FAQ (Frequently Asked Questions)

1. How can I apply for a Stocks & Shares ISA?
2. What can I buy in the Stocks & Shares ISA?
3. What is the minimum I can invest?
4. What is the maximum I can invest in a Stocks & Shares ISA?
5. If I have a Stocks & Shares ISA can I also invest in a Cash ISA?
6. Can I start a Stocks & Shares ISA with an initial lump sum and top up at a later date?
7. Can I hold Cash ISAs within the ISA?
8. How can I top up my Stocks & Shares ISA?
9. What is the minimum amount I can invest per fund?
10. Can I hold more than one Fund Manager's funds in my Stocks & Shares ISA?
11. What can I do with income earned on investment funds?
12. Can I have income paid to me?
13. How can I change my instructions for income?
14. How can I deal or switch the investments in my account?
15. Is there any fee to switch investments?
16. Can I invest on a monthly basis?
17. How do I change my regular saving instructions?
18. What interest rate will I receive on cash held on my Stocks and Shares ISA or Investment Funds?
19. How can I withdraw money from the account?
20. Can I set up online access to monitor and deal in my account online?
21. How frequently do Baker Gladstone & York Direct send out a valuation & statement of my holdings?
22. How long can I hold cash within a Stocks & Shares ISA?
23. Can I transfer existing ISAs with other providers to the Stocks & Shares ISA?
24. Do I have to be a UK resident to contribute to an ISA?
25. How do I transfer into the Stocks & Shares ISA?
26. If I transfer an ISA will it count towards my 2009/10 ISA allowance?
27. How safe are my investments with BGY Direct/CoFunds?
28. How can I change my address with you?
29. How can I change my e-mail address with you?

How can I apply for a Stocks & Shares ISA?

Online: Register online using the link on our website and purchase your ISA using a debit card.

By post: Send an application form and a personal cheque made payable to Cofunds Limited to:

Baker Gladstone & York Direct,
Rathbone House,
22 Tanfield Road,
Croydon,
Surrey,
CR0 1AL.

What can I buy in the Stocks & Shares ISA?

You can invest in funds including Unit Trusts and OEICs. You can also hold cash in the account pending your investment decision.

What is the minimum I can invest?

ISA

We usually ask for a minimum subscription of £1,000 when first opening an account. Subject to a minimum of £500 per fund this can be split between multiple investments.

You are also able to set up a monthly regular savings instruction of £50 a month if applying via the post. This is subject to a minimum of £50 per fund.

Investment Funds

We usually ask for a minimum subscription of £1,000 when first opening an account. Subject to a minimum of £500 per fund this can be split between multiple investments.

You are also able to set up a monthly regular savings instruction of £100 a month if applying via the post. This is subject to a minimum of £50 per fund.

What is the maximum I can invest in a Stocks & Shares ISA?

The maximum subscription for the 2010/11 tax year is £10,200.

If I have a Stocks & Shares ISA can I also invest in a Cash ISA?

Yes.You can split your ISA allowance between a Stocks & Shares ISA and a Cash ISA.  The maximum that you can invest into a Cash ISA this tax year is £3,600, or £5,100 if you are over 50 on the 5th of April 2010.

Can I start a Stocks & Shares ISA with an initial lump sum and top up at a later date?

Yes.  We would normally ask for an opening subscription of £1,000 for a new ISA application. It is then possible to top up your ISA with further lump sums at later dates until your full ISA allowance is used. You can top up your ISA with any amount of money. However, if you wish to place investment instructions, the minimum amount we will accept to invest into an existing fund you hold is £500. If you wish to invest in a new fund the minimum is £1,000.

Can I hold Cash ISAs within the ISA?

No, but you can transfer existing Cash ISAs into a Stocks & Shares ISA. If a Cash ISA is transferred into a Stocks & Shares ISA the process cannot be reversed.

How can I top up my Stocks & Shares ISA?

You need to read the Cofunds Key Features and Important Information first then you can top up in one of two ways:

Online: If you have access you can buy additional funds online with a debit card once logged into your account by selecting the ‘Trade’ tab near the top of the screen. You should then select the ‘Buy’ option and then select which account you wish to top up. Please then follow the on screen instructions.

By post: Send a covering letter, quoting your client number, and a personal cheque made payable to Cofunds Limited. If you have not opened an ISA for the current tax year you will need to complete an ISA application form.

What is the minimum amount I can invest per fund?

ISA

We usually ask for a minimum subscription of £1,000 when first opening an account. Subject to a minimum of £500 per fund this can be split between multiple investments.#

You are also able to set up a monthly regular savings instruction of £50 a month if applying via the post. This is subject to a minimum of £50 per fund.

