Individual Client Segregation (ICS)

Stock

We register all customer stock we hold in the name of a nominee company. This is a non-trading company and the record of accounts clearly identifies which stock are held on behalf of customers.

Cash

All client money held is held in bank accounts that are only used for holding client money. This clearly keeps client money accounts separate from accounts we use for our own money.

  • Financial Services Compensation Scheme (FSCS) If we stop trading and the segregation arrangements above didn’t work, customers classed as retail clients would be able to claim up to £85,000 through the FSCS. Your right to claim under the FSCS is unaffected by whether you have an ICS or OCS account.

There are some differences between OCS and ICS. These include differences relating to:

  • If there were any shortfalls in securities within the account if we were to become insolvent and therefore unable to act in order to remedy such a shortfall. The background and treatment of such shortfalls differs between the OCS and ICS. The associated risks and description of this can be found in point 4.3 of our ‘How we hold your assets at a Central Securities Depository (CSD)’ (PDF, 89 KB) document.
  • Charges – An ICS account requires a greater amount of time to set up and service on an ongoing basis and so there are additional costs for this type of account.

Charges

If you choose the ICS service then additional charges will apply on top of the standard charges that all customers pay. The key charges are detailed below along with an example:
 

1. ICS Service – Additional Charge

  • Set Up Fee - £1000
  • Annual Charge - £6500

2. Plus, Standard Account charges. Key charges are detailed below:

  • £36 annual admin charge per year (this one fee covers our Share Dealing Account, ISA and ShareBuilder)
  • £9.50 dealing commission per online trade
  • £25 dealing commission per telephone trade
  • Charges apply for other services. See the charges section

The costs for the ICS service are reflective of the additional activities we need to complete in order to administer your account. For example, some of our usual activities have to be completed on an individual basis and therefore the cost of the account reflects this increased administration. The charges for the ICS service cover all the Share Dealing Accounts and ISAs you hold with Bank of Scotland Share Dealing.

Ian the ICS user

Ian has opened a Bank of Scotland Stocks and Shares ISA and intends to trade periodically, clocking up one trade per quarter; he’s decided to use the ICS service.

This year Ian will pay:

Charge

Amount

Charge

ICS set up charge

Amount

£1,000.00

Charge

Customer Administration Fee

Amount

£36.00 per year

Charge

ICS annual service charge (Charged each October and pro-rated from account opening)

Amount

£6,500.00 per year

Charge

Online dealing commission (4 trades x £9.50 each)

Amount

£38.00

Charge

Stamp duty (0.5% of £19,962 - his investments minus dealing commission) -

Amount

£99.81

Charge

Total

Amount

£7,673.81

Ian’s investments total £20,000, which means that his charges are 38.4% of this.

We want you to make an informed decision about how you’d like your investments to be held. There are other providers who may offer alternative ways of gaining ‘Individual Client Segregation (ICS)’ which may have different benefits and might be more cost effective for your needs. One such way could be by means of a Crest Membership Account. Although we do not offer this type of account, you can search for providers who do on the Personal Investment Management and Financial Advice Association (PIMFA) website at https://www.pimfa.co.uk/ in the ‘Managing your Money’ section under ‘Find a Firm’.

How do I open an ICS account?

If you’d like to add the ICS service to your account you must complete both steps below:

Step 1: Open a Share Dealing Account or Stocks and Shares ISA online.

The account you open will not automatically have the ‘ICS service’ added until you complete step 2. If you already have an account you can skip to step 2.

Step 2: Complete and return the application form (PDF, 57 KB) for the ICS Service.

This will tell us to add the ICS service to your Share Dealing Account and/or ISA with us. Once we receive the form, we will collect the Set Up charge from your debit card within 10 working days. Following the Set Up Charge payment being taken successfully the conversion will take approximately 15 working days to complete. Unfortunately if this payment cannot be collected we will not be able to offer you the service. We will write to you once the conversion has taken place to inform you that the service has been added. Until we have contacted you, your account will operate as a standard account with any trades placed settling within Omnibus Client Segregation at the CSD.

Our address to send your completed form to is

Bank of Scotland Share Dealing
Lovell Park Road
Leeds
LS1 1NS

Bank of Scotland Share Dealing Service is operated by Halifax Share Dealing Limited. Registered in England and Wales No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.