Summary
To help you understand the main points of our terms and conditions and provide some guidance on how to
navigate them we’ve put together this short summary. Please remember that this is only a summary and for
more comprehensive information please refer to the full terms and conditions. The comments in this summary
relate to the General Terms, except where otherwise
specified.
Before you decide to invest you should be sure to retain adequate emergency cash. We view around three
months' salary as a good starting point. We will help you decide which Nutmeg portfolio best suits your
goals. This qualifies as simplified advice, which we have permission from our regulator to provide. If you
are unsure if a specific product is the right choice for you, we also offer a one-on-one Personal
Financial Advice Service. See our Definitions or the FCA website.
We will provide you with a discretionary investment management service, which means that we make all
investment decisions on your behalf. Once you have chosen a risk level for your portfolio and funded your
account, we will invest in the assets we believe will help you reach your investment goal. When we invest
for you, we do so in line with our best execution policy which means we will try and get the best outcomes
for you, such as prices and speed of execution. You can read more in Best Execution.
At the moment we invest exclusively in Exchange-Traded Funds (ETFs) though we may use other investment
types in the future. Customer Investment
Risks explains the risks of the investments we trade or may
trade.
Our normal method of communication with customers is by secure email. We call it Nutmail. You must sign
in to your account to read any Nutmail messages we send you. You can also contact us by web chat and
telephone. Our support email address is support@nutmeg.com.
The minimum investment for ISA, general investment account and personal pension is £500. For Lifetime ISAs and Junior ISAs, the minimum is £100.
Fees and charges are explained in Fees and
Charges Schedule. We charge a straightforward annual portfolio
management fee based on how much you've paid into your portfolio. The fee ranges from 0.25% to 0.75%
including VAT where applicable.
In addition to our annual management fee, there is an underlying fund cost, relating to ETFs, as charged
by those providers we use to construct your portfolio. These charges may vary from time to time. See the latest costs.
We are authorised and regulated by the Financial Conduct Authority and we will promptly respond to any
complaints that you may have. All contact details are on the website as well as in these terms.
All your assets and money are held with us and we have appointed State Street Bank and Trust as our
sub-custodian (our “Sub-Custodian”), and your money is held with Barclays Bank plc (our “Client Money
Bank”). You can read more in Custody and
Nominee Companies and Client Money.We are also
covered by the Financial Services Compensation Scheme, which provides protection of your investments up to
£85,000.
We store personal financial information to provide our services to you and we make every effort to
protect the privacy of your information. We do disclose your information to third parties where it is
relevant to the provision of our services.
You may terminate your agreement with 30 days’ notice. However, if you have a Nutmeg Personal Pension,
you will have to provide us with the details of the pension provider to whom we will need to transfer your
personal pension. The amount of money you receive will take into account any gains or losses from market
movements during the time it was invested.
If you wish to open an ISA with us, you will also need to sign up to the additional ISA terms so that you comply with the government (HMRC) regulations
regarding ISAs, including the limit on total contributions
in one year.
If you wish to open a Lifetime ISA with us you will also need to sign up to the additional Lifetime ISA terms so that you comply with the government (HMRC)
regulations
regarding Lifetime
ISAs, including the limit on total contributions in one year.
If you wish to open a Junior ISA with us you will also need to sign up to the additional Junior ISA terms so that you comply with the government (HMRC) regulations regarding Junior ISAs, including the limit on total contributions in one year.
- Important Information
- In these Terms and Conditions, references to:
- us and we are to Nutmeg Saving and Investment Limited,
trading as Nutmeg. Our registered address is 5 New Street Square, London EC4A 3TW (Company No
07503666). We are authorised and regulated by the Financial Conduct Authority
(FCA), whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS, www.fca.org.uk. Our firm registration number
is 552016; and
- customer, client, you and
your, are to the person who opens an Account with us.
-
Together, (a) these Terms and Conditions; (b) the information you provide in your profile and www.nutmeg.com portfolio (together, the Account); (c) our Website Terms and Conditions; and (e) our Privacy Policy form the entire agreement between you and us (the
Agreement), in respect of the services. (The services are described in section 3:
Services). The Agreement supersedes and extinguishes all previous agreements and
arrangements between you and us, relating to the Services.
-
These Terms and Conditions contain important information about the Services. You should read them
carefully before accepting them. If you do not understand anything, please email support@nutmeg.com and ask for further information.
- Commencement
-
The Agreement will become legally binding, and we will start providing the relevant Services to you,
when we receive (a) confirmation that your Account is complete; and (b) satisfactory answers to our
anti-money laundering enquiries (see clause 8.3 below).
- Services and General
Terms
-
The Services are only available to (a) UK residents; and (b) non-UK residents if they hold a UK
passport, and we are able to confirm their status and identity.
We will provide you with some or all of these Services, under the terms of the Agreement:
- Personal Financial Advice on which Nutmeg product may be right for you;
- Simplified Advice about which Nutmeg portfolio is right for you;
- discretionary investment management of the investments we hold on your behalf (your
Portfolio);
- safe custody of your investments;
- Cash Holding investment option;
- ISA management services; and
- personal pension portfolio services.
- Customer
Categorisation
- If we provide a Service to you, we will assume you are a retail client, and you will benefit from
the protections available to retail clients under the rules in the FCA’s Handbook of Rules
(FCA Rules). If you would like further information about this, you can ask us using
Nutmail or by emailing our
Compliance Officer at support@nutmeg.com.
-
If you hold an Account jointly, we will treat each of you as our customer.
If you are the trustees of a trust, we will treat each of you as our customer, instead of the
beneficiaries of the trust.
If you are the agent of someone else, we will treat each of you and your principal as our
customer.
In each of these cases, we will be entitled to take our instructions from any one customer, as if
they were given by all of our customers; if we make a payment to any one customer, it will be
treated as if we made it to all of our customers; and if a customer has an obligation to us, we will
be entitled to require each and every customer to meet or satisfy that obligation on behalf of every
other customer.
- Personal Financial
Advice
- Available to both existing Nutmeg customers and individuals that are contemplating opening an
account with Nutmeg, we offer a paid Personal Financial Advice Service restricted to Nutmeg’s
investment and pension products and Services. You accept that Personal Financial Advice is only
appropriate if (a) you do not need to reduce your debts; (b) you already have a reasonable amount
put aside for emergencies; (c) you already have insurance to protect your family, if something
happens to you; (d) you can meet your immediate financial needs; and after these considerations are
made, you still have spare income or capital to invest.
- If you choose to use the service, Nutmeg’s Personal Financial Advice is designed to identify which
of Nutmeg’s products and Services may be appropriate for you given your financial circumstances and
goals. Through a fact-finding process which will help us understand your financial situation, we
will be able to compile a tailored suitability report for you including our recommendations.
- The Personal Financial Advice service is intended as a one-off service. It doesn’t include an
annual review of how suitable the recommended portfolio services, investments or pensions are for
you. You can request this kind of review at any time, but it would be treated as a new round of
Personal Financial Advice and would be charged as such.
- Simplified Investment
Advice
- We give Simplified Advice using a streamlined process to meet straightforward investment advice
needs. You accept that Simplified Advice is only appropriate if (a) you do not need to reduce your
debts; (b) you already have a reasonable amount put aside for emergencies; (c) you already have
insurance to protect your family, if something happens to you; (d) you can meet your immediate
financial needs; and (e) you still have some disposable income or capital to invest.
- Our advice is restricted to the specific need expressed for your investment pot. When ensuring the
advice is suitable, we will not consider your wider financial needs or circumstances, or the
financial products you may already have. We only advise you about Nutmeg products and Services. We
do not consider other products and services that might be suitable or more suitable for your needs.
- We can help you transfer other investments into your Portfolio, but we will only do this if you
ask. We do not advise on the suitability of investments we do not manage.
- Discretionary
Management Service
- Your Account includes the information you have given us about (a) you; (b) your financial
circumstances; (c) your knowledge and experience of investments and investing; (d) your attitude to
risk; and (e) your investment objectives (your Information). We will use your
Information to manage your Portfolio. You may change your Information at any time by updating your
Account, although we reserve the right to amend the Agreement if you do. You accept that we will
treat the Information as accurate and complete, unless and until you change it by updating your
Account.
- We will manage your Portfolio on a discretionary basis, using the Information to help us. We will
manage each pot in your Portfolio with reasonable care and skill. You authorise us to enter into any
kind of arrangement or transaction on your behalf. We may invest any amount or any proportion of
your Portfolio in any one investment or investment type, and we may do so in any currency, and on
any market.
- If we decide to buy or sell an asset on your behalf, we will use the Information to decide if the
proposed transaction is suitable for you.
- We will provide you with a suitability report which explains our Portfolio management strategy,
and we will amend that report if the Information changes.
- We may make common investment decisions, which apply to a number of customer portfolios including
yours.
- You accept that we cannot guarantee the performance of any particular investment; that investments
carry risks; and the risks include those described in section 58.
- If you send us money, without telling us which Pot you want to pay it into, we reserve the right
to allocate it to your/one of your pot/s.
