Terms of Business

Contents

About Wells Gibson, Our Service & Charges Page

  1. Who we are

  2. Law

  3. Services we provide

  4. Statement of independence

  5. Products we offer

  6. Existing financial and retail investment products (pensions & investments)

  7. Ongoing financial planning, advice, recommendations & intermediation

  8. Investment Policy Committee

  9. Rebalancing 

  10. Our charges

  11. VAT and our services

  12. Commission from an insurance product

Our Obligations

  1. Anti-money laundering

  2. Client classification

  3. Conflicts of interests

  4. Communications

  5. Distance marketing directive

  6. Risk warnings

  7. Best execution

  8. Record keeping

  9. Data protection

  10. Force majeure

  11. Client money

Your Responsibilities & Rights

  1. Provision of personal information

  2. Your insurance responsibilities

  3. Right to cancel a financial product or investment

  4. Complaints and redress

  5. Compensation limits

About Wells Gibson, Our Service & Charges

  1. Who we are

Wells Gibson is a trading style of Wells Gibson Limited which is authorised and regulated by the Financial Conduct Authority (“FCA”). FRN: 731027. You can check this on the FCA’s register at https://register.fca.org.uk or by contacting the FCA on 0800 111 6768. The FCA is the independent watchdog that regulates financial services in the UK and their address is 25 North Colonnade, Canary Wharf, London, E14 5HS.

This Terms of Business may be terminated by you or Wells Gibson at any time and without penalty. Notice of this termination must be given in writing and will take effect immediately upon receipt of the notice. Termination will not prejudice the completion of transactions already initiated on your behalf or any rights or obligations already arising.

  1. Law

This Terms of Business is governed and shall be construed in accordance with Scottish Law and the parties shall submit to the exclusive jurisdiction of the Scottish Courts.

  1. Services we provide

Wealth Planning for private clients and their families; and Investment Management for trustees.

  1. Statement of independence

Wells Gibson provides an ‘independent’ investment advice service which means we provide unbiased and unrestricted advice based on a sufficient range of retail investment products, instruments and structured deposits.

  1. Products do we offer

All our services are expected to result in the recommendation and arrangement / intermediation of a financial product(s) and / or investment(s) as follows:

    1. Insurance:

We offer products from a range of insurers in respect of income protection, life assurance, critical illness and whole of life. We will advise and make a recommendation for you after we have assessed your needs.

    1. Investment:

Please refer to section 4, ‘Statement of independence’ as above. We will advise and make a recommendation for you after we have assessed your needs.

Please note that some tax, education expenses and Inheritance Tax (“IHT”) planning solutions are not regulated by the Financial Conduct Authority. Where we are unable to make definitive tax assessments we will say so. In thise circumstances it is your responsibility to obtain the relevant expert tax advice.

  1. Existing financial and retail investment products (pensions & investments)

In certain circumstances, Wells Gibson will require you to sign a ‘Transfer of Servicing Request’ which:

  • Ensures that ‘servicing rights’ can be established and maintained in respect of financial and retail investment products which have been arranged by other advisory companies; and

  • Allows companies to provide Wells Gibson with detailed information so that a comprehensive analysis of your financial position can be conducted and the suitability of any financial or retail investment product(s) can be properly assessed on an annual basis.

Importantly, before a Transfer of Servicing Request is signed by you, Wells Gibson will confirm and agree the type of service which is to be provided, including all relevant charges.

Once servicing rights for a financial or retail investment product(s) have been established, it is possible for any income (commonly referred to as trail commission), to continue to be paid to Wells Gibson however we will not receive any income from a financial or retail investment product without prior agreement from you.

  1. Ongoing financial planning, advice, recommendations and intermediation

Ongoing financial planning, advice, recommendations and intermediation are provided as part of our two core services, Wealth Planning and Investment Management. A major element of this service will be to continually assess the ongoing suitability of previous recommendations.

