Overview

These terms are additional terms to the Fintuity Client Agreement provided to you by your Fintuity adviser and are only applied in case you are investing in Fintuity Model Portfolios. The Fintuity Model Portfolios are a Discretionary Investment Management (DIM) service provided by P1 Investment Management Ltd. who run the portfolios on our behalf. We operate on an ‘Agent as Client’ basis with P1 Investment Management Ltd.

Terms and Conditions

Updated 2nd April 2024

By using Fintuity Model Portfolios, you agree to these Terms of Use. To contact Fintuity Ltd, please email support@fintuity.com. Our registered address is 128 City Road, London, EC1V 2NX. You should read these Terms below along with our Client Agreement and Privacy Policy.

1. About Us

Fintuity Ltd (Fintuity/we/us) is a company registered in England and Wales with a registered office at 128 City Road, London, EC1V 2NX. You can check our details by visiting Companies House website (10849933).

2. Accepting the terms

These legal terms are between you and Fintuity Ltd and you agree to them by using the Fintuity Model Portfolios (the Model Portfolios) that we provide. The Fintuity Model Portfolios are a Discretionary Investment Management (DIM) service provided by P1 Investment Management Ltd. (the P1) who run the portfolios on our behalf. We operate on an ‘Agent as Client’ basis with the P1.

In order to use the Service, you need to agree to the Terms. This can be done by agreeing to invest in Fintuity Model Portfolios and accepting the suitability report provided to you by your financial adviser.  You shouldn’t use the Service if you’re not allowed to do so under UK laws. The Terms apply until a time that you cease to use the Model Portfolios.

3. Using the Service

The Fintuity Model Portfolios are a Discretionary Investment Management (DIM) service provided by P1 Investment Management Ltd. (the P1) who run the portfolios on our behalf. We operate on an ‘Agent as Client’ basis with the P1.

Depending on your circumstances, we may recommend the Fintuity Model Portfolios if we deem them suitable.

Where we make such a recommendation, the responsibilities for the recommendations are as follows:

Fintuity will:

• Ensure we have conducted sufficient research and due diligence on the discretionary investment manager that we select to provide the discretionary investment management service.
• Assess your circumstances and financial planning objectives, knowledge and experience to ensure that a discretionary investment management service is appropriate. We shall ensure that the discretionary investment management service and the investment policy or investment strategy of the model portfolios we recommend are suitable such that you are able financially to bear the investment risks and have the necessary experience and knowledge in order to understand the risks involved in the management of the investments.
• Confirm the on-going suitability of the discretionary investment management service and model portfolio.
• Ensure that the discretionary investment management service and the investment policy or investment strategy of the model portfolios we recommend remain suitable for your investment objectives and attitude to risk on at least an annual basis.
• Continue to monitor our selection of discretionary investment management services.
• Monitor the performance of the discretionary investment management service to ensure the on-going appropriateness of our selection for your overall financial planning and investment objectives.
• We shall be responsible for notifying you of the fees and charges of the discretionary investment management service we select for you.
• We shall be responsible for providing advice to you on the tax implications of the discretionary investment management service.

The discretionary investment manager will:

• Manage your investments in accordance with the investment policy, investment strategy and investment mandate of the model portfolios we have selected for you.
• Ensure its decisions to trade and all transactions are consistent with the terms of the investment policy, investment strategy and investment mandate of the model portfolios we have selected for you.

The discretionary investment manager will NOT:

• Provide you with financial planning or tax advice or assess your suitability for their investment management service.
• Our relationship with you is that we will act as your agent, at least insofar as it means that you give us your authority to act on your behalf in relation to the DIM. Where we recommend you use a DIM, we will be acting as your agent and will use all reasonable steps to discharge our responsibilities to you with care and due diligence. We will undertake appropriate due diligence on the DIM and ensure that the services provided by the DFM meet your investment objectives and risk profile.

The P1 will treat us – acting as your agent – as their regulatory client. We become the client of the P1 Investment Management on your behalf. There is no direct written contract between you and the P1. It is important to note that this applies only to P1’s management of the Fintuity Portfolios, not their role as the platform provider.

This type of arrangement is different from an arrangement whereby you have a direct relationship with the DIM. All communication in relation to the discretionary investment management service will be between the P1 and us acting as your agent. There will normally be no direct communication between you and the P1. You should be aware that with this type of arrangement, you may lose some protections afforded to investors (retail clients) who have a direct relationship with a DIM. The DIM will treat us as their client, not you. Typically, they will classify us as a Professional Client.
The consequences for you of us being categorised as a professional client are as follows:

Information

a)  Communication with clients

Regulatory consequences of categorisation as a professional client

A firm must ensure that its communications with all clients are fair, clear and not misleading. The way in which a firm may communicate with professional clients (about itself, its services and products, and its remuneration) may be different from the way in which the firm communications with retail clients. A firm’s obligations in respect of the level of detail, medium and timing of the provision of information are different depending on whether the client is a retail or professional client.

