These terms currently apply to all services provided by Nutmeg. They are effective from 5 November 2022. You can find the previous version of these terms here.
You – this means:
(i) the person we’ve opened a General Investment Account and/or an ISA for; and/or
(ii) the Registered Contact in respect of a Junior ISA,
Us – Nutmeg Saving and Investment Limited, trading as John Lewis Investments, so whenever you see ‘we’, ‘us’ or ‘our’, you know who we’re referring to.
When you sign up to John Lewis Investments, we may provide you with financial advice and/or open a Portfolio for you. Your Portfolio will be used to buy and sell investments. Those investments will be held in one or more Products within your Portfolio.
We will provide you with a discretionary investment management service in relation to your Portfolio, which means that we will make all investment decisions on your behalf. We make these decisions to help you achieve the investment goal for the Investment Parameters that you choose for your Portfolio/Product. We will give you simplified financial advice to help you decide which Investment Parameters are best suited to you.
Some of the words in this agreement have a special meaning. These words are capitalised in this document and their meaning is set out in section J below.
We provide a General Investment Account, stocks and shares ISA, and/or Junior ISA. You may be able to open one or more of these Products with us, depending on your eligibility.
When we buy and sell investments (“Deal”) for you, we try to get the best possible outcomes for you. We do this by following our Order Execution Policy. You can read our Order Execution Policy here.
At the moment we Deal exclusively in exchange-traded funds (“ETFs”) and exchange-traded certificates (“ETCs”) though we may Deal in other investment types in the future.
Investing carries risks, including that the value of your investments may go down as well as up. You should be sure to retain adequate emergency cash outside your Portfolio. Three months' salary is a good starting point.
Customer Investment Risks gives more information on the risks of buying investments. You should read this information before applying for a Portfolio or Product.
We will not provide you with legal or tax advice in connection with your Portfolio, Product or any investments. You are responsible for any matters relating to your own tax or legal position. If you are, or become, liable for taxes in connection with the Portfolio, you (and not we) are responsible for paying these.
Fees and charges
We charge an annual management fee. This is a percentage of the amount in your Portfolio. We charge an additional fee if you use our Personal Financial Advice Service. Please see our Fees and Charges Schedule for more information.
There are other charges that you have to pay to the providers of the investments in your Portfolio. These charges may vary from time to time. You can see the current charges here.
Other charges may also apply, for example where we carry out a Deal for you. Further details are provided here.
This document contains the terms that apply to our services and your Portfolio. This includes matters such as:
Most of the terms apply to all our Products. However, some of the terms apply only to an ISA or Junior ISA. We’ve outlined where this is the case in the relevant term itself.
The agreement between you and us is made up of the terms in this document, the information that you provide to us, the Fees and Charges Schedule, and any other document that you and we agree applies. The services, Portfolios and Products are supplied by us and not John Lewis.
The agreement forms a legal contract between you and us and comes into effect when we accept your application for a service or Product. You should read this document and the other parts of the agreement carefully before applying for a service, Portfolio or Product. If there is anything that you do not understand, please email firstname.lastname@example.org for more information.
These terms are always available on our website and you can download or print them. If you want to know about other formats that we can provide, please contact us.
We’re here for you. You can get in touch with us by secure email (we call this Nutmail), by webchat at https://investments.johnlewisfinance.com/contact by telephone on 020 3014 7485 or email at email@example.com.
If we need to get in touch with you, we will send you a Nutmail. You must sign in to our website to read any Nutmail messages we send you. We may also call you by phone, use email or the post to contact you. We aren’t responsible if you don’t get information or notices from us because we’ve used out-of-date contact details. That’s why it’s really important that you:
· tell us as soon as possible if your contact details change; and
· check your emails and Nutmail regularly.
We may record and monitor telephone conversations and electronic communications with you. We will store these records for at least seven years, during which time you can ask us for copies.
We will always use English to communicate with you.
You can let us know that you’d like to cancel this agreement without giving a reason within 30 days of entering into it (see cancellation). You can also end your agreement at any time by giving us 30 days’ notice (see ending this agreement and closing your Portfolio).
We will treat you as a retail client. This means that you will benefit from the highest level of protection available under the FCA Rules.
Your Security Credentials are key to keeping your money, investments and information safe.
To make sure that your Portfolio isn't accessed by an unauthorised person you must keep your Security Credentials safe. Here are just a few security tips to get you started.
If you lose (or someone takes) your Security Credentials or if you think someone else has accessed your Portfolio you must contact us as soon as possible.
We'll ask for information or other help, and assist (and ask you to assist) any the police in any investigation.
Here's why this is important
If your Security Credentials are used to access your Portfolio we'll assume we're dealing with you. We may follow instructions and give access to information about your Portfolio.
What you must do
In order to have a Portfolio and/or for us to provide you with services, you must:
If you don’t meet these conditions then we can refuse to open a Portfolio or Product or provide services to you. If you stop meeting these conditions after we have opened a Portfolio for you or started providing services, section 16 will apply.
We will generally only provide a Portfolio or provide services to you if you are resident in the UK. If you live or are tax resident outside the UK and want to open a Portfolio or use our services, you should contact us at firstname.lastname@example.org. We do not provide Portfolios or services to US Persons.
