These are the main changes to the Terms of Service which come into effect on 20 January 2019. We recommend you read the Terms of Service in full.
Terms of Service
We have provided clarification around the description of Cleared Funds and the impact on settlement of currencies that are not GBP.
See Clauses 3.6, 7.17, 11.3.1
Various changes have been made to add operational clarity around:
- The operation of dividend reinvestment plans
- Clarification that Interactive Investor will be able to pass on third party administrative fees related to orders in international markets – which would also include third party fees arising because of the UK’s withdrawal from the European Union (EU).
Changes have been made to reflect current procedures for when instructions for orders, or instructions in relation to Corporate Events, take effect.
See Clauses 3.18, 11.3.8
Money held on your behalf
The inclusion of the ability to deposit client money for up to 95 days in fixed term deposits.
Inclusion of a clause to introduce the ability for Interactive Investor to include individually segregated custody accounts should it choose to.
See Clauses 5.1.2, 5.2.8
The notice of a change to our terms and conditions includes details of how dormant accounts might be treated. Where there has been a period of at least six years of no account activity (for cash), and at least twelve years (for investments), and an account has become dormant, such assets may be paid to charity.
The concept of a ‘dormant account’ is intended to apply to those customers with whom we have positively lost contact, e.g. there has been no attempt to log onto an account and mail is being returned indicating the customer no longer lives at their address. Any attempts to re-establish contact during the six or twelve year periods will also, inevitably, have failed.
We would like to clarify that the operation of these terms would only ever apply in extreme circumstances. These terms would never apply to customers simply because there was no transactional activity taking place on an account.
Where contact had been lost – and before any assets were paid to charity – the firm would always take steps to try and contact such customers, for example, using tracing agents.
It should also be noted that where assets belonging to a dormant account have been paid to charity, should the customer ever make a subsequent claim, interactive investor would always ensure the assets were returned to the customer.
Please note that this update only refers to the general Terms of Service and not the SIPP Investment Terms of Service. If you hold a SIPP, these changes do not apply.
See Clauses 5.2.29, 5.2.30
Clarification of liability
We have added clarity to the Terms of Service around Interactive Investor’s liability around losses due to fraud.
An update to the liability clause has also been made to reflect market practice.
See Clause 10.3
IPO commission structure
An amendment to the commission structure in relation to companies making an IPO where Interactive Investor notifies customers of the IPO has been made.
See Clause 12.3.3
The variation clause has been re-ordered to make the list of reasons clear as to why Interactive Investor would make changes to interest and charges.
Any material changes to the Terms of Service would require 30 days’ notice to be given to customers.
See Clause 16
SIPP Investment Terms of Service
Trades with connected parties
A new obligation for customers to confirm that they are not entering into trades with connected parties has been added.
See Clause 14.1 (c)
In the event of a member’s death
Clarification of the procedure in the event of the member’s death, i.e. cash and investments continue to be held until distributed in accordance with the BW SIPP Operator Terms and Conditions.
See Clause 22
ISA & JISA Terms
Tax reclaims and interest
Clauses relating to re-investment of tax reclaims or interest have been removed to better reflect Interactive Investor’s operational processes.
See Clause 10.3, 10.4
Pension Trading Account Terms
Clarification has been provided that notice may be given via email as well as by post.
We have added clarity to the wording on how Trading Credits are accrued. You'll find all the relevant information on the Rate Card under Quarterly Payment.