Royal London ICVC Terms & Conditions of Business
These are the Terms and Conditions for your Royal London ICVC Funds.
You should carefully read this web page, the Key Investor Information Document, the Supplementary Information Document for the Funds you want to invest in, and complete your Application Form. For further information on the funds, you may wish to read the prospectus, which is available on our website or from us upon request.
Please only consider investing with us if you understand the risks relevant to your investment (as set out in the prospectus), including the risk of losing all capital invested. If there is anything you do not understand, please contact us on 020 7506 6500 or speak to your financial adviser.
We advise you to keep copies of the above documents for your own records.
Definitions
The definitions below provide the meanings of the following words and phrases used in these Terms and Conditions:
Account: means your Shares held in respect of your lump sum and/or regular contribution into one or more Funds.
ACD: Royal London Unit Trust Managers Limited.
Agreement: means the Agreement between the ACD and you, as the investor as constituted by the Application and these Terms and Conditions.
Application: shall mean a completed Written Application Form as supplied with these Terms and Conditions and any subsequent Application for additional Shares in Writing or by telephone which will be subject to the same information, declaration and authority as provided in the original Application unless otherwise advised by you.
Depositary: HSBC Bank plc or any successor from time to time.
FCA: means the Financial Conduct Authority, whose registered address is: 12 Endeavour Square, London E20 1JN and any successor regulator.
These Terms and Conditions
These Terms and Conditions, which are governed by English law, shall apply to an Account as soon as it is accepted by the ACD.
In the event of any conflict between the Rules and these Terms and Conditions, the Rules will prevail. Where the context permits, words importing the singular shall include the plural and vice versa.
The Terms and Conditions and all information supplied prior to contract, together with communications during the course of the contract, will be in English.
For purposes of investing in the Funds, you will be treated as a per se professional client who possesses the experience, knowledge and expertise to make investment decisions and properly assess the risks incurred. A per se professional client has the right to request a different client classification, which may afford more or less protection, but the ACD reserves the right to decline any such requests.
These Terms and Conditions apply to investments in one or more of the Funds. The products and services outlined in this document are open only to residents of the United Kingdom and the European Economic Area (EEA).
US persons or benefit plan investors covered by the Employee Retirement Income Security Act 1974 (ERISA) are not eligible investors for this fund. The ACD reserves the right to sell your Shares at any time if you are found to be a US person or ERISA investor.
Opening an Account
An Application can be received from any applicant over 18 years of age wishing to invest via a lump sum investment, through the monthly savings scheme, or both.
If you wish to invest on behalf of someone under 18 years of age, the application can be made and the Shares registered in the name of a parent or other adult and designated with the initials of the child. Shares can be registered into the child’s name when the child reaches the age of 18.
You can make investments on any business day (excluding weekends, bank holidays and any day the London Stock Exchange is closed) between 9am and 5pm. All investments are made at the next available Valuation Point.
Funds are valued at 12 noon on every business day, although the ACD has discretion to make additional Valuation Points.
For the purposes of preparing past performance data only, an additional valuation of the property of the Sub-funds is carried out at 5.00pm on the last business day of each calendar month using the same methodology as the 12 noon valuation. This is not a valuation point for dealing in Shares.
Where there is more than one applicant, all correspondence will be sent to the address of the first named applicant only.
We do not accept third-party payments, including direct debit payments, and do not make third-party payments.
Charges on an Account
The levels of the Fund Management Fee will be reviewed by the ACD in exceptional circumstances and on an annual basis in any event to ensure that they remain fair to Shareholders. Any increase in the Fund Management Fee will require prior notice to be given to Shareholders, at least 60 days before any such increase may take effect. The Prospectus will also be revised to reflect the new rate(s). Please note that you have a right to end the application of these Terms and Conditions at any time by selling your investment in the Funds if you do not like any variations that we propose.
Money Laundering
The ACD is required, in certain circumstances, including for example new account openings, change of address, and change of name, to make checks on lump sum and regular savings transactions in order to comply with the requirements of the latest UK Money Laundering Regulations, the FCA rules and the current Joint Money Laundering Steering Group guidance. You agree to provide us with any updates to your personal details on a timely basis so that any required money laundering checks can be completed prior to your requested transactions.
These checks involve the need to obtain independent documentary verification of the identity and permanent address of the person applying to open the Account. The checks may include an electronic search of information held about such a person on the electoral roll and the use of credit reference agencies. Completion of the Application Form and subsequent beneficial owner and controllers details supplied represents permission from you to access this information, in accordance with the General Data Protection Regulation (Regulation (EU) 2016/679 of the European Parliament and the Council of 27 April 2016) and any consequential national data protection legislation.
It would help us if you could, where possible, pay for any lump sum investment you make by a cheque drawn on your (or joint) personal bank Account. We do not accept third party payments (including direct debit payments) and do not make third party payments.
Where you are investing money using a building society cheque or banker’s draft, please arrange for your bank or building society to certify, on the reverse, the name of the client from whose bank account payment is being made.
Please note that the Application may not be accepted until the ACD is in receipt of all required anti-money laundering documentation, the original Application Form and the original banking details for the settlement of the redemption proceeds. In any event, redemption and dividend payments will not be processed until full anti-money laundering documentation has been received on the Account and the ACD reserves the right to take further action where full anti-money laundering documentation has not been received. This may include the refusal to accept further investments and/or withdrawal requests.
We are also required to record details of all beneficial owners and controllers of the Account, as appropriate. If we require further details we will contact you directly. Electronic checks as outlined above may be undertaken.
As previously outlined, in any event, redemption and dividend payments will not be processed until full anti-money laundering documentation has been received on the Account and the ACD reserves the right to take further action where full anti-money laundering documentation has not been received. This may include the refusal to accept further investments and/or withdrawal requests.
