Important Information

About our Investment Management services

    Our Services and Business Terms

    Charles Stanley & Co. Limited is pleased to offer its services to you and does so on the following Terms (“these Terms”) as laid out in our Services and Business Terms documents.

    Cash management

    Our Cash Management service makes it more efficient for income and sale proceeds to be credited to you and for you to settle purchase trades. Your money is kept in a segregated account, where there are no minimum balance requirements and no withdrawal penalties.

    • Your money is held partly on instant recall and partly in term deposits, and we manage this with the intention that your funds are always available for immediate repayment or settlement of transactions.
    • There is no loss of interest or any need for you to give notice. Proceeds from sales are credited immediately after they are received and start earning interest at once.
    • Interest is automatically paid or collected on your cash balance depending upon published rates and bandings*.

    Investment account & ISA: current deposit rates

    Capital value on depositGross rateGross rate
    Service levelDiscretionary and advisory managedAdvisory dealing and execution-only
    £0 - £99,9990.00%0.00%
    Over £100,0000.00%0.00%

    US $ currency: current deposit rates

    Capital value on depositGross rateGross rate
    Service levelDiscretionary and advisory managedAdvisory dealing and execution-only
    $0 - $129,9990.00%0.00%
    Over $130,0000.00%0.00%

    Euro € currency: current deposit rates

    Capital value on depositGross rateGross rate
    Service levelDiscretionary and advisory managedAdvisory dealing and execution-only
    £1+-1.00%-1.00%



    FX currency transaction rates

    Transaction valueFX charge
    £0 - £9,9991.00%
    £10,000 - £49,999
    0.75%
    £50,000 - £499,999
    0.50%
    £500,000 - £999,999
    0.30%
    £1m or over
    0.15%

    Rates effective as at 12 March 2020 (USD rates effective as at 16 March 2020)
    *Interest is calculated from the date on which we receive cash up to the date of withdrawal or the settlement of purchases. It is distributed gross - i.e. without deduction of Income-tax - twice yearly in April and October, subject to a minimum of £10.

    In the event that cash is transferred between a managed and non-managed service, for the purposes of calculating any interest due, it will be treated according to which service applies at the point of calculation in April and October as if it had been in that account for the entire period.

    Custody of your investments

    There are three ways in which you can hold your investments: in Charles Stanley's nominee account, in CREST Personal Membership or in the form of paper share certificates. Your choice will be determined by your own personal preference and the amount of dealing you do.

    The Charles Stanley Nominee Account

    Our nominee account offers you simplicity, security and efficiency, with the added benefit of prompt settlement. This ensures that sale proceeds are available to earn interest for you from the earliest possible moment. In the Charles Stanley Nominee Account we hold your securities for you registered in the name of our nominee company in CREST, or with our overseas custodian for your overseas investments. You remain the beneficial owner of your investments, which (except in certain overseas jurisdictions) are fully ring-fenced. We handle all the paperwork on your behalf and, on your instructions, deal with all the arrangements for settling purchases and sales. We collect dividends on your behalf. You receive regular statements and reports, as well as an annual Securities Report including a Consolidated Tax Certificate.

    CREST Personal Membership

    CREST is the UK's real-time electronic securities settlement service. With CREST we can act as your 'sponsor' in order for you to obtain personal membership. We then manage your account while the eligible holdings in your portfolio remain in your name with CREST. Dividends, company reports, documentation and shareholder benefits will be sent directly to you. We will send you a detailed statement of your shareholdings every six months.

    Share Certificates

    Some investors will wish to retain their share certificates and our services accommodate this preference. However, you should be aware that this route will mean you incur some additional costs and there could be settlement delays. Also, if you choose this option, you are responsible for the delivery, receipt and safekeeping of the share certificates, and you have to deal with the paperwork required in situations such as takeovers or rights issues. This option may therefore be more suitable for a relatively inactive investor for whom settlement costs and delays are of less significance.

