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Bed and ISA

Our bed & ISA tool is a one-click instruction to sell assets in an GIA, subscribe the proceeds into an ISA or junior ISA, and then invest the cash in the ISA.

There is no extra charge for this and virtually no out of market time between sales and buys.

Transcript

We know that a crucial part of financial planning is to maximise tax allowances for clients, including the all-important annual ISA and Junior ISA allowances. This can either be funded by new money from your client or by using existing assets held in a 7IM GIA. We therefore have a bed & ISA tool to enable you to easily use these GIA assets to fund an ISA.

This tool will allow you to:

  • Sell assets in a GIA
  • Subscribe the proceeds to an ISA or Junior ISA; and
  • Invest the ISA subscription into your choice of investments

All this within a single online instruction with virtually no out of market exposure and no charge.

To access this tool, go to Transactions > Bed & ISA > Instruction

From here you can choose the client, choose the GIA to sell the assets from, and choose the ISA to subscribe into and invest the assets in.

Please note that if you want to sell assets from multiple GIA sub accounts, you will need to submit a separate bed & ISA instruction for each sub account.

For the sales in the GIA you will be able to:

  • Sell proportionally across all the assets in the portfolio with or without cash
  • Sell specific monetary amounts from specific funds in the GIA
  • Sell percentages of each fund
  • Use cash that is already in the GIA to either add to the fund sales or instead of doing any sales

Please note that all sale trades have to be monetary amounts so you cannot sell a certain number of units of a holding (for example liquidating an entire holding). This is because the sale proceeds will be unknown at the time you submit the bed & ISA instruction and therefore we won’t know how much the ISA subscription or ISA buys should be for. If you want to do this kind of sale trade, please do it separately on our platform using our dealing screen and then you can use this tool once those sales have settled.

For the buys in the ISA you will be able to:

  • Invest in the DFM model that the ISA is already linked to
  • Invest into your own advisory model portfolio
  • Invest in your own choice of funds
  • Replicate the investments sold in the GIA by clicking the Copy sales button

The remaining ISA allowance figures will include any withdrawals do you can make the most of our flexi ISA. These figures are updated weekly so might not reflect any subscriptions or withdrawals done very recently. You can check all the clients’ allowances by downloading the Unused ISA allowance report from our platform.

If your client hasn’t subscribed to a 7IM ISA in the current or previous tax years, you will also be able to use this tool to confirm that your client wishes to restart their ISA subscription with 7IM. You can do this by ticking the box at the bottom of the screen and confirming the ISA declaration. The bed & ISA instruction can then proceed and we will confirm the ISA subscription restart to your client in writing.

Once you have submitted the bed & ISA instruction, it will be visible on the History screen which can also be exported to Excel.

Where a bed & ISA instruction is submitted before 2.30pm on a working day, we will normally process this by the end of the day.

Both the GIA sales and the ISA buys will get done simultaneously at the next available valuation point for each asset. This means that there will be no out of market time between like for like GIA sales and ISA buys.

Bed & ISA instructions submitted after 2.30pm will be processed the following working day.

Most transactions will be visible in the client’s transaction history on our platform a day or two after the bed & ISA instruction has been submitted. Trades in ISA sub accounts, however, will take a few days longer to appear (once the GIA sales have settled).

Standing Investment Instruction (SII)

A Standing Investment Instruction (SII) allows you to automatically invest new lump sum and cash transfer monies into a set of investments of your choosing, reducing the work and risk to your business. This video explains how to create and manage these instructions online. You might also like to read our Standing Investment Instruction guide for more detail.

Transcript (Part 1)

The 7IM Platform enables you to create and maintain a set of investment instructions that will automatically apply to new cash transfers, lump sums, or regular contributions that get deposited into a 7IM account. This is known as a Standing Investment Instruction or SII for short.

In this video, we’re going to look at how these can be created and amended and also the various tools available on our platform to help you manage your clients’ SIIs.

CREATING A SII

There are two ways in which a Standing Investment Instruction can be created:

  1. For new accounts
  2. For existing accounts

New accounts

When you use our online application tool to open new GIA, ISA, or 7IM SIPP account, you can set up the Standing Investment Instruction as part of the application.

During this process, you can choose whether this SII should apply just to the first payment only that arrives in the account or to all future payments. Choosing all future payments means that these instructions will remain attached to the account indefinitely until either you cancel them or they reach a specified end date. So if another contribution or cash transfer happens in the future, this will automatically be invested for you, minimising the risk that the client accidentally remains in cash, out of the market, and also reducing the amount of work that you have to do.

