LEGAL

Terms and conditions

Summary

To help you understand the main points of our terms and conditions and provide some guidance on how to navigate them we’ve put together this short summary. Please remember that this is only a summary and for more comprehensive information please refer to the full terms and conditions. The comments in this summary relate to the General Terms, except where otherwise specified.

Before you decide to invest you should be sure to retain adequate emergency cash. We view around three months' salary as a good starting point. We will help you decide which John Lewis Investments portfolio best suits your goals. This qualifies as simplified advice, which we have permission from our regulator to provide. If you are unsure if a specific product is the right choice for you, we also offer a one-on-one Personal Financial Advice Service. See our Definitions or the FCA website.

We will provide you with a discretionary investment management service, which means that we make all investment decisions on your behalf. Once you have chosen a risk level for your portfolio and funded your account, we will invest in the assets we believe will help you reach your investment goal. When we invest for you, we do so in line with our Order Execution Policy which means we will try and get the best outcomes for you, such as prices and speed of execution. You can read more in our Order Execution Policy here.

At the moment we invest exclusively in Exchange-Traded Funds (ETFs) though we may use other investment types in the future. Customer Investment Risks explains the risks of the investments we trade or may trade.

Our normal method of communication with customers is by secure email. We call it Nutmail. You must sign in to your account to read any Nutmail messages we send you. You can also contact us by web chat and telephone. Our support email address is johnlewisinvestments@nutmeg.com.

The minimum investment for ISA and general investment account is £500. For Junior ISAs, the minimum is £100.

Fees and charges are explained in Fees and Charges Schedule. We charge a straightforward annual portfolio management fee based on how much you've paid into your portfolio. The fee ranges from 0.25% to 0.75% including VAT where applicable.

In addition to our annual management fee, there is an underlying fund cost, relating to ETFs, as charged by those providers we use to construct your portfolio. These charges may vary from time to time. See the latest costs.

We are authorised and regulated by the Financial Conduct Authority and we will promptly respond to any complaints that you may have. All contact details are on the website as well as in these terms.

All your assets and money are held with us and we have appointed State Street Bank and Trust as our sub-custodian (our “Sub-Custodian”), and your money is held with Barclays Bank plc (our “Client Money Bank”). You can read more in Custody and Nominee Companies and Client Money. Nutmeg is a member of the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the FSCS if we cannot meet our obligations to you. However, this does not apply simply because an investment does not perform as expected. More information is available from the FSCS: www.fscs.org.uk.

We store personal financial information to provide our services to you and we make every effort to protect the privacy of your information. We do disclose your information to third parties where it is relevant to the provision of our services.

You may terminate your agreement with 30 days’ notice. The amount of money you receive will take into account any gains or losses from market movements during the time it was invested.

If you wish to open an ISA with us, you will also need to sign up to the additional ISA terms so that you comply with the government (HMRC) regulations regarding ISAs, including the limit on total contributions in one year.

If you wish to open a Junior ISA with us you will also need to sign up to the additional Junior ISA terms so that you comply with the government (HMRC) regulations regarding Junior ISAs, including the limit on total contributions in one year.

1. Important Information

1.1 In these Terms and Conditions, references to:

  • us and we are to Nutmeg Saving and Investment Limited ("Nutmeg"), trading as John Lewis Investments. Our registered address is 5 New Street Square, London EC4A 3TW (Company No 07503666). We are authorised and regulated by the Financial Conduct Authority (FCA), whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS, www.fca.org.uk. Our firm registration number is 552016.
  • customerclientyou and your, are to the person who opens an Account with us.

1.2 Together, (a) these Terms and Conditions; (b) the information you provide in your profile and www.investments.johnlewisfinance.com portfolio (together, the Account); (c) our Website Terms and Conditions; and (e) our Privacy Policy form the entire agreement between you and us (the Agreement), in respect of the services. (The services are described in section 3 (Services). The Agreement supersedes and extinguishes all previous agreements and arrangements between you and us, relating to the Services. The Services are supplied by us, and not John Lewis.

1.3 These Terms and Conditions contain important information about the Services. You should read them carefully before accepting them. If you do not understand anything, please email johnlewisinvestments@nutmeg.com and ask for further information.

2. Commencement

2.1 The Agreement will become legally binding, and we will start providing the relevant Services to you, when we receive (a) confirmation that your Account is complete; and (b) satisfactory answers to our anti-money laundering enquiries (see section 8.3 below).

3. Services and General Terms

3.1 The Services are only available to (a) UK residents; and (b) non-UK residents if they hold a UK passport, and we are able to confirm their status and identity.

We will provide you with some or all of these Services, under the terms of the Agreement:

  • discretionary investment management of the investments we hold on your behalf (your "Portfolio");
  • safe custody of your investments;
  • Cash Holding investment option;
  • ISA management services

3.2 You agree you can have only one active Account at any time (whether with us as John Lewis Investments or with us as Nutmeg), and we reserve the right to suspend and terminate any suspected or confirmed duplicate accounts immediately. 

4. Customer Categorisation

4.1 If we provide a Service to you, we will assume you are a retail client, and you will benefit from the protections available to retail clients under the rules in the FCA’s Handbook of Rules ("FCA Rules"). If you would like further information about this, you can ask us using Nutmail or by emailing our Compliance Officer at johnlewisinvestments@nutmeg.com.

4.2 If you hold an Account jointly, we will treat each of you as our customer.

If you are the trustees of a trust, we will treat each of you as our customer, instead of the beneficiaries of the trust. If you are the agent of someone else, we will treat each of you and your principal as our customer.

In each of these cases, we will be entitled to take our instructions from any one customer, as if they were given by all of our customers; if we make a payment to any one customer, it will be treated as if we made it to all of our customers; and if a customer has an obligation to us, we will be entitled to require each and every customer to meet or satisfy that obligation on behalf of every other customer.

5. Simplified Investment Advice

5.1 We provide regulated investment advice, which means that we will make a personal recommendation which is suitable for you, subject to the limitations and restrictions below. Our investment advice is not remunerated separately.

5.2 We give Simplified Advice using a streamlined process to meet straightforward investment advice needs. You accept that Simplified Advice is only appropriate if (a) you do not need to reduce your debts; (b) you already have a reasonable amount put aside for emergencies; (c) you already have insurance to protect your family, if something happens to you; (d) you can meet your immediate financial needs; and (e) you still have some disposable income or capital to invest. Our advice is restricted to the specific need expressed for your investment pot. When ensuring the advice is suitable, we will not consider your wider financial needs or circumstances, or the financial products you may already have.

5.3 We will only give Restricted Advice, which means that we will only recommend John Lewis Investments products and Services. We do not consider other products and services that might be suitable or more suitable for your needs.

5.4 We can help you transfer other investments into your Portfolio, but we will only do this if you ask. We do not advise on the suitability of investments we do not manage.

6. Discretionary Management Service

6.1 Your Account includes the information you have given us about (a) you; (b) your financial circumstances; (c) your knowledge and experience of investments and investing; (d) your attitude to risk; and (e) your investment objectives (your "Information"). We will use your Information to manage your Portfolio. You may change your Information at any time by updating your Account, although we reserve the right to amend the Agreement if you do. You accept that we will treat the Information as accurate and complete, unless and until you change it by updating your Account.

6.2 We will manage your Portfolio on a discretionary basis, using the Information to help us. We will manage each pot in your Portfolio with reasonable care and skill. 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 in any one investment or investment type, and we may do so in any currency, and on any market.

6.3 If we decide to buy or sell an asset on your behalf, we will use the Information to decide if the proposed transaction is suitable for you.

6.4 We will provide you with a suitability report which explains our Portfolio management strategy, and we will amend that report if the Information changes.

