TERMS OF BUSINESS - Automated Advice

These Terms of Business are issued by Generation Financial Services Ltd
Telephone: 0203 728 7900

Email: office@generationfs.co.uk

Regulated by The Financial Conduct Authority FCA Number 498748

It is essential that you read and understand these Terms & Conditions prior to applying for our services. Your use of our services will confirm your acceptance of these Terms & Conditions. This information is the basis upon which we will conduct business with you an on your behalf. It is important information and we would ask you to read it carefully and if you are unsure of any of the terms please ask.

These Terms of Business are subject to change due to changes in regulations and changes in working practices. You are advised to always refer to our latest terms of business which are available when you log in to your Personal Finance Portal.

Our Services:

This Automated Advice service is provided on a ‘Restricted’ basis meaning that it is restricted to ISAs and GIAs. They are provided by Cofunds using our recommended Investment Provider, 7IM. It is provided for people who wish to ‘self-serve’ and who have decided that they do not want a full advice service. It is provided at a low cost but cost alone should not be the determinant of how you invest your money. If you have any doubt that you are making the correct decisions or you have any doubts whatsoever you should stop the process immediately and contact us to arrange a full advice meeting.

If now or at any time in the future you would like to engage in our full financial advice service please read and download our terms of business and fee schedule for our full service from our website at www.generationfs.co.uk.

How we are remunerated:

On this Automated Advice Portal we charge no initial fee when you make your investments. We charge an annual on-going fee of 0.4% of your fund value. This fee is our charge to cover the ongoing provision and development of this service and contains a very small profit element to make it worthwhile.

Example of On-Going Fee:

Adviser Fee – 0.40%

Administration/Technology – 0.08%

Total 0.48%

Therefore, and as an example, if your total portfolio was worth £10,000, this would equate to £48.00

Changing your mind

Should you wish to cancel your investment, you must inform Cofunds in writing within 14 days of receipt of your confirmation notice. Please your cancellation requests to:

Cofunds, PO Box 1103, Chelmsford, CM99 2XY

Provided you cancel within the 14-day period, your cash, any on-going adviser charges and any Cofunds Platform charge will be returned to you - subject to the conditions below:

Please note:

  • If the value of your chosen investment falls between the date your subscription was invested and the date Cofunds receives your instruction to cancel, you may not receive a full refund of the amount you invested
  • If the value of your chosen investment rises between the two dates, you will only receive back the amount invested

Before sending you your money, Cofunds may need to carry out additional security checks and ensure all payments have been cleared, which may delay payment to you.

Withdrawing after 14 days

You will not be able to cancel outside the 14-day period. If you wish to withdraw after this period then all fund management charges will apply and there may be a potential tax liability applied to your investments.

Client Classification:

The type of client category will determine the levels of protection afforded to you under the Financial Services Compensation Scheme, as established by the Services and Market Act 2000.

You will be classified as a Retail Client under the FCA rules which means the regulatory protection available to you will be the highest available. This agreement is personal to you and not assignable. We may accept instructions from and give information to third parties on your behalf where you have confirmed in writing we may do so. We cannot accept any responsibility for errors in information supplied by such persons.

How we act for you:

The company will exercise due care and diligence in conducting their business, but will not be liable for any depreciation of investments arranged by them or though the automated advice service.

By engaging in the Automated Advice service you are agreeing and understanding that our service is limited to what is available online only. There will be no direct contact or other advice. If you contact our office we will only agree to act for you or advise you if you: switch to our full advice service, you agree to our full advice fee schedule, and we exchange a signed full service client agreement.

Foreign Account Tax Compliance Act (FATCA)

The Foreign Account Tax Compliance Act (FATCA) requires US persons holding an interest in any specified foreign financial assets with an aggregate value exceeding $50,000 to report related information to the IRS.

It is your responsibility to inform us if you: -

  • Have US citizenship or lawful permanent resident (green card) status
  • Born in the US
  • Have a US residence address or US correspondence address (including a US PO box)
  • Standing instructions to transfer funds to an account maintained in the United States or directions regularly received from a US address
  • Have a ‘in care of’ address or a ‘hold mail’ address that is the sole address with respect to the client;
  • Have a power of attorney or signatory authority granted to a person with a US address

Please note that we are not responsible in any way for any reporting obligations that you may have in relation to FATCA. We may also share your FATCA status with other Financial Institutions, HMRC and/or the IRS if requested.

