Terms of Business

Wealth Club Limited Terms of Business

Last update 7 March 2017 

This document (the Terms) sets out the basis on which we will provide services to you. We intend to rely on these Terms and you will be deemed to have accepted and agreed to these Terms by using our services. For your own benefit and protection you should read these Terms carefully before committing to an investment. If you do not understand any point please ask us for further information. 

The expressions “we”, “us” and “our” are taken to mean Wealth Club. The expressions “you” and “your” are taken to mean you, our client.

About Wealth Club

Wealth Club is a trading style of Wealth Club Limited. Wealth Club Limited is authorised and regulated by the Financial Conduct Authority (FCA) (number: 725176). You can check this on the FCA’s Register by visiting the Financial Register section of the FCA’s website or by contacting the FCA on 0845 606 1234. 

We are bound by the rules of the FCA. Consequently, we reserve the right to make any changes to the services we provide and/or these Terms which are necessary to comply with any applicable law or regulation, or which do not materially affect the nature or quality of the services we provide.

Services

We provide the following services:

1. Information on Venture Capital Trusts (‘VCTs’), Enterprise Investment Scheme (‘EIS’), Seed Enterprise Investment Scheme (‘SEIS’) and Inheritance Tax Portfolios (‘IHT Portfolios’) to assist you in making your own informed decision about whether to invest in such products. We may provide information about other products from time to time.

Nothing in the Wealth Club website or in any of the documentation/information we make available to you shall be deemed to constitute advice or a personal recommendation to purchase a particular product or service. Any information about the tax treatment of an investment will depend on individual circumstances and may be subject to change in future.

Please see our Website Terms of Use for further information on using our website. These may change from time to time.

2. Introducing you to the providers of the investment products featured on our website including assisting you with applying for and arranging (on your behalf) investment, on an execution only basis. 

At your request we will send you by post the key literature for specific products which may include but which is not limited to the prospectus, offer document and application form. Should you decide to proceed we will facilitate the processing of the application for you. We will only provide this service if you have signed an appropriate self-certification confirming your status as either a self-certified sophisticated investor or high net worth individual. By signing such a statement you confirm your status and that you may not be afforded all protections under the rules of the FCA – further details will be provided in the relevant statement. In addition we normally ask clients to complete an appropriateness questionnaire to assess their investment experience and knowledge. We reserve the right to conduct further enquiries on the assertions in the signed statement which may require the submission of evidential proof to support the assertion being made. 

We will not provide you with advice or a personal recommendation and therefore do not have a duty to ensure investments are suitable. This means you will not be entitled to compensation from us on the basis that a service or product you select is not suitable for you. It is your responsibility to take into account your circumstances and objectives and make your own judgment as to suitability. If you are in any doubt as to the suitability of products or services we suggest that you seek professional financial and/or taxation advice. 

Wealth Club acts as your agent in arranging investments, and never owns investments it arranges for you.

Client Classification

Unless we notify you otherwise, you will be classed as a “Retail Client” (as defined by the FCA) which means that you will receive the highest level of protection under the rules of the FCA. 

Please, however, refer to the statement highlighted in bold in section 2. of ‘Services’ (immediately above in this Terms of Business document) which confirms that Wealth Club will require you to complete an appropriate self-certification of your status before any investments will be instructed on your behalf by us. Entitlement to all the provisions associated with the “Retail Client” status will be affected by signing as denoted in the relevant self-certification document.

Methods of Communication

Unless you advise us otherwise, we will communicate with you via the following methods of communication: email, telephone, letter and other acceptable electronic methods of communication. Communication will be in English. Where you wish to apply for a product we will ask you to send us the application form and a cheque by post, and we will forward those on to the product provider by post.

You may contact us using the following details:

You should assume that all telephone calls, website use and emails between you and Wealth Club will be recorded. These recordings will be the sole property of Wealth Club and may be used for training purposes or as evidence in the event of a dispute.

