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  1. 1. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 1 Key Features and Terms and Conditions J.P. Morgan ISA and J.P. Morgan Investment Account For J.P. Morgan WealthManager+ Account holders Effective from 1 October 2011
  2. 2. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 2 Contents Key Features Introduction to investing with J.P. Morgan Asset Management 3 Overview of the Investment types available 3 The aims, your commitment and risk factors 4 Your questions answered 4 Charges 8 Terms and Conditions Definitions 9 General Terms and Conditions 10 J.P. Morgan WealthManager+ online services Terms and Conditions 13 J.P. Morgan ISA and J.P. Morgan Investment Account Terms and Conditions 14 J.P. Morgan ISA specific information 16 Annex 1 – Data Privacy Policy 16 Annex 2 – Order Execution Arrangements and Conflicts of Interest Policy 17 Getting in touch + Visit our website jpmorganassetmanagement.co.uk/investor + Call us on 0800 20 40 20 or +44 207 742 9995 from overseas Our UK-based Investor Service team is available Monday to Friday, 9am to 5.30pm. Our fax number is 0845 246 1852. + Write to us J.P. Morgan Asset Management Client Administration Centre Finsbury Dials, 20 Finsbury Street London EC2Y 9AQ Invest online using WealthManager+ at jpmorganassetmanagement.co.uk/online All our application forms are available to download online at jpmorganassetmanagement.co.uk/forms or you can telephone us to request a copy. Please note we cannot accept instructions from anyone else on your behalf except where permitted and all letters and fax instructions must include your account number and be signed. Telephone lines may be recorded for training and monitoring purposes. 2 Key Features
  3. 3. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 3 Key Features The Financial Services Authority (FSA) is the independent financial services regulator. It requires us, J.P. Morgan Asset Management, to give you this important information to help you decide whether the J.P. Morgan ISA and J.P. Morgan Investment Account are right for you. You should read this document carefully so that you understand what you are buying and then keep it safe for future reference. Introduction to investing with J.P. Morgan Asset Management You can invest with J.P. Morgan Asset Management by opening a J.P. Morgan WealthManager+ (WealthManager+) Account online, by postal application or over the telephone. WealthManager+ Accounts can only be opened by UK residents. WealthManager+ is a secure online service which lets you manage all of your Investments in one place. You can invest and manage the full WealthManager+ Investment Range through the J.P. Morgan ISA, J.P. Morgan Investment Account and the J.P. Morgan SIPP online. If you prefer to manage your WealthManager+ Account over the phone or in writing you will have access to the J.P. Morgan Investment Range only. The J.P. Morgan ISA and J.P. Morgan Investment Account are also available to J.P. Morgan Classic Account holders. The Key Features and Terms and Conditions for the J.P. Morgan Classic Account are different and not covered in this document. If you are unsure about the type of Account you hold, please contact us. Investing using a Financial Adviser If you have a Financial Adviser they can submit written applications on your behalf and be given online access to view your WealthManager+ Account, including all the relevant documents within your personal document library. You will need to agree a fee arrangement with your Financial Adviser and pay them separately. Overview of the Investment types available Description Where to find more information? Investment Trusts A type of public company listed on a stock Please refer to the company’s fund factsheet or exchange that invests in other companies to make report and accounts for more details before money for its shareholders. investing. Open Ended Investment Companies (OEICs) An OEIC fund has the structure of a company and Please refer to the fund’s factsheet or simplified uses the pooled money of its shareholders to prospectus for more details. invest in world stock markets. Société d’Investissement á Capital Variable SICAV funds are also open ended investment Please refer to the SICAV’s factsheet or prospectus (SICAVs) companies but are incorporated in Luxembourg. for more details. They are recognised under the Financial Services and Markets Act 2000. Unit Trusts Unit trusts are collective investment schemes that Please refer to the unit trust’s factsheet or scheme are set up under a trust deed that allow investors particulars for more details. to pool their money together in a fund. FTSE All-Share Equities FTSE All-Share Equities are Shares in companies Please refer to the company’s report and listed on the London Stock Exchange. accounts. Gilts and Corporate Bonds Securities (commonly known as bonds) issued by a A company who issues corporate bonds will company, government or local authority, where provide further information in the relevant report the amount of interest to be paid each year is set and accounts. Information on Gilts can be found on issue. Government bonds issued by the UK on the government’s Debt Management Office government are commonly referred to as Gilts. (DMO) website. Exchange Traded Funds (ETFs) ETFs are a security that track an index, a Please refer to the fund’s factsheet, prospectus or commodity or a basket of assets like an index annual reports available from the provider. fund, but trades like a stock on an exchange. The price of ETFs change throughout the day as they are bought and sold. Investment type by range WealthManager+ Investment Range J.P. Morgan Investment Range J.P. Morgan OEIC Funds Y Y J.P. Morgan Investment Trusts Y Y The JPMorgan Sterling Liquidity Fund Y Y A range of J.P. Morgan SICAVs Y Y A range of Investments from Other Fund Managers Y N FTSE All-Share Equities Y N A range of Gilts and Corporate Bonds Y N A range of Exchange Traded Funds Y N Key Features 3
  4. 4. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 4 The J.P. Morgan ISA and J.P. Morgan Investment Account The aims Your commitment • To provide you with a simple way of investing in a range of different • You may contribute whenever you wish, as long as you remain types of Investments. eligible to do so. • To allow you flexibility in choosing your own Investments from within • The minimum initial lump sum is £500 per Investment (or £100 when the WealthManager+ Investment Range. topping up an existing Investment). • To offer a tax-efficient way of investing through the J.P. Morgan ISA. • The minimum regular savings contribution is £50 per Investment. Please note that the tax benefits and liabilities will depend on • You should view your J.P. Morgan ISA and J.P. Morgan Investment individual circumstances and may change in the future. Account as Products for long-term Investments; for example, have an investment outlook of at least five years. • You should take care to review the Investments you hold within your Products regularly to ensure that they meet your current investment objectives. Risk factors • All our Products and available Investments have varying levels of financial risk. • Capital in a bank or building society is considered more secure, whereas a stock market linked Investment is exposed to elements of risk associated with the stock market. • The value of your Investment and the income from it is not guaranteed and can fall as well as rise. Past performance is not a guide to future returns. When you sell your Investment, you may get back less than you originally invested. Remember the risks of each Investment are different. Please refer to the specific risk factors outlined in the relevant documentation for the Investment(s) you are purchasing. The additional risk factors below relate to Investments made in our ISA and Investment Account: • The government