6.5 We may make common investment decisions, which apply to a number of customer portfolios including yours.

6.6 You accept that we cannot guarantee the performance of any particular investment, that investments carry risks, and the risks include those described in section 54.

6.7 If you send us money, without telling us which Pot you want to pay it into, we reserve the right to allocate it to your/one of your pot/s.

7. Initial and Minimum Investment

7.1 The minimum investment amount for each product is:

ISA & General Investment Account
• £500

Junior ISA
• £100

If you make a withdrawal from an ISA or your GIA, and the value of the ISA or GIA falls below £500, we may convert the remaining investments into cash. You may withdraw this cash at any time. If you top-up the relevant ISA or GIA and the balance reaches £500, the cash will be reinvested. In any event, we reserve the right not to perform any trades for Pots that have a value of £75 or less.

8. Your Information

8.1 To be a John Lewis Investments customer you must be at least 18. If you are a Registered Contact for a JISA you must also meet the conditions set out in section 45.

8.2 To open an Account, you must be (one of) the named holder(s) of a UK bank account ("UK Bank Account").

8.3 We are required to verify your identity when you join John Lewis Investments and periodically thereafter. When we do this, we may use your personal data (as defined in UK GDPR) to carry out electronic searches on private and public databases. We will keep records of the information we obtain from performing these searches. We may use credit reference agencies, and they will perform a soft credit search which will leave a record of the fact that an enquiry has been made, but will not be visible by lenders, nor will it affect your credit rating. You accept that we may do each of these things, and that our use of credit reference agencies will generate a record of this kind. In some cases, we may need to ask for additional information or documents from you. If this happens, we will send you a secure Nutmail and you agree to provide us with the information and documents we ask for within a reasonable period. You accept that if you do not do this, we may freeze your Account or take other action against you or with respect to your Account.

8.4 You acknowledge and agree that we will rely on any communication we believe to have been made by you, or to have been duly authorised by you. You acknowledge we employ appropriate security measures to verify your identity and agree to take all reasonable measures to keep your account secure and not to disclose account details to a person not duly authorised by you.

Non-UK Residents

8.5 As a UK-based discretionary investment manager, our primary focus is UK residents. If you reside or move outside of the UK, our ability to provide you with the John Lewis Investments Service will depend on the evaluation of a combination of factors, such as the particular Service requested, the availability of investments, and your nationality and residency. This will help us determine whether we have the necessary guarantees and permissions in place to serve you in accordance with our legal and regulatory obligations.

If you opened an account with John Lewis Investments and subsequently moved outside of the UK/EEA, you are required to notify us. We will then review your account on the basis of the information provided and determine whether you can keep your account, as outlined below.

Due to the comprehensive reporting requirements imposed by the Internal Revenue Service ("IRS") through the Foreign Account Tax Compliance Act ("FATCA"), We do not accept US persons as customers. For purposes of FATCA classification, customers considered by the IRS as US persons include: all US citizens; permanent legal residents or “green card” holders; and persons born in the US. This also includes dual nationals where one of the nationalities is the United States. If you hold an Account and believe you will fall within this category, please contact Customer Support (johnlewisinvestments@nutmeg.com) immediately. If you are unsure whether you are a US person, please seek independent financial advice.

  • Prospective Customers
    For the purpose of this section 8, prospective customers are identified as members of the public that wish to use the services provided by John Lewis Investments.

    EEA Residents
    Additional documentary evidence may be requested during the account opening process to ensure that all our Anti Money Laundering checks can be performed correctly.

    Non-EEA Residents
    John Lewis Investments cannot currently accept new customers who reside outside of the EEA area.
  • Existing Customers
    For the purpose of this section  8, existing customers are identified as John Lewis Investments customers that intend to or have already moved outside of the UK/EEA.

    EEA Residents
    Additional documentary evidence may be requested as part of the account review process to ensure compliance with the relevant regulations.

    Non-EEA Residents
    John Lewis Investments may not be able to continue to offer its Services to an existing customer who moves outside of the EEA. Consequently, in such circumstances you agree that we may take steps to suspend or close your account.

If you have any queries about the foregoing section, please do not hesitate to contact our Customer Support team at johnlewisinvestments@nutmeg.com.

9. Order Execution

You agree that the Nutmeg Order Execution Policy found in the Regulatory Section of our website forms part of this Agreement, as amended from time to time.

10. Investing

10.1 The base currency of your Portfolio is Sterling.

10.2 We invest primarily in Exchange Traded Funds, although we may also invest in other Exchange Traded Products such as Exchange Traded Commodities.

10.3 We may invest in fixed interest securities issued by governments, governmental bodies, quasi-governmental bodies, local authorities, and corporate bodies in the UK and overseas.

10.4 We may invest in authorised and unauthorised collective investment schemes in the UK and overseas.

10.5 We may invest in equities, including investment trusts, listed on recognised stock exchanges in the UK (e.g., the London Stock Exchange) and overseas (e.g. the New York Stock Exchange).

11. Custody and Nominee Companies

11.1 Nutmeg is your custodian and passes all client assets to a Sub-Custodian, chosen by us in accordance with the FCA Rules. Your investments will be held by the Sub-Custodian (a) in compliance with the FCA Rules; (b) securely in a pooled client account; and (c) without being mixed with our assets or the assets of the Sub-Custodian.

11.2 Nutmeg is not responsible for the acts, omissions or defaults of the Sub-Custodian, only for taking care in its choice and monitoring of the Sub-Custodian.

11.3 Nutmeg will keep a record of your entitlement to investments in a pooled client account. In these situations:

  • your individual entitlements may not be identifiable by separate certificates, physical documents or equivalent electronic entries on a register;
  • when we receive investments or money on behalf of more than one client in connection with pooled holdings (for instance in a bonus or rights issue or takeover) we will allocate them between clients on a pro rata basis, in accordance with FCA Rules;
  • if a share issue or other corporate event favours small investors your actual allocation may be less than it would be if your investments were registered in your own name; and
  • sometimes amounts or investments may arise which would not have arisen if the investments had been registered in your own name. You may not be entitled to any such additional amounts or investments.

11.4 Our Sub-Custodian will inform us 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.

Our Sub-Custodian will be responsible for claiming and receiving dividends and other entitlements automatically arising in respect of your investments. We will reflect these entitlements in your account and hold them in accordance with the FCA Rules in respect of Client Money.

11.5 Sometimes our Sub-Custodian may receive dividends, interest and other rights or payments after local withholding taxes or other deductions. You accept that our Sub-Custodian may, when required to comply with legal or regulatory requirements, withhold or deduct tax or other amounts from such payments. Costs incurred by our Sub-Custodian when complying with these obligations may be deducted from your Account. If you are eligible to reclaim any such withholdings or deductions it will be your sole responsibility to do so.

11.6 Nutmeg and our Sub-Custodian will not lend your investments to anyone else or use them to raise finance.

11.7 In some cases, transactions will be subject to Netting. You agree, in respect of any transaction which is subject to Netting, to discharging the settlement obligations on a net basis in accordance with the rules of the relevant central counterparty ("CCP"), central securities depository ("CSD"). You acknowledge that if net settlement takes place then Nutmeg will only be obliged to account to you for any investments or cash in connection with the transaction on a net basis.

11.8 Transactions executed on your behalf may settle in the books of a CCP, CSD or other body or Sub-Custodian combined with transactions for the account of other clients of ours. If this happens then we will allocate between our clients the cash or investments received by it or on its behalf as a result of the settlements in accordance with the client trades, we have notified to it. If we receive cash or investments for trades that were intended to settle at the same time (but which, for whatever reason, do not do so), then we will allocate that cash or investments received by it on the following basis:

  • in accordance with any priority for settlements determined by us prior to the transactions taking place;
  • if transactions have the same priority, then the allocation will be in order of time, by reference to the intended settlement date of the transaction which was specified to us, so that the earliest in time will settle first in each case;
  • where transactions have the same priority and intended settlement date, then the allocation will be by value so that the larger or largest trade by value (not by number of units or size) will be settled first in each case.
  • where these allocations are necessary, they will also be subject to the operation of the relevant CCP, CSD, Sub- Custodian or other entity. Such operations may include a Netting rule or practice, automatic splitting of unsettled transactions or other automatic aggregation, splitting or allocation.

