40 Appendix three 3. Client money Under the client money rules, a firm can obtain written acknowledgement from a professional client to confirm that their money is not subject to the client money rules (CASS 7.10.9 – 10). If a professional client opts-out, its money will not be segregated from the money of the firm and used by the firm in the course of its own business, and the professional client will rank only as a general creditor of the firm. Although the professional client opt-out is available, we will not be agreeing to the opt-out and will request our money is treated as client money in accordance with the client money rules. 4. Financial Ombudsman Service (FOS) The FOS handles complaints about investments and resolves disputes for free between financial services companies and their customers without having to go to court. The services of the Financial Ombudsman Service in the UK may not be available to professional clients, unless they are, for example, consumers, small businesses or individuals acting outside their trade, business, craft or profession. Given that we will be classified as a professional client and our trade is financial services, we may not be able to take a complaint on your behalf to the FOS. Given that you have no direct contractual relationship with the DIM you may not be able to take your complaint to the FOS. We operate our own complaints procedure, a copy of which is available on request. Should you wish to make a complaint about our advice to you to use a discretionary management service, you would need to complain to us in the first instance. If the complaint related to the specific activities undertaken by the DIM, we would then liaise on your behalf with the DIM. The agreement between us and the DIM contains dispute resolution clauses. The DIM would be responsible for resolving any complaints (through us) if the complaint related specifically to the discretionary management activity, The FOS considers each complaint on a case by case basis. It would be up to the FOS to decide whether to consider a complaint directly from you against the DIM. Most advised clients also have a direct contractual with the platform. If a complaint relates to administration or trading issues, you may also have the right to complain directly to the platform and/or take a complaint to the FOS. 5. Financial Services Compensation Scheme (FSCS) The FSCS exists to protect customers of financial services firms that have failed. If a company you have been dealing with has failed and cannot pay claims against it, the FSCS can step in to pay compensation. We are a member of the UK Financial Services Compensation Scheme. You may be entitled to claim compensation from the FSCS if we cannot meet our obligations to you. This will depend on the circumstances of the claim. Any DIM that we select will also be a member of the FSCS and your money should be protected. Where a DIM service is accessed via a platform, your cash and assets will be held by the custodian used by the platform. Any custodian that we or the platform use will also be a member of the FSCS and your money should be protected. The FSCS would need to decide whether you had a valid claim against the DIM and / or custodian should either the DIM or custodian go into default. Appendix three - Consequences of categorisation as a professional client
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