Our response

Although the DIM may treat us as a Professional Client, we will treat you, our investor, as a retail client. We will ensure that the risks of any Discretionary Investment Management Service we select is explained to you clearly and the risks are clearly disclosed.

b)  Information on costs and charges

Regulatory consequences of categorisation as a professional client

A firm must provide clients with information on costs and associated charges. The information provided may not be as comprehensive for professional clients as it must be for retail clients.

Our response

We will provide you with clear information on the costs and charges of any services we provide you as well as the costs and charges involved in any DIM Service we may select.

Under the regulatory system, we are obliged to provide you aggregated costs and charges disclosure on an annual basis. This will include all the costs and charges of investments that we have arranged for you or recommended. The costs and charges of the DIM would be included in this disclosure.

c)   Disclosure of risks

Regulatory consequences of categorisation as a professional client

A firm is entitled to assume that a Professional Client has the requisite knowledge and experience to understand the risks involved in investing.

Our response

Although the DIM may treat us as a Professional Client, we will treat you, our investor, as a retail client. We will ensure that we assess your knowledge and experience in the investment field relevant to the specific type of investment or service we may recommend. We will also ensure that the risks of any DIM service we recommend are explained to you clearly.

Suitability and appropriateness

Regulatory consequences of categorisation as a professional client

If a firm makes a personal recommendation or manages investments for a client, it is required to obtain and consider the following information in relation to the client:

·     The client’s knowledge and experience in the investment field relevant to the specific type of investment or service

·     The financial situation of the client, and

·     The client’s investment objectives

Our response

We will treat you, our Investor, as a retail client.

Under the regulatory system we are required to obtain and consider the following information in relation to you.

·     Your knowledge and experience in the investment field relevant to the specific type of investment or service

·     Your financial situation, and

·     Your investment objectives

Where we recommend You use the services of a DIM, we will ensure that the services of the DIM are suitable for you at outset and on an ongoing basis.

Client money

Regulatory consequences of categorisation as a professional client

The definition of ‘client’ in the Client Assets Sourcebook (CASS) includes ‘if a person (‘C1’), with or for whom the firm is conducting or intends to conduct designated investment business, is acting as agent for another person (‘C2’), either C1 or C2 in accordance with the rule on agent as client COBS 2.4.3 R’. Therefore, in the absence of agreement to the contrary, the client would be the adviser and a per se professional client.

A firm can obtain written acknowledgement from a professional client to confirm that their money is not subject to the client money rules (CASS 7.10.9 – 10). If a professional client opts-out, its money will not be segregated from the money of the firm and used by the firm in the course of its own business, and the professional client will rank only as a general creditor of the firm.

Our response

Although the professional client opt-out is available, we will not be agreeing to the opt-out and will request our money is treated as client money in accordance with the client money rules.

Financial Ombudsman Service (FOS)

Regulatory consequences of categorisation as a professional client

The FOS handles complaints about investments and resolves disputes for free between financial services companies and their customers without having to go to court.

The services of the Financial Ombudsman Service in the UK may not be available to professional clients, unless they are, for example, consumers, small businesses or individuals acting outside their trade, business, craft or profession. Given that we will be classified as a professional client and our trade is financial services, we may not be able to take a complaint on your behalf to the FOS.

Given that you have no direct contractual relationship with the DIM you may not be able to take your complaint to the FOS.

Our response

You will be able to approach the FOS with any complaint with respect to our Services. We operate our own complaints procedure, a copy of which is available on request.

Should you wish to make a complaint about the DIM we recommend you would need to complain to us in the first instance. It is possible that no direct complaint can be made against the DIM as you are not their client.

Financial Services Compensation Scheme (FSCS)

Regulatory consequences of categorisation as a professional client

The FSCS exists to protect customers of financial services firms that have failed.

If a company you have been dealing with has failed and cannot pay claims against it, the FSCS can step in to pay compensation.

We are a member of the UK Financial Services Compensation Scheme. You may be entitled to claim compensation from the FSCS if we cannot meet our obligations to you. This will depend on the circumstances of the claim.

Our response

Any DIM, platform or custodian that we select will also be a member of the FSCS and your money should be protected.

COMP 5.5.1 confirms that ‘protected investment business’ includes: ‘designated investment business carried on by the relevant person

with, or for the benefit of, the claimant (so long as that claimant has a claim), or as agent on the claimant’s behalf’.

COMP 12A.2.2 states: ‘If a claimant has a claim as agent for one or more principals, the FSCS must treat the principal or principals as having the claim, not the claimant’.

As a result you may be able to seek redress from the FSCS in relation to the failing of any regulated entity involved in the provision of the services. However, it is always fact specific and we cannot offer any guarantees on this.

4. Amendments

From time to time it may be necessary to amend the terms of using the Service. If this is the case, we’ll write to you with details of the changes at least 14 business days before they are due to take effect. If you don’t agree to the new Terms you must stop using the Service. If you continue to use the Service, it will mean that you accept the new Terms.

How to contact us

Please contact us if you have any questions about our site policy by email at support@fintuity.com