Fortu Trading Ltd
TERMS OF USE
Version 1.0
09/09/2021
1.1 Fortu Trading Ltd (“We”, “Us”) is a company registered in England and Wales (company number 12804663), with its registered office at Level 39, One Canada Square, E14 5AB, London.
1.2 Through our mobile application and web portal (both referred as “Fortu Portal”), you can invest in preselected by us sets of theme stocks, referred as “Thematic Baskets” or “Baskets”.
1.3 Fortu Trading Ltd is an appointed representative (reference number 956666) of WealthKernel Limited ("hereinafter referred to as "WealthKernel"), company number 09686970, which is authorised and regulated by the Financial Conduct Authority with firm reference number 723719, whose address is at City Place House 55 Basinghall Street, 6th Floor, London, England EC2V 5DU.
1.4 Our Services arranged by Fortu Trading Ltd as an appointed representative and provided by WealthKernel include – Execution and Custody.
1.5 By agreeing to these Terms you agree to become a client of Fortu Trading as well as of WealthKernel, whose Terms of Use are incorporated in these Terms. We will be managing your relationship with WealthKernel.
1.6 We form part of one product offering with Fortu Wealth Ltd, which is a Fortu Portal, available through mobile application and web. Fortu Portal provides Electronic Money Wallets in GBP and EUR, virtual cards and FX (these services are provided by Fortu Wealth Ltd) and an Investment Account where you can use our Services (provided by us, Fortu Trading Ltd). Fortu is a trading name of two entities – Fortu Wealth Ltd and Fortu Trading Ltd. You will have to agree to two sets of Terms to use the services – one covering E-wallets (can be used independently of this Terms) and these Terms covering Investing. To access investment services you need to have a Fortu Account, which means to register with Fortu Portal and accept Fortu Wealth Ltd Terms of Use. Once you have gone through KYC and ID Verification and your account has been approved, upon logging in to Fortu Portal you will be able to access Fortu Investment Account (“Wealth Tab”). To be able to use Investment Products you will need to accept these Terms and provide us with any additional information we may request, including but not limited to your Tax residency and National Insurance Number.
2.1 We provide our clients with the following services:
2.1.1 arranging, through our service provider (WealthKernel), execution and custody services of Thematic Baskets.
2.2 A Thematic Basket (‘Basket’) is a particular set of stocks from one theme or industry chosen by our expert team.
2.3 We are not responsible for, and will not assess, whether the Fortu Thematic Baskets is suitable for you when you apply for the service.
2.4 Please note that we are not in the business of providing investment management services, nor do we provide financial advice to our clients; we will not make recommendations based on your personal circumstances. It will be your responsibility, at all times, to ensure that the Services we offer (including the functionality that we offer and the way(s) in which we deliver the Services), including any changes to the Services, are suitable to your specific needs and circumstances. If our Services do not meet your needs, you should stop using our Services. Should you require financial or investment advice, you should seek advice from an approved investment manager or qualified financial adviser.
2.5 We and WealthKernel will not provide nor be responsible for providing you with any financial, legal or tax advice. You should note that tax treatment depends on individual circumstances and our and your current understanding of applicable law and HMRC practice, which may be subject to change in the future.
2.6 Other than as set out in the preceding clauses, we will not monitor or manage your portfolio on an ongoing basis or otherwise take account of external factors that could impact the performance of your portfolio (such as market movements), even extreme market conditions. As explained in more detail below, we cannot change the constituent funds in your portfolio.
In these Fortu Terms of Use, references to Fortu Investment Account means the interface we provide to access the Services and any other product or service offered by us from time to time.
References to “client”, “you” and/or “your” mean any person who opens a Fortu Investment Account with us.
3.1 These Fortu Terms of Use, together with Schedules (as applicable) and any terms to which these documents refer, will apply to any contract between us relating to our Services (“Terms”).
3.2 These Terms cover Services provided by us and by WealthKernell and by agreeing to it you are entering into agreements with both parties.
3.3 Fortu Terms and WealthKernel Terms are conditional to each other, meaning that the termination of either set of terms will result in the termination of the others.
3.4 Please read these Terms carefully before you apply to open a Fortu Investment Account. We supply our Services and any associated services to you under these Terms. By registering for Fortu Investment Account, you agree that these legally binding Fortu Terms of Use will come into existence between you and us, when we issue a confirmation (whether by email or via in app notification), that your Fortu Investment Account registration has been successful. This Agreement will remain in full force until termination by either party, howsoever terminated. These Terms to be as legally binding upon you as an agreement which has been accepted.
3.5 If you do not agree to any part of these Terms you may not engage with us at any contractual business and must not use the Services available via the app or the web portal for any purpose.
3.6 If you change your mind, you can cancel your Fortu Account (including your Fortu Investment Account and Fortu E-Wallet Services) at any time as per Fortu Wealth Ltd Terms of Use.
3.7 In order for us to provide you with our Services, you must be a UK resident. We shall treat the address which you provide us when signing up to our Services as your permanent residential address for Tax residency purposes.
3.8 Nothing in these Terms requires us to accept your application for Fortu Investment Account and we can refuse your application in our sole discretion.
3.9 Before we open your Fortu Investment Account, we may need to carry out additional checks, including to verify your nationality and residence, in order to comply with UK AML Laws and Regulations. You agree to the carrying out of checks to establish proof of your identity and residence. You agree to provide us promptly with any accurate information and/or documentation we request in order to comply with our legal and regulatory obligations. We reserve the right to use online systems and checks to verify your identity and address. We may request from you an updated information at any time since your Account has been opened.
3.10 The anti-money laundering regulations require us to verify your identity, to gather information as to the purpose and nature of the business which we conduct on your behalf, and to ensure that the information we hold is up-to-date. We use electronic identity verification systems, at the beginning and throughout our relationship with you.
This means your personal information will be shared with third parties, ie the relevant agencies who operate the identity verification systems. In addition, we will verify the validity of your bank account information and this will involve us sharing your personal and financial information with the third party. Their services compare your data against: bank account data, electoral roll, UK Companies House (and this includes the bankruptcy and insolvency register and database of disqualified directors), and other publicly available information such as media reports. Please note that we cannot provide our services to you until you have passed our AML and client checks.
3.11 These Terms will be available at all times via our Website and mobile application, but we also recommend that you download and retain a copy for your reference.
3.12 If you experience any difficulties in using your Fortu Investment Account, you should contact our Support at support@fortu.co.uk.
3.13 These Terms is written and available in English. All our communications with you relating to these Terms, will be in English.
3.14 You acknowledge that we may communicate with you by e-mail and/or SMS and/or via the Fortu App when we provide you with any service notifications or other information about your Fortu Investment Account and therefore you agree that if you change your email address or mobile phone number you will update us immediately via the Fortu App. We cannot be held responsible for any communications that you do not receive due to you not updating your contact details.
3.15 These Terms have no minimum duration period and is intended to continue in place until termination of relationship between you and us, howsoever terminated.
3.16 By opening a Fortu Investment Account with us you agree that we will arrange for WealthKernel to arrange and effect transactions or otherwise deal on your behalf on this basis.
3.17 We will categorise and treat you as a “retail client” as defined by the Financial Conduct Authority (FCA) in the United Kingdom, without any exception. As a result, you will benefit from the regulatory protection afforded by the relevant rules. You may at any time ask us to re-categorise you as a professional client or an eligible counterparty, but it is not our general policy to re-categorise retail clients and we can reject your request. When we refer to the FCA and the FCA Rules we also mean any regulator which may replace the FCA and the rules it may make to regulate our business.
3.18 It should be noted that all reasonable steps have been taken to ensure the content on the Website and the Fortu Investment App is accurate at the time of publication. Therefore, to the extent permitted by law, we shall not be liable for any act or omission in reliance on the information on the Website or Fortu App.
3.19 No provision of these Terms or the contents of the Fortu website or mobile application shall constitute advice to you on taxation, legal, financial or other matters and you should therefore consult your own professional advisers in relation to those matters.
4.1. We offer an Investment Account as a part of Fortu Portal to individual clients residing in United Kingdom (not businesses/companies or any other legal entities). Individual must be:
4.2. Opening investment account within Fortu Platform is subject to your approval for initial account with Fortu Platform as per Fortu Wealth Ltd Terms of Use.
4.3. We may request additional documents or information to support your account opening such as Source of Wealth, which may include but not limited to Payslips, Bank Statements, Investment Account overview.
4.4. You confirm to us that you are not a US Person (as defined by the US Internal Revenue Service).
4.5. We will register your Fortu Investment Account for you on the basis of the information that you have provided to us. You must provide accurate information and tell us of any changes to your information as soon as possible so that our records remain correct.
4.6. If we discover that the information we hold about you is incorrect, we may have to suspend or cancel your Fortu Investment Account until we can establish the correct information, in Instruction to protect you and us.
4.7. To use the Fortu Investment Account, you will need to download the Fortu App via your mobile device. Currently The Fortu App is only supported on Apple iPhones running iOS version 12 or later. We will notify our customers of when Fortu will be available for Android devices.
5.1. Agree to these Terms which govern our relationship.
5.2. You agree that you will use your Fortu Investment Account and issue Instructions at all times in accordance with all applicable laws and regulations. You will, in particular, but without limitation, not: (i) engage in any practice that is considered to be market abuse, (ii) use your Fortu Investment Account or issue any Instructions in connection with any attempt to launder money or avoid applicable sanctions against any person, company or country, or (iii) provide any false or otherwise misleading information in relation to your identity or personal circumstances that we request in Instruction to provide you with an Fortu Investment Account
5.3. You agree that you are not and will not become for the duration this Agreement remains valid, a US person for the purposes of residency, citizenship or tax. If you do become a US person you are required to tell us immediately and your Fortu Investment Account will be terminated in accordance with paragraph 19.
5.4. You shall cooperate with Us and WealthKernel in all matters relating to the Services.
5.5. You shall provide Fortu, WealthKernel with such information and materials as we may reasonably require in Instruction to supply the Services and ensure that such information is true and accurate.
5.6. You shall notify us promptly of any relevant changes to your circumstances or information you provided, including but not limited to residency, nationality, change of name.
5.7. You shall confirm that there is no pending or, to your knowledge, threatened, action, claim or proceeding before any court, tribunal, government body, agency or official, or any arbitrator that purports to affect or is likely to affect, the legality, validity or enforceability against your ability to perform your obligations under these Terms.