- Initial and Minimum
Investment
-
The minimum investment amount for each product is:
ISA & General Investment Account
LISA
Pension
Junior ISA
If you make a withdrawal from an ISA or your GIA, and the value of the ISA or
GIA falls below £500, we may convert the remaining investments into cash. You may withdraw this cash
at any time. If you top-up the relevant ISA or GIA and the balance reaches £500, the cash will be
reinvested. In any event, we reserve the right not to perform any trades for Pots that have a value of £75 or less.
- Your Information
- To be a Nutmeg customer you must be at least 18. If you are a Registered Contact for a JISA you must also meet the conditions set out in section 50.
- To open an Account, you must be (one of) the named holder(s) of a UK bank account (UK Bank
Account).
- We are required to verify your identity when you join Nutmeg and periodically thereafter. When we
do this, we may use your personal data (as defined in European law) to carry out electronic searches
on private and public databases. We will keep records of the information we obtain, when we do this.
We may use credit reference agencies, and they will record the fact that an enquiry has been made.
You accept that we may do each of these things, and that our use of credit reference agencies will
generate a record of this kind. In some cases, we may need to ask for additional information or
documents from you. If this happens, we will send you a secure Nutmail and you agree to provide us
with the information and documents we ask for within a reasonable period. You accept that if you do
not do this, we may freeze your Account or take other action against you or with respect to your
Account.
- You acknowledge and agree that we will rely on any communication we believe to have been made by
you, or to have been duly authorised by you. You acknowledge we employ appropriate security measures
to verify your identity and agree to take all reasonable measures to keep your account secure and
not to disclose account details to a person not duly authorised by you.
Non-UK
Residents
- As a UK-based discretionary investment manager, our primary focus are UK residents. If you reside
or move outside of the UK, our ability to provide you with the Nutmeg Service will depend on the
evaluation of a combination of factors, such as your nationality and residency. This will help us
determine whether we have the necessary guarantees and permissions in place to serve you in
accordance with our legal and regulatory obligations.
If you opened an account with Nutmeg and
subsequently moved outside of the UK/EEA, you are required to notify Nutmeg. Nutmeg will then review
your account on the basis of the information provided and determine whether you can keep your
account, as outlined below.
- Prospective Customers
For the purpose of this section, prospective customers are identified as members of the public that
wish to use the services provided by Nutmeg.
- EEA Residents
Additional documentary evidence may be requested during the account opening process to ensure
that all our Anti Money Laundering checks can be performed correctly.
- Non-EEA Residents
Nutmeg cannot currently accept new customers who reside outside of the EEA area.
- Existing Customers
For the purpose of this section, existing customers are identified as Nutmeg customers that intend
to or have already moved outside of the UK/EEA.
- EEA Residents
Additional documentary evidence may be requested as part of the account review process to ensure
compliance with the relevant regulations.
- Non-EEA Residents
Nutmeg may not be able to continue to offer its Services to an existing customer who moves
outside of the EEA. Consequently, in such circumstances you agree that Nutmeg may take steps to
suspend or close your account.
If you have any queries about the foregoing section, please do not hesitate to contact our Customer
Support team at support@nutmeg.com
- Investing
- The base currency of your Portfolio is Sterling.
- We invest primarily in Exchange Traded Funds, although we may also invest in other Exchange Traded
Products such as Exchange Traded Commodities.
- We may invest in fixed interest securities issued by governments, governmental bodies,
quasi-governmental bodies, local authorities, and corporate bodies in the UK and overseas.
- We may invest in authorised and unauthorised collective investment schemes in the UK and overseas.
- We may invest in equities, including investment trusts, listed on recognised stock exchanges in
the UK (e.g., the London Stock Exchange) and overseas (e.g. the New York Stock Exchange).
- Best Execution
-
Under the terms of the Markets in Financial Instruments Directive (“MiFID”), we are required to put
in place an order execution policy and to take all sufficient steps to obtain the best possible
result on behalf of our clients when executing orders.
Quality of Execution
We are a discretionary investment manager. We aggregate all client orders and trade on a
consolidated basis.
When executing these orders, we take all sufficient steps to achieve best execution. We have
procedures designed to obtain the best possible result for you.
-
We will determine the best possible result by considering the price of the relevant investment, and
the total cost of buying or selling it.
Execution factors
In executing an order under our execution policy, we will take into account the following execution
factors:
-
Size and nature of the order—to determine the most relevant execution platform/trading
method;
-
Likelihood of execution and settlement—to evaluate which counterparties Nutmeg should
engage with;
-
Price—Nutmeg will only accept the best available price when dealing with multiple
counterparties
-
Speed—Allowing sufficient time for competing quotes from counterparties
-
Cost—Will be considered to evaluate what gives the best possible net outcome, and
-
Any other relevant considerations.
When executing a customer order, we will take into account the following criteria for determining
the relative importance of the execution factors:
-
The characteristics of the customer including the categorisation of the customer
-
The characteristics of the customer order
-
The characteristics of the financial instrument that are the subject of that order
-
The characteristics of the execution venue to which that order can be directed
-
Execution venues
We will use our discretion to determine the appropriate execution venue for a trade, which may
include, without limitation, an exchange, multilateral trading facility or a systematic
internaliser.
Our main execution venue is the London Stock Exchange, using a Retail Service Provider platform,
Bloomberg EMSX, or an Authorised Participant. We may also deal directly with certain execution
counterparties.
We will only execute trades on a regulated market, a multilateral trading facility or with a
systematic internaliser.
-
Review and Monitoring
We will review the effectiveness of our order execution arrangements (including the venues that we
use) and the execution policy on an annual basis (and also on an ad hoc basis in response to any
material change affecting a relevant execution venue). We will monitor our compliance with the
policy, making enhancements to it or to our order execution arrangements where necessary and
advising you of such changes and/or our on-going compliance with the policy, as appropriate.
-
In exceptional circumstances, such as technical faults leading to loss of connections with an
execution venue, we may have to use other execution methods than those listed above.
The instruments that we may trade in include the following:
-
UK and Non-UK ETFs
-
Fixed Interest Securities, e.g. Bonds and Gilts;
-
Collective Investment Schemes, and
-
UK and Non-UK equities.
The risks of these types of Investments are covered in Customer investment risks section.
-
We only trade on a bi-weekly basis. However, we may change the day we trade, and we reserve the
right to trade more frequently if we regard it as necessary or desirable to do so.
-
A summary of Nutmeg’s best execution will be published in April each year, in accordance with our
MiFID II obligations, detailing the quality of execution obtained and our top five execution venues.
- Trade Aggregation
& Allocation
-
Nutmeg’s policy is:
-
To follow the requirements of the Financial Conduct Authority’s rules including in COBS 11.3.7A
EU and COBS 11.3.8A EU relating to client order handling.
-
To only execute transactions when checks confirm that the client and market orders are equal.
Trades will only be executed on the basis that they can be filled 100% in volume. The trades
will then be allocated to the customers in the proportion that was calculated before the trade
was executed.
In addition, FCA rules require us:
-
To not carry out a client order or a transaction for Nutmeg’s own account in aggregation with
another client order unless the following conditions are met:
-
It must be unlikely that the aggregation of orders and transactions will work overall to the
disadvantage of any client whose order is to be aggregated;
-
It must be disclosed to each client whose order is to be aggregated that the effect
of aggregation may work to its disadvantage in relation to a particular order.
-
It must allocate the related trades in accordance with its order allocation policy. This
ensures all deals can be filled 100% in volume before execution and trades cannot be
partially executed
- Fractional Investing
- When making investments on your behalf, if the amount to be invested does not allow us to purchase
a whole share, we will round down to the nearest number of whole shares. For the remaining funds, we
will create fractional entitlements ensuring the Portfolio is always balanced and constructed in
line with your chosen risk.
- If you hold fractional entitlements, you will have sole beneficial interest to the entitlement. We
will hold these on your behalf in line with the FCA Rules (see section 14 below).
- In the case of an in-specie ISA transfer out, we will liquidate all fractional holdings and send
the Portfolio as a combination of whole shares and cash.
- Custody and Nominee
Companies
- Nutmeg is your Custodian and passes all client assets to a Sub-Custodian, chosen by us in
accordance with the FCA Rules. Your investments will be held by the Sub-Custodian (a) in compliance
with the FCA Rules; (b) securely in a pooled client account; and (c) without being mixed with our
assets or the assets of the Sub-Custodian.
- Nutmeg is not responsible for the acts, omissions or defaults of the Sub-Custodian, only for
taking care in its choice and monitoring of the Sub-Custodian.
-
Nutmeg will keep a record of your entitlement to investments in a pooled client account. In these
situations:
-
your individual entitlements may not be identifiable by separate certificates, physical
documents or equivalent electronic entries on a register;
-
when we receive investments or money on behalf of more than one client in connection with pooled
holdings (for instance in a bonus or rights issue or takeover) we will allocate them between
clients on a pro rata basis, in accordance with FCA Rules;
-
if a share issue or other corporate event favours small investors your actual allocation may be
less than it would be if your investments were registered in your own name; and
-
sometimes amounts or investments may arise which would not have arisen if the investments had
been registered in your own name. You may not be entitled to any such additional amounts or
investments.