You must tell us if you move to a different country, become tax resident in a different country, or become a US Person. If this happens, we may end this agreement and close your Portfolio in accordance with section 16.
Appointing someone else to operate your Portfolio
You can appoint another person to operate your Portfolio for you. To do this, you'll need to provide us with a Power of Attorney signed by you. Sometimes another person may also be appointed to act for you. This could happen if you're unable to operate your Portfolio yourself, for example because you have a mental incapacity. As long as we receive the correct legal documentation confirming the appointment, we'll allow that other person to operate your Portfolio. Until we've received these documents we won't allow any other person to give instructions on the Portfolio, for example to make a withdrawal or close it.
If we know that a person's legal authority to act for you has ended, we won't accept an instruction from them about your Portfolio.
These terms apply to any person allowed or appointed to use your Portfolio, but you'll be responsible for everything they do. This includes if they make you breach the agreement.
Your rights to cancel
You have the following rights to cancel this agreement and/or a Product that we open for you:
If you wish to cancel, you must send us a Nutmail or email to email@example.com, expressly stating that you wish to cancel.
What happens if you cancel
If you cancel, you will have no further obligations in relation to the service or the Product and you will not be charged any fee for cancelling.
You agree that we may start providing the relevant service(s) or Product(s) to you before the end of the 30-day cancellation period.
If you cancel, we will return the amount that we have received from you in relation to the Product(s) that you are cancelling, minus a proportionate charge for what we have provided to you up until cancellation including costs we have incurred on your behalf such as dealing charges and stamp duty.
Cancelling an ISA or Junior ISA
If you cancel an ISA or Junior ISA within the 30 day period, we will treat you as though you have not subscribed to the ISA or Junior ISA. If you cancel a transfer from another ISA manager, we will take reasonable steps to return the transfer to that ISA Manager.
When you open a Product with us you will choose which Investment Parameters to apply to that Product so that we know how to manage the Product for you. We will provide you with financial advice to help you make this decision. We call this our “Simplified Advice Service”. We will also provide you with our Simplified Advice Service if you want to change your Investment Parameters. We will require you to use the Simplified Advice Service annually to ensure that the Investment Parameters are still suitable for you.
Our Simplified Advice Service is designed to identify which Investment Parameters are suitable for you. We use a streamlined process to do this, which means that we will ask you specific questions to understand your investment needs and objectives in relation to the Product. We will make a recommendation as to which, if any, Investment Parameters meet those needs and objectives. We will not consider your wider financial needs or circumstances or any other investments that you hold outside the Portfolio.
Our Simplified Advice Service is “restricted advice”. This is because we will only consider the range of Investment Parameters that we offer when making a recommendation to you. We will not consider whether any other product or service that may be available from another provider might be suitable, or more suitable, for you.
Your Portfolio is a discretionary management portfolio. This means that we will make investment decisions in respect of your Portfolio and the Products within it at our discretion, subject to the Investment Parameters that you have chosen.
You must provide us with such information as we request to enable us to make investment decisions which are suitable for you. This includes information about you, your financial circumstances, your financial knowledge and experience, your attitude to risk and your investment objectives. You must tell us as soon as possible if this information changes.
You authorise us to enter into any kind of arrangement or transaction on your behalf. We may invest any amount or any proportion of your Portfolio and/or Product in any investment(s) or investment type(s), or fractional entitlements to investments, and we may do so in any currency, and on any financial market. This could include investment in, for example:
We will provide you with a suitability report which explains the investment decisions we take in respect of your Portfolio.
We may make investment decisions which apply to other customers’ Portfolios as well as yours, provided that we are satisfied that the decision is suitable for you.
Our discretionary management service is not a guarantee that the investments in your Portfolio will perform as you, or we, expect.
Paying in cash
We can accept payments of cash into a General Investment Account, ISA or Junior ISA where they are made from any UK bank account in your name. You can make such payments by debit card, Direct Debit or bank transfer.
We apply a minimum amount of £75 to card payments into your Portfolio.
Payments by debit card or Direct Debit typically take three business days to reach us. We will allocate amounts to your Portfolio only once we have received cleared funds and all the information we need to do so.
Payments should be made in pounds sterling. If you ask us, we may agree to accept payments in a currency other than pound sterling in which case we may charge a fee for this.
If you have more than one Product and you send us money without telling us which Product you want to pay it into, we may either reject that money or allocate it to any one of your Products.
We may, in accordance with the Applicable Requirements regarding financial crime, reject any payments into your Portfolio where we know or suspect that you are not the beneficial owner of the amount paid.
Paying in investments
If you ask us, we may agree to accept transfers of investments into your Portfolio in which case we may charge a fee for this. We may reject a transfer of investments that we have not agreed to in advance.
We will carry out each Deal for your Portfolio in accordance with:
If we agree to execute a Deal for you in accordance with your specific instructions, it may not be possible for us to obtain the best result that would otherwise be available to you at the time of the Deal.
You agree that we may Deal on your behalf outside of a regulated market or MTF when we believe it is in your best interests to transact in this way.
When we carry out a Deal for your Portfolio, we may combine it with Deals for other clients in accordance with our Order Execution Policy. This is called "order aggregation". We will do this where, at the time we Deal, we reasonably believe that the aggregation is unlikely to work overall to your disadvantage. However, the result of the aggregation may actually be to your disadvantage in relation to a particular Deal compared to if we had bought or sold your investments separately.