5.8. You shall confirm that the investments and cash within your account portfolio are within your complete ownership and free from all liens, charges or any other encumbrances and you will not deal or authorise anyone else to deal in the investments in your account.
6.1 We only accept funds from bank accounts in your name and your Fortu Electronic Money Account. You can either set up a bank transfer manually or through direct open banking integration between our app and your banking app or website. When you make a payment via open banking, your payment will be processed by a third party. Domestic bank transfers within the UK are typically processed within two hours, although it may take longer. We will only start providing you with Services in relation to funds once we have actually received the relevant funds.
6.2 You may only invest amounts which are wholly owned by you and to which no other person has any rights. When determining whether to accept a payment from you, in accordance with our legal and regulatory obligations regarding financial crime, we reserve the right to reject any payments where it is found you are not the beneficial owner of the funds.
SOURCE OF FUNDS
6.3 In Instruction to comply with the Money Laundering Regulations, we may occasionally need to ask for proof that a payment received by Fortu has originated from your Bank Account. We may also ask for evidence that your wealth is from a legitimate source and you are the beneficial owner of the funds. You agree to comply with any request we make in good faith for these purposes.
WITHDRAWALS
6.4 You can withdraw funds at any time by making an Instruction to sell your investments and transferring your funds to your Bank account within our app. Please note it may take up to two business days until your money will be credited to your account.
6.5 If the value of your investment(s) has fallen you may not be able to get back the full amount you have invested. Also, please be aware that we offer no refunds for payments which are due to us for Services provided.
7.1 You can request an instruction to us to either buy or sell a particular product which is made available via the Fortu App. When you buy, you select a product and the amount which you want to invest. Your Instruction will be executed by WealthKernel.
7.2 You can only cancel an Instruction if we and / or WealthKernel consent to it, and you cannot cancel an Instruction once it has been executed. This means it is important to ensure that you enter the details of your Instruction correctly and that you are willing and able to enter into a binding commitment to buy or sell a product when you submit your Instruction. Before submitting an Instruction please make sure you:
- have input the right values;
- are certain that you wish to go ahead with that Instruction;
- understand how this agreement applies to that Instruction;
- are willing and able to bear the risk of any potential loss associated with that Instrument; and
- you understand the risks of investing in that Instrument.
Other restrictions may apply to submitting Instructions dependent upon regulatory requirements and market conditions. These may include, but are not limited to situations such as:
- trading restrictions imposed by regulators on certain instruments;
- trading restrictions imposed by WealthKernel on us; or
- trading restrictions imposed by WealthKernel on us.
7.3 Instructions may only be submitted via the Fortu App.
7.4 In case with Basket product, when you choose the amount you want to invest and a Basket you want to invest to, we equally divide the amount of your investment between all the stocks in the basket, meaning we buy equal percentage of each stock. We do not have control over the prices of each stock in the Basket. Due to the inherent nature of a moving market, indicative prices can change, sometimes rapidly and significantly, and it may not be possible to execute at the price shown on the Fortu App before you place your Instruction.
7.5 You must act on your own behalf and for your own account in relation to all Instructions submitted by you, meaning you are the person that will buy or sell the Baskets. You cannot submit Instructions on behalf of others.
7.6 We, and the WealthKernel, have the final say on whether or not an Instruction submitted by you is accepted. If we or WealthKernel reject an Instruction, we will not have to explain to you why that Instruction has been rejected, but we will notify you if any of your Instructions are rejected. An example of when an Instruction might be rejected is when you do not have sufficient funds in your Fortu Electronic Money Account to pay for that Instruction, or if the acceptance of an Instruction would breach a limit that we have placed on your Account. WealthKernel also maintains various risk limits and tolerances that govern whether or not it will accept an Instruction, and we have no control over such procedures.
7.7 There may also be circumstances in which we are required by a third-party, such as by the underlying market on which an Instrument is listed or by a regulatory authority, to cancel your Instructions. You should also be aware that there may also be instances where we or WealthKernel are required by a third-party to cancel your Positions. In such circumstances, we will seek to notify you of any such request and you agree that you will use all reasonable endeavours to cooperate with us and, to the extent necessary, WealthKernel to comply with any such request relating to the cancellation of your Positions, including in relation to the taking of all actions that may be communicated to you by us to comply with any request from a third-party in relation to your Positions.
7.8 If we accept your Instruction, we will transmit it onto WealthKernel for execution or onward transmission for execution. It is important for you to note that we are not responsible for the execution of the Instructions that you submit via the Fortu App but we have a duty to act in your best interest when we transmit your Instruction to another entity such as WealthKernel for execution or onward transmission. We are responsible for ensuring that any entity which we have selected for execution or onward transmission delivers the best possible result to our clients on a consistent basis.
7.9 Once we have transmitted your Instructions to WealthKernel, we cannot control when and how WealthKernel will execute your Instructions. By opening an Account, you are deemed to consent to our Order Execution Policy available at our website – www.fortu.co.uk.
7.10 WealthKernel will be subject to certain rules and regulations relating to how it executes your Instructions. You can find further information on how WealthKernel will execute your Instructions in Schedule 6 of these Terms. You should be aware that WealthKernel may execute your Instructions outside of a regulated market, multilateral trading facility or organised trading facility, and by accepting this agreement, you expressly consent to the execution of your Instructions in such circumstances.
7.11 Whilst WealthKernel will do their best to execute your Instruction as quickly as they can, the prices of Instruments can move quickly. This means that the price at which you submitted your Instruction may not be the price at which your Instruction is in fact executed. In some circumstances, your Instruction may be executed at a "better" price and in other circumstances it may be executed at a "worse" price than the price quoted to you via the Fortu App. If your Instruction is executed at a "worse" price than the price of the Instrument at the time you submitted the Instruction, we have no liability to you to provide you with the difference in those prices.
7.12 When executing transactions on your behalf, all sufficient steps are taken to obtain the best possible result on a consistent basis, taking into account relevant factors, including: price, cost, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.
7.13 When you submit an Instruction to buy an Instrument, an estimated amount you are required to pay in relation to that Instruction is blocked in your Fortu E-Money Sub Account immediately on submission of the Instruction; the exact amount is then payable when the Instruction is executed.
7.14 It is important for you to note that, in order to open an Investment Account, you must also have a Fortu Electronic Money Account, as the funds deposited in your Fortu Electronic Money Account will be used to pay for your Instructions.
7.15 You acknowledge and agree that we have the right to procure a deduction of value from your Fortu E-Money Sub Account so as to effect payment for your Instructions if we need to. This may include any additional amounts required to settle trades in the event an Instruction is ultimately executed at a different price to the indicative price quoted i.e. in the event of a market move following transmission of an Instruction
7.16 In the event that you sell a particular Basket and there are proceeds due to you from that sale, we shall procure that your Fortu Electronic Money Sub Account is credited with the value of those profits. However, you should be aware that, whilst your profits may be credited to your Fortu Electronic Money Sub Account, you will not be able to withdraw those proceeds until such time the transaction arising as a result of your Instruction to sell the relevant Instruments has settled. In most underlying markets, settlement of the Instruments available via the Fortu App typically occurs within two trading days.
8.1 The fees that we charge for the provision of the Services, as well as the manner in which we charge those fees, are described below and duplicated in a separate fees section on our mobile application or our Website. The amount of our fees, as well as the nature of our fees, may change from time to time and we will notify you of any such changes by publication on mobile application or our Website such changes to take effect 30 days from publication.
8.1.1 Fortu Investment Account is a part of Fortu Account which includes Fortu E-Money Account and is charged as a part of Fortu Membership, guarded by Fortu Wealth Terms of Use. No additional fees apply.
8.1.2 No fees charged on custody and execution.
8.1.3 Additional fees may apply on products which include ETFs, we will let you know of it before you make an investment.
8.2 WealthKernel does not charge you directly for their Services, rather they provide their services on the basis that we pay their fees on your behalf (all fees are included in your Membership fees. Please note that it is possible that taxes or costs may exist in addition to those which we pay or impose.
8.3 In the event of non-payment or late payment of fees, you agree that we may use, sell, retain or set-off assets held by us on your behalf. We will only exercise this right if we have asked your Introducer for payment in writing and the sum is outstanding for 30 calendar days from the date of our request.
We reserve the right to change, suspend or discontinue any aspect of the Services at any time, including hours of operation or availability of the Services or any Services feature, without notice and without liability.
If you believe that an Instruction has been incorrectly executed or was not authorised by you, you must inform us as soon as possible, via the member support function on the Fortu Portal or by emailing support@fortu.co.uk (available 24 hours a day).
11.1. We shall not be liable to you for any:
(a) delay or failure to perform our obligations under these Terms (including any delay in Instruction execution) by reason of any cause beyond our reasonable control including but not limited to any action or inaction by you or any third party, any Force Majeure Event, bank delay, investment platform delay, postal delay, failure or delay of any fax or electronic transmission, any accident, emergency, act of god or any abnormal or unforeseeable circumstances; or
(b) consequential or indirect loss (such as loss of profits or opportunity) you may incur as a result of us failing to perform our duties under a Fortu Investments.
11.2. You are responsible for all liabilities, financial or otherwise, incurred by Fortu or a third party caused by or arising out of your breach of these Terms, your use of the Services, and any use of your Fortu Investment Account. You agree to reimburse Fortu or a third party for any and all such liability, to the extent not prohibited by Applicable Law.
11.3. You remain liable under these Terms in respect of all charges and other amounts incurred through the use of your Fortu Investment Account at any time, irrespective of termination, suspension or closure.
11.4. You are responsible for understanding and complying with any and all laws, rules and regulations of your specific jurisdiction that may be applicable to you in connection with your use of the Services, including but not limited to, those related to taxes or foreign currency transactions. You are liable to the state and other subjects for fulfilment of all tax obligations independently. Fortu shall not be responsible for the execution of tax obligations, or calculation and transfer of taxes applied you.
11.5. You agree to defend, reimburse or compensate us (known in legal terms to “indemnify”) and hold Fortu, our third-party providers, our employees or agents who are authorised to act on our behalf harmless from any claim or demand (including legal fees) made or incurred by any third party due to or arising out of your or agents’ breach of these Terms, breach of any law and/or use of the Services.
11.6. Nothing in these Terms shall operate to exclude liability for death or personal injury or for fraud or fraudulent misrepresentation or for any liability that cannot be excluded or amended by law.
11.7. In no event shall Fortu be liable for loss of profits or any special, incidental or consequential damages arising out of these Terms or otherwise in connection with the Services, howsoever arising.