-
Our Sub-Custodian will inform us of any rights issues, takeover offers, capital reorganisations,
conversion or subscription rights (collectively “corporate actions”) that affect or relate to your
investments. We will act on your instructions in relation to such corporate actions, including any
standing instructions that you have given to us.
Our Sub-Custodian will be responsible for claiming and receiving dividends and other entitlements
automatically arising in respect of your investments. We will reflect these entitlements in your
account and hold them in accordance with the FCA Rules in respect of Client Money.
- Sometimes our Sub-Custodian may receive dividends, interest and other rights or payments after
local withholding taxes or other deductions. You accept that our Sub-Custodian may, when required to
comply with legal or regulatory requirements, withhold or deduct tax or other amounts from such
payments. Costs incurred by our Sub-Custodian when complying with these obligations may be deducted
from your Account. If you are eligible to reclaim any such withholdings or deductions it will be
your sole responsibility to do so.
- Nutmeg and our Sub-Custodian will not lend your investments to anyone else, or use them to raise
finance.
- For certain products where we use a third-party administrator (e.g. Personal Pension) we will act
as Custodian. By accepting these terms of business, you grant authority to Nutmeg to provide
information to the third-party administrator to take such action in relation to your investments as
Nutmeg may be required to under the arrangements that have been agreed with us or the third-party
administrator.
- In some cases, transactions will be subject to netting. You agree, in respect of any transaction
which is subject to netting, to discharging the settlement obligations on a net basis in accordance
with the rules of the relevant central counterparty ("CCP"), central securities depository ("CSD").
You acknowledge that if net settlement takes place then Nutmeg will only be obliged to account to
you for any investments or cash in connection with the transaction on a net basis.
-
Transactions executed on your behalf may settle in the books of a CCP, CSD or other body or
Sub-Custodian combined with transactions for the account of other clients of ours. If this happens
then we will allocate between our clients the cash or investments received by it or on its behalf as
a result of the settlements in accordance with the client trades, we have notified to it. If we
receive cash or investments for trades that were intended to settle at the same time (but which, for
whatever reason, do not do so), then we will allocate that cash or investments received by it on the
following basis:
-
in accordance with any priority for settlements determined by us prior to the transactions
taking place;
-
if transactions have the same priority, then the allocation will be in order of time, by
reference to the intended settlement date of the transaction which was specified to us, so that
the earliest in time will settle first in each case;
-
where transactions have the same priority and intended settlement date, then the allocation will
be by value so that the larger or largest trade by value (not by number of units or size) will
be settled first in each case.
-
where these allocations are necessary, they will also be subject to the operation of the
relevant CCP, CSD, Sub-Custodian or other entity. Such operations may include a netting rule or
practice, automatic splitting of unsettled transactions or other automatic aggregation,
splitting or allocation.
-
In order to settle transactions on your behalf, we will need to deal with the other party to the
transaction (the “counterparty”) and sometimes transactions will be settled through a CCP or CSD or
other depositary transfer agent or similar body. When we deal with these parties, it does so as your
agent, in good faith and on the basis, that:
-
Nutmeg is not responsible for any default or failure of the CCP, CSD or other counterparty or of
any depositary or agent of those entities; and
-
the delivery of any securities or payment to you as a result of the transaction is entirely your
risk and not that of Nutmeg.
If in future we hold overseas investments, certain overseas markets may require us to register your
investments in the name of another Sub-Custodian. We will inform you of any additional terms in
advance.
- You expressly authorise us to grant our Sub-Custodian the right to retain any cash, or sell any
investments, in order to meet any liabilities arising in connection with the provision of its
services to us or you, and to deduct or set-off any amount owed to it from that cash or those
investments for that purpose.
- We are not obliged to tell you before terminating our relationship with a Sub-Custodian and
appointing a replacement; but we will tell you, if we do.
- Client Money
- If we hold uninvested money for you, we will take reasonable steps to identify a bank with a
competitive interest rate and deposit that money with that bank (the Bank), together with other
clients’ money. The rate of interest payable on that account will be determined by the Bank.
However, the amount that is credited to your Account will be determined by the Bank and us, and we
will tell you what it is from time to time. Any interest will be calculated on a daily basis and
paid to your Account every three months. We may decide not to pay this interest to your Account
until it reaches a minimum threshold.
- Your money is held in a designated client bank account by the Bank, in compliance with the FCA
Rules. This means, amongst other things, that our Client Money Bank will hold your money in a
designated client bank account which is an account kept separate from our own funds.
- When considering which Client Money Bank to use, we will exercise due skill, care and diligence
and will periodically review the adequacy and appropriateness of any bank or credit institution
where your money is deposited and of the arrangements for holding your money. It is important to
note that we are not responsible for any acts, omissions or default of a credit institution or bank
chosen by it but only for taking care in its choice and monitoring.
- Your money may be pooled with money belonging to our other clients. If it is, you will not have a
claim for a specific sum in a specific account. Your claim would be against the pool and, if there
is a shortfall, you would share pro rata in that loss.
- The designated client bank account may be outside the UK if the Bank has confirmed that (a) it
holds the money in that account as trustee; and (b) it is not entitled to combine or set off that
money in any way. Even so, if the Bank cannot or does not meet its obligations, the money in that
account may not be treated in the way that it would have been treated, if the account had been held
in the UK.
- We may pass your money to a settlement agent outside the UK. If the agent cannot or does not meet
its obligations, your money may not be treated in the way that it would have been treated if the
settlement agent was in the UK.
- If any money held by the Bank is unclaimed after 6 years, we may stop treating it as your money
and include it in our own assets. We will only do this after we have taken reasonable steps to trace
you and return the money to you. If you later show a valid claim to this money, we may pay you what
you are owed.
- If we undertake a transaction, and that involves transferring your money or investments to an
exchange, clearing house, broker, settlement agent or other relevant party as Margin, Collateral or
for another reason, your money or investments may be at risk. You accept that this is the case.
- We are not obliged to tell you before terminating our relationship with the Bank and appointing a
replacement; but we will tell you, if we do.
- Income
- Income earned on the investments held in your Portfolio, which is payable to you, will be remitted
to your Portfolio and may be reinvested.
- Compensation
- Nutmeg is covered by the Financial Services Compensation Scheme (FSCS). You may
be entitled to compensation from the FSCS if we cannot meet our obligations to you. However, this
does not apply simply because an investment does not perform as expected. More information is
available from the FSCS: www.fscs.org.uk.
- Insolvency
- If we are declared insolvent, your investments will be sold. We will make reasonable efforts to
obtain the best market price for you.
- Cash held outside a tax wrapper will be returned to your UK Bank Account. Our nominated custodian
will contact you within 90 days of the declaration of insolvency about the cash held in a tax
wrapper.
- If Nutmeg and our nominated custodian are declared insolvent, you will need to register a claim
with the FSCS, if applicable.
- Deposits
- We accept payments from a UK bank account and debit card in your name, direct debit and bank
transfer. When determining whether to accept a payment from you, in accordance with our legal and
regulatory obligations regarding financial crime, we reserve the right to reject any payments where
it is found you are not the beneficial owner of the funds.
- We do not accept credit or prepaid cards as payment methods.
- When you make a payment by debit card or direct debit, your payment will be processed by a third
party that is subject to the Payment Services or Electronic Money Regulations. These payments
typically take 3 business days to reach us (with a maximum of 7 business days), during which time
the money is held by the relevant service provider in an account protected by the relevant
regulations.
- Fair Usage Policy
- We reserve the right charge you an additional fee to cover the costs we may incur to process what
we deem to be an unreasonably high number of payments on your Account in a limited period of time We will
provide you with 30 days’ written notice before applying such a fee to your Account.
- Cash Holding
- When choosing to invest in a stocks and shares ISA or in a general investment account, Nutmeg offers
the possibility to open and maintain an investment pot comprised entirely of cash holdings (pound sterling).
In this pot, your money will earn interest at the current Bank of England (BOE) bank rate minus 0.35%. If the
BOE bank rate is below 0.35% you will not receive any interest. For more details on the current interest
rate, please see the Fees section.
You acknowledge that this investment pot is designed to enable investing
in other Nutmeg Services and is not a “cash deposit account” or a “cash ISA”.
- Source of Funds
- In order to comply with the Money Laundering Regulations, we may occasionally need to ask for
proof that a payment received by Nutmeg has originated from your UK Bank Account. We may also have
to ask for evidence that your wealth is from a legitimate source and you are the beneficial owner of
the funds. You agree to comply with any reasonable request we make for these purposes.
- Withdrawals
- We will only pay money to the UK Bank Account. If you request a withdrawal within 60 calendar days
of a debit card payment we reserve the right to return the funds to source.
- If you cancel a direct debit or debit card payment after we have claimed or received the funds, we
will return the money and debit your Account. If we need to sell some of your assets to settle
amounts outstanding on your Account, we will do so, and you may incur a profit or loss. If your
Account becomes overdrawn, we will ask you to settle that overdraft, and you agree to do so within a
reasonable period.
- We typically only transfer cash to or from you. In exceptional circumstances where we agree to
transfer an account 'in-specie', we will levy a charge per investment (line of stock). The charge is
included in the Schedule of Fees.
- We reserve the right to only make external payments to and to accept payments from the bank
account stated in your Account.
