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eb interact FAQs

All of these FAQs will be available throughout the eb interact journey. You will be able to access them in the top right hand side of the screen whilst you are completing your application. There will also be a contact button next to the FAQ button if you need any help or guidance.

General questions about our investment service

The investments that sit within our portfolios may include:

  • Collective investment vehicles
  • Unit trusts
  • Open Ended Investment Companies (OEICs)
  • Fixed Interest Securities
  • Cash

These are non-complex investment products. Our investment managers are free to select whichever mix are best suited to meet your risk grade. Full details of those selected for you are provided part way through this service in your Investment Management Proposal.

This service helps you by providing just the right amount of advice to match your investment objectives to a risk level that is selected by asking you questions about your risk tolerance (your personal acceptance of risk), and your risk capacity (your financial ability to bear loss).

You will be guided through a process that gathers relevant details about your investment amounts and timeframe, and then a process to assess what risk level is right for your investment. Next, we will provide you with a comprehensive investment management proposal that outlines the investment portfolio that we are proposing to build for you based upon what we have assessed to be the right risk level for you. Naturally we will also ensure that we provide guidance on how to best use your ISA allowances at this stage.

If you wish to proceed and set up an ISA or General Investment account (GIA) to establish your portfolio, you can do so online. At this stage we will need to ask you some personal questions about your financial situation and after investing we will provide you with a full suitability report confirming the parameters of this service and why it is right for you.

Yes, within this service we will make a ‘Personal Recommendation’ based on the information that you provide us, so it’s crucial that you answer all questions honestly. We go to great lengths to target your portfolio to perform within risk parameters that are right for you. This is quite different to many services on offer that provide an unadvised ‘execution only’ service.

This service offers a discretionary investment service, supported by an adviser. The automated process is designed to provide advice of a restricted nature based on restricted information provided by you, it is NOT a full advisory service. An adviser, however, is on hand to answer any questions you may have – just call us if you need help at any point.

Once you have taken the decision to invest, the investment management team makes decisions to buy and sell investments on your behalf in line with the risk grade you have selected. You do not have to give your consent for every transaction; instead, you agree that the investment management team will take responsibility for your investments when you accept the Terms and Conditions. In these terms, there is a commitment and promise to manage your account with skill, care and in accordance with the information you provide.

If at any stage of the process you are unsure, or need help, you can speak to an Adviser for assistance.

Most online services do not provide advice based upon your personal circumstances. They are known as ‘execution only’ services. You therefore carry the risk of investing in funds that do not perform within your tolerance for risk and potentially expose you to losses that you do not have the capacity to accept. Also, if you get it wrong you have no form of redress. We go to great lengths to make a suitable recommendation for you and our advice is covered under the Financial Ombudsman service.

Yes, we will ask you a number of questions and provide suggestions on how you can make best use of this year’s basic Stocks and Shares ISA allowance. We do not offer any other type of ISA.

We don’t currently offer pensions.

Under our ISA and GIA terms you have 14 days in which to cancel from the date we receive your completed application. If you cancel your ISA within 14 days of us receiving your application you will be able to invest in another ISA. Provided you are still in the same tax year, you will bear any shortfall on the investment should your investments have fallen in value during the cancellation period. Please note that if you decide to cancel your investment during the cancellation period you will bear any shortfall your investment may have suffered due to market conditions.

Making your payment is easy. You can either do it online via our secure payment service or simply send us a cheque.

There is no restriction on the sum you are permitted to invest, however the amount that can be allocated to an ISA cannot exceed the permitted annual limit applying in the tax year you invest. We aim to offer truly diversified portfolios. You can add more money whenever you like.

No. Investing is a long-term proposition and you may not get back as much as you invested, but you can withdraw at any time. There’s no minimum investment period. We would suggest you do not invest in the stock market unless you have a timeframe of at least 3 to 5 years.

Our services are available to UK residents only. This means as long as you are a UK resident for tax purposes you are eligible to invest with us. Unfortunately, our services are unavailable to American citizens (even those with dual nationality) due to the US government’s tax reporting requirements.

We are keen to ensure you understand the commitment you are making before you invest. We therefore provide a personalised investment proposal part way through the process to outline the parameters, potential volatility characteristics and expected return from your investment. You are free to print it off and read it at your leisure. This is provided free of charge.

Yes, you are free to review your portfolio online at any time, but we will remind you annually. We will check your risk level is still appropriate and suggest any changes if required. In addition we will ask you some simple questions to ensure nothing has happened in your life that would benefit from further advice.