can change the way ISAs and other Investments are taxed. The tax benefits arising from investing will depend on individual circumstances and may change in the future. • If you cancel your Investment within the cancellation period, you may receive back less than you have invested if the value of your Investments has fallen. J.P. Morgan Asset Management is unable to assess or provide advice on the suitability of our Products for you or your individual circumstances. If you have any questions about the suitability of Investments for you and would like the additional protections provided under the FSA’s rules on suitability, please contact your Financial Adviser. Your questions answered Who can invest? To invest you have to be 18 years of age or over and be resident or What is the WealthManager+ service? ordinarily resident in the UK for tax purposes. WealthManager+ is a secure online service which lets you manage all your Investments in one place. How much can I invest? You can invest in the WealthManager+ Investment Range through the The annual ISA allowance is £10,680 for the 2011/12 tax year, of which up to J.P. Morgan ISA, J.P. Morgan Investment Account and the J.P. Morgan SIPP £5,340 can be in a Cash ISA. The rest can be invested in a Stocks and Shares online. When you open a WealthManager+ Account you will automatically ISA with either the same or another provider. If you choose to invest the open a WealthManager+ cash account which can be used to hold cash to whole £10,680 in a Stocks and Shares ISA, this can only be with one be invested at a later date or to pay charges. provider in any one tax year. There is no limit to the amount that you can invest in a J.P. Morgan What is an Individual Savings Account (ISA)? Investment Account. An ISA is a tax-efficient savings account through which you can invest in stocks and shares and cash. You can invest money into an ISA without What Investments are available? having to pay any capital gains tax on gains made or any income tax on Our Stocks and Shares ISA can hold any eligible Investment available in the income received. Please note that these tax benefits and liabilities will WealthManager+ Investment Range. depend on your individual circumstances and may change in the future. Our Cash ISA invests in the JPMorgan Sterling Liquidity Fund, which is a You can invest in two separate ISAs in any one tax year; one Cash ISA and Money Market Fund, meaning it will not operate in the same way as a one Stocks and Shares ISA. These can be with the same or different deposit based Cash ISA. Please refer to the fund’s Simplified Prospectus for providers. We offer both a Stocks and Shares ISA and a Cash ISA. further details. What is the J.P. Morgan Investment Account? Our Investment Account can hold any Investment available in the The J.P. Morgan Investment Account allows you to invest directly in any WealthManager+ Investment Range. Investment within the WealthManager+ Investment Range online. Remember, that if you choose to deal with us over the phone or in writing You can open several J.P. Morgan Investment Accounts and optionally you will only have access to Investments from the J.P. Morgan Investment designate these Investment Accounts for your reference. Unlike investments Range. held through the J.P. Morgan ISA, holdings through the J.P. Morgan Investment Account are subject to tax and may have to be declared on your annual tax self-assessment form. 4 Key Features
  5. 5. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 5 How do I invest? J.P. Morgan ISA and J.P. Morgan Investment Account as at April and October, You can either invest a lump sum or a regular contribution, or a showing all transactions over the previous six months. combination of both. All Investments are subject to the minimums outlined Prices and other information like factsheets and annual reports for in Your commitment on page 4. J.P. Morgan Investments can be viewed on our website. J.P. Morgan Investment Trust and OEIC Fund prices are also quoted daily in the Lump sum investing Financial Times and other broadsheet newspapers. Lump sum investments can be made by debit card, direct debit or cheque online using WealthManager+. Alternatively, you can complete and return How will I receive my documentation? an application form to us with a cheque or phone us to invest using a All documentation will be sent to you by post unless you opt in to our debit card. paperless service online using WealthManager+. You can amend your preference at any time. Regular contributions You can invest regular contributions by direct debit monthly, quarterly, half- Our paperless service means that certain documents will only be available yearly or yearly. You can set up your direct debit online using online in your personal document library. WealthManager+ or by completing an application form and a direct debit mandate. We collect direct debit contributions on the 1st or 16th of the We will send you an email to notify you when certain documents have been month or, if this is not a Business Day, it will be taken on the following added to your personal document library. We will continue to send certain Business Day. Please note that in some circumstances we may ask you to documents to you by post for regulatory or security reasons. provide a cheque for the first payment. Can I change the Investments within my Account? If you want to cancel your direct debit instruction with your bank, you must You can sell your Investments and switch the proceeds into any of the other advise us 10 Business Days before the next collection point to ensure that eligible Investments available within the J.P. Morgan ISA and J.P. Morgan no purchase of Investments for which you are liable is carried out. When Investment Account. However, you will be out of the market while your investing in our ISA, regular contributions without an end date will continue transaction is completed, which could affect the value of your Account. from one tax year to the next, opening a new ISA for that tax year as a result. You can switch online using WealthManager+ between any eligible Investments within the WealthManager+ Investment Range. Depending on What are the charges? the Investments and the timing of the transactions, this process will The different types of charges that are levied against your Account and on the generally take place on the same Business Day or over two Business Days. transactions that you make are outlined in the Charges on page 8. Alternatively you can switch between Investments within the J.P. Morgan How are charges collected? Investment Range by sending or faxing a signed written instruction with Transaction charges are taken directly from the lump sum or regular your Account number to us or by calling us. Depending on the Investments contribution reducing the amount available to invest. and the timing of the transactions, this process will generally take place over one or two Business Days following receipt of your instruction. We will look to take our annual account charge (if applicable) from your WealthManager+ cash account monthly. If you do not have enough available If you would like to switch Investments between Products, for example from cash in this Account, we will then look to take it from cash held within the an Investment Account to an ISA, you will first need to sell the Investments, Product that has generated the charge. Where there is insufficient cash add the cash to your WealthManager+ cash account and wait for the available an outstanding charge will remain in the relevant Product as a proceeds to settle. You can then use the available cash to make an negative cash balance. Investment in the new Product. You can top up your cash account online using WealthManager+ or send in a How will charges affect my Investment? cheque in advance of the charge being applied. This will avoid any of your The tables below