The FTSE 100 Tracker Fund - Including: Key Facts about our services and costs. Supplementary Information Document. FTSE 100 Tracker Fund ISA Terms ...
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The FTSE 100 ®
Tracker Fund
Including:
Key Facts about our services and costs.
Supplementary Information Document.
FTSE® 100 Tracker Fund ISA Terms and Conditions.
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Key facts about our Services and Costs 3
Supplementary Information Document 5 – 12
FTSE® 100 Tracker Fund ISA Terms and Conditions 13 – 17
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National Westminster Bank Plc
135 Bishopsgate
London EC2M 3UR
1. The Financial Conduct Authority (FCA)
The FCA is the independent watchdog that regulates financial services. This document is designed by the FCA to be
given to consumers considering buying certain financial products. You need to read this important document. It
explains the service you are being offered and how you will pay for it.
2. Which service will we provide you with?
Independent advice – We will advise and make a recommendation for you after we have assessed your needs.
Our recommendation will be based on a comprehensive and fair analysis of the market.
Restricted advice – We will advise and make a recommendation for you after we have assessed your needs, but we
only offer advice on limited types of products, or products from one company or a limited number of companies.
No advice – You will not receive advice or a recommendation from us. We may ask some questions to narrow
down the selection of products that we will provide details on. You will then need to make your own choice about
how to proceed.
3. What will you have to pay us for our services?
We will tell you how we get paid, and the amount, before we carry out any business with you.
4. Who regulates us?
National Westminster Bank Plc, 280 Bishopsgate, London EC2M 4RB is authorised and regulated by the Financial
Conduct Authority. Our Financial Services Register number is 121878.
Our permitted business is advising and arranging life insurance, pensions and investments.
You can check this on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register or by
contacting the FCA on 0800 111 6768.
5. Loans and ownership
National Westminster Bank Plc and RBS Collective Investment Funds Limited are wholly owned by The Royal Bank of
Scotland Group plc.
6. What to do if you have a complaint
If you wish to register a complaint please contact us:
...in writing Write to: RBS Collective Investment Funds Limited, PO Box 6795, Brentwood, Essex CM15 8WA.
...by phone Telephone 0844 892 2502. Lines are open Monday to Friday 8.00am to 6.00pm (excluding bank
holidays). Calls may be recorded and monitored.
If you have hearing or speech difficulties please dial Minicom 0800 404 6160.
If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.
7. Are we covered by the Financial Services Compensation Scheme (FSCS)?
We are covered by the 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. Most types of investment business are up to a
maximum limit of £50,000. Further information about compensation scheme arrangements is available from the FSCS.
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About this document
This document is designed to provide you with information about the FTSE® 100 Tracker Fund (the Fund). Please read it alongside the two-page Key Investor Information
Document (KIID). Together, these two documents provide information to help you decide if the Fund is right for you, and provide answers to some important questions.
Contents
About this document 5
Welcome to the FTSE® 100 Tracker Fund 6
How the Fund works 6
Who is the Fund suitable for? 6
What are the Risk Factors? 6
How to invest 7
Cash Held 7
ISA transfers – what you need to know 8
Withdrawing your investment 8
Product charges 9
Potential returns 9
How your investment is taxed 9
What to do if you have a complaint 10
Your classification 10
Your questions 11
Next Steps 12
How to apply 12
How to contact us 12
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The FTSE® 100 Tracker Fund provides a simple way to invest in the UK stock market. It allows you to take full advantage of the growth potential of stocks and shares, without
needing your own investment strategy. The value of your investment simply tracks the value of the FTSE® 100 Index, so it’s easy to keep an eye on how your investment is doing. Y
T
The value of your investment and any income can go down as well as up, and you should be aware that you may not get back the value of your
original investment.
How the Fund works
When you invest in the FTSE® 100 Tracker Fund, you are effectively buying shares in the UK’s largest companies by market capitalisation on the London Stock Exchange.
These will be well-known companies such as Vodafone, Tesco and Marks & Spencer.
As its name suggests, the Fund tracks the performance of the FTSE® 100 Index. This Index reflects the value of the 100 companies listed on it. So, if it goes up, the value
of your investment also rises. Likewise, if the Index falls, the value of your investment will also fall.
Because the Fund invests in a variety of shares, the risk is spread more widely than if you invested directly in the shares of a single company.
Who is the Fund suitable for?
Y
You should consider investing in the FTSE® 100 Tracker Fund if:
Q You want a straightforward way to invest in UK shares
Q You understand that the value of the Fund can fall as well as rise
Q You recognise that you could get back less than what you put in
Q You want to spread risk by tracking an index rather than investing in an individual company’s shares
Q You wish to invest tax-efficiently using your ISA allowance
Q You are happy making an investment decision without seeking advice
Q You are prepared to invest for a minimum of 5 years
Q You are aged 18 or over
What are the Risk Factors?
The RBS Index Tracker Funds, Investment Fund with Variable Capital (ICVC) aims to provide an adventurous investment vehicle where there is a high risk of loss to capital when
compared to lower risk investments such as cash accounts and investments where you have some protection for your capital. The value of your investment can go down as
well as up and you may get back less than the value of your original investment. What you get back is not guaranteed. It will depend on the investment performance of the
Fund, our charges and any withdrawals you make.