In order to provide advice to you and in making recommendations we undertake a thorough due diligence process. As a result of our extensive due-diligence we selected Parmenion to provide the administration and investment management that supports our online advice service. Parmenion is an independent and privately owned company founded in 2007. They are backed by some of the most experienced investment and technology executives in the industry.

Parmenion do not take on clients directly, but only offer investment and administration solutions through professional wealth management and financial planning firms. Parmenion is authorised and regulated by the Financial Conduct Authority. Under reference number: 462085.

Client money:
Parmenion will hold all your investment money as client money in accordance with the rules of the Financial Conduct Authority which, amongst other things, requires them to hold money in a client bank account, established with statutory trust status. All funds are segregated from Parmenion’s own funds at an approved bank. Cash received in a currency other than sterling will be converted to sterling at a rate determined by Parmenion at the time. This additional process may cause a delay in crediting the account with the sterling proceeds before investment can be made.

All monies will be held with the money of other clients in a pooled account in the name of Parmenion Capital Partners LLP A/C, held as a common pool but as a ‘Client Account’. Your cash and investment are always held separately from Parmenion’s own accounts. In the unlikely event that Parmenion fails financially, your cash and assets will remain yours and any administration will be obliged to return them to you.

If Parmenion fails, broadly speaking, all client money held by them in client money bank accounts is pooled and is then distributed to clients on a pro-rata basis in accordance with individual client entitlements to the client money pool in general. Were there to be a shortfall in the total amount of client money held in trust accounts, held by Parmenion, you would also share in a proportion of any shortfall.

Parmenion deposits client money in general trust accounts with a UK bank. In the event of the failure of the bank(s), your share of the client money deposited with that bank, together with any personal deposits you may also have with that bank, will be covered up to the Financial Services Compensation Scheme limit (currently the sterling equivalent of €100,000 per depositor).

Nominee services:
All client assets are held in a separate nominee account under the name of a non-trading entity (Parmenion Nominees Limited) and are again ring-fenced away from the assets of Parmenion. As such, in the event of Parmenion being unable to meet its obligations and going into administration, any Parmenion creditors would have no claim over client assets. Client investments are pooled in the Nominee Company and are usually registered in the same name as those of other clients (pooled investments).

Financial Services Compensation Scheme (FSCS)
As an authorised firm, Parmenion pays towards the UK’s Financial Services Compensation Scheme. This is in place to protect private individuals against losses from the failure of an authorised business. In terms of our nominee services, in the event of Parmenion being unable to meet their obligations all client assets are held in a separate nominee account under the name of a non-trading entity (Parmenion Nominees Limited) and are therefore ring-fenced away from the assets of Parmenion. As such, in the event of Parmenion being unable to meet its obligations and going into administration, any Parmenion creditors would have no claim over client assets. Client investments are pooled in the Nominee Company and are usually registered in the same name as those of other clients (pooled investments).

Also, in the unlikely event of Parmenion being unable to return assets or monies to which the client is registered as the beneficial owner, each individual client would be covered by the FSCS, up to the current maximum compensation limit of £50,000 for investment firms. We regularly review our processes and controls in this area. Full FSCS details are available at www.fscs.org.uk.

Regulatory protection The UK’s Financial Conduct Authority has detailed rules for the handling and overseeing of client assets and money and requires extensive pre-recruitment and ongoing checks on, and the registration of, individuals involved in this area of our business. The Financial Conduct Authority’s rules place personal responsibility on such approved persons to ensure compliance with client asset rules and a range of sanctions exist which act as a deterrent to the misuse or careless handling of client assets. We undertake regular reviews to ensure we fully comply with appropriate regulation, principally the FCA rulebook.

Further information about the protection afforded you can be found at www.fca.org.uk.

We use a forecast based on historic values over a 20 year period. We are NOT making any assumption or estimates of likely returns, instead we use history and base the projection on how the assets have performed in the past.

In all cases, projections are just that, a projection. They are not a guarantee of future returns and should be viewed in that context. You must always remember that investment in the stockmarket can go down as well as up and that past performance may be different, and should not be relied upon as an indication of future returns.

The investment projection:

Includes
The effect of fees
Income reinvested
any monthly contributions are maintained

Does not include
the effects of inflation
the effects of tax
changes in your risk profile
changes in our investment strategy

Your investment may lose money as projections are never a perfect predictor of future returns, and are intended as an aid to decision making and education rather than a guarantee of meeting predicted levels.