We do not accept agent confirmation certificates for antimoney laundering identification and verification purposes. To prevent financial crime, your details may be passed to governmental, regulatory or other bodies as required by law.
Data Protection
Where we collect and/or process any of your personal information in relation to these Terms of Business, we shall do so in accordance with our Privacy Notice available online at www.rlam.co.uk. If you would like a copy of this document, please write to us using the below contact information.
The ACD’s Right to Refuse an Application
The ACD reserves the right to refuse any Application to invest in a Fund without giving a reason for doing so.
Conflict of Interest
Where tthe ACD or any associated company has directly or indirectly a significant interest in a transaction or a relationship with another party which may involve a potential conflict with their duty to you, we have systems and controls in place which are designed to ensure your fair treatment. The Royal London Asset Management Conflicts of Interest Policy covers the potential conflicts of interest arising in the course of investment business between Royal London Asset Management, its employees and its clients that could significantly impact the interests of Royal London Asset Management’s clients in the absence of adequate controls. For example, controls are in place to govern the accepting of gifts and hospitality and any other benefits or inducements. The FCA Rules require us to allocate investments and treat customers fairly. If it is not possible to prevent or manage a potential conflict of interest to ensure with reasonable confidence, that risks of damage to your interests will be prevented, then, we may seek to disclose the general nature and/or sources of conflict to you before undertaking business for you. Details of our policy are available on request. If you have any questions regarding the policy please contact us or your professional adviser.
Cancellation Rights
The Rules allow you a period in which to cancel your purchase. Please see “Can I Change My Mind?” in the Supplementary Information Document for details regarding cancelling your investment.
If you have received advice from a Financial Adviser, and if you have further questions regarding cancelling your purchase, then you should speak to your Financial Adviser.
Closing an Account
You may sell all or any of your Shares at any time by instructing us to sell some or all of your Shares as described in “How do I Sell my Investment” in the Supplementary Information Document. There is no minimum duration to this contract.
We do not make third party payments.
Variations and Amendments
The ACD may, at its discretion and subject to giving at least 30 days’ notice to you, vary or amend the Terms and Conditions. Please note that you have a right to end the application of these Terms and Conditions at any time by selling your investment in the Funds if you do not like any variations that we propose.
Any amendment which is made to reflect a change of applicable law or regulation, including the Rules, may take effect immediately or otherwise as we may specify.
Liability
Provided that the event in question is beyond the ACD’s control, the ACD will not be liable for the acts, omissions or defaults of agents or custodians or their employees, nor for strikes, interruption of power supplies, machinery failure, pandemics, war, terrorist attack or causes beyond the ACD’s control.
The ACD will be liable only for errors, acts or omissions arising from the ACD’s negligence, wilful default or fraud, but nothing under this clause will exclude the ACD’s liability for a breach of the Rules.
The performance of any pooled investment is dependent upon the underlying investment market to which it is linked. These markets are subject to price fluctuations, so that no particular result can be guaranteed. The value of and any income from an investment in the finance markets may fall as well as rise and you may not get back the amount originally invested. The value of overseas investments will be influenced by the rate of exchange which is used to convert them back into sterling.
Delivery Versus Payment (DvP) Exemption
The ACD makes use of the “delivery versus payment” (DvP) exemption as permitted by the Rules, which provides for a one business day window during which money paid to the ACD to buy Shares is not treated as client money. If the ACD has not passed subscription money to the Depositary at the end of the one business day window, the ACD will place the subscription money in a client money bank account until it can make the transfer.
The ACD also makes use of the DvP exemption when it redeems Shares. Money due to be paid to Shareholders following a redemption need not be treated as client money provided the redemption proceeds are paid to the Shareholder within a one Business Day window of receipt of the redemption proceeds from the Depositary. If the ACD is not able for any reason to pay a Shareholder in that timeframe it will place the redemption money in a client money bank account until it can make the payment.
Money which is not held as client money will not be protected on the insolvency of the ACD.
The ACD does not pay interest on any client money it may hold.
Unclaimed Money or Assets
In accordance with the client money rules in the Rules, if client money is unclaimed for a period of six years (or client assets are unclaimed for a period of 12 years) we may give them to a registered charity of our choice. We will be able to do this only in accordance with general law, the Rules, and where we have taken all necessary steps to trace the Shareholder and return the money or the assets.
If the client money or client asset is equal to or below the ‘de minimis’ level set by the client money rules in the Rules (that is, £25 or less for retail clients and £100 or less for professional clients) then there are fewer requirements for us to fulfil before we may pay the money or asset to charity but we will still attempt to contact Shareholders at least once before doing so. The time periods set out above during which the money or assets may not be ‘paid away’ to charity continue to apply.
Payment of any unclaimed balance to charity will not prevent Shareholders from claiming the money or assets in the future.
Transfer of Business
If all or part of the ACD’s business is transferred to a third party, you hereby agree that we may transfer your client money to that other third party subject to our duties under the Rules.
International Tax Reporting
In order to comply with the legislation implementing the United Kingdom’s obligations under various intergovernmental agreements relating to the automatic exchange of information to improve international tax compliance (including the United States provisions commonly known as ‘FATCA’), the ACD (or its agent) will collect and report information about Shareholders for this purpose, including information to verify their identity and tax status.
When requested to do so by the ACD or its agent, Shareholders must provide information to be passed on to HM Revenue & Customs, and to any relevant overseas tax authorities.
Shareholders refusing to provide the requisite information to the ACD may be reported to HM Revenue & Customs. If a prospective investor is concerned about this, he/she should take appropriate advice.