- Customer Status
- Intermediary is an agent of the Client
- Client Money
- Money Laundering
- AdvisorOnline Reporting Service
- DistributorOnline Reporting Service
- Service of Documents
- Dealing and Other Procedures
- Telephone Recording
- Governing Law
- Data Protection Act 1998
- Anti-Money laundering
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 FCA Handbook.
1.6. “Client Money Regulations” means those rules in the CASS Sourcebook within the FCA Handbook as amended from time to time.
1.7. “COBS” means the Financial Conduct Authority’s Conduct of Business Sourcebook.
1.8 “COLL” means the Financial Conduct Authority Collective Investment Scheme Sourcebook
1.9. “Collective Investment Scheme” has the meaning given in Section 235 of the Act.
1.10. “Liontrust” means Liontrust Fund Partners LLP which is authorised and regulated by the FCA.
1.11. "EMXCo", SWIFT and "Calastone" are electronic message systems, which are secure, automated trading systems for use by Intermediaries to purchase and sell the unit trusts, and to obtain valuations. “CREST Settlement”, “Clearstream Central Facility for Funds” and “Calastone Net Settlement” are corresponding electronic automated settlement systems operated in conjunction with the electronic message systems for use by Intermediaries to settle unit trust trades.
1.12. “FCA” means the Financial Conduct Authority.
1.13. “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 Conduct Authority. Liontrust reserves the right not to deal with any Intermediary not authorised by the FCA, or to seek further clarification as to the status of the Intermediary (as in the case of overseas intermediaries not authorised by the FCA).
1.14. “Professional Client” has the meaning given in COBS.
1.15. “ISA” means a Stocks and Shares Individual Savings Account.
1.16. “JISA” means a Junior Stocks and Shares Individual Savings Account.
1.17. “ISA Regulations” means the Individual Savings Account Regulations 1998, including any regulations substituted therefore, as from time to time amended.
1.18 “KIID” means the Key Investor Information Document as prescribed by the UCITS Regulations.
1.19. “Settlement Day” means in respect of any contract for units 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 an acceptable renunciation signed by all account unit holders in the case of a redemption.
1.20. “The Rules of the FCA” means The Rules of the Financial Conduct Authority, as published and amended from time to time in the relevant Sourcebooks.
1.21. "Third Party Administrator" means a company, or companies, appointed by Liontrust to undertake various administration duties on its behalf.
1.22 “UCITS Regulations” means
1.23. “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.
1.24. “Unit” or “Units” means the rights or interests (however described) of the participants in a Collective Investment Scheme managed by Liontrust, whether they are Units in the Scheme itself or in a packaged product such as an ISA or JISA.
2. Customer Status
Liontrust will treat the Intermediary as a Professional Client, in accordance with the Rules of the FCA, by which it is regulated.
Liontrust will not accept business from an Intermediary who is not, or ceases to be, Authorised 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. Liontrust 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).
Liontrust will normally act as principal in the sale and redemption of Units. However, in certain circumstances, LFP may act as agent.
These terms of business shall come into effect upon service to the Intermediary, as provided in Clause 15, 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. The Intermediary may act as agent of Liontrust only to the extent if any, that the Intermediary is so permitted by Liontrust in writing prior to any event and, subject to any such written permission, the Intermediary shall not act for, or in name of, Liontrust, nor sign documents on behalf of Liontrust.
6.2. Subject as provided in Clause 6.1 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. Client Money
7.1 In accordance with the CASS Sourcebook, Liontrust as Manager chooses to operate under a Delivery versus Payment exemption. This exemption under Rules of the FCA allows the Manager to not treat money as client money in the following two Delivery versus Payment situations:
a) Where the money is received early from a Client in relation to the issuance of units in one of the Liontrust’s funds;
b) Where the money is held by the Manager in the course of Units being redeemed where the proceeds of that redemption are paid to a Client within the time specified in the Rules of the FCA (normally within four working days of receiving the signed renunciation).
In these situations where money is not treated as client money, money is not protected and in the event that the Manager should fail this money is at risk. By agreeing to subscribe to any Liontrust funds, unit holders and their Intermediary are agreeing for the Manager to operate under such arrangements. Should the Manager cease at any time using the Delivery versus Payment exemption, clients will be pre-notified in writing ahead of the relevant cessation date.