In the event of RBS Collective Investment Funds Limited being unable to meet its obligations (e.g. if it stops trading or becomes insolvent), you may lose some or all of
your money.
The investments of the Fund are subject to normal market fluctuations and other risks inherent to investing in securities. There can be no assurance that any increase in the
value of investments will occur and there is no assurance that the investment objective of the Fund will actually be achieved.
The value of your investment will also depend on how closely the Fund is able to track the FTSE® 100 Index. The Fund aims to track the Index by investing in a broad range
of shares underlying the Index. The performance of the Fund will not perfectly track this Index due to the impact of:
Q any regulatory restrictions on the Fund investments matching the constituents of the Index;
Q dealing costs, charges and other expenses; and
Q the timing of income from investments, sales and purchases of investments to meet the cash flows of the Fund.
Future changes in tax rules by the Government and our charges may affect the value of your investment and any returns from this. For more information on risks involved in,
and for risks relating specifically to the Fund, please refer to the Key Investor Information document.
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Your options
There are a number of different ways to invest in the FTSE® 100 Tracker Fund. How you choose to invest will depend on your individual circumstances and objectives.
Whichever option you choose, you should plan to keep your investment for at least five years.
From time to time, money may be held on your behalf that has not been invested in the Fund. On these rare occasions, interest won’t be paid to you.
Invest using your Stocks and Shares ISA allowance
Q You can invest in the FTSE® 100 Tracker Fund using your annual Stocks and Shares ISA allowance
Q This is a tax allowance from the Government allowing you to invest up to £11,280 per tax year tax-efficiently as per 2012/2013 allowance
Q You can invest an initial lump sum (from £500 with additional single increments of £200 or more)
Q You can invest a regular monthly amount from £30 a month with increments of £10 or more
Invest by transferring an existing ISA
Q If you have existing Cash or Stocks and Shares ISAs with other providers, you can transfer them into the Fund (the minimum you can transfer in is £500)
Q Please note your existing ISA provider may charge you a fee to transfer the ISA. Before considering transferring an ISA please read ‘ISA transfers - what you need to know’
on the following page
Invest directly
You can invest directly into the Fund, whether or not you also use your annual ISA allowance or transfer any existing ISAs.
Q You can invest an initial lump sum from £1,000
Q You can set up a regular monthly amount (from £30 a month with increments of £10 or more)
Q You can top up at any time with amounts of £1,000 or more
Q You can invest directly in these funds in your own name or jointly with up to three other people. An ISA application however must be in a single name only
Please note that any tax treatment and/or reliefs referred to are those that apply under current legislation. They may change in the future and their availability
will depend on your individual circumstances. The favourable tax treatment of ISAs may not be maintained.
FTSE® 100 Tracker Fund – how much you can invest
Investing via Stocks and Shares ISA Investing via ISA transfer Investing directly
Lump sum or regular?
Minimum Maximum Minimum Maximum Minimum Maximum
Initial lump sum investment £500 £11,280 £500 No limit £1,000 No limit
Regular monthly investment £30 per month £940 per month Not applicable £30 per month No limit
Stocks and Shares ISA vs Cash ISA
Invests in shares and related assets Typically a deposit or interest bearing account
Potential for capital growth Fixed or variable interest
Risk of losing money Greater capital security
Invest up to £11,280 per tax year less any amount invested into a cash ISA Invest up to £5,640 of the overall ISA allowance per tax year with one provider
(as per 2012/13 ISA allowance) (as per 2012/13 ISA allowance)
Cash Held
Interest will not be paid on any money held by us on your behalf that is not invested in Shares at any time.
We reserve the right not to treat any cash balances due to you as client money if they remain unclaimed for a period of over 6 years. We will continue to accept and process
any valid claims against such money during and after this period.
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What is an ISA transfer? T
An ISA transfer is when you move investments held in an existing ISA into a new ISA with another ISA Manager, for example into the FTSE® 100 Tracker Fund ISA. The following T
information aims to explain what’s involved and the risks you should be aware of.
How it works
T
You can transfer part or all of a previous year’s ISA investment into the Tracker Fund. If you want to transfer an ISA investment made in the current tax year, you must transfer
the whole amount. The minimum transfer value is £500. Our Administration team will guide you through the transfer process, but will not offer investment advice. You should
f
be aware of:
Q ISA transfers can only be accepted as cash
Q Any exit charges that your old provider may apply
Q Any difference in ongoing charges
T
Q A potential difference in the risk between your old investment and the FTSE® 100 Tracker Fund
Q The possibility that you may lose tax benefits when you transfer
Q The possibility that you may miss out on growth while the transfer (that can take up to 30 days) takes place – if the stock market rises
Q If you choose to transfer a Stocks and Shares ISA into the Fund and then decide to cancel after the investment has been made, you may not be able to reinstate your Stocks
and Shares ISA with your previous ISA provider T
Thinking of transferring a Cash ISA?