show how charges and expenses on your Investments can Investments being sold to cover charges. Please note that any outstanding affect what you might get back. charges will be deducted before a new investment (including a regular contribution) is made, before income is reinvested or paid out or before These illustrations are based on an initial investment of £5,000 from which proceeds from the sale of an investment are paid out. we have deducted the costs of buying the units/shares. It is then assumed that the Investment grows by 6% and we have factored in the annual On a half-yearly basis, normally in June and December, we will sell any of management charges and other expenses borne by the Investment as well the holdings in your Account at our discretion to cover outstanding charges as any other applicable charges. Please remember these figures are only and any other negative cash balances at that time. Where this occurs to examples and you could get back more or less than this depending on a Investment(s) held in a J.P. Morgan Investment Account you may need to number of factors including how your Investments perform. take this into consideration when calculating any capital gains tax liability. JPM Global Equity Income Fund within our ISA What happens if I change my mind about investing? Effect of charges If income is received If income is reinvested If you open a J.P. Morgan ISA or Investment Account and you change your investment effect of what you effect of what you mind, you may cancel within 14 days of receiving your cancellation notice. at end of to date income deductions might get deductions might get year (lump sum) received to date back to date back We will return any charges levied by J.P. Morgan to you where applicable. 1 5,000 181 89 5,030 89 5,211 Please be aware that if the value of your Investment(s) has fallen you will not 3 545 285 5,091 295 5,660 get back the full amount you invested. If you have received financial advice 5 915 506 5,153 543 6,148 to transfer Investment(s) into a J.P. Morgan ISA or Investment Account, you 10 1,857 1,175 5,311 1,396 7,599 may withdraw your application at any time during the 14 day cooling off period, which starts on the day we receive your valid transfer instructions. The last line in the table shows that, over 10 years the effect of the total charges and expenses could amount to £1,175 if income is received or How will I know how my Investments are performing? £1,396 if income is reinvested. Putting it another way, if the growth rate You can keep up to date on the progress of your Investments online using were to be 6% a year, which is in no way guaranteed, this would have the WealthManager+. You may request an ad hoc valuation statement online or effect of reducing this growth rate to 3.67% a year if income is received, or by contacting us. You will also receive statements with details of your 4.22% per year if income is reinvested. Key Features 5
  6. 6. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 6 JPM Claverhouse Investment Trust within our ISA Alternatively you can also choose to: Effect of charges If income is received If income is reinvested • Pay income into your WealthManager+ cash account; or investment effect of what you effect of what you at end of to date income deductions might get deductions might get • Leave as cash in your J.P. Morgan ISA or J.P. Morgan Investment year (lump sum) received to date back to date back Account. 1 5,000 194 87 4,991 36 5,212 You can specify your income preference when opening your J.P. Morgan ISA 3 587 222 5,075 173 5,722 or J.P. Morgan Investment Account online using WealthManager+ or on your 5 987 375 5,161 336 6,288 10 2,017 836 5,386 882 7,983 application form. You can select different income preferences for each Product and these can be updated online or by contacting us. The last line in the table shows that over 10 years the effect of the total Please note that taking income from your Investment will reduce the charges and expenses could amount to £836 if income is received or £882 potential for capital growth. if income is reinvested. Putting it another way, if the growth rate were to be 6%, which is in no way guaranteed, this would have the effect of reducing Is any interest earned on cash balances held in my Accounts? this growth rate to 4.11% a year if income is received, or 4.84% per year if Interest will be paid on cash balances in your Account at the rate specified income is reinvested. on our website or obtained by contacting us. When due, interest is paid monthly to your Account. Please note that holding other Investments in our ISA or Investment Account may have different charges which will change the illustrations above. Please Can I open a joint Account or an Account on behalf of a child? refer to the relevant documentation for the Investment you are making (for You can open a joint J.P. Morgan Investment Account by completing an example the Simplified Prospectus) and see the Charges on page 8. application form including details of all the joint holders. The information shown here is correct as at 1 August 2011. J.P. Morgan Investment Accounts can also be designated for children but you may remain the beneficial owner. You can designate an Account online or by What tax will I pay? inserting the child’s initials in the relevant box on the application form. If you have designated a J.P. Morgan Investment Account for a child, a transfer of J.P. Morgan ISA the shares into the child’s name can be made upon request once the child has • Any capital gains or income from Investments held in an ISA is free of reached 18. Please be aware this may be a taxable event for capital gains tax UK income and capital gains tax. purposes. • Although there is no income tax liability on interest or dividend distributions within an ISA, such distributions may be subject to tax How do I transfer my Investments to WealthManager+ from another before they are credited to the ISA. provider? • Interest distributions paid net of 20% income tax will have the tax Cash ISA reclaimed automatically within your ISA by the ISA Manager. Dividend You can initiate the transfer of a Cash ISA into the J.P. Morgan Cash ISA and dividend distributions are paid with an associated tax credit of or J.P. Morgan Stocks and Shares ISA online using WealthManager+. 10%, which cannot be reclaimed. Alternatively, you can complete an ISA transfer form and return it to us. • Any cash balance gaining interest in the J.P. Morgan Stocks and Shares Stocks and Shares ISA ISA will be subject to a 20% deduction in accordance with HMRC You can initiate the transfer of a Stocks and Shares ISA into the regulations. This interest does not need to be reported on your tax J.P. Morgan Stocks and Shares ISA online using WealthManager+. return. Alternatively, you can complete an ISA transfer form and return it to us. Some or all of the Investments you are transferring may have to be sold • Please note that the current favourable tax treatment of an ISA is not and transferred as cash depending on the provider you are leaving and guaranteed and may not be maintained in the future should HMRC rules the types of Investments being transferred. change. Applies to all ISA transfers J.P. Morgan Investment Account You can transfer some or all of the money you have saved in previous • Our Investment Account is not a tax efficient wrapper, the Investments tax years without affecting your current annual ISA allowance. You are are effectively taxed as if you held the assets directly in your own name. also able to transfer money saved in the current tax year provided you • You will receive notification of dividend distributions paid (or for transfer the whole amount saved up to the day of transfer. This will accumulation Shares, deemed to be paid) and the appropriate tax count as part of your current annual ISA allowance. Please ensure you voucher in May following