11.9 In order to settle transactions on your behalf, we will need to deal with the other party to the transaction (the “counterparty”) and sometimes transactions will be settled through a CCP or CSD or other depositary transfer agent or similar body. When we deal with these parties, we do so as your agent, in good faith and on the basis, that:

  • Nutmeg is not responsible for any default or failure of the CCP, CSD or other counterparty or of any depositary or agent of those entities; and
  • the delivery of any securities or payment to you as a result of the transaction is entirely your risk and not that of Nutmeg.

If in future we hold overseas investments, certain overseas markets may require us to register your investments in the name of another Sub-Custodian. We will inform you of any additional terms in advance.

11.10 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.

11.11 We are not obliged to tell you before terminating our relationship with a Sub-Custodian and appointing a replacement; but we will tell you if we do.

12. Client Money

12.1 If we hold uninvested money for you, we will take reasonable steps to identify a bank with a competitive interest rate and deposit that money with that bank (the "Bank"), together with other clients’ money. The rate of interest payable on that account will be determined by the Bank. However, the amount that is credited to your Account will be determined by the Bank and us, and we will tell you what it is from time to time. Any interest will be calculated on a daily basis and paid to your Account every three months. We may decide not to pay this interest to your Account until it reaches a minimum threshold.

12.2 Your money is held in a designated client bank account by the Bank, in compliance with the FCA Rules. This means, amongst other things, that our Client Money Bank will hold your money in a designated client bank account which is an account kept separate from our own funds.

12.3 When considering which Client Money Bank to use, we will exercise due skill, care and diligence and will periodically review the adequacy and appropriateness of any bank or credit institution where your money is deposited and of the arrangements for holding your money. It is important to note that we are not responsible for any acts, omissions or default of a credit institution or bank chosen by it but only for taking care in its choice and monitoring.

12.4 Your money may be pooled with money belonging to our other clients. If it is, you will not have a claim for a specific sum in a specific account. Your claim would be against the pool and, if there is a shortfall, you would share pro rata in that loss.

12.5 The designated client bank account may be outside the UK if the Bank has confirmed that (a) it holds the money in that account as trustee; and (b) it is not entitled to combine or set off that money in any way. Even so, if the Bank cannot or does not meet its obligations, the money in that account may not be treated in the way that it would have been treated, if the account had been held in the UK.

12.6 We may pass your money to a settlement agent outside the UK. If the agent cannot or does not meet its obligations, your money may not be treated in the way that it would have been treated if the settlement agent was in the UK.

12.7 If any money held by the Bank is unclaimed after 6 years, we may stop treating it as your money and include it in our own assets. We will only do this after we have taken reasonable steps to trace you and return the money to you. If you later show a valid claim to this money, we may pay you what you are owed.

12.8 If we undertake a transaction, and that involves transferring your money or investments to an exchange, clearing house, broker, settlement agent or other relevant party as Margin, Collateral or for another reason, your money or investments may be at risk. You accept that this is the case.

12.9 We are not obliged to tell you before terminating our relationship with the Bank and appointing a replacement; but we will tell you if we do.

13. Income

Income earned on the investments held in your Portfolio, which is payable to you, will be remitted to your Portfolio and may be reinvested.

14. Compensation

Nutmeg is a member of the Financial Services Compensation Scheme ("FSCS"). You may be entitled to compensation from the FSCS if we cannot meet our obligations to you. However, this does not apply simply because an investment does not perform as expected. More information is available from the FSCS: www.fscs.org.uk.

15. Insolvency

15.1 If we are declared insolvent, your investments will be sold. We will make reasonable efforts to obtain the best market price for you.

15.2 Cash held outside a tax wrapper will be returned to your UK Bank Account. Our nominated custodian will contact you within 90 days of the declaration of insolvency about the cash held in a tax wrapper.

15.3 If Nutmeg and our nominated custodian are declared insolvent, you will need to register a claim with the FSCS, if applicable.

16. Deposits

16.1 We accept payments in GBP from a UK personal bank account and debit card in your name, Direct Debit and bank transfer. When determining whether to accept a payment from you, in accordance with our legal and regulatory obligations regarding financial crime, we reserve the right to reject any payments where it is found you are not the beneficial owner of the funds.

16.2 You agree and acknowledge we may, at our sole discretion, impose a minimum amount for debit card payments.

16.3 We do not accept credit or prepaid cards as payment methods.

16.4 When you make a payment by debit card or direct debit, your payment will be processed by a third party that is subject to the Payment Services or Electronic Money Regulations. These payments typically take 3 Business Days to reach us (with a maximum of 7 Business Days), during which time the money is held by the relevant service provider in an account protected by the relevant regulations.

16.5 We reserve the right to reject or charge a fee for processing payments received from you in a foreign currency.

17. Fair Usage Policy

17.1 We reserve the right charge you an additional fee to cover the costs we may incur to process what we deem to be an unreasonable use of your Account, including but not limited to, initiating an unreasonable amount of payments or transfer requests in a limited period of time. We will provide you with 30 days’ written notice before applying such a fee to your Account.

18. Availability

18.1 We cannot guarantee that access to, or the ability to make changes to your Account via the John Lewis Investments website, by telephone or by post will be available at all times or without delay.

18.2 You acknowledge that the John Lewis Investments Service may be interrupted and the services available may be variable at times because of circumstances beyond our reasonable control.

18.3 You acknowledge we may, at its discretion, temporarily disable access to or the operation of the John Lewis Investments Service where it is deemed necessary.

19. Cash Holding

19.1 When choosing to invest in a stocks and shares ISA or in a general investment account, John Lewis Investments offers the possibility to open and maintain an investment pot comprised entirely of cash holdings (pound sterling). In this pot, your money will earn interest at the current Bank of England (BOE) bank rate minus 0.35%. If the BOE bank rate is below 0.35% you will not receive any interest. For more details on the current interest rate, please see the Schedule of Fees.

You acknowledge that this investment pot is designed to enable investing in other John Lewis Investments Services and is not a “cash deposit account” or a “cash ISA”.

19.2 You acknowledge that the varying percentage of cash held in all John Lewis Investments portfolios does not form part of your Cash Holding and does not earn interest.

20 Source of Funds

20.1 In order to comply with the Money Laundering Regulations, we may occasionally need to ask for proof that a payment received by John Lewis Investments has originated from your UK Bank Account. We may also have to ask for evidence that your wealth is from a legitimate source and you are the beneficial owner of the funds. You agree to comply with any reasonable request we make for these purposes.

21. Withdrawals

21.1 We will only pay money to the UK Bank Account. If you request a withdrawal within 60 calendar days of a debit card payment, we reserve the right to return the funds to source.

21.2 If you cancel a direct debit or debit card payment after we have claimed or received the funds, we will return the money and debit your Account. If we need to sell some of your assets to settle amounts outstanding on your Account, we will do so, and you may incur a profit or loss. If your Account becomes overdrawn, we will ask you to settle that overdraft, and you agree to do so within a reasonable period.

21.3 We typically only transfer cash to or from you. In exceptional circumstances where we agree to transfer an account 'in- specie', we will levy a charge per investment (line of stock). The charge is included in the Schedule of Fees. See also section 40, which takes priority as regards ISA withdrawals.

21.4 We reserve the right to only make external payments to and to accept payments from the bank account stated in your Account.

