1. Investments
Investments held on behalf of clients are held in our Nominee company, Rulegale Nominees Limited. This means in the event of James Sharp & Co LLP being declared in default, all client assets remain outside of the reach of any creditors of the firm. James Sharp & Co LLP does not participate in stock lending. The assets held within the Nominee company are generally held in a pooled nominee account. The firm participates in the Financial Services Compensation Scheme (FSCS) for Investments (applicable to UK residents only). Eligible investments (firm in default) are covered by the Compensation Scheme up to £50,000. For more information, please see SECTION 1.24 of Our Services & Business Terms.
2. Client Money
Monies held on deposit with us on your behalf and placed with other deposit institutions are separately covered under the Deposits Protection scheme up to £85,000, per individual, per institution, in the event that the institution fails. We hold client money in designated trust accounts with several different large regulated banks. The trust status of the accounts mean that it is protected as client money and not the firm’s own. Most of the banks we use to hold client money are also members of the FSCS and so, if a deposit institution also failed, the money is still protected under the scheme.
Please also see the SECTION 1.25 of Our Services & Business Terms.
Interest
Where any client money is held by us for you, we will pay any interest at a rate of 2.5% below Bank of England UK bank base rate. Where the Bank of England UK bank base rate is amended, we will reflect this in the rate payable to you within 31 days of the change.
Any interest payable will be credited gross to your income account at the beginning of each month. Interest is not payable in respect of monies not held in Pounds Sterling. Any difference between the rate of interest received by us on client money from any bank with whom we deposit monies and the rate paid to you is retained by us. Any interest calculated as payable to you will be treated as client money at the point it is credited to your income account.
3. Insurance
In addition to the protection offered by the FSCS, James Sharp & Co LLP has insurance which covers each claim against the Nominee company up to £3,000,000.
Please note that these terms do not apply to assets outside the Nominee Service and do not apply to other types of client.
4. Terms of Business
The comments above should be read in conjunction with Our Services & Business Terms, which are available on request.