11.8. To the extent permitted by Applicable Law, Fortu is not liable, and you agree not to hold it responsible, for any damages or losses (including, but not limited to, loss of money, goodwill, or reputation, profits, or other intangible losses or any special, indirect, or consequential damages) resulting directly or indirectly from:
(a) your inability to use the Services for whatever reason;
(b) delays or disruptions in the Services;
(c) viruses or other malicious software obtained by accessing the Website or any associated site or service;
(d) glitches, bugs, errors, or inaccuracies of any kind in the Services;
(e) the content, actions, or inactions of third parties;
(f) a suspension or other action taken with respect to your Fortu Account;
(g) your need to modify practices, content, or behaviour, or your loss of or inability to do business, as a result of changes to these Terms or Fortu’s policies; or
(h) illegal actions and operations of third persons performed using counterfeited and/or illegal documents or illegally received data.
12.1. You agree and consent to electronic receipt of all notices and communications that we provide. We will normally provide notices and communication to you through sending a message to your Fortu Portal. We may also communicate with you via post to the addresses, via email to the email addresses, via SMS and phone call to the mobile phone numbers provided to Fortu, as same are updated from time to time. This includes any communication concerning required notifications under the payment service regulations like updates to these Terms or notifications about security breach of data.
12.2. It is your responsibility to ensure that you:
(a) log onto the Fortu Portal regularly;
(b) regularly review the Fortu Portal, the Website, registered email address and SMSs and open and review communications that we deliver through those means;
(c) make sure that you have compatible device to access Fortu Portal and internet connection and phone signal to receive communications that we deliver through above mentioned means;
(d) ensure that contact information stored on the Fortu Portal is up to date.
12.3. We on behalf of ourselves shall contact you via your mobile phone, the details of which are contained on the Fortu Portal, in the event of suspected fraud or security threats, unless we suspect that your mobile phone has been the subject of a security breach in which case we shall contact you by another method that we reasonably believe to be secure.
12.4. You may contact us, in accordance with these Terms, via the member support function on the Fortu Portal, by emailing support@fortu.co.uk or by posting a letter to Level 39, One Canada Square, London, England, E14 5AB.
12.5. Any notice or communication shall be deemed to have been received:
(a) if delivered in person, on signature of a delivery receipt or at the time the notice is left at the proper address;
(b) if sent by post, at the time of delivery;
(c) if sent by next Working Day delivery service at the time recorded by the delivery service; and
(d) if sent via the Fortu Portal including the member support function, SMS, email or phone call, at the time of transmission.
13.1. Each of the parties to these Terms will comply with all applicable requirements of the Data Protection Legislation. For the purposes of these Terms, “Personal Data” and “Data Controller” shall have the meaning given by the Data Protection Legislation.
13.2. In addition to the Terms set out here, you acknowledge and confirm your continuing agreement to our Privacy Policy. If you do not agree with these conditions you may not continue to engage in any contractual business between us and should not use our Services.
13.3. The processing of your data is governed by these Terms including our Privacy Policy, which is available through our website.
13.4. All personal information and financial information (called personal data) will be processed in accordance with our Privacy policy.
13.5. We act as Data Controller with respect to your Personal Data.
14.1. The provisions of this clause shall not apply to any Confidential Information that:
(a) is or becomes generally available to the public (other than as a result of its disclosure by the Fortu or its Representatives in breach of this clause);
(b) was available to Fortu on a non-confidential basis before disclosure by Fortu;
(c) was, is or becomes available to Fortu on a non-confidential basis from a person who, to Fortu’s knowledge, is not bound by a confidentiality agreement or is otherwise prohibited from disclosing the information to Fortu; or
(d) the parties agree in writing is not confidential or may be disclosed; or
(e) is developed by or for the receiving party independently of the information disclosed by the disclosing party.
14.2. Fortu shall keep your Confidential Information confidential and shall not:
(a) use such Confidential Information except for the purpose of exercising or performing its rights and obligations under or in connection with this agreement (the “Permitted Purpose”); or
(b) disclose such Confidential Information in whole or in part to any third party, except as expressly permitted by this clause 14.
14.3. Fortu may disclose your Confidential Information to its Representatives who need to know such Confidential Information for the Permitted Purpose and to its Partners for the purpose of improving its or its Partners business processes, provided that:
(a) it informs such Representatives and/or Partners of the confidential nature of the Confidential Information before disclosure; and
(b) it procures that its Representatives and/or Partners shall, in relation to any Confidential Information disclosed to them, comply with obligations which are similar to those set out in this clause; and
(c) at all times, it is liable for the failure of any Representatives or Partners to comply with the obligations set out in this clause 14.
14.4. Fortu may disclose Confidential Information to the extent such Confidential Information is required to be disclosed by law, by any governmental or other regulatory authority or by a court or other authority of competent jurisdiction.
14.5. On termination of this agreement, Fortu shall keep your Confidential Information safe and shall not be under an obligation to return Confidential Information to you or delete the Confidential Information it holds unless required to do so by law.
14.6. The provisions of this clause 14 shall continue to apply after termination of this agreement.
15.1. The Fortu Investment Platform and the Website and all intellectual property rights contained therein, including but not limited to any content, are owned or licenced by us. Intellectual property rights mean rights such as: copyright, trademarks, domain names, design rights, database rights, patents and all other intellectual property rights of any kind whether or not they are registered or unregistered (anywhere in the world). Fortu’s intellectual property includes all logos related to the Services. In addition, all page headers, custom graphics, button icons, and scripts are service marks, trademarks, and/or trade dress of Fortu. You may not copy, imitate or use Fortu’s intellectual property rights without prior written consent.
15.2. We reserve all of our rights in any intellectual property in connection with these Terms. This means, for example, that we remain owners of them and are free to use them as we see fit.
15.3. Nothing in these Terms grants you any legal rights in the Fortu Investment Platform, and/or the Website, other than as set out in these Terms. You agree not to adjust or try to circumvent or delete any notices contained on the Fortu Investment Platform (including any intellectual property notices) and in particular in any digital rights or other security embedded or contained within the Fortu Investment Platform.
16.1. We are committed to providing you with a first class service. If anything does go wrong, we aim to put it right quickly and efficiently. If we cannot resolve a problem immediately, we will contact you to tell you what we are doing about it. If you wish to complain about any aspect of our service, please contact us by emailing support@fortu.co.uk and we will provide you with a summary of our complaints process and procedures.
16.2. If we do not deal with your complaint to your satisfaction, you can refer it to the Financial Ombudsman Service’s jurisdiction, be able to take your complaint to the Financial Ombudsman Service (FOS) details of which are available on the following link www.financial-ombudsman.org.uk/faq/complain.html. You can also call the FOS on 0300 123 or email at complaint.info@financial-ombudsman.or.uk or write to Financial Ombudsman Service Exchange Tower London E14 9SR Tel: 0800 023 4567.
16.3. Please note that complaints relating to the execution of an instruction will be made against WealthKernel and subject to WealthKernel Terms, although Fortu may be handling complaint on WealthKernel’s behalf.
16.4. Fortu does not have a relationship with an alternate dispute resolution provider to refer non-eligible complainants to (i.e. who cannot be referred to the Financial Ombudsman Service). All such complaints will be handled by Fortu.
17.1. These Terms may be amended unilaterally by us, by providing you with one months notice. These changes will be deemed to have been accepted by you where you do not, before the proposed date of the entry into force of the changes, notify us that you do not accept the changes. If you do notify us that you do not accept the changes, your notification will be deemed to be a notice that you wish to close your Fortu Investment Account and terminate these Terms on the date upon which the changes are due to take effect. This clause also applies to WealthKernel Terms.
17.2. We may make changes to these Terms for the following reasons:
(a) Changes to relevant law or regulation, or a decision of the Financial Ombudsman Service.
(b) Changes to the way we are taxed (including the requirement to pay any government or regulatory levy), or you and your product are taxed.
(c) Changes required by any regulatory or tax authority or industry guidance or codes of practice.
(d) Changes in the way investment markets work, including changes in investment/securities dealing or administration which may affect your account.
(e) To make the Terms easier to understand and any other changes that are not detrimental to you.
(f) If it becomes impossible or impractical, in our reasonable opinion, to carry out any of the Terms as a result of circumstances beyond our reasonable control.
(g) To reflect changes to our services or the manner in which we provide them to you.
(h) To reflect changes to the level of charges applicable to your account.
(i) To reflect changes to the range of investments we make available to you from time to time.
(j) To reflect improvements to our online service that technological, service or propositional enhancements have allowed us to make.
17.3. If any part of these Terms is inconsistent with any regulatory requirements then we shall not rely on that part but treat it as if it did actually reflect the relevant regulatory requirement.
17.4. We shall not be obliged to give you advance notice of certain changes, such as changes to, or launch of, any product or service that shall have no adverse effect on you.
18.1. The Services are provided on an “as is”, “as available” basis and without any representation or warranty, whether express, implied or statutory. Neither Fortu nor any of the officers, directors, agents, joint venturers, employees and suppliers of Fortu, make any representation or warranty of any kind whatsoever for the Services or the content, materials, information and functions made accessible by the Services used on or accessed through the Services, or for any breach of security associated with the transmission of sensitive information through the Services.
18.2. Fortu does not warrant that the Services will be uninterrupted or error free. Fortu shall not be responsible for any Service interruptions, including, but not limited to, system failures or other interruptions that may affect the receipt, processing, acceptance, completion or settlement of Fortu Instruction or the Services.
18.3. Whilst we shall always aim to give you at least two months’ notice of any changes required by law or regulation, there may be exceptional instances where this may not be possible. In such circumstances we shall give you as much notice as reasonably possible.
19.1. Fortu Investment Account can not be terminated on its own, however you may terminate Fortu Account as per Fortu Wealth Ltd Terms of Use. By doing this, both your Fortu Investment Account and Fortu E Wallet Accounts will be closed. It is your responsibility to make an Instruction to sell your investments before terminating the account. If you still hold a Portfolio with us, we will sell your investments within 3 business days (on which the relevant markets are open) of receiving your request to terminate your Fortu Accounts or our decision to exit you from the platform. Termination of the Services is free of charge.
19.2. To terminate the contract please contact us by emailing to support@fortu.co.uk or contacting your Relationship Manager via Fortu App or Web Portal.
19.3. Fortu, in its sole discretion, may terminate these Terms at any time, by giving you two months’ notice. The termination of these Terms will not affect any of our rights or your obligations arising under these Terms.
