br />
arranged, taking account of:<br />
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12.1.3. Advice<br />
12.1.2.1.9. The necessary options and features available from the recommended<br />
provider’s product or service.<br />
12.1.2.1.9.1. The cost of the product or service relative to that being charged<br />
by other providers offering similar products or services.<br />
12.1.2.1.9.2. The performance of the product or service provider relative to<br />
that achieved by other providers offering similar products or services.<br />
12.1.2.1.9.3. The financial strength of the product or service provider.<br />
12.1.2.1.9.4. The service standards of the product or service provider.<br />
12.1.2.1.10. Where the Client(s) are accumulating investments for retirement:<br />
12.1.2.1.10.1. The level and form of future retirement benefits that would best<br />
meet the Client(s) needs and objectives.<br />
12.1.2.1.10.2. The timing at which the client may be able to take adequate<br />
retirement benefits.<br />
12.1.2.1.10.3. The amount and scheduling of contributions necessary to fund<br />
future retirement benefits.<br />
12.1.2.1.10.4. The maximisation of tax relief on contributions<br />
12.1.2.1.10.5. The minimisation of taxation on future retirement benefits.<br />
12.1.2.1.10.6. The level of investment risk to which the Client(s) should<br />
expose contributions to balance the provision for future retirement<br />
benefits against any constraints in funding.<br />
12.1.2.1.11. Where the Client(s) are decumulating investments in retirement:<br />
12.1.2.1.11.1. The level and form of immediate retirement benefits that would<br />
best meet the Client(s) needs and objectives.<br />
12.1.2.1.11.2. The minimisation of taxation on the payment of retirement<br />
benefits.<br />
12.1.2.1.11.3. The level of investment risk to which the Client(s) should<br />
expose their retirement fund to balance the immediate level of retirement<br />
benefit against the need for payment of benefits to continue over the<br />
Client(s) lifetime.<br />
12.1.3.1. Where the Company provides advice to the Client, it will do so in the form of<br />
a written report.<br />
12.1.3.2. The Company will use its best endeavours to provide the report to the Client<br />
prior to inviting the Client to provide instructions for financial instructions, except<br />
Page 7 of 13 Customer Agreement <strong>Single</strong> <strong>Investment</strong> Services (<strong>Pension</strong>) – 25/7/2023
in circumstances where the Company has reasonable grounds to believe that the<br />
delay involved in preparing a report would risk damaging the Client(s) interests.<br />
12.1.3.3. The report issued to the Client(s) will cover:<br />
12.1.3.3.1. The Company’s professional recommendations.<br />
12.1.3.3.2. The rationale on which the Company’s recommendation is based.<br />
12.1.3.3.3. The initial and estimated future costs arising from the Company’s<br />
recommendations.<br />
12.1.3.3.4. The risks to which the Client(s) may be exposed through following, or<br />
not following the Company’s recommendations.<br />
12.1.4. Periodic review<br />
12.1.4.1. The Company will undertake annual reviews of the original advice covering<br />
relevant changes in the following:<br />
12.1.4.1.1. The Client(s) objectives.<br />
12.1.4.1.2. The Client(s) personal circumstances and financial situation.<br />
12.1.4.1.3. The suitability of previous advice provided to the Client(s) including<br />
financial product and service types held by the Client(s)<br />
12.1.4.1.4. The continued suitability of product providers with whom financial<br />
product types have been established by the Client(s).<br />
12.1.4.1.5. Relevant legislation and taxation matters.<br />
12.1.4.1.6. The extent to which the collective fund in which the investment is held<br />
is considered appropriate and adequately diversified in meeting expectations<br />
of growth and risk.<br />
12.1.4.1.7. The extent to which levels of charging are considered fair and justified<br />
in relation to activity levels and other relevant considerations.<br />
12.1.4.1.8. The extent to which returns and volatility levels compare with the<br />
targets recommended by the Company as necessary to meet the Client(s)<br />
objectives.<br />
12.1.4.1.9. The extent to which cashflows in an out of the investment give rise to<br />
risk.<br />
12.1.5. Reporting<br />
12.1.5.1. Where the Company provides advice to the Client, it will do so in the form of<br />
a written report.<br />
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12.1.5.2. The Company will use its best endeavours to provide the report to the Client<br />