7.2 In accordance with the CASS Sourcebook, Liontrust is obliged to obtain unit holder agreement to use the Delivery versus Payment exemption within use of the Commercial Settlement Systems utilised. By subscribing to any Liontrust fund, unit holders and their Intermediary confirm agreement to the use of such systems.
7.3 In relation to the CASS Sourcebook the Manager confirms that it will not pay any interest on any client money balances.
7.4 In relation to the CASS Sourcebook, by agreeing to subscribe to purchase units in any Liontrust fund, unit holders agree for the Manager and any applicable third party to establish a contractual agreement to cover the holding of client money by the third party in a client transaction account showing that it is holding the monies on behalf of Liontrust’s clients.
8.1.Unless otherwise agreed between Liontrust and the Intermediary, payment in respect of any contract effected by or through the Intermediary must be received by Liontrust 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. Liontrust’s banking details are shown on the purchase contract. With respect to ISA and JISA applications, settlement must accompany the application by personal cheque(s) drawn on the unit holder’s personal accounts(s).
8.2. Liontrust will follow up any outstanding debtor payments which are overdue and will then investigate all overdue debtors at 7 days and every 7 days thereafter, until the amount is settled. At 28 days a final reminder may be sent advising that the deal may be cancelled at 35 days unless settlement is received. Liontrust 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 35 days. 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.
8.3. The Intermediary shall keep Liontrust indemnified from all loss incurred by Liontrust if Liontrust does not receive due payment by the Settlement Day. For the purpose of this Clause, loss shall include any loss resulting from the cancellation or the closing out of the contract and, without limitation to the foregoing, any other loss or expense caused to Liontrust, directly or indirectly, by a failure of the Intermediary to comply with Clause 7.1. Liontrust may at its discretion, after notification to the Intermediary, charge interest on any sums due from the Intermediary to Liontrust 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.
8.4.The Intermediary may, in the case of repurchases, request Liontrust 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 Liontrust may at its absolute discretion refuse such a request.
8.5. 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”, or settlement may be made by bank transfer. Liontrust may at its absolute discretion accept and carry out written payment instructions issued and signed by all the registered holders. Liontrust 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 Liontrust 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 an original bank statement no older than 3 months in age or a letter from the bank confirming the Client’s ownership of the account.
8.6. In accordance with COLL and the Prospectus of the funds, the Intermediary shall immediately pass to Liontrust all monies in respect of unit purchases given, transferred or sent to the Intermediary by a Client.
9.1. All matters relating to the payment of commission by Liontrust to the Intermediary shall be governed by the Rules of the FCA, to the extent that such rules are applicable.
9.2. Without prejudice to the payment of commission already accrued due and payable, Liontrust 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.
9.3 In the event that the Intermediary reduces its holdings in Liontrust’s funds to zero, any agreement with regard to the payment of commission at that time, and in particular any special terms agreed between Liontrust and the Intermediary and contained in the agreement, will cease to be applicable.
9.4. 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 or JISA) in the ‘R’ or Retail class of Liontrust Global Income Fund, Liontrust Asia Income Fund, Liontrust Special Situations Fund, Liontrust European Growth Fund, Liontrust Macro UK Growth Fund and Liontrust Macro Equity Income Fund, and for ISA and JISA holdings in the ‘R’ or Retail class of all Liontrust funds with the exception of Liontrust FTSE 100 Tracker Fund. The ‘A’ or Advised and ‘I’ or Institutional classes of the funds do not pay commission.
- 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, JISA and ISA holdings.
- Renewal commission will only be paid to an Intermediary who is noted on the register as servicing Intermediary on an account at the end of the relevant renewal commission period. If an Intermediary has Clients who are not noted on the register, or the register is showing Clients 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 electronically direct to a nominated bank account, by sending bank details, quoting an agency number with any request being signed off by authorised signatories. Electronic payments are subject to a de minimus amount of £10. Commission payments will not be made by cheque. Electronic payments that are not received and Liontrust agree are outstanding, can be re-issued for a period of two years in total. After that, unclaimed renewal commission will revert to Liontrust. 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 (AOLR). See here for details of how to register for AOLR.
- Liontrust will change agency details only upon written instructions from the Client, or from an agent signed by authorised personnel or on receipt of a signed Novation agreement.
9.5 Liontrust reserves the right to discount the price of units or reduce its charges on ISAs and JISAs or other investments in lieu of commission, in part or in whole, by negotiations with the Intermediary, or in relation to switches between Liontrust funds.
