INNOVATIVE FINANCE ISA TERMS AND CONDITIONS
Date last revised: March 2023
These Terms and Conditions apply to the holding in an Innovative Finance ISA of eligible investments available through the Simple Crowdfunding website. The provisions of the Simple Crowdfunding Investor Terms and Conditions apply to the services provided by Simple Crowdfunding in respect of investments held within a Simple Crowdfunding Innovative Finance ISA in addition to these Terms and Conditions. In the event of conflict between these Terms and Conditions and the Simple Crowdfunding Investor Terms and Conditions, the provisions of these Innovative Finance ISA Terms and Conditions will prevail.
In these Terms and Conditions, references to the ISA Regulations means the Individual Savings Account Regulations 1998 (as amended or replaced from time to time) and other capitalized terms that are not defined herein shall bear the meaning given to them in the ISA Regulations, where applicable.
- Your Innovative Finance ISA account
- The manager of your Simple Crowdfunding Innovative Finance ISA is Share In Ltd ("ShareIn"). ShareIn will not facilitate the holding of investments within your Simple Crowdfunding Innovative Finance ISA pursuant to these Terms and Conditions other than IFISA eligible investments acquired or transferred through the Simple Crowdfunding website.
- ShareIn may delegate functions under this agreement to another person, including Simple Crowdfunding, where this is permitted by law. References to "we", "us" and "our" in these Terms and Conditions are to ShareIn or its delegates.
- To open a Simple Crowdfunding Innovative Finance ISA account, we must be in receipt of a completed ISA application, together with your payment where applicable (including a transfer of cash from an existing ISA) for any whole pound (£) amount falling between the minimum stated in the Offer Document and (other than for transfers from existing ISAs) the maximum annual subscription allowance for an Innovative Finance ISA.
- You may subscribe to an ISA in any tax year (i.e. period starting on 6 April of one year and ending 5 April of the following year) for which you are either resident and ordinarily resident for tax purposes in the United Kingdom; or, although non-resident in the United Kingdom, perform duties of a Crown employee which are treated as being performed in the United Kingdom, or are the spouse or civil partner of such a person.
- When you open an Innovative Finance ISA account, we will ask you to make a declaration to allow you to subscribe for an Innovative Finance for each subsequent tax year.
- In accordance with the Individual Savings Account Regulations 1998 (ISA Regulations), you are not eligible to apply if you have already subscribed to an Innovative Finance ISA, or have already subscribed the maximum available allowance to a Cash and/or Stocks and Shares ISA, in the same tax year as you are applying for this ISA. These restrictions do not apply if you are:
- transferring an existing Innovative Finance ISA from another ISA Provider to this Innovative Finance ISA (in circumstances where this is permitted under the ISA Regulations), or
- where you have already subscribed the maximum allowance to a cash and/or stocks and shares ISA and this is transferred to this Innovative Finance ISA.
- transferring an existing Innovative Finance ISA from another ISA Provider to this Innovative Finance ISA (in circumstances where this is permitted under the ISA Regulations), or
- ISA investments will be, and must remain in, your beneficial ownership and must not be used as security for a loan.
- Any documents evidencing your title to the Innovative Finance ISA investments will be held by us or as we may direct.
- We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities under the terms agreed with the investor is competent to carry out those functions and responsibilities.
- We will notify you if, by reason of any failure to satisfy the provisions of the ISA Regulations, an ISA has, or will, become void. If the failure cannot be corrected or if you fail to take any action requested by us in writing within a reasonable period of time, we may close your account by written notice.
- We are obliged to confirm the true identity of all applicants and reserve the right to decline an application to open an account from you or any deposit.
- The manager of your Simple Crowdfunding Innovative Finance ISA is Share In Ltd ("ShareIn"). ShareIn will not facilitate the holding of investments within your Simple Crowdfunding Innovative Finance ISA pursuant to these Terms and Conditions other than IFISA eligible investments acquired or transferred through the Simple Crowdfunding website.
- Payments and withdrawals
- Subscriptions can be made into your Innovative Finance ISA account by bank transfer or, where we offer this service, a transfer made in accordance with condition 7.
- If money is subscribed into your Innovative Finance ISA account which exceeds the amount prescribed in the ISA Regulations, then the excess subscription will be transferred to a Simple Crowdfunding general investment account.
