Terms of Business

Liontrust Fund Partners LLP is authorised and regulated by the Financial Services Authority.

Data Protection Act 1998 – Use of information
Liontrust Fund Partners LLP (“Liontrust” or “LFP”) is a data controller within the meaning of the Data Protection Act 1998. Liontrust and its Associates (as defined in Section 52 of the Companies Act 1989) may use the personal information supplied to provide the service applied for, confirm/update customer records and establish your identity. You have the right of access to your personal data held by Liontrust at any time, by contacting us in writing and upon payment of a fee. We would like to advise you, by mail, of other products and services being offered by us and our Associates which may be of interest to you. You may write to us at Liontrust Fund Partners LLP, 2 Savoy Court, London. WC2R 0EZ at any time, if you no longer wish to receive such information.

Anti-Money laundering
Liontrust is required to make various checks on unit holders and transactions to comply with requirements of the Proceeds of Crime Act 2002 and statutory regulations in relation to money laundering, as amended from time to time. These checks involve the need to obtain independent documentary evidence of the identity and permanent address of the person(s) applying to open an Account and may be completed by verifying the details supplied against those held on any databases to which Experian, the Credit Reference Agency, has access. This includes information from the Electoral Register and fraud prevention agencies. We will use scoring methods to verify the unit holder’s identity. A record of this search will be kept by Experian and may be used to help other companies to verify the unit holder’s identity elsewhere. This information may also be used by financial and other organisation’s involved in fraud prevention to protect ourselves and our customers from theft and fraud. If the Company is given false or inaccurate information and we suspect fraud, we will record this and may share it with other organisation’s. Completion of the Application Form represents permission from the unit holder to access this information in accordance with the Data Protection Act 1998. Until Liontrust receives satisfactory evidence, it may need to delay processing an instruction and/or withhold any payments due in respect of an investment deal. It would assist with this process and help Liontrust to complete its verification checks if payment for any investment could be made by bank transfer or failing that, a cheque drawn on the unit holder’s  (or joint) personal bank account, or a company bank account where settling on behalf of a Nominee or corporate account . Where payment will made using a building society or banker’s draft, please arrange for them to certify, on the back of the draft, the name of the client from whose account payment is being made. Liontrust reserves the right to refuse any application to subscribe to a unit trust without giving a reason for so doing.

Liontrust does not make or accept payments from third parties not authorised by the Financial Services Authority.

TERMS OF BUSINESS FOR INTERMEDIARIES

1. Definitions
2. Customer Status
3. Scope
4. Services
5. Commencement
6. Intermediary is an agent of the Client
7. Payments
8. Commission
9. Money Laundering
10. Documentation
11. AdvisorOnline Reporting (AOLR)
12. Indemnity
13. Service of Documents
14. Variation
15. Dealing and Other Procedures
16. Complaints
17. Termination
18. Telephone Recording
19. Governing Law
20. Acceptance
21. Data Protection Act 1998

