ISA key features

The Financial Conduct Authority is a financial services regulator. It requires us, AJ Bell Securities Limited, to give you this important information to help you to decide whether our Touch by AJ Bell ISA is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.

Its aims

What is the Touch by AJ Bell ISA and what benefits does it offer me?

The Touch by AJ Bell ISA is an investment account designed to help you:

• Make tax-efficient savings in unit trusts and Open Ended Investment Companies (OEICs)
• Build up a sum of money
• Make transfers from other ISAs

You can make new one-off deposits or regular payments

Your commitment

What do I have to do as the ISA investor?

• You must read this document and understand how the ISA works so that you can be sure it’s right for you.
• You must ensure that you understand the features, benefits and risks of the ISA, and ask your adviser if you are unsure.
• You must have an adviser registered with Touch by AJ Bell who is responsible for providing you with personal financial advice, and regularly review the investment strategy.
• You must ensure that any one-off deposits or regular payments do not exceed the ISA annual limits.
• You must tell us about your circumstances when you apply to join the ISA and any changes afterwards.
• You must regularly review whether the Touch by AJ Bell ISA remains appropriate.

Risks

Factors that could affect the return you make on ISA investments. It’s important you understand the risk of investing, please speak to your Adviser if you are unsure as we do not provide investment or personal advice.

• Always read the Key Information Documents and Fund Fact sheets before investing.
• Tax rules can change, and their benefits depend on your circumstances.
• Stock market related investments are not guaranteed and fall in value as well as rise, and you should only invest for the longer term (5+ years).
• Income and yields are variable and are not guaranteed.
• Past performance should not be seen as an indication of future performance.
• If the value of the ISA is small and/or you deal frequently in small amounts, investment charges and any charges agreed with your adviser may be disproportionately high and the value of the ISA may be reduced.

Questions and answers

General

Could this ISA be right for me?

This ISA could be right for you if you:

• Are over the age of 18
• Are looking to invest in our selection of unit trusts and OEICs in a tax-efficient way
• Understand that income and growth are not guaranteed
• Are looking for long term investing but like having unrestricted access to your money

It may not be right for you if you:

• Are under the age of 18
• Want to make your own investment decisions
• Are an overseas tax resident
• Are a US or Canadian citizen
• Don’t have a UK based bank account
• Have a short term savings goal

How much does it cost?

Full details of the ISA charges are available at Charges and interest rates.

How does my Adviser get paid?

Your adviser will discuss their charges and agree them with you. You can either pay these charges directly to your adviser, or we can arrange for them to be deducted from your ISA.

If your adviser charges are paid from your ISA, the value of the ISA will reduce accordingly.

If you tell us that you no longer have an adviser or that you have withdrawn your consent for ongoing adviser charges, we’ll stop collecting them from the date you tell us (except for payments already in flight), and you’ll need to appoint another adviser.

What other terms and conditions apply to this ISA?

On opening your account you’ll be provided with a copy of the Touch Terms and Conditions, and be asked to agree to these. A copy is also available at Client terms and conditions.

Making a payment

You can pay into your ISA if you are aged 18 or over, and are resident in the UK.

Once your ISA is set up you can make a one-off deposit and/or increase/decrease your regular payments at any time.

How can payments be made to my ISA?

One-off deposits can be paid electronically; either by making an open banking deposit through the App or by instructing a payment directly from your bank. The bank payment details, and a unique payment reference number will be provided to you via a task in the app.

Regular payments must be paid monthly by Direct Debit. These payments will be taken on the first of the month, or the next business day if the first is not a business day. Cash will take up to 5 business days to appear on your account. Once set-up you can increase or decrease your regular payments at any time subject to ISA limits. You can stop regular payments at any time via the app or by contacting your bank.

What is the annual limit for ISAs?

There are no minimum payment limits.

Your payments across all ISAs must not exceed the annual limit for ISAs (£20,000 in 2024/25).

If you have opened another ISA in the current tax year, then you may apply to the Touch by AJ Bell ISA but the combined total of payments must not be more than £20,000. Please bear in mind that the ISA usage bar on the ISA account summary page will only calculate the amount paid to the Touch by AJ Bell ISA.

Transfers

Can I transfer my existing ISA to the Touch by AJ Bell ISA (transfer-in)?

Yes, you can transfer from any ISA to the Touch by AJ Bell ISA. Your adviser will need to provide the details of your existing ISA. Your existing ISA can be transferred as cash or investments as long as the investments are available on the Touch platform.

We’ll request details of your investments from your old provider who may convert the fund into a share class that we both hold, which may be more expensive. We’ll convert any funds to a cheaper share class where one is available.

Transfers in cash can take a couple of weeks to complete and transfers of investments can take a couple of months to complete.

Can I transfer my Touch by AJ Bell ISA to another ISA (transfer-out)?

Yes, you can transfer the value of a Touch by AJ Bell ISA to any other ISA manager at any time.

The transfer can be in the form of a cash payment, in which case your adviser will have to sell all the investments held under your ISA before the transfer is completed, or you may be able to transfer your ISA investments in their existing form (in-specie).