    Security of your Investments

    Client Money and Investments held by Charles Stanley & Co. Limited

    It is understandable that from time to time we receive enquiries from clients about the security of the funds that we place for them on deposit, and about the security of the investments that Charles Stanley looks after for them.

    Charles Stanley & Co. Limited is an FCA-authorised firm

    We are not a bank or deposit-taker in our own right. Nor are we owned by a bank or have any significant banking shareholder. Our parent company, Charles Stanley Group PLC which is wholly independent and listed on the London Stock Exchange is not conducting a banking business and is acting purely on your behalf, in arranging for the way in which your money is deposited.

    Unlike a bank, we are not using your money in running our own business, nor are we lending it to other clients, nor investing it in anything else. Instead, we are holding it for you in trust, placing it on deposit for you, and it remains your money at all times. Your money is ring-fenced from the assets of Charles Stanley and is kept strictly segregated as client money in accordance with the rules of the FCA.

    Where do we place your money?

    We pool your money with that of many other clients, and place the entire pool with leading banks and credit institutions. With the aim of increase security for you we don't place the money with a single bank, but divide it between, typically, four or five different banks and credit institutions at any one time. We carry out our own analysis on the banks and credit institutions that we choose, and both the choice and the proportions in which we divide the money are subject to our periodic review and careful selection.

    This choice of banks and credit institutions with whom we place clients' funds can vary from day to day. But we believe that you are entitled to know where the money is placed at any given time and will tell you this during business hours whenever you ask.

    Are your deposits guaranteed?

    The banks and credit institutions amongst whom we divide the deposits do of course guarantee re-payment. But this guarantee is only as good as the bank itself. If it should become insolvent or its assets are frozen or seized by the government, then we will of course make every effort to recover the money. But our own guarantee can only be as good as that of the banks and credit institutions with whom we place the funds. We have received advice from a leading firm of lawyers that the appropriate treatment in such circumstances is to pro-rata the entire pool of funds that we hold for clients so that the effect of any default is proportionately the same for each client.

    What is Charles Stanley's status in this?

    As explained earlier, we hold funds for clients as their trustee, and we have a fiduciary duty to take good care of it. This is a responsibility which of course we take very seriously indeed. Our Business Terms do however make it clear that ultimately we will not be liable in the event of default by any of the banks or credit institutions with whom deposits are placed.

    How am I covered by the official compensation scheme in the event of a bank default?

    With certain exceptions, for example clients that are larger companies, depositors in banks and credit institutions which are regulated by the Prudential Regulation Authority are entitled to compensation of up to £85,000 (as of 30 January 2017).

    Additional support

    How about the investments that you are holding for me?

    The very great majority of the investments that we hold for clients are registered in the name of our nominee company, Rock (Nominees) Limited, which is wholly guaranteed by Charles Stanley & Co. Limited. As with client money, these assets are carefully segregated from the assets of the company, and are subject to regular checking and reconciliation. We hold the investments in trust for you and they remain your property at all times. In the case of Overseas Shareholdings, Unit Trusts and OEICs we may use other specialist custodians where these investments are held in trust on behalf of Charles Stanley clients. Certain overseas countries may not however recognise the concept of trust or nominees. In such cases, therefore, we have to hold clients' investments directly in the name of Charles Stanley & Co. Limited. We will apply what safeguards we can in these circumstances and, as provided by the rules of the FCA, the FSCS states that the maximum level of compensation for investment claims against firms declared in default on or after 1 April 2019 is £85,000 per person per firm.

    What about the security of Charles Stanley itself?

    Because the money and investments that we look after for clients are held in trust, and are carefully ring-fenced, the position of Charles Stanley itself should not pose a risk to their security. Clients' assets are kept separate from those of the company. Charles Stanley itself is one of the larger UK private client investment firms, with a history of more than 200 years.

    VAT returns

    Circumstances may arise where changes in the interpretation of VAT law may lead to VAT previously charged to clients becoming recoverable from HMRC. In such circumstances, Charles Stanley may be able to file “protective claims” for VAT overcharged to those clients who should have qualified for exemption over the last four years which is the maximum period allowed.