- Data Security
- In order to provide Services to you we need to collect, use, share and store personal financial
information about you, including your personal information. We make every effort to protect the
privacy of our customers' personal information. Other than as set out below and within our Privacy
Notice, your personal information will not be disclosed, transferred or sold to any third party for
any purpose.
- You authorise us to use any of your personal information which is relevant to our provision of
Services to you for all reasonable purposes in relation to your Portfolio. We may retain and
continue to process your personal information after the termination of the Agreement or any other
agreement between you and us. Your personal information may be transferred or disclosed to third
parties where necessary. This enables us to provide Services to you and to discharge our obligations
to third parties, including relevant stock exchanges, government agencies and regulators. Your
personal information may be transferred outside of the European Economic area.
- Only with your consent, your personal information may be used by us in order to provide you with
information and marketing materials in relation to our other products and Services. If you do not
wish your personal information to be processed in this way, please notify us by Nutmail or by
contacting the Data Protection Officer at dataprotection@nutmeg.com.
- You can request copies of your personal information held by us or any service provider we appoint
to provide you with the Services under the Agreement by notifying us by Nutmail or by contacting us
at support@nutmeg.com. Whilst the information will be
provided free of charge, we reserve the right to charge a fee if the request is complex or
manifestly excessive. You should notify us if any of the information held is incorrect.
- If you have been introduced to us by one of our partner organisations, you authorise us to share
your personal information with them.
- Occasionally we may receive requests from third parties, such as financial advisers, for
information that we hold on file for you. These requests are often coupled with a lengthy
questionnaire requesting details of your holdings with us. In this instance we will verify the
documentation sent to us and supply the relevant information. We will inform you via Nutmail that we
have released your information and if there is any doubt about the validity of the request, we will
always seek your confirmation by Nutmail before passing over any information.
- Communications
- We may communicate with you at any time including, when appropriate, by telephone in order to
deliver the service under the terms of our contract.
- You can give us instructions and notifications about your Portfolio using Nutmail or our website.
We are not obliged to act on an instruction. If we do act on an instruction, we will do so as soon
as reasonably practicable after we have received it.
- We may act on any instruction or notification we believe in good faith is from you, without
carrying out any further checks or investigations. We will not be liable for following an
instruction or notification which is not genuine; or for investigating, not investigating, or not
following any instruction or notification that we believe may not be genuine. We will not be liable
for any error of transmission or misunderstanding, or for the fraud of any other party (except in
the case of our negligence, wilful default or fraud as described in section 30 below). We are not
obliged to acknowledge receipt of your instructions.
- We will send all notices, information and other correspondence to you by Nutmail or to the email
address set out in the Client Agreement Form or designated by you in your Account. If we send you a
letter, it will be addressed to you at the postal address set out in the Client Agreement Form, or
in your Account, and will be deemed to be delivered on the second business day after posting.
- We record and monitor the telephone conversations and electronic communications that we have with
you for training and monitoring purposes. We will store these records for at least seven years,
during which they will be available to you on request.
- We cannot guarantee that electronic communications will be successfully delivered to you, or that
they will be secure and virus free. We will not be liable for any loss, damage, expense, harm or
inconvenience caused as a result of an email being lost, delayed, intercepted, corrupted or
otherwise altered or for failing to be delivered for any reason beyond our reasonable control.
- All communications in relation to the Services will be in English.
- Statements and
Reports
- If we provide discretionary management services to you, we will send an electronic statement and
valuation report every quarter.
-
The valuation report will outline the status of your investments, how they have changed within the
valuation period, and will be structured in two sections: the former providing an overview of your
Nutmeg portfolio inclusive of all pots, and the latter detailing the breakdown of all your
individual pots. The valuation report will include the following information relation to your
investments:
-
Your overall portfolio
- Key figures
- Pots summary
- Your investments
- Contributions and withdrawals
- Current asset allocation
- ISA Status
-
Your pots
- Key figures
- Your pots
- Current asset allocation
-
Appendices
- Cash statement summary
- Stock transaction activity
- If your employer requires confirmation that we have provided discretionary management services to
you, we will provide this electronically, free of charge. If an original signed copy letter is
required, we can write to you. Requests to issue certification letters should be sent to us by
Nutmail.
- Shareholders' Rights
- If you ask us to do this in writing, we will arrange for you to receive the Key Investor Information Document
(KIID) issued by a relevant manufacturer of ETFs in which your Account is invested.
- Complaints
- If you have a complaint about our Services, please tell us by Nutmail or by emailing our Head of
Customer Support at support@nutmeg.com. We will acknowledge
your complaint within 5 working days. After that, we will investigate your complaint and keep you
informed of progress. Within 8 weeks of receiving your complaint we will either (1) send you a
“final response”, which accepts your complaint and offers redress or remedial action; or offers
redress or remedial action without accepting your complaint; or reject your complaint and explain
why we have done this; or (2) explain why we have not been able to complete our investigation, and
inform you that you may then refer your complaint to the Financial Ombudsman Service
(FOS)
- The address of the FOS is Exchange Tower, London E14 9SR www.financial-ombudsman.org.uk. Certain customers, such
as larger companies and trusts, may not have access to the FOS.
- Our Duties to You
No provision of the Agreement will be deemed to restrict, qualify or exclude any duty owed to you under
FSMA or the FCA Rules. We do not, however, owe you any further duties except as expressly set out in the
Agreement.
- Conflicts of Interest
-
We have a Conflict of Interest Policy, which is reviewed at least annually. We are committed to
taking measures to recognise, supervise, examine and resolve conflicts of interest. We recognise
that it is not possible to eliminate all sources of conflict of interest; however, safeguarding
customers' welfare remains our primary objective. This policy encompasses the relationships with
customers and third-party contacts.
Definition
We define a conflict of interest as being either:
-
between us and you as a customer; or
-
between yourself and another customer where your interests are materially affected.
Situations
We have identified areas where a conflict of interest may arise. They include, but are not limited
to:
-
services in different capacities at the same time;
-
providing advice or management;
-
acting for more than one customer in a transaction;
-
holding information on other customers that would affect you or them if it was disclosed;
-
receiving gifts or entertainment which could conflict with our duties to you;
-
employees pursuing activities or personal relationships potentially detrimental to you; and
-
personal account holdings in companies or other investments being recommended by us.
Procedures
Protocols have been developed and introduced to manage conflicts of interest. Our employees are
provided with relevant training about the protocols and standards of conduct expected thereafter.
Our management remain responsible for ensuring the protocols and resources are sufficient to
identify and attend to a conflict as it may arise.
We maintain an internal log of conflicts that arise, listing how each conflict was monitored and any
solution which was developed and applied to resolve the problem and to prevent the customer's
interests from being disadvantaged.
We have in place protocols to prevent unauthorised access or inappropriate dissemination of
information.
Where our functions could create an internal conflict our duty lines are kept separate and
individual management and reporting structures are established. The operations functions are
maintained and conducted separately from the front office functions and in both an appropriate level
of qualification, expertise and supervision is applied.
Renumeration
Staff remuneration is by means of a basic salary which is not linked to the underlying performance
of the company. A remuneration committee agrees and monitors awards to achieve consistency and
equitability and does not lead to conditions which may foster conflict.
-
We do not give or receive inducements. i.e. fees or commission from third parties, except acceptable
minor non-monetary benefits.
Minor non-monetary benefits will be acceptable with respect to the service that we provide to you
if:
- I. they are intended to enhance the service that we provide to you; and
- II. are of a scale and nature that they objectively do not impair our duty to act honestly,
fairly and professionally in your best interests.
Examples of acceptable minor non-monetary benefits include, but are not limited to: Participation in
seminars and other training events on the benefits and features of a specific financial instrument
or an investment service: and hospitality of a reasonable minimal value, such as food and drink,
during a business meeting, conference, seminar or training event etc.
Any research that we receive from third parties will be paid for directly from our own
resources.
Personal account dealing rules are enforced for each member of staff.
-
Resolution
Where we are unable to resolve a conflict of interest we will notify you formally by email. This
disclosure will permit you to evaluate whether it is appropriate to continue using our services in
respect of the pertinent conflict.
Where we have examined the conflict of interest and its cause we may inform you of our decision not
to act on your behalf if we determine no other course of action is possible.
- Liability
- We accept responsibility for any loss, damages or costs suffered or incurred by you only to the
extent that such loss arises directly from our gross negligence, wilful default, fraud; and/or the
breach of any duties which we owe you under FSMA, rules and regulations made under FSMA or FCA
Rules. We will not be liable for any other losses, damages or costs suffered or incurred by you.
- We will take reasonable care in the assessment and appointment of Sub-Custodians, pension scheme
administrators, bankers, counterparties, agents and other third parties. We accept responsibility
for any loss, damages or costs incurred by you only where these arise from our, negligence, wilful
default or fraud in the assessment or appointment of such persons. We will not be responsible in any
other circumstance for the actions of any such third parties.
- All tax matters relating to your own tax position are your own responsibility and we have no
responsibility towards you with regard to your personal tax position.
- Where you have selected a Nutmeg Personal Pension, we do not take responsibility in relation to
the transfer of benefits from another registered pension scheme to your plan. The responsibility of
Nutmeg for any money or investments only arises when such money or investments become part of your
plan.