Progress Meetings are at least annually and can be held face to face, telephone or via video e.g. Skype.

  1. Investment Policy Committee

To ensure we continue to provide a robust investment strategy, we have an investment policy committee. We meet at least annually to review and consider the following broad range of retail investment products:

  • Packaged products i.e. Exchange Traded Trusts (ETFs); Open Ended Investment Companies (OEICs); and Unit Trusts;

  • Investment Trusts;

  • Structured Investment Products and Deposits;

  • Discretionary Fund Management; and

  • Unregulated Collective Investment Schemes (UCIS).

  1. Rebalancing

Rebalancing is the process of re-establishing your investment to its target and originally agreed asset allocation. This means selling over-weighted asset-classes in your portfolio to buy under-weighted asset-classes. Rebalancing also ensures that the proportion of your investment which is allocated to cash is sufficient to meet our on-going Adviser Charge and the Wrap product charge. Although we recommend your investment(s) is / are rebalanced annually, as we provide advisory services (as opposed to discretionary management), we will not rebalance your investment without first consulting with you and obtaining your agreement.

  1. Our charges

Our charges are dependent on the nature and the complexity of the work being carried out. All our charges will be confirmed in writing and agreed with you in advance of any work being carried out or any planning, advice and recommendations taking place. We will also inform you if VAT is payable.

For an investment of £500,000, the typical initial charges are as follows:

Wells Gibson

Platform

Portfolio

Total

1.00%

£5,000

0.05%

£250

0.00%

£0

1.05%

£5,250

For an investment of £500,000, the typical annual charges are as follows:

Wells Gibson

Platform

Portfolio

Total

1.00%

£5,000

0.30%

£1,500

0.40%

£2,000

1.70%

£8,500

** The portfolio charge assumes the recommended portfolio invests 60% in higher-risk, growth assets (e.g. equities / shares).

  1. VAT and our services

Under Article 135 (1) of the VAT directive intermediary services are exempt as ‘negotiation’. Our role will normally involve us entering into arrangements with you, under which we will:

  • Obtain information about you;

  • Conduct research to find suitable investment options;

  • Provide you with reports, forecasts etc;

  • Recommend specific investment solution(s) to you, including the prices at which these can be arranged;

  • Act between the product provider(s) and you with a view to arranging Retail Investment Product(s) as agreed with you; and

  • Where we provide an ongoing review service (Progress Meetings), monitor your ongoing position to ensure that the products continue to meet your requirements.

Where you seek the arrangement of Financial or Retail Investment Product(s) and we perform the arrangements as outlined above, (regardless of whether the arrangement of the product(s) is finally concluded); and providing we are able to evidence that we have done so, the services in the above stages, will be VAT exempt. Consequently, the services we provide will generally be exempt from VAT.

  1. Commission from an insurance product

In the event that initial commission is available from the product provider of an insurance product (e.g. life assurance, critical illness, income protection), our default position is to arrange the product on a nil-commission basis in order to reduce the product charges and/or regular premiums. However, in certain circumstances, and where appropriate, we may agree to:

  • Offset the commission against our intermediation / plan implementation charge(s); or

  • Have the commission refunded (in certain circumstances); or

  • Act for you on a commission basis.

However, please note that (where product provider commission forms all or part of our agreed remuneration) if the insurance product is subsequently cancelled or lapses and commission is reclaimed by the product provider, we reserve the right to seek reimbursement from you. We will not seek reimbursement if an insurance product is cancelled within the cooling-off period.

Our Obligations

  1. Anti-money laundering

We are required by the anti-money laundering regulations to verify the identity of our clients, to obtain information as to the purpose and nature of the business which we conduct on their behalf, and to ensure that the information we hold is up to date. For this purpose, we may use electronic identity verification systems similar to those used for credit checks and we may conduct these checks from time to time throughout our relationship, not just at the beginning. You agree that we may use personal information.