- You may make withdrawals from your Innovative Finance ISA account; however, you cannot withdraw money which is invested in an IFISA investment (although you may seek to transfer the investment to another investor in accordance with the Simple Crowdfunding Investor Terms and Conditions).
- We will pay any cash sums out of your Innovative Finance ISA account within such a reasonable period as you may stipulate. This period will not exceed 30 days of the date on which you notify us of the withdrawal request.
- Your Innovative Finance ISA will be flexible. This flexibility means money which is withdrawn can be replaced (in whole or in part) within the same tax year and this will not affect your ISA subscription limit for that year. You will not be able to replace your IFISA investments after you cease to hold them in the Innovative Finance ISA account.
- Subscriptions can be made into your Innovative Finance ISA account by bank transfer or, where we offer this service, a transfer made in accordance with condition 7.
- Uninvested Cash
- Your Simple Crowdfunding Innovative Finance ISA must be fully invested into qualifying investments at all times. Cash may only be held temporarily for the purpose of purchasing those qualifying investments.
- All uninvested IFISA cash shall be held in a designated client account administered by us and that is segregated from any money belonging or due to either us or Simple Crowdfunding.
- Your Simple Crowdfunding Innovative Finance ISA must be fully invested into qualifying investments at all times. Cash may only be held temporarily for the purpose of purchasing those qualifying investments.
- Fees
- Our fees for administering your Innovative Finance ISA account are paid by Simple Crowdfunding.
- We charge fees in connection with certain transfers out of your account and dealings with third parties in the event of your death or bankruptcy. Fees are set out in the IF ISA FAQs section of the Simple Crowdfunding website
- Simple Crowdfunding reserves the right to charge a small management fee for non-invested funds. This is likely to be in the region of 0.25% per quarter, payable after the first 6 months of opening an account with us. This fee will not be charged where there are insufficient eligible investments available for investment. Investors will be notified at least three months ahead of the time should Simple Crowdfunding start charging.
- If Simple Crowdfunding does start to charge as noted in 4.3, these fees will be taken from your Innovative Finance ISA account and will not be taken from any other account Simple Crowdfunding may hold for you.
- Our fees for administering your Innovative Finance ISA account are paid by Simple Crowdfunding.
- Cancellation and account closure
- If you decide you no longer want an Innovative Finance ISA, you will have the right to cancel your account within 14 calendar days of the date your account is opened. You can do this by e-mail via [email protected]. Please note that this will cancel your Innovative Finance ISA account, but your right to cancel any investments held within it will be governed by the Simple Crowdfunding Investor Terms and Conditions.
- When your account is cancelled pursuant to condition 5.1, any money or investments credited to your account will be transferred to a standard Simple Crowdfunding general investment account. Where any IFISA investment is transferred to your standard non-ISA account as a result of cancellation, it will be treated as if the original application to invest was made directly from your standard non-ISA account. You can then proceed to use your standard non-ISA account in accordance with the Simple Crowdfunding Investor Terms and Conditions.
- If you have subscribed to your Innovative Finance ISA during a tax year and then close the account otherwise than pursuant to condition 5.1, and do not arrange with another ISA provider to transfer the money in your account to them, you will not be able subscribe to another Innovative Finance ISA with another ISA provider in the same tax year.
- If you have subscribed to your Innovative Finance ISA during a tax year and then close the account, you will be able to re-open the account with us during the same tax year.
- We may close your account with immediate written notice to you if we are directed to close it by HM Revenue & Customs or if your membership is terminated pursuant to the Simple Crowdfunding Investor Terms and Conditions.
- If you or we close your Innovative Finance account, any money credited to your account will be transferred to a standard Simple Crowdfunding general investment account. You can then proceed to use your standard general investment account in accordance with the Simple Crowdfunding Investor Terms and Conditions.
- The interest rate on P2P loans or other debt investments subscribed for within a Simple Crowdfunding Innovative Finance ISA will not change by virtue of transferring them into a non-ISA account.
- If you decide you no longer want an Innovative Finance ISA, you will have the right to cancel your account within 14 calendar days of the date your account is opened. You can do this by e-mail via [email protected]. Please note that this will cancel your Innovative Finance ISA account, but your right to cancel any investments held within it will be governed by the Simple Crowdfunding Investor Terms and Conditions.