22. Data Security

22.1 In order to provide Services to you we need to collect, use, share and store personal financial information about you, including your personal information. We make every effort to protect the privacy of our customers' personal information. Other than as set out below and within our Privacy Policy, your personal information will not be disclosed, transferred or sold to any third party for any purpose.

22.2 You authorise us to use any of your personal information which is relevant to our provision of Services to you for all reasonable purposes in relation to your Portfolio. We may retain and continue to process your personal information after the termination of the Agreement or any other agreement between you and us. Your personal information may be transferred or disclosed to third parties where necessary. This enables us to provide Services to you and to discharge our obligations to third parties, including relevant stock exchanges, government agencies and regulators. Your personal information may be transferred outside of the European Economic area, using the appropriate safeguards.

22.3 Only with your consent, your personal information may be used by us in order to contact you via email to provide you with information and marketing materials in relation to our other products and Services. If you do not wish your personal information to be processed in this way, please notify us by Nutmail or by contacting johnlewisinvestments@nutmeg.com.

22.4 You can request copies of your personal information held by us or any service provider we appoint to provide you with the Services under the Agreement by notifying us by Nutmail or by contacting us at johnlewisinvestments@nutmeg.com. Whilst the information will be provided free of charge, we reserve the right to charge a fee if the request is complex or manifestly excessive. You should notify us if any of the information held is incorrect.

22.5 If you have been introduced to us by one of our partner organisations, you authorise us to share your personal information with them.

22.6 Occasionally we may receive requests from third parties, such as financial advisers, for information that we hold on file for you. These requests are often coupled with a lengthy questionnaire requesting details of your holdings with us. In this instance we will verify the documentation sent to us and supply the relevant information. We will inform you via Nutmail that we have released your information and if there is any doubt about the validity of the request, we will always seek your confirmation by Nutmail before passing over any information.

23 Communications

23.1 We may communicate with you at any time including, when appropriate, by telephone in order to deliver the service under the terms of our contract.

23.2 You can give us instructions and notifications about your Portfolio using Nutmail or our website. We are not obliged to act on an instruction. If we do act on an instruction, we will do so as soon as reasonably practicable after we have received it.

23.3 We may act on any instruction or notification we believe in good faith is from you, without carrying out any further checks or investigations. We will not be liable for following an instruction or notification which is not genuine; or for investigating, not investigating, or not following any instruction or notification that we believe may not be genuine. We will not be liable for any error of transmission or misunderstanding, or for the fraud of any other party (except in the case of our negligence, wilful default or fraud as per section 29 below). We are not obliged to acknowledge receipt of your instructions.

23.4 We will send all notices, information and other correspondence to you by Nutmail or to the email address set out in the Client Agreement Form or designated by you in your Account. If we send you a letter, it will be addressed to you at the postal address set out in the Client Agreement Form, or in your Account, and will be deemed to be delivered on the second business day after posting.

23.5 We record and monitor the telephone conversations and electronic communications that we have with you for training and monitoring purposes. We will store these records for at least seven years, during which they will be available to you on request.

23.6 We cannot guarantee that electronic communications will be successfully delivered to you, or that they will be secure and virus free. We will not be liable for any loss, damage, expense, harm or inconvenience caused as a result of an email being lost, delayed, intercepted, corrupted or otherwise altered or for failing to be delivered for any reason beyond our reasonable control.

23.7 All communications in relation to the Services will be in English.

24. Statements and Reports

24.1 If we provide discretionary management services to you, we will send an electronic statement and valuation report every quarter.

24.2 The valuation report will outline the status of your investments, how they have changed within the valuation period, and will be structured in two sections: the former providing an overview of your Nutmeg portfolio inclusive of all pots, and the latter detailing the breakdown of all your individual pots. The valuation report will include the following information relation to your investments:

  • Your overall portfolio
    • Key figures
    • Pots summary
    • Your investments
    • Contributions and withdrawals
    • Current asset allocation
    • ISA Status
  • Your pots
    • Key figures
    • Your pots
    • Current asset allocation
  • Appendices
    • Cash statement summary
    • Stock transaction activity

24.3 If your employer requires confirmation that we have provided discretionary management services to you, we will provide this electronically, free of charge. If an original signed copy letter is required, we can write to you. Requests to issue certification letters should be sent to us by Nutmail.

25. Shareholders' Rights

25.1 If you ask us to do this in writing, we will arrange for you to receive the Key Investor Information Document ("KIID") issued by a relevant manufacturer of ETFs in which your Account is invested.

25.2 If you ask us to do this in writing, we will arrange for you to receive the reports, accounts and other information issued by a relevant company; and information about a relevant shareholders’ or unitholders’ meetings, so that you can arrange to attend and vote (if applicable), if you wish. We will also tell you what you need to do, if you want to exercise any rights attached to your investments in another way.

26. Complaints

26.1 If you have a complaint about our Services, please tell us by Nutmail or by emailing our Head of Customer Support at johnlewisinvestments@nutmeg.com. We will acknowledge your complaint within 5 working days. After that, we will investigate your complaint and keep you informed of progress. Within 8 weeks of receiving your complaint we will either (a) send you a “final response”, which accepts your complaint and offers redress or remedial action; or offers redress or remedial action without accepting your complaint; or reject your complaint and explain why we have done this; or (b) explain why we have not been able to complete our investigation, and inform you that you may then refer your complaint to the Financial Ombudsman Service ("FOS").

26.2 The address of the FOS is Exchange Tower, London E14 9SR www.financial-ombudsman.org.uk. Certain customers, such as larger companies and trusts, may not have access to the FOS.

27. Our Duties to You

27.1 No provision of the Agreement will be deemed to restrict, qualify or exclude any duty owed to you under FSMA or the FCA Rules. We do not, however, owe you any further duties except as expressly set out in the Agreement.

28. Conflicts of Interest

28.1 We have a Conflict of Interest Policy, which is reviewed at least annually. We are committed to taking measures to recognise, supervise, examine and resolve conflicts of interest. We recognise that it is not possible to eliminate all sources of conflict of interest; however, safeguarding customers' welfare remains our primary objective. This policy encompasses the relationships with customers and third-party contacts.

Definition
We define a conflict of interest as being either:

  • between us and you as a customer; or
  • between yourself and another customer where your interests are materially affected.

Situations
We have identified areas where a conflict of interest may arise. They include, but are not limited to:

  • services in different capacities at the same time;
  • providing advice or management;
  • acting for more than one customer in a transaction;
  • holding information on other customers that would affect you or them if it was disclosed;
  • receiving gifts or entertainment which could conflict with our duties to you;
  • employees pursuing activities or personal relationships potentially detrimental to you; and
  • personal account holdings in companies or other investments being recommended by us.

Procedures
Protocols have been developed and introduced to manage conflicts of interest. Our employees are provided with relevant training about the protocols and standards of conduct expected thereafter. Our management remain responsible for ensuring the protocols and resources are sufficient to identify and attend to a conflict as it may arise.

We maintain an internal log of conflicts that arise, listing how each conflict was monitored and any solution which was developed and applied to resolve the problem and to prevent the customer's interests from being disadvantaged.

We have in place protocols to prevent unauthorised access or inappropriate dissemination of information.

Where our functions could create an internal conflict our duty lines are kept separate and individual management and reporting structures are established. The operations functions are maintained and conducted separately from the front office functions and in both an appropriate level of qualification, expertise and supervision is applied.

Remuneration
Staff remuneration is by means of a basic salary which is not linked to the underlying performance of the company. A remuneration committee agrees and monitors awards to achieve consistency and equitability and does not lead to conditions which may foster conflict.

