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How are securities priced?
You get real time trading prices for most UKequities. These are firm prices, guaranteed to be the best execution price when you enter your order details - so "the price you see is the price you get". To ensure that your order is executed at that price, you must accept the price displayed on the screen before the on-screen 20-second timer runs out.
For all other securities, the price you see is indicative, meaning a firm price at which you can trade. Your order will be intercepted by one of our experienced dealers who will execute it in accordance with your instructions. The price at which your order was executed will be reported back to you online as soon as possible.
Please note that the price and value of investments and the income derived from them can go down as well as up and you may not get back the amount you invest.
What about the London Stock Exchange International Retail Service?
The bid/offer spreads on these securities can be wider than the same security in the local market. As these securities are quoted and traded in Pounds Sterling on the London Stock Exchange market makers may widen the spread to take any exchange rate fluctuations into account.
What about international securities?
For overseas markets, prices may reflect local charges. We may rely on our overseas agents to obtain best execution, so far as this applies, or to deal to your best advantage.
What about currency fluctuations?
If you invest in securities that are denominated in a currency other than the currency you use to pay for them, you should be aware that changes in the exchange rate might have an effect on the value, price or income of your investment in payment currency terms.
How soon will my instructions be executed?
Your orders will be executed as soon as possible after we receive them Monday to Friday, between 8.00am and 4.30pm (GMT or BST during British Summer Time) for UK and European Markets and between 2.30pm and 9.00pm (GMT or BST during British Summer Time) for US Markets.
If we receive your instructions outside of normal market hours or with insufficient time to execute them that day, we will execute them at the earliest opportunity at the start of normal trading hours on the following business day.
Will I receive a contract note?
Yes. A contract note for each transaction executed for you. The transaction will be due for settlement in full on the settlement date shown on the contract note.
How long will it take for my trade to be settled?
For UKsecurities held in your account settlement will normally be three business days after the transaction (T+3) and one business day after the transaction (T+1) for gilt transactions. For international securities, settlement will depend on local market rules. If you choose to use our Certificated Service settlement will normally be ten business days after the transaction (T+10). The settlement date relevant to each transaction is shown on the contract note and as part of the transaction details viewable on screen.
What are "when issued" dealings?
"When issued" is a short form of when, as, and if issued. The term applies to conditional transactions in a security that is authorised for issue but not yet actually issued. Settlement will take place when, as, and if the security is issued.
When will I receive my share certificate?
If you choose to buy UKsecurities, you will receive your share certificate when the stock has been registered into your name, following complete delivery from the seller. This will typically take 2-4 weeks after the settlement date.
I have lost my share certificate, what do I do?
If you have lost your share certificate you must contact the company registrar to obtain a duplicate. This procedure can take anything between 2-4 weeks.
You should not attempt to sell securities for which you have lost the certificate through your account as this may put you in breach of our Terms and Conditions.
Can you pay my proceeds direct to another account?
No. Proceeds from sale transactions will be paid to your relevant Account.
How are dividends paid?
We will credit your Account with dividends. If you choose to use our Certificate Service, dividends will be sent to you directly. Alternatively, you can elect to have these mandated to a bank account or, if you wish, to your Account.
Why can I only trade a maximum of 5,000 shares in NYSE and AMEX securities?
It is simply more cost effective for you.
Any trades that exceed the trading limit of 5000 shares would be subject to an additional charge of 1.5 cents per share. This would equate as a commission equal to the normal rate (£17.50 + USD3.00) plus the additional charge of at least USD75.01 (5001 x USD0.015). By placing trades that are limited to a maximum of 5000 shares the commission would be a maximum of £17.50 + USD3.00 per 5000 shares.
Therefore, it is more cost effective for you to enter two orders and incur commission charges on both trades than to trade over 5,000 shares at one time.
How will I receive dividends?
If you are a UKresident, all dividends will be paid directly into your Account.
If you choose to have your UKregistered securities registered in your own name, dividend chequeswill be sent to your registered address. You may contact the company registrar in order to have your dividends mandated to your bank account, or your account.
What about scrip dividends (shares in lieu of cash)?
When you open an account, you can indicate a preference to elect for scrip dividends in respect of UKregistered securities when they are offered in lieu of cash dividends. This option is not available for non-UK registered securities.