19.4. If the value of your investments has fallen you will not get back the full amount you invested. Also, please be aware that we offer no refunds for payments due to us for Services provided.
19.5. If these Terms are terminated, WealthKernel Terms will automatically be terminated.
19.6. These Terms apply for as long as your Fortu Investment Account is open with us.
20.1. These Terms shall be governed by the laws of England & Wales and any claim or dispute under these Terms shall be subject to the non-exclusive jurisdiction of the courts of England & Wales.
20.2. These Terms do not intend to confer any benefit on any third party and no third party shall have the right to enforce these Terms under the Contract (Rights of Third Parties) Act 1999 or otherwise.
20.3. You may request and we shall provide a copy of these Terms at any time prior to the termination of these Terms by contacting us via member support in your Account or by emailing support@fortu.co.uk.
20.4. It is your responsibility to determine what, if any, taxes apply to the transactions you make, and it is your responsibility to collect, report and remit the correct tax to the appropriate tax authority. We are not responsible for determining whether taxes apply to your Fortu Instruction, or for collecting, reporting or remitting any taxes arising from any Fortu Instruction. You hereby agree to comply with any and all applicable tax laws in connection with your use of the Services, including without limitation, the reporting and payment of any taxes arising in connection with Fortu Trades made through the Services.
20.5. If we fail to enforce any of our rights under the Terms, or Applicable Laws, it shall not be deemed to constitute a waiver of such right. You may not transfer or assign or sell any rights or obligations you have under these Terms or otherwise grant any third party a legal or equitable interest over your Fortu Investment Account without Fortu’s prior written consent. Fortu reserves the right to transfer or assign these Terms or any right or obligation under these Terms at any time.
20.6. Unless stated otherwise in these Terms, if any provision of these Terms is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall be enforced.
20.7. We do not provide advice. We contract on an execution only basis. Information such as calculations and forecasts, may be provided to you from time to time, for example via the Fortu Platform or the Website, but this should not be deemed to be advice either upon the merits of a proposed Fortu Instructions or upon any other matter. All calculations, forecasts and other information should be independently checked and verified. Before entering into any Fortu Instruction, you must make your and their own independent assessment as to whether it is appropriate to enter into a Fortu Instruction based upon your own judgment and upon such advice from such advisers as you consider necessary. It is an express term of every Fortu Instruction which you enter into with us that you are not relying upon any communication (written or oral) made by us as constituting advice about or a recommendation to enter into such Fortu Instruction.
20.8. We reserve the right to change or amend a stock or basket under the following circumstances:
a) if a company has been bought out
b) if a company is no longer trading
c) if there is a stock split
d) if a company changes its trading name
20.9. The schedules form part of these Terms and shall have effect as if set out in full in the body of these Terms. Any reference to these Terms includes the schedules.
20.10. Unless the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.
20.11. Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders.
20.12. These Terms shall be binding on, and endure to the benefit of, the parties to these Terms and their respective personal representatives, successors and permitted assigns, and references to any party shall include that party’s personal representatives, successors and permitted assigns.
20.13. A reference to a statute or statutory provision is a reference to it as amended, extended, re-enacted or replaced from time to time.
20.14. A reference to writing or written includes email and the member support function on the Fortu Platform.
20.15. Any obligation on a party not to do something includes an obligation not to allow that thing to be done.
20.16. These Terms shall be concluded and interpreted in the English language. If these Terms are translated into another language, it is for reference purposes only. All communications between the parties shall be in the English language.
20.17. Any reference to an English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal concept or thing shall, in respect of any jurisdiction other than England, be deemed to include a reference to that which most nearly approximates to the English legal term in that jurisdiction.
20.18. A reference to these Terms or to any other agreement or document referred to in these Terms is a reference to these Terms or such other agreement or document as varied or novated (in each case, other than in breach of the provisions of these Terms) from time to time.
20.19. Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.
20.20. We will, and will use all reasonable endeavours to procure that our officers, employees, agents, sub-contractors and any other persons who perform services for or on our behalf take all such measure reasonably available to prevent the risks of modern slavery arising in our supply chain.
21.1. You will ensure that neither you, nor any persons acting on your behalf in connection with this Terms, shall by any act or omission commit, cause, facilitate or contribute to the commission by any person of a tax evasion offence or facilitation of tax evasion offence. For these purposes, a tax evasion offence includes cheating a public revenue authority or being knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of tax and tax includes duties and social security contributions.
21.2. You will not do or omit to do any act or thing which constitutes or may constitute an offence under or breach of the Bribery Act 2010 or any other applicable anti-corruption legislation, or which would cause us to breach such legislation.
21.3. You shall as soon as reasonably practicable give us written notice upon a breach, or suspected breach, of any of your obligations in relation to this clause 21, and on your becoming aware of any allegation, investigation, evidence or report relating to a breach or possible breach of any of these requirements set out in this clause 21.
21.4. Words and expressions given a particular meaning in the Regulations (in their latest version from time to time, and including any waivers or dispensations given, except as expressly set out herein) shall have such meanings in these Terms (unless it expressly states otherwise).
21.5. We will, and will take reasonable steps to ensure we and our partners will:
21.5.1 not do or omit to do any act or thing which constitutes or may constitute a Prohibited Act;
21.5.2 without prejudice to Clause 21.4 not do or omit to do any act or thing which causes or may cause the other party to be guilty of an offence under section 7 of the Bribery Act (or would or may do so if the other party was unable to prove that it had in place Adequate Procedures designed to prevent persons associated with it from undertaking such conduct);
21.5.3 have, and comply with, Adequate Procedures;
21.5.4 from time to time, at the reasonable request of the other party, confirm in writing that it has complied with its undertakings under Clauses 21.5.1 to 21.5.3 inclusive and will provide information reasonably requested by the other party in support of such compliance; and
21.5.5 promptly give written notice to the other party upon a breach, or suspected breach, of any of its obligations under Clauses 21.4 to 21.6.
21.6. If we or to our actual knowledge, acting reasonably, anyone acting on our behalf commits any Prohibited Act in relation to these Terms or any other contract with you or in relation to any matter or activity pertaining to any public body in the United Kingdom, we shall promptly inform you of the occurrence of such Prohibited Act and render all such assistance to you as you may reasonably require in investigating such acts.
DEFINITIONS
“Applicable Laws”means the laws of Law of England and Wales, Scotland and Northern Ireland, whether by the European Union (Withdrawal) Act 2018 or any other legislation relating to the withdrawal of the UK from the EU.
“Basket”is a particular set of stocks from one theme or industry, selected by Fortu."Bribery Act"means the Bribery Act 2010.
“Confidential Information”means all confidential information (however recorded or preserved) disclosed by you or one of your Employees or beneficial owners or Fortu Portal Users (as defined below) to Fortu or one of its Representatives whether before or after the date of this agreement in connection with your Fortu Account, including but not limited to:
(a) the fact that you are a Fortu customer;
(b) details of your Fortu Account View-Only Users and Fortu Portal Users;
(c) details of all Fortu Transactions you enter into pursuant to this agreement including the amount, date, currency and Beneficiary of such Fortu Transaction;
(d) the balances of the Electronic Money you hold with Fortu in your various Fortu E-Money Accounts;
(e) any information that would be regarded as confidential by a reasonable business person relating to:
your business, affairs, Customers, suppliers, or plans, intentions, or market opportunities of the disclosing party; and your operations, processes, product information, know-how, designs, trade secrets or software.
“Control”means the possession by any person(s) or nominee(s) directly or indirectly of the power to direct or cause the direction of another person and “change of control” is construed accordingly.
“Cookie Policy”means the cookie policy relating to the Website which can be found at https://fortu.co.uk/privacy
“Data Protection Legislation”means the UK Data Protection Legislation and any other European Union legislation relating to personal data and all other legislation and regulatory requirements in force from time to time which apply to a party relating to the use of personal data (including, without limitation, the privacy of electronic communications); and the guidance and codes of practice issued by the relevant data protection or supervisory authority and applicable to a party.
“EUR”means euro, being the currency of members of European Union who have adopted it.
“FCA”means the Financial Conduct Authority of the United Kingdom whose address is 12 Endeavour Square, London, E20 1JN.
“Fortu”“we,” “us,” or “our” means Fortu Trading Ltd, the details of which are set out in clause 1.1.
“Fortu App” means a mobile application through which Fortu Portal can be accessed.
“Force Majeure Event”means an event which is beyond the reasonable control of an affected party including without limit any market disruption, acts or restraints of government(s) or public authorities, war, revolution, strikes or other industrial action, fire, flood, natural disaster, explosion, terrorist action, the suspension or limitation of trading by any execution venue, or any breakdown, failure, defective performance or malfunction of any telecommunications settlement or other equipment or systems.
“Fortu Account”means your general account with us which consists of Fortu E-Wallet Account and Fortu Investments Account.
“Fortu Electronic Money Account”means an account provided by Fortu Wealth Ltd to store and transact with E-Money, subject to Fortu Wealth Terms.
“Fortu Sub Account” means E-Money Account on Fortu Portal designated to funds for investment purposes.
“Fortu Investment Account”means an account provided by Fortu Trading Ltd through which we provide our Services stated in these Terms.
“Fortu Portal”means web and application view of Accounts where client can use E-Money Services as per Fortu Wealth Terms and Investment Services described in these Terms.
“Fortu Portal User”means you, an account holder.
“GBP”means pounds sterling, being the currency of the United Kingdom.
“Instruction”means an order to buy or sell a chosen product available at Fortu.
“Investment Products”means Fortu Thematic Baskets or other investment products offered through Fortu.
"Modern Slavery"means the applicable anti-slavery and human trafficking Laws, including the Modern Slavery Act 2015.
“Partner”means any of Fortu’s business partners including WealthKernel and any third party providers which are associated with your Fortu Account.
“Permitted Purpose”means any activity or process to be undertaken or supervised by a Staff member of Fortu during the term of this Agreement, for which purpose authorised disclosure of the your Confidential Information or Intellectual Property is a prerequisite in Instruction to enable such activity or process to be accomplished.
“Portfolio”means all kinds of investments held by you through Fortu Investments Account.
“Privacy Policy”means our privacy policy which can be found at https://www.fortu.co.uk/privacy.