Where we deal for you in fractional entitlements to investments, these Deals can only be effected through us by combining your entitlement with those belonging to our other clients so that we can Deal in a whole investment. A fractional entitlement cannot be traded without this process and can only be sold through us to realise cash.
The price of an investment may change between us placing a Deal and it executing. This means that, on execution, there may be slightly less cash and more investments in your Portfolio than intended (or vice versa). We will take steps to resolve this at the next opportunity. A price change may mean that your Portfolio has a negative amount of cash for a short period. This happens where there is not enough cash in the Portfolio to cover an increase in the price. Where this happens we (1) cover any shortfall using Nutmeg’s money to ensure there is always enough cash in the client money account; and (2) sell the surplus investments to give the Portfolio a positive cash balance as soon as we can.
How your investments are registered
We are the custodian of the investments in your Portfolio and we will hold them for you in “safe custody” in accordance with the Applicable Requirements. This means that they will be kept separate from our own investments and ownership of your investments will be registered in the name of either:
If we register your investments in the name of a sub-custodian located in a jurisdiction outside of the UK:
Mixing your investments with those belonging to other customers
You agree your investments will be mixed (pooled) with investments held by the nominee company or sub-custodian for other customers. This means that:
We have controls in place to ensure that your investments are not used to settle trades of another customer. Regardless of the controls and measures in place there can be instances when shortfalls in money or investments can occur. This can be just during the working day or sometimes for a longer period. If there is a shortfall in any of the holdings of the nominee company or sub-custodian you may share proportionally in such losses. Where we identify a discrepancy that results from or reveals a shortfall, or during an investigation where we deem it appropriate to do so, we will allocate a sufficient amount of our own money to cover the value of the shortfall, which we will hold as client money.
To the extent that your Portfolio holds fractional entitlements to investments, your entitlement will be reflected in our records. A fractional entitlement exists only in our records and cannot be sold without being combined with other fractional entitlements to make a whole share. This means that in the event of our insolvency you would not be able to have these fractional entitlements returned to you and they would have to be sold in order to realise their cash value. This could impact on the extent to which, or the speed with which, you would be able to recover your fractional entitlements.
Our responsibility for nominees and sub-custodians
We accept responsibility for the acts or omissions of a nominee company controlled by us or a group company as if those acts or omissions were our own.
We may appoint a third party in the UK or overseas to act as sub-custodian in accordance with the Applicable Requirements. Where we do this, we will exercise all due skill, care and diligence in the selection, appointment and periodic monitoring of that sub-custodian. However, we accept no responsibility for the default or other failure to perform by a third party sub-custodian except to the extent that we have failed to exercise such due skill, care and diligence. If your Portfolio holds an ISA or Junior ISA then section 23.11 or 24.18 (as relevant) will also apply to that Product.
Where your investments are held by a third party sub-custodian, we cannot ensure that you would not lose any investments if that sub-custodian fails. In order to show that your investments are not available to that entity’s creditors, we will take reasonable steps to ensure that their records show that the investments are held for you and that they do not belong to us, the nominee company or the third party sub-custodian. In the event that a nominee company or third party sub-custodian becomes insolvent we will seek to recover your investments through all means reasonably available to us, including from the administrator or insolvency practitioner appointed to deal with that entity’s affairs. During such period we may not be able to Deal in the affected investments.
Entitlements arising from your investments
We or any sub-custodian will be responsible for claiming and receiving dividends and other entitlements automatically arising in respect of your investments. Where these entitlements are in cash, we will reflect these entitlements in your Portfolio and hold them as client money. Sometimes withholding taxes or other deductions may apply to such entitlements. We or our sub-custodian can, where required to comply with legal or regulatory requirements, withhold or deduct tax or other amounts from such payments and deduct the costs incurred of doing so from your Portfolio. If you are eligible to reclaim any such withholdings or deductions it will be your sole responsibility to do so.
What we can do with your investments
Neither we nor any sub-custodian will lend your investments to anyone else or use them to raise finance.
You authorise us, and the nominee companies and third party sub-custodians that we appoint, to hold or transfer investments (or entitlements to them) with or to: securities depositaries, clearing or settlement systems, account controllers or other participants in the relevant systems in the course of providing the service. These investments or entitlements will be separately identifiable from any investments or entitlements held in the same system for our own account. These entities may be located in or outside the UK. You agree that we will be bound to act in accordance with the rules of the relevant depository or clearing or settlement systems. We will not be responsible for the default or failure of such entities, any other counterparty or of any depositary or agent of those entities. Our ability to deliver any securities or payments to you as a result of a Deal is limited to the extent that we receive those securities or payments from those entities.
We can transfer your investments to another person as set out at section 18.3.
Sub-custodian’s right to retain or sell your investments
You expressly authorise us to grant our sub-custodian the right to retain any cash, or sell any investments, in order to meet any liabilities arising in connection with the provision of its services to us or you, and to deduct or set-off any amount owed to it from that cash or those investments for that purpose.