If you are a UKresident and choose to have your UKregistered securities registered in your own name, you will receive notification of dividends directly from the company and will need to elect to take a cash or scrip dividend, where available, on a case-by-case basis.
When will dividends be credited to my account?
Dividends on UKregistered securities will be credited to your account on receipt of the payment from the registrar.
Where you have elected to receive income in sterling dividends on non-UK securities will be credited to your Account as soon as possible after we receive them from the relevant overseas custodian. Alternatively, where you have elected to receive income in a currency other than sterling, dividends will be added to your balance held in the relevant pooled currency account.
If you are a UK resident and choose to have your UK registered securities registered in your own name, dividend cheques will be sent to you directly by the company to arrive on the payment date, unless you have chosen to have them mandated to a bank account, in which case they will be credited to that account on the payment date.
Will I be sent a tax voucher?
You will receive a Consolidated Tax Certificate shortly after the end of the UKtax year (5th April).
If you are a UKresident and choose to have your UKregistered securities registered in your own name, you will receive a tax voucher. If you hold or have held your securities in our Nominee Service and you have received dividends on those securities during the financial year. The Consolidated Tax Certificate will also include any interest paid on Foreign Currency Deposits on your account.
What do I need to do with my Consolidated Tax Certificate (CTC)?
You should keep your Consolidated Tax Certificate, along with its attached schedules. You will need to produce it for tax reporting purposes and in support of any claim to tax relief submitted to your Tax Inspector.
Is interest earned on foreign currency included on my CTC?
Yes. Information about US Dollar and Euro interest is included on the summary page at the front of your Consolidated Tax Certificate, under the Foreign Currency Deposit heading.
The total in this line includes the interest paid on your US Dollar and/or Euro accounts. This total is quoted in Sterling. Its value was calculated using the prevailing exchange rates on the day that interest was paid.
Should I include interest on foreign currencies on my Annual Tax Return?
Yes, interest earned on your US Dollar and Euro accounts should be included in your Annual Tax Return to the Inland Revenue. This is because the interest has been paid gross and no tax was deducted at source.
The total interest paid should be included as part of your gross income to the Inland Revenue. Tax will then be deducted based on your individual tax liability to the Inland Revenue.
What is a corporate action?
In the context of this Help section, a corporate action is any event by a company that affects your holding of shares or other securities in that company and which may in turn require action by you. Examples of corporate actions include takeover bids and mergers, rights issues, capitalisationissues, stock splits, other capital reconstructions and scrip dividends.
Will I be advised about corporate actions?
If we need to take your instructions in respect of a corporate action, we will notify you by letter and/or e-mail, explaining whatever options are available and how you can communicate your instructions to us. We will inform you of the deadline for your response.
If you are a UKresident and choose to have your UKregistered securities registered in your own name, you will receive details of any corporate actions directly from the company and will need to act upon them as instructed by the company.
Will I need to complete any documentation?
In most circumstances, you will not be required to complete any documentation. That is part of the benefit of using our Nominee Service. Should you need to complete a document, it will be forwarded to you with full instructions.
If you are a UKresident and choose to have your UKregistered securities registered in your own name, you will receive all relevant documentation about corporate actions directly from the company. This may well involve the completion of documentation.
What if I miss a deadline?
We will notify you of the deadline for a response to a corporate action. If we do not receive your instructions by the notified deadline, then we will presume that you require us to take no action. This means, in effect, that you have missed the opportunity to respond to the corporate action concerned, which may or may not be to your disadvantage.
If you are a UKresident and choose to have your UKregistered securities registered in your own name, you will receive all relevant documentation about corporate actions directly from the company and this will include a deadline. The consequences of not responding by the deadline are as above
What if there is a dividend or a corporate action just after I've invested?
In the event that a dividend is paid or corporate action occurs to which you are entitled but your purchase has not been registered, we will automatically make a claim on your behalf from the seller of the securities concerned and inform you accordingly. We will also request your instructions as needed.
What if there is a dividend or a corporate action just after I've sold?
In the event that a dividend is paid or corporate action occurs to which you are not entitled but you receive because your sale has not been registered, the buyer of the securities will make a claim from you. We will deal with this on your behalf as part of our Nominee Service.
If you are a UKresident and choose to have your UKregistered securities registered in your own name, we will claim the dividend or corporate action from you for delivery to the buyer.
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