28.2 We have appointed John Lewis plc (John Lewis) as our "Appointed Representative". We (Nutmeg, trading as John Lewis Investments) remain responsible for John Lewis when it promotes or introduces you to us and our products and services. Under the appointed representative agreement between Nutmeg and John Lewis, a revenue share agreement is in place. Under this agreement, we will make payments to John Lewis for making the introduction to us. Payments will be 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 57.1). We will provide to you, on a periodic basis, and in any case at least annually, details of such payments made under this arrangement. The payments we make to John Lewis do not impact the Annual Management Fee amount payable by you in connection with the account, nor impact the service you receive from Nutmeg.

We do not give or receive any other inducements. i.e. fees or commission to/from third parties, except acceptable minor non-monetary benefits.

Minor non-monetary benefits will be acceptable with respect to the service that we provide to you if:

  • I. they are intended to enhance the service that we provide to you; and
  • II. are of a scale and nature that they objectively do not impair our duty to act honestly, fairly and professionally in your best interests.

Examples of acceptable minor non-monetary benefits include, but are not limited to: Participation in seminars and other training events on the benefits and features of a specific financial instrument or an investment service: and hospitality of a reasonable minimal value, such as food and drink, during a business meeting, conference, seminar or training event etc.

Any research that we receive from third parties will be paid for directly from our own resources.

Personal account dealing rules are enforced for each member of staff.

28.3 Resolution
Where we are unable to resolve a conflict of interest, we will notify you formally by email. This disclosure will permit you to evaluate whether it is appropriate to continue using our services in respect of the pertinent conflict.

Where we have examined the conflict of interest and its cause we may inform you of our decision not to act on your behalf if we determine no other course of action is possible.

29. Liability

29.1 We accept responsibility for any loss, damages or costs suffered or incurred by you only to the extent that such loss arises directly from our gross negligence, wilful default, fraud; and/or the breach of any duties which we owe you under FSMA, rules and regulations made under FSMA or FCA Rules.

29.2 We will not be liable for any other losses, damages or costs suffered or incurred by you, including but not limited to:

  • for any failure or delay in implementing any instruction or investment direction or in performing some or all of John Lewis Investments’ obligations in respect of your Account which is caused by circumstances beyond our reasonable control;
  • if we acted in good faith in accordance with any investment or payment instruction that reasonably appears to John Lewis Investments to have been given by you;
  • as a result of any default or error by you or by your agents or your representatives; or
  • for the defaults or errors of or any losses whatsoever caused by any third parties.

29.3 We will take reasonable care in the assessment and appointment of Sub-Custodians, bankers, counterparties, agents and other third parties. We accept responsibility for any loss, damages or costs incurred by you only where these arise from our, negligence, wilful default or fraud in the assessment or appointment of such persons. We will not be responsible in any other circumstance for the actions of any such third parties.

29.4 All tax matters relating to your own tax position are your own responsibility and we have no responsibility towards you with regard to your personal tax position.

29.5 We may, from time to time, issue tax packs to customers, these are to be used for information purposes only. John Lewis Investments does not accept any liability for any action taken or not taken on the basis of the information contained in these documents.

29.6 You will be liable to us for any cost, expense, loss or any damage incurred by us (including but not limited to professional advisors' fees) arising from your breach of the Agreement, and/or your negligence, wilful default or fraud.

30. Indemnity

You indemnify and will keep John Lewis Investments indemnified against all liabilities, costs, expenses, damages and losses (including but not limited to any direct, indirect or consequential losses, loss of profit and all other reasonable costs and expenses) suffered or incurred by you arising out of or in connection with your:

  • breach of these Terms and Conditions;
  • negligence;
  • wilful default; or
  • fraud.

31. Force Majeure

31.1 We will not be held responsible for failing to fulfil our contractual obligations as a result of any situation, condition or event beyond our reasonable control ("Force Majeure Event").

31.2 A Force Majeure Event may include but is not limited to an act of Parliament, an act of God, acts of terrorism, strike or riot, pandemic, extreme movements in the price of a security, the breakdown of communication or electronic equipment or anything else that may reasonably impede our ability to act in line with the Agreement.

31.3 We will take all reasonable steps to act in your best interests when a Force Majeure Event occurs and may suspend or alter part or all of the Agreement, to the extent that we can no longer comply with the terms in question.

32. Amending the Agreement

32.1 We may amend this Agreement at any time by providing you with reasonable written notice, unless we are required to implement any changes with immediate effect to comply with our legal and regulatory obligations. You will be deemed to agree to any changes unless you notify us of your objection within 30 days of receiving notice. If you do not accept the amendment, you will be required to terminate the Agreement in accordance with section 37 below.

33. Assignment

33.1 You do not have the right to assign or transfer your rights or obligations under the Agreement to any other party other than that title to the JISA may be transferred to a new Registered Contact in accordance with the relevant regulations and on the basis provided in these terms.

33.2 We may assign our rights and obligations under the Agreement at any time. We will tell you before such an assignment takes effect.

34. Delegation and Referrals

34.1 We reserve the right to perform any of our obligations to you through the agency of an associate or any third party of our choosing. This means that we may appoint another person or entity to provide the Services to you under the Agreement and you agree that we will not need your consent to do so. We will take all reasonable steps to satisfy ourselves that any person whom we appoint to provide any Services to you or to perform any of our obligations on our behalf is suitably competent to do so. We will ensure that all such parties commit to provide you with best execution as set out in the FCA Rules where this is applicable.

34.2 We may offer to refer you to third parties that can provide additional services. We will not do this without your agreement. We may also accept referrals from third parties.

35. Governing Law

35.1 The Agreement and any dispute or claim arising out of or in connection with it will be governed by and construed in accordance with the law of England and Wales.

35.2 The parties irrevocably agree that the courts of England and Wales will have exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with the Agreement.

36. Third Parties

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.

37. Closing Accounts

37.1 You may terminate the Agreement at any time, by giving 30 days’ notice by Nutmail or through the website, subject to the settlement of all outstanding transactions. The charges within the Schedule of Fees will apply. We may pass on to you charges levied by third parties as a result of the termination of the Agreement. Transactions already in progress will be completed in the normal course of business.

37.2 We may terminate the Agreement by giving you 30 days' notice by email, subject to the settlement of all outstanding transactions.

37.3 We reserve the right to terminate your account with immediate effect in the event we suspect it is being used to facilitate fraudulent activity, and to administer the process and any funds within it in accordance with our obligations under financial crime prevention regulations.

37.4 On termination of the Agreement, we will, following payment in accordance with clause 37.1 and settlement of all outstanding transactions, re-register your assets and transfer your cash as you reasonably request. If you make no reasonable request, we will take steps to re-register your assets in your name and to transfer your cash to you at our discretion.

37.5 After you close your Account, it is possible that further monies may reach your account (for example, dividend payments). However, if the balance of your account is less than £25, six years after the closing of your Account and we have made at least one attempt to contact you to which you have not responded within 28 days, we reserve the right to pay that small balance to a registered charity of our choice.

37.6 After you close your Account, it is possible that further monies may reach your Account (for example, dividend payments). However, if the balance of your Account is less than £1, six months after the closing of your Account, we reserve the right to pay that small balance to a registered charity of your choice.

38. Death

38.1 In order to initiate the process for administering a deceased customer's account, we will require certain documentation which will be advised to you. Once we have received all the required documentation, the assets held in the account will be sold and the funds distributed in accordance with authorised instructions.

38.2 When you die, your ISA assets will lose their tax-free status. This means the income and capital gains on your ISA investments will no longer be tax exempt. What happens to a JISA on the death of the Eligible Child who is the beneficial owner of the JISA is set out in sections 47 and 48.

38.3 John Lewis Investments does not accept Additional Permitted Subscriptions ("APS"). If you die, and your surviving spouse or civil partner would like to use any APS that might be available, they will need to find an ISA manager that accepts APS. When we receive appropriate confirmation of your death (section 38.1), we will work directly with the new ISA manager by confirming the available APS allowance, and arrange the transfer of your assets, where appropriate. This is not applicable to our JISA which is only available to children under 16 who may not legally be married or enter into a civil partnership.