If you are considering transferring a Cash ISA into the Fund, please bear in mind the following:
Q Stocks and Shares ISAs, such as the FTSE® 100 Tracker Fund ISA, involve higher risks than Cash ISAs with the aim of providing long-term capital growth
Q Stocks and Shares ISAs are a longer-term investment which you should plan to commit to for at least five years T
Q Stocks and Shares ISAs offer the potential for greater returns, but this isn’t guaranteed and the returns could be lower than a Cash ISA. There is also the possibility that you
may lose money T
Q If you choose to transfer a Cash ISA into the Fund and then decide to cancel after the investment has been made, you won’t be able to reinstate your
Cash ISA. There is also a risk you will lose the tax benefits if you don’t transfer the plan value at that time to another Stocks and Shares ISA
Q Once you transfer a Cash ISA to a Stocks and Shares ISA you are unable to transfer this back into a Cash ISA
To transfer an existing ISA
Please contact our Administration Team on 0844 892 2502. You will need to complete and sign an ISA Transfer Application form and send it to us. We will then send it to your
current ISA manager.
Withdrawing your investment
The Fund is designed as a medium to long-term commitment which you should plan to stay invested in for at least five years. You can however, withdraw from your investment T
at any time.
Q The minimum withdrawal amount is £50 W
Q You must keep at least £50 invested in order to keep your plan open
Q Any withdrawal will reduce what you get back when you cash in your investment
Q If you invest the maximum amount into a Stocks and Shares ISA and then make a withdrawal, you will not be able to reinvest that amount back into an ISA in the same tax year
Q To sell shares, please write to us at: RBS Collective Investment Funds Limited, PO Box 6795, Brentwood, Essex CM15 8WA
Q We will send you a cheque within four working days of receiving your signed written request
On the day we receive your written instructions, we will normally sell your shares based on the value of your shares in the FTSE® 100 Tracker Fund at 12 midday on the same
day (assuming it’s a business day). If we receive your request after 12 midday – or if it’s not a business day – we’ll use the value of your shares in the FTSE® 100 Tracker Fund
at 12 midday on the next business day.
W
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There is no initial charge to invest in the Fund, however, there are other charges that may apply:
The Annual Management Charge (AMC) – this charge covers the cost of managing the Fund, researchers and analysts. It also pays the cost of administering your
investment. This charge may be increased if the cost of managing your investment increases – for example, due to changes in taxation, regulation, the law or the cost of fund
management. If the AMC is to be increased, we’ll write to you to let you know.
The Ongoing Charges – The Ongoing Charges are the annual operating costs of the Fund. It is the total of the annual management charge, service charges, registrar charges
and other expenses relating to the management of the Fund. All European funds highlight the Ongoing Charges to help you compare the annual operating expenses of different
funds. Please note that the Ongoing Charges may vary from year to year.
IMPORTANT – Please be aware that the fund managers are able to vary the charges applied, but we will inform you of any changes in advance.
Investor Protection Fee – We may, in exceptional circumstances, apply an Investor Protection Fee to ensure fairness between all investors in the Fund. We apply it when you
buy or sell shares in the Fund and it will reduce the value of your investment. The fee will be retained in the Fund for the benefit of all existing investors.
The Investor Protection Fee may be applied in the following circumstances:
Q An investor wants to sell a significant number of shares in the Fund or invest a significant amount
Q The fund manager may have to sell assets from the Fund or buy new assets
Q The Fund may incur significant dealing costs which would mean other investors would be disadvantaged if the Investor Protection Fee wasn’t applied
The Investor Protection Fee is applied by:
Q Reducing the money paid to the investor selling shares or
Q Deducting the fee from the money being invested by an investor buying shares
Potential returns
The Fund aims to grow the money you invest over a medium to long-term period – that is, over five or more years. The amount you get back will be determined by the value of
your shares in the FTSE® 100 Tracker Fund at the time you cash in your investment.
The amount is not guaranteed and will be affected by factors including:
Q The amount you invest and the time you allow it to grow
Q The performance of the FTSE® 100 Index over the period of your investment
Q Our charges and fees
Q Any withdrawals you make
How your investment is taxed
The amount of tax you pay on your investment will depend on a number of factors, including how you invest, how your investment performs and whether you are a non-
taxpayer, a basic rate taxpayer or pay tax at one of the higher rates.
When investing directly
Please note, you must declare taxable income or gains from your direct investments to HM Revenue & Customs.
Income tax
Dividend payments from shares that the Fund invests in are reinvested in the Fund after 10% tax has been deducted. This increases the Fund value. Dividend payments provide
you with a share of the profits of the FTSE® 100 companies
Q Non-taxpayers will not be able to reclaim the 10% tax deducted
Q If you pay tax at the basic rate, you won’t have to pay any more tax
Q If you pay tax above the basic rate, you will have additional tax to pay
Q We will send you a tax voucher showing the amount of the dividend and the tax paid
Capital Gains tax
Q You may have to pay Capital Gains Tax if you cash in your investment and make a profit (a gain)
Q However, you could minimise any Capital Gains Tax liability by using your Capital Gains annual exemption in the year that you cash in your investment
Q We do not deduct Capital Gains Tax before we pay out the value of your investment
When investing via an ISA
Q You do not have any personal liability to Income Tax or Capital Gains Tax on an ISA investment
Q The value to an investor of the tax advantages of an ISA will depend on personal circumstances, which may change
Q There is no need to declare income or gains from your ISA to HM Revenue & Customs
Q Dividend payments from shares in the Fund are reinvested in the Fund after 10% tax has been deducted and this cannot be reclaimed
Stamp Duty Reserve Tax (SDRT)
Q Any liability for SDRT is currently met by RBS Collective Investment Funds Limited, so, as an investor, you will not be liable to pay it
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Complaint Handling
If you make a complaint we would aim to solve your concern as soon as possible. However, if we have not been able to resolve your concern within one week, we will write to A
tell you:
Q Why we have not yet resolved your complaint
Q Who is dealing with your complaint A
Q When we will contact you again
We would contact you regularly until your complaint has been resolved and we aim to resolve your complaint as quickly as possible.