When transferring your funds in-specie we’ll convert your existing funds to a fund share class that can be held by both us and your existing provider. In some cases, this may be more expensive than the fund you already hold. If your new provider is not able to hold your existing investments, we’ll sell your investments and transfer the cash in your Account to your new provider.

Investments

Any of our permitted investments (a selection of unit trusts and OEICS) can be held in your ISA. You’ll find information on the funds in the proposal or summary document attached to your advisers recommendation. This will include a link to the Key Investor Information Document (KIID), which you’ll be asked to read before accepting.

Can I make regular investments?

You can only make regular investments where your adviser has set up a regular payment with an investment instruction. (see How can payments be made to my ISA?)

Do I pay tax on any dividends or gains?

There is no tax to pay on any dividends or capital gains. No tax is deducted from any interest paid on cash.

How do I obtain a valuation?

You can obtain a valuation of your ISA at any time via the app. This includes a valuation of your current assets, along with a full transaction history on your accounts. We’ll also send you regular statements via the app detailing all transactions.

Are there any restrictions on what I can invest in?

You can select any investments from our permitted investment list, but you cannot borrow any money against the value of your ISA.

Withdrawing money from your ISA

Withdrawals of cash from your ISA can be done at any time as a one-off payment.

You can either withdraw the full balance held in your ISA, or withdraw part of the balance. There is no charge for withdrawing money.

If you wish to make a withdrawal you can do this through the app.

Is it a flexible ISA?

No, The Touch by AJ Bell ISA is not a ‘Flexible ISA’. Once money has been withdrawn from the ISA you will only be able to pay it back in if the value of the payment, combined with all previous ISA subscriptions in the same tax year, do not exceed the annual ISA limits.

Can I set up a regular withdrawal?

No, the Touch by AJ Bell ISA does not have the facility for you to automatically withdraw an amount of money on a regular basis (i.e. monthly, quarterly, half yearly and annually). However, you or your adviser can arrange a one-off withdrawal at any time.

What happens if I die?

If you die, your ISA will retain its tax benefits until the earlier of the completion of the administration of the estate, the third anniversary of the death or the closure of the account.

Any interest, dividends or gains arising on investments after death will continue to be tax-free.

We do not currently support Additional Permitted Subscriptions (APS) to the Touch by AJ Bell ISA.

Miscellaneous

How secure is my money?

AJ Bell Securities Limited is part of AJ Bell, one of the UK’s largest investment platforms, with £80.3 billion of assets under administration and 503,000 customers. AJ Bell Securities Limited is authorised by HMRC to act as an ISA manager and is authorised and regulated by the Financial Conduct Authority.

What if I change my mind?

You can cancel your ISA if you change your mind, within the first 30 days of opening it.

Cancellation rights will also apply to ISA transfers. If you wish to cancel an ISA transfer you will have 30 days from the date when we confirm that the transfer has been completed.

If you wish to make an investment during the 30 day cancellation period you can do so, however, if your investment has fallen in value, you could receive less back than the amount you initially invested, due to the effect of market movements and any investment costs.

If you wish to cancel, please contact us at support@ajbelltouch.co.uk. Please don’t forget to include:

• your name and ISA reference number.
• whether you wish to cancel your new ISA or a specific transfer.

If we have taken our charges, we’ll repay these to you, but you’ll need to contact your adviser directly if you wish to reclaim any charges we have already paid to them.

Further information about your cancellation rights is included in the Touch by AJ Bell terms and conditions.

Are there any compensation arrangements covering my ISA?

Yes. The Financial Services Compensation Scheme (FSCS) has been set up to help with compensation if firms are unable to meet claims made against them.

Your entitlement to make a claim will depend on the type of business and nature of the claim. The FSCS is independent, and their service is free to use. You’ll keep all the compensation you’re owed when you claim directly through them. More information about the scheme is available on request or from www.fscs.org.uk.

Can Touch by AJ Bell provide me with advice?

No. Touch by AJ Bell is not authorised to provide any advice on personal, financial or tax matters.

If you need any advice then you must contact your adviser.

What if I have any further questions?

You must contact your adviser, although more detailed information on the ISA and the other services offered by Touch by AJ Bell is available on our website.

What if I have a complaint?

If you have a complaint please contact us and we’ll do our best to fix the problem. We’ll manage your complaint in line with our complaints procedure, please get in touch with us if you would like a copy.

Please contact us at:
Touch by AJ Bell
4 Exchange Quay
Salford Quays Manchester M5 3EE
Tel: 0345 839 9060 Email: support@ajbelltouch.co.uk

If you are not satisfied with our response, you may refer your complaint free of charge to the Financial Ombudsman Service at:
Financial Ombudsman Service
Exchange Tower London
E14 9SR
Tel: 0800 023 4567 or 0300 123 9123
Web: www.financial-ombudsman.org.uk
Making a complaint will not affect your right to take legal proceedings.

Touch by AJ Bell is a trading name of the AJ Bell Group. AJ Bell Management Limited (company number 03948391), AJ Bell Securities Limited (company number 02723420) and AJ Bell Asset Management Limited (company number 09742568) are authorised and regulated by the Financial Conduct Authority. All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE. See website for full details.