Our rights to give your investments to charity if we cannot contact you
Where permitted by the Applicable Requirements, if we have not received instructions in relation to your Portfolio for at least 12 years and we have taken reasonable steps to contact you but cannot do so, we may sell your investments and pay the proceeds and/ or transfer your investments to a charity of our choice. Where we do this we will unconditionally undertake to pay you a sum equal to the value of the investments at the time they were sold or transferred to that charity if you later contact us to claim your investments.
Your money will be kept separate from our money
Where we hold cash in your Portfolio we will hold it as client money in accordance with the Applicable Requirements. This means that we will keep money that we hold for you separate from our own money.
Your money is held in an account with an approved bank
Your money will be placed in a client money bank account with an approved bank in accordance with the client money rules.
We will exercise due skill, care and diligence when we decide which approved bank(s) to use and periodically review that decision. We will not be responsible for any acts, omissions or the default of the approved bank or those who act on its behalf, except to the extent that we have failed to exercise such due skill care and diligence. In the event that an approved bank becomes insolvent we will seek to recover your money through all means reasonably available to us, including from the administrator or insolvency practitioner appointed to deal with that approved bank’s affairs. If your Portfolio holds an ISA or Junior ISA then section 23.11 or 24.18 (as relevant) will also apply to that Product.
Your money will be mixed (pooled) with that belonging to other customers
Your money will be pooled in the client money bank account with money belonging to our other customers. This means that your client money will not be separately identified from that of our other customers. If the approved bank does not hold enough money in the client money bank account to meet your entitlement and those of all of the other customers (for example, because the approved bank becomes insolvent), you and the other customers would share that loss in proportion to the size of your respective entitlements.
Other third parties that can hold your money
You authorise us to allow another person, such as an exchange, clearing house or intermediate broker, to hold or control your client money for the purposes of Deals that we make for you through or with that other person.
We can also transfer your money to another person as set out at section 18.3.
Your money may be held outside the UK
Your money may be held outside the UK if:
In these circumstances the applicable legal and regulatory regime will be different from that in the UK and if that person cannot meet its obligations, then your money may not be treated in the same way as it would have been treated if it had been held in the UK. We will, to the extent possible, make a claim on your behalf to recover your money, including, where applicable, through any available compensation scheme.
Interest payable on your money
To the extent that we receive interest from the approved bank in respect of your money, we will credit that amount to your Portfolio, as long as it is more than the minimum threshold set out here. Any interest will be calculated on a daily basis and paid to your Portfolio every three months.
Our rights to give your money to charity if we cannot contact you
Where permitted by the Applicable Requirements, if there has been no movement in the balance of the client money in your Portfolio (except for payments or receipts of interest, charges or similar items) for a period of at least six years and we have taken reasonable steps to contact you but cannot do so, we may stop treating this as client money and may pay it to a charity of our choice. Where we do this, we will unconditionally undertake to pay you a sum equal to that paid to charity if you later contact us to claim these amounts.
If you ask us in writing to do so, we will arrange for you to receive the Key Investor Information Document (KIID) issued by a relevant manufacturer of the ETFs in which your Portfolio is invested.
If you ask us in writing to do so we will, in relation to any relevant company or unit trust in which your Portfolio is invested, arrange for:
We will also tell you what you need to do, if you want to exercise any rights attached to your investments in another way.
We will inform you of any rights issues, takeover offers, capital reorganisations, conversion or subscription rights (collectively "corporate actions") that affect or relate to your investments. We will act on your instructions in relation to such corporate actions, including any standing instructions that you have given to us.
To the extent that your Portfolio holds fractional entitlements to investments, the rights set out in sections 9.2 to 9.4 above will not apply.
You can make a withdrawal in cash from a General Investment Account or an ISA at any time. You can make a withdrawal in cash from a Junior ISA subject to the limitations on withdrawals that apply to that Product.
If you want to make a withdrawal you will need to give us an instruction telling us how much you want to withdraw and, if you have more than one Product, which Product(s) you want the withdrawal to be made from.
Provided that there is sufficient value in the relevant Product(s), we will process your withdrawal request at the next trading cycle. We will pay the money to the UK Bank Account when we receive it. Unless you give us specific instructions to do otherwise, we will do this by paying any cash held in your Product(s) and then, to the extent necessary, by selling your investments.
Except to the extent that we hold fractional entitlements in investments for you, you can make a withdrawal of investments (i.e. where the investments are paid to you rather than to a new ISA manager) from an ISA or (subject to the limitations at section 24) a Junior ISA, subject to the limitations on withdrawals that apply to those Products.
Except as set out in section 10.4, withdrawals or transfers of investments from your Portfolio are subject to our prior agreement. We are not able to effect a withdrawal or transfer of fractional entitlements to investments. We agree only to sell those fractional entitlements and effect a cash withdrawal or transfer to that extent.
We may charge a fee for affecting a withdrawal or transfer of investments as set out in the Schedule of Fees and Charges.
You can give us instructions in relation to your Portfolio by using the method(s) that we agree with you from time to time. We are not obliged to acknowledge receipt of your instructions.
We may, at our discretion, delay or not carry out an instruction:
We will not be liable for any loss or expense that you incur as a result of such a delay or refusal, provided that we have acted reasonably.
