Bulletin - August 2021

3 min read 26 Aug 21

We've updated our new firm/new individual user application form

We’ve made some changes to the new firm/individual user application form. We’ll now be asking each new user, who has trading access, to provide their date of birth and national insurance number. We need this information so we can accurately report on trades.

Please make sure you’re using the latest versions of the forms. You can access them when you're logged into the platform, under the ‘Documents and Forms’ section.

Process for payments out from third party products

We reviewed our process and found we received some requests directly from adviser firms. We’d get these authorised by the providers, and in some cases needed to arrange for sufficient funds to be made available. This delayed client payments. 

Please don’t send us requests directly. From 13 September 2021 we’ll reject any requests that come directly from adviser firms.

Instead, you need to: 

  1. Make sure there are sufficient funds available in the account 
  2. Then contact the third party provider to request the payment 
  3. The third party provider will instruct us, by emailing a dedicated inbox

This improved process means payment requests can be actioned as quickly as possible.  

We're only contacting you about corporate actions you need to know about

Previously, we contacted you about all corporate action events – whether or not there was anything you needed to do.

You let us know that communicating non-material events is unnecessary and makes it harder for you to identify which notifications are important. We’ve listened to your feedback, and so as of 23 August 2021 we’re only contacting you about material changes or when you need you to take action.

What do we mean by material or non-material?

‘Material corporate actions’ are events that impact your clients and their holdings. So, any corporate action that results in the following:

  • Credit or debit of stock e.g. a bonus issue or consolidation
  • Credit or debit of cash e.g. a capital return or fund closure
  • Change in trading status of an asset e.g. a suspension, soft closure or change of listing to a non-IFDL approved exchange
  • An election to be made by a client e.g. open offer or tender offer
  • Material fund changes e.g. AMC increase, changes to risk level or investment strategy, significant changes to the name of an investment

‘Non-material corporate actions’ have no direct impact on your clients or their holdings, and they require no action. Common examples are:

Non-Material Event Types

General Outcome of Event

Removal or decrease in existing charges

Decrease in AMC/OCF or other charges or removal of other charges

(We’ll continue to notify you of any increase in charges)

Benchmark change

Change to index the fund is measured against

Benchmark description change

Change to name or description of the benchmark

Change to listing

Any changes to listing to an exchange not approved by IFDL will be processed as a material event.

Dilution policy change

Change to the policy when large subscriptions or redemptions are made

Investment objective change

Non-material change or clarification of/to wording of investment objective

(We’ll continue to notify you if the investment objective changes enough to alter the strategy or risk level of fund)

Investment policy change

A statement outlining the investment philosophy. Exclusively change or clarification of/to wording of investment objective

Name change (minor)

Minor changes to individual words, addition of new words or change to share class of an asset name will be non-material

(A complete change of name to an asset will be processed as a material event)

Pricing change

Change from dual to single pricing

Swing pricing policy change

Change to the policy when large subscriptions or redemptions are made