If your complaint is particularly complicated, it may take longer to resolve. When we have completed our investigation, we would issue our final response letter.
If we cannot issue a final response letter 8 weeks after receiving your complaint, we would send you a letter giving our reasons for the delay and an indication of when we
expect to provide a resolution.
You would also receive a leaflet explaining your referral rights to the Financial Ombudsman Service. If you are not satisfied with our decision or explanation, we would be happy A
to discuss further with you.
How do I make a complaint?
If you wish to complain about the services you have received or the operation of the Fund or the ISA, please contact:
RBS Collective Investment Funds Limited A
PO Box 6795
Brentwood
Essex
CM15 8WA A
Telephone: 0844 892 2502
Customers with hearing and speech impairments can contact us by Minicom: 0800 404 6161
Telephone lines open Monday-Friday 8am – 6pm (excluding bank holidays). Calls may be recorded for training or monitoring purposes.
If you’re not satisfied with our response, you can write directly to the Financial Ombudsman Service at South Quay Plaza, 183 Marsh Wall, London E14 9SR.
Alternatively, call on 0800 023 4567 or 0300 123 9123 (for mobile users)
This doesn’t affect your legal rights.
Your classification
We will treat you as a “retail client” (as defined in the FCA’s Rules) for regulatory purposes. This affords you the highest degree of protection under the UK regulatory system.
You may request to be classified differently. However, if we are able to do this, you will be afforded a lower level of client protection. For more information about the protections
you would lose please contact us.
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Q: How can I see how my investment is performing?
A: We will send you a statement in January and July every year showing transactions throughout the period and a recent valuation of your investment. You can also check
the FTSE® 100 Tracker Fund price in the Financial Times published on a daily basis.
Q: What happens to my investment if I die?
A: If you’ve invested on your own:
We’ll pay the full value of your investment to your Legal Personal Representatives on request, provided we receive the necessary documents and information. It will
form part of your estate and may be subject to Inheritance Tax. We can transfer the shares to another person at the request of your Legal Personal Representatives.
Your investment can no longer be held as an ISA after you die. The money will remain invested until we receive instructions from your Legal Personal Representatives.
If you’ve invested with someone else or other people:
The investment will continue and they will own it. The value of your share of the investment may be subject to Inheritance Tax.
Q: Is my investment protected by any compensation scheme?
A: RBS Collective Investment Funds Limited is a member of the Financial Services Compensation Scheme (FSCS). The Scheme can pay compensation to customers if they are
eligible and a regulated firm is unable to pay claims against it, usually if the company stops trading or is insolvent, as long as the company is registered with the scheme.
Compensation limits apply depending on the type of claim. For investments, the maximum is £50,000 per person i.e. 100% of the first £50,000. Most retail customers (this
includes private individuals and some small businesses) are eligible under this Scheme. For more details, please visit www.fscs.org.uk
Q: Can I change my mind?
A: Yes. You have 14 days from when you receive your welcome letter confirming we have set up your investment to tell us that you have changed your mind, and have your
initial investment returned to you less any fall in the investment value in this period. To do this, please write to us at: PO Box 6795, Brentwood, Essex CM15 8WA.
Q: How do you protect my personal data?
A: Any personal information obtained by us will be processed and protected in accordance with the Data Protection Act 1998. You can obtain copies of the information
we hold about you by writing to: The Chief Operating Officer, SAR Team, Ground Floor, RBS Gogarburn, PO Box 1000, Edinburgh EH12 1HQ. A fee may be payable.
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Before you apply
It’s important that you make the right investment decision to meet your needs. To help you decide if our FTSE® 100 Tracker Fund is right for you, please ensure you have read
the Key Investor Information Document along with this Document. If you’re investing through a Stocks and Shares ISA, please ensure you’ve read the terms and conditions.
Any questions?
T
If there are any more questions you would like to ask or you need help to complete your application, please call us on the number provided below and we’ll do all we can to
help. Please note that we cannot provide investment advice.
How to apply
You can invest directly or through a Stocks and Shares ISA. There are three ways to invest: T
Q By post – you should have received all the forms you need. Please ensure you’ve read through them, check the details and sign and date the relevant form(s). Then return
them in the pre-paid envelope provided.
A
Q By phone – call 0844 892 2502 A
Customers with hearing and speech impairments can contact us by Minicom 0800 404 6161
Our lines are open 8am–8pm Mon–Thurs, 8am–6pm Fri and 9am–5pm Saturdays. Calls may be recorded. A
Q Online – visit https://invest.natwest.com/natwest/ftse/ select the ‘Apply for our FTSE® 100 Tracker Fund online’ and complete the application.