the end of the tax year. use our online transfer process or relevant ISA transfer form which will protect the ISA status of your Investment. If you withdraw cash from • Details of this income and any associated tax credits or other tax your ISA, you will lose its ISA status. suffered should be included in your tax return as appropriate. Investment Account • You may be liable for capital gains tax when you sell your Shares and You can initiate the transfer of Investments into the J.P. Morgan the cost of Shares purchased is shown on your transaction statement Investment Account online using WealthManager+. Alternatively, you and this should be used when calculating any capital gains tax due. can complete a transfer form and return it to us. Some or all of the We cannot give you advice regarding tax. If you need tax advice, you should Investments you are transferring may have to be sold and transferred consult a qualified tax professional. as cash depending on the provider you are leaving and the types of Investments being transferred. What happens to the income from my Investments? You can also transfer in certificated holdings of Investment Trusts and If you choose an Investment which pays income you can select to have this equities that are available within the WealthManager+ Investment sent to your bank account or opt to have this reinvested into additional Range. Once we have received your correctly completed application Shares of the same Investment. form, CREST transfer form and share certificate(s), it will take us between two to three weeks to transfer these Shares into your Account. 6 Key Features
  7. 7. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 7 We do not charge a transfer fee. However, please check with your existing provider as they may do so. How can I transfer my Investments to another provider? If you complete the relevant transfer form given to you by the provider, you are authorising us to transfer your Investments to them. In some cases you are able to transfer the underlying Investments without having to sell them. We do not charge for this type of transfer. For an instruction to transfer a J.P. Morgan ISA, where cash is held, the money will be sent to the new ISA Manager within five Business Days of receipt of the request to transfer. Where the JPMorgan Sterling Liquidity Fund is held in a Cash ISA, the money will be transferred within five Business Days following the settlement of the sale of the Shares. How do I sell my Investments and withdraw cash? You can sell your Investments and send the money to your bank account online using WealthManager+. Please note payments can only be made to a bank account in your name. Alternatively when you are selling your Shares you can: 1. Leave as cash in your J.P. Morgan ISA or J.P. Morgan Investment Account; or 2. Add the money to your WealthManager+ cash account. Investments in the J.P. Morgan Investment Range only can also be sold by instructing us in writing, by fax or by telephone. We will leave the cash within your Product unless you instruct us otherwise. Please note, taking regular withdrawals from your Investment will have the effect of reducing your capital over time if your Investment’s growth does not compensate for the withdrawals. How long will it take to get the cash following the sale of my Investment(s)? Payment will be sent following the settlement of your deal or receipt of the relevant information, whichever is later. Settlement will take up to four working days from the trade date and it can take a further three to five Business Days for the payment to reach your bank account. You should therefore have the proceeds within nine Business Days of the trade. What happens if I have a complaint? J.P. Morgan Asset Management is committed to providing a first class service to clients. If anything does go wrong, we try to put it right quickly and efficiently. If we cannot resolve a problem immediately, we will contact you to tell you what we are doing about it. If you wish to complain about any aspect of our service, please contact us. If we do not deal with your complaint to your satisfaction, you may complain to the Financial Ombudsman Service (South Quay Plaza, 183 Marsh Wall, London E14 9SR). This does not prejudice your right to take legal proceedings. A summary of our complaints process is available on request. How do I close my Account? You need to instruct us in writing to close your Account. If you sell all your investments, your WealthManager+ Account, including your online access, will remain open unless you instruct us explicitly to close it. What happens if J.P. Morgan Trustee & Administration Services Limited becomes insolvent? We are covered by the Financial Services Compensation Scheme, which means if we become insolvent, you may be entitled to compensation. The level of compensation will depend on the type of business and the circumstances of your claim. Further details are available from the Financial Services Compensation Scheme (7th Floor, Lloyds Chambers, 1 Portsoken Street, London E1 8BN). Key Features 7
  8. 8. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 8 Charges There may be annual charges applied to the Products and Investments you hold. In addition other charges may be applied to the transactions that you make. This section outlines the type of charges you will pay. Annual account and fund management charges WealthManager+ annual account charge No annual account charge is levied on the J.P. Morgan Cash ISA or any cash balance held in your Account. The annual account charge is applied at different rates depending on the Products and Investments you hold. Rate of Annual account charge applied to J.P. Morgan Third Party All Other All Managed Investment Investment Available Product Funds Trusts Trusts Investments J.P. Morgan Investment Account No charge No charge 0.25% 0.5% J.P. Morgan Stocks & Shares ISA No charge 0.25% 0.25% 0.5% J.P. Morgan SIPP No charge 0.25% 0.25% 0.5% Minimum and maximum charges per Product Where charges are incurred: • The minimum amount charged is £2 per month per Product. • The maximum amount charged is £10 per month for the ISA and Investment Account and £25 per month for the SIPP. When calculating annual account charges multiple J.P. Morgan Investment Accounts and multiple J.P. Morgan SIPP arrangements will be treated as a single Product so that you benefit from one capped charge. Fund management charges Managed Funds, Investment Trusts and Exchange Traded Funds generally charge an annual management charge which is taken directly from the fund. You should refer to the Simplified Prospectus or factsheet from us or the Other Fund Manager of your Investments for details of these charges and any additional charges that they could apply including performance-related fees. Transaction charges Buying and selling Managed Funds From J.P. Morgan No initial charge and no charge when you sell. From Other Fund Managers In most cases there will be no initial charge applied, but note that some funds will charge an initial charge for joining a fund*. There will be no charge when you sell. * You can refer to the Funds Available and Initial Charges document available online for details of the discounted fund manager initial charges. Buying and selling Investment Trusts and All Other Available Investments There is no initial charge but the following transaction charges may apply: Equities (inc. Exchange Gilts and Investment Traded Corporate Trusts) Funds (ETFs) Bonds Brokerage £10 per individual investment (buy and sell) ** Government Stamp Duty 0.5% of investment (when buying only) Panel of Takeover and Mergers (PTM) Levy £1 per investment purchase if greater than £10,000 *** **Switching into a J.P. Morgan Investment Trust When buying a J.P Morgan Investment Trust as part of a switch within a Product no brokerage will be applied to the purchase. Regular savings plans and dividend reinvestments Regular savings plans and dividend reinvestments into J.P. Morgan Investment Trusts are not subject to a brokerage charge. A brokerage charge of £1 is applied per individual investment when you buy Third Party Investment Trusts and All Other Available Investments using a regular savings plan or when you choose to reinvest dividends automatically. ***The PTM levy is not applied to transactions in gilts. Transferring Investments There is no WealthManager+ service charge to transfer Investments in from or out to another provider or platform. Note that when you transfer in cash the standard transaction charges will apply should you go on to make a purchase. 8 Key Features