- You will be liable to us for any cost, expense, loss or any damage incurred by us (including but
not limited to professional advisors' fees) arising from your breach of the Agreement, and/or your
negligence, wilful default or fraud.
- Force Majeure
- We will not be held responsible for failing to fulfil our contractual obligations as a result of
any situation, condition or event beyond our reasonable control (Force Majeure
Event).
- A Force Majeure Event may include but is not limited to an act of Parliament, an act of God, acts
of terrorism, strike or riot, extreme movements in the price of a security, the breakdown of
communication or electronic equipment or anything else that may reasonably impede our ability to act
in line with the Agreement.
- We will take all reasonable steps to act in your best interests when a Force Majeure Event occurs
and may suspend or alter part or all of the Agreement, to the extent that we can no longer comply
with the terms in question.
- Amending the
Agreement
- We may amend this Agreement at any time by providing you with reasonable written notice, unless we
are required to implement any changes with immediate effect to comply with our legal and regulatory
obligations. You will be deemed to agree to any changes unless you notify us of your objection
within 30 days of receiving notice. If you do not accept the amendment, you will be required to
terminate the Agreement in accordance with Section 38 below.
- Assignment
- You do not have the right to assign or transfer your rights or obligations under the Agreement to
any other party other than that title to the JISA may be transferred to a new Registered Contact in
accordance with the relevant regulations and on the basis provided in these terms.
- We may assign our rights and obligations under the Agreement at any time. We will tell you before
such an assignment takes effect.
- Delegation and
Referrals
- We reserve the right to perform any of our obligations to you through the agency of an associate or
any third party of our choosing. This means that we may appoint another person or entity to provide the
Services to you under the Agreement and you agree that we will not need your consent to do so. We will
take all reasonable steps to satisfy ourselves that any person whom we appoint to provide any Services
to you or to perform any of our obligations on our behalf is suitably competent to do so. We will
ensure that all such parties commit to provide you with best execution as set out in the FCA Rules
where this is applicable.
- We may offer to refer you to third parties that can provide additional services. We will not do this
without your agreement. We may also accept referrals from third parties.
- Governing Law
- The Agreement and any dispute or claim arising out of or in connection with it will be governed by
and construed in accordance with the law of England and Wales.
- The parties irrevocably agree that the courts of England and Wales will have exclusive
jurisdiction to settle any dispute or claim that arises out of or in connection with the Agreement.
- Third Parties
A person who is not a party to the Agreement cannot enforce or enjoy the benefit of any of its terms
under the Contracts (Rights of Third Parties) Act 1999.
- Closing Accounts
- You may terminate the Agreement at any time, by giving 30 days’ notice by Nutmail or through the
website, subject to the settlement of all outstanding transactions. The charges within the Schedule
of Fees will apply. We may pass on to you charges levied by third parties as a result of the
termination of the Agreement. Transactions already in progress will be completed in the normal
course of business.
- We may terminate the Agreement by giving you 30 days' notice by email, subject to the settlement
of all outstanding transactions.
- We reserve the right to terminate your account with immediate effect in the event we suspect it is being used to facilitate fraudulent activity, and to administer the process and any funds within it in accordance with our obligations under financial crime prevention regulations.
- On termination of the Agreement, we will, following payment in accordance with clause 35.1 and
settlement of all outstanding transactions, re-register your assets and transfer your cash as you
reasonably request. If you make no reasonable request, we will take steps to re-register your assets
in your name and to transfer your cash to you at our discretion.
- After you close your Account, it is possible that further monies may reach your account (for
example, dividend payments). However, if the balance of your account is less than £25, six years
after the closing of your Account and we have made at least one attempt to contact you to which you
have not responded within 28 days, we reserve the right to pay that small balance to a registered
charity of our choice.
- After you close your Account, it is possible that further monies may reach your Account (for
example, dividend payments). However, if the balance of your Account is less than £1, six months
after the closing of your Account, we reserve the right to pay that small balance to a registered
charity of your choice.
- Death
- We cannot help with the administration of a deceased customer’s account until we receive an
original or certified copy death certificate (Death Certificate).
- When you die, your ISA assets will lose their tax-free status. This means the income and capital
gains on your ISA investments will no longer be tax exempt. If you were the sole owner of an ISA or
LISA, we will sell the stocks and shares in your Account(s) and hold the proceeds in cash for the
benefit of your estate. Once the process has been completed, and the funds administered, the Account
will be closed. What happens to a JISA on the death of the Eligible Child who is the beneficial owner of the JISA is set out in section 52.
- Nutmeg does not accept Additional Permitted Subscriptions (APS). If you die, and
your surviving spouse or civil partner would like to use any APS that might be available, they will
need to find an ISA manager that accepts APS. When we receive appropriate confirmation of your death
(clause 36.1), we will work directly with the new ISA manager by confirming the available APS
allowance, and arrange the transfer of your assets, where appropriate. This is not applicable to our JISA which is only open to children under 16 who may not legally be married or enter into a civil partnership.
- Cancellation
-
You have 30 days to cancel your Account; ISA, Lifetime ISA, Junior ISA or Nutmeg Personal Pension.
In the case of an Account or Nutmeg Personal Pension, the cancellation period will begin on the
later of (a) the date on which the relevant Account or Pension was opened; and (b) the date you
received a copy of these Terms and Conditions, and any other pre-contractual information about the
relevant product.
In the case of an ISA, JISA or LISA, the cancellation period will begin on the date of you make your 1st subscription you receive notice of your cancellation right accordance with these terms.
- If you wish to cancel, you must send us a Nutmail or email to support@nutmeg.com, expressly stating that you wish to
cancel. We will accept notices of cancellation only from the account holder (Registered Contact for a JISA).
- If you cancel a product and we have purchased investments for you during the cancellation period we will sell the investments in the relevant Account, wrapper or pot. We will not be responsible for any market loss you incur as a result. If you cancel at a point in time when we have not yet invested your money, (this will be visible from your Nutmeg dashboard where your contribution will be categorised as ‘unallocated cash’ ) then you should contact Customer Support and request to withdraw the funds.
- Provided you cancel your ISA subscription within the 30-days cancellation period detailed in this section we will treat you as though you have not subscribed to the ISA. The amount subscribed will be exempt from UK income and capital gains tax on any income or gains arising from subscription during this period. If you do not exercise your right to cancel your subscription within the 30-days cancellation period, then your ISA will remain open and will count towards your subscription limit for that year (except for JISAs). These terms and conditions will remain in effect until terminated as provided in these terms.
- We are not obliged to reverse a subscription to an ISA, JISA or LISA when we cancel these products.
- When you open a Nutmeg Personal Pension, you will be given the option to waive your right to
cancel that product. If you waive your right to cancel, we will open the Pension, all applicable
charges will begin to apply, and we will no longer be able to return of your pension contributions.
- Timing
These terms and conditions are effective from 2018.
- Additional Terms for Customers opening a Stocks and Shares ISA (ISA), Junior ISA (JISA) or Lifetime ISA (LISA)
The following sections (42-56) contain additional terms and conditions that will apply if you subscribe to an ISA, JISA or LISA. Each section should be read in conjunction with the Nutmeg ISA/LISA/JISA Application Form and/or Nutmeg ISA/JISA Transfer Form. as relevant to the type of stocks and shares individual savings account you are opening. With respect to JISAs only, “you” means the Registered Contact unless otherwise stated.
- Your investments will be registered in the name of our sub-custodian in accordance with the ISA Regulations. You will always be the beneficial owner of your investments. For JISAs the Eligible Child (whether or not he or she is also the Registered Contact) will always be the beneficial owner of the JISA investments.
- You must not use the investments and/or cash in your ISA/LISA/JISA as security for a loan except to the
extent permitted by the Individual Savings Account Regulations 1998 (the
Regulations).
- At your request, we will transfer all or part of your ISA/LISA/JISA investments (with the associated
rights and obligations) to another ISA/LISA/JISA manager, subject to HMRC's transfer rules. Additional terms and conditions that apply to JISA transfers are set out in section 56
- We will process any withdrawal or transfer request promptly and normally within the 30-day maximum
period stipulated by HMRC, subject to circumstances outside our control. Should you wish the
withdrawal or transfer to take place at a particular time, we will endeavour to meet this request.
However, in the case of transfers, we are reliant on the receiving manager and cannot guarantee to
do so.
- You authorise us to disclose to HMRC all such information as required by law. We will notify you
by email if, by reason of any failure to satisfy the provisions of the Regulations, your ISA becomes
void.
- We may delegate any of our functions or responsibilities as ISA manager in accordance with section 35.
- Important
Information about ISAs (not including JISAs and LISAs)
-
When you subscribe for an ISA, we will open an ISA and General Investment Account for you. Any
contributions you make outside of your ISA allowance (as determined by your ISA settings) will be
allocated to your General Investment Account.
Our default ISA settings will automatically renew your ISA for the subsequent tax year provided
you make a least one contribution to your ISA in each tax year.
For the avoidance of doubt, should you fail to make a contribution to your ISA in a given tax
year, your ISA will lapse for the following tax year and any subsequent contributions you make
will be allocated to your General Investment Account.