9.6. Liontrust may, at its discretion, cease paying commission to the Intermediary:
a) if the Intermediary ceases to be Authorised or the Intermediary’s Authorisation is suspended; or
b) in respect of any transaction for a Client for whom an Intermediary has ceased to be the 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.
10. Money Laundering
10.1. 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.
10.2. 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 Liontrust.
10.3. 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.
11.1. Under the UCITS Regulations an investor must be provided with a relevant KIID free of charge before investing. Under these terms of business Liontrust delegates this responsibility to the Intermediary.
11.2 The Intermediary shall pass to a Client immediately and without any amendment any documents supplied by Liontrust for the information of, or completion by, the Client, and shall pass to Liontrust 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 KIID in relation to the relevant unit trust, JISA or ISA scheme(s). The Intermediary shall promptly supply the Client (or request Liontrust to supply the Client) with the aforesaid KIID, most recent Manager’s Report and full Prospectus as the Client requests. Liontrust will promptly supply to the Intermediary copies of such KIID 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.
11.3. Liontrust 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.
11.4. The Intermediary shall, when requested, provide Liontrust with a statement of:
a) the Intermediary’s FCA 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 FCA’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 FCA 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 FCA. The above exclusions do not apply to the sale of Units in connection with a personal pension contract.
12. AdvisorOnline Reporting (AOLR)
12.1. AOLR is a secure online depository that provides an Intermediary with a safe and secure way to view, download and print initial and renewal commission and clients' holdings statements ; Liontrust does not mail paper statements. The Intermediary will need to register for the AOLR service here or by contacting the AdvisorOnline support desk on 0844 931 0007.
13. DistributorOnline Reporting (DOLR)
13.1. DOLR is a secure online repository where an Intermediary is able to access various reports including Deal Confirmations, Outstanding settlement details, Distributions, Reconciliations, Valuations, Stock Transfers, Bulk Settlements, XD and AMC Rebates. The Intermediary can register for the DOLR service by either contacting by email the DistributorOnline support desk at DOLreporting@ifdsgroup.co.uk or by clicking here and following the details of how to register.
14.1. Without prejudice to the indemnity contained in Clause 7.2, the Intermediary shall indemnify and keep indemnified Liontrust from all loss resulting to Liontrust arising from:
a) any failure by the Intermediary to comply with the provisions of the Act, any regulations made thereunder; 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 Clause 7.3.
15. Service of Documents
15.1. 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 or as subsequently notified by the Intermediary to Liontrust in writing.
15.2. 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 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.
16.1. Liontrust 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 Liontrust’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.
16.2. The Intermediary shall not be entitled to sub-contract or transfer any of his rights and obligations hereunder without the prior written consent of Liontrust.
17. Dealing and Other Procedures
Business will be carried out by Liontrust, or a Third Party Administrator appointed by it, in accordance with the scheme prospectus and other product documentation issued by Liontrust 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 Liontrust unit trusts, and to obtain valuations.
Any complaint should be made in the first instance to Liontrust’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.
19.1. The Intermediary and Liontrust shall have the right to terminate their agreement to these Terms of Business by not less than 10 days written notice to the other party.
19.2. Termination will be without prejudice to the completion of transactions already initiated.
20. Telephone Recording
Liontrust may record telephone calls.
21. Governing Law
These terms of business shall be governed and construed in accordance with English law.
22.1. 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 15.
22.2. Liontrust 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 Liontrust will notify the Intermediary in writing of any material changes relating to how it will deal with the Intermediary, if Liontrust 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 Liontrust’s website at www.liontrust.co.uk
23. Data Protection Act 1998
Liontrust is a data controller within the meaning of the Data Protection Act 1998. Liontrust and its Associates (as defined in Section 256 of the Companies Act 2006) may use the personal information supplied to provide the service applied for, confirm/update customer records and establish a Client’s identity. Under the Data Protection Act, a Client has the right to ask Liontrust about the information that is held about them. Liontrust will confirm what information is held and provide a copy in line with the Data Protection Act. (A fee may be payable.) Liontrust should be advised about any information that is inaccurate so it can be corrected.
24. 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 organisations involved in fraud prevention to protect ourselves and our customers from theft and fraud. If Liontrust is given false or inaccurate information and we suspect fraud, we will record this and may share it with other organisations. Completion of the Application Form represents permission from the unit holder(s) 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 be made using a building society or banker’s draft, please arrange for the drawing institution 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 Conduct Authority.