Any notice or other communication (other than the service of any proceedings or other documents in any legal action) given in connection with these Terms shall be in writing, addressed to the relevant party (at the address specified by the relevant party) and shall be delivered personally, sent by prepaid first class post or other next working day delivery service or commercial courier. 

Payment for Services 

When you purchase a financial product through us or using our application form, Wealth Club will normally receive initial commission on the sale from the product provider and, in some cases, trail commission. Although you may pay nothing to us upfront, that does not mean our service is free. You still pay us indirectly through product charges. Product charges pay for the product provider’s own costs and any commission. These charges reduce the amount left for investment. If you buy direct, the product charges could be the same as when buying through an introducer, higher or lower.

Details of the introductory fee/initial commission and trail commission payable are whenever possible in the product application form or can be obtained by contacting us. The commission will be paid to Wealth Club directly by the product provider.

Wealth Club will in some cases discount the standard rate of initial commission. This varies across the product types. For some investments that pay an upfront commission, the rebate, discount or uplift can be between 1% and 3% of the amount invested but we reserve the right to apply discretion to whether the rebate is given at all and to the amount rebated. The commission offered by the product providers varies in amount. No matter how attractive the rebates are, if you are unsure we would always recommend you seek professional financial advice as to the suitability of an investment. 

For investments that earn trail commissions, we will typically receive up to 0.5% of the fund value. On a typical investment of £10,000, this would be equivalent to £50.

Examples 

  1. When you invest in a VCT we normally receive between 0 and 3% of the value of your investment as initial commission and 0% to 0.75% as trail commission. In nearly all cases we rebate the initial commission back into your investment and keep the trail commission.  
  2. When you invest in an EIS or SEIS or IHT portfolios we typically receive up to 3% initial commission (although in some cases more) and in some cases trail of between 0% and 0.75%. Typically we discount 0.5% of the initial commission and keep the trail commission. 
  3. On EISSEIS and IHT portfolios where we do not receive commission, we apply a 2.5% introducer’s fee, which will be settled on your behalf by the investment product provider. The product provider pays us directly after deducting fees from your investment payment. So, for instance, to invest £10,000, you would make a payment of £10,250. The provider would then allocate £10,000 to your chosen investment and pay us £250.

You should always check that you understand the cost of the product(s) before you invest and if in doubt consult a professional financial adviser.

Discounts and refunds are paid out of commission. In no circumstances will Wealth Club be liable to pay a discount in excess of the initial commission received. Discounts given on investments that do not proceed will be refundable by the client to Wealth Club.

Please note that Wealth Club may vary the commission charges, fees and costs of its services from time to time or introduce a new charge in a clear, fair and transparent way in order to comply with any specific regulatory change impacting business operations. Any change to this agreement will be disclosed and formally communicated to you. However, if the fee or commission charge is part of a restructuring of the charges you are already paying, as a result of regulatory changes, then provided the overall cost to you remains unchanged or is lower, we will notify you in advance but will not require your written consent. 

Please also be aware that product providers may also vary their own charges, fees and costs of their services. They will normally write to you directly regarding these changes but Wealth Club will forward on any such notification received to our offices in respect of your investments. We cannot be held responsible for any error or omission in the notification by a third party.

Wealth Club may receive payments from investment managers for the distribution and administration of their investments, or for services Wealth Club provide to improve the overall service for Wealth Club clients.  Wealth Club may also receive reasonable gifts from investment providers.  Gifts are closely managed to ensure client interests are not affected. We have a policy in place to ensure we identify and handle conflicts fairly and treat our clients fairly at all times.

Delays in Processing 

We will not be held responsible for any delay beyond our control, or as a result of a failure by any party (including you) to complete all the necessary steps to process a transaction.

Cancellation Rights 

As no advice will be provided by Wealth Club, please be aware that certain investments may not qualify for cancellation during a ‘cooling-off’ period. If any of the products or investments you take out have a right of cancellation, full details can be found in the individual product literature which should be read carefully. You should be aware that some investments will have no such rights. Again, this information can be found in the product literature.