To see more about our online application tool, please watch the separate video in our Help Centre.

Existing accounts

You can also create a Standing Investment Instruction for any existing 7IM account, not just GIA, ISA, & 7IM SIPP.

To do this, go into the client account area and click on the Manage Investments tab.

The Standing Investment Instructions tab will list all the accounts that the client has on our platform and if there is no SII set up on that account, you will be able to create one by clicking the Add button.

In the SII screen, you can specify if all future cash deposits should be split between the available sub accounts… then you can choose the relevant investments for each sub account. This can be searching for a particular fund, choosing a model portfolio, or selecting funds from your Favourites list. For more about creating a Favourite funds list, please watch the separate video in our Help Centre.

You can also include an allocation to cash alongside each investment.

If you want to keep just cash in a particular sub account, then you don’t have to select an investment and the allocation can remain 100% in cash.

Finally, you can add an end date for this SII if you don’t want it to continue indefinitely.

Once you have finished, click the Create button and then again in the Confirmation pop-up message. The SII is now live and will apply to the next cash deposit that arrives in this account.

TOOLS

The 7IM Platform also has a number of tools to help you manage your clients’ SIIs.

Manage Investments Tab

In the Manage Investments tab of the client account area you can view, amend, or cancel an active SII for a client.

To view the details of the SII, click on the Edit button against the relevant 7IM account.

From here, you can make any changes to the SII, including the splits between sub accounts, different weightings between funds and cash, choosing different investments altogether, or adding an automatic end date for this SII. If you do make any changes, please remember to click Update for these to be saved.

The History button will export any changes that have been made since the SII was originally created, into a CSV file so that you have a complete history for your records.

If you would like to cancel the SII altogether, you can click on the cross at the end. You will see a confirmation message pop up and by clicking on the Delete button, the SII will be cancelled instantly.

SII Menu

Under the Transactions menu, you’ll find a dedicated Standing Investment Instructions section for your firm.

Here you can see all the active SIIs that your clients have set up and by expanding the view, you can see the details of each SII. To amend or cancel these, you can go to the Manage Investments tab for that client as we looked at earlier.

In this section, you can also see a history of the cancelled SIIs over a given date range which can be exported into Excel.

Perhaps most importantly, there is a tab called Awaiting Action which will display any transactions that require your attention and action.

Sometimes, even though you have set up an automatic instruction, there are situations where it isn’t clear what we should do with the cash that arrives in the client’s GIA, mainly connected to our process of subscribing new ISA contributions from the client’s GIA.

Transcript (Part 2)

If, for example, some new cash is deposited into a GIA for a client who also has an ISA, and that ISA has an automated SII set up on it, then there’s a possibility that you might be looking to use some of this cash to make an ISA subscription for this client. Therefore, it wouldn’t be helpful if it all got invested in the GIA.

Because of this, and a handful of other scenarios, we hold fire on carrying out the automatic investment and allow you to decide what you want to happen with that cash.

You can either proceed with the SII by clicking on the Invest In Portfolio button or leave the money in cash by selecting the Leave In Portfolio button.

If there is an ISA subscription set up as part of the online application but the deposit amount received doesn’t match the ISA subscription (perhaps because the client has transferred two amounts to make up a full year’s subscription), then you’ll also be able to use the Transfer to ISA option, after double clicking in the Select ISA column to select the relevant ISA from the drop down menu.

There is also an alert section on our platform homepage to let you know, when you log on, if you have any SII notifications that require your attention. Please keep an eye on this dashboard so that you can take the appropriate action quickly.

New Platform Assets Report

Within the practice level reports on our platform, we have a report called a New Platform Assets report which shows a list of all the assets, both cash and in-specie, that land on our platform over the selected date range. This includes both money from clients and also transfers.

Many firms use this report regularly to track money that arrives on our platform to ensure that any cash gets invested, particularly where a Standing Investment Instruction hasn’t been set up for that client and hence you would invest that money yourselves online.

To help you identify whether you need to take action for any cash received, this report includes information about whether that account has an active SII set up or not and, for cash received into a GIA, whether the GIA is linked to an ISA for the purposes of possible ISA subscriptions.

For historical transactions it will also show whether there was an active SII at the time the cash was received, even if the SII has since been cancelled or ended.

We hope that you find the Standing Investment Instruction functionality useful.

Creating a favourite funds list

Create your own list of funds to use in research, building model portfolios and buying and selling.

Transcript

Here we’re going to look at how you can create, and use, a list of your favourite funds. Doing this will make it much easier when adding investment instructions to an online application, creating or amending a standard investment instruction for an existing account, doing bed & ISA, building a model portfolio and investing via our dealing screen.