  9. 9. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 9 Terms and Conditions This section explains the legal terms and conditions of your J.P. Morgan ISA and J.P. Morgan Investment Account with J.P. Morgan Asset Management (J.P. Morgan) effective from 1 October 2011. These Terms and Conditions govern your holding of Investments through J.P. Morgan, in the J.P. Morgan Individual Savings Account (ISA) and the J.P. Morgan Investment Account. These, in conjunction with the relevant online or offline application form(s) and the Key Features, make up the entire Terms and Conditions of your Investments with us. Definitions Money Market Fund – a Fund which seeks to limit exposure to losses due to credit, market and liquidity risks. Eligible money market securities Account – the account in which your Products and Investments will be held, include commercial paper, repurchase agreements, short-term bonds or which we will open in your name and which is identified by an individual other money funds. Money market securities must be highly liquid and have account number. a stable value. All Other Available Investments – FTSE All-Share Equities, a range of Gilts Nominee – a nominee company through which your Investments are held and Corporate Bonds and a range of Exchange Traded Funds. as set out in Section A, Clause 4 of these Terms and Conditions. Associate (or Associated Company) – any holding company of the Other Fund Managers – any other company outside of the J.P. Morgan J.P. Morgan group or any subsidiary of any such holding company as group who provides Funds which are available in a WealthManager+ defined in the Companies Act 1985. Account. Business Day – any day except for Saturdays and Sundays, public holidays Personal Data – data which relates to a living individual who can be in England and any other day when the relevant Stock Exchange is not open identified from such data as per the Data Protection Act 1998. for business. Product(s) – the products we offer including the J.P. Morgan ISA, Cookies – Cookies are small files placed on your computer by our website J.P. Morgan Investment Account and J.P. Morgan SIPP. that contain basic information such as the type of internet browser you are using or your computer’s IP address. They will only recognise other Prospectus – the current prospectus or scheme particulars of a Fund and preferences (such as passwords) if you allow them to. None of this which contains details about that fund. information is stored by us and only our website can read the information Retail Client – a Retail Client is a client who is an individual or a small contained in our cookies. organisation who can benefit from the highest level of protection of the FSA Financial Adviser – any financial intermediary who is authorised by the rules. They would not be a professional client or an eligible counterparty. FSA and provides you with financial and investment advice. A Financial Share(s) – shares or equities issued by companies representing a right of Adviser is not an agent of J.P. Morgan. ownership and which are listed on a stock exchange, gilts, corporate bonds FSA – the Financial Services Authority or any successor regulator which and other debt issued by governments or companies and other transferable regulates our investment business. securities. Fund (or Funds) – an individual sub-Fund or sub-Funds of UK-domiciled, Third Party Investment Trusts – an Investment Trust which is not managed FSA-authorised Investment Companies with Variable Capital (ICVC), by us but is available to purchase in a WealthManager+ Account. individual UK-domiciled, FSA-authorised unit trusts or other FSA-recognised Transfer Agent – the Fund Transfer Agent is a company responsible for collective investment schemes. maintaining the back office operations for Managed Funds. Investment(s) – the Investments you are able to buy or sell through us Valuation Point – the time at which the value of the underlying assets and under these Terms and Conditions, which includes OEICs, Unit Trusts, cash held by a Fund is calculated and divided by the number of units or SICAVs, Investment Trusts and All Other Available Investments. Shares in issue at that time, thereby deriving the price of individual units or ISA Manager – an organisation approved as an ISA manager under the Shares. Such pricing is generally carried out on each Business Day, although ISA Regulations. some Funds may price weekly or at other frequencies. ISA Regulations – the Individual Savings Account Regulations 1998 as WealthManager+ Investment Range – the range of Investments amended from time to time. Your ISA is managed in accordance with these available to purchase within your WealthManager+ Account, including: regulations. If these Terms and Conditions are inconsistent with those the J.P. Morgan Investment Range, Investments offered by Other Fund regulations then the regulations shall prevail. Managers and All Other Available Investments. J.P. Morgan Investment Range – Investments managed by J.P. Morgan, We, Us, Our, J.P. Morgan – J.P. Morgan Trustee Administration Services including our OEIC Funds, Investment Trusts and SICAVs. Limited (JPMTAS) or ourselves or the relevant member of the J.P. Morgan Group (as the case may be) having our principal office at: Finsbury Dials, Managed Funds – include OEICs, Unit Trusts and SICAV Funds managed by 20 Finsbury Street, London EC2Y 9AQ and our successors and assignees. us or Other Fund Managers. Terms and Conditions 9
  10. 10. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 10 Section A – General Terms and Conditions These general terms apply to your Account across all Investments and Products that you hold. 1. The parties 4. Treatment of client money and assets 1.1. J.P. Morgan Trustee Administration Services Limited (JPMTAS), 4.1. Any money in connection with your Account will be held in a whose Products are J.P. Morgan ISA, J.P. Morgan Investment Account, segregated client money account which is currently provided by Royal and J.P. Morgan SIPP. JPMTAS is authorised and regulated by the FSA Bank of Scotland plc. We may appoint other banks from time to time, register no. 116362, and is approved by HM Revenue Customs if required. (HMRC) as an ISA Manager and SIPP Trustee and Scheme Administrator. Our registered office is: J.P. Morgan Trustee 4.2. If the bank where your money is held becomes insolvent, JPMTAS will Administration Services Limited, 125 London Wall, London EC2Y 5AJ. have a claim on behalf of its clients against the bank. If, however, the Please do not use this address for correspondence. bank cannot repay all of its creditors, any shortfall may have to be shared pro rata between them. 1.2. You are an individual investor or investors. 