1. Definitions
1.1.“Act” means the Financial Services and Markets Act 2000 as from time to time amended or re-enacted.
1.2.“Authorised”, whether relating to a person, partnership, unincorporated association or body corporate, means the status accorded thereto envisaged by Section 19 of the Act.
1.3. “Business” means the Business of engaging in one or more of the activities described in Schedule 2 Part I of the Act in relation to investments.
1.4.“Client” means a person or company who is an applicant for Business, who seeks to establish a ‘business relationship’ carrying out transactions on a frequent basis, or an occasional customer undertaking a ‘one-off’ transaction.
1.5. “Client Money Account” means a bank account which meets the requirements of CASS Rules within the FSA Handbook.
1.6.“Client Money Regulations” means those rules in the CASS Sourcebook within the FSA Handbook as amended from time to time.
1.7.“COBS” means the Financial Services Authority’s Conduct of Business Sourcebook.
1.8.“Collective Investment Scheme” has the meaning given in Section 235 of the Act.
1.9. “Company” means Liontrust Fund Partners LLP.
1.10. "EMXCo" and "Calastone" are electronic message systems, which are secure, automated trading systems for use by Intermediaries to purchase and sell the company Unit Trusts, and to obtain Valuations.
1.11. “FSA” means the Financial Services Authority.
1.12. “Intermediary” means an independent person, partnership or company carrying on Business with Clients in relation to any investment transactions, including any appointed representatives of such an Intermediary, and duly authorised by the Financial Services Authority. Liontrust reserves the right not to deal with any Intermediary not Authorised, or to seek further clarification as to the status of the Intermediary (as in the case of overseas intermediaries not Authorised by the FSA).
1.13. “Professional Client” has the meaning given in the FSA’s COB Sourcebook.
1.14. “ISA” means a Stocks and Shares Individual Savings Account.~
1.15. “JISA” means a Junior Stocks and Shares Individual Savings Account.
1.16. “ISA Regulations” means the Individual Savings Account Regulations 1998, made by HM Treasury, including any regulations substituted therefore, as from time to time amended.
1.17. “Settlement Day” means in respect of any contract for units or shares the date stated thereon as the time on which payment is due, which is normally 4 working days after the dealing day for a purchase, and 4 working days after receipt of a renunciation in the case of a redemption.
1.18. “The Rules of the FSA” means The Rules of the Financial Services Authority, as published and amended from time to time in the relevant Sourcebooks.
1.19. "Third Party Administrator" means a company, or companies, appointed by the Company to undertake various administration duties on its behalf.
1.20. “Unit Trust Scheme” means a Collective Investment Scheme under which the property in question is held in trust for the participants but excluding limited partnerships.
1.21. “Unit” or “Units” means the rights or interests (however described) of the participants in a Collective Investment Scheme managed by the Company, whether they are Units in the Scheme itself or in a packaged product such as an ISA.

2. Customer Status
The Company will treat the Intermediary as a Professional Client, in accordance with the Rules of the FSA, by which it is regulated.

3. Scope
The Company will not accept business from an Intermediary who is not, or ceases to be, Authorised pursuant to the Act, and reserves the right to cease to accept business from, or to refuse any particular business proposed by, an Intermediary, and may exercise this right without comment when necessitated by an issue of confidentiality or any other matter. The Company also reserves the right not to deal with any Intermediary not Authorised, or to seek further clarification as to the status of the Intermediary (as in the case of overseas intermediaries who are not Authorised).

4. Services
Liontrust Fund Partners LLP (LFP) will normally act as principal in the sale and redemption of units. However, in certain circumstances, LFP may act as agent.

5. Commencement
These terms of business shall come into effect upon service to the Intermediary, as outlined in Clause 12 of these terms, unless objection is raised within seven calendar days of the date of receipt.

6. Intermediary is an agent of the Client
6.1. The Intermediary may act as a principal if so Authorised pursuant to the Act. The Intermediary may act as agent of the Company only to the extent, if any that he is so permitted by the Company in writing prior to any event and, subject to any such written permission, the Intermediary shall not act for, or in name of, the Company, nor sign documents on behalf of the Company.
6.2. Subject as provided in Clause 6.1 above and except in relation to the personal responsibilities of the Intermediary hereunder, the Intermediary shall be the agent of the client but the provisions of Clause 7.1 below shall apply whether or not the Intermediary receives payment from the client.