prior to inviting the Client to provide instructions for transactions, except in<br />
circumstances where the Company has reasonable grounds to believe that any delay<br />
in executing those instructions would damaging the Client(s) best interests.<br />
12.1.5.3. The report issued to the Client(s) will set out:<br />
12.1.5.3.1. The purpose of the report and any action that the Client(s) is expected<br />
to take in relation to its content.<br />
12.1.5.3.2. The Company’s understanding of the Client(s) objectives.<br />
12.1.5.3.3. The critical information on which the Company’s recommendations<br />
have been made, including any information where the Company has placed<br />
reliance on the Client(s) as having equal or greater expertise or knowledge<br />
than the Company.<br />
12.1.5.3.4. Where initial advice is being provided, the report will set out the<br />
Company’s professional recommendations and rationale on which those<br />
recommendations are based.<br />
12.1.5.3.5. Where a review of initial advice is being provided, the report will set<br />
out those product types, providers, and other aspects of previous advice on<br />
which the Client(s) are recommended to approach the Company for further<br />
advice.<br />
12.1.5.3.6. The risks to which the Client(s) may be exposed through following, or<br />
not following the Company’s recommendations.<br />
12.1.6. Taking instructions<br />
12.1.6.1. Following provision of advice to the Client(s), the Company will:<br />
12.1.6.1.1. Meet with the Client(s) to consider the Company’s professional<br />
recommendations and assist the Client in reaching an informed and objective<br />
decision on how to proceed.<br />
12.1.6.1.2. Determine the Client(s) instructions regarding arranging any necessary<br />
transactions.<br />
12.1.6.2. In providing instructions to the Company, the Client(s) will not be under any<br />
obligation to follow the Company’s advice and may modify or decline to follow<br />
specific recommendations. In such circumstances:<br />
12.1.6.2.1. The Company reserves the right to decline to assist with or arrange any<br />
transaction that it reasonably believes may expose the Client(s) to significant<br />
and unwarranted risk.<br />
12.1.6.2.2. Where the Company agrees to assist with or arrange a transaction<br />
against its advice, the Client(s) agree not to hold the Company liable for any<br />
consequent loss or damages.<br />
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13. Charges<br />
12.1.7. Transactions<br />
12.1.7.1. Where the Client(s) instruct the Company either to carry out a transaction that<br />
has either been specifically recommended by the Company, or, where the Company<br />
has specifically agreed to carry out that transaction, the Company will:<br />
12.1.7.1.1. Pass on the Client(s) instructions to relevant parties and make<br />
appropriate arrangements for the transaction to be executed.<br />
12.1.7.1.2. Monitor the transaction and liaise between the relevant parties with a<br />
view to the transaction being completed within the terms and timescales that<br />
have been indicated to the Client(s).<br />
12.1.7.1.3. On completion of the transaction, to pass on confirmation to the<br />
Client(s) and provide evidence of the terms of which the transaction was<br />
completed.<br />
12.1.7.1.4. Arrange for any title documents to be passed on to the Client(s).<br />
12.1.8. Forwarding and monitoring<br />
12.1.8.1. The Company will forward to the Client(s) all important communications<br />
received from product providers in relation to relevant financial products<br />
established by the Client(s).<br />
12.1.8.2. The Company will monitor changes in relevant legislation and notify the<br />
Client(s) in circumstances where it believes such changes may materially affect the<br />
objectives, attitude to risk, personal circumstances, or financial situation of the<br />
Client(s).<br />
13.1. Initial advice<br />
13.1.1. These will apply on each occasion that the Client(s) request the Company to a new<br />
portfolio of investments and will comprise:<br />
13.1.1.1. ‘Information collection’ - as described under clause 13.1.1.<br />
13.1.1.2. ‘Research and assessment’ – as described under clause 13.1.2.<br />
13.1.1.3. ‘Advice’ – as described under clause 13.1.3.<br />
13.1.1.4. ‘Reporting’ – as described under clause 13.1.5.<br />
13.1.1.5. ‘Taking instructions’ - as described under clause 13.1.6.<br />
13.1.1.6. ‘Transactions’ – as described under clause 13.1.7.<br />
13.1.2. The charge for ‘initial advice’ will be assessed based on the value of those investments<br />