4.3. Neither we nor our third party administrator hold assets other than 2. General Disclosures assets for our retail clients in our nominee name, or in the segregated 2.1. For the purposes of regulation there are certain disclosures which we client money bank account. need to make to you: 4.4. Your Investments will generally be held in a pooled account. This (i) You agree that you are classified as a Retail Client; means that the legal title to all Investments in the pooled account is (ii) We will not accept limit orders; registered in a nominee name. Individual client assets are identified only within the Nominee Companies’ custody records. Whenever your (iii) In the event that we have material difficulty in fulfilling any of Investments are registered in the name of a nominee, that nominee your Investment instructions, we shall use our best efforts to will hold them on your behalf. Your entitlements will not be separately contact you as soon as practicable to inform you of this; identifiable and, in the event of default by the nominee, if we cannot (iv) Nothing in these Terms and Conditions may be construed so as make up any shortfall, it will be shared pro rata amongst all investors. to exclude or limit any liability that we owe you under the Financial Services and Markets Act 2000, the FSA rules or other 4.5. Save as permitted in these Terms and Conditions, we will not transfer, applicable regulation; and exchange, exercise rights attached to or otherwise deal with your (v) We may deal with your Investment or place funds with any Investments, unless we receive instructions from you. Associate either as principal or agent and we do not have to 4.6. No certificates of ownership will be sent to you. account or disclose to you any benefit which we or they may obtain as a result. 5. Cash Interest 2.2 While we act on your behalf in respect of Fund and Share purchases 5.1. Interest paid on cash held in your Account is calculated daily and paid and disposals under these Terms and Conditions, we will not provide monthly. you with any investment advice or Investment recommendations. If 5.2. The rate of interest you will receive will be the same as the rate you require such advice, you should consult a Financial Adviser. earned by us. The prevailing rate at any time is available on our 2.3 You authorise us to disclose to any tax authority including HMRC, any website or by contacting us. regulatory authority, the police or such other persons as required by 5.3. We only pay interest to you on cash on deposit. Interest is not paid to law applicable to us or as may be required in order for us to carry out you on cash which is in transit into and out of your account. our duties under these Terms and Conditions, such information as they may require in relation to you and your Account. In addition, you 6. Amendment authorise us to comply with any other tax obligations of the UK or 6.1. We may change these Terms and Conditions on giving you reasonable elsewhere applying to us including tax reporting and any withholding notice where practicable. Significant changes will be advised with at tax as set out by law. least 30 days’ advanced notice. 2.4 We (or our licensors) hold all copyright and all other intellectual 6.2. Notwithstanding 6.1 above, we may, at any time, change any aspect of property rights in our website, including without limitation the the service or the manner in which we provide it for business reasons Products, your username, password and Account number. All rights provided that such a change is not materially detrimental to you. are reserved. You have no rights to use any of our intellectual property except as set out in these Terms and Conditions. 6.3. These Terms and Conditions may change as required by law or regulation. In these circumstances advance notice may not be given. 3. Appointments 6.4. We reserve the right to transfer your Investment from JPMTAS to an 3.1. You appoint us, or such other persons as we may from time to time Associate or a third party. We will give you reasonable notice of any direct, as your custodian in respect of Investments and grant us (and such transfer. anyone appointed by us) the right to appoint subcustodians. Investments will generally be registered in the name of a Nominee 7. Eligibility Company or as we may otherwise direct. 7.1. By opening an Account, you acknowledge that you are over the age of 3.2. You agree that at all times you will be the beneficial owner of the 18 and either: Investments, or that you act as trustee on behalf of the beneficial (i) Resident or ordinarily resident in the United Kingdom for tax owner and that the Investments will remain free from any lien, purposes; or charge, right of retention or sale or other encumbrance or impediment. Where you act as Trustee for a Trust, we reserve the (ii) Performing duties as a crown employee serving overseas (or right to request a copy of the Trust Deed. are married or civil partner to such a person). 10 Terms and Conditions
  11. 11. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 11 8. Data Protection 13. Lending and Borrowing 8.1. Please refer to our Data Privacy Policy in Annex 1. 13.1. We will not lend the holdings or cash in your Account to anyone, nor can you use the cash or Investments in your Account as collateral 9. Force Majeure which includes without limitation borrowing money using the cash or 9.1. We shall not be liable to you for any failure or delay in performing any Investments in your Account as security. of our obligations under these Terms and Conditions if any such failure or delay is due to any cause outside of our reasonable control. 14. Anti-Money Laundering and Identity Verification Events outside our reasonable control shall include, without 14.1. As a company conducting investment business we are required to limitation: comply with the Money Laundering Regulations 2007. Our (i) Acts of God; responsibility for compliance with these rules, including but not limited to, verifying the identity and address of our investors, based (ii) Any change to the law or regulation of a governmental or on the guidance issued by the Joint Money Laundering Steering regulatory body; Group, as amended from time to time. (iii) Any act of terrorism; 14.2. To verify your identity we will use a reference agency (this should not (iv) Market conditions affecting the execution or settlement of affect your credit rating) and may need to contact you to obtain transactions in respect of your Account; further information and/or documentation about you, which may (v) Any ‘denial of service’ or other targeted network attack, a result in a delay in the processing of your instructions or in making corruption or error arising during data transmission, any any payments to you. Any cash will be held in a client money account. hardware or software error, unavailability, non-functioning or We will not be held responsible for any losses caused by any delay in interruption of the Internet or other telecommunication implementing an accepted application while establishing your services, viruses or security breaches; and identity. (vi) Any event or circumstance that we are unable, using reasonable skill and care, to avoid. 14.3. Payments to third parties will only be made at our discretion. Evidence of identity of such third parties must be provided with the 10. Charges sale instruction. Normally we only make third party payments to 10.1. We may make changes to the level and structure of the charges personal or legal representatives into an appropriate bank account. relating to your Account or introduce charges relating to your Evidence of identity will need to be provided in such format that we Account. We will inform you of any such change before introducing it. may reasonably require. Any delay in providing this information to us will result in a delay in processing any instruction that we have been 10.2. In order to take charges which accrue on your Account, we may use given or in making any payment. any cash including subscriptions, redemptions, switching proceeds, income or interest held in your Account. 14.4. If you change address, we reserve the right to request certified identification documents that verify your new address details as well 10.3. If there is insufficient cash to cover the charges, then we may sell any as your identity, as appropriate. of the holdings in your Account at our discretion to cover the charges. Where this occurs outside of a Tax Wrapper you may need to take this 15. Rejections into consideration when calculating any capital gains tax liability. 