39. Cancellation

39.1 You have 30 days starting from the date you opened your Account or product to cancel your Account, ISA, or Junior ISA. Invoking your right to cancel a product will apply to all of the funds in your current year tax wrapper, partial cancellations will not be allowed.

39.2 If you wish to cancel, you must send us a Nutmail or email to johnlewisinvestments@nutmeg.com, expressly stating that you wish to cancel. We will accept notices of cancellation only from the account holder (Registered Contact for a JISA).

39.3 If you cancel a product and we have purchased investments for you during the cancellation period we will sell the investments in the relevant Account, wrapper or pot. We will not be responsible for any market loss you incur as a result. If you cancel at a point in time when we have not yet invested your money, (this will be visible from your John Lewis Investments dashboard where your contribution will be categorised as ‘unallocated cash’ ) then you should contact Customer Support and request to withdraw the funds.

39.4 Provided you cancel your ISA subscription within the 30-days cancellation period detailed in this section 30 we will treat you as though you have not subscribed to the ISA. The amount subscribed will be exempt from UK income and capital gains tax on any income or gains arising from subscription during this period. If you do not exercise your right to cancel your subscription within the 30-days cancellation period, then your ISA will remain open and will count towards your subscription limit for that year (except for JISAs). These terms and conditions will remain in effect until terminated as provided in these terms.

39.5 We are not obliged to reverse a subscription to an ISA, or JISA when we cancel these products.

40. Additional Terms for Customers opening a Stocks and Shares ISA ("ISA"), or Junior ISA ("JISA")

The following sections (40-50) contain additional terms and conditions that will apply if you subscribe to an ISA, or JISA . Each section should be read in conjunction with the Nutmeg ISA/JISA Application Form and/or Nutmeg ISA/JISA Transfer Form. as relevant to the type of stocks and shares individual savings account you are opening. With respect to JISAs only, “you” means the Registered Contact unless otherwise stated.

40.1 Your investments will be registered in the name of our Sub-Custodian in accordance with the ISA Regulations. You will always be the beneficial owner of your investments. For JISAs the Eligible Child (whether or not he or she is also the Registered Contact) will always be the beneficial owner of the JISA investments

40.2 You must not use the investments and/or cash in your ISA/JISA as security for a loan except to the extent permitted by the Individual Savings Account Regulations 1998 (the "Regulations").

40.3 At your request, we will transfer all or part of your ISA/JISA investments (with the associated rights and obligations) to another ISA manager, subject to HMRC's transfer rules. Additional terms and conditions that apply to JISA transfers are set out in section 50.

40.4 We will process any withdrawal or transfer request promptly and normally within the 30-day maximum period stipulated by HMRC, subject to circumstances outside our control. Should you wish the withdrawal or transfer to take place at a particular time, we will endeavour to meet this request. However, in the case of transfers, we are reliant on the receiving manager and cannot guarantee to do so.

40.5 You authorise us to disclose to HMRC all such information as required by law. We will notify you by email if, by reason of any failure to satisfy the provisions of the Regulations, your ISA becomes void.

40.6 We may delegate any of our functions or responsibilities as ISA manager in accordance with section 34.

41. Important Information about ISAs (not including JISAs)

41.1 When you subscribe for an ISA, we will open an ISA and General Investment Account for you. Any contributions you make outside of your ISA allowance (as determined by your ISA settings) will be allocated to your General Investment Account.

Our default ISA settings will automatically renew your ISA for the subsequent tax year provided you make a least one contribution to your ISA in each tax year.

For the avoidance of doubt, should you fail to make a contribution to your ISA in a given tax year, your ISA will lapse for the following tax year and any subsequent contributions you make will be allocated to your General Investment Account.

41.2 You can only subscribe to one ISA in each tax year.

41.3 To subscribe for an ISA, you have to be a UK resident aged 18 or over.

The agreement will commence on the day we have both a valid application and receipt of your first subscription or, where you are transferring to us from another ISA manager, on the day we have both a valid transfer application form and receipt of the proceeds of transfer from your previous ISA manager.

41.4 You are responsible for maintaining your ISA settings which determine whether your deposited funds are allocated to an ISA or General Investment Account. Your ISA settings are available in your account dashboard. Should you have any queries or concerns about your ISA settings, please contact johnlewisinvestments@nutmeg.com.

42. Investing in an ISA

42.1 Investments into an ISA may be by bank transfer, debit card, transfer of cash from an existing Portfolio held with us or by transfer from another ISA manager (subject to HMRC's ISA transfer rules).

42.2 The total value of contributions to be invested in any tax year will not be more than the maximum permitted to be invested in an ISA by the Regulations for that tax year. For the avoidance of doubt, John Lewis Investments does not offer a flexible ISA.

42.3 All contributions made to your Account within each new tax year will be allocated first to your ISA until the maximum subscription or your own pre-set limit is reached for that year. Once the maximum subscription or your own pre-set limit is reached, future contributions will be allocated to the non-ISA remainder of your Account, which we call the General Investment Account.

43. Important information about our Junior ISA (JISA)

43.1 Eligibility for the John Lewis Investments JISA

A child will be eligible for a John Lewis Investments JISA (an “Eligible Child”) if, at the time the account application is made,

  • they are under 16;
  • they were born on or after 3 January 2011 or do not have a Child Trust Fund account;
  • they are resident in the UK or are a dependent of a Crown servant (typically a serving member of the Armed Forces); and
  • they do not already have a stocks and shares Junior ISA (whether with Nutmeg directly, with John Lewis Investments or with another ISA provider).

43.2 You must inform us without delay if the Eligible Child for whom the JISA has been opened by you ceases to be meet the eligibility requirements for any reason. For example, if you become aware that they have another stocks and shares Junior ISA or if they have a Child Trust Fund.

44. Opening a Junior ISA - the Registered Contact

To open a JISA on behalf of an Eligible Child you will:

  • be a person over the age of 18 who has parental responsibility for the child (although you do not need to live at same address); and
  • you will have an existing John Lewis Investments Account in your own name, or you will open one with us. If you open a new Account with us for this purpose it may, if you wish, remain unfunded; and
  • provide us with any proof of parental responsibility we may reasonably request (this is at our discretion).

44.1 You will be the Registered Contact for the JISA unless and until you are replaced as set out in these terms. As Registered Contact you will be our point of contact for all statements and other correspondence regarding the JISA and you will be able to give instructions to us for its management. While you are the Registered Contact we will not communicate with or accept instructions from the Eligible Child.

44.2 There can only be one Registered Contact for the JISA at any one time. We will not accept instructions from the power of attorney of a Registered Contact.

44.3 Although we will communicate and take instructions from the Registered Contact the JISA will be opened in the name of the Eligible Child who will be the beneficial owner of all assets in the JISA.

44.4 If we become aware that you are applying to be or are Registered Contact for a JISA but do not have or cease to have parental responsibility for the Eligible Child we will not be able to accept instructions from you and you will need to be replaced as Registered Contact as soon as practicable.

45. Changing the Registered Contact

45.1 The Registered Contact may only be replaced in the following circumstances:

  • If
    • A person who has parental responsibility for the Eligible Child applies to us to act as Registered Contact for the JISA; and
    • The existing Registered Contact has consented to the change (in such form as we require), except in certain circumstances prescribed by the Regulations e.g. the existing registered contact has died or cannot be contacted; or

  • If the Eligible Child reaches age 16 and contacts us requesting to assume authority for managing the JISA as Registered Contact. This replacement of the previous Registered Contact does not require their consent, subject to exceptional circumstances prescribed by the Regulations e.g. if the Eligible Child lacks mental capacity or is suffering mental disorder. Once the Eligible Child is appointed as the Registered Contact, we will accept instructions from and deal with the Eligible Child (and not the person with parental responsibility) from that point forward.