- Death or bankruptcy
- In the event of your death, your ISA will be become a 'continuing account of a deceased investor' or a 'continuing Isa'. and will remain so until the earlier of:
- completion of the administration of the deceased's estate
- closure of the account
- third anniversary of the death of the account investor
- completion of the administration of the deceased's estate
- When we receive notification of your death, we will manage your Innovative Finance ISA account as a 'continuing ISA'. If the account has not been closed prior to the earlier of the completion of the administration of your estate (6.1.1) or the third anniversary of your death (6.1.3) it will be transferred to a standard Simple Crowdfunding investment account.
- We may require a grant of probate or letters of administration before releasing any monies in your account to your executors.
- Your Innovative Finance ISA account will be valued for probate as at the death and dealt with as instructed by your executors.
- We may support the setting up of an Innovative Finance ISA based on additional permitted subscriptions (within the meaning of the ISA Regulations) for your spouse or civil partner.
- In the event of your bankruptcy, ISA tax exemptions will no longer apply from the date on which a trustee is appointed to manage your estate.
- When we receive notification of your bankruptcy, we will close your Innovative Finance ISA account and any cash and investments will be transferred to a standard Simple Crowdfunding general investment account in the name of the trustee.
- Whilst you are bankrupt, your trustee will have the authority to request that we assign your investments and/or send monies in your account to them.
- In the event of your death, your ISA will be become a 'continuing account of a deceased investor' or a 'continuing Isa'. and will remain so until the earlier of:
- Transfers in
- You may transfer money (and approved in-specie investments) into your Simple Crowdfunding Innovative Finance ISA from an existing ISA in your name with another provider. An online Transfer Form will need to be completed.We can then arrange for the money or approved in-specie investment to be transferred to us from your existing ISA provider in accordance with your instructions in the Transfer Form and the ISA Regulations.
- The transfer process will begin on the date on the Transfer Form or the date you stipulate for us to begin the transfer process, whichever is later. We will then send your request for the transfer to your existing ISA Provider together with confirmation that we will accept the ISA transfer, within 30 days of receiving your Transfer Form. We will not be responsible for any delay to the transfer where this is due to a matter that we cannot reasonably control.
- Funds in your standard non-ISA account can be transferred into your Innovative Finance ISA account as long as they are not currently invested. Please contact us Simple Crowdfunding at [email protected] if you wish to make such a transfer, specifying the amount you wish to transfer.
- You may transfer money (and approved in-specie investments) into your Simple Crowdfunding Innovative Finance ISA from an existing ISA in your name with another provider. An online Transfer Form will need to be completed.We can then arrange for the money or approved in-specie investment to be transferred to us from your existing ISA provider in accordance with your instructions in the Transfer Form and the ISA Regulations.
- Transfers out
- If you wish to transfer your ISA to another ISA manager, the transfer must be made in cash and you cannot transfer your IFISA investments. You cannot call for repayment by the issuer of your P2P loans or other debt investments within an Innovative Finance ISA to fund a transfer out; however, where a transferee can be found, Investments within an Innovative Finance ISA can be transferred to another investor pursuant to the Simple Crowdfunding Investor Terms and Conditions.
- You may transfer all (but not part only) of the money in your account in the current tax year, together with all or parts of any money (together with interest) in your account from previous tax years to another ISA Provider in accordance with the ISA Regulations and these Terms and Conditions. You will need to contact your other ISA provider in order to arrange a transfer and you can choose the date money is transferred subject to us being allowed up to 30 days to implement that transfer.
- If you wish to transfer your ISA to another ISA manager, the transfer must be made in cash and you cannot transfer your IFISA investments. You cannot call for repayment by the issuer of your P2P loans or other debt investments within an Innovative Finance ISA to fund a transfer out; however, where a transferee can be found, Investments within an Innovative Finance ISA can be transferred to another investor pursuant to the Simple Crowdfunding Investor Terms and Conditions.
- Investments that you already own
- If you are an existing Simple Crowdfunding customer, you cannot transfer existing Investments from your Simple Crowdfunding general investment account into your Innovative Finance ISA account.