15.1. We have the right to reject, on reasonable grounds, an application for the purchase of Investments or any other instruction in whole or in 10.4. Outstanding charges on your Account should be paid promptly. If you part. We also reserve the right to refuse an application or instruction fail to do so, there may be a delay to your Investment instruction if we have reason to believe that the application may be in when you make further Investments. contravention of any law or regulation or if you have not provided 10.5. We reserve the right to make a charge for the retrieval of information evidence of identity previously requested. that may be held on our archive or for the provision of duplicate 15.2. Instructions we consider to be unclear may lead to a delay in the documents. execution of your instructions to us. We will not be liable for any losses or lost opportunities which may result from such a delay. 11. Liability 11.1. We are not liable for any loss on your Investment however it may 16. Information for overseas investors arise, unless it was caused by our negligence or wilful default. 16.1. J.P. Morgan Products are designed for UK-based clients and 11.2. Notwithstanding the above, we give no warranty to the performance Investments. If you are resident outside of the UK, or hold or profitability of your Investment. investments which are domiciled outside of the UK, then the J.P. Morgan Products may not be suitable for you and we reserve the 11.3. To the extent we are permitted to exclude liability under law or right to reject your instruction to open an Account. We do not offer regulation, we will not be liable for any indirect or consequential tax advice so we recommend that you obtain tax advice if you are not losses you may incur. clear about the tax implications for you. 11.4. We are not liable if you fail to inform us when your circumstances 16.2. J.P. Morgan Products are not available to US resident or US-based and/or personal details change. investors. If you become resident in the US or are a US citizen then you will be subject to US tax reporting and we may not be able to 12. Delegation accept any additional investments into your Account. In addition, if 12.1. In performing any services in relation to your Account we may act you do not provide us appropriate US tax documentation you may through our officers, employees or agents, delegate any authority to also be subject to US backup withholding tax on any payments to you. any person and engage the services of any person, including an If we do not receive any US tax documentation requested for your Associate. We will satisfy ourselves that any such persons are Account or US residents or citizens are not entitled to hold a competent to carry out their functions. particular Investment, we reserve the right to close your Account and return the proceeds to you subject to any applicable tax. Terms and Conditions 11
  12. 12. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 12 17. Information for holdings of overseas Investments an Investment will pass upon his or her death by right of survivorship 17.1. If you hold overseas Investments directly, that is, not a Managed Fund to any remaining holder(s). or Investment Trust that invests in overseas Investments, withholding 20.5. If we need to take any action regarding your Investments for legal, tax may be suffered. We do not currently support reduced withholding regulatory or business reasons and we are unable to take your tax claims under applicable tax treaties on overseas Investments, instructions because we have not received the appropriate legal therefore you may suffer higher withholding tax than that applicable documents (in accordance with 20.1 above), we shall take such action under an applicable treaty – this may not be able to be offset against as we consider appropriate and we shall act as far as possible in what any UK tax liability arising to you. we reasonably consider to be your best interests. 18. Third Party Rights 18.1. These Terms and Conditions may not be enforced by any person who 21. Third party claims 21.1. In the event of a failure by a third party which materially affects your is not party to them. Account and if you request and we agree, we will pursue on your behalf all appropriate legal remedies against any third party to 19. Termination and unclaimed cash recover any compensation due to your Account. Costs and expenses 19.1. We may terminate these Terms and Conditions in respect of any properly incurred by us in connection with the pursuit of such Investment by giving at least 21 calendar days’ notice of our intention remedies will be payable by you upon demand if not met from to do so. Termination of your and our rights and duties under these your Account. Terms and Conditions is subject to the completion of and payment for any outstanding transactions and payment of all fees, charges and tax due. We may retain Funds to ensure this is done. 22. Communication 22.1. You must ensure that you provide us with any changes to your 19.2. We may terminate these Terms and Conditions with immediate effect address (postal and/or email) or other personal detail changes as if you commit a material breach of these Terms and Conditions or any soon as they occur to enable us to remain in contact with you. information you provided on your application form for an Investment 22.2. Any notices sent to us will only be effective when actually received at is found to be factually incorrect. A material breach will include: our administration office. If we send a notice to you we will deem that (i) You being declared bankrupt; it has been received within five Business Days of dispatch. (ii) You or your Financial Adviser not complying with these Terms and Conditions; 22.3. To the extent permitted by applicable law, we may record and monitor electronic communications (including email and telephone) to ensure (iii) Our believing (on reasonable grounds) that you may be involved compliance with our legal and regulatory obligations and internal in a criminal activity that might impact on our reputation; or policies or training requirements. (iv) You acting in such a way that we reasonably believe to be unacceptable, including making switches with excessive 22.4. You authorise us to accept any communication that we reasonably frequency or discourteous conduct to us or our employees or believe to have come from you or on your behalf and you release us agents. If these Terms and Conditions are terminated for any of from any liability arising, directly or indirectly, from acting in the reasons above, we may recover any losses or expenses that accordance with such communication. we have incurred. 22.5. We may at our discretion decline to act upon any communication or 19.3. Dividends received after your J.P. Morgan Product has been closed instruction and you release us from any liability arising, directly or may take up to four months to be received and will be paid out as indirectly, from our resulting action or omission. We will notify you soon as is practical after this. promptly of any such decision. 19.4. Following closure of an Investment, a small cash balance may remain 22.6. Where we ask you to respond to a communication within a certain on your Account. Where this occurs, we will send you cash which time frame we shall not be responsible for the consequences from exceeds £5.00. Anything under this amount may be donated to a your failure to respond in a timely manner. registered charity of our choice. 