We may act on any instruction where we reasonably believe in good faith that the instruction is from you and is correct, without carrying out any further checks or investigations. We will not be liable for following an instruction which is not in fact genuine, or for investigating, not investigating, or not following any instruction that we reasonably believe may not be genuine, provided that we have acted reasonably and in good faith when we have done so.
Where we provide you with our discretionary management service, we will send an electronic statement and valuation report in respect of your Portfolio every three months. This report will include details of the cash and investments that we hold for you; the interest, dividends and other payments received; corporate actions arising; how the Portfolio has performed; transactions carried out; and the fees and charges deducted.
You can ask us by Nutmail to provide a confirmation that we provide discretionary management services to you where your employer requires one. We will provide this free of charge. We will usually provide this by email but if an original signed letter is required, we can write to you.
We may temporarily prevent access to your Portfolio and/or Products and/or our services where it is reasonably necessary for us to do so to in order to comply with the Applicable Requirements, or to carry out important maintenance or upgrades to our services.
We can block access to your Portfolio and/or Products if we reasonably suspect there has been unauthorised or fraudulent use of your Portfolio or we have reasonable concerns about the security of your Portfolio. We'll let you know if we do this, and why, unless it would be unlawful for us to tell you or it would affect the security of your Portfolio. If possible, we'll tell you before we put a block in place but, if we can’t, we'll tell you immediately after we've done it. We'll remove a block as soon as the reason for it ends. We may get you to change your Security Credentials if we reasonably believe this is necessary to keep your Portfolio secure.
You explicitly consent to us accessing, processing, and retaining any information you provide to us, for the purposes of providing the Portfolio and the services to you in accordance with this agreement. This doesn't affect any rights and obligations you or we have under data protection legislation. You may withdraw this consent by closing your Portfolio. If you do this, we'll stop using your data for this purpose, but may continue to process your data for other purposes.
We will not be responsible for any losses to you unless those losses are directly caused by our negligence, wilful default or fraud.
We will not be liable to you for any act or omission by us which we reasonably believe to be necessary to avoid us breaking Applicable Requirements.
We won't be responsible for any losses to you if we can't perform our obligations under this agreement because of abnormal or unforeseeable circumstances beyond our control (or the control of any third parties acting for us), the consequences of which were unavoidable despite all efforts to the contrary.
Nothing in this agreement will exclude or restrict any duty owed to you under the Applicable Requirements or any liability that Applicable Requirements do not allow us to exclude or restrict.
If you seriously or persistently fail to meet your obligations under this agreement:
You are responsible for reimbursing us for any costs or liabilities which we properly and reasonably incur as a result of complying with our obligations under this agreement or Applicable Requirements.
If the value of any Product which is an ISA or a General Investment Account falls below £500 because of a withdrawal or transfer that you have made, we may sell any investments in that Product and hold cash for you until you make a payment or transfer into the Product which beings the value back above £500.
If the value of any Product falls below £75, we may sell the investments in that Product and hold only cash for you.
Our right of set off
If you have cash or investments in your Portfolio, we may “set it off” against any amount you owe us or any group company which is due for payment.
We’ll always write to you before we use our right of set off. We’ll only use this right if we think it’s reasonable, taking into account your circumstances and the Applicable Requirements. We can use cash or investments in your Portfolio even where there’s a court decision against you or you are fined (including interest arising after the date of the decision or fine) except where we’re prevented by the court or Applicable Requirements.
We may change the terms of this agreement at any time where:
We’ll only make changes for these reasons if it’s reasonable for us to pass the impact of that change on to you. In all cases, we'll always be proportionate in how we respond to a change.
We may also change the terms of this agreement at any time for any other valid reason not specified in section 17.1 above.
We may also make changes to the terms of this agreement at any time where the change would not be to your disadvantage. For example, such a change might be in order to make the agreement fairer for you, to make it easier to understand or to introduce a new optional product or service.
Where we make a change to the agreement, we will tell you what that change is, the reason for the change and the date on which the change will come into effect. Unless Applicable Requirements prevent us from doing so or where the change is not to your disadvantage, we will give you reasonable prior written notice of any change to this agreement.
If you are not willing to accept a change we make to this agreement, you may choose to end this agreement immediately. If the change is not for one of the reasons given in section 17.1 or 17.3, we will agree to waive any costs and charges that would normally apply on termination.
You may not assign or transfer your rights or obligations under this agreement to any other person unless you get our consent in advance.
We may delegate some or all of our obligations to another person, in accordance with the other terms of this agreement and the Applicable Requirements. We may assign our rights and obligations under the agreement at any time. We will tell you before such an assignment takes effect.
If we transfer to a third party the business to which this agreement, your client money and/or investments relate, you agree that we may transfer your client money and/or investments to that third party as part of the transfer of business, provided that:
If we transfer your client money and/or investments as we have described, we will give you notice no later than seven days after the transfer, informing you:
When you can end the agreement
You may end this agreement and/or close any of your Products at any time, by giving us 30 days' notice by Nutmail.
When we can end the agreement
We may end this agreement, close any of your Products and/or stop providing any of our services to you at any time by giving you 30 days' notice.
We may end this agreement, close, consolidate or merge any of your Products and/or stop providing any of our services to you immediately if:
We will inform you if we decide to do any of these things, unless to do so would be a breach of the Applicable Requirements.