We calculate the expected long-term average returns for the investment portfolio, as well as the spread of likely outcomes that you see shown in the chart. Our calculations use long-term historical data. The projection chart identifies how likely it is that a portfolio will achieve possible outcomes at different time horizons, based on the historic movement of each investment type.

EB Interact have a strict complaints policy to resolve any issues quickly and efficiently. If you have a complaint about our services or products, please send a letter to Compliance Department, EB Interact, Adam House Ripon Way Harrogate HG1 2AU. Alternatively you can contact us by email or telephone.

If you wish to, you can complain via the EU’s Online Dispute Resolution platform here. This will send your complaint to the Financial Ombudsman Service who will contact us.

If you are dissatisfied with how we have dealt with your complaint and meet the FCA criteria, you will be able to refer your complaint against us to the Financial Services Ombudsman Service. The Financial Ombudsman, Exchange Tower, Harbour Exchange, London, E14 9SR. We will let you know when and how you can do this.

This website is provided solely for private retail clients, for their personal use to access financial information with a view to placing business. It may not be used by any other third party or commercial organisation without prior express written consent from us.

All information contained on the site is for general information use and will make a personal recommendation based on the information entered. Before making any investment choice clients should always take adequate steps to verify the accuracy and completeness of any information.

Withdrawing your money

You can close your account and withdraw money whenever you decide. Please remember, however, that you may not get back the full amount you invested.

It’s your money, and you can request all or part of it back at any time. Withdrawals are free. After we close your account, we hold your personal information for a time as required by law. You should always remember however that the value of investments can go down as well as up, and consequently it may not always be possible to receive back the full amount originally invested. The sum available to you in the event of surrendering your investment will be dictated by value of the underlying assets making up your portfolio at the time we process your instruction to surrender.

Yes, you may at any time set up an income from your investment. This may be in the form of a natural income yield from your portfolio or a fixed amount at regular intervals.

You can take money out of your ISA whenever you want. You should remember, however, that when you withdraw money from your ISA, part of the allowance remains used. This means, for example, that if you reach the ISA limit and then make a withdrawal, the money cannot be put back in.

After your money has been invested, you can access part or all of your money at any time. Withdrawals are free. If you do need to withdraw money, please note this can take up to 10 working days.

However, you should remember that the value of investments can go down as well as up, and consequently you may not receive back the full amount originally invested. The sum available to you in the event of surrendering your investment will depend on the value of your investment at the time we process your instruction to withdraw.

In addition, if you need to withdraw money from an ISA, it may mean that part of the allowance will remain unused. This means that if you reach the ISA limit and then make a withdrawal, the money cannot be put back in.

Please note that any investment should be viewed for the medium to long term, by which we mean a period of at least 3-5 years.

How your investment will be managed

After extensive due-diligence, we selected Parmenion to provide investment and administration services. Parmenion is a wholly owned subsidiary of Aberdeen Asset Management PLC and Aberdeen Investments Limited.

Nothing in life is without risk. We choose to take additional risk only if we believe we will be rewarded for doing so. Investing is no different. Your target investment return is the financial reward you hope to achieve for accepting a degree of investment risk. Sadly, it is a fact of life that if you want high returns you will need to accept a greater risk of loss. So by understanding how much risk you have the tolerance and capacity to accept, we can build a portfolio that targets the maximum return for you.

Put simply, investment risk is a measure of how much uncertainty there is about the return an investment may deliver. The more risk you take, the wider the range of potential outcomes. Taking additional risk can therefore lead to higher or lower actual returns than you would otherwise have achieved. Your ability and willingness to accept risk will determine the range of assets suitable for your investment. Understanding the risk associated with your investments is crucial. If you are not comfortable with – or do not understand – the risk you’re taking, you should not invest.

Inflation risk is a hidden threat to any investment, and while you could be lulled into a false sense of security as your bank balance quietly accrues interest, there’s a possibility that in ‘real’ terms you could be losing money. That’s because the rising cost of living means £100 will buy you less in ten years’ time than it does today. For example, a basket of goods that costs £100 today may cost £110 in 5 years’ time. If you have only received £5 of interest on your bank account (account balance £105), you will no longer be able to afford the goods and will have to spend more of you money. So, for your investments to be truly safe, you need to make sure they’re earning at least the rate of inflation.

There are techniques to manage risk. The most common is asset allocation, or diversification, as it is sometimes referred to.

