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TOB-2022-Client-Latter

28th January 2022

Dear Client,

Terms of Business for Retail Clients – April 2022

Please be advised that we have taken the opportunity to review our Terms of Business for Retail Clients to improve their clarity and ensure compliance with applicable laws and regulations.

The updated Terms of Business for Retail Clients will take effect from 1 April 2022.

The new set of Terms of Business for Retail Clients are available for you to read and download on our website www.alphabanklondon.co.uk. They can also be found in our Document Library on www.alphabanklondon.co.uk/mdocuments-library under the Investment section as “Terms of Business for Retail Clients_2022”.

We draw to your attention, in summary format in the table below, the key changes that we have made to the Terms of Business for Retail Clients:

Clause No

Clause Heading

Amendment(s)

1

General

Please read this document in conjunction with Our following documents:

·       Privacy Policy 
·       Best Execution for Client Deals Policy
·       Conflict of Interest Policy
·       Terms and Conditions (Personal or     
 Corporate) as applicable to your circumstances which can be found on Our website www.alphabanklondon.co.uk.

2

Services

We have updated the examples of Complex financial instruments in Clause 2.3 to include unlisted shares. 

For non-advised services, we have included Clause 2.7 stating that we may provide you with a list of products (bonds or ETFs) that are available through Our execution-only service.

In Clause 2.8, we have clarified that Our staff are available to call from 9am to 5pm UK time, Monday to Friday, excluding UK public holidays.

4

Fees and Expenses

In Clause 4.1, we have provided additional details and an explanation as to how investment tariff amendments are communicated, where Our current Investment Tariff can be found, and what notice periods are applicable for any changes thereto to become effective.

In Clauses 4.4, 4.5 and 4.6, we have included two more charge types: Inducements and Mutual Fund Rebates.  We have further clarified what a mutual fund rebate is, how they work and how we will advise you of such rebates received by the Bank on an annual basis so as to be transparent and in doing so comply with MIFID II regulations.

5

Client Money

We have changed the section heading from “Client Money” to “Client Money Under CASS Rules”. CASS Rules are the rules that govern how institutions hold client money and assets. As a Bank there are certain differences applicable to ABL where you also hold an account from which you can directly fund investment purchases from and receive dividends and sale proceeds to.

6

Safe Custody Services and Security

In Clause 6.1, we have removed deposit stocks and money market instruments to avoid confusion and reiterated that Our Best Execution products offering includes equities, bonds, and mutual funds.

In Clause 6.2, we have explained further how Nominee fees are calculated and may apply to an account. Please see Our Investment Tariff available on Our website for further clarification

www.alphabanklondon.co.uk/mdocuments-library.

Reference to unavailable or unrecognised jurisdictions’ list has been removed.

In Clause 6.4, we have taken the opportunity to reinforce and remind you that “Your securities may normally be held in an omnibus account with other clients’ assets. In the event of an irreconcilable shortfall following the failure of a custodian or sub-custodian, you might experience delays in recovering your assets and possibly an increased risk of loss.”

7

Settlement Procedures

Clause 7.2 has been updated so that it clarifies that your account may be debited before the actual settlement occurs or potentially if the settlement fails.

8

Conflicts of Interest and Material Interests

As we only provide an “Execution Only” service and do not provide services such as research, we have removed the term “full-service firm” from Clause 8.1.

In Clause 8.6, we now reference Our Conflict-of-Interest Policy which has been refreshed and been made available on Our website

www.alphabanklondon.co.uk/conflicts-of-interest-policy instead of Schedule 2 which has now been removed from the Terms of Business document.

9

Best Execution

In Clause 9.1, we provide an enhanced explanation of the term “Best Execution” in compliance with MIFID II and TCF principles.

In Clause 9.3, the criteria for Best Execution have been updated to consider the following execution factors: price; costs; speed; the likelihood of execution and settlement; size and nature of the order; and any other considerations.

Clause 9.4 explains aggregate client orders and IPOs in greater detail.

Clause 9.7 references the latest version of Our Best Execution for Client Deals Policy, which is available on Our website www.alphabanklondon.co.uk/best-execution-for-client-deals-policy.

10

Default Remedies

Clause 10.2 now references the interest rate applicable when you are in default in paying any amount when due to the Bank. This has been increased from 5% to 6% plus Bank of England Base Rate or equivalent reference rate of the currency of the account.

11

Data Protection

The data protection Clause in 11.1 has been revised to clarify how we collect, process, and retain your information in accordance with applicable regulations.

