Wealthtime SIPP Investments. Questions and Answers.

SIPP Investments.

What are the permitted investment options?

You decide how your SIPP funds are invested. There is a wide range of investments available.

For details of the range of permitted investments please refer to the Wealthtime Permitted Investments List, available in the Literature Library on our website.

Subject to the rules of HM Revenue & Customs, Wealthtime has the final say on whether any specific investment may be made by your SIPP.

Is Wealthtime regulated to give advice?

Wealthtime is not regulated to provide investment advice, and you and your Financial Adviser are responsible for ensuring any investments made are in accordance with the rules.

Do you have a Funds List facility?

Yes. Through a financial adviser it may be possible to use the Wealthtime Funds List for access to collective investment funds such as OEICs and Unit Trusts. Please contact your financial adviser for further information on the Wealthtime Funds List.

Can I invest outside the Funds List?

Whilst the Wealthtime Funds List offers a wide range of funds, the list is not exhaustive and you are still free to choose to invest in other collective funds outside of the Wealthtime Funds List at the fund managers’ standard rates or to choose another company's fund list facility. All funds must be authorised or recognised by the FCA. Please contact your financial adviser for more information.

What is the investment process?

When you join the SIPP an interest bearing account is opened with Barclays in the name of Wealthtime Trustees Limited and designated in your name to receive and pay monies as required. This is known as the Designated SIPP Bank Account. Please note Wealthtime receives no payment from Barclays in respect of this account and takes no margin on the interest accruing to your SIPP designated account. The Trustee will be the sole authorised signatory on the account.

All contributions and transfer values received are paid into your member Designated SIPP Bank Account. Monies will start to earn interest as soon as they are cleared in your account. Any other income such as dividends and tax credits are also paid into this account. Monies will be applied in accordance with your instructions or those of your authorised agent.

All monies received will be held on deposit in your Designated SIPP Bank Account until investment instructions are received.

Specific investments

The following outlines our requirements in relation to the more common investments permitted within the Wealthtime SIPP.

Deposit Accounts and Money Market Accounts

We do not require you to hold all cash with Barclays. For monies to be held on deposit for the longer term you may be able to obtain better rates elsewhere. The process will depend on the requirements of the particular institution. The account will be set up in our name with ourselves as the sole authorised signatories. You will need to obtain the forms and send them to Wealthtime to complete. Please note that each deposit and withdrawal will count as a Transaction for fee purposes. Not all deposit takers will accept pension scheme accounts so you need to check with them first. Please note we will not accept fixed term deposit accounts where it is not possible to obtain immediate repayment whether with or without penalty as these are not regarded as acceptable investments by the FCA. Please also note that the deposit taker must be willing to comply with our reporting requirements e.g. we need an updated balance at least monthly from them.

Insurance Company Trustee Investment Plans (TIP)

We will require a letter of instruction signed by you, giving details of the amount to be invested and the funds in which the investment is to be made. Alternatively, you may provide us with written authority to act upon your Financial Adviser’s instructions. In either case, we will also need an Application Form from the Insurance Company completed as far as possible, but not signed. Wealthtime will then sign the Application Form, send it with payment to the Insurance Company or, if instructed, back to your Financial Adviser for onward transmission. Please note that the TIP should be issued in Wealthtime Trustees Limited’s name as the Trustee of your Plan.

Unit Trusts and OEICS other than through the Wealthtime Funds List

Similar investment procedures apply to those in relation to TIPs, as above. Alternatively, if your appointed Financial Adviser is able to place deals with the Fund Manager by telephone, they may do so. The units purchased must be registered in the name of the Trustee in the form ‘Wealthtime Trustees Limited a/c reference (your Client number / Product number)’. The contract note should be sent directly to Wealthtime for settlement.

Please note that if the Financial Adviser is unsure of the amount available for investment it is essential that he/she check with Wealthtime otherwise any loss occasioned by the need to sell excess units is their responsibility.

Unregulated Collective Investment Schemes

We will not normally agree to any such investments within our SIPP.

How can I invest in Stocks and Shares?

You need to appoint a stockbroker regulated by the Financial Conduct Authority and Wealthtime must agree to their appointment. Wealthtime will need to enter into the stockbroker's Terms of Business Agreement and all shares must be registered in your stockbroker's nominee name. Wealthtime will not hold share certificates. We will need your written instructions to enter into the stockbroker's agreement, together with confirmation that you accept their terms of business. You or your Financial Adviser will be responsible for giving instructions to the stockbroker. You may only use a stockbroker regulated by the Financial Conduct Authority, a stockbroker based overseas is not acceptable. Your chosen stockbroker will need to provide satisfactory due diligence where we have not used them before and be able to provide Wealthtime with online access and electronic links. Wealthtime will also require its own liability to be limited to the value of your SIPP in the stockbroker's agreement.

Once you have signed an Agreement with your chosen stockbroker and returned it to Wealthtime, you will be given a unique dealing reference by your stockbroker. Trades can then be placed by you contacting your stockbroker directly. If you want to trade, the required cash must normally already be with the stockbroker.