- You can only subscribe to one ISA in each tax year.
-
To subscribe for an ISA, you have to be a UK resident aged 18 or over.
The agreement will commence on the day we have both a valid application and receipt of your first
subscription or, where you are transferring to us from another ISA manager, on the day we have both
a valid transfer application form and receipt of the proceeds of transfer from your previous ISA
manager.
-
You are responsible for maintaining your ISA settings which determine whether your deposited funds
are allocated to an ISA or General Investment Account. Your ISA settings are available in your account
dashboard. Should you have any queries or concerns about your ISA settings, please contact support@nutmeg.com.
- Investing in an ISA
- Investments into an ISA may be by bank transfer, debit card, transfer of cash from an existing
Portfolio held with us or by transfer from another ISA manager (subject to HMRC's ISA transfer
rules).
- The total value of contributions to be invested in any tax year will not be more than the maximum
permitted to be invested in an ISA by the Regulations for that tax year.
- All contributions made to your Account within each new tax year will be allocated first to your
ISA until the maximum subscription or your own pre-set limit is reached for that year. Once the
maximum subscription or your own pre-set limit is reached, future contributions will be allocated to
the non-ISA remainder of your Account, which we call the General Investment Account.
- Important Information on the LISA
- You are subscribing for a LISA for the current tax year and every subsequent tax year
Contributions made to
your LISA pot will count as the current year payments.
- You can only subscribe to one LISA in each tax year. You cannot open nor contribute to another
LISA with an
alternative provider if you have already contributed to your Nutmeg LISA this tax year as per “1
LISA a year”
rule.
- To subscribe for a LISA, you have to be a UK resident aged 18 or over.
- To open a LISA, your first subscription must be made before your 40th birthday. If you are
subscribing by debit
card, the subscription date will be the day on which you make your first payment, but funds may take
3 working
days to clear into your LISA.
- The Agreement will commence on the day we have both a valid application, receipt of your first
subscription.
and is subject to HMRC checks. In the event that HMRC reject your application we will advise you
within 48 hours
and seek to assist you in clarifying any issues or concerns. If HMRC cannot confirm your application
is accepted
within 15 days, we will return your funds to you and close the LISA.
- Investing in a LISA
- Investments into a LISA may be by debit card. Other payment methods may be available over time. We
will tell
you when this happens.
- You may only contribute to your LISA until the day before your 50th birthday.
- The total value of the contributions to be invested in any tax year will not be more than the
maximum permitted
to be invested in a LISA by the Regulations for that tax year. The current LISA allowance is £4,000
and forms
part of your overall ISA allowance currently £20,000.
- Government LISA Bonus
-
If your LISA contributions qualify for a government bonus under the Regulations, we will claim and
apply that
bonus to your LISA account in accordance with the Regulations.
From the 6th May 2018 the Bonus claim period will run from the 6th of the previous month to the 5th
of the next
month (e.g. 5th May to 6th June).
Nutmeg will claim the 25% bonus on behalf of the LISA investors on new qualifying additions made
during the
previous bonus claim period.
- Bonus rates are set by the government and are subject to change. Nutmeg will communicate any
changes in this
rate to you.
- Withdrawals of your LISA Investment
-
You may make withdrawals from your LISA at any time. Partial withdrawals are only allowed in the
event that you
are using the funds to pay some or all of the deposit on your first home purchase and wish to
maintain the rest of
the funds within your LISA to assist with your retirement plans, subject to a minimum remaining
balance of £100.
Other than in these circumstances you can only make full withdrawals with subsequent closure of your
LISA. For the
avoidance of doubt, should you choose to withdraw from your LISA, you cannot re-open a LISA with
Nutmeg.
In the event that you are due an outstanding Government Bonus on your account, we will need to wait
for this to be
paid before processing your request to withdraw as we will need to calculate the penalty based on
the total value
of your LISA including this Bonus. It may take up to 9 weeks for the bonus to be paid, funds traded
and settled
before payment issued.
-
In accordance with HMRC rules, a penalty deduction will be applied to a withdrawal unless:
-
it is made within 30 days of opening the LISA*
-
it is made on or after your 60th birthday; or
-
it will be used to pay some or all of the deposit on your first home purchase and:
- takes place at least 12 months after the date of your first subscription;
- the home you choose to buy is in the UK, and the purchase value is no more than £450,000;
and
- meets the other requirements of the HMRC defined conditions.
- Please refer to our support
article that
contains important information on how to facilitate your first home purchase
- You die or are diagnosed as suffering from a Terminal illnes
- *Individuals who open a LISA and notify their LISA manager of their exercise of this right to
cancel within
a 30-day period are exempt from UK income and capital gains tax on any income or gains arising
from any
payment made to the account. In this case, payment does not count as a current year payment to a
Lifetime ISA.
The LISA will be closed, and we will exclude the withdrawn (or cancelled) payment from bonus
claims and our
annual return of information.
- If the Regulations change and these requirements change, we will tell you.
- Nutmeg does not accept responsibility for any loss you sustain as the result of your decision to
make a
withdrawal.
-
Important information about our Junior ISA (JISA)
-
Eligibility for the Nutmeg JISA
A child will be eligible for a Nutmeg JISA (an “Eligible Child”) if, at the time the account application is made,
-
they are under 16;
-
they were born on or after 3 January 2011 or do not have a Child Trust Fund account;
-
they are resident in the UK or are a dependent of a Crown servant (typically a serving member of the Armed Forces); and
-
they do not already have a stocks and shares Junior ISA (whether with Nutmeg or another ISA provider).
-
You must inform us without delay if the Eligible Child for whom the JISA has been opened by you ceases to be meet the eligibility requirements for any reason. For example, if you become aware that they have another stocks and shares Junior ISA or if they have a Child Trust Fund.
-
Opening a Junior ISA - the Registered Contact
To open a JISA on behalf of an Eligible Child you will:
-
be a person over the age of 18 who has parental responsibility for the child (although you do not need to live at same address); and
-
you will have an existing Nutmeg Account in your own name, or you will open one with us. If you open a new Account with us for this purpose it may, if you wish, remain unfunded; and
-
provide us with any proof of parental responsibility we may reasonably request (this is at our discretion).
-
You will be the Registered Contact for the JISA unless and until you are replaced as set out in these terms. As Registered Contact you will be our point of contact for all statements and other correspondence regarding the JISA and you will be able to give instructions to us for its management. While you are the Registered Contact we will not communicate with or accept instructions from the Eligible Child.
-
There can only be one Registered Contact for the JISA at any one time. We will not accept instructions from the power of attorney of a Registered Contact.
-
Although we will communicate and take instructions from the Registered Contact the JISA will be opened in the name of the Eligible Child who will be the beneficial owner of all assets in the JISA.
-
If we become aware that you are applying to be or are Registered Contact for a JISA but do not have or cease to have parental responsibility for the Eligible Child we will not be able to accept instructions from you and you will need to be replaced as Registered Contact as soon as practicable.
-
Changing the Registered Contact
-
The Registered Contact may only be replaced in the following circumstances:
-
If:
-
A person who has parental responsibility for the Eligible Child applies to us to act as Registered Contact for the JISA; and
-
The existing Registered Contact has consented to the change (in such form as we require), except in certain circumstances prescribed by the Regulations e.g. the existing registered contact has died or cannot be contacted; or
-
If the Eligible Child reaches age 16 and contacts us requesting to assume authority for managing the JISA as Registered Contact. This replacement of the previous Registered Contact does not require their consent, subject to exceptional circumstances prescribed by the Regulations e.g. if the Eligible Child lacks mental capacity or is suffering mental disorder. Once the Eligible Child is appointed as the Registered Contact, we will accept instructions from and deal with the Eligible Child (and not the person with parental responsibility) from that point forward.
-
When the Registered Contact for a JISA changes it will be necessary for us to obtain new information, declarations and authorisations as part of the application for the new Registered Contact for the account. We will carry out a suitability risk assessment in respect to the new Registered Contact. The new Registered Contact must accept these terms and conditions. For more information on how to change a Registered Contact please contact us.
-
Withdrawals from the JISA
-
In accordance with the Regulations, no withdrawals may be made from the JISA before the Eligible Child’s 18th birthday unless:
-
The Eligible Child is terminally ill and a terminal illness claim has been agreed with HMRC in accordance with the ISA Regulations (although we reserve the right to make our own checks);
-
The Eligible Child dies – provided that we must receive evidence of the death that is satisfactory to us (usually a certified copy of the death certificate or the Coroner's interim certificate is sufficient although we reserve the right to ask for additional evidence).
-
If the Eligible Child dies the investments held in the JISA which arose before their death will continue to benefit from the tax advantages afforded to the JISA.
-
No further payments can be accepted into the JISA after the death of the Eligible Child. In this situation the Eligible Child’s personal representatives will have the choice of having the JISA investments transferred to them (or a beneficiary) or for us to sell the JISA investments and pay the proceeds to them (or a beneficiary).
-
Closure of the JISA
-
The JISA will be closed by us if:
-
We are notified of the death of the Eligible Child and given the evidence referred to above.