Clause 11.2 references Our latest Privacy Notice which can be found on Our website; please visit Our website for more details www.alphabanklondon.co.uk/wp-content/uploads/2022/01/GDPR-Privacy-Notice-External.pdf      

12

Information we provide to you

Clauses 12.1 and 12.2 have been revised and 12.3 has been added to clarify your responsibility regarding marketing materials which should not be shared with any other person, the terms of an investment or its performance characteristics and that we are not responsible for any investment, tax, legal, or accounting-related advice or consequences.

15

Representations and Warranties

We have added Subclause 15.1 (g) which reminds you of your responsibility to ensure that the information you provide to us is true, accurate, and not misleading.

16

General

Clause 16.1 has refined the definition of delivery to mean when first supplied to you upon opening a new Account, along with the requirement to provide the Bank with a written acceptance of these Terms of Business and the consequences if this is not done.

Clause 16.2 which addresses amendments to these Terms of Business has been rewritten to clarify how amendments may be communicated to you, as well as any applicable notice periods.

We have added new clauses to clarify Our policies and practices around the Death of Sole Account Holder (Clause 16.3 (e)) and the Death of Joint Clients (Clause 16.13 (a) (iii)). For more information, please refer to Our Bereavement Notification section on Our website www.alphabanklondon.co.uk/deceased.

Clause 16.9 reminds you that in accordance with the appropriate regulations, we will record telephone conversations with you and a copy of the call recording will be retained for a period of five years.

17

Notices

For your investments and cash, Clauses 17.1 (d) and 17.3 now allow you to receive monthly Valuation Reports through secure email.

When you opt for physical Valuation Reports, you will receive them quarterly by post as per Clause 17.3.

18

Changes to Your Personal Circumstances

In Clause 18.1, we have reminded you of your obligation to ensure that any changes to your personal circumstances should be notified to Us promptly.

19

Complaints

We have added Clause 19.2 to advise you that the Bank will send you a written acknowledgment in the case of a Complaint.

In Clauses 19.5 and 19.7, we have also updated the Financial Ombudsman Service and Information Commissioner’s Office contact details respectively.

20

Investor Compensation

In this section, we have updated the information in relation to Financial Services Compensation Scheme that might be available to you for your investments and added the Financial Services Compensation Scheme contact details.

21

Governing Law and Jurisdiction

In Clauses 21.1 and 21.2, we have updated the governing law and jurisdiction to correctly reflect that it is England and Wales, and not just England.

Schedule 1

Investment Services

Under the heading “Our services may include” we have removed the sentence “sending research and market reports to you” as this is not a service we provide as an Execution only venue.

Schedule 2

Best Execution for Client Deals Policy

A separate Best Execution for Client Deals Policy can now be found on Our website

www.alphabanklondon.co.uk/best-execution-for-client-deals-policy. This replaces the Order Execution Policy information previously found in Schedule 2 of Our 2018 Terms of Business document.

 

Schedule 3

Conflicts of Interest Policy

A separate Conflicts of Interest Policy can now be found on Our website www.alphabanklondon.co.uk/conflicts-of-interest-policy. This replaces the Conflicts of Interest policy previously found in Schedule 3 of Our 2018 Terms of Business document

All other Terms of Business for Retail Clients for your account will remain unchanged.

Should you have any questions in relation to these new Terms of Business for Retail Clients, please do not hesitate to contact your Relationship Manager.

If you are not happy with any of the changes set out in the revised Terms of Business, you may close your account without incurring any charges for doing so. 

Yours sincerely,

Joseph Neophitou 
General Manager

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Best Execution for Client Deals Policy

ABL BEST EXECUTION FOR CLIENT DEALS POLICY


Purpose and the Best Execution Obligation

The purpose of this document is to set out a summary of how Alpha Bank London Ltd (ABL) ensures Best Execution when executing client deals. Please ensure that you read this document so that you have an understanding of how we will execute any transactions.

Under the Markets in Financial Instruments Directive II (“MiFID 2”) Best Execution rules, as implemented in the FCA’s Conduct of Business Sourcebook, ABL is required to take all reasonable steps to obtain the best possible result for their clients when executing orders. This Best Execution Policy (‘the policy’) sets out ABL’s approach and requirements.

For the purposes of this Policy and in relation to the best execution rules more generally, the term “client order” should be understood to mean all orders in financial instruments, whether they are executed directly in the market or transmitted to another firm to execute on ABLs behalf that are conducted on behalf of a client.

ABL is committed to obtaining the best possible result for its clients when executing client orders, this will be achieved through a consistent order execution process. This process will be reviewed on a regular basis.

Clients are provided with information in respect of this policy in ABLs Terms of Business (a copy of which is available on our website at  www.AlphabankLondon.co.uk), and accordingly clients consent to:

  • ABL arranging execution of orders in line with this policy.
  • Orders being executed outside  of  a  regulated  market  or  multi-lateral  trading facility, and (where appropriate)
  • Limit orders on a regulated market not being made public.

