RIA key features

The Financial Conduct Authority is a financial services regulator. It requires us, AJ Bell Management Limited, to give you this important information to help you to decide whether our Touch by AJ Bell RIA 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 RIA and what benefits does it offer me?

It is a simple pension product which is part of the Sippdeal e-sipp and is governed by its trust deed and rules, a copy of which is available from us or your adviser on request. It is designed to help you:

• make tax-efficient retirement savings in unit trusts and OEICs;
• build up a sum of money to give you a future source of income;
• make transfers from other registered pension schemes; and
• nominate whom you would like benefits to be paid to on your death, although the decision rests with the Scheme Administrator.

The RIA does not currently offer a facility to take your pension benefits. This means you will have to transfer your RIA to another provider when you want to take money from it.

Your commitment

What do I have to do as the RIA member?

• You must read this document and understand how the RIA works so that you can be sure it’s right for you.
• 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.
• Your contributions must stay in a pension until your retirement date and then be used to provide your retirement benefits.
• You must tell us about your circumstances when you apply to join the RIA and any changes afterwards.
• You must review regularly whether the RIA remains appropriate.

Risks

Factors that could affect the benefits you will receive from your RIA.

The main aim of any pension scheme is to provide you with income in retirement. The two areas in which your decisions will affect the payments you are able to receive from your RIA are:

• payments into your RIA; and
• investments within your RIA.

Payments into your RIA

• If you transfer funds from another registered pension scheme, then there is no guarantee that what you get back will be higher and you may be giving up certain rights in the other pension(s) that you will not have under the RIA.
• The value of your RIA will be affected by the level of contributions paid into it now and in the future.
• The rules relating to tax relief on contributions may change in the future.

Investments within your RIA

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 a guarantee of future performance.
• If the value of the RIA 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 RIA may be reduced.

Questions and answers

General

Could this RIA be right for me?

This RIA could be right for you if you:

• are over the age of 18;
• are looking to invest in our selection of unit trusts and Open Ended Investment Companies (OEICs) in a tax efficient way;
• are looking to build up a pension fund;
• understand that income and growth are not guaranteed; and
• are prepared to commit to having your money tied up, normally until at least age 55 (57 from 6 April 2028).

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
• want unrestricted access to your money before the age of 55 (57 from 6 April 2028); or
• want to take pension withdrawals, including lump sums.

Is it a stakeholder pension scheme?

No, it is NOT a stakeholder pension. Stakeholder pensions are generally available, may be lower cost, and could meet your needs at least as well as this RIA.

How much does it cost?

Full details of the RIA charges can be found in our costs and charges page.

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 RIA.

If your adviser charges are paid from your RIA, the value of your RIA 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 it 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 RIA?

On opening your RIA you’ll be provided with a full copy of the Touch by AJ Bell terms and conditions and be asked to agree to them. A copy is also available at Client terms and conditions.

Contributions

Who can pay contributions?

Contributions can be paid by you if you are under the age of 75 and a relevant UK individual.

If your entitlement to enhanced protection, fixed protection 2012, fixed protection 2014 or fixed protection 2016 was granted after 15 March 2023, the payment of any contribution will result in the loss of this protection.

How can contributions be paid?

You can contribute a single lump sum or make regular savings into it.

We do not accept single contributions of more than £500,000 and regular contributions in excess of £20,000 per month.

Single contributions 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 working day if the first is not a working day. Cash will take up to 5 working days to appear on your account. Once set-up you can increase or decrease your regular payments at any time. You can stop regular payments at any time via the app or by contacting your bank.

How does tax relief on my contributions work?

Each tax year, you’ll get tax relief on personal contributions paid by you up to 100% of your relevant UK earnings. If you have no UK earnings, or your relevant UK earnings are less than £3,600 a year, you can still pay contributions up to £3,600 (gross) and receive tax relief.

Any contributions from your employer are not subject to this tax relief limit.

We will assume that all personal contributions are able to receive tax relief at the basic rate of income tax basic rate of income tax.

As an example, and assuming that basic rate of income tax is 20%, if you pay a net contribution of £800 then we will reclaim £200 from HMRC and credit this amount to your RIA.

We’ll claim the basic rate tax relief from HMRC for you, and it usually takes 6 – 11 weeks for us to receive it from HMRC. If you pay tax at a higher rate, you can claim further tax relief via your tax return.

What is the annual allowance?

HMRC uses the annual allowance to restrict tax relief on large contributions and high-income individuals.

For the 2024/25 tax year the annual allowance is £60,000.

If, in any tax year, the total of:

• contributions paid to registered pension schemes by, or on your behalf (including any paid by an employer); and
• the increase in the value of your benefits under any final salary pension schemes;

is greater than £60,000 you will exceed the annual allowance.

If you are a high-income individual your annual allowance will be reduced by £1 for every £2 that your adjusted income exceeds £260,000 to a minimum allowance of £10,000.