-
All the investments in the JISA are transferred to another ISA manager in accordance with applicable law leaving a nil balance.
-
We are instructed to do so by HMRC where the JISA is void.
-
Initial subscriptions to the JISA have been made, but subsequently stop with the result that due to charges the JISA has a nil balance (in accordance with our account closure process).
-
All the investments in the JISA have been withdrawn following acceptance of a terminal illness claim by HMRC.
-
Eligible Child reaches 18.
-
When the Eligible Child reaches the age of 18, we will no longer accept new payments into the JISA and we will convert the JISA into an “adult” ISA and the JISA will be closed. We will write to the Eligible Child asking for instructions to either sell the investments and withdraw from the JISA or to retain the investments and any cash in the new “adult” ISA which will be subject to the terms and conditions in section 42, Additional Terms and Conditions for ISAs.
-
Investing in a JISA
-
Only one stocks and shares JISA can be held for an Eligible Child at a time.
-
Nutmeg may accept payments into a JISA from persons other than the Registered Contact. We reserve the right to reject such payments in accordance with our obligations under financial crime prevention regulations.
-
Payments into the JISA can be made by bank transfer, debit card, transfer of cash from an existing Account with us or by transfer from a JISA in the Eligible Child’s name at another ISA manager (subject to HMRC's ISA transfer rules) or from a Child Trust Fund in the Eligible Child’s name. We cannot accept a transfer from an ISA to a JISA.
-
In accordance with the HMRC JISA rules, all payments made into a JISA shall be deemed to be a gift and are non-refundable.
-
JISA Transfers
-
Transfers into a Nutmeg JISA
If you are transferring funds to a JISA from a Child Trust Fund then the requirements which apply to us under the Regulations require us to wait until 30 days after you have applied for the transfer before we will contact your existing Child Trust Fund manager to arrange the transfer.
-
Transfers out of your Nutmeg JISA
These terms regarding transfer of the JISA apply in precedence to section 42 to the extent there are differences.
You can, at any time transfer the investments in the JISA to a Junior ISA with another ISA Manager. If you are transferring to another stocks and shares JISA you must transfer all of the investments and cash in the account. Partial transfers are not permitted.
To make a transfer to another JISA Manager you must apply to the relevant manager and they will provide you with the necessary transfer form and will the transfer with us. When we transfer the JISA investments we will sell the investments and transfer any cash balances to the new JISA Manager. We cannot transfer investments outside of the JISA tax wrapper.
If we receive income such as dividends or income on investments which we have transferred, we will send this income to the new JISA Manager.
-
Additional Terms for Customers with a Nutmeg Personal Pension
This section contains additional terms and conditions applicable to the Nutmeg Personal Pension.
Legal Agreement
-
We have entered into an agreement for Embark Services Limited (ESL) to operate the Nutmeg Personal Pension on behalf of our clients. ESL is a company registered in England, company number 2089815, and is authorised and regulated by the FCA.
-
The agreement for your plan is between you and ESL,and will consist of these Additional Pension Terms and the declarations contained in the on-line application.
-
The agreement for your plan will commence on the date that ESL accepts your application for membership of the Nutmeg Personal Pension.
-
Nutmeg is not currently able to support pension sharing orders. Should such circumstances arise, please contact support@nutmeg.com and we will discuss your options, such as facilitating a transfer to a provider which supports pension sharing orders.
Please see here for a full list of ESL’s Terms and Conditions.
-
Customer Investment Risks
-
We have set out below a summary of the nature and risks associated with the types of investments we may include in your Account, subject to your Objectives as notified to us. This information is not intended to constitute a comprehensive statement of all the risks to which investors might be exposed and there may be others that exist now, or which may arise in the future.
-
The main general risks associated with investing are as follows:
-
Past performance is not an indicator of future performance;
-
The value of investments may go down as well as up;
-
You are not certain to make a profit. You may make a loss. You may lose your entire investment;
-
The price or value of investments may fluctuate significantly;
-
If there are income distributions, they may also fluctuate significantly.
-
Market conditions may limit the ability for the investment manager to trade and/or adversely affect the price of an asset;
-
Investments in non-UK markets are subject to exchange rate fluctuations.
ETFs
-
We primarily invest in Exchange Traded Funds (ETFs), although on occasion we may invest in other Exchange Traded Products (ETPs) such as Exchange Traded Commodities (ETCs). For the purposes of these terms, these are collectively referred to under the term ETFs.
-
We invest in ETFs listed on recognised stock exchanges in the UK (e.g. the London Stock Exchange) and overseas (e.g. the New York Stock Exchange).
-
The main risks associated with investing in ETFs are:
-
The prices of the underlying investments of the ETFs will vary according to the markets on which these are listed or traded;
-
With regard to funds holding non-UK investments, foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of funds in sterling currency terms.
-
Dividend growth is not guaranteed, nor are companies in which you invest obliged to pay dividends;
-
Underlying assets may decline in value;
-
ETFs on overseas markets may involve different risks to the UK;
-
As with all funds, ETFs may be suspended from trading due to the closure of the underlying market or due to the winding down of the fund
Fixed Interest Securities
-
We may invest in fixed interest securities issued by governments, governmental bodies, quasi-governmental bodies in the UK (and overseas), UK local authorities and corporates in the UK (and overseas).
-
The main risks associated with investing in fixed interest securities are:
-
There are few recognised markets in such securities, as the trading is between the issuers, their brokers, and the banks and securities houses making a market in the securities;
-
With regard to securities in currencies other than Sterling, foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of investments in base currency terms;
-
Securities issued by overseas bodies may involve different risks to the UK;
-
Capital may be lost whether or not held to maturity or in the event of default of the issuer;
-
There is a risk of capital erosion in real terms over time due to the effects of inflation, and
-
The value of fixed income securities may fall as well as rise due to market movements.
Collective Investment Schemes
-
We may invest in units/shares issued by collective investment funds both in the UK and overseas, that are authorised by an approved regulator or are unauthorised.
-
The main risks associated with investing in collective investment funds are:
-
There are no recognised markets for collective investment funds as units/shares are issued and redeemed by the managers/operators/administrators of the funds;
-
Funds may be valued for pricing and dealing purposes either daily, weekly, fortnightly, monthly or even less frequently by the managers/operators/administrators;
-
The prices of the underlying investments of the funds will vary according to the markets on which these are listed or traded;
-
Unregulated funds are not subject to the supervision by a regulatory body as authorised funds, and some authorised funds are subject to greater supervision than others depending on their structure;
-
With regard to funds in currencies other than Sterling foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of investments in base currency terms.
UK and Non-UK Equities
-
We may invest in equities, including investment trusts, listed on recognised stock exchanges in the UK (e.g., the London Stock Exchange) and overseas (e.g. the New York Stock Exchange).
-
The main specific risks associated with investing in equities include:
- Dividend growth is not guaranteed, nor are companies in which you invest obliged to pay dividends;
- Companies may go bankrupt rendering the original investment valueless;
- Equity markets may decline in value;
- Corporate earnings and financial markets may be volatile;
- If there is no recognised market for equities, then these may be difficult to sell and accurate information about their value may be hard to obtain;
- Smaller company investments may be difficult to sell if there is little liquidity in the market for such equities and there may be substantial differences between the buying price and the selling price;
- Equities on overseas markets may involve different risks to the UK;
- With regard to investments in overseas companies, foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of investments in base currency terms.
-
Investments Denominated in an Alternate Currency
-
We may affect transactions on your behalf in an investment denominated in a currency other than the
agreed base currency of your Portfolio (which is the currency in which your Portfolio is valued).
-
A movement in exchange rates may have a separate effect, unfavourable as well as favourable, on the
gain
or loss otherwise experienced on the investment concerned. In addition, if you deposit collateral
denominated in one currency, you may be subject to margin calls in circumstances where the
obligations
secured by such collateral are denominated in another currency (in addition to the risk of margin
calls
for fluctuations in relative values). Some currencies are not freely convertible, and restrictions
may
be placed on the conversion and/or repatriation of your funds including any profits or dividends.
-
The base currency of your Portfolio will be Sterling.
-
Discretionary Investment Manager Risk
-
Our principal service is discretionary investment management where your individual Pots are managed
in
accordance with each customer's requirements as set out in your Account. This means that we have
discretion over both asset allocation and individual security selection in relation to the assets
held
in your Portfolio. This means that your Portfolio and its performance will be specific to you, even
when
compared to a portfolio with a broadly similar mandate.
-
Fully Managed and Socially Responsible Investing portfolios
For the fully managed portfolios and socially responsible portfolios, the normal range of asset
class exposures
for managed portfolios is shown below. The investment team may hold assets outside of these ranges,
subject to
market conditions or where permission is granted by the Compliance and Risk Committee.