    If HMRC accepts any such claim, we will pass on to you the full amount refunded. Please note that this amount may be lower than the VAT originally charged on the services provided. This is because, under Section 80(2A) of VATA 94 we are required to calculate the amount of VAT that Charles Stanley originally recovered relating to these supplies, and to deduct that from the claim.

    The VAT Regulations require us to pass on the full amount of the refund received, and we can confirm that we will do this as quickly as possible after a claim is approved.

    FATCA/CRS

    The globalisation of the financial sector now makes it much easier for individuals and entities to hold money and assets outside of their jurisdiction of tax residence. While the great majority comply with their tax obligations there are some who will use the availability of offshore financial structures to evade tax.

    Automatic Exchange of Information (AEOI)

    AEOI is about improving transparency in the fight against tax evasion and in so doing protecting the integrity of the tax systems of the Participating Jurisdictions. The UK has entered into a number of international agreements designed to provide tax administrations with details of financial accounts and assets owned by Individuals, Entities and Trust that are resident for tax purposes in their jurisdiction, but which are held by financial institutions in the other territory to help stop tax evasion.

    The UK has legislation in place for the AEOI under the following regimes:

    • The United States Foreign Account Tax Compliance Act – FATCA
    • The Common Reporting Standard developed by the OECD – CRS
    • The EU Directive on Administrative Cooperation in Tax Matters – DAC

    Under these agreements, Charles Stanley and all UK financial institutions have a legal obligation to determine the tax residency of all its account holders.

    Where an account holder is identified as tax resident in one of the participating countries, their account details must be reported to HM Revenue & Customs (HMRC) on an annual basis. This information is then expected to be shared with the relevant overseas tax authorities where the account holder is tax resident by HMRC.

    In return, those participating countries are expected to supply HMRC with similar information on UK tax resident Individuals, Entities and Trusts holding accounts with their Financial Institutions. In order to achieve this, we require you to complete a Tax Residency self-certification form.

    FATCA

    The Foreign Account Tax Compliance Act (FATCA) is a United States legislation that has been designed to ensure tax compliance by US persons to ensure they report their worldwide income to the US tax authorities (IRS) even if they are not resident in the US. The agreement between the UK and USA which came into effect on 1st July 2014 requires UK financial institutions, like Charles Stanley, to provide reports on their account holders who are deemed to be ‘US persons’ for US tax purpose.

    Please note that under this agreement Charles Stanley is required to report any client which is deemed to be US Person/account holders to HMRC who will share this information with the IRS. We do not report directly to the US IRS.

    For more information about FATCA please visit the IRS website.

    CRS

    Common Reporting Standard (CRS) is a global standard developed by the Organisation for Economic Co-operation and Development (OECD) for the automatic exchange of financial account information between tax authorities worldwide.

    Under the CRS, we are required to identify and report all accounts that we hold for Individual, entities and Trust that are tax residents in any of the overseas participating CRS countries.

    Please note that Charles Stanley is required to report the reportable information on these accounts directly to HMRC who will share this information with the overseas tax authorities where the account holders are identified as being tax resident. We do not report directly to the overseas tax authorities.

    For more information, please visit the following website:

    RDR status

    We offer clients a wide range of different financial services to suit their needs. We provide a comprehensive service - advising on, managing and buying and selling stocks, shares, unit trusts, gilts, corporate bonds and a wide range of other financial instruments.

    These services do not extend automatically to advice or management in relation to clients' overall financial planning arrangements, or to any individual aspect of their financial requirements other than stock market and stock market based investments. Our advisory investment services are therefore classed as 'restricted' since they are designed specifically for investors seeking specialist expertise and advice on investments and investment portfolios. As an independently-owned firm, we are not tied to any products or providers.

    Access to our secure client portal

    All clients will be able to access information about the products and services they have from Charles Stanley by accessing our secure client portal. To ensure you stay safe online, we have put together some helpful guidance.

    Keeping safe online