2. Purpose
2.1 The purpose of this agreement is to detail the basis under which the introduction of clients (‘the Client’) will be made by ‘the Introducer’ to ‘the Firm’.
3. Introductions from FCA Regulated Advice Firms
3.1 Each party shall make it clear in its communications with the persons introduced under this agreement that ‘the Client’, is a client of ‘the Firm’ only for the purposes for which they were referred and that ‘the Introducer’ is not providing any part of this advice and shall have no liability to ‘the Client’ in respect of the services provided by ‘the Firm’.
3.2 Both parties have, and will maintain, authorisation under the Financial Services and Markets Act 2000 (FSMA) with relevant permissions from the Financial Conduct Authority (FCA) to carry out the duties and supply the services provided for under this agreement.
3.3 ‘The Firm’ shall comply with all FCA Rules in respect of its conduct of the provision of the specified advice and these requirements cannot be absolved or transferred to another party.
3.4 ‘The Firm’ will not solicit or seek to entice away from ‘the Introducer’ any person that is introduced to them under this agreement and shall not carry on any regulated activity for ‘the Client’ apart from that for which they were referred to ‘the Firm’.
3.5 Provided that ‘the Client’ has completed all required on-boarding checks, has signed ‘the Firm’ Terms of Business and has provided all appropriate information to ‘the Firm’, and that ‘the Firm’ has no conflict of interest in acting for ‘the Client’, ‘the Firm’ will provide ‘the Client’ with the agreed advice.
3.6 ‘The Firm’ shall notify ‘the Introducer’ if they are subject to a regulatory review that imposes restrictions or removal of its permissions or if ‘the Firm’ is otherwise unable to provide the required advice.
3.7 ‘The Firm’ will not divulge confidential information relating to the investment business of ‘the Introducer’.
3.8 ‘The Introducer’ shall ensure each introduced client has agreed to be referred to ‘the Firm’ for the purposes of the provision of the specified advice.
3.9 ‘The Introducer’ shall comply with all applicable laws and the Rules and Principles of the FCA insofar as are relevant to Introducers and any prohibitions and restrictions made from time to time by the FCA.
3.10 ‘The Introducer’ shall ensure that in all relevant dealings with ‘the Client’, its status as an Introducer to ‘the Firm’ is clearly stated and will not hold itself out as having any other relationship with ‘the Firm’ other than that of an Introducer.
3.11 ‘The Introducer’ will be entitled to attend any meetings between any client and ‘the Firm’, subject to the agreement of ‘the Client’.
3.12 Both parties shall undertake to not do, or omit to do, anything that may bring either party into disrepute.
3.13 ‘The Firm’ and its Registered Individuals hereby agree to advise present and future clients introduced by ‘the Introducer’ in a manner consistent with their current standard disclosure documentation, which will be issued to each client introduced. ‘The Firm’ and its Registered Individuals shall undertake to maintain the highest possible standard of service, professionalism and integrity in connection with advice given to and conduct of business undertaken for clients introduced by ‘the Introducer’.
3.14 ‘The Firm’ is permitted to provide advice on and arrange transactions in Investments, Pension, and other services permitted by the FCA license. Our FCA reference number is 812332.
Provision of Advice to the clients of FCA Regulated Advice Firms
3.15 ‘The Firm’ will be responsible for providing the recommendation in written form to ‘the Client’ in a timely manner, and as set out by the FCA Handbook.
3.16 ‘The Firm’ will accept full responsibility for discharging all obligations placed upon it by the Financial Conduct and Markets Act 2000 (FSMA 2000), when making a recommendation. This will include, but is not limited to, know your client, research, suitability reports, provision of product information and literature and the advantages and disadvantages of the advice, including any risks involved.
3.17 Unless agreed otherwise prior to ‘the Firm’ accepting the case, on completion of any advice ‘the Firm’ will require the new plan to be transferred to the servicing agency of ‘the Introducer’ where ‘the Introducer’ is FCA regulated.
This plan transfer will be arranged by ‘the Introducer ‘and all on-going advice will be the responsibility of ‘the Introducer’.
‘The Introducer’ is responsible for arranging the transfer of the new plan to their own servicing agency.
Where ‘the Introducer’ has not arranged the transfer of the new plan to their own servicing agency within 6 months, ‘the Firm’ will arrange ongoing servicing with the client.
3.18 ‘The Introducer’ will agree that, once they take over the servicing of the new plan, they will accept full responsibility for providing ongoing reviews and services in accordance with their terms of business and practice standards, including, but not limited to:
• Monitoring the fund selection and fund performance
• Recommending fund changes and rebalancing portfolios
• Explaining the taxation consequences of any withdrawals
• Reviewing ‘the Client’s’ attitude to risk, capacity for loss and changes to their health and other circumstances
• Confirming at regular client reviews, the continued suitability of the product.
Once the new plan is set up and all fees have been settled, you may authorise the new provider to transfer the plan, funds and future servicing to your own IFA practice.
