Published: 12 March 2019
The impact of investor protection reforms that took effect in January 2018 are set to become more apparent for many people in the coming months.
The Markets in Financial Instruments Directive (MiFID II) brought in a raft of changes to strengthen protection for investors. Some mainly impact investment firms - such as a requirement for fund managers to disclose any research costs passed on to customers. But others have the potential to help investors manage their long-term finances more effectively.
Investment service providers like Alliance Trust Savings must now provide you with quarterly statements to help you keep track of your investments.
There is also the so-called 10% rule, where firms that make investment decisions for customers have to tell them if their portfolio value drops by 10% or more over a 3 month period. With recent market volatility some investors who work with these discretionary managers will already have received notifications like this, giving them the opportunity to understand what is going on and discuss with the firm concerned.
Alliance Trust Savings is an execution-only service provider, which means you make your own investment decisions. We will only send you a 10% notification for any leveraged investment you hold through us, as the rule also applies to those too.
Read our MiFID II guide to find out more about what a leveraged investment is and whether you might hold one.
There is also now a requirement for investment service providers to send you annual details of the actual costs and charges you have paid to hold your investments over the course of the year. That includes the costs and charges for the investment services you use and of each of the investment products you hold.
The first round of these Annual Costs and Charges Statements (also referred to as Ex-Post Statements) will be landing on doormats and arriving in inboxes over the coming months. You can expect yours from Alliance Trust Savings in the Spring. They will show the total one-off, ongoing and transaction costs you’ve paid both as a cash amount and a percentage figure, along with the effect those costs have had on your investment returns.
This is provided for general information only and takes no account of personal circumstances. It is not a recommendation to buy or sell. It is provided solely to support you in making your own investment decisions. If you have any doubts as to their suitability you should seek expert advice. Alliance Trust Savings does not give financial or investment advice.
Remember the value of your investments and any income from them can go down as well as up and you may get less than the amount you invested. All investments carry an element of risk which may differ significantly. Tax rules may change in the future and taxation will depend on your personal circumstances.
Alliance Trust Savings Limited is registered in Scotland No. SC 98767, registered office, PO Box 164, 8 West Marketgait, Dundee DD1 9YP; is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 116115. Alliance Trust Savings Limited gives no financial or investment advice. ‘Alliance Trust Savings’, ‘ATS’ and 'AT Savings' are all brand names of Alliance Trust Savings Limited together with the ‘Alliance Trust Savings’ logo are owned by and used with the permission of Alliance Trust PLC, the previous owner of Alliance Trust Savings Limited.