What is the money purchase annual allowance (MPAA)?

If you have flexibly accessed your pension benefits an annual allowance of £10,000 will apply to contributions to all defined contribution schemes, including your RIA.

What happens if I exceed the annual allowance or, if applicable, the MPAA?

Your adviser should ensure that your contributions are within the allowances and limits for pension contributions. If you exceed the annual allowance or the MPAA this may need to be reported to HMRC (usually via self-assessment) and, if so, tax charges may be payable. If you are at all unsure, please check with your adviser.

Transfers

Can I transfer my existing pension benefits into my RIA?

Yes, you can transfer from most registered pension schemes. Your pension can be transferred as cash or investments as long as the investments are available on the Touch platform.

It may take some time for us to receive the transfer payment from your existing scheme. Transfers in cash can take a couple of weeks to complete and transfers of investments can take a couple of months to complete.

Transferring from final salary pension schemes involves giving up guaranteed benefits. You must take advice before transferring; we’ll only accept transfers containing safeguarded benefits (including defined benefit pensions) with a value more than £30,000 if you have received a positive recommendation to transfer.

As we currently don’t offer a drawdown facility, we cannot accept any transfers that include funds in drawdown, including beneficiary’s or dependant’s drawdown. We also don’t accept transfers that include a protected lump sum or a protected retirement age.

Can I transfer my RIA to another pension scheme?

Yes, you can transfer benefits to another registered pension scheme or a qualifying recognised overseas pension scheme (QROPS).

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 RIA before the transfer is completed, or you may be able to transfer your RIA investments in their existing form.

Investments

What can I invest in?

Any of our permitted investments can be held in your RIA, and you’ll find information on the funds in the proposal or summary document attached to your adviser’s recommendation. This will include a link to the KIID (Key Investor Information Documents) 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 contributions be paid?)

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 RIA 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.

Pension benefits

When can I take retirement benefits?

Benefits can normally be taken after you have reached the age of 55 (57 from 6 April 2028).

Currently you will need to transfer all or some of your RIA to another pension scheme to take benefits.

Is there any limit on the amount of my benefits?

There is no limit on how much of your RIA that can be used to provide income drawdown or use to purchase a lifetime annuity. However there are two limits in respect of tax-free lump sums.

The lump sum allowance – currently £268,275. Pension commencement lump sums and the 25% tax-free element of uncrystallised funds pension lump sums count towards this.

The lump sum and death benefit allowance – currently £1,073,100. Pension commencement lump sums and the 25% tax-free element of uncrystallised funds pension lump sums count towards this. In addition, serious ill-health lump sums paid tax-free before age 75 and tax-free lump sum death benefits paid tax-free before age 75 also count towards it.

These allowances were introduced on 6 April 2024, replacing the previous allowance, which was called the lifetime allowance and was set at £1,073,100 in 2023/24.

Can I buy an annuity from my RIA?

Yes, you can buy an annuity with proceeds from your RIA.

Death benefits

What happens if I die?

Death benefits are normally paid to beneficiaries tax-free if you die before age 75 and, when paid, are within the deceased’s lump sum and death benefit allowance. This is regardless of whether you are taking benefits or not, and can be paid as a lump sum or as pension income (annuity or income drawdown). If you are over the age of 75 on death, the benefits will be taxed, in most cases, at the marginal rate of income tax of the beneficiary.

If your beneficiaries wish to have the death benefits paid to them as pension income, they will need to set up a pension with another provider who can facilitate the payment of a pension.

Pension death benefits are normally free of inheritance tax, but we cannot guarantee that this will be the case.

You can tell us what you would like to happen when you die by completing the expression of wish and by nominating beneficiaries, which you can amend at any time. Death benefits are payable at the discretion of AJ Bell Management Limited as the scheme administrator.

Miscellaneous

What if I change my mind?

You can cancel your RIA if you change your mind within the first 30 days of opening it. Cancellation rights will also apply to pension transfers. If you wish to cancel a pension 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 RIA reference number; and
• whether you wish to cancel your new RIA or a specific transfer.

If you’re cancelling a new RIA, we’ll return any contributions directly to you and any investments we have already purchased can either be sold or transferred into another account in your name.

If you’re cancelling a pension transfer, we’ll return everything we’ve received to the previous pension provider. If the previous pension provider is unable to accept them back, we’ll let you know and confirm how you wish to proceed.

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.

Are there any compensation arrangements covering my RIA?

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

Your entitlement to make a claim will depend on the type of business and the 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 RIA 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. If you’re still not happy, you may be able to refer your complaint to the Financial Ombudsman or the Pensions Ombudsman.

Help is also available from MoneyHelper who can advise you on how to complain, and who may be able to sort the matter out without the need for an Ombudsman to get involved.

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

Making a complaint will not affect your right to take legal proceedings.

Who looks after this RIA?