Investment Funds

We usually ask for a minimum subscription of £1,000 when first opening an account. Subject to a minimum of £500 per fund this can be split between multiple investments.

You are also able to set up a monthly regular savings instruction of £100 a month if applying via the post. This is subject to a minimum of £50 per fund.

Can I hold more than one Fund Manager's funds in my Stocks & Shares ISA?

The CoFunds ISA is a fund supermarket so you can mix and match funds offered by different providers within this one ISA wrapper.

What can I do with income earned on investment funds?

You can choose to either take income or reinvest back into investment funds. In most cases, you have a choice between accumulation (‘ACC’) units/shares or income (‘INC’) units/shares:

• ‘ACC’ units/shares – any income earned on your investment accumulates within the price of your holding, increasing the value.
• ‘INC’ units/shares – income generated can be paid to you as income or used to purchase further units in the fund, thereby increasing the number of units/shares held within the fund.

If you do not specify ‘ACC’ or ‘INC’ units/shares on your application, and have not completed the income section, Cofunds wuill invest into ‘ACC’ units where available. Where ‘ACC’ units/shares are not available, we will invest in ‘INC’ units/shares and arrange for any income generated to be reinvested back into the fund.

Can I have income paid to me?

Funds that pay income do so either as dividends or, in the case of fixed interest funds, interest. You can have income paid to you in several different ways on the Cofunds platform.

• Consolidated Natural Income – when income is generated, that income and tax reclaim received from your individual investment funds and/or ISA holdings (if applicable) are consolidated and held in your Consolidated Income Account, pending payment to you.

On a monthly basis, shortly after the 6th working day of the month, your Consolidated Natural Income will be paid directly to your nominated bank account, as one payment.

If you do not supply us with your bank details we will be unable to process your application and your application will be referred back to you. Payments will be made using BACS (Bank Automated Clearing System) and will be paid in pounds Sterling.

All monies pending payment are pooled together and held as a client account with the Bank and will earn the same rate of interest as the Cofunds Cash Account.

If your Consolidated Income Account is overdrawn, we reserve the right to reclaim any cash owed to us prior to income being paid. The frequency of the fund distribution payments will impact upon the amount you will receive on a monthly basis. If the funds you hold only pay income quarterly or half yearly then in some months a payment may not be made at all.

If you elect to take a regular withdrawal from your Cofunds Cash Account, then your separate income payments may cease as it may fund part of your regular withdrawal.

• Cofunds Cash Account – Income can be paid to your cash account. It may then be used for future investment or a lump sum withdrawal.

If you select this option for your ISA holdings, income earned will not be retained within the tax efficient ‘wrapper’.

• Natural Income – If the value of your account is £100,000 or more, you have the option of receiving the income paid to you shortly after it is received from the relevant fund manager. To request this please write to Cofunds Limited: PO Box 1103, Chelmsford, CM99 2XY.

How can I change my instructions for income?

Cofunds will require written instruction signed by you confirming any changes to the way the client receives their income. This can be sent directly to Cofunds Limited, PO Box 1103, Chelmsford, CM99 2XY.

How can I deal or switch the investments in my account?

Online: If you're registered, simply log in to your account to place a deal via the ‘Trade’ tab. If you're not already registered you can register for online access via the existing customer log in facility on the right hand side of this screen.

By Post: You can complete a blank switch application form confirming the funds to be sold and brought. This should then be returned to Baker Gladstone & York Direct, Rathbone House, 22 Tanfield Road, Croydon, Surrey, CR0 1AL.

Please be aware that switches are not instantaneous and depend upon the valuation pricing times for the funds you wish to switch out of and into. Your investment may be out of the market for a period of time whilst the switch is taking place.

Is there any fee to switch investments?

If you are switching between funds, BGY Direct will not make a charge. However, Cofunds will charge 0.25% of the value of the fund being transferred for administration.

Can I invest on a monthly basis?

You can set up a direct debit to invest into a fund on a monthly basis in your ISA or Investment Funds. It is possible to set up the instruction by sending us an application form. he minimums are outlined below:

ISA

You are able to set up a monthly regular savings instruction of £50 a month. This is subject to a minimum of £50 per fund.

Investment Funds

You are able to set up a monthly regular savings instruction of £100 a month. This is subject to a minimum of £50 per fund.

Payment will leave your bank account on the 25th of each month (or the next working day if the 25th is not a working day) and investments are made on the same day.

How do I change my regular saving instructions?