"Prohibited Act"means:
(i) directly or indirectly offering, promising or giving any person working for or engaged by us a financial or other advantage to:
(a) induce that person to perform improperly a relevant function or activity; or
(b) reward that person for improper performance of a relevant function or
activity;
(iii) directly or indirectly requesting, agreeing to receive or accepting any financial or other advantage as an inducement or a reward for improper performance of a relevant function or activity in connection with these Terms; or
(iv) committing any offence:
(A) under anti-bribery laws, being any and all statutes, statutory instruments, bye-laws, orders, directives, treaties, decrees and laws ( contract with us; or
(v) defrauding, attempting to defraud or conspiring to defraud us.
“Representatives”means, in relation to a party, its employees, officers, representatives and advisers.
“Security Code”means the security code including any number or authorisation code that each Fortu Portal User uses to obtain access to the Fortu Portal.
“Services”means the execution and custody services arranged by Fortu, provided to you by Wealth Kernel Limited.
“Terms”means these terms and conditions, the Website Terms, the Cookie Policy, the Privacy Policy and the Website Acceptable Use Policy.
“Tax Evasion Offences“means
(i) any offence of cheating the UK or a foreign public revenue;
(ii) any offence under the law of any part of the United Kingdom consisting of being knowingly concerned in, or in taking steps with a view to the fraudulent evasion of tax or in the facilitation of the evasion of tax; and
(iii) any other equivalent offences under the laws of other jurisdictions.
“Third Party”means a person other than you, us or Wealth Kernel Limited.
“UK Data Protection Legislation”means all applicable data protection and privacy legislation in force from time to time in the UK including the General Data Protection Regulation ((EU) 2016/679); the Data Protection Act 2018; the Privacy and Electronic Communications Directive 2002/58/EC (as 46 updated by Directive 2009/136/EC) and the Privacy and Electronic Communications Regulations 2003 (SI 2003/2426) as amended and such term shall include any United Kingdom General Data Protection Regulation.
“Website Acceptable Use Policy”means the website acceptable usage policy which can be found on our Website.
“Website Terms”means the terms and conditions regarding the use of our Website which can be found on our Website.
“Working Day”means a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.
“You” or “your”means you being the individual, who has agreed to these Terms to use the Services.
Schedule 1 WealthKernel Customer Special Terms CustodyYOU HAVE A RELATIONSHIP WITH WEALTHKERNEL BECAUSE YOU HAVE AN ACCOUNT WITH US.
1. RELATIONSHIP WITH WEALTHKERNEL1.1 We have entered into an agreement (Wealthkernel Agreement) with Wealthkernel Limited, company number 09686970, registered office City Place House 55 Basinghall Street 6 th Floor London England EC2V 5DU, (“Wealthkernel”), on behalf of ourselves and each of our customers (Customers) whereby Wealthkernel has agreed to provide clearing and settlement, safe custody and associated services for our Customers (Customers) to use and safe custody services. Wealthkernel may also provide additional services such as investment dealing services as we may from time to time agree with Wealthkernel.
1.2 The Wealthkernel Agreement covers us and you as one of our Customers. When you become a Customer by signing our application form, you will also accept and be bound by the terms of the Wealthkernel Agreement. It is important for you to understand that this means you will be both our Customer and also a Customer of Wealthkernel.
1.3 Wealthkernel is authorised and regulated by the Financial Conduct Authority (FCA) which is at 12 Endeavour Square, London E20 1JN.
1.4 In consideration of Wealthkernel making their services available to you, you agree that:
1.4.1 we are authorised to enter into the Agreement on your behalf as your agent;
1.4.2 you are bound by the terms of the Wealthkernel Agreement as summarised in this Schedule and acknowledge that the Wealthkernel Agreement constitutes a contract between you and ourselves and also between you and Wealthkernel;
1.4.3 we are authorised to give instructions to Wealthkernel on your behalf (as provided for in our terms of business (Terms) and the Agreement) and to provide information concerning you to Wealthkernel and Wealthkernel shall be entitled to rely on any such instructions or information without further enquiry;
1.4.4 Wealthkernel is authorised to hold cash and investments on your behalf and is authorised to transfer cash or investments from your account to meet your settlement or other obligations to Wealthkernel.
1.5 Wealthkernel will not provide you with investment advice nor give you advice or offers any opinion regarding the suitability or appropriateness (as appropriate) of any transaction or order and relies on information provided to it by us in respect of all such matters. In the same way we are not responsible for Wealthkernel ’s actions, omissions or any obligation they may owe you under the FCA Rules or the regulatory system.
2. WHAT ARE YOUR OBLIGATIONS?2.1 To the extent relevant to the service we provide, to enable us to provide you with a proper service, we require you to do the following for us:
• agree these Terms which govern our relationship;
• confirm that you have not supplied us with information in your suitability questionnaire or otherwise which is inaccurate or misleading;
• notify us promptly of any change to the information supplied by you to us;
• supply us with all information, documentation or copy documentation that we require in order to allow us to carry out our account opening procedures;
• provide us with any additional information which may be reasonably required in order that we can fulfil our legal, regulatory and contractual obligations;
• confirm that the investments and cash within your account portfolio are within your complete ownership and free from all liens, charges and any other encumbrances;
• not, except through us, deal, or authorise anyone else to deal in the investments in your account; and
• undertake to sign and/or produce, by the time we ask you to, any documents we need to enable us to carry out our duties on your behalf.
3. COMMUNICATION AND INSTRUCTIONS3.1 Wealthkernel shall only accept instructions concerning your account(s) from us and not directly from you, unless a separate specific agreement has been made relating to instructions, (including such further mandate and/or indemnities as Wealthkernel may require). Unless we notify Wealthkernel in good time in writing to the contrary to prevent the processing of any instructions, Wealthkernel shall be entitled to rely upon and act in accordance with any instruction which Wealthkernel believes in good faith to have been given by us or our agents on your behalf. Wealthkernel reserves the right to take such action as it considers appropriate, in accordance with our agreement with them. Wealthkernel will not be required to verify or clarify any instruction received unless they believe they need to. Wealthkernel will not be responsible for any delays or inaccuracies in the transmission of any instructions or other information due to any cause outside Wealthkernel ’s reasonable control.
3.2 Wealthkernel may, in its absolute discretion, refuse to accept any order or other instruction for your account(s) held through us. Wealthkernel will advise us of its decision and may advise us of the reason for its decision unless prevented from doing so by law, Court order or instruction by the FCA.
3.3 You should direct all enquiries regarding your account to us and not to Wealthkernel.
3.4 Any communications (whether written, oral, electronic or otherwise) between you, us and/or Wealthkernel shall be in English.
3.5 We will communicate with you in English by email. You may communicate with us in English by email, in accordance with procedures notified to you by us (including security procedures and use of passwords).
3.6 You accept that we are deemed to have received any email correspondence at the time we access it. You accept that there may be a delay in responding to correspondence received via email. You also acknowledge and accept the risks inherent in email, particularly of its unauthorised interception and of its not reaching the intended recipient.
3.7 Although we take all reasonable care to ensure all electronic communications and attachments we send to you are free from any known virus or bug, we will not be responsible for any loss or damage resulting from any attack by a third party on our systems, any computer virus or any other malicious or technologically harmful material that may infect your computer equipment, computer programs, data or other material due to your use of our service.
3.8 We will communicate with a third party, who you authorise, at the address(es) you notify us in writing. As long as we act reasonably you authorise us to rely on instructions by whatever means transmitted which appear or purport to be sent by you or a third party authorised by you.
3.9 We may record and monitor conversations we have with you, and we will keep a record of all communications for as long as required by law or we feel appropriate.
3.10 If you authorise us to accept the instructions of a person not signed up to this agreement, we will do so until we receive notice to the contrary from you. The same rules as above apply to instructions received from this authorised person as they do to instructions received from you and you must ensure that your authorised third party complies with these rules.
4. WHEN MAY WE NOT ACT ON YOUR INSTRUCTIONS?4.1. We reserve the right not to act on your instructions if:
4.1.1 to do so may involve us or you in a breach of legal and/or regulatory requirements; or
4.1.2 we believe on reasonable grounds that to do so would be impracticable or against your interests; or
4.1.3 to do so would run the risk of us suffering financial loss
We will endeavour to advise you promptly if such circumstances arise, subject to our obligations under applicable law and regulation.
5. CUSTODY5.1 Wealthkernel will register your investments either:
• in an account designated with your name, if this has been requested by us; or
• in the name of our nominee specified in the Wealthkernel Agreement.
5.2 All investments held in custody will be pooled and allocated between Customers in accordance with the FCA Rules in particular the FCA custody rules, as we tell Wealthkernel. Accordingly, individual entitlements may not be identifiable by separate certificates, documents of title or entries on the issuers register. In the event of an irreconcilable shortfall following a default by any custodian or any third party holding or delivering your investments, you may not receive your full entitlement and you may share in any shortfall on a pro rata basis with other Customers. If you need more information on this please let us know.
5.3 Wealthkernel will be responsible for receiving and claiming dividends and interest payments to be credited to your account held through us. Wealthkernel will also credit any other payments received for your interest to your accounts with us. All dividends, interest and commission credited to your account or paid to you will be net of any withholding tax and other deductions required to be made by Wealthkernel and/or the payee in accordance with applicable legal or regulatory requirements. Wealthkernel will provide details of all such deductions required to be made by it and will pass on such information in relation to such deductions by others as it may receive. We will be responsible for any costs and expenses Wealthkernel may incur in receiving and claiming dividends, interest payments and any other payments. Wealthkernel, its nominee and any relevant custodian will not be responsible for reclaiming any withholding tax and other deductions but nonetheless may do so if we ask them to.
5.4 Wealthkernel shall not be responsible for informing you or us of any Corporate Actions or events concerning investments held in custody including take-over offers, capital reorganisations, company meetings, conversion or subscription rights but will nevertheless do so, so far as reasonably practicable. Wealthkernel will take up or participate in such events as instructed by us provided that such instructions are received within such time as Wealthkernel may stipulate. All entitlements relating to Corporate Actions in connection with investments held in pooled accounts will be allocated as far as is reasonably possible on a pro-rata basis, however, Wealthkernel may if this is not possible adjust the allocation of entitlements in such a way as appears to them to achieve a fair treatment for all participants in the pool.
5.5 Wealthkernel may appoint agents, nominees and custodians (whether in the United Kingdom or overseas), to hold investments held in custody. Wealthkernel may also appoint sub-custodians (including sub-custodians overseas) being qualifying custodians for the purposes of the FCA Rules, to hold investments for your account or us (as the case may be) on such terms as Wealthkernel considers appropriate.
