20. Additional Terms for ISA Accounts
This Agreement shall apply to ISA Accounts held by Enigma Strategy. In addition, the following terms shall apply and if there is any conflict between such terms, the following shall take precedence:
20.1 Eligibility
(a) To subscribe to an ISA, ("The Account") You must be aged 18 or over and be resident or ordinarily resident for tax purposes in the United Kingdom or be a non-resident Crown employee or spouse.
(b) For these purposes the United Kingdom excludes The Channel Islands and the Isle of Man.
(c) Application must be made in your name only. You cannot apply for a Joint Account.
(d) You shall promptly notify Enigma Strategy in writing of any change of address or in United Kingdom taxation status which may render you ineligible to subscribe further to the Account. You shall inform Enigma Strategy immediately if you cease to be a UK resident for tax purposes, or if being a non-resident you cease to qualify as a Crown employee.
(e) Investments eligible for inclusion in the Self Select ISA are restricted to those deemed Qualifying Investments by Her Majesty's Revenue & Customs ("HMRC") but exclude those investments listed below in 20.1.
(f) Investments that are ineligible for the ISA include Unit Trusts, OEIC's, UCITS, Life Assurance, certain Gilts, Cash Mini ISA's and other non-qualifying investments as prescribed by relevant regulations.
(g) Provided that your application is approved by Enigma Strategy, your Account will open upon receipt by Enigma Strategy of a duly completed application together with payment of your initial subscription.
(h) Your Account will cover the current tax year and remain open for subsequent tax years in which the CUSTODIAN receives a subscription from you, subject to any changes in legislation.
(i) Your National Insurance Number and Date of Birth (DOB) must be quoted on your application form.
(j) You may subscribe up to the allowable limit in each tax year, but the limit is subject to legislative change.
(k) Enigma Strategy will notify you if for any reason you fail to satisfy the ISA Regulations and that an Account has, or will, become void. Enigma Strategy will not be responsible or liable for any loss that occurs should termination of an account be required.
(l) Investments to your Account must either comprise cash subscriptions, transferred cash or Qualifying Investments in which Enigma Strategy deals. It is your responsibility to determine whether any investments you wish to transfer to your Account meet these criteria.
(m) If a non-qualifying investment is bought by on or behalf of the Account, Enigma Strategy shall be entitled to transfer it (without notice) to Your General Investment Account. Such transfer will be treated as a withdrawal from the Account.
20.2 Appointment
(a) Interactive Brokers as the "Plan Manager(s)" for the Self-Select ISA and are authorised by the Inland Revenue as Managers of ISAs under the Individual Savings Account Regulations 1998 (Statutory Instrument 1998 Number 1870).
(b) Interactive Brokers (IB) will provide Account management and administration in accordance with the Rules and Regulations (as defined below) and otherwise as set out in this Agreement.
20.3 Beneficial Ownership - if you wish to benefit from the tax advantages of an ISA, you must remain the beneficial owner of the investments held in your Account.
20.4 Cash (a) Account money committed for investment in an ISA will be held separately from monies in a General Investment Account. (b) All cheques must be made payable to the Interactive brokers client account (IB). (c) All cash received in your ISA including subscriptions, monies pending investment, any balance of uninvested cash, cash resulting from the transfer in of an ISA, income payments, dividends, tax repayment or the proceeds of the sale of Qualifying Investments will be held in a designated client account by IB in accordance with the FCA Rules. (d) IB will only retain cash within your ISA for the purpose of applying it on your behalf to purchase your chosen Qualifying Investments. (e) IB reserve the right to transfer any cash held for more than a period of twelve months, and which has not been reinvested, to your General Investment Account. This may be done at the shorter notice on the instruction of the Plan Manager or other lawful authority.
