These are some documents which you will come across when investing.
Retail client agreement
This is also referred to as the terms of business letter. It sets out rights and obligations of the firm and customer, including terms on which the firm will provide services to the customer. As a customer, you should expect to be provided with this document irrespective of the type of investment service.
A firm has a duty to ask you details about you and your finances, and your present and future needs before it provides you with advice or to manage your portfolio. The answers which you provide are recorded in a document called ''Fact Find” or “Client Profile”. For your protection this document is kept on file and a copy is provided for your records. The firm will rely on this information to be able to assist you. Be honest when replying.
The sort of questions /information that will be asked/requested by your firm may include:-
Personal details (which may include age, children or dependants, occupation);
Summary of assets (such as cash held at bank, property, other investments);
Summary of liabilities (such as periodic payments for house loans or other loans, school fees, future commitments, life assurance covers);
Retirement planning arrangements;
Overall investment objectives including your attitude to risk
If there are sections on the ''Fact Find'' that do not apply to you please write ‘none’ in those sections rather than leaving them blank or just putting a line through them. All information which you provide will be treated confidentially and will only be used for advising you on your financial affairs and for no other purpose.
A firm is obliged to send you twice-yearly statements of your portfolio. You may request more frequent statements, especially if your portfolio consists of a large number of investments. Your statement should include information about the contents and valuation of the portfolio, including market values, cash balances at the beginning and end of the reporting period, total amount of dividends and interest received during the period, and the total amount of fees and charges. You may request a detailed breakdown of these items.
You should expect your firm to send you the contract note for a purchase or sale of an instrument no later than the first business day following execution. If confirmation is received by the firm from a third party (for example, another stockbroker), the contract note should be sent to you by no later than the first business day following receipt of confirmation from such third party. The contract note should include information about the trading day and trading time, type of order, venue identification, name of instrument, quantity, unit price and total consideration. You should also have complete disclosure of the commissions and expenses for the transaction, including commission payable to any counterparty .