45.2 When the Registered Contact for a JISA changes it will be necessary for us to obtain new information, declarations and authorisations as part of the application for the new Registered Contact for the account. We will carry out a suitability risk assessment in respect to the new Registered Contact. The new Registered Contact must accept these terms and conditions. For more information on how to change a Registered Contact please contact us.

46. Withdrawals from the JISA

46.1 In accordance with the Regulations, no withdrawals may be made from the JISA before the Eligible Child’s 18th birthday unless:

  • The Eligible Child is terminally ill and a terminal illness claim has been agreed with HMRC in accordance with the ISA Regulations (although we reserve the right to make our own checks);
  • The Eligible Child dies – provided that we must receive evidence of the death that is satisfactory to us (usually a certified copy of the death certificate or the Coroner's interim certificate is sufficient although we reserve the right to ask for additional evidence).

46.2 If the Eligible Child dies the investments held in the JISA which arose before their death will continue to benefit from the tax advantages afforded to the JISA.

46.3 No further payments can be accepted into the JISA after the death of the Eligible Child. In this situation the Eligible Child’s personal representatives will have the choice of having the JISA investments transferred to them (or a beneficiary) or for us to sell the JISA investments and pay the proceeds to them (or a beneficiary).

47. Closure of the JISA

47.1 The JISA will be closed by us if:

  • We are notified of the death of the Eligible Child and given the evidence referred to above;
  • All the investments in the JISA are transferred to another ISA manager in accordance with applicable law leaving a nil balance.
  • We are instructed to do so by HMRC where the JISA is void.
  • Initial subscriptions to the JISA have been made, but subsequently stop with the result that due to charges the JISA has a nil balance (in accordance with our account closure process).
  • All the investments in the JISA have been withdrawn following acceptance of a terminal illness claim by HMRC.
  • Eligible Child turns 18.

48. Transition of the JISA

When the Eligible Child reaches the age of 18, we will no longer accept new payments into the JISA and we will convert the JISA into an “adult” ISA and the JISA will be closed. We will write to the Eligible Child asking for instructions to either sell the investments and withdraw from the JISA or to retain the investments and any cash in the new “adult” ISA which will be subject to the terms and conditions in section 40, Additional Terms and Conditions for ISAs.

49. Investing in a JISA

49.1 Only one stocks and shares JISA can be held for an Eligible Child at a time.

49.2 You agree not to contribute more than the Junior ISA subscription limit in any given tax year. In the event the Junior ISA subscription limit is exceeded, the excess amount will be held as cash in trust for the child and will be automatically subscribed in the following tax year.

49.3 Some JISAs permit subscriptions to be made by persons other than the Registered Contact on behalf of the Eligible Child. John Lewis Investments may accept payments into a JISA from persons other than the Registered Contact. We reserve the right to reject such payments in accordance with our obligations under financial crime prevention regulations.

49.4 Payments into the JISA can be made by bank transfer, debit card, transfer of cash from an existing Account with us or by transfer from a JISA in the Eligible Child’s name at another ISA manager (subject to HMRC's ISA transfer rules) or from a Child Trust Fund in the Eligible Child’s name. We cannot accept a transfer from an ISA to a JISA.

49.5 In accordance with the HMRC JISA rules, all payments made into a JISA shall be deemed to be a gift and are non- refundable.

50. JISA Transfers

50.1 Transfers into a John Lewis Investments JISA
If you are transferring funds to a JISA from a Child Trust Fund then the requirements which apply to us under the Regulations require us to wait until 30 days after you have applied for the transfer before we will contact your existing Child Trust Fund manager to arrange the transfer.

50.2 Transfers out of your John Lewis Investments JISA
These terms regarding transfer of the JISA apply in precedence to section 40 to the extent there are differences. You can, at any time transfer the investments in the JISA to a Junior ISA with another ISA Manager. If you are transferring to another stocks and shares JISA you must transfer all of the investments and cash in the account. Partial transfers are not permitted.

To make a transfer to another JISA Manager you must apply to the relevant manager and they will provide you with the necessary transfer form and will the transfer with us. When we transfer the JISA investments we will sell the investments and transfer any cash balances to the new JISA Manager. We cannot transfer investments outside of the JISA tax wrapper.

If we receive income such as dividends or income on investments which we have transferred, we will send this income to the new JISA Manager.

51. Customer Investment Risks

51.1 We have set out below a summary of the nature and risks associated with the types of investments we may include in your Account, subject to your Objectives as notified to us. This information is not intended to constitute a comprehensive statement of all the risks to which investors might be exposed and there may be others that exist now, or which may arise in the future.

51.2 The main general risks associated with investing are as follows:

  • Past performance is not a reliable indicator of future performance;
  • The value of investments may go down as well as up;
  • You are not certain to make a profit. You may make a loss. You may lose your entire investment;
  • The price or value of investments may fluctuate significantly;
  • If there are income distributions, they may also fluctuate significantly.
  • Market conditions may limit the ability for the investment manager to trade and/or adversely affect the price of an asset;
  • Investments in non-UK markets are subject to exchange rate fluctuations.

ETFs

51.3 We primarily invest in Exchange Traded Funds ("ETFs"), although on occasion we may invest in other Exchange Traded Products ("ETPs") such as Exchange Traded Commodities ("ETCs"). For the purposes of these terms, these are collectively referred to under the term ETFs.

51.4 We invest in ETFs listed on recognised stock exchanges in the UK (e.g. the London Stock Exchange) and overseas (e.g. the New York Stock Exchange).

51.5 The main risks associated with investing in ETFs are:

  • The prices of the underlying investments of the ETFs will vary according to the markets on which these are listed or traded;
  • With regard to funds holding non-UK investments, foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of funds in sterling currency terms.
  • Dividend growth is not guaranteed, nor are companies in which you invest obliged to pay dividends;
  • Underlying assets may decline in value;
  • ETFs on overseas markets may involve different risks to the UK;
  • As with all funds, ETFs may be suspended from trading due to the closure of the underlying market or due to the winding down of the fund

Fixed Interest Securities

51.6 We may invest in fixed interest securities issued by governments, governmental bodies, quasi-governmental bodies in the UK (and overseas), UK local authorities and corporates in the UK (and overseas).

51.7 The main risks associated with investing in fixed interest securities are:

  • There are few recognised markets in such securities, as the trading is between the issuers, their brokers, and the banks and securities houses making a market in the securities;
  • With regard to securities in currencies other than Sterling, foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of investments in base currency terms;
  • Securities issued by overseas bodies may involve different risks to the UK;
  • Capital may be lost whether or not held to maturity or in the event of default of the issuer;
  • There is a risk of capital erosion in real terms over time due to the effects of inflation, and
  • The value of fixed income securities may fall as well as rise due to market movements.

52. Collective Investment Schemes

52.1 We may invest in units/shares issued by collective investment funds both in the UK and overseas, that are authorised by an approved regulator or are unauthorised.

52.2 The main risks associated with investing in collective investment funds are:

  • There are no recognised markets for collective investment funds as units/shares are issued and redeemed by the managers /operators /administrators of the funds;
  • Funds may be valued for pricing and dealing purposes either daily, weekly, fortnightly, monthly or even less frequently by the managers /operators /administrators;
  • The prices of the underlying investments of the funds will vary according to the markets on which these are listed or traded;
  • Unregulated funds are not subject to the supervision by a regulatory body as authorised funds, and some authorised funds are subject to greater supervision than others depending on their structure;
  • With regard to funds in currencies other than Sterling foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of investments in base currency terms.