For ISA transfers – please contact our Administration Team on 0844 892 2502
The Authorised Corporate Director (ACD)
The ACD for the ICVC is RBS Collective Investment Funds Limited. The ACD is responsible for all aspects of the administration and management of the funds and pays
any commission. The ACD is authorised and regulated by the Financial Conduct Authority. Financial Services Register number SC46694. The ICVC is authorised by the
Financial Conduct Authority - 25, The North Colonnade, Canary Wharf, London E14 5HS.
The Depositary
The Depositary for RBS Index Tracker Funds ICVC is: BNY Mellon Trust & Depositary (UK) Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London
EC4V 4LA. The Depositary is responsible for the safekeeping of the ICVC’s assets and ensuring that the ICVC is managed in accordance with FCA’s rules.
How to contact us
For copies of the full Prospectus and annual and interim Report and Accounts of the ICVC at no charge, please write to us at:
PO Box 6795
Brentwood
Essex
CM15 8WA
Telephone: 0844 892 2502
Customers with hearing and speech impairments can contact us by Minicom: 0800 404 6161
Telephone lines open Monday-Friday 8am – 6pm (excluding bank holidays). Calls may be recorded for training or monitoring purposes.
T
Y
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®
Terms and Conditions
Please read carefully and retain for future reference. d) We are authorised and regulated by the Financial Conduct Authority
(FCA) in the conduct of Investment business. The ISA Manager is
1. Definitions
approved by HM Revenue & Customs as an ISA Manager under
The words ‘us’,‘we’ or ‘our’ – refer to RBS Collective Investment Funds the Regulations.
Limited and companies employed to act on our behalf.
ACD – means RBS Collective Investment Funds Limited, which is the 3. Index Tracker ISA Investment
Authorised Corporate Director of The Company and The ISA Manager. a) i) The Plan will invest in shares in the FTSE® 100 Tracker Fund which is
a sub-fund of the RBS Index Tracker Funds ICVC, which is an open-
Account – means an individual Savings Account, referred to in the regulations
ended investment company with variable capital. The objective of the
and subscribed to by you as the Plan Holder.
Fund is to ‘track’ the performance of the FTSE® 100 Index.
Business Day – means any day on which we are open for business
ii) The shares in your Plan are accumulation shares. The income
up to 5pm.
received by the Fund less expenses and tax is retained within
Company – the RBS Index Tracker Funds ICVC, an open-ended the Fund.
investment company with variable capital.
iii) All payments to us must be from your own resources and we
Fund – the FTSE ® 100 Tracker Fund. reserve the right to satisfy ourselves of this
FCA – the Financial Conduct Authority. b) If we receive your completed application prior to the tax year to
which it relates, we cannot invest your payment until the start of the
FCA Handbook – FCA Handbook of Rules and Guidance as amended from
tax year you have applied for. In such circumstances we may retain
time to time.
your application and payment pending the start of the new tax year.
Investments – the investments, and cash if any, in the Plan.
c) Payments in respect of regular monthly savings plans will be collected
ISA – means Individual Savings Account. normally on the 1st of each month unless specified otherwise, or if
this is not a Business Day, the next Business Day thereafter.
ISA Manager – means RBS Collective Investment Funds Limited.
Shares in respect of these payments will be bought on the first
Plan – means an individual Savings Account, referred to in the regulations and
Business Day on or after this. We will send individual confirmation
subscribed to by you as the Plan Holder.
of your first investment but not subsequent months. Details of your
Plan Manager – means the ISA Manager. purchases will be shown in your statements.
Prospectus – means the prospectus of The Company as amended from We will continue to collect your monthly savings amount by direct debit
time to time. in accordance with your instructions until:
Regulations – the Individual Savings Account Regulations 1998, i) We receive your instructions to stop; or
as amended from time to time and any other applicable regulations
ii) We are unable to collect your monthly savings amount for three
or statutes.
consecutive months and payments have not recommenced following
Tax Year – 6 April to 5 April the following year. our notification to you.
You and Your – means the investor: the individual named as the applicant
4. Titles and Roles
in the application form.
a) The Plan Manager is RBS Collective Investment Funds Limited,
the Authorised Corporate Director of the Company.
2. Introduction
a) These Terms and Conditions apply to the Index Tracker ISA and form The Depositary is The Bank of New York Trust & Depositary Company
the agreement between you and RBS Collective Investment Funds Limited, One Canada Square, London E14 5AL.
Limited ‘the Agreement’.
The administration of the Company and its sub-funds has been
b) You appoint us to manage your Investment in accordance with the delegated by the ACD to Bank of New York Mellon, whose
Regulations. We may delegate any of our functions or responsibilities business address is BNY Mellon House, Ingrave Road, Brentwood,
under this agreement provided we are satisfied that the person we Essex CM15 8TG. The detailed Prospectus for the Funds is available
delegate to is competent to carry them out. from the Plan Manager on request.
c) RBS Collective Investment Funds Limited is authorised and regulated
5. Cash Held
by the Financial Conduct Authority.