4. Introductions from non-FCA Regulated Firms e.g. Accountants and Solicitors
4.1 ‘The Client’ will become ‘the Firm’s’ client for financial services, and ‘the Firm’ will undertake to retain records of business arranged in accordance with the requirements of the Financial Conduct Authority.
4.2 ‘The Introducer’ is making introductions with a view to the provision of advice on investments, pensions, regulated mortgage contracts, and non-investment insurance contracts generally; these are excluded activities under Articles 33 and 33A of the Regulated Activities Order. It is the Introducer’s responsibility to ensure that the conditions for meeting these exclusions are adhered to.
4.3 ‘The Introducer’ may not receive any money (other than money due on his own account) paid by ‘the Client’.
4.4 ‘The Introducer’ shall ensure that in all relevant dealings with ‘the Client’, its status as an Introducer to ‘the Firm’ is clearly stated and will not hold itself out as having any other relationship with ‘the Firm’ other than that of an Introducer.
4.5 ‘The Firm’ and its Registered Individuals hereby agree to advise present and future clients introduced by the Introducer in a manner consistent with their current standard disclosure documentation, which will be issued to each client introduced. ‘The Firm’ and its Registered Individuals shall undertake to maintain the highest possible standard of service, professionalism and integrity in connection with advice given to and conduct of business undertaken for clients introduced by ‘the Introducer’.
4.6 ‘The Firm’ is permitted to provide advice on and arrange transactions in Investments, Pension, Mortgage and Non-Investment Insurance Contracts. Our FCA reference number is 812332.
4.7 Both parties shall undertake to not do, or omit to do, anything that may bring either party into disrepute.
5. Remuneration Arrangements
5.1 ‘The Firm’ agrees to pay ‘the Introducer’ a share of any implementation fee received by ‘the Firm’ at a rate agreed on a reviewable and ongoing basis, from transactions on behalf of clients introduced by ‘the Introducer’. This agreed share shall be paid to the Introducer immediately after the payment is received by the Firm. All renewal commission will be retained by ‘the Firm’. Please see our separate remuneration schedule.
5.2 Should any product provider reclaim any payment already paid, for any reason, this will, at ‘the Firm’s’ discretion, either be offset against future payments due to ‘the Introducer’ or be repaid by ‘the Introducer’ to ‘the Firm’ within fourteen days of demand. ‘The Introducer’ hereby agrees to indemnify ‘the Firm’ fully in respect of the Introducer’s share of any payment reclaimed.
5.3 Any additional fees charged by ‘the Introducer’ for referring ‘the Client’ to ‘the Firm’ would be at the discretion of ‘the Introducer’, agreed with ‘the Client’ and collected by ‘the Introducer’.
5.4 ‘The Introducer’ may have a duty to disclose to introduced clients any payment or other reward or advantage received from ‘the Firm’ for making the introduction. This will be the responsibility of ‘the Introducer’.
6. Customer Confidentiality
6.1 In respect of the maintenance of confidential information both parties acknowledge their own responsibilities for keeping all customer personal data secure under the General Data Protection Regulation (GDPR) and any replacement legislation thereafter.
6.2 Confidential Information means all information (including oral and visual information and all information recorded in writing or electronically or in any other medium or by any other method) concerning the operations, processes, plans, intentions, trade secrets, market opportunities, customers and business affairs of both parties or the clients which is not in the public domain and which has been disclosed by one party to this agreement to the other.
6.3 Both parties agree to maintain secret and confidential all Confidential Information. Nothing in this clause shall impose an obligation on a party to treat information relating to this agreement as confidential.
6.4 Any client information obtained by each party remains the sole property of that firm and will be retained in accordance with the rules as laid down by the FCA.
7. Dispute Resolution
7.1 Any complaint received by either party under the provision of this agreement will be immediately notified to the other party.
7.2 Each party will co-operate fully in the investigation and resolution of any complaints from clients under the provisions of this agreement.
7.3 No party will divulge information relating to the complaint with the other party, other than its instigation and outcome, unless instructed by ‘the Client’.
7.4 The requirements in respect of dispute resolution shall not be affected by the termination of this agreement.
8. Termination
8.1 This agreement may be terminated at any time without penalty by either party giving notice in writing to that effect to the other party. Such termination will not affect the rights of either party in respect of business already completed or in the process of being completed.
8.2 Termination of this agreement for any reason shall not bring to an end the confidentiality obligations on the parties hereto.
8.3 It is further agreed that ‘the Introducer’ may only hand over ‘the Firm’ marketing brochures to clients or prospective clients and is specifically prohibited from completing any application forms, which will be processed by ‘the Firm’.
9. Legal
9.1 This Agreement excludes any rights which may be conferred upon third parties by the Contracts (Third Party Rights) Act 1999 and is governed by and shall be construed in accordance with English Law and the parties shall submit to the exclusive jurisdiction of the English Courts.