the Client(s) require to be overseen by the Company in accordance with the following<br />
tariff:<br />
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Value of the Client(s) investments<br />
Charge rate<br />
£1 - £50,000 £600<br />
£50,001 - £100,000 £831<br />
13.2. Additional investment advice<br />
13.2.1. This will apply on each occasion where the Client(s) wishes to make an additional<br />
capital payment to an investment portfolio that has previously been established by the<br />
Company and will include the same services as the ‘initial advice described in clause<br />
14.1.1.<br />
13.2.2. The charge for additional investment advice will be based on the value of the<br />
additional capital payment in accordance with the following tariff:<br />
Per amount of additional investment<br />
Charge rate<br />
£50,000 £400<br />
13.3. Ongoing services<br />
13.3.1. This applies following the provision of ‘initial advice’ and will include:<br />
13.3.1.1. ‘Forwarding and monitoring’ – as described under clause 13.1.8.<br />
13.3.1.2. ‘Periodic review’ – as described under clause 13.1.4.<br />
13.3.1.3. Assistance with annual HMRC reporting on relevant taxation matters,<br />
13.3.1.4. In addition. the firm will provide the same services as ‘initial advice’ in relation<br />
to the following:<br />
13.3.1.4.1. Where the Client(s) wishes to make an ad-hoc partial withdrawal of<br />
capital.<br />
13.3.1.4.2. Where the Client(s) wishes to commence taking or change levels of<br />
regular withdrawals of capital<br />
13.3.1.4.3. Where the Client(s) wishes to change their exposure to investment risk<br />
or increase the potential for return.<br />
13.3.1.4.4. Where it becomes necessary or desirable to replace an existing product<br />
or provider with one offering better terms.<br />
13.3.1.4.5. Where it becomes necessary or desirable to utilise tax allowances<br />
available under an ISA, insurance investment, or pension arrangement.<br />
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13.3.2. The charge for ‘ongoing services’ will be based on the total value of the investment<br />
overseen by the Company and in accordance with the following tariff:<br />
Value of the Client(s) investments<br />
Charge Rate<br />
Minimum charge<br />
Charge rate<br />
0.5%pa of investment value<br />
£300pa<br />
14. Payment of charges<br />
14.1. Where available, the Company will provide the Client(s) with the option to pay<br />
charges by either:<br />
14.1.1. Collection via the product or service provider:<br />
14.1.1.1. Charges will be deducted from the Client(s) investments by the product<br />
provider and passed on to the Company.<br />
14.1.1.2. In the case of ‘initial services’, payment will be made by the product provider<br />
after completion of any related transactions. If there are no related transactions<br />
arising from the Company’s advice, or if the amount of payment from the product<br />
provider is insufficient to cover the agreed cost of services, the Company will then<br />
invoice the Client(s) directly.<br />
14.1.1.3. In the case of ‘ongoing services’ payment will be made by the product provider<br />
in arrear over the period determined by the product provider’s terms for payment<br />
of adviser charges. Where the amount of payment from the product provider is<br />
insufficient to cover the agreed cost of services, the Company will then invoice the<br />
Client(s) directly.<br />
14.1.2. Direct payment:<br />
14.1.2.1. Charges will be invoiced for payment by the Client(s) within thirty days.<br />
14.1.2.2. In the case of ‘initial services’ the invoice will be issued following the<br />
provision of advice or, where related transactions are to be arranged by the<br />
Company, following completion of those transactions.<br />
14.1.2.3. In the case of ‘ongoing services, the invoice will be issued annually in<br />
advance on those services being provided.<br />
15. Cancellation of ongoing services<br />
15.1. The future provision of ongoing services may be cancelled by the Client(s) at any time<br />
subject to payment of any outstanding charges.<br />
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16. Special Agreements<br />
Special arrangements and modifications to our usual terms<br />
17. Agreement to proceed<br />
17.1. The terms of this agreement will be binding once signed by the Client(s) and on behalf<br />
of the Company by one of its directors:<br />
Name of Client:<br />
Signature:<br />
Date:<br />
On behalf of Leabold Financial Management Limited:<br />
Name of Director:<br />
Signature:<br />
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