We reserve the right not to treat any cash balances due to you as client
Our activities are subject to the Terms of this Agreement, the FCA
money if they remain unclaimed for a period of over 6 years. We will
Handbook and the Regulations (see Definitions).
continue to accept and process any valid claims against such money
during and after this period.
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a) This Agreement will come into effect on the day on which we receive authority for the transfer before it can take place. We do not make
your correctly completed Application and Declaration Form. Please any charge for the transfer. Your ISA will be transferred to another
note you have 14 days from when you receive your welcome letter ISA Manager on your instructions.
confirming we have opened your account to cancel your investment. b) A transfer of part of your plan to another ISA Manager is only
If you wish to cancel your investment, please write to us at available to you in respect of Investments made in previous tax years
RBS Collective Investment Funds Limited, PO Box 6795, Brentwood, and where the amount to be transferred is £500 or more, and where
Essex CM15 8WA. the amount remaining in each Fund is normally £50.
Please note that the amount returned to you may be less than the
amount invested if there has been a downward movement in the value 10. Full or partial withdrawals (and minimum holdings)
of your shares from the date of investment to the date on which your a) You may withdraw some or all of your Investment at any time by
shares are sold. Your shares will be sold on the next business day after providing us with written instructions to withdraw. Unless you are making
which we receive your written instructions. a full withdrawal, the minimum withdrawal amount is £50. If you are not
withdrawing your total holding in the Fund, the remaining value of your
b) To comply with the Money Laundering Regulations 2007 we may
holding in the Fund after the withdrawal must be at least £50.
require from you further evidence of identity. If appropriate evidence
is not provided when requested this could delay payment to you. b) We will normally sell your shares no later than the next Business Day
following receipt of your request to make a withdrawal. However,
c) On receipt of a correctly completed Application Form, shares paid for
if your request is received after 12 midday your shares will be sold
by cheque will be purchased on the day we receive your cheque or the
on the next following Business day.
following working day if it arrives on a Saturday or after 12 midday;
shares paid for by Direct Debit will be purchased as soon as your bank c) Payment of your withdrawal will be made to you by cheque, and this
has credited us with your first and subsequent payments. Shares will be posted to you within 4 Business Days of the sale of your shares
purchased online before midday will be credited on the same day. subject to our requirements being met.
Shares purchased after midday will be credited by midday the next
These can include having a clear and unambiguous signed request to
working day.
withdraw, proof of your authority to give that instruction and any
We will confirm to you in writing details of the shares purchased when
identification that may be necessary for payment purposes or to
we have set up your Plan.
satisfy anti-money laundering requirements.
d) We will, at our discretion and on your behalf, buy and sell shares in
the FTSE ® 100 Tracker Fund. It is not intended to hold any cash in 11. Closure of the Plan by Us
the Plan. We will be entitled in our absolute discretion to terminate the
e) If for any reason cash cannot be invested immediately, it will either be Agreement at any time on giving you 7 days’ notice in writing. We
returned to you or will be held in a designated client money bank account. may close your Plan if you have a balance of less than £50. We will
Interest will not be paid on cash balances held in such an account. close your Plan if it is, or has become, void under the Regulations and
shall notify you accordingly.
7. Aggregation of deals
12. Process if investor dies
Investments may be managed together with other Investments or
other ISAs managed by us and may be aggregated for transactions. In the event of your death your account will cease to qualify for
Investments within the Plan may be consolidated with other Plans tax exemption under the Regulations from the date of your death.
which we hold for you. On notification of death we will contact your representatives for
instruction and they may decide to hold the investment in their own
8. Transfers in from Other ISA Managers name or repurchase. If they choose to repurchase we will sell the
shares held within your Plan by the end of the next Business Day
a) You may transfer to us Cash ISAs and Stocks and Shares ISAs for the
following receipt by us of the evidence we require to make payment.
current and/or previous tax years that are managed by any ISA
The proceeds will be paid by cheque and this will be posted to your
Manager, provided the value of each ISA being transferred is at least
legal representatives within 4 Business Days of the sale of the shares
£500. Only full transfers can be accepted for the current year.
that were held within your Plan. These Terms and Conditions are
Transfers will only be accepted in the form of payments by cheque
binding on your personal representatives.
from a previous ISA Manager. Once your ISA has been transferred
you will be subject to these terms. 13. What Happens When Your Plan is Closed
b) Any distributions (including tax credits) received from a previous ISA a) If your signed withdrawal or transfer out form is received before
Manager after the transfer of an ISA Investment to the FTSE® 100 12 midday on Monday to Friday we will sell your shares that day
Tracker Fund ISA will be accepted and reinvested in your Plan and send out your payment within 4 working days. If it arrives after
provided that value is at least £10. Any such payments under 12 midday or on a Saturday we will sell your shares on the next
£10 will be returned to the previous ISA Manager for payment working day and send out your payment within 4 working days
directly to you. thereafter. The payment will be net of any deduction required to
cover any of our charges that may remain unpaid.
9. Transfers Out to Other ISA Managers b) If any tax becomes payable or repayable in connection with the Plan
a) You may transfer all of your Plan or part of your Plan (subject to becoming void, we will be entitled to sell investments to pay any tax
clause 8(b) below) to another Stocks and Shares ISA Manager who liability. Closure of a Plan does not affect the completion of
is prepared to accept the transfer. You must provide us with written transactions already started.
notice of your wish to transfer your Plan. Only the cash value of the
Plan can be transferred.