22.7. Where you have authorised us in writing to receive and act upon 19.5. If we are unable to establish contact with you for a period of six years instructions from your agent or to provide information to a third or more, we reserve the right to retain any cash that remains party about your Account, we may continue to do so until we receive unclaimed by you or your representative and deal with it as we written notice from you to the contrary. consider appropriate. We will make all reasonable attempts to contact 22.8. We will communicate with you in English. you at the last address provided by you during that period. 23. General provisions 20. In the event of death 23.1. We reserve the right to transfer your Product from JPMTAS to an 20.1. We will take no instructions on your Investments after we have been Associate or a third party. We will give you reasonable notice of any notified of your death and will not do so until we receive appropriate such transfer. legal documents in relation to the administration of your estate. 23.2. If any provision of this Agreement is found to be invalid by any court, 20.2. Following notification of your death your Investments will continue to the invalidity of that provision will not affect the validity of the accrue any charges or fees in accordance with the then current remaining provisions of this Agreement, which shall remain in full charges schedule. force and effect. 20.3. Following notification of your death income will not be reinvested or 23.3. The failure or delay either by us or you to exercise or enforce any paid out. rights, or enforce any obligation, under these Terms and Conditions is 20.4. In the event of the death of a joint holder of an Investment we will not a waiver of those rights nor will it prevent subsequent only act on the instructions of the remaining holder(s) once we enforcement of those obligations. receive the relevant death certificate. The rights of any one holder of 12 Terms and Conditions
  13. 13. 16012 JPM Key Features:Layout 1 02/09/2011 18:34 Page 13 23.4. You must not assign your rights, or subcontract your obligations, be entitled to sell your Investments and deduct any amounts due to under this Agreement without our prior written consent. us from the proceeds of sale of such Investments. 23.5. The exercise by us of any express right set out in this Agreement is 23.7. We reserve the right to refuse, on reasonable grounds, any instruction without prejudice to any other rights, powers or remedies available to without giving a reason for doing so. In the event that we receive an us in these terms, at law, including those which would be available to incorrectly completed instruction, we will not proceed with the us if these express rights were not set out in this Agreement. Investment until we receive the correctly completed documentation. 23.6. You agree to indemnify us against any costs, claims, demands, loss or 24. Jurisdiction expenses suffered by us as a result of your use of the website and 24.1. These Terms and Conditions are governed by and construed in services other than those arising as a result of our fraud (including accordance with the law of England and Wales and any matters our fraudulent misrepresentation), wilful default or negligence. To arising under them will be subject to the exclusive jurisdiction of the meet any liability which you may owe to us under this clause we shall Courts of England and Wales. Section B – J.P. Morgan WealthManager+ Online Services Terms and Conditions This section applies to using the WealthManager+ website to access your Account online. 1. Usernames and passwords 4. Online communication 1.1. You will be issued a username and a single-use password when you 4.1. Any email communication we send to you will be deemed received by open a WealthManager+ Account. Single-use passwords will expire you when that communication leaves our server. Any email after a period of time if the account is not activated. Your username communication you send to us will be deemed received by us when and a new password can be requested from us. that communication is received on our server. You acknowledge that email communications via the internet may not be secure and accept 1.2. You must safeguard your username and password. Your password must responsibility accordingly. We do not recommend that you send any remain confidential and you must take all reasonable steps to prevent personal or confidential information by email. We do not accept deal disclosure of your password. You must report disclosure or possible instructions via email. disclosure of your password to us as soon as you become aware, or suspect, that your password has been compromised and provide us 5. Limitations of liability with all information and assistance as we may reasonably require. 5.1. The website may be temporarily unavailable or restricted for 1.3. We will never ask you for Account information or your passwords in administrative or any other reason and we do not accept any an email. If you receive emails that you believe are fraudulent, please responsibility and will not be liable for any loss or damage arising out send them to report_abuse@jpmorgan.com for investigation. of, or in connection with, loss of access to, or use of, the website. 1.4. The receipt of the username and single-use password does not imply 5.2. You acknowledge and accept that we, and anyone that we are that your application has been successfully processed. responsible for, have no liability to you arising from: • Any error, corruption, inaccuracy or incompleteness in any 2. Provision of your WealthManager+ Account information input by you on the website; and 2.1. Your right to use your WealthManager+ Account is personal to you • Your use of, or access to, this website except as a result of our and you must not permit any other person to access it. negligence or wilful default. 2.2. If you have a Financial Adviser, they can request their own username 5.3. While we take all reasonable care to ensure all electronic and password to be issued which will allow them to view your communication, emails and any attachments we may send to you are Account. free from any known virus or bug, we do not give any warranty to this effect and, unless proved to be due to negligence on our part, we 2.3. We reserve the right to change the website at any time without notice shall not be liable to you for any loss, damage or expense you may to you, even if this means that you need to update or replace the incur as a result of such virus or bug. equipment that you use to access the website. 2.4. We reserve the right to close a WealthManager+ Account which has 6. Cookies never had holdings or a cash balance after a period of 12 months. 6.1. We may use Cookies or similar software in the provision of the online services. Full details of our Cookie policy are available on our website. 3. Using your WealthManager+ Account 3.1. We reserve the right to add to, alter, upgrade or discontinue any or all 7. Suspension and termination of your WealthManager+ Account of the online services available to your WealthManager+ Account or 7.1. At our sole discretion, we may immediately suspend or terminate information contained on the website without notice. your access to and use of all or any part of the website. We will inform you of any suspension or termination as soon as reasonably possible. 3.2. We are not obliged to verify the source of any instruction made through your use of the website as long as we reasonably believe it to 7.2. Online access to your Account will be suspended when we are notified be genuine. In the event that we do not consider any such instruction of your death. to be genuine and accurate we may decline to act upon such instruction and you acknowledge and confirm that you hereby release us from any liability whatsoever, directly or indirectly, from our resulting action, inaction or omission. However, for your protection, we reserve the right to contact you and obtain written confirmation from you of any instruction made through your use of the website. Terms and Conditions 13