  1. Client classification

Each client Wells Gibson does business with is categorised to identify the level of regulatory protection to be applied. We believe in providing our clients with full regulatory protection and we propose to classify you as a Retail Client for Investment purposes and as a ‘Consumer’ for Insurance business.

Retail Clients are by far the largest category of client. These clients rely on the firm to provide regulated advice and are therefore owed the highest duty of care by the Adviser.

Professional Clients are clients who by their profession or investment experience may wish to be treated as a Professional Client. Should you elect to be a Professional Client we will give a written warning that you will lose the benefits of the arrangement under the Financial Services and Markets Act 2000 (except where there is a distance contract in place) which provides for the protection of clients.

  1. Conflicts of interests

We offer independent financial planning, advice and recommendations and we will act honestly, fairly and professionally, known as conducting business in ‘client’s best interest’ regulations.

Occasions can arise when we or one of our other clients, will have some form of interest in business that we are transacting for you. If this happens, or we become aware that our interests or one of our other clients conflicts with your interests, we will inform you in writing and obtain your consent before we carry out your instructions.

  1. Communications

Communication and correspondence between you and the firm will be made in English unless otherwise agreed with Wells Gibson. All transactions undertaken by Wells Gibson and instructions made by you must be provided in writing. In the interest of security, we may monitor and/or record your telephone calls with us. Writing may include email, but not social media.

  1. Distance marketing directive

If it is necessary to conduct our business without any personal contact we will advise you if this requires the creation of a distance contract between us. In this contract you will be provided with additional information as required by the Directive.

  1. Risk warnings

When we advise on, recommend and arrange a financial product and / or investment, we will communicate the risks to you verbally and in writing. Please note that the performance of an investment is not guaranteed and you are not certain to make a profit. The value of funds can go down as well as up.

  1. Best execution

We do not execute any trades for you. Instead we place trades with third parties (investment managers for example) which execute the trades for you. The third parties are required to have a best execution policy. This means they must take all reasonable steps to ensure that they obtain the best possible result for you. Our procedures adhere to their policies and we monitor their adherence to those policies.

  1. Record keeping

We will keep records of all your transactions. You, or your appointed agent, have the right to inspect the records at a mutually convenient time.

As we treat all our client records as confidential we reserve the right to give you copies of your records where in certain circumstances releasing the original would compromise other client’s confidentiality. Unless you tell us otherwise, where we advise on, recommend and arrange a financial products and/or investments for couples or joint parties, we will assume that information can be passed freely between us and those parties involved with the contract.

  1. Data protection

The information you provide is subject to the relevant Data Protection Act. By signing this document, you consent to us or any company associated with us for processing, both manually and by electronic means, your personal data for the purposes of providing advice, administration and management.

Please note that the firm’s legal obligations under the UK’s anti money laundering regulations require us in all cases to process personal data for the purposes of preventing money laundering. This means in relevant circumstances your data may have to be released to national crime prevention authorities.

Processing” includes obtaining, recording or holding information or data, transferring it to other companies associated with us, product providers, the FCA or any other statutory, governmental or regulatory body for legitimate purposes including, where relevant, to solicitors and/or other debt collection agencies for debt collection purposes and carrying out operations on the information or data.

You will need to give us your consent to the transfer of personal information as outlined above. While you are not obliged to do so, the practical implications are that we will find it very difficult to work together efficiently if you don’t, as all requests for information will need to go via you, and responses will need to come to us via you too.

In order to provide services to you we may be required to pass your personal information to parties located outside of the European Economic Area (EEA) in countries that do not have Data Protection Laws equivalent to those in the UK. Where this is the case we will take reasonable steps to ensure the privacy of your information.

We will never contact you or pass your details to other companies associated with us to contact you (including by telephone) with details of any other similar products, promotions, or for related marketing purposes in which we think you may be interested, without getting your express agreement first.