- You can sell existing investments, subject to finding a buyer and the Simple Crwdfunding Terms and Conditions, in your Simple Crowdfunding general investment account and subsequently transfer non-invested money to your Innovative Finance ISA account in accordance with condition 2.1.
- Investments held within a Simple Crowdfunding Innovative Finance ISA may, subject to the Simple Crowdfunding Investor Terms and Conditions, be transferred to an available investor and the proceeds of sale retained within the ISA pending re-investment.
- If you are an existing Simple Crowdfunding customer, you cannot transfer existing Investments from your Simple Crowdfunding general investment account into your Innovative Finance ISA account.
- Amendments to these Terms and Conditions
- We may, at any time, change the Innovative Finance ISA Terms and Conditions by giving you written notice via email. Such amendment will take effect on the date specified in the written notice. For the avoidance of doubt, these changes may impact our fees and charges, or the level of service provided. Any amendment that adversely affects you will not apply to sums already invested but will apply to re-investment of the proceeds.
- We may amend these Innovative Finance ISA Terms and Conditions if we believe it necessary in order to respond proportionally to changes in law and regulations.
- We may also amend the Innovative Finance ISA Terms and Conditions to reflect changes to our systems, administrative processes and procedures, market practice or client requirements and to reflect other legitimate cost increases (or reductions) associated with providing your Simple Crowdfunding Innovative Finance ISA.
- You will be given at least 30 days' notice in respect of any changes to these Innovative Finance ISA Terms and Conditions that adversely affect you unless the specific circumstances require a shorter or longer period. Any amendments will comply with any applicable laws and regulations.
- We may, at any time, change the Innovative Finance ISA Terms and Conditions by giving you written notice via email. Such amendment will take effect on the date specified in the written notice. For the avoidance of doubt, these changes may impact our fees and charges, or the level of service provided. Any amendment that adversely affects you will not apply to sums already invested but will apply to re-investment of the proceeds.
- ISA Regulations
- The management of your Innovative Finance ISA Account will be subject to the ISA Regulations and current HMRC practices. Any changes made by HMRC to the ISA Regulations or its practices that affect these terms will apply as soon as they come into effect.
- We will inform you if your Innovative Finance ISA Account has or will lose its tax exemption through any failure to meet the ISA Regulations. If an investment which was previously allowed under the ISA Regulations ceases to be allowed, we will notify you and request your instruction to either dispose of the investment and reinvest the proceeds in the account or transfer it out of the ISA account and into your non-Isa account.
- The management of your Innovative Finance ISA Account will be subject to the ISA Regulations and current HMRC practices. Any changes made by HMRC to the ISA Regulations or its practices that affect these terms will apply as soon as they come into effect.
- General
- These Terms and Conditions are governed by and to be construed in accordance with English law. In the event of any matter or dispute arising out of or in connection with these Terms and Condition, you and we shall submit to the non-exclusive jurisdiction of the English courts.
- If any of these Terms and Conditions is found to be illegal, invalid or unenforceable by any court of competent jurisdiction, the remainder shall, so far as possible, continue in full force and effect.
- No single or partial exercise, or failure or delay in exercising any right, power or remedy by us shall constitute a waiver by us of, or impair or preclude any further exercise of, that or any right, power or remedy arising under these Terms and Conditions or otherwise.
- We and Simple Crowdfunding may exercise any of our rights or discharge our obligations under these Terms and Conditions in our or Simple Crowdfunding's own capacity or through any company or other legal entity which has all relevant legal authorisations, licences or permissions to discharge those functions. Other than Simple Crowdfunding, which shall be entitled to exercise rights under these Terms and Conditions, no other person shall have rights to enforce terms under the Contracts (Rights of Third Parties) Act 1999.
- If Simple Crowdfunding or ShareIn enter a wind down scenario, it is possible that your ISA holdings may lose their ISA wrapper, for example if it is not possible for the holdings to be transferred to an alternate ISA manager.
- These Terms and Conditions are governed by and to be construed in accordance with English law. In the event of any matter or dispute arising out of or in connection with these Terms and Condition, you and we shall submit to the non-exclusive jurisdiction of the English courts.
- Contact
If you have any questions about these Terms and Conditions, please contact Simple Crowdfunding by email at [email protected] or by post to: Simple Crowdfunding at HQS Wellington, Temple Stairs, London, WC2R 2PN.