Investment Risk

All investments carry a degree of financial risk which will tend to increase in proportion to the potential rate of return on the investments. Any product which is directly or indirectly invested in assets which may fall in value (for example equities) may itself fall in value along with any decrease in value of those assets. Before entering into any investment agreement, you must ensure that you understand the risk associated with the product and are content to accept that level of risk.

Investments can go down in value as well as up and you could get back less than you invest. The past is not a guide to future performance.

We do not handle client monies:

Regular premiums or lump sum investment monies can only be made payable directly to the product provider. No premiums or investment monies of any kind should be paid or made payable to anyone else.

For this Automated Advice service payments can only be made via World Pay or other similar payment service. Another payment service may be used in the future in substitution and without notice.

Contact:

The amount of contact that we provide to you will be limited to our regular newsletters which are sent via email or to regular contacts via the Personal Finance Portal. You are of course free to unsubscribe and stop these communications at any time.

Termination of this agreement:

You are free to terminate this arrangement and withdraw or transfer your investments at any time. Our ongoing fees will be due to the date of withdrawal or transfer but will cease immediately afterwards.

Delay in Processing:

The company will not be held responsible for any delay beyond its control, or as a result of a failure by any party (including the client) to complete all the necessary steps to process a transaction.

Money Laundering:

We are obliged to conform with the UK Money Laundering Regulations and to the Joint Money Laundering Steering Group guidance notes. These regulations require all financial institutions to verify the identity and place of residence for each beneficial owner. In order to meet these requirements, the online verification system will check your identity against data held by the data reference agencies and will obtain proof of where monies are coming from. If you provide false or inaccurate documentation and fraud or money laundering is suspected then this will be recorded and reported.

A third party or third parties will be contacted in order to verify the identity of a client, or any other person providing funds on behalf of an investment made in the client's name. This electronic money laundering check will leave a ‘soft footprint’. This means that there will be no impact on an individual’s credit file and would not be seen by any company conducting a credit check on you. You must stop the process if you do not wish this check to take place’.

Where further information is required, to verify identity, there may be a delay in your applications or settlement may be withheld until sufficient identification has been provided.

Complaints:

We have a written policy for handling complaints and how we ensure we deal with each complaint promptly and fairly. You can obtain a summary from us should you so request. Should you have cause to complain for any reason a copy of our policy for handling of complaints will be automatically sent to you. Please direct your complaint to the Compliance Manager at the company address. Clients should be aware that if they are unhappy with any response to a complaint received from the company, they may complain directly to the Financial Ombudsman Service who will then assess whether they have an eligible complaint before proceeding with an investigation. For further information on the Financial Ombudsman Service please refer to their website, www.financial-ombudsman.org.uk.

Compensation:

If you are an eligible claimant under the rules of the Financial Conduct Authority, you will also be protected by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if we cannot meet our obligations. Compensation is provided for the first £50,000 of any claim in full for investment advice, so the maximum compensation from this scheme would be £50,000 per individual per defaulting firm. Further information about compensation arrangements is available from the Financial Services Compensation Scheme at www.fscs.org.uk. The Financial Services Compensation Scheme may also provide awards if any third party institution we may use is declared in default or insolvent.

Law:

These Terms of Business are governed and shall be construed in accordance with English law and the parties shall submit to the exclusive jurisdiction of the English Courts.

Data Protection:

We are registered under the Data Protection Act 1998. You acknowledge and understand that we keep personal and financial information with regard to your circumstances on file (electronic and/or paper based) as required to be able to advise you as to your financial planning needs. We confirm this information will not be used or transferred to any other firm, company, entity or person, with the exception of the provider, without your consent or as may be required by law. We may also provide information to the FCA upon request.

We cannot be held responsible for the information held on your file being inaccurate due to you failing to inform us of a change of circumstances.

Where business services are provided to us by third parties then circumstances may arise which warrant the disclosure of more than just your basic contact details. On these occasions such as processing business, and obtaining compliance and regulatory advice you agree personal information held by us may be disclosed on a confidential basis, and in accordance with the Data Protection Act 1998, to such third parties.

You agree this information may be transferred electronically, e.g. email. You also agree we may or any such third party may contact you in the future by any means of communication which we or they consider appropriate at the time.

We keep records of our business transactions with you for at least the time required by legislation.

We are required to verify your identity in accordance with the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007. We reserve the right to approach third parties and to delay any of your applications until adequate verification of identity has been obtained.

Regulation:

Our firm is regulated by the Financial Conduct Authority: please feel free to check the Financial Services Register – our Number is 498748– which you can access at www.fca.org.uk/firms/systems-reporting/register or by telephoning (+44) 20 7066 1000