5.6 Wealthkernel will exercise due skill, care and diligence in the selection of agents, nominees and custodians and before nominating a custodian it will undertake a risk assessment of that custodian in accordance with the FCA Rules. Wealthkernel may from time to time notify us of its arrangements for holding securities in its own name or the name of its nominees and by accepting the terms of the Wealthkernel Agreement as summarised in this document, you agree that any such arrangements as so notified shall be binding on you. Wealthkernel will be responsible for the acts and omissions of its nominee, however, in the absence of its fraud or wilful default, Wealthkernel shall not be responsible for the default of any agents, nominees and custodians, securities depository, intermediate broker, clearing or settlement system or participant in such a system. In the case of any investments held overseas there may be different settlement, legal and regulatory requirements in overseas jurisdictions from those applying in the United Kingdom and there may be different practices for the separate identification of investments.
6. CLIENT MONEY6.1 Any identifiable money (in any currency) received by Wealthkernel for the account of any Customer (Client Money) will be received and held by Wealthkernel in accordance with the FCA Rules detailed in the Client Asset Sourcebook agreed between them and us. Your Client Money (unless the we instruct Wealthkernel to pay such money into an individual client account) will be pooled with Client Money belonging to our other Customers and will be held in an omnibus Client Money account with an approved banking institution, appointed by Wealthkernel in accordance with the FCA Rules (Approved Bank).
6.2 In the event of an irreconcilable shortfall in the omnibus Client Money account following a default of an Approved Bank or any third party holding Client Money (such as a clearing house, settlement or money transfer system) you may not receive your full entitlement and may share in any shortfall on a pro rata basis with other affected Customers. It will be our responsibility to bring these arrangements to your attention.
6.3 Wealthkernel may, from time to time, hold Client Money in a Customer bank account with an Approved Bank outside the United Kingdom. In such circumstances, the legal and regulatory regime applying to the Approved Bank with which that money is held may be different from that of the United Kingdom and, in the event of a default of the Approved Bank, such money may be treated differently from the position that would apply if the money was held by an Approved Bank in the United Kingdom and the rights and protections under the FCA rules will not be available to you in respect of these overseas Approved Banks. It will be our responsibility to bring these arrangements to your attention.
6.4 Wealthkernel does not pay interest on Client Money.
6.5 You agree that Wealthkernel will cease to treat as Client Money any unclaimed balances after a period of six years and Wealthkernel has otherwise taken reasonable steps to trace you and return any balance to you and paid the sums to charity. Wealthkernel will nevertheless make good any subsequent valid claim against such balances.
6.6 Wealthkernel may also appoint agents, sub-nominees and sub-custodians (whether in the United Kingdom or overseas), to hold investments held in custody. Wealthkernel will exercise reasonable care in the selection of agents, sub-nominees and sub-custodians and before nominating a custodian it will undertake a risk assessment of that custodian in accordance with the FCA Rules. Wealthkernel will be responsible for the acts and omissions of its nominee, however, in the absence of its fraud or willful default, Wealthkernel shall not be responsible for the default of any sub- nominee, custodian, sub-custodian, securities depository, intermediate broker or agent, clearing or settlement system or participant in such a system. In the case of any securities held overseas there may be different settlement, legal and regulatory requirements in overseas jurisdictions from those applying in the United Kingdom and there may be different practices for the separate identification of securities.
6.7 Wealthkernel reserves a right to retain all cash, investments or other assets of any description paid or delivered (or which are due to be paid or delivered) to Wealthkernel for your account.
7. SECURITY7.1 As continuing security for the performance of your obligations pursuant to the terms of the Wealthkernel Agreement including, without limit, the payment of all sums due to Wealthkernel by you, or through your Account held through us, you agree to grant and grant Wealthkernel:
7.1.1 a right over all investments held for your account from time to time in respect of which title has been transferred to Wealthkernel its agents, nominees and custodians;
7.1.2 a right over all certificates or documents of title relating to investments held from time to time for your account by or to the order of Wealthkernel;
7.1.3 a right over your rights in respect of any investments which are held by Wealthkernel (or to its order) for your account;
7.1.4 a pledge, lien and right of set-off over and in respect of, all and any investments, documents of title to property, documents representing property and all money, investments and other assets of any nature held by or subject to the control of Wealthkernel (its nominees and custodians) for the your account (including, without limitation, the benefit of all contractual rights and obligations and any proceeds of sale), (together, the “Charges”) to recover its costs, charges and any other sums incurred in relation to the services it provides under the Wealthkernel Agreement that has not been recovered as provided for in the Wealthkernel Agreement from you, including as appropriate to realise sell, charge, pledge, deposit, borrow against or otherwise deal the cash or assets within your Account held through us to meet those costs charges and other sums.
7.2 Wealthkernel shall have, to the greatest extent permitted by law and the FCA Rules, all of the rights of a secured party with respect to any money or other assets charged to it and you confirm that you will, at the request of Wealthkernel , take such action as may be required to perfect or enforce any security interest and each irrevocably appoints Wealthkernel as their attorney to take any such action on their behalf.
7.3 You represent and warrant to Wealthkernel that you are the sole and beneficial owner of all money, investments or other assets of any nature transferred to or held by Wealthkernel their nominees and custodians or the same are transferred to or held by Wealthkernel their nominees and custodians with the legal and beneficial owner's unconditional consent and, in any event, are and will be transferred to or held by Wealthkernel their nominees and custodians free and clear of any lien, charge or other encumbrance and that you will not charge, assign or otherwise dispose of or create any interest therein.
7.4 Provided Wealthkernel has not been negligent, fraudulent or willful default, Wealthkernel shall have no liability to you for any cost, loss, liability and expense, including without limit any loss of profit or loss of opportunity incurred or suffered by you in consequence of any exercise by Wealthkernel of any right or remedy under this Clause 5 and any purchase, sale, or other transaction or action that may be undertaken by Wealthkernel shall be at such price and on such terms as Wealthkernel shall, in its absolute discretion, determine.
7.5 In exercising any right or remedy pursuant to this Clause 5, Wealthkernel is authorised to combine accounts, effect such currency conversions and enter into such foreign exchange transactions with, or on behalf of, you, at such rates and in such manner as Wealthkernel may, in its absolute discretion, determine.
7.6 No third party shall be required to enquire as to the validity of the exercise by Wealthkernel of its powers under this Clause 5.
8. LIABILITY8.1 Neither Wealthkernel, nor any of its directors, employees or agents, shall be liable for any loss or damage sustained by you as a direct or indirect result of the provision by Wealthkernel of its services, save that nothing in the terms set out in this Schedule exclude or restrict any liability of Wealthkernel resulting from:
• death or personal injury;
• breach of any obligation owed to you under the regulatory system; or
• the negligence, fraud or wilful default of Wealthkernel.
8.2 Wealthkernel shall not in any event be liable for loss of profits, loss of opportunity, loss of business, loss of savings, loss of goodwill, claims by third parties, loss of anticipated savings (whether direct or indirect) or for any type of special, direct, indirect or consequential loss howsoever caused, even if caused by Wealthkernel negligence and/or breach of contract and even if such loss was reasonably foreseeable or Wealthkernel had been advised of the possibility of the Customer incurring the same.
8.3 Wealthkernel is committed to providing you the Services with reasonable skill, care and diligence under these Terms.
8.4 Please note Wealthkernel does not provide, nor accepts responsibility for, legal, tax or accounting advice.Your tax treatment depends on your individual circumstances and may be subject to change in the future.
8.5 Please note, however, that despite the above Wealthkernel does not limit or exclude our liability for fraud or death or personal injury as a result of their negligence or that of their employees.
9. CONFLICTS OF INTEREST9.1 Wealthkernel or its associates may provide services or enter into bargains in relation to which Wealthkernel, or its associates, has, directly or indirectly, a material interest or a relationship of any description with a third party which may involve a conflict of interest or potential conflict of interest with you. Wealthkernel or any of its associates may, for example:
• for its interests be the counterparty to a transaction that is executed by Wealthkernel (whether or not involving a mark-up or a mark-down by Wealthkernel or its associates);
• be the financial adviser to the issuer of the investment to which any instructions relate;
• for its interests have a (long or a short) position in the investments to which any of your instructions relate; or
• for its interests be connected to the issuer of the investment to which any instructions relate.
9.2 Wealthkernel may receive remuneration from fund managers or Approved Banks in connection with Wealthkernel providing services to them. These payments are calculated by reference to the Agreement Wealthkernel has with that person. If that means there will be a deduction in the value of the account held by you through us, that deduction will be disclosed to you as set out in the FCA’s then current rules.
9.3 Wealthkernel has adopted conflict of interest policies in accordance with the FCA’s requirement for authorised firms to pay due regard to the interests of their Customers, treat them fairly and manage conflicts of interest fairly, both between themselves and their Customers and between different Customers.
9.4 You acknowledge that neither Wealthkernel nor any of its associates is required to disclose or account to you for any profit made as a result of acting in any manner described above, except as set out in the FCA’s then current rules.
9.5 As part of providing our service to you, we may receive acceptable minor non-monetary benefits. Minor non-monetary benefits are those which:
9.5.1 are capable of enhancing the quality of service provided to you;
9.5.2 is of a scale and nature that it could not be judged to impair our compliance with our duty to act honestly, fairly and professionally in your best interests;
9.5.3 is reasonable, proportionate and of a scale that is unlikely to influence our behavior in any way that is detrimental to your interests; and
9.5.4 consists of:
a. information or documentation relating to a financial instrument or an investment service, that is generic in nature or personalised to reflect the circumstances of an individual client;
b. written material from a third party that is commissioned and paid for by a corporate issuer or potential issuer to promote a new issuance by the company, or where the third party firm is contractually engaged and paid by the issuer to produce such material on an ongoing basis, provided that the relationship is clearly disclosed in the material and that the material is made available at the same time to any firms wishing to receive it, or to the general public;
c. participation in conferences, seminars and other training events on the benefits and features of a specific financial instrument or an investment service;
d. hospitality of a reasonable de minimis value, such as food and drink during a business meeting or a conference, seminar or other training events mentioned under Paragraph c;
e. research relating to an financial instruments issued by an issuer, which is:
i. produced:
1. prior to the issue being completed; and
2. by a person that is providing underwriting or placing services to the issuer on that issue; and
ii. made available to prospective investors in the issue; or
f. research that is received so that we may evaluate the research provider’s research service, provided that:
i. it is received during a trial period that lasts no longer than 3 months;
ii. no monetary or non-monetary consideration is due (whether during the trial period, before or after) to the research provider for providing the research during the trial period;
iii. the trial period is not commenced with the research provider within 12 months from the termination of an arrangement for the provision of research (including any previous trial period) with the research provider; and
iv. we make and retains a record of the dates of any trial period accepted under this rule, as well as a record of how the conditions in (i) to (iii) were satisfied for each such trial period.