7. Payments
7.1. Unless otherwise agreed between the Company and the Intermediary, payment in respect of any contract effected by or through the Intermediary must be received by the Company in cleared funds on or before the Settlement Day. Settlement should be made by bank transfer quoting the deal reference; any costs incurred in making a bank transfer should be paid for by the payee and not deducted from the amount being settled.The Company’s banking details are shown on the purchase contract.With respect to ISA applications, settlement must accompany the application.
7.2. Liontrust will follow up any outstanding debtor payments which are overdue and will then investigate all overdue debtors at 14 days and every 7 days thereafter, until the amount is settled. At 28 days a final reminder will be sent advising that the deal may be cancelled at 35 days unless settlement is received. The Company shall be entitled, without giving prior notice to the Intermediary, to cancel, in whole or in part, any contract in respect of which the amount due remains unpaid after the chasing period. This provision shall not be affected by any requirement to serve a cancellation notice in respect of the transaction in question. Additionally, Liontrust will follow up any outstanding creditor positions until a signed renunciation is received enabling the deal to be settled. The deal may be cancelled unless a signed renunciation is received.
7.3. The Intermediary shall keep the Company indemnified from all loss resulting to the Company if the Company does not receive due payment by the Settlement Day. For the purpose of this provision, loss shall include any loss resulting from the cancellation or the closing out of the contract and, without limitation by the foregoing, any other loss or expense caused to the Company, directly or indirectly, by a failure of the Intermediary to comply with 7.1 above. The Company may at its discretion, after notification to the Intermediary, charge interest on any sums due from the Intermediary to the Company which remain unpaid after the Settlement Day, at a rate equivalent to 2% above the base lending rate for the time being published by The Bank of England. This interest will be calculated on a daily basis from the Settlement Day up to and including the day when settlement is made.
7.4. The Intermediary may, in the case of repurchases, request the Company to issue cheques drawn in favour of the Client Money Account of the Intermediary, subject to the Intermediary confirming that satisfactory money laundering identification procedures have been completed, but the Company may at its absolute discretion refuse such a request.
7.5. Unless Clause 7.4 above applies, repurchase payments shall be made by a cheque drawn in favour of the first-named registered Unit holder and crossed “Account Payee Only”. The Company may at its absolute discretion accept and carry out written payment instructions issued and signed by all the registered holders. The Company is able to settle all repurchases, at no cost to the customer, via bank transfer, if requested in advance by the Client or Intermediary subject to the Company being satisfied for money laundering purposes. The client will be asked to supply proof of ownership of the bank account, if not previously supplied, in the form of a cancelled cheque, a paying in slip, a copy of a bank statement no older than 3 months in age or a letter from the bank confirming the client’s ownership of the account.
7.6. In accordance with the COLL Sourcebook and the Prospectus of the funds, the Intermediary shall immediately pass to the Company all monies in respect of unit purchases given, transferred or sent to the Intermediary by a Client.

8. Commission
8.1. All matters relating to the payment of commission by the Company to the Intermediary shall be governed by the Rules of the FSA, to the extent that such rules are applicable.
8.2. The Company shall pay commission to the Intermediary at such rate or rates, as it shall from time to time notify to the Intermediary.
8.3. Without prejudice to the payment of commission already accrued due and payable, the Company reserves the right to reduce the rate of commission in respect of past or future transactions on giving the Intermediary 28 day’s written notice of any such reduction.
8.4. In the event that the Intermediary reduces its holdings in the Companies funds to zero, any legal agreement in existence at that moment, and in particular any special terms agreed between the Company and the Intermediary and contained in the agreement, will cease to be applicable.
8.5. The Intermediary shall not recommend any unit trust, ISAs or other investments unless the Intermediary has made such disclosures to the Client in respect of commission, or other remuneration that will be received by the Intermediary, and such other matters as, at the relevant time, are required to be disclosed by the Rules of the FSA. The Intermediary shall disclose the actual amount of any commission or other remuneration payable if so requested by the client.
8.6. If a client exercises a statutory right of cancellation, any commission (including any VAT) paid in respect of the transaction shall forthwith be repaid by the Intermediary to the Company. All or any amount of commission (and any VAT) otherwise due to be repaid by the Intermediary (whether or not owing to the exercise of a statutory right of cancellation) shall forthwith be repaid by the Intermediary to the Company or, at the Company’s discretion, may be deducted by the Company from any other amount of commission due from it to the Intermediary.
8.7. Where renewal commission is payable, it is payable on the following terms:

• Renewal commission is paid at the rate of 0.50% per annum for unit trust holdings (i.e. not an ISA) in the ‘R’ or Retail class of Liontrust Income Fund, Liontrust Asia Income Fund Liontrust Special Situations Fund, Liontrust European Growth Fund and Liontrust European Absolute Return Fund, and for ISA holdings in the ‘R’ or Retail class of all our funds with the exception of Liontrust FTSE 100 Tracker Fund.
• Renewal commission will be paid semi-annually by the 15 August and 15 February for the six month periods ending 30 June and 31 December for all eligible unit trust and ISA holdings.
• Renewal commission will only be paid to the Intermediary attached as servicing Intermediary, at the end of the relevant renewal commission period to a client’s account. If the Intermediary has clients missing, or the Company is showing investors who are not clients of the Intermediary, then the Intermediary should contact the Liontrust Customer Services Team immediately. Unless there are exceptional circumstances, queries will not be considered for a period of six months after the date of payment.
• The Intermediary can have renewal commission paid by cheque or paid electronically direct to a nominated bank account, by sending the Company bank details, quoting an agency number with any request being signed off by authorised signatories. Payment by cheque is subject to a minimum amount of £100 (£10 for electronic payments). Cheque’s are only valid for a period of six months. We will re-issue cheques on request for a period of eighteen months (i.e. two years in total). Electronic payments that are not received and the Company agree are outstanding, can be re-issued for a period of two years in total.  After that, unclaimed renewal commission will revert to the Company. For the avoidance of doubt, Liontrust will not send reminders for unclaimed renewal commission monies.
• Renewal commission is calculated on the minimum unit holding during the relevant period. This means units purchased during the period, or sold or transferred during the period will not be eligible for renewal commission.
• Renewal commission is calculated on the number of days in the payment period and the value of a Client’s minimum unit holding as at the period end date using the bid price on that date.
• Renewal commission statements (as well as initial commission statements and Intermediary copies of client holding statements) are available via AdvisorOnline Reporting.
• The Company will change agency details only upon written instructions from the client or on receipt of a signed Novation agreement.

