AJ Bell Touch Order Execution Policy

We are required by the FCA to establish and implement an Order Execution Policy, and to provide appropriate information to our customers as to how we take all sufficient steps to obtain the best possible outcome from the execution of your orders.

This policy applies to all orders received from, and executed on behalf of, our customers. It must be read in conjunction with our terms and conditions.

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Consent

Having had access to review this policy, you are confirming your consent to this policy when asking us to deal for you.

Execution factors

We’ve considered a range of factors to ensure that you receive the best possible results, and these include price, transaction costs, speed, likelihood of execution and settlement, size, and nature.

However, these factors have no impact on fund dealing, and therefore we will execute all orders in line with the instructions provided by you or your adviser.

Dealing process and aggregation

Touch only deals in collective investment funds such as unit trusts and Open-Ended Investment Companies (OEICS).

Orders will be passed to the respective fund provider directly for dealing forward to the next applicable valuation point.

The applicable valuation point is determined from the time we receive your order versus the specified cut-off time for dealing which applies to the next valuation point.

Where possible we’ll aggregate (“combine”) client trades; this means that trading for all clients in the same fund and same trade type (either a buy or a sell) are aggregated and placed as a single trade.

Dilution levy

Aggregation of customer orders may increase the likelihood of orders being of a size where the fund may impose a dilution levy.

A dilution levy can be applied where a customer trade is unusually large and results in the fund manager having to buy or sell investments within the fund. This incurs investment dealing costs which are paid by the fund, and therefore indirectly borne by existing investors of the fund. These costs reduce performance of the fund, which affects all investors of the fund. This effect is known as ‘dilution’ as it dilutes the value of the fund.

To counter the effect of dilution the fund may levy a fee against a large trade.

If a dilution levy has been applied to a trade the charge will be apportioned across all customer trades included in the order.

Policy review

This policy is reviewed annually or where there is any material change to our arrangements. We will notify you of any material changes to our Order Execution Policy or arrangements by providing an updated version by email, or by publishing it on our website and / or app.

Further information

Any reasonable and proportionate requests for further information about our Order Execution Policy can be made to Touch by AJ Bell Support Team via email to enquiry@ajbelltouch.co.uk.

We commit to respond within a reasonable time and in a clear and concise manner.