How we close your Products
If you or we terminate the agreement and/or close a Product, we will:
So that we can close your Product, you must tell us how you want to withdraw and/or transfer your cash/investments from that Product in accordance with section 10. If you do not do this within a reasonable time we may sell your investments and pay the resulting cash in your Product to your UK Bank Account or to another account in your name.
If you or we end the agreement or close a Product, you will be liable for our costs and charges up to the date of the Product closure and any expenses or losses necessarily incurred by us or on our behalf in order to conclude outstanding transactions for your Product.
Unless we have ended this agreement or closed your Portfolio/Product under section 19.2 or you are ending the agreement under section 17.5 because we have made a change to the agreement, costs and charges may apply for the transfer of cash and/or investments. Please see the Schedule of Fees and Charges.
This agreement will remain in place in respect of Product until we have transferred all cash and investments from that Product, but only in respect of our holding of that cash or assets for you in the meantime.
If you die we will follow the instructions of your personal representatives, who will be bound by this legal agreement, if we receive proof of their authority.
English law applies to this agreement and any dealings we had before you and we entered into this agreement.
The courts of England and Wales have jurisdiction to hear any disputes about this agreement, unless you live in another part of the UK in which case any disputes may be brought in that part of the UK.
A person who is not a party to the Agreement cannot enforce or enjoy the benefit of any of its terms under the Contracts (Rights of Third Parties) Act 1999.
What is the ISA?
The ISA is a stocks and shares ISA which we operate as ISA manager in accordance with the ISA Regulations.
Provided that your ISA is valid under the ISA Regulations it will be exempt from UK capital gains and income tax.
Opening an ISA
In addition to the requirements that apply to our Products generally, in order to open an ISA with us you must:
Unless you tell us otherwise or you fail to make a subscription in each tax year, we will renew your ISA at the beginning of each subsequent tax year.
We will open your ISA once we have received:
Subscriptions to your ISA
You can subscribe to your ISA in cash as set out in section 5 or by transferring cash from a General Investment Account you hold with us.
In each tax year you can only subscribe in accordance with the applicable subscription limit for that tax year. The current subscription limit is set out here.
If you cease to be UK resident then you will not be permitted to make any further subscriptions to your ISA.
Transfers to your ISA
Where permitted by the ISA Regulations, you may transfer cash to your ISA from another ISA that you hold.
What you must do in respect of your ISA
At all times while you have an ISA with us, you must:
If you do not meet these requirements, we can take the steps set out at section 16 and/or your ISA may be invalid under the ISA Regulations.
How we will manage your ISA
We may delegate any of our functions or responsibilities as ISA manager to any other person provided that we are satisfied that person is competent to carry out those functions or responsibilities.
You authorise us to make disclosures to HMRC as reasonably required for us to comply with the ISA Regulations.
If we have reason to believe that your ISA is invalid, we will notify you and we may take any reasonable steps which are required or permitted by the ISA Regulations in respect of that invalidity. If your ISA becomes invalid, it may no longer be (or may not have been) exempt from UK income and capital gains tax.
In some circumstances an invalid ISA will be eligible for repair under the ISA Regulations. If this is the case, then we will take reasonable steps to repair the ISA.
If any investments in your ISA are evidenced by share certificates or other documents evidencing title, these will be held by us or as we may direct.
We do not accept additional permitted subscriptions on your death.
Transfers to another ISA manager
Where permitted by the ISA Regulations, you can ask us to transfer all or part of the value in your ISA to another ISA manager. We will usually only make such a transfer in cash, by selling your investments and then making the transfer. If we agree to make a transfer in investments, we may charge a fee for this as set out in the Schedule of Fees and Charges. We are not able to effect a withdrawal or transfer of fractional entitlements to investments. We agree only to sell those fractional entitlements and effect a cash withdrawal or transfer to that extent. We permit partial transfers, but if you want to transfer subscriptions you have made in the current tax year you must transfer all of your current tax year’s subscriptions.
We will process any transfer from your ISA within 30 days of receiving your request (which will be given to us by your new ISA manager). You can ask us to make the transfer at a particular time in which case we will endeavour to meet this request.
Withdrawals from your ISA
You can make withdrawals of cash and/or investments from your ISA in accordance with section 10. If you ask us to, we will move the cash and/or investments into your General Investment Account.
We will process any withdrawal from your ISA within 30 days of receiving your request. You can ask us to make the transfer at a particular time in which case we will endeavour to meet this request.
We do not offer a flexible ISA. This means that amounts that you withdraw from your ISA cannot be paid back into your ISA without counting towards the subscription limit for that tax year.
What is the Junior ISA?
The Junior ISA is a stocks and shares Junior ISA which we operate as Junior ISA manager in accordance with the ISA Regulations.
Provided that the Junior ISA is valid under the ISA Regulations it will be exempt from UK capital gains and income tax.
The Junior ISA is held by you as the Registered Contact on behalf of a child for whom you have parental responsibility. Once the child becomes 18 years old the Junior ISA is converted into a normal stocks and shares ISA in their name.
Opening a Junior ISA
In addition to the requirements that apply to our Products generally, in order to open a Junior ISA with us on behalf of a child:
Unless you tell us otherwise, we will renew the Junior ISA at the beginning of each subsequent tax year.