Conflicts of Interest 

Wealth Club has implemented a Conflicts of Interest policy to ensure fair treatment of its clients under which it will not carry out transactions for clients in the products of companies or business entities in which Wealth Club or any director or employee or one of its other clients has a known significant personal interest unless that interest is first disclosed. This policy shall not apply to personal holdings of directors and staff in investments transacted by Wealth Club in the normal course of business. 

Client Money 

WEALTH CLUB DOES NOT HANDLE CLIENTS’ MONEY as defined by the FCA's Client Money rules. Wealth Club never accepts a cheque made out to Wealth Club Limited (unless it is a cheque in settlement of charges or disbursements for which we have sent you an invoice) nor cash.

Data Protection 

Please see our Privacy Policy for more information about how we protect your personal data. The Privacy Policy may be amended from time to time.

Care of Documents 

We will ensure the registration of all investments in your name unless otherwise agreed in writing. Contract notes, share certificates, tax certificates, statements and documents of title are normally sent direct to the client by the product provider, but if they have been sent to Wealth Club they will be forwarded to you.

All application forms, contract notes, cheques, certificates or documents of title may be sent by post at your risk.
Wealth Club will supply, on demand, to you or your nominated agent, copies of records for a period of five years from the date of each transaction.

Termination of our Service 

You or we may terminate our authority to act for you by providing notice in writing. Any transaction already in progress will be completed and you will be liable to pay for any services that you have received prior to the date of termination. 

This means that where we have agreed the services that we will provide for you and we have agreed to receive payment for these, either by means of a fee or by receiving commission from a provider, you will have to pay us for any work we have completed up to the date of termination. 

If you wish to terminate our service you should write to: Wealth Club Limited, Client Services Department, 4 Broad Plain, Bristol BS2 0JP.

Client Protection

Wealth Club maintains a professional indemnity insurance policy for the protection of clients in the event of negligence by any member or employee of Wealth Club, and details of this, including the current limits of indemnity, are available on request.

Complaints 

If you wish to register a complaint, please contact us in writing at Wealth Club Limited, 4 Broad Plain, Bristol BS2 0JP. 

We aim to resolve all complaints in full accordance with the DISP rules of the FCA’s Handbook. If you are not satisfied with our resolution of your complaint you may be entitled to refer your complaint to the Financial Ombudsman Service at Exchange Tower, London E14 9SR. Telephone: 0800 023 4 567 or at www.financial-ombudsman.org.uk. You can also complain using the European Online Dispute Resolution platform. A copy of our Client Complaints Handling Policy is available upon request.

Compensation Arrangements 

We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Investment - Most types of investment business are covered for 100% of the first £50,000, so the maximum compensation is £50,000 per person per firm. Further information about compensation scheme arrangements is available from the FSCS.

General

Severance - If any provision or part-provision of these Terms is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision shall be deemed deleted. Any modification to or deletion of a provision or part-provision under this clause shall not affect the validity and enforceability of the rest of these Terms.

Law and jurisdiction – These Terms, and any dispute or claim arising out of or in connection with them or their subject matter or formation (including non-contractual disputes or claims), shall be governed by, and construed in accordance with the law of England and Wales and each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any such dispute or claim.

Waiver - A waiver of any right under these Terms or the law is only effective if it is in writing and shall not be deemed to be a waiver of any subsequent breach or default. No failure or delay by a party in exercising any right or remedy provided under these Terms or by law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict its further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy.

Variation – No variation of these Terms shall be effective unless it is agreed by you and Wealth Club except where such change (i) is necessary to comply with any applicable law or regulation, (ii) does not materially affect the nature or quality of the services we provide, and/or (iii) is a change to the structure of the charges paid by you but does not result in you paying any additional amount. In such cases we will inform you of the change(s) but we will not require your consent.