Please note that in no circumstances will we accept instructions for onward transmission for stocks and share transactions including corporate actions. Contract notes must be sent to us with copies to the correspondence address on Wealthtime’s records.

Please note Wealthtime must be certain that as Trustee and Legal Owner of your SIPP assets we are not exposed to any investment with potentially open ended liability such as futures and options. It will not normally be acceptable to deal in investments with potentially open ended liability. We will supply a list of permitted investments which the stockbroker must adhere to otherwise it will be necessary to sell the investment. We cannot accept any liability for any loss incurred in such circumstances.

Any shares held with a stockbroker in your private capacity must be kept separate from your SIPP shares.

Please note that it is important to ensure that there are sufficient funds available to complete a purchase. If in doubt, you should check with Wealthtime before making any purchase.

Can I appoint my own Investment Manager?

Yes. The process is similar to appointing a stockbroker as outlined above. You are free to choose any discretionary or advisory Investment Manager. If you choose to appoint an Investment Manager to manage a portfolio on a discretionary or advisory basis, Wealthtime will need to enter into a terms of business agreement with the Investment Manager. To do this we will need your written instructions. This may be done by obtaining a Terms of Business Agreement in duplicate from the Investment Manager, completing the relevant sections regarding investment strategy and signing one copy having satisfied yourself you are happy with the terms and conditions. The two copies should then be forwarded to us and we will then complete the unsigned one in our own name as Trustee of the SIPP, add our limitation of liability and any other provisions we require and forward to the Investment Manager to establish an account. Once the account is opened, we will transfer the amount of money you have instructed to the Investment Manager for investment at their discretion (if discretionary) or in consultation with you (if advisory).

Any Investment Manager used must be regulated by the Financial Conduct Authority and be able to provide satisfactory due diligence and be able to provide Wealthtime with online access and electronic links. An Investment Manager based overseas is not acceptable. Wealthtime must limit its liability in these agreements to the value of your SIPP. Please note we normally require a minimum of £250,000 to be transferred to the chosen discretionary or advisory Investment Manager.

How will the stockbroker/investment management relationship work?

All investments purchased by the Stockbroker/Investment Manager must be registered in their nominee name. The agreement will continue until you notify Wealthtime in writing that the appointment is to be terminated. We will then make arrangements to effect this termination in accordance with the terms of the agreement.

Wealthtime does not accept liability for any loss as a result of any action by a Stockbroker, Investment Manager, Financial Adviser or any other person or body responsible responsible for any investment management or associated ancillary services. All fees and charges relating to investments are payable from the funds within your own Plan unless otherwise agreed. Wealthtime accepts no responsibility for any tax charge which arises if you/your Financial Adviser/your Investment Manager/your Stockbroker invests your SIPP funds in taxable property as defined by the legislation.

What are the timescales for processing investments?

Investment instructions can only be processed when:

  • A valid investment instruction and application form (if appropriate) is received.

In addition:

Wealthtime will require satisfactory transfer information if applicable from the transferring scheme administrator/operator(s) before investments can take place. Investments will only take place upon receipt of all expected monies, unless Wealthtime has received alternative written instructions. Investments will not normally be processed until your new income, if you are taking any, has been calculated, unless Wealthtime has received alternative written instructions.

Investment Manager/Stockbroker accounts - Wealthtime will complete and send the paperwork to establish this type of account to the Investment Manager/Stockbroker within 3 business days of receiving your instruction and account opening forms. The Investment Manager/Stockbroker will have their own timescales for opening the account. Once we have been notified the account is open and the Investment Manager/Stockbroker has agreed to our terms we will endeavour to send any monies you have requested to your Investment Manager/Stockbroker within 2 business days.

All other investments - Wealthtime will endeavour to action your instruction within 2 business days of receiving a valid investment instruction and application form. We will normally send any documentation and payment by post to the investment provider.

How do you confirm details of investment transactions?

You will receive confirmation of investment transactions directly from your chosen Stockbroker, Investment Manager or Fund Manager in line with their relevant Terms and Conditions. If your financial adviser is using the Wealthtime Funds List facility then confirmation of trades will be displayed on the Wealthtime Online Service within your Secure Online Document Store.

Can I switch funds within my SIPP?

Yes. You can decide how your money is invested and switch funds within your SIPP at any time. Each investment provider has their own limits for switching and how much must remain within a particular investment and they, or your Financial Adviser should be able to give you more information. If you switch from one fund manager to another then there may be a delay in purchasing units until the sale proceeds have been received by the new fund manager which may affect the number of units that can be purchased.

The Wealthtime Private Client Service is administered by Wealthtime Limited, which is authorised and regulated by the Financial Conduct Authority.
Wealthtime recommends that before making a decision regarding this service and the investments you should contact your Financial Adviser.

Wealthtime Limited, The Oak House, Barford Lane, Downton, Salisbury, Wiltshire SP5 3QA T: 01725 512925 E: admin@wealthtime.co.uk

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