We will open the Junior ISA once we have received:
Subscriptions to the Junior ISA
You can subscribe to the Junior ISA in cash as set out in section 5.
To the extent permitted by the Applicable Requirements, we may agree to accept cash subscriptions to the Junior ISA from a person other than the Registered Contact.
In accordance with the ISA Regulations, all payments made into a Junior ISA shall be deemed to be a gift and will be non-refundable.
Subscriptions to the Junior ISA can only be made up to the applicable subscription limit for that tax year. The current subscription limit is set out here.
Transfers to the Junior ISA
Where permitted by the ISA Regulations, cash can be transferred to the Junior ISA from another Junior ISA or Child Trust Fund held by the child.
What you must do in respect of the Junior ISA
At all times while you are the Registered Contact in respect of a Junior ISA with us, you must:
If you do not meet these requirements or if the child does not meet the eligibility requirements at section 24.4 above then we can take the steps set out at section 16, require that you be replaced as the Registered Contact, and/or the Junior ISA may be invalid under the ISA Regulations.
The Junior ISA cannot be charged or assigned except to replace the Registered Contact or to make a transfer to a new Junior ISA. Any attempt to do so will be void.
If the child becomes bankrupt, the Junior ISA will not pass to any person acting on behalf of the child’s creditors.
As Registered Contact you will be our point of contact for all statements and other correspondence regarding the Junior ISA and all instructions and information must come from you.
There can only be one Registered Contact for the Junior ISA at any one time. We will not accept instructions from a person with a Power of Attorney in respect of a Registered Contact or from the child (unless they are also the Registered Contact).
We will replace the Registered Contact only
How we will manage the Junior ISA
We may delegate any of our functions or responsibilities as Junior ISA manager to any other person provided that we are satisfied that person is competent to carry out those functions or responsibilities.
You authorise us to make disclosures to HMRC as reasonably required for us to comply with the ISA Regulations.
If we have reason to believe that the Junior ISA is invalid, we will notify you and we may take any reasonable steps which are required or permitted by the ISA Regulations in respect of that invalidity. If the Junior ISA becomes invalid, it may no longer (or may not have been) exempt from UK income and capital gains tax.
In some circumstances an invalid ISA will be eligible for repair under the ISA Regulations. If this is the case, then you and we must take reasonable steps to repair the ISA.
If any investments in the Junior ISA are evidenced by share certificates or other documents evidencing title, these will be held by us or as we may direct.
We do not accept additional permitted subscriptions on the death of the child.
Transfers to another ISA manager
Where permitted by the ISA Regulations, you can ask us to transfer all of the value in the Junior ISA to another ISA manager. We will usually only make such a transfer in cash, by selling any investments and then making the transfer. If we agree to make a transfer in investments, we may charge a fee for this as set out in the Schedule of Fees and Charges. We are not able to effect a withdrawal or transfer of fractional entitlements to investments. We agree only to sell those fractional entitlements and effect a cash withdrawal or transfer to that extent. We do not allow partial transfers from a Junior ISA.
We will process any transfer from the Junior ISA within 30 days of receiving your request (which will be given to us by the new ISA manager). You can ask us to make the transfer at a particular time in which case we will endeavour to meet this request. After we have completed the transfer we will close the Junior ISA.
Withdrawals from your Junior ISA
In accordance with the ISA Regulations, no withdrawals may be made from the Junior ISA before the child's 18th birthday unless:
We will process any withdrawal from your Junior ISA within 30 days of receiving your request and the necessary evidence. You can ask us to make the withdrawal at a particular time in which case we will endeavour to meet this request. After we have completed the withdrawal we will close the Junior ISA.
When the child reaches the age of 18
When the child reaches the age of 18, we will:
Making a complaint
If you're unhappy with our service for any reason, please contact us through Nutmail or by emailing firstname.lastname@example.org.
We’ll aim to provide you with a decision as soon as we can. Further details about our complaints process is available below.
How to make a complaint
To make a complaint, please get in touch with us by Nutmail or by emailing email@example.com. Alternatively, you can write to us at:
[Client Complaints Manager, Unit 201, 1-45 Durham Street, Vox Studios, London, SE11 5JH].
We’ll contact you about your complaint and work together to try and find a resolution. We will acknowledge your complaint within five working days.
What happens next?
We will investigate your complaint and aim to resolve your complaint as quickly as possible, but for most complaints it could take up to eight weeks. We'll send you a Final Response which will explain our investigation and resulting resolution.
Keeping you up-to-date
We’ll keep you informed of our progress while we investigate your complaint.
Your rights with the Financial Ombudsman Service
If you’re unhappy with how we’ve dealt with your complaint, you can ask the Financial Ombudsman Service to look into it for you. They’ll do so free of charge – but you must contact them within 6 months of our response.
They can be contacted using the following details:
Financial Ombudsman Service, Exchange Tower, Harbour Exchange, London, E14 9SR
Tel: 0800 023 4567 or 0300 123 9123
If you would like further information about the Financial Ombudsman Service, you can find it on their website at www.financial-ombudsman.org.uk.