The information provided may also contain sensitive personal data for the purposes of the Data Protection Act.

If at any time you wish us or any company associated with us to cease processing your personal data or sensitive personal data, or contacting you for marketing purposes, please contact The Data Protection Officer on 01382 722 989 or 07506 199 855 or by writing to Wells Gibson Limited, Prospect House, Prospect Business Centre, Gemini Crescent, Dundee, DD2 1TY.

Separately you can find our Privacy Policy on our website at www.wellsgibson.uk. This provides additional information about the nature of our personal data processing activities including your rights of access to the personal information that we hold on you.

Subject to certain exceptions, you are entitled to have access to your personal and sensitive personal data held by us. 

  1. Client money

Wells Gibson is not authorised to handle client money. Therefore, all cheques for premiums, investment monies of any kind or lender and professional fees must only be made payable to the life assurance company, friendly society and investment management group or firm providing the financial product or service concerned.

Under no circumstances should a cheque for premiums or investment monies of any kind be made payable to, or cash given to Wells Gibson (except in the payment of invoices issued by Wells Gibson under a Fee Agreement).

  1. Force majeure

Wells Gibson shall not be in breach of this agreement and shall not incur any liability to you if there is any failure to perform its duties due to any circumstances reasonably beyond its control.

Your Responsibilities & Rights

  1. Provision of personal information

In order to provide you with suitable financial planning, advice and recommendations, we must obtain certain information from you about your personal and financial position, investment risk-profile and your lifestyle, financial and investment goals.

  1. Your insurance responsibilities

All answers on applications forms or any other document or statement made are your responsibility. You are responsible for providing complete and accurate information which insurers require in connection with any proposal for insurance cover. This is particularly important before taking out a policy or at renewal but it also applies throughout the life of the policy.

If you fail to disclose any material information to the insurance company, this could invalidate the policy and mean that claims may not be paid. You should check all details on any proposal form or Statement of Facts and pay particular attention to any declaration you may be asked to sign.

You should read all insurance documents issued to you and ensure that you are aware of the cover, limits and other terms that apply. Particular attention should be paid to any warranties and conditions as failure to comply with them could invalidate your policy.

You should inform us immediately of any changes in circumstances that may affect the services provided by us or the cover provided by your policy.

You are strongly advised to retain copies of all correspondence that you send us for you own protection.

  1. Right to cancel a financial product or investment

We will inform you of your statutory right to cancel.

The Distance Marketing Directive normally grants you 30 days in which you may cancel a life or pension contract. However, there will be occasions where no statutory rights are granted however this will be explained before any contract is concluded.

In general terms you will have a 30 day cancellation period for a pure protection policy and a 14 day cancellation period for a general insurance policy.

  1. Complaints and redress

If you wish to register a complaint please telephone either 01382 722 989 or 07506 199 855 or write to Jonathan Gibson, Managing Director, Wells Gibson Limited, Prospect House, Prospect Business Centre, Gemini Crescent, Dundee, DD2 1TY.

Your complaint will be formally acknowledged and you will be sent a copy of our formal complaints procedure. The matter will be investigated in line with our procedures and in accordance with the rules and our findings will be reported to you.

If you are unhappy with the outcome you will have the right to take any eligible complaint, free of charge, to the Financial Ombudsman Service at Exchange Tower, London, E14 9SR or by visting their website, www.financial-ombudsman.org.uk.

If you make a valid claim against the company and we are unable to meet our liabilities in full, you may be entitled to redress from the Financial Services Compensation Scheme. The Financial Services Compensation Scheme provides protection against an authorised investment firm going out of business.

  1. Compensation limits

If you make a complaint and we are unable to meet our liabilities, you may be entitled to compensation from the Financial Services Compensation Scheme.

Investment business will normally be covered up to a maximum of £50,000.

Further information about these amounts and limits for all other product types are available from the FSCS at http://www.fscs.org.uk/what-we-cover/products.