10. COMPLAINTS10.1 In the event of any complaint regarding Wealthkernel ’s services you should contact us and we will handle your complaint for you.
10.2 We will, as soon as is practicable, investigate the matter with any employees who may be directly concerned to determine the appropriate course of action. After investigating we will write to you detailing the results of the investigation and offering, where appropriate, redress.
10.3 Wealthkernel will consider a complaint to be closed in any of the following circumstances:
(a) If at any time a complainant has accepted in writing an offer of redress or has written to Wealthkernel confirming that he/she is satisfied with Wealthkernel ’s response to the complaint (or simply confirms in writing that he/she wishes to withdraw the complaint). The Head of Compliance will write to the complainant acknowledging receipt, making redress (if appropriate) and confirming that the complaint has been closed; or
(b) If you have not replied to an initial or interim letter offering redress having been invited to do so within eight weeks of the date of the letter and such offer of redress has been made, or set aside for you to claim if it cannot be made because you have not replied.
11. FEES11.1 WealthKernel do not charge you directly for their Services, rather they provide their services on the basis that we pay their fees on your behalf. To see more information about your account fees, please refer to Schedule 4. Please note that it is possible that taxes or costs may exist in addition to those which we pay or impose.
11.2 In the event of non-payment or late payment of fees, you agree that we may use, sell, retain or set-off assets held by us on your behalf. We will only exercise this right if we have asked you for payment in writing and the sum is outstanding for 30 calendar days from the date of our request.
12. INVESTOR COMPENSATION12.1 Wealthkernel is authorised by the FCA and as appropriate this may give you certain rights under the UK Financial Services Compensation Scheme. Depending on the type of business and your circumstances, the happening of certain events compensation may be available from that scheme if Wealthkernel cannot meet its obligations to you. Further information about compensation arrangements is available from the Financial Services Compensation Scheme.
12.2 WealthKernel is covered by the Financial Services Compensation Scheme (“FSCS”). This means you may be entitled to compensation from the scheme if we cannot meet our obligations. The level of compensation depends on the type of business and the circumstances of your claim, and you are covered up to a maximum of £85,000 per person.
12.3 Further details of the Financial Services Compensation Scheme are available from www.fscs.org.uk
13. AMENDMENT13.1 You agree that Wealthkernel has the right under the Agreement to alter the Wealthkernel Agreement and this summary of those terms at any time, upon giving prior notice to us unless it is impracticable in the circumstances to give such notice, provided they conform to the requirements of this clause.
13.2 Wealthkernel may vary these Terms and their Charges at any time if they have a valid reason to do so. They consider the following to be valid reasons:
• Changes to relevant law or regulation, or a decision of the Financial Ombudsman Service.
• Changes to the way we are taxed (including the requirement to pay any government or regulatory levy), or you and your product are taxed.
• Changes required by any regulatory or tax authority or industry guidance or codes of practice.
• Changes in the way investment markets work, including changes in investment/securities dealing or administration which may affect your account.
• To make the Terms easier to understand and any other changes that are not detrimental to you.
• If it becomes impossible or impractical, in our reasonable opinion, to carry out any of the Terms as a result of circumstances beyond our reasonable control.
• To reflect changes to our services or the manner in which we provide them to you.
• To reflect changes to the level of charges applicable to your account.
• To reflect changes to the range of investments we make available to you from time to time.
• To reflect improvements to our online service that technological, service or propositional enhancements have allowed us to make.
13.3 Changes to these Terms set out in this schedule which are due to reasons outside our control (e.g. changes in legislation) or are not detrimental to you (e.g. improvements to the service we are able to offer you) will take effect immediately and we will notify you at the next appropriate opportunity.
13.4 In the case of changes that we have to make for the purposes of complying with Regulatory Requirements, Wealthkernel may vary these explanations of your relationship with them with immediate effect.
14. Termination14.1 If we give notice that we will close your account with us your relationship with Wealthkernel ends at the date of closure of your account.
14.2 If for whatever reason Wealthkernel and our relationship ends, we will tell you if we have
• made arrangements with another service provider, and we will tell you what that means to you
• will close your account and tell you what that means to you
in either case your rights will be similar to the rights set out in the main agreement between us and you.
14.3 If Wealthkernel need to end our relationship with us in respect of an account or accounts held by you through us we will
• make arrangements with another service provider, and we will tell you what that means to you
• will suspend or close your account and tell you what that means to you;
in either case your rights will be similar to the rights set out in the main agreement between us and you.
14.4 We will always honour your statutory rights. After agreeing to invest with us, you are still entitled to cancel your investment for up to 14 calendar days after having opened your account (the “cancellation period”). This is done by sending us written notice of the cancellation to support@fortu.co.uk.
14.5 If you cancel your investment within the cancellation period, we will sell your investments and return the money from any sale to you. We will sell your investments within 2 business days (on which the relevant markets are open) of receiving your cancellation instruction, subject to circumstances beyond our control.
14.6 Please be aware that if the value of your investment(s) has fallen you will not get back the full amount you invested. You will also be liable for any costs we have to pay on your behalf in order to sell the investments.
15. DATA PROTECTIONAll of your personal information and financial information (called personal data) will be processed in accordance with our Fair Processing Notice available at https://www.wealthkernel.com/privacy-policy.
16. GENERAL16.1 Wealthkernel’s obligations to you shall be limited to those set out in this Schedule and Wealthkernel shall, in particular, not owe any wider duties of a fiduciary or any other nature to you.
16.2 Wealthkernel are required to and will observe and apply the requirements of the law of England applicable to the provision of their services under the Wealthkernel Agreement as more particularly agreed between them and us in that agreement.
16.3 No person other than you, us and your legal representatives shall be entitled to enforce these terms set out in this Schedule in any circumstances.
16.4 Any failure by Wealthkernel (whether continued or not) to insist upon strict compliance with any of the Terms set out this Schedule shall not constitute nor be deemed to constitute a waiver by Wealthkernel of any of its rights or remedies.
16.5 These Terms set out in this Schedule shall be governed by English law and you hereby irrevocably submit for the benefit of Wealthkernel to the non-exclusive jurisdiction of the courts of England and Wale.
Schedule 2 EXECUTION SERVICES1.1 Fortu Trading Ltd (“Fortu”) has introduced you to us, and we provide you with investment options on a non-advised basis (our “Services”). We do not, therefore check whether investments you select are suitable or appropriate for you.
1.2 You do not, therefore, benefit from the protection of the rules on assessing appropriateness. You must ensure together with Fortu any investments you make are appropriate investments for you.
1.3 Neither WealthKernel nor its employees are qualified to give legal, tax or accounting advice or to prepare any legal, tax or accounting documents. We are not responsible for dealing with any of the above matters when you use our Services.
2. Your Introducer – Fortu2.1 Our service to you depends on you retaining your relationship with Fortu. However, should your relationship with Fortu end for reasons outside your control, we will ensure that investments made using our Services are protected, and contact you regarding next steps. We will use your name and contact details (in particular, your telephone number, email and/or postal address) for this purpose. This means we will process this personal information about you to this end. For further details about processing of your personal information, please see our Fair Processing Notice available at www.wealthkernel.com/privacy-policy.
2.2 Any fee charged for a service which Fortu provides is in addition to the fee for the services provided by WealthKernel. Fees are explained within Fortu Trading Ltd Terms.
3. Executing transactions3.1 For an explanation of how transactions are executed on your behalf, please see our Execution Policy, available in the regulatory FAQs within the mobile application. This sets out how we ensure that, when executing transactions on your behalf, all sufficient steps are taken to obtain the best possible result for you on a consistent basis, taking into account relevant factors, including: price, cost, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of your order.
3.2 Please note that we need to comply with the rules and regulations of the relevant investment markets and exchanges. As such, by agreeing to these Terms, you authorise us to take all steps that may be required or permitted by these relevant markets or exchanges, as well as to generally act in accordance with good market practice.
3.3 You confirm that:
3.3.1 If you have orders that may be executed outside a trading venue, we will inform you accordingly and you expressly consent to us proceeding with executing these orders;
3.3.2 In relation to client limit orders, confirm that we have your express instruction not to take measures to facilitate the earliest possible execution of any unexecuted orders in a manner that is easily accessible to other market participants; and
3.3.3 We may aggregate your order with those of other clients. Whilst we will act fairly, the effect of this aggregation may work to your disadvantage in relation to a particular order.
4. Voting RightsIn providing our Services to you we may decide at our discretion whether or not to procure the exercise of any voting rights attaching to your investments. Unless you instruct us otherwise, we shall be entitled to exercise such rights at our discretion, providing that we are in compliance with our conflicts of interests policy, which can be found in our regulatory FAQs within the mobile application. Please note that, if we are managing a Stocks and Shares ISA on your behalf, this right is subject to your “Shareholder rights”, as set out in the specific Stocks and Shares ISA Terms set out below.
Rules for How Portfolios will be treated under an Execution Only Model serviceA deposit (or similar) to a portfolio will be invested inline with the Execution Only (ExO) Model selected for that portfolio at the next trading point.
Drift* will not be taken into account as part of that investment.
Income cash that has been accumulated will not be taken into account as part of that investment.
Dividends are invested as part of annual rebalance process.
*Drift is the amount that market movements take the asset allocation of the portfolio away from the intended allocation.
2. What Needs to be Bought/How Much to BuyThe purchases will be driven by the weights of the ExO Model and the amount of cash deposited.
Trades placed will be value orders (i.e. A Purchase of Fund X for £1,000) and the number of units received will reflect the price on the market at that time.
3. RebalancingAnnually, during the last week of March, trades will be made to bring the portfolio back inline with the ExO Model. This may involve both sale and purchase trades and may utilise income cash or raise cash for future fees.
4. Model ChangeTo change to a different ExO Model, sale and purchase will need to be placed to realign the holdings with that dictated by the new Exo Model available.
5. Change of asset allocation within modelThe ExO Models will never have their asset allocation changed. Should the Tenant decide to offer an amended version of an existing ExO Model, this will be created with it’s own reference, name and ID. Clients can then be made aware of it’s creation and choose to switch to it if they deem such a move appropriate for themselves.