8.8. The Company reserves the right to discount the price of units or reduce its charges on ISAs or other investments in lieu of commission, in part or in whole, by negotiations with the Intermediary, or in relation to switches.
8.9. The Company may, at its discretion, cease paying commission to the Intermediary:
a) if the Intermediary ceases to be Authorised to carry on business or the Intermediary’s Authorisation is suspended; or
b) in respect of any transaction for a person for whom the Intermediary has ceased to be the Servicing Intermediary; or
c) if the Intermediary shall die, become bankrupt, compound with or assign his estate or effects for the benefit of creditors, have his goods seized in execution or, where the Intermediary is a company, if it goes into liquidation or receivership or is subject to an administration order; or
d) if the Intermediary is subject to an investigation under Section 167 of the Act.

9. Money Laundering
9.1. The Intermediary acknowledges that any transaction in units will be covered by statutory and other requirements relating to money laundering (jointly “the Money Laundering Requirements”), as amended from time to time.
9.2. Where a customer agreement, terms of business letter or similar arrangement exists that constitutes a Business relationship between the Intermediary and his Client, the Intermediary undertakes full responsibility for the identification procedures necessary under the Money Laundering Requirements in respect of any transaction with the Company.
9.3. Where the Intermediary arranges a transaction or a series of linked transactions in units, not covered by arrangements under 9.2 above, the value of which exceed(s) €15,000, or its sterling equivalent, the Intermediary undertakes to fulfill the identification procedures necessary under the Money Laundering Regulations.

10. Documentation
10.1. The Intermediary shall pass to a Client immediately and without any amendment any documents supplied by the Company for the information of, or completion by, the Client, and shall pass to the Company immediately any documents provided by the Client for that purpose.
a) The Intermediary shall not affect any purchase until the Intermediary has offered the Client, free of charge, a copy of the most recent Simplified Prospectus in relation to the relevant unit trust or ISA scheme(s). The Intermediary shall promptly supply the Client (or request the Company to supply the Client) with the aforesaid Simplified Prospectus, most recent Manager’s Report and full Prospectus as the Client requests. The Company will promptly supply to the Intermediary copies of such Simplified Prospectus documents, reports and the full Prospectus as may be required to enable the Intermediary to carry out the Intermediary’s obligations hereunder.
b) The Intermediary undertakes to comply with any other disclosure requirements in force at the time of recommending or affecting a purchase of units.
10.2. The Company has an obligation to send certain documents direct to the Client and also reserves the right to send other documents and communications direct to the Client.
10.3. The Intermediary shall, when requested, provide the Company with a statement of:
a) the Intermediary’s FSA Authorisation reference number; and
b) whether or not the Intermediary is authorized to handle client money; and
c) in relation to any purchase of units, whether or not Section 6.7 of the FSA’s Conduct of Business Sourcebook (Cancellation), as from time to time amended, apply to the transaction. Note: Such rules will not apply to any of the above if:
1) the Client is an execution-only customer, i.e. if the Intermediary can reasonably assume that the Client was not relying upon the Intermediary to advise him or to exercise any judgment on his behalf as to the merits, or the suitability for him, of the transaction;
2) the Intermediary reasonably believes that the Client is a Professional Client (as defined in the FSA Sourcebook) in relation to the purchase of units;
3) the transaction in units is entered into pursuant to a customer agreement between the Intermediary and the client that complies with the relevant rules of the FSA. The above exclusions do not apply to the sale of units in connection with a personal pension contract.