14
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Generated at: Tue Dec 3 10:11:53 2013c) The following will apply in these circumstances: 19. Beneficial Ownership
a) All Investments held under the Plan will be held for you as beneficial
if shares are being purchased, then the Plan will be retained until all
owner. Title to the Investments will be vested in us as Plan Manager.
the outstanding purchases are completed; and
Any document which provides evidence of title to investments will be
if shares are being sold, the original instruction to sell will be held by us or persons appointed by us.
progressed and your Plan will be closed.
b) We will satisfy ourselves that any persons to whom we delegate any of
our functions or responsibilities under this Agreement are competent to
14. Tax carry them out.
a) When you take out an Index Tracker Stocks and Shares ISA you sign
a Declaration that you have no other Stocks and Shares ISA for the 20. Conflicts of interest
same tax year. This Declaration is binding on you. Under current
We are not prevented from providing services under these terms
legislation, investments held within an ISA are not subject to income
because of any conflict of interest or duties which may rise as a result
tax or capital gains tax within the UK.
of us having a material interest in any transaction or any Associate
b) The Plan and these Terms and Conditions are based on our having a material interest.
understanding of current tax law and HM Revenue & Customs practice.
21. Liability
If any changes are made to ISAs or the Regulations, we may have to
a) The value of your Plan may go down as well as up and we accept no
change the Terms and Conditions applying to your Plan in order to
responsibility for the performance of your Plan. We will not be liable for
maintain its tax status. We will notify you in writing if this occurs.
errors of judgement or for any action taken or omitted to be taken by
c) Your signed Application and Declaration Form gives us the authority us unless it is due to wilful default or negligence.
to apply to HM Revenue & Customs to reclaim on your behalf tax
b) These provisions do not affect any duty which we have under the
credits on dividends from investments held within the Plan. This may
Financial Services and Markets Act 2000, the FCA Handbook or
mean that we will conduct appeals against and agree liabilities for
the Regulations.
and reliefs from tax in respect of the Plan. From 6 April 2004 ISA
managers have not been able to claim a tax credit on dividends from
22. Assignment, Transfer or Charge
UK shares held within an ISA. Nor can we reclaim any tax related to
tax credits attaching to foreign income dividends. You must not assign, transfer or charge any beneficial or other
interests in your Plan to any other person, including using your Plan
We will make returns to HM Revenue & Customs, as we are required to as security for a loan.
do by law. You do not need to declare your Plan on your tax return.
23. Company Information and Voting
15. Fees and Charges Please contact us if you wish to receive the interim and final long or
a) Charges may be varied within set limits. You will be notified in writing short report and accounts or any other information issued to
60 days in advance of any changes to these charges. shareholders of the Company, or if you wish to attend or vote at
b) The annual management charge on the Fund will be calculated on a shareholders meetings of the Company.
per day basis and paid each month in arrears.
24. Complaints
16. Dilution Levy Should you ever wish to complain, please write to our Managing
We do not currently charge a dilution levy on investments made Director at the following address:
through our ISA. Any change to this policy would be notified to RBS Collective Investment Funds Limited
investors. We do reserve the right to make such a charge on any PO Box 6795
direct investment into the Company outside of an ISA as detailed Brentwood CM15 8WA
in the Prospectus.
In accordance with FCA’s Regulations a copy of our complaints
17. SDRT procedure is available on request. If your complaint is
not dealt with to your satisfaction you can then complain to the
The company will not pay Stamp Duty Reserve Tax (SDRT) as any
Financial Ombudsman Service (address available on request).
liability is currently met by the Authorised Corporate Director (ACD).
Making a complaint will not prejudice your right to take legal
Any change to this policy would be notified to investors.
proceedings.
18. Pricing
25. Financial Services Compensation Scheme
a) The price of shares is calculated every working day as at 12 midday.
RBS Collective Investment Funds Limited is a member of the Financial
Shares in the Fund are bought and sold at the same price which
Services Compensation Scheme (FSCS). The Scheme can pay
represents the mid-market price of the underlying assets of the Fund.
compensation to customers if they are eligible and a regulated firm is
The price of shares is calculated by taking the total value of assets
unable to pay claims against it, usually if the firm stops trading or is
representing each class of shares of the Fund, less the liabilities
insolvent. Compensation limits apply depending on the type of claim:
attributed to that class and dividing by the number of shares of that
For investments, you are covered for a maximum of £50,000, i.e.
class in issue. This is the net asset value of the share.