This involves investing in different types of investments so that different parts of your portfolio react differently to market-moving events. This reduces the negative impact of the worst performing asset classes. As with all things, this benefit comes at a cost – it also reduces the positive impact from the best performing asset classes.

Deciding which assets are right for you can be challenging because the investment universe is vast.

We use respected academic theory to build portfolios tailored to investors’ requirements. These solutions provide what we feel is the optimum mix of assets to deliver the highest possible return for the level of risk you are willing and able to accept.

Each month our investment managers review each of the underlying funds in their investment universe to assess their suitability for continued inclusion within your portfolio. Where a fund is no longer meeting our criteria, we will replace it with one more suitable.

In addition we will periodically rebalance your portfolio to ensure it remains true to your risk profile throughout the year.

If your situation or your goals change you can conduct a review online at any time. We recommend that you do this at least annually in any event as this will allow you to alter the level of risk your funds are exposed to or the amount of money you contribute to them. You have complete control over how much money you have invested with us. We will reconfirm our understanding of the changes in your circumstances, and, if appropriate, suggest changes in your risk grade dependent on your changing circumstances, to keep your investments on track with your risk level.

Online access to your account is available at any time 24 hours a day, 7 days a week, allowing you to see online valuations of your investments. As is the nature of the investments used, the value shown will always be that of the previous business day. We do not issue contract notes for individual underlying trades, these will be detailed on your quarterly valuation report available in your online account. We will notify you when this is generated.

ISA & GIA accounts

Every year the government gives you a tax-free allowance in the form of an Individual Savings Account (ISA). There are two main sorts of ISA – a Cash ISA and a Stocks and Shares ISA. Our online investment service offers only Stocks and Shares ISAs. An individual can only contribute money to one Stocks and Shares ISA and one Cash ISA in each tax year. If the investments held within your ISA make a profit, you are exempt from capital gains tax. You also receive preferential tax treatment on dividends and interest.

A General Investment Account or GIA is a form of investment account that can be used to hold investments directly. It is often used as a feeder account for an ISA although unlike an ISA, it does not attract favourable tax treatment.

For a Stocks and Shares ISA: You must be 18 years or older. You must be a UK resident for tax purposes.

The amount you can invest in an ISA is set by the government every year. In the current tax year 2020/21, you can put up to £20,000 in your ISA.

There are a number of different ISAs that you can invest your annual allowance into. We only offer a basic Stocks and Shares ISA account.

You can invest more than the annual ISA allowance into your investment account, however any amount above the ISA allowance will not be sheltered from tax.

Please bear in mind that a basic stocks and shares ISA may not be right for everyone and that tax rules may change in the future. If you are unsure if a basic ISA is the right choice for you please speak to an Adviser.

We will take you through a set of questions that will allow you to:

  • Put your full ISA allowance into your Stocks and Shares ISA with this service

Any excess contributions will be invested in our General Investment Accounts.

If you have already invested in an ISA elsewhere this tax year, we suggest that you review your ISA contributions before the end of the tax year to ensure you maximise any unused allowance.

If you do not use your entire ISA allowance elsewhere in this tax year, you can review this decision online and transfer the remaining amount before the tax year end.

We are happy to accept transfers into the service (such as transfer of an existing ISA). Due to the limitations of this being an online advice process we are NOT able to make recommendations on which assets you should sell or transfer. This will be solely down to your discretion. If you are unsure, please contact us.

Yes. Any ISA transfers will continue to be sheltered from tax.

Whilst every care has been taken to ensure that you are provided with the most suitable tax efficient way of investing (such as ensuring your ISA allowance for the current tax year is fully utilised), it is important to note that the we do not take into account your personal taxation position or any capital gains tax liabilities or allowances you may have. It’s also important to note that, as this is a discretionary managed service, all transactions undertaken on your behalf to maintain the volatility and return characteristics of your portfolio are carried out without prior reference to you; and personal taxation situations are NOT taken into account when making purchases and disposals within your portfolio which could give rise to capital gains.

Fees

Our charge for this service is made up of two elements:

  • An initial charge for the service you receive when establishing your plan; and
  • An ongoing charge to ensure your portfolio remains on track in future

The exact charges will depend on your investment amount and risk grade. These will be given in your personalised investment management proposal and agreed online before you invest. Once you have agreed these charges they will be confirmed in your Suitability Letter. You can view our fees page for an indicative breakdown.