Scope and application
This policy will apply to all retail and professional clients of ABL who carry out investment transactions in financial instruments covered by MiFID 2 regulation on an execution only basis.

Order Execution Considerations
ABL will organise, manage and oversee the placement and execution of client deals in accordance with the following operating principles and in particular to ensure that:

  • Deals are fairly allocated to appropriately authorised brokers.
  • Deals are placed with a broker through a standard deal placement process, either via a platform or online communication tool, by phone, or other appropriate method for that transaction.
  • ABL does not unfairly favour one broker in preference to another without due consideration of the reasons for directing flow.
  • ABL will ensure it avoids a conflict of interest.
  • ABL acts in the client’s best interests and in allocating deal flow does not unfairly act against that customer’s interest.
  • ABL will clarify and follow a consistent order execution process, any exceptions, where it is in the client’s best interest to not follow this process, will be documented in order to clarify the reasons.

Other Considerations
ABL will also take into account:

  • client status as a retail client, or where applicable a professional client, together with the nature of the order, the characteristics of the instrument to which the order relates and the execution venues to which the order can be directed.
  • the general and specific instructions given to us by you, the client, which may prioritise how the Bank fills orders. Such specific instructions may include a specific execution venue, a specific time or time period regardless of the available price, or other specific factors. If the Bank follows specific instructions from the client, then the Bank will not have the ability to ensure compliance with our core execution policy as set out above.

For other occasions where the bank does not follow its order execution process because it has decided that Best Execution is achieved through other means, the decision process is documented and checked after execution, examples where the bank may not follow its order execution process include;

–      Specific client instructions to place an order on a particular venue.

–      No availability of a security through a particular broker.

–      Lack of access/availability to a particular broker/venue.

Execution Methods

  • Bloomberg Terminal
  • Telephone
  • Fundsettle/Fundsplace (online access)
  • Quintet Online
  • Other Trading methods may be required from time to time on an infrequent ad hoc basis as required by the product

Execution Products
ABL distinguish between three types of products:

  • Bonds    –   Issue of government or corporate debt
  • Equities –   Units of shares of ownership in a company
  • Funds     –   Units of a mutual fund

Execution Venues/Counterparties
When in a specific case it is apparent that it is possible to achieve Best Execution in a trading venue that the Bank does not regularly use, the Bank will at its discretion use such a trading venue for the execution of the specific order only and document the reasons for this.  In the case where the execution of the order is only possible through one trading venue, it is deemed that Best Execution is achieved with the execution of that order in that venue.

  • Multilateral Trading Facilities (MTF)
    * Bloomberg MTF’s (BMTF & BTFE)
  • Brokers/Counterparties
    * Alpha Bank
    * Alpha Finance
    * King & Shaxon
    * Quintet
    * Fundsplace/Fundsettle

Custodians
Custodians are used to settle transactions and hold assets on behalf of ABL, the use of custodians allows ABL to settle deals and hold assets in European and US markets, settlement is usually performed on a delivery, or receipt versus payment basis.

  • Custodians
    * Alpha Finance
    * Euroclear
    * Quintet

Best Execution Factors
ABL notes and adheres to the Best Execution factors which are defined in Annex 1 Section C of the MIFID 2 Directive.

In accordance with these ABL is obliged to seek the best possible result for its client in relation to each trade. What constitutes the best possible result however may vary depending on the situation; consequently, this may not always ensure obtaining the best price or lowest cost. The firm is therefore required to consider and assess the relative importance of the relevant ‘execution factors’ in respect of each class of financial instrument in which it trades. When determining a venue or counterparty to place an order with ABL will consider the following best execution factors in order to achieve the overall best result:

  1. Price
  2. Costs
  3. Speed of Execution
  4. Likelihood of Execution and Settlement
  5. Size and nature of the order
  6. Any other considerations

Other considerations will include the following:

  • Client characteristics and classification – For example whether the client has been classified as a retail or professional client and whether they are a natural person or professional investor.  The level of sophistication, trading frequency and size of portfolio may also be relevant; ABL will classify clients as either retail or professional, but regardless of classification ABL will treat all clients as retail for the purposes of achieving Best Execution or getting the best possible results for you when carrying out trades
  • The characteristics of the financial instruments that are the subject of the order.
  • The characteristics of the execution venues to which that order can be directed.

Transmission of Orders (Direct and Indirect Execution)
The nature of the best execution obligations differs depending on whether the Firm is executing orders directly, or whether these orders are being transmitted to third parties (i.e. custodians) for execution.