100% of first £50,000 per person. Most retail consumers (this includes
b) Prices are quoted daily in the Financial Times. private individuals and some small businesses) are eligible under
the Scheme. For further information on the conditions governing
compensation and details on how to apply please refer to the
FSCS at www.fscs.org.uk
15
90387527.indd 15 03/12/2013 10:01
Generated at: Tue Dec 3 10:11:53 201326. Correspondence c) by giving you 30 days’ prior written notice where we have changed W
a) We will send any notices or other correspondence to the address or introduced new systems, methods of operation, services or
Y
you have given us in your application form, or to a new permanent facilities. Such amendments will only be made if we have satisfied
residential address provided you have notified us in writing of ourselves that the overall effect of the amendments mean that you
the change. receive broadly comparable terms for the ISA under the revised
Terms and Conditions.
b) You should send any notices, instructions, or requests for further
information, to us at: d) without giving notice to you providing we have satisfied ourselves that
the effect of the amendments mean that you receive no less
RBS Collective Investment Funds Limited favourable terms for the ISA under the revised Terms and Conditions. Y
PO Box 6795
Brentwood CM15 8WA 29. Transfer of business by us to another firm
27. Third party rights a) You agree that we may transfer (subject to any necessary regulatory
Nothing in the Terms and Conditions confers or purports to confer on approval) our rights and obligations under this contract to another
any third party any benefit or any right to enforce any term of these company provided we give you no less than 30 days’ prior
Terms and Conditions. written notice.
b) We may appoint another company to be the Plan Manager of
28. Changes to these Terms and Conditions your ISA under these Terms and Conditions having given you one
We may vary these Terms and Conditions; month’s prior written notice. The new Plan Manager must be
a) by giving you 60 days’ prior written notice where we increase approved to act as an ISA Plan Manager by the Commissioners
our charges. This may be required if the cost of managing your of HM Revenue & Customs.
Investment increases.
30. Applicable Law
b) by giving you 30 days’ prior written notice where possible, if for English law governs both the Plan and all our dealings relating to it.
example it is necessary to comply with or anticipate any changes
in applicable laws, rules or regulations, or for example to take into 31. Language
account a ruling by a Court, Ombudsman, regulator or similar body.
This contract is supplied in English. We will continue to communicate
with you in English for the duration of this contract.
16
90387527.indd 16 03/12/2013 10:01
Generated at: Tue Dec 3 10:11:53 2013Who we are Fraud prevention agencies
Your Investment is with RBS Collective Investment Funds Limited. We are a If false or inaccurate information is provided and fraud is identified or
member of The Royal Bank of Scotland Group (the Group). For information suspected, details may be passed to fraud prevention agencies.
about our Group of companies please visit www.rbs.com and click on
Law enforcement agencies may access and use this information. We and
‘About Us’, or for similar enquiries please telephone 0131 556 8555 or
other organisations may also access and use this information to prevent
Minicom 0845 900 5960.
fraud and money laundering, for example when:
How we use your information and who we share it with
– checking applications, and managing credit or other facilities and
Your electronic information recovering debt;
If you contact us electronically, we may collect your electronic identifier – checking insurance proposals and claims;
(e.g. Internet Protocol (IP) address or telephone number), supplied by
– checking details of job applicants and employees.
your service provider. Your information comprises all the details we hold
about you and your transactions, and includes information obtained from We, and other organisations that may access and use information
third parties. recorded by fraud prevention agencies, may do so from other countries.
We may use and share your information with other members of the Group We can provide the names and addresses of the credit reference and fraud
to help us and them: prevention agencies we use if you would like a copy of your information
held by them. Please contact 0845 300 2585 or Minicom 0800 484 6161.
– assess financial and insurance risks;
The agencies may charge a fee.
– recover debt;
Terms of Business
– prevent and detect crime;
The Financial Conduct Authority (FCA) requires firms regulated by it, to
– understand our customers’ requirements; classify customers with whom they intend to transact investment business,
to ensure that the appropriate level of regulatory protection is provided.
– develop and test products and services.
We will treat all our customers as retail clients with the aim of ensuring
We do not disclose your information to anyone outside the Group except: that everyone receives the highest level of protection possible.
– where we have your permission; or The Bank will, where necessary, contact you by telephone between the
hours of 9.00am–9.00pm (Monday to Saturday). Calls will only be made
– where we are required or permitted to do so by law; or
outside this time with your prior consent. You will be deemed to have
– to credit reference and fraud prevention agencies and other companies accepted these Terms of Business once you have received this document.
that provide a service to us or you; or
– where we may transfer rights and obligations under this agreement.
We may disclose your information to government entities or regulatory
bodies in order that those entities may discharge their responsibilities and
obligations or exercise their powers or functions.
We may transfer your information to other countries on the basis that
anyone to whom we pass it provides an adequate level of protection.
However, such information may be accessed by law enforcement agencies
and other authorities to prevent and detect crime and comply with legal
obligations.
From time to time we may change the way we use your information.
Where we believe you may not reasonably expect such a change we shall
write to you. If you do not object to the change within 60 days, you
consent to that change.
If you would like a copy of the information we hold about you, please write
to: The Chief Operating Office, SAR Team, Ground Floor, RBS Gogarburn,
PO Box 1000, Edinburgh EH12 1HQ. A fee may be payable.
17
90387527.indd 17 03/12/2013 10:01
Generated at: Tue Dec 3 10:11:53 2013T
T
I
K
S
F
RBS Collective Investment Funds Limited. Registered in Scotland No. SC46694. Registered Office: 24-25 St Andrew Square, Edinburgh EH2 2YB.
Authorised and regulated by the Financial Conduct Authority. Financial Services Register Number 122139.
NWB6821 December 2013
90387527.indd 12 03/12/2013 10:01
Generated at: Tue Dec 3 10:11:53 2013You can also read