If you don't think we've met our legal requirements, you can also submit information about this to our regulator, the Financial Conduct Authority:
Financial Conduct Authority
12 Endeavour Square, London, E20 1JN
0800 111 6768 or 0300 500 8082
Information about compensation arrangements
We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to investors if an investment firm is unable to meet its financial obligations. In respect of investment business, an eligible claimant is entitled to claim up to the current FSCS limit for investments. For more information about the scheme (including the current limits, amounts covered and eligibility to claim) please contact us, visit the FSCS website www.fscs.org.uk or contact the FSCS on 020 7741 4100 or 0800 678 1100. Please note only compensation related queries should be directed to the FSCS.
Our authorisation details
Nutmeg Saving and Investment Limited is authorised and regulated by the Financial Conduct Authority. Our Financial Services Register number is 552016. You can check these details by visiting the Financial Conduct Authority’s website at www.fca.org.uk or contacting them on 0800 111 6768.
Conflicts of interest
There may be limited circumstances in which a conflict exists between your interests and those of us or our other clients. To mitigate and control these conflicts we have drawn up a conflict of interest policy. A summary of this document is available here [https://investments.johnlewisfinance.com/legal/regulatory], although you may request a copy of the full policy at any time by contacting us.
We have appointed John Lewis plc (“John Lewis”) as our Appointed Representative. Under an appointed representative agreement between Nutmeg and John Lewis, a revenue sharing arrangement is in place. Under this arrangement, we make payments to John Lewis for introducing you to us. Payments are made on an ongoing basis and are calculated as a percentage of the revenue generated by our Annual Management Fee (which is set out in the Schedule of fees and charges). We will provide you with details of such payments annually. We (Nutmeg, trading as John Lewis Investments) remain responsible for the actions of John Lewis when it promotes our Products and services to you and introduces you to us.
Annual management fee
We will charge you an annual management fee for the discretionary management of your Portfolio. It is calculated and accrued daily and deducted each month.
Our annual management fee is calculated as a percentage of the value of investments that we hold for you in each relevant type of Investment Style, as follows:
a. Socially Responsible Investing
|Total value of assets||Annual Management Fee|
The first £100,000
0.75% per annum incl. VAT
Any amount above £100,000
0.35% per annum incl. VAT
b. Interest on client money
Client money that we hold for you earns interest at the current Bank of England (BOE) bank rate minus 0.75%. If the BOE bank rate is 0.75% or lower, you will not receive any interest.
Transfers of investments
If we agree to transfer investments to you or to a new provider (rather than selling them and paying the cash proceeds) we will make a charge of £20 for each “line of stock”. A “line of stock” means the investments(s) that you hold in each company or unit trust in which your Portfolio is invested.
In Specie transfer
£20 per line of stock
Additional costs and charges
The provider of each ETF in which your Product is invested will take a charge for managing the ETF. These charges may vary from time to time. You can see the current costs [here].
Additional costs may apply to your investments, for example where we carry out transactions on your behalf. More detail can be found at https://investments.johnlewisfinance.com/our-fee.
Applicable Requirements means (a) any obligation that applies under any law or regulation (including any tax legislation or rules made by an applicable regulatory body), or as the result of a decision by a court, ombudsman or similar body; (b) any obligation under any industry guidance or codes of practice which we follow; or (c) any other legal or regulatory requirement, which, in each case, is applicable to this agreement and/or our provision of a service or Product to you.
Deal means each transaction to buy or sell an investment which we carry out for your Portfolio.
ETF means an exchange traded fund or exchange traded certificate which is listed on a recognised stock exchange.
FCA means Financial Conduct Authority.
FCA Rules means the Financial Conduct Authority’s Handbook of Rules and Guidance.
General Investment Account means any Product that we hold for you which is not an ISA, a Junior ISA, Lifetime ISA or Personal Pension Account.
HMRC means Her Majesty's Revenue & Customs.
Investment Parameters means the investment parameters that we agree with you in order to manage your Portfolio, including the Investment Styles and your attitude to risk.
ISA has the meaning given in the ISA Regulations.
ISA Regulations means the Individual Savings Account Regulations 1998 as amended from time to time.
John Lewis means John Lewis plc.
Junior ISA has the meaning given in the ISA Regulations.
Lifetime ISA has the meaning given in the ISA Regulations.
MTF means a “multilateral trading facility”, which is in summary a non-exchange based trading system which accommodates deals between multiple parties.
Nutmail means our secure email system.
Portfolio means any and all Products that Nutmeg provides to you.
Product means any and each General Investment Account, ISA, Junior ISA, Lifetime ISA or Personal Pension Account that we hold for you in accordance with this agreement.
Registered Contact means the registered contact in relation to a Junior ISA, which is, in summary, either a person with parental responsibility for the eligible child or the eligible child themselves (if they are aged between 16 and 18 years) and who has been designated as the registered contact.
Security Credential means a password, PIN, passcode, memorable information, biometric or other information which we've given you or you've set up to use in connection with your Portfolio.
Simplified Advice Service means our simplified and restricted financial advice service to help you decide which Investment Parameters to allocate to your Portfolio as described at section 3.
UK Bank Account means the personal UK bank account in your name that you nominate in writing from time to time for the purpose of making and receiving payments from your Portfolio.
US Person means a customer considered by the US Inland Revenue Service as a US person at the relevant time. If you are unsure whether you are a US person, please seek independent tax advice.