Asset class weights
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
Equity-type risk:
Equities, Commodities, property
|
Min
|
0%
|
0%
|
0%
|
10%
|
15%
|
25%
|
35%
|
50%
|
50%
|
50%
|
Neutral
|
0%
|
17%
|
28%
|
35%
|
47%
|
57%
|
68%
|
79%
|
89%
|
100%
|
Max
|
0%
|
30%
|
40%
|
50%
|
65%
|
75%
|
90%
|
100%
|
100%
|
100%
|
Fixed-income-type risk:
Bonds, money market, cash
|
Min
|
100%
|
70%
|
60%
|
50%
|
35%
|
25%
|
10%
|
0%
|
0%
|
0%
|
Neutral
|
100%
|
83%
|
72%
|
65%
|
53%
|
43%
|
32%
|
21%
|
11%
|
0%
|
Max
|
100%
|
100%
|
100%
|
90%
|
85%
|
75%
|
65%
|
50%
|
50%
|
50%
|
Furthermore, beyond these asset class constraints, the portfolios are subject to additional tests,
using
comparative conditional value at risk measures (also known as Expected Shortfall) using a 95%
confidence level.
Fixed Allocation portfolios
Fixed allocation portfolios are not actively managed. However, to ensure that the risk of these
portfolios
stays within acceptable ranges, every portfolio is tested on a weekly basis to assess whether the
weights of
the holdings have drifted too far from their starting weights. If this is the case, the portfolio
is
automatically rebalanced back to the starting fixed weights.
-
We have a core investment and asset allocation process.
We regularly monitor portfolios to ensure they behave within an acceptable range of returns and
reference Nutmeg
performance against comparative benchmarks. Customer performance can differ from the average return
for a chosen
risk level due to size of customer portfolio, movements of cash in or out and customers changing their
risk
level.
- Portfolios are monitored against average competitor returns derived from data based on monthly
results
published by Asset Risk Consultants (ARC) and Macrobond AB. The average returns from discretionary
investment
managers based on risk profile are computed after fees.
Fully Managed portfolios
Average competitor returns
This data is based on monthly results published by Asset Risk Consultants (ARC). ARC compute the
average
returns from discretionary investment managers based on risk profile, after fees. These include
results from
firms such as Barclays Wealth & Investment Management, Coutts & Co, JP Morgan Private Bank, UBS,
Rathbones,
Rothschild Wealth Management, and others. For example, the Sterling Balanced Asset Private Client
Index (PCI)
is a group of portfolios managed with equity risk aimed at between 40%-60% of volatility of global
stock
markets. For Nutmeg risk levels 3-4 the Sterling Cautious index (0-40% Equity Risk) is used, for 5-6
the
Sterling Balanced Asset index (40%-60% Equity Risk), for 7-8 the Sterling Steady Growth index
(60%-80% Equity
Risk), and for 9-10 the Sterling Equity Risk Index (80%-120% Equity Risk). ARC do not provide data
for
portfolios equivalent to Nutmeg risk levels 1–2. Source data: Macrobond AB.
Fixed Allocation portfolios
Average competitor returns
This data is based on monthly results published by Asset Risk Consultants (ARC). ARC compute the
average
returns from discretionary investment managers based on risk profile, after fees. These include
results from
firms such as Barclays Wealth & Investment Management, Coutts & Co, JP Morgan Private Bank, UBS,
Rathbones,
Rothschild Wealth Management, and others. For example, the Sterling Balanced Asset Private Client
Index (PCI)
is a group of portfolios managed with equity risk aimed at between 40%-60% of volatility of global
stock
markets. For Nutmeg Fixed Allocation Portfolio 2, the Sterling Cautious index (0-40% Equity Risk) is
used, for
Portfolio 3, the Sterling Balanced Asset index (40%-60% Equity Risk), for Portfolio 4, the Sterling
Steady
Growth index (60%-80% Equity Risk), and for Portfolio 5, the Sterling Equity Risk Index (80%-120%
Equity Risk).
ARC do not provide data for portfolios equivalent to Nutmeg Fully Managed Portfolio 1. Source data:
Macrobond
AB.
Socially Responsible Investing portfolios
Average competitor returns
This data is based on monthly results published by Asset Risk Consultants (ARC). ARC compute the
average
returns from discretionary investment managers based on risk profile, after fees. These include
results from
firms such as Barclays Wealth & Investment Management, Coutts & Co, JP Morgan Private Bank, UBS,
Rathbones,
Rothschild Wealth Management, and others. For example, the Sterling Balanced Asset Private Client
Index (PCI)
is a group of portfolios managed with equity risk aimed at between 40%-60% of volatility of global
stock
markets. For Socially Responsible Investment (SRI) Portfolio risk levels 3-4 the Sterling Cautious
index (0-40%
Equity Risk) is used, for SRI 5-6 the Sterling Balanced Asset index (40%-60% Equity Risk), for SRI
7-8 the
Sterling Steady Growth index (60%-80% Equity Risk), and for SRI 9-10 the Sterling Equity Risk Index
(80%-120%
Equity Risk). ARC do not provide data for portfolios equivalent to SRI risk levels 1–2. Source data:
Macrobond
AB.
-
Fees, Charges and Interest Rate Schedule
-
Categories
Our fees and charges are calculated as a percentage of your total assets under management with us.
From January
2017, this calculation is based on a tiered structure (similar to the tax system) as shown in the
table:
Fully Managed portfolio: Total value of assets Under Management
|
Annual Management Fee
|
£0–£100,000
|
0.75% per annum incl. VAT where applicable
|
£100,000.01 and above
|
0.35% per annum incl. VAT where applicable
|
Fixed Allocation portfolio: Total value of assets under management
|
Annual Management Fee
|
£0-£100,000
|
0.45% per annum incl. VAT where applicable
|
£100,000.01 and above
|
0.25% per annum incl. VAT where applicable
|
Socially Responsible Investing portfolio: Total value of assets under
management
|
Annual Management Fee
|
£0-£100,000
|
0.75% per annum incl. VAT where applicable
|
£100,000.01 and above
|
0.35% per annum incl. VAT where applicable
|
There are additional investing costs – underlying investment fund costs and the effect of market
spread, more
detail can be found at www.nutmeg.com/costs-and-charges.
By way of an example, for a customer who invests £450,000 with us split equally between fully
managed, Socially
Responsible Investing and fixed allocation portfolios, they would pay Nutmeg fees of:
- 0.75% on the first £100,000 under fully managed;
- 0.35% on the next £50,000 under fully managed;
- 0.75% on the first £100,000 under SRI;
- 0.35% on the next £50,000 under SRI;
- 0.45% on the first £100,000 under fixed allocation; and
- 0.25% on the next £50,000 under fixed allocation.
Cash Holding
Interest Rate earned
|
0% per annum*
|
*Any uninvested cash within your Nutmeg account earns interest at the current Bank of England (BOE) bank rate minus 0.35%. If the BOE bank rate is below 0.35% you will not receive any interest.
Interest will be paid on your Cash Holding pot on a quarterly basis.
Personal Financial Advice
One-off service
|
£575 incl. VAT where applicable
|
- Our quoted fee is inclusive of VAT where applicable.
-
Withdrawals
-
By default, we will always return money to the bank account you registered with us. If you requested
a
withdrawal within 60 calendar days of a debit card payment we reserve the right to return the funds
to
source.
When you cancel a direct Card payment ("chargeback"), we will debit your Account by the amount being
reimbursed. In the event that there is insufficient money in your Account we will convert assets in
your
account into cash as required and hold you liable if the account is in debit.
-
In Specie Transfers
We typically only transfer cash to or from you. In exceptional circumstances where we agree to
transfer an
account "in-specie" we will levy a charge per investment (line of stock) as itemised below.
We reserve the right to only make external payments to and to accept payments from the bank account
stated in
your Account.
-
Additional Charges
Subject Access Requests (Data Protection Act)*
|
£0
|
In Specie transfer
|
£20 per line of stock
|
-
*We reserve the right to refuse or charge for requests that we deem manifestly unfounded or
excessive.
-
In addition to our annual management fee, there is an underlying fund cost, relating to ETF’s, as
charged by those providers we use to construct your portfolio. These charges may vary from time to
time.
See the latest costs.
Definitions
Business Days means any day on which the London Stock Exchange is open for trading.
Cash Holding means an investment pot comprised entirely of cash holdings.
HMRC means Her Majesty’s Revenue & Customs.
Margin or Collateral is where your money or investments are passed to a Relevant Party in order to
provide security against the performance of obligations.
Money Laundering Regulations means The Money Laundering, Terrorist Financing and Transfer of Funds
(Information on the Payer) Regulations 2017.
Netting is the process under which Nutmeg and/or the counterparty, central counterparty, central
securities depository or other body concerned with settling a transaction are entitled to reduce their obligations
to each other by setting off their obligations to deliver cash or securities to one another. This will give a single
amount owing to one party from the other rather than a two-way payment. This single amount will then be paid or
delivered to the Relevant Party.
Relevant Party includes an exchange, clearing house, intermediate broker, settlement agent or a
counterparty dealt with directly (over the counter) outside of any exchange. The Relevant Party may be located in
the UK or elsewhere.
Simplified Advice is financial advice that is limited to one or more of a customer's specific needs and
does not involve analysis of the customer's circumstances that are not directly relevant to those needs.
Sub-Custodian refers to a third-party custodian (or its nominee company) who Nutmeg selects under the FCA
Rules to act on its behalf to keep safe and administer your investments.
Restricted Advice is financial advice restricted to Nutmeg’s investment and pension products and Services
based on the analysis of the customer’s specific needs and circumstances.
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