11. AdvisorOnline Reporting (AOLR)
11.1. AOLR is a secure online depository where an Intermediary is able to access information about their commission and their clients’ holdings. The service provides a safe and secure way to view, download and print commission and clients' holdings statements; Liontrust does not mail paper statements. The Intermediary will need to register for the AOLR service by contacting the AdvisorOnline support desk on 0844 931 0007.

12. Indemnity
12.1. Without prejudice to the indemnity contained in Clause 7.2 on page 2, the Intermediary shall indemnify and keep indemnified the Company from all loss resulting to the Company arising from:
a) any failure by the Intermediary to comply with the provisions of the Act, any regulations made there under by the FSA; or
b) any breach by the Intermediary of any of these terms of business including, without limiting the foregoing, any failure to provide promptly and accurately, the information required in 7.3 on page 2.

13. Service of Documents
13.1. Any letter or other document shall be deemed to have been duly served upon the Intermediary if it is sent by post to or left at the address of the Intermediary appearing in this letter or as subsequently notified by the Intermediary to the Company in writing.
13.2. Any letter or other document sent by post shall be deemed to have been served on the business day following that on which the envelope containing the same is posted and in providing such a service it shall be sufficient to prove that such envelope was properly addressed, stamped and posted and, if sent by facsimile, shall be deemed to be served on the day it was transmitted.

14. Variation
14.1. The Company reserves the right to vary these terms of business but except insofar as required by the Act or any regulations made there under and without prejudice to the Company’s rights under paragraph 8.3 above:
a) no variation shall affect contracts made prior to the time of the variation; and
b) not less than 28 days notice shall be given to the Intermediary of and prior to a variation.
14.2. The Intermediary shall not be entitled to sub-contract or transfer any of his rights and obligations hereunder without the prior written consent of the Company.

15. Dealing and Other Procedures
Business will be carried out by the Company, or a Third Party Administrator appointed by it, in accordance with the scheme prospectus and other product documentation issued by the Company from time to time. Intermediaries who are authorised to do so, and who abide by the relevant terms and conditions, may use the EMXCo or Calastone electronic message systems to purchase and sell the company Unit Trusts, and to obtain Valuations.

16. Complaints
Any complaint should be made in the first instance to the Company’s Compliance Officer, who will provide you with a copy of Liontrust’s complaint-handling procedures and try to resolve the issue as soon as possible. You should also be aware that you have the right to complain direct to the Financial Ombudsman Service, whose address is South Quay Plaza, 183 Marsh Wall, London E14 9SR.

17. Termination
17.1. The Intermediary and the Company shall have the right to terminate this Agreement by not less than 7 days written notice to the other party.
17.2. Termination will be without prejudice to the completion of transactions already initiated.

18. Telephone Recording
The Company may record telephone calls.

19. Governing Law
These terms of business shall be governed and construed in accordance with English and Welsh law.

20. Acceptance
20.1. In the absence of formal written acceptance (or objection – see Clause 5), the Intermediary will be deemed to have accepted these terms of business upon the expiry of seven calendar days from the date of service of the Terms in accordance with Clause 12.
20.2. The company terms of business are the most current version available at the point they are sent to the Intermediary, according to the date of service. Whilst the company will notify the Intermediary in writing of any material changes relating to how it will deal with the Intermediary, if the Company amends or replaces any version of the terms of business, the newest version will automatically apply and will supersede all previous versions. For the avoidance of doubt, the newest version available will always be that as listed on the Company’s website at www.liontrust.co.uk

21. Data Protection Act 1998
Under the Data Protection Act, you have the right to ask us about the information that we hold about you. If you ask, we will tell you what information we hold about you and provide a copy in line with the Data Protection Act. (A fee may be payable.) You should let us know if you think any information we hold about you is inaccurate, so we can correct it.

Liontrust Fund Partners LLP, Liontrust Investment Partners LLP and Liontrust European Investment Services Limited are authorised and regulated by the Financial Services Authority. Past Performance is not a guide to future performance. The price of units and the income from them can fall as well as rise, and are not guaranteed. Investors may not get back the amount originally invested.

Liontrust's standard Terms & Conditions apply. Copyright © Liontrust Asset Management PLC 2001-2012