20.5 Transfers (a) You may apply to transfer either the whole of an existing current years ISA to IB, or the whole of your previous years' ISAs, in accordance with the ISA Regulations. Your application to transfer an ISA will need to be made in conjunction with an application to open an ISA through us. (b) If you wish to transfer your ISA out to a new ISA Manager, the transfer of the account must be made in full. We do not allow a partial transfer out. (c) As Enigma Strategy will not be able to execute your orders whilst a transfer of investments is taking place, Enigma Strategy will not be responsible for any loss of income or capital growth during such period. (d) We will transfer your Qualifying Investments to a different ISA plan manager within 30 days of receiving written instructions to that effect, but provided that all fees and charges have been paid in full. (e) You shall be entitled to transfer your full ISA or make withdrawals without restriction. (f) At your request, the Account and all rights and obligations of the parties hereto may be transferred to another account manager by you giving notice in writing to us and by the new plan manager accepting the account. Written confirmation is required by the Plan Managers accepting the Account.
20.6 Investments (a) You authorise the Plan Manager to recover from the HMRC such tax credits on dividends that are reclaimable for the credit of the Account. (b) All investments acquired on your behalf will be subject to Enigma Strategy’s approval. However, if an investment is made by Enigma Strategy, in accordance with your instructions, which is subsequently found to be non-qualifying, HMRC may require the money or investment to be removed from your Account and any losses or profits will be for your Account. (c) Bonus issues of shares or units received can be retained in your plan so long as they are Qualifying Investments. (d) In the event of a takeover offer or redemption of securities held within your Account, Enigma Strategy will elect to receive the proceeds, in cash (if that option is available), into your account, converting non-Sterling proceeds into Sterling where appropriate.
20.7 Custody (a) Dividends, interest payments and cash entitlements received in a currency other than Sterling will be converted to sterling as soon as reasonably practicable. We shall be entitled to charge you any foreign currency costs. The exchange rate used will be the appropriate prevailing commercial rate available from the CUSTODIAN’S bankers. The CUSTODIANS will round down to the nearest pound all converted dividends, interest payments and cash entitlements and shall be entitled to retain any amounts arising out of this rounding process for their own account. (b) Dividends, interest payments and cash entitlements due to you will be paid promptly to your Account. (c) You hereby authorise the CUSTODIANS to arrange on your behalf in respect of CREST and to enter into any arrangement it considers to be necessary to facilitate the clearing of settlement of your transactions through CREST.
20.8 Charges and Expenses (a) You will pay to us the advertised annual fee on our Rate Card / Account Application document for your ISA Account in advance as becomes due each year and at the outset of application for an ISA Account.
(b) Your annual fee will be debited automatically from your Dealing Account. (c) All Account administration charges, but not commission and related bargain charges, will be deducted from the General Investment Account.
(d) We may sell part or all your holdings to cover any outstanding fees, charges or commission on your Account at our discretion.
(e) Should you wish to receive annual reports and accounts, attend company annual or extraordinary general meetings, or exercise voting rights in respect of shares, securities or units which are held directly in the ISA, you should contact us on each occurrence to request this. An administration fee may be levied for these services. (f) Any interest paid on ISAs will be subject to a non-reclaimable flat rate charge imposed by HM Revenue & Customs, which we will collect and send to HM Revenue & Customs. The Self Select ISA does not meet the Governments CAT (charges, access and terms) standards.
20.9 Liability (a) The Plan Manager shall not be responsible for any loss or damage or depreciation in value of the Account or for its failure to produce a return on capital invested whatsoever arising except insofar as the loss, damage or depreciation results directly from the fraud or willful default or neglect of the Account Manager or by reason of breach of any of the Rules or Applicable Regulations.
(b) You acknowledge that the value of, and income from, any investment in the Market may fall as well as rise and you may not get back the amount originally invested. (c) You also acknowledge that we have not given any advice as to the suitability of this investment service for you. You should consult an Independent Financial Advisor if you have any doubt that this investment service may not be suitable for you.
20.10 Subscriptions, Withdrawals, Terminations and Transfers
(a) Subscriptions may be made at any time to your Account subject to the maximum annual subscription permitted by the Rules and Regulations (as defined below). (b) Transfers to us must be from an ISA registered in your name.