UK and Non-UK Equities

52.3 We may invest in equities, including investment trusts, listed on recognised stock exchanges in the UK (e.g., the London Stock Exchange) and overseas (e.g. the New York Stock Exchange).

52.4 The main specific risks associated with investing in equities include:

  • Dividend growth is not guaranteed, nor are companies in which you invest obliged to pay dividends;
  • Companies may go bankrupt rendering the original investment valueless;
  • Equity markets may decline in value;
  • Corporate earnings and financial markets may be volatile;
  • If there is no recognised market for equities, then these may be difficult to sell and accurate information about their value may be hard to obtain;
  • Smaller company investments may be difficult to sell if there is little liquidity in the market for such equities and there may be substantial differences between the buying price and the selling price;
  • Equities on overseas markets may involve different risks to the UK;
  • With regard to investments in overseas companies, foreign exchange rates may move in an unfavourable direction affecting adversely the valuation of investments in base currency terms.

53 Investments Denominated in an Alternate Currency

53.1 We may affect transactions on your behalf in an investment denominated in a currency other than the agreed base currency of your Portfolio (which is the currency in which your Portfolio is valued).

53.2 A movement in exchange rates may have a separate effect, unfavourable as well as favourable, on the gain or loss otherwise experienced on the investment concerned. In addition, if you deposit collateral denominated in one currency, you may be subject to margin calls in circumstances where the obligations secured by such collateral are denominated in another currency (in addition to the risk of margin calls for fluctuations in relative values). Some currencies are not freely convertible, and restrictions may be placed on the conversion and/or repatriation of your funds including any profits or dividends.

53.3 The base currency of your Portfolio will be Sterling.

54 Discretionary Investment Manager Risk

54.1 Our principal service is discretionary investment management where your individual Pots are managed in accordance with each customer's requirements as set out in your Account. This means that we have discretion over both asset allocation and individual security selection in relation to the assets held in your Portfolio. This means that your Portfolio and its performance will be specific to you, even when compared to a portfolio with a broadly similar mandate.

54.2 Socially Responsible Investing portfolios

The Investment objective for each of our portfolios, and the long term expected nature of its holdings can be found in your suitability report.

Our portfolios are managed in accordance with an internal risk management framework that governs the acceptable asset class, long term volatility and tail risk exposures for a given portfolio (using comparative conditional value at risk measures also known as Expected Shortfall). Our Socially Responsible portfolios are monitored against these constraints daily. The investment team may hold assets outside of these ranges, subject to market conditions or where permission is granted by the Company’s Compliance and Risk Committee.

55. Portfolios

We have a core investment and asset allocation process. We regularly monitor portfolios to ensure they behave within an acceptable range of returns and reference John Lewis Investments performance against comparative benchmarks. Customer performance can differ from the average return for a chosen risk level due to size of customer portfolio, movements of cash in or out and customers changing their risk level.

55.1 Portfolios are monitored against average competitor returns derived from data based on monthly results published by Asset Risk Consultants ("ARC") and Macrobond AB. The average returns from discretionary investment managers based on risk profile are computed after fees.

Socially Responsible Investing (SRI) portfolios

Average competitor returns

This data is based on monthly results published by Asset Risk Consultants ("ARC"). ARC compute the average returns from discretionary investment managers based on risk profile, after fees. These include results from firms such as Barclays Wealth & Investment Management, Coutts & Co, JP Morgan Private Bank, UBS, Rathbones, Rothschild Wealth Management, and others. For example, the Sterling Balanced Asset Private Client Index ("PCI") is a group of portfolios managed with equity risk aimed at between 40%-60% of volatility of global stock markets. For Socially Responsible Investment (SRI) Portfolio risk levels 3-4 the Sterling Cautious index (0-40% Equity Risk) is used, for SRI 5-6 the Sterling Balanced Asset index (40%-60% Equity Risk), for SRI 7-8 the Sterling Steady Growth index (60%-80% Equity Risk), and for SRI 9-10 the Sterling Equity Risk Index (80%-120% Equity Risk). ARC do not provide data for portfolios equivalent to SRI risk levels 1–2. Source data: Macrobond AB.

56. Fees, Charges and Interest Rate Schedule

Our fees and charges are calculated as a percentage of your total assets under management with us. From January 2017, this calculation is based on a tiered structure (similar to the tax system) as shown in the below table:

56.1 Socially Responsible Investing

Total value of assets Under Management: £0–£100,000
Annual Management Fee: 0.75% per annum incl. VAT

Total value of assets Under Management: £100,000.01 and above
Annual Management Fee: 0.35% per annum incl. VAT

There are additional investing costs – underlying investment fund costs and the effect of market spread, more detail can be found at www.nutmeg.com/costs-and-charges.

Cash Holding

Interest Rate earned: 0% per annum*

*Cash held in your Cash Holding pot earns interest at the current Bank of England ("BOE") bank rate minus 0.35%. If the BOE bank rate is below 0.35% you will not receive any interest. If applicable, interest will be paid on your Cash Holding pot on a quarterly basis.

Please note, the cash percentage in your John Lewis Investments portfolio does not form part of your cash Holding and does not earn interest.

56.2 Our quoted fee is inclusive of VAT where applicable.

57. Withdrawals

57.1 By default, we will always return money to the bank account you registered with us. If you requested a withdrawal within 60 calendar days of a debit card payment we reserve the right to return the funds to source.

When you cancel a direct Card payment ("chargeback"), we will debit your Account by the amount being reimbursed. In the event that there is insufficient money in your Account we will convert assets in your account into cash as required and hold you liable if the account is in debit.

57.2 In Specie Transfers

We typically only transfer cash to or from you. In exceptional circumstances where we agree to transfer an account "in-specie" we will levy a charge per investment (line of stock) as itemised below.

We reserve the right to only make external payments to and to accept payments from the bank account stated in your Account. See also section 40, which takes priority as regards ISA withdrawals.

58. Additional Charges

Subject Access Requests (Data Protection Act)*: £0

In Specie transfer: £20 per line of stock

58.1 *We reserve the right to refuse or charge for requests that we deem manifestly unfounded or excessive.

58.2 In addition to our annual management fee, there is an underlying fund cost, relating to ETF’s, as charged by those providers we use to construct your portfolio. These charges may vary from time to time. See the latest costs.

Definitions

"Business Days" means any day on which the London Stock Exchange is open for trading. Cash Holding means an investment pot comprised entirely of cash holdings.

"Cash Holding" means an investment pot comprised entirely of cash holdings.

"HMRC" means Her Majesty’s Revenue & Customs.

"Margin or Collateral" is where your money or investments are passed to a Relevant Party in order to provide security against the performance of obligations.

"Money Laundering Regulations" means The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

"Netting" is the process under which John Lewis Investments and/or the counterparty, central counterparty, central securities depository or other body concerned with settling a transaction are entitled to reduce their obligations to each other by setting off their obligations to deliver cash or securities to one another. This will give a single amount owing to one party from the other rather than a two-way payment. This single amount will then be paid or delivered to the Relevant Party.

"Relevant Party" includes an exchange, clearing house, intermediate broker, settlement agent or a counterparty dealt with directly (over the counter) outside of any exchange. The Relevant Party may be located in the UK or elsewhere.

"Simplified Advice" is financial advice that is limited to one or more of a customer's specific needs and does not involve analysis of the customer's circumstances that are not directly relevant to those needs.

"Sub-Custodian" refers to a third-party custodian (or its nominee company) who Nutmeg selects under the FCA Rules to act on its behalf to keep safe and administer your investments.

"Restricted Advice" is regulated investment advice which is not independent, and is restricted to John Lewis Investments’ investment and pension products and Services based on the analysis of the customer’s specific needs and circumstances.

Arrange a call with client services

Our team of specialists can help answer any questions you may have.

Arrange a call