An existing ExO Models will not be removed from the platform unless all clients have dis-invested from it.
6. FeesMembership Fees will be deducted monthly from your Fortu Account.
If there is not enough cash to cover a fee, assets will be sold down inline with the ExO Model weights regardless of any drift.
7. Partial WithdrawalA request for a partial withdrawal will trigger sale trades inline with the ExO Model weights regardless of any drift.
If this is not possible due to excessive drift, we will carry out a rebalance at the same time to bring the portfolio back inline with the ExO Model.
8. Full WithdrawalA request for a full withdrawal will trigger sales trades of all holdings. The cash will then be paid back to the Investor.
Schedule 3 CUSTODY SERVICE1.1. We use a third-party custody provider to take custody of your assets, and references to “we”, “us” and “our” in paragraphs 1.2 to 1.11 are references to that third-party custody provider. The third-party custody provider we have selected for these purposes is Wealthkernel Limited, however we reserve the right to change our custody provider at which point we will give you reasonable advance notice, where practicable, of this change. You will be treated as accepting any such change unless you tell us that you do not agree to the change, in which case you have the right to terminate these terms and conditions by giving us notice at any time before the change comes into effect.
1.2. How will we look after your investments?
1.2.1. Your investments will be registered in the name of a nominee company (“Nominee”), who will be controlled in accordance with the FCA Rules. The Nominee will hold onto your investments on your behalf and you will be their beneficial owner. We will be responsible for our Nominee with respect to its compliance with the FCA Rules on custody.
1.2.2. All client assets will be held separately from our own assets and investments, meaning that at any time we will be able to identify your entitlement. We will not register our own assets and investments in the same name as your assets and investments, unless doing so is permitted under the FCA Rules. Before registering our own assets and investments in the same name as your assets and investments we will consider whether there is any way to avoid doing this.
1.2.3. We may pool your investments with those of our other clients in an omnibus account.This means that your investments might not be identifiable individually when looking at the relevant company register.Within our own system, however, your individual entitlement will be clearly identifiable.
1.3. Sub-Custodians
1.3.1. It might be necessary to appoint third party sub-custodians (“Sub-Custodians”) to act on WealthKernel behalf and who will hold onto your investments for them. Under this agreement you authorise WealthKernel to appoint such Sub-Custodian(s) from time to time. Your assets will typically be held by them in pooled accounts, and will be kept separate from assets belonging to us or any Sub-Custodian.
1.3.2. We will exercise due skill, care and diligence when selecting, appointing and conducting periodic review of any Sub-Custodians in accordance with FCA Rules, and we take responsibility for the acts and commissions of any Sub-Custodians to the extent this is required under the FCA Rules of other applicable national law. (20)
1.3.3. When entering into written agreements with a Sub-Custodian for the purpose of arranging for them to keep your investments safe for you we will comply with applicable FCA Rules.
1.4. How will we look after your overseas investments?
1.4.1. If you make investments overseas your investments might be held by an overseas Sub-Custodian appointed by us. If this is the case your investments might be registered in our name or the name of the overseas Sub-Custodian. Before this occurs we will take reasonable steps to determine that it is in your best interests for this to happen and that it is not practical for us to do otherwise, because of the nature of applicable law or market practice. When taking these steps we will make adequate investigations of the overseas jurisdiction by reference to local sources.
1.4.2. We will only allow your investments to be held by an overseas Sub-Custodian in an overseas jurisdiction that regulates and supervises the safekeeping of investments for another person who is subject to such regulation and supervision.
1.4.3. We will not allow your investments to be held by an overseas Sub-Custodian in a country that does not regulate the safekeeping of investments, unless the nature of your investments or the investment services connected with them are such that it requires they be held in that country.
1.5. Unclaimed assets and investments
We may liquidate your investments and pay the money to charity, in accordance with the FCA Rules, if we do not hear from you in relation to your investments for at least 12 years.
Where we have done so we undertake to pay you a sum equal to the value of the asset at the time it was liquidated or paid away, should you claim an asset in the future.
1.6. How will we look after your money?
1.6.1. When holding onto your money we will treat it as client money in accordance with the FCA Rules, unless stated otherwise in these Terms or as provided under applicable law.
1.6.2. We will hold your funds separately from our own and deposit them in a client bank account with a CRD credit institution or other institution approved for this purpose, in accordance with the FCA Rules. The client bank account will, among other things, be free of lien and will be set up with statutory trust status. We may hold your money in a pooled account with other client’s money.
1.6.3. We will exercise all due skill, care and diligence in the selection, appointment and periodic review of the third party bank with whom we deposit your money and the arrangements for the holding of your money, in accordance with the FCA Rules. When making the selection, appointment and conducting the periodic review of the third party bank we will take into account those relevant matters required by the FCA Rules.
1.6.4. We will not be responsible for acts, omissions or default of the third party bank.
1.6.5. We might allow another third party, such as an exchange or clearing house, to hold your money. We will only do so:
1.6.5.1. for the purpose of one or more transactions for you through or with that third party; or
1.6.5.2. to meet your obligation to provide collateral for a transaction.
1.6.6. In the event that your money has been deposited with another third party (such as an exchange or clearing house) we will not be responsible for their acts, omissions or default.
1.6.7. In the event of our insolvency your money, by virtue of having been separated from our assets and held in a client bank account, will not be available to our creditors. However, should a third party with whom your money has been deposited default the following may happen:
1.6.7.1. UK bank accounts: If your money has been deposited in a UK bank account it will typically be held in a pooled account with other client’s money. If the third party bank defaults and there is a shortfall that cannot be met, then you may have to share in the loss according to the proportion of the funds attributable to you in the pooled account.
1.6.7.2. Non-UK bank accounts: If your money has been deposited in a non-UK bank account you face the same risk of loss as you would for a UK bank account. Additionally the laws of that country might be different from the laws and regulations in the UK. Your money might be less secure and might be treated differently than it would have been treated if it had been held in a UK bank account.
1.6.7.3. Other third parties: If your money has been passed on to another third party there is a risk that you could suffer financial loss if that third party defaults. These third parties will not always be able to keep your money separate from their money. This means that if they become insolvent we will only have an unsecured claim against them on your behalf. This means that they might not be able to pay us enough money to cover all of our clients unsecured claims.
1.7. Interest
1.7.1. Interest will not be payable on cash balances held by us on your behalf, unless we have agreed otherwise in writing.
1.8. Unclaimed client money
1.8.1. You agree that we may pay funds held by us on your behalf in a client bank account to a registered charity of our choice, if:
1.8.2. we have taken reasonable steps to try and contact you in accordance with the FCA Rules; and
1.8.3. there has been no movement on your account for at least 6 years (excluding payment or receipt of interest, charges or other items).
1.8.4. If the sum of money paid away to charity is greater than £25.00 we promise to pay you a sum equal to that which has been paid away, so long as you can bring evidence to support your claim. If that sum is less than £25.00 we will not compensate you.
1.9. Minimum Balance
1.9.1. We will notify you as soon as possible should your account balance fall to the point where the charges are greater than the credits.
Schedule 4 RISKS1. As with any investment there are risks that must be understood and accepted prior to investing. Below we are providing a summary of main risks that investors can be exposed to by investing through Fortu Investment Account. Investing always has exposure to new risks as well as any risk can become higher at any moment, so this summary is not comprehensive however gives you a guidance on the risks involved.
1.1. Your capital is at risk so you may not make profit, you may make a loss or lose your entire investment.
1.2. Fortu Trading Ltd does not provide investment advice. It is your decision to invest including carrying out relevant due diligence. If you unsure on any matter, you should consider taking independent financial advice from a professional that is authorised and regulated by the Financial Conduct Authority.
1.3. Any income your earn from your investments forms a part of your overall income that is subject to personal taxation. You have sole responsibility for the management of your legal and tax affairs and if you are unclear as to what your position is, you should sick a professional advice.
1.4. If the value of your investment changes by less than the rate of inflation, it shall have less buying power in the future.
1.5. Please note that the value of your investments can fall as well as rise and you may not get back the full amount you invested. The price and value of investments may depend on fluctuations in the financial markets, or other economic factors, which are outside our control. Past performance is not necessarily a guide to future performance.
2. It is very important to us that you understand the risks involved when making an investment. We set out here the risks of investing in the different types of assets:
Bonds have the following risks:
2.1. the price of bonds can go down as well as up, for example the price of bonds tends to fall when interest rates rise;
2.2. if the proceeds from holding bonds are reinvested in bonds, the new bonds may not provide as large an investment return as the previous bond;
2.3. the interest rate provided by bonds can be fixed, in which case you may receive a return that does not keep up with inflation;
2.4. if the provider of the bond becomes insolvent or otherwise unable to pay its debts, then the bond may become valueless; and
2.5. there is the risk, if selling a bond back into the marketplace, that there is difficulty finding someone willing to buy it, lowering the value of the bond.
Company equity (also called company shares) has the following specific risks:
2.6. share prices can go down as well as up – this is particularly so for smaller companies, as the combination of both less shares and less buyers of those shares means the share price can change more rapidly;
2.7. dividend growth is not guaranteed, nor are companies obliged to pay a dividend to you as an investor;
2.8. companies may go insolvent rendering the shares you hold valueless;
2.9. the market for equity may decline in value;
2.10. the company’s earnings and financial markets generally may be volatile; and
2.11. for smaller companies, shares may not obtain their full value on sale if there is difficulty finding a buyer for those shares.
Overseas investments:
these have the risk that they are priced in a currency other than pound sterling (this being the currency of your initial investment). If the exchange rate between pound sterling and other overseas currency changes, such that the same value of overseas currency is worth less pounds sterling, this will cause your investment to lose value. Also the opposite may happen, in which case there will be an increase in the value of your investment. Please note that the effect of investing overseas is separate to and in addition to the actual investment itself.
Investments in emerging markets:
have, in addition to the risks involved in investing overseas, significant political, regulatory and economic risks. These may differ in kind and degree from the risks presented by investments in the world’s major markets. These investments have a greater risk of a sudden fall in value, for example if there is difficulty selling them, or as a result of governmental interference.
3. Please note that there may be other risks in addition to those outlined above in relation to your investment, and there may be further risks that arise in the future.
4. If any of the risks outlined above are unclear or if you would like to discuss the risks you face in further detail, please let us know by sending an email to support@fortu.co.uk.