Direct execution includes situations where the Firm interacts directly  with  other counterparties to the trade, without going through a broker, and in addition covers situations where the Firm uses its own membership of a Trading Venue, or otherwise places an order directly with an Execution Venue in order to execute the trade.

Indirect execution refers to the practice of transmitting orders to brokers, for which the broker is then responsible for execution. These orders may be transmitted to the custodian by a variety of methods, including by telephone, Bloomberg chat, email and electronic order entry.

ORDER HANDLING

General
ABL is committed to a prompt and fair treatment of all client orders.

ABL is required under MIFID 2 to promptly inform retail clients of any material difficulties that would prevent ABL from properly carrying out their order upon becoming aware of such difficulty. Whilst this obligation only applies to retail clients ABL will endeavour to similarly inform professional clients on a best-efforts basis.

Aggregation of Client Orders
ABL may aggregate client orders with orders of another client or clients where it is determined that the aggregation of such orders and transactions will not work to the disadvantage of any client whose order is being aggregated. Alternatively, should it be advantageous to the clients concerned ABL may in this case aggregate client order to achieve the best overall result.

In the case of IPO’s, or primary offers, orders may be aggregated in order to apply for an allocation which will then be distributed appropriately to clients.

Specific Client Instructions
Should ABL receive specific instruction from a client for an order or part of that order, including to execute on a particular execution venue, that may prevent ABL from obtaining the best possible result from the execution of that order ABL will follow the clients request even if it may be in contradiction of ABL’s Best Execution process.

Adverse Conditions
There may be circumstance which are beyond ABL’s control that impact on ABLs ability to provide Best Execution. Should these arise for any client order ABL will attempt to deliver the best possible result, ABL follows a consistent process as defined in their Order Execution Policy any events that result in ABL not following this process will be documented.

Commissions & Charges
Commission and any applicable charges are detailed in the ABL tariff which is reviewed annually and sent to clients. ABL will charge clients appropriate commission as detailed in the tariff. Any commission from the choice of brokers will not be passed on to clients, however costs such as exchange fee’s which are inherent to the product and dependent on choice of broker will be passed on.

Monitoring & Execution Methodology
ABL will monitor and access the effectiveness of its execution policy and its execution arrangements on a regular basis, at least annually and any material changes will be approved by its governance committee, and we will notify you of any material changes

ABL will also ensure that it monitors the effectiveness of  its  order  execution arrangements and  meets the requirements.

 

Last reviewed and updated
December 2021

Euro Current Account Fee

26th October 2020

 

Dear Client,

Euro Current Account Fee

Due to the continued negative interest rate environment in Euros and after much deliberation, Alpha Bank London Limited has decided to introduce the charge of 0.20% per annum on Personal and Corporate Euro Current Accounts with a minimum fee of €30 per quarter. Please note that this fee was previously applied to Personal Current Accounts during the period 2016-2019.

As before, this charge will be calculated at the last working day of each quarter (March, June, September and December) on credit balances in Euro Current Accounts and will be applied to the account on the 22nd day after the quarter end or the next business day. The fee will come into effect on the 1st of January 2021 which means that the first charge will be applied in April 2021 on end of March 2021 balances.

How will this charge impact me?
Holders of a Personal or a Corporate Euro Current Account will be impacted by this change; there is no charge for holders of current accounts in any other currencies or for balances in Euro fixed deposits.

Exceptions:
Alpha Bank London clients with investment portfolios in excess of €200,000 and / or borrowing facilities will be exempt from this charge, as both already incur fees for these services.

Below are examples of how the charge will apply. The illustration covers four different scenarios:

 

Amount in EUR Current Account

Amount in EUR Fixed Deposit Account

Value of Investment Portfolio

Quarterly Charge on EUR Balances

Example 1

€ 50,000

€ 0

€ 0

€ 30.00

Example 2

€ 150,000

€ 150,000

€ 0

€ 75.00

Example 3

€ 100,000

€ 100,000

€ 100,000

€ 50.00

Example 4

€ 100,000

€ 0

€ 200,000

€ 0.00

The decision to re-introduce the charge on our personal Euro Current Account is not one we have taken lightly. We will continue to monitor the situation closely, and review this on an ongoing basis.

Next steps 
Your Relationship Manager will be available to discuss your own personal circumstances. Please do feel free to contact them directly.

Yours sincerely,

 

Joseph Neophitou
General Manager


  • Contact

  • Phone service

    • +44 (0) 207 332 6767
  • Opening hours

    • 9.00am to 5.00pm
      Monday to Friday

      All calls may be recorded for monitoring and training purposes.

Alpha Bank London Limited. Registered office: 85 King William Street, London EC4N 7BL. Registered in England and Wales No.185070. Alpha Bank London Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 135327. Authorisation can be checked on the Financial Services Register at: www.fca.org.uk