RETAIL CLIENT AGREEMENT
1 “LAfinancial”
is a trading name of Southern Financial Services Ltd, of Russell House,
2 We
advise on and arrange life assurance policies, unit trusts, Individual Savings
Accounts, endowment policies, pension contracts, non-investment insurance
contracts and regulated and non-regulated mortgages.
3 We
also give advice on and arrange products which are not regulated under the
Financial Services and Markets Act 2000. In this instance separate terms apply
for such business. THERE MAY NOT BE A COMPENSATION SCHEME IN FORCE FOR THESE
PRODUCTS.
4 Southern
Financial Services Ltd is partly owned by the equity partners of Lester
Aldridge LLP, Russell House,
5 We
offer independent financial advice.
If we do have some form of interest in any business that we are
transacting for you, or we are aware that another of our clients has such an
interest, we will advise you in writing and obtain your consent before carrying
out your instructions. We will also detail the steps we will take in order to
ensure fair treatment.
6 In
providing advice to you we will either act as a data controller or as a data
processor appointed by you. Where
we act as a data controller we will comply with the provisions of the Data
Protection Act 1988. Where we act
as a data processor we will take such security measures as are required to
ensure that we process that data in compliance with obligations equivalent to
those imposed on you by the Seventh Principle of that Act. We may allow representatives of our
compliance advisers, our auditors, the FSA or other statutory body, access to
your records for regulatory or compliance purposes only.
7 Upon
payment of a fee, you have the right under the Data Protection Act 1998 to
obtain a copy of the personal information we hold about you. If you believe that any of the
information we hold about you is incorrect or incomplete, you should tell us
immediately and we will then amend that information without delay.
8 Any
failure on your part to tell us that information we hold about you is either incorrect
or incomplete may mean that the advice we give you may not always be the most
suitable for your needs, The personal information you give us may be maintained
on a computer but will not be shared with other parties except in accordance
with paragraph 6 and in pursuance of obtaining investments and mortgage finance
as instructed by you. Not all
information requested may be necessary for the purpose of the products being
recommended but may be useful in advising clients on financial matters
generally.
9 Although
we will be glad to advise you at any time should you ask us to do so, we will
not offer any further advice in connection with any investment we have arranged
for you unless you specifically request our help We will confirm at that time
whether a fee will be chargeable for that help. However, at our discretion and
unless we hear from you to the contrary we may telephone you from time to time
between the hours of 9 am to 9 pm without your further prior consent to such
contact.
10 In
order to avoid any possible misunderstandings, we normally require our clients
to give us their instructions in writing. We may, however, at our sole
discretion, act upon your oral instructions. You, or we, may terminate an authority
to act on your behalf at any time, without penalty and without prejudice to the
completion of any transactions initiated prior to the receipt of such
notice. Notice of this termination
must be given in writing and will take effect from the date of receipt.
Termination is without prejudice to any transactions already initiated that
will be completed according to these Terms of Business unless otherwise agreed
in writing. You will be liable to pay for any transactions made prior to
termination and any fees that may be outstanding. Other than as stated in this
paragraph, there are no cancellation rights that apply to this Retail Client
Agreement.
11 In
most circumstances, we will provide you with a document to explain the
“cost of our services” known as our “Services and Costs
Disclosure Document”. Where appropriate we will also discuss the payment
of fees and should this service be required, we will ask you to sign a fee
agreement before we commence any chargeable work. We shall tell you the amount
of commission payable to us on any contract arranged. Additional costs, such as
imposed taxes, may also be payable. Such costs will normally be required to be
settled with the relevant body directly.
12 We
may charge you a fee for arranging mortgage finance in accordance with a
separate fee agreement. This fee is normally a maximum of 1% of the mortgage,
but in exceptional circumstances a higher fee may be charged. If a fee is
required, we will agree the fee with you before we carry out any chargeable
work. If we arrange for you to take out a life assurance policy, this fee may
be reduced, because we will receive commission from a life assurance company,
or friendly society. IF YOU SUBSEQUENTLY CEASE TO PAY PREMIUMS ON THE POLICY,
and in consequence we are obliged to refund all or part of the commission that
had been paid to us WE RESERVE THE RIGHT TO CHARGE YOU A FEE. If we recommend
to you any policy to which this paragraph applies, we will at the same time inform
you in writing, by way of a separate fee agreement, the maximum amount of any
such fee and of the latest time at which we would charge it.
13 If
we receive commission or any other form of benefit from the issuer of a
security or from another Intermediary, we will inform you, but will not tell
you its amount unless you ask us to do so.
14 Where
we receive commission from a product provider on a level or single premium
costed basis for regular premium contracts and, providing premiums are
maintained, either continuously or irregularly, we will be entitled to the
commission from that provider on the initial investment, and any increases made
through our agency, for a period of not less than 5 premium paid years from the
date of the policy or increase.
15 WE
DO NOT HANDLE CLIENTS’ MONEY and as such we act as your agent in advising
you and arranging investment contracts. All investments will be registered in
your name. We never own the
investments, which you purchase through us, and we never handle money on your
behalf, in respect of these investments.
Your policy documents relating to the investment will be forwarded to
you or your solicitor as soon as practicable. Where a number of documents are involved
we will normally wait for the arrival of them all before forwarding them.
16 The
Contract (Rights of Third Parties) Act 1999 shall not apply to this Terms of
Business. English law will be the basis of this contract and the language in
which this contract will be interpreted. All communications conducted will be
in English.
17 The
Proceeds of Crime Act 2002 (POCA) and the Money Laundering Regulations 2007
require that we obtain evidence of your identity as soon as is reasonably
practical. Accordingly you will be
asked to supply us with certain documentation before we can act for you.
18 If
we have reason to believe that any transaction is suspicious in its nature, the
POCA and Money Laundering Regulations require us to report the details of the
transaction to the Serious Organised Crime Agency. This includes evidence or
suspicion of tax evasion. We are prohibited by the law on “tipping
off” from notifying any client in respect of whom a report has been made
and our obligations may cause us to take the decision that we must stop acting
for you. If in the course of complying with our statutory money laundering
obligations we take a decision in good faith to make such a report and our
decision is subsequently shown to be unfounded, we will not be liable to you
for any direct or consequential losses arising from our decision.
19 If
you have any complaint about the advice you receive or a product you have
bought, please write to The Compliance Manager, LAfinancial, Russell House,
Oxford Road, Bournemouth, BH8 8EX. Tel: 01202 786199. Following that, in the unlikely event
that we are unable to settle a complaint, you may be able to refer it to the
Financial Ombudsman Service (FOS).
20 If
you make a valid claim against us in respect of the investments we arrange for
you and we are unable to meet our liabilities in full, you may be entitled to
redress from the Financial Services Compensation Scheme. Details of the cover provided by the
Scheme are provided in a leaflet, which we will send to you at your request.
Further information is available from the Financial Services Authority and the
Financial Services Compensation Scheme.
21 All
cheques, documents of title etc., may be sent by post to the client’s
last known address and shall be sent at the client’s own risk. The Recorded Delivery service will not
normally be used.
03/12/2008