WAYS OF HOLDING STOCK EXCHANGE INVESTMENTS

We do not usually favour insurance bonds, units trusts, or life policies which are often touted by "independent financial advisers", because there are charges and commissions which can eat away at your investments. Unless you only have a small nest egg, the most efficient way to invest is directly on the Stock Exchange.
Under our free(1) investment management service, we can do some, or all, of the following, as you wish:

• hold your share certificates in our office safe on your behalf
• act on any matter which needs attention, such as taking up rights issues or accepting an offer for your shares, after taking advice from stockbrokers.
• provide annual or half-yearly valuations of your shares and brokers' recommendations on them
• see that you have the option, if appropriate, to protect some of your investments from Capital Gains Tax and higher rate Income Tax, e.g. through ISAs (Individual Savings Accounts)
• have your holdings registered in your name care of this office, so that you do not receive company annual reports, dividend tax vouchers, and letters which need to be attended to about your holdings, while you still get dividends paid directly into your bank account
  
  You keep control: Shares cannot be sold or other changes made without your signature and/or authorisation.
  

Registered address care of Bennetts

When shares are bought, unless steps are taken to change the arrangements, all dividends, share certificates, annual reports etc will go to your home address. You will also have to notify the various registrars of your holdings of any subsequent change of address. If you have only a few shares, this is not a problem, but it can become tedious and time-consuming if you have a lot of holdings, unless you like to see and read company annual reports. We are prepared to receive the notices to shareholders, reports etc. We can also receive and keep together all your tax certificates, which we would need if we arrange for your tax returns to be prepared. Unlike where a nominee company is used, you will (unless you grant us Power of Attorney) still have to sign share transfers when a sale of stock takes place.

- with quarterly dividend payments

We would be prepared, if you wish, to receive all the dividends and issue you a quarterly payment in lieu. We would retain the interest earned from time to time on the dividend fund.

- or dividends to your bank

You can have your various dividends mandated to your bank account. In that way you receive the income somewhat less evenly, but immediately. This system should not lead to any associated bank charges if you keep your bank account in credit.

Keeping your shares under review

Neither we nor our brokers charge for checking on your list of holdings and providing an annual portfolio valuation with the brokers comments on it. If there are any transactions following on advice, there is a brokers commission. Our Terms of Business also apply.

ENHANCED SERVICES

Portfolio advisory services

A half-yearly valuation is better than an annual one. Bell Lawrie White, Edinburgh currently charge £250 plus VAT per year for a half-yearly portfolio valuation and a review of your holdings. They will also hold shares in their nominee company and collect the dividends, paying them out quarterly. Speirs & Jeffrey, Glasgow, who offer a lively and interesting view of the market, make no charge for half-yearly valuations and a commentary on your holdings.

Dematerialisation: sponsored membership of CREST

If you have very few shares or transactions each year, there may be no need to change to the paperless system.
Brokers who provide a portfolio management service are prepared to sponsor some clients so that shareholdings in UK equities can be "dematerialised". This means that each of your share holdings is recorded in electronic form. It is completely safe and the brokers who arrange this have to carry insurance against any fraud claim against them.

It also means that you should get better prices on stock exchange transactions, which instead of settling after 14 days or longer, settle under CREST after 3 days

Certain holdings cannot be dealt with in this way, e.g. stocks which are only traded on overseas markets.

Discretionary management

Bennetts are regulated by the Financial Services Authority. If you would like to entrust all decisions on the management of your investments to us, you can sign a Power of Attorney in our favour. We would, however, only act on this after taking advice from our brokers. Our charges for such a service are laid down by the Law Society of Scotland.

1. We charge for the preparation of tax returns, advice on tax matters, preparing (if instructed to do so) Asset Management Statements, acting as attorneys, notifying change of name or address or dividend payment arrangements. We may charge for keeping securities if you opt for stock dividends. We may receive 20% of the brokers commission on medium and larger-value stock exchange transactions.

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