If you wish to change the amount of money we request from your bank account or wish to change the funds you are investing in, please confirm to us your instruction in writing as send it to Baker Gladstone & York Direct, Rathbone House, 22 Tanfield Road, Croydon, Surrey, CR0 1AL.

If you wish to cancel your direct debit please provide us with a written instruction while also cancelling the direct debit with your bank.

If you would like to change the bank account from which the monthly payments are made, we will require a new direct debit mandate to be completed, also to be sent to us.

We will need to receive any new instructions no less than 20 working days before the next payment is due to be made.

What interest rate will I receive on cash held on my Stocks and Shares ISA or Investment Funds?

Clients will receive an interest rate of 0.4% below the Bank of England base rate or zero, which ever is higher.

How can I withdraw money from the account?

Requests for withdrawal of funds from the platform require a written instruction from the client to be sent to; Cofunds Limited, PO Box 1103, Chelmsford, CM99 2XY.

Alternatively, the sell down can be done online with the sale proceeds to go into the cash account. Although in order to then release the sale proceeds from the cash account to the client's bank account, we would still require a signed instruction from the client requesting this. 

Please note that for partial withdrawals, you must specify the number or percentage of units/shares to be sold from any fund. 

Cofunds permits withdrawal proceeds to be sent to your Cofunds Cash Account, nominated bank account or to your registered home address. In the absence of any instruction, we will transfer the proceeds to your Cofunds Cash Account.

Cofunds will send the proceeds to your nominated bank account, Cofunds Cash Account or to your registered home address within 5 working days of the valuation pricing time of the last fund sold. However payment could take up to 8 days in total to reach your account. This is subject to funds being made readily available by the funds manager. For proceeds being sent to your registered home address, please be aware that postal times can vary.

Can I set up online access to monitor and deal in my account online?

If you apply for an account online, you will set up online access to your account as part of the application process.

If you apply by post, you will be required to register for online access. This can be done via the existing Customer Login on the right hand side of the screen and selecting the ‘login/register’ option and follow the on screen instructions.

How frequently do Baker Gladstone & York Direct send out a valuation & statement of my holdings?

We send an Investment Report containing a valuation and statement of your account annually. If you require an up to date valuation this can be available online, provided that you have registered for online access (see above for details of how to register).

How long can I hold cash within a Stocks & Shares ISA?

HM Revenue and Customs regulations do not set a timescale, however, they do stipulate that you must hold the cash in the account with the intention to reinvest at some point in the future.

Can I transfer existing ISAs with other providers to the Stocks & Shares ISA?

Yes. Most Stocks & Shares ISA providers will offer a stock transfer. Some providers may specify that a transfer must be made in the form of cash, in which case, you would retain the ISA wrapper but you would be out of the market during the transfer period, which would typically be 5 – 10 working days. On receipt of the cash proceeds we can reinvest according to your instructions.

It is now also possible to transfer a Cash ISA to a Stocks & Shares ISA but not vice versa.

Do I have to be a UK resident to contribute to an ISA?

Yes. You must be 18 or over and resident or ordinary resident in the UK for tax purposes, or are a Crown employee serving overseas, their spouse or civil partner.

How do I transfer into the Stocks & Shares ISA?

In order to transfer either a Stocks & Shares ISA or a Cash ISA into the Stocks & Shares ISA, you would need to complete our Fund List form, please read the Cofunds Key Features and Important information first. This should be returned to us and we will then contact your existing ISA provider to arrange the transfer. If a Cash ISA is transferred into a Stocks & Shares ISA the process cannot be reversed.

If I transfer an ISA will it count towards my 2009/10 ISA allowance?

No.

How safe are my investments with BGY Direct/CoFunds?

Baker Gladstone & York Ltd is authorised and regulated by the Financial Services Authority. The Financial Services Authority is the independent watchdog that regulates financial services. Baker Gladstone & York Limited is entered on the FSA register under reference number 509758. You can also check this by contacting the FSA on 0845 606 1234.

Cofunds are covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if they cannot meet their obligations. This depends on the type of business and the circumstances of the claim. Most types of investment business are covered and the compensation limit is 100% of £50,000. Further information about compensation arrangements is available from the Financial Services Compensation Scheme website, at www.fscs.org.uk.

How can I change my address with you?

You can change your address by login onto your account online, select the ‘My Details’ tab and then click on ‘Edit’.

Alternatively please send a signed letter of instruction to Baker Gladstone & York Direct, Rathbone House, 22 Tanfield Road, Croydon, Surrey, CR0 1AL.

How can I change my e-mail address with you?

You can change your email address by login onto your account online, select the ‘My Details’ tab and then click on ‘Edit’.

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