INNOVATIVE FINANCE ISA TERMS AND CONDITIONS

Schedule

SIMPLE CROWDFUNDING INNOVATIVE FINANCE ISA

This Schedule contains the terms and conditions that will apply, together with the ISA application and the operative provisions of the Lenders Terms & Conditions, if you have chosen to hold some or all of your peer-to-peer loans in an ISA. Focus 2020 Limited has been approved by HMRC to act as an ISA manager in respect of the Innovative Finance component of an ISA. We will manage your ISA in accordance with the applicable rules.

We may delegate any of our responsibilities under these ISA terms to another appropriately authorised person that we determine is competent to discharge them.  We may disclose to that person necessary information about you and your ISA.

1.                  Paying into your ISA

1.1               If you subscribe to an ISA you may not subscribe to another innovative finance ISA in the same UK tax year with another provider.

1.2               You are responsible for ensuring that you are eligible to subscribe for an ISA, and how much you can subscribe in any particular UK tax year. Please ensure that you do not exceed your maximum allowance in any relevant tax year. If you do, we will have to hold some of your investment outside of an ISA wrapper.

1.3               The minimum investment and account balance for your ISA is set out in Part C of the main terms and conditions. Your ISA may comprise a combination of either (a) and (b) below or (b) only:

(a)                an initial subscription of such amount as does not exceed the maximum allowance in the relevant tax year;

(b)                the transfer of all or part of your existing ISA(s) from another ISA manager(s) in cash.

1.4               Because the rules on taxation can change, we cannot guarantee that the UK tax treatment of your ISA will continue during the lifetime of your investment. If you are uncertain about this or any aspect of how an investment may relate to your tax position, please seek professional advice.

1.5               You can make a lump sum and/or, monthly payments to your ISA through your online account.

1.6               All applications to the ISA are accepted on a rolling basis, which means that if you wish to subscribe in subsequent tax years you may not have to re-apply for a new ISA using your online account. This is an optional arrangement and you are under no obligation to make further investments with us. Provided you make a subscription to your account each consecutive tax year and the basis on which you pay your adviser remains the same, you may not need to complete a new application as your original application may remain valid.

1.7               We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities to you is competent to carry out those functions and responsibilities.

2.                  Univested Cash

2.1               Your ISA must be fully invested into qualifying peer-to-peer loans at all times. Cash may only be held temporarily for the purpose of purchasing those qualifying investments.  The investments will be and must remain in your beneficial ownership and may only be used as security for a loan in limited circumstances that must be agreed with us in accordance with the ISA Regulations.   

2.2               Where cash is held in your ISA, no interest will be paid on this money. There is no requirement for you to inform HMRC of the interest received or tax charge made on any cash held in your ISA.

2.3               We will notify you if your account or investments in it cease to be eligible to be held in an ISA for any reason.     

2.4               All uninvested cash shall be treated by us as ‘client money’ under the FCA rules.  We shall not use e-money accounts in respect of your ISA money.

3.                  Fees

Our fees will be taken directly from your ISA and will not be taken from any other account we hold for you.  Fees relating to your ISA are displayed on the Simple Crowdfunding platform.

4.                  Withdrawals from your ISA

4.1               You may withdraw cash from your ISA (in which case it will lose its ISA status, unless paragraph 4.5 applies) by making a request via your Online Account. 

4.2               You may also be able to sell your P2P Loans for cash pursuant to the Lender Terms and Conditions and withdraw that cash from your ISA (in which case it will lose its ISA status, unless paragraph 4.5 applies). 

4.3               We will pay any cash sums (subject to the deduction of fees, if any) out of your ISA account to you within such reasonable time as you stipulate, provided that the withdrawal process may take up to 30 days from the later of the date you sell your rights under the relevant peer-to-peer loan and the date you notify us of the withdrawal request.  If you stipulate a period of less than 30 days, we will try, but cannot guarantee that we will be able to accommodate your request.

4.4               You may request for your peer-to-peer loans and cash to be held by us outside the ISA wrapper at any time, but you can only transfer cash, rather than peer-to-peer loans, to another financial services provider.

4.5               The ISA is a “flexible ISA”, which means you may, in the same tax year, replace, in whole or part, cash (but not peer-to-peer loans) you have withdrawn from the ISA pursuant to paragraph 4.1 or 4.2, without the replacement counting towards your annual subscription limit.

5.                  Transfers In

5.1               We will accept the transfer of all or part of your existing ISA from another ISA manager in cash.

5.2               Transfers in will only be accepted from an account in your name where you have applied to transfer through your online account. You are responsible for ensuring that the value of your current ISA stated in the transfer authority form is correct as at the time that you complete it. 

5.3               The transfer process will begin on the date on the transfer authority form or the date  you stipulate for us to begin the transfer process, whichever is the later.  We wll then send your request for the transfer of money in your existing ISA to your existing ISA provider together with confirmation that we will accept the ISA transfer, within 30 days of receiving your transfer authority form.  We will not be responsible for any loss or delay caused in the transfer or payment of proceeds to us where this is due to something we cannot reasonably control.

6.                  Transfers Out

6.1               You may transfer cash, but not your rights under peer-to-peer loans, from your online account.  We will transfer the cash sum (subject to deduction of fees, if any) to another ISA manager that accepts the transfer within such reasonable time as you stipulate, provided that the transfer process may take up to 30 days from the later of the date you sell your rights under the relevant peer-to-peer loans and the date you notify us of the transfer request. If you stipulate a period of less than 30 days, we will try, but cannot guarantee that we will be able to accommodate your request. You may be liable to pay the fees and charges of third party administrators and/or custodians arising from any transfer.

6.2               When we transfer the cash realised from liquidating your ISA to another ISA manager, all rights and obligations of the parties to the ISA are transferred with it to the new manager. Your new ISA manager may require you to complete a transfer application form.

6.3               We may use a third party ISA transfer specialist to process a request from you to transfer your ISA to another ISA manager. You consent to us sharing your details with the ISA transfer specialist for the purpose of effecting the transfer of your ISA.

7.                  Death or Bankruptcy

7.1               In the event of your death, ISA tax exemptions will no longer apply.  Any interest or gains in respect of investments that arise after the date of death to the date of closure will not be exempt from tax.

7.2               When we receive notification of your death we will close your Innovative Finance ISA account and we will transfer any peer-to-peer loans and cash to your executors on their instructions.  We will hold such assets outside of your ISA account pursuant to the Investment Terms and Conditions.

7.3               We may require a grant of probate or letters of administration before releasing any monies in your account to the executors.

7.4               Your Innovative Finance ISA account will be valued for probate as at the death and dealt with as instructed by your executors.

7.5               We may support the setting up of an Innovative Finance ISA based on additional permitted subscriptions (within the meaning of the ISA Regulations) for your spouse.

7.6               In the event of your bankruptcy, ISA tax exemption will no longer apply from the date on which a trustee is appointed to manage your estate.

7.7               When we receive notification of your bankruptcy we will close your Innovative Finance ISA account and transfer any peer-to-peer loans or cash into a non-ISA account in the name of the trustee.

7.8               Whilst you are bankrupt, your trustee will have the authority to request that we sell your peer-to-peer loans and / or money in your account to them.