AJ Bell Management Limited is the scheme administrator of the pension scheme and is therefore responsible for the day-to-day administration and management of the RIA.

Sippdeal Trustees Limited, a wholly owned subsidiary of AJ Bell Management Limited, is the sole trustee of the pension scheme.

AJ Bell Management Limited is authorised and regulated by the Financial Conduct Authority.

Sippdeal Trustees Limited does not conduct any regulated activities and is, therefore, not regulated.

Bank of Scotland is the provider/establisher of the scheme and will satisfy any statutory obligations that it may have from time to time, as provider/establisher of the pension scheme.

AJ Bell Securities Limited provides the funds and the custody service and is authorised and regulated by the Financial Conduct Authority.

Lawshare Nominees Limited is the nominee.

Important

The information contained in this key features document is provided based on our understanding of current law, practice and taxation which may be subject to change.

Full details of the legally binding contract between you and AJ Bell Management Limited are included in the Touch by AJ Bell terms and conditions.

Glossary

Adjusted income

Adjusted income is defined in legislation - Work out your reduced (tapered) annual allowance - GOV.UK (www.gov.uk).

Annuity

An annuity is an insurance product that allows you to swap your pension savings for a guaranteed regular income that will last for the rest of your life.

Basic rate of income tax

Income tax is a tax you pay on your income and a basic rate of income tax is a tax percentage that can be applied to your income.

Wales, Scotland, and the rest of the UK have the ability to set their own basic rates of income tax.

When you open an RIA, we will treat you as being rest of the UK and we will reclaim the basic rate of income tax at the UK rate. If HMRC notify us of a different tax residency we will amend our records for all future claims and tax payments.

Beneficiary(ies)

These are individuals who you have nominated or who the Scheme Administrator has selected to receive all or some of your RIA in the event of your death.

Defined contribution scheme (also known as a money purchase scheme)

A pension scheme that is built up through your own contributions, those of your employer and tax relief from the government.

The final value of your pension is not guaranteed and depends wholly on the money contributed to the scheme and the investment return achieved.

Final salary pension scheme

This type of pension scheme is also known as a defined benefit pension scheme and is one where the amount you are paid is broadly based on how many years you have been a member of the employer’s scheme and the salary you have earned when you leave or retire.

Financial Ombudsman Service

The Financial Ombudsman Service, Exchange Tower, London E14 9SR. Telephone 0800 023 4567 or email complaint.info@financial-ombudsman.org.uk

Financial Services Compensation Scheme

The Financial Services Compensation Scheme, PO Box 300, Mitcheldean GL17 1DY. Telephone 0800 678 1100 or contact via the website

High-income individual

For the 2024/25 tax year you will be a high-income individual with:

• an adjusted income of over £260,000 for the tax year; and
• threshold income of over £200,000.

HMRC

HM Revenue and Customs are a department of the Government responsible for the administration and payment of tax relief relation to pension contributions.

MoneyHelper

MoneyHelper, 120 Holborn, London EC1N 2TD

Telephone 0800 011 3797 or contact them via the website

Qualifying recognised overseas pension scheme

A qualifying recognised overseas pension scheme is a pension scheme established outside the UK that is broadly similar to a UK registered pension scheme.

Pensions Ombudsman

Pension Ombudsman 10 South Colonnade, Canary Wharf, London E14 4PU

Telephone 0207 630 2200 or email enquiries@pensions-ombudsman.org.uk

Pension scheme

The pension scheme is the Sippdeal e-sipp.

Permitted investments

The range of funds that we allow you to hold in your RIA.

Registered Pension Scheme

A pension scheme that is registered under Chapter 2 of Part 4 of the Finance Act 2004.

Relevant UK individual

Relevant UK individual must meet one or more of the following categories:

• you are a UK resident for tax purposes;
• you have relevant UK earnings;
• you are a non UK resident but were a UK resident when you joined this RIA and have been a UK resident at some time in the past 5 years; or
• you are a crown servant (or spouse or civil partner of a crown servant) with earnings subject to UK tax.

Relevant UK earnings

Relevant UK earnings is defined by HMRC – PTM044100 - Pensions Tax Manual - HMRC internal manual - GOV.UK (www.gov.uk)

Self Assessment

Self Assessment is a system HMRC uses to collect Income Tax.

Stakeholder pension

Stakeholder pensions are relatively simple pension plans, with limited investment options, for which the Government has set minimum standards to be met by providers covering areas such as charges, minimum payment levels and terms and conditions.

Stakeholder schemes are generally available and it is for you to consider, with the assistance of your financial adviser, whether one may meet your needs as well as this RIA.

Tax relief

When you earn tax relief on your pension, some of the money that you would have paid in tax on your earnings goes into your pension pot rather than to the government.

Threshold income

Threshold income is defined by HMRC - Work out your reduced (tapered) annual allowance - GOV.UK (www.gov.uk)

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.