(c) Subject to the HMRC Rules and Regulations, ("Rules and Regulations") the settlement of outstanding investment transaction(s), and any tax liabilities, charges and expenses, you may transfer your ISA or withdraw part or all of the investments in your Account at any time by giving us written instructions. Such transfer or withdrawal will take place as soon as reasonably practicable.
(d) In the event of a withdrawal transfer of your Account any annual charges paid to us will not be repaid to you whether in whole or in part.
(e) You shall be entitled to transfer your full ISA or make withdrawals without restriction.
(f) Without prejudice to any other term of this Agreement you or we may terminate this Agreement without penalty or in the event that the IB or IX cease or intend to cease to be Plan Manager by giving written notice of not less than 30 days to the other party whereupon (and subject to payment for outstanding transactions, accrued fees and expenses and for sums due under the Regulations) we shall forthwith transfer or procure the transfer of the Account's investments to you or at your direction.
(g) We may at our discretion complete any transactions commenced prior to receipt of a notice.
(h) We shall notify you if by reason of failure to comply with the Rules and Regulations the Account has or will become void.
(i) Partial sales of stock or withdrawals will be deemed to be capital for taxation purposes.
(j) In the event you wish to close your ISA, any interest accumulated during that quarter will not be calculated nor applied to the Account before Account closure. (k) We offer no advice in respect of the Qualifying Investments you purchase within your ISA.
(l) Where you subscribe to an ISA component in more than one tax year, each year's subscription will be merged together as one portfolio.
(m) Where a subscription or payment is made by a debit card and we do not receive the funds from the Debit card provider, we may sell investments from your portfolio to meet any costs incurred.
(n) Cancellation and Withdrawal of your ISA application will be permitted within the first 14 days after successfully applying for an ISA with us. If you cancel without making a subscription to your ISA, the Inland Revenue Rules and Regulations permit you to retain an ISA subscription for the current tax year.
(o) If you subscribe by transferring funds or assets into the ISA or transfer an existing ISA into your new ISA with us, you will be deemed by the Inland Revenue to have invested in the ISA for that tax year. If you cancel your ISA and do not transfer it to another provider, you will lose your ISA subscription for that tax year.
(p) We will refund the Annual Management Charge (if applicable) upon cancellation of an ISA within the initial 14 days if no transfer or subscription has been received and will not charge an exit fee.
(q) Termination of an ISA after the initial 14 days will be charged at the applicable rate of charges as described in Commission Rate and Charges set out in the Enigma Strategy Terms of Business and may mean your right to invest into an ISA in that tax year will be lost. (r) The effect of cancelling may have the effect of cancelling the entire ISA agreement and may also (where it is the case) delay you from entering into another ISA agreement until next year.
20.11 Should you die your account will cease to be exempt from tax, and the assets will be held with the CUSTODIAN in conjunction with Enigma Strategy awaiting instruction from your personal representatives, who may direct that the assets be sold or that the assets be registered in the names of the appropriate beneficiaries, subject to any restrictions relating to minimum holdings. We will comply with the reasonable requests of your personal representatives provided that such requests comply with the Rules and Regulations. Prior to any transfer that may result following your death, we shall be entitled to deduct all amounts owing in respect of Transactions, accrued fees and expenses and sums owing under the Rules and Regulations and we shall be allowed to sell investments in the Account to raise any amount owing.
20.12 Records of Your Account: The Plan Manager shall make such returns to HMRC for the purposes of taxation as they are required to do by HMRC, and provide all taxation details to you, as may be required under the Rules and Regulations.
20.13 Assignment Subject to the Rules and Regulations, we may assign this Agreement and/or appoint another company to be the Manager of your Account under this Agreement on giving you one month's notice. The party to who we assign this Agreement and/or the new Manager of your Account must be approved to act as an ISA manager by HMRC.
20.14 General: We reserve the right to refuse any application to subscribe to an ISA or open an Account without giving a reason for so doing.