The Favourite Funds List is unique to a particular user at a firm, so each user within a firm, can create and view their own list.

To create or manage your list, go to the Security Search section within our Research menu.

You can find a fund by typing in either the SEDOL code or the name. You can also use the percentage symbol before a word to search for that word anywhere in the fund name. For example, I can type in %AAP to find any fund with AAP in its name.

Once you’ve found the fund that you want, click Add to include it in your favourites list below.

When you’re adding the investment instructions to a new online application or if you’re amending the standard investment instruction for an existing account, you can click on the Favourites button to select the funds from your list, rather than searching for them again.

Similarly, when you’re placing trades yourself in our dealing section, you can click on the Favourites button to choose the funds from your list.

When submitting a bed & ISA instruction, you can also click on the Favourites button to choose the investments within the ISA.

You can also use this list when building or amending a model portfolio. Once you click on Add Securities within the model portfolio, you’ll be able to click on the Favourites List button to select one or more funds from your list.

We hope you find this tool useful.

For more information about opening accounts online, editing your standard investment instructions, doing a bed & ISA or submitting trades on our platform, please watch our other videos on our help centre.

Ad-hoc selling and withdrawing

This video will show you how you can request an ad-hoc withdrawal that is funded by asset sales. The withdrawal will ‘queue’ while the sales complete and will then get paid out automatically.

Transcript

Here we’re going to look at how you can arrange a sale and a cash withdrawal instruction at the same time and have the withdrawal automatically paid out on completion of the sale.

To do this, first place the sale by going to our Instruction To Deal menu. Please watch our other video if you want to know more about placing sales.

Once you have placed a sale, please go to the cash movements screen and select the client and the portfolio that you wish to make the withdrawal from.

As you can see, the Available Cash figure now includes the value of the sale I have just placed, so I can submit the withdrawal for that amount.

Our platform will hold on to this instruction and carry out a daily check of the cleared cash balance of this account. Once the sales have settled, and the cleared cash balance the following day is sufficient for this withdrawal, the payment will automatically be made to the client’s nominated bank account. Also, don’t forget that all withdrawals are paid out by CHAPS free of charge.

Please watch our other video if you want to know more about how you can amend a client’s nominated bank account.

How to invest cash

There may be times where you will need to invest cash from a client’s account, especially if you’re not using the automated Standing Investment Instruction (SII) tool. Watch this video to find out how you can easily to do this.

Transcript

Investing cash on our platform is normally done automatically using our Standing Investment Instruction tool, either as a result of a new online application or an instruction created afterwards for an existing account. For more about this process, please watch our video and read our guide.

However, there might be times when you want to do this investment yourself manually, so this video will show you how.

Firstly, go to Transactions > Instruction to deal. This will take you to our dealing screen.

There are multiple dealing tabs here depending on what type of investment you want to do. In this video, we’re going to focus on investing new cash into individual funds. Please watch our other videos if you want to invest in a DFM model portfolio service or if you’re looking to sell or switch assets.

As with all our dealing tabs, you first need to select a client, then a tax wrapper or sub account within a tax wrapper. You will see the available cash amount on the screen for the account that you have selected. This figure will reduce as you allocate it to each investment.

Next, you need to choose an investment. In this case we’re going to choose a couple of funds. When searching for the funds, it is best to use the SEDOL code rather than searching by name.

Better still, you can save funds in a Favourites List and then choose from here. Have a watch of the Favourite Funds List video for more about how this works.

As you select each fund, the trade gets added to the Order Sheet below. You can think of your order sheet as a sort of shopping trolley, where you can add the various trades you want before checking out and sending it to us.

In this case, it means that you can add investments for multiple tax wrappers and multiple clients to your order sheet, before submitting the whole lot to us in one go. This should save you time compared with having to get to the end of the trade process for one client and then start again for another client.

The order sheet will also prevent you from buying suspended funds, funds that are ineligible for that tax wrapper, or accidentally investing more cash than the client has in that account.

Once you have added all the trades you want to do for your clients, click on the orange Submit button. This will take you to a summary screen where you can do one final review of your order.

If you’re happy to proceed, then click the Submit button and a confirmation box will appear. Finally, click Confirm to complete the instruction.

You will be taken to a My Orders page where the trades that you have just submitted will be showing as In Progress. Once they have been executed in the market, they will move to the Completed tab. This is also mirrored in the client account area where you’ll also be able to see the details of the trade and a contract note for the trade in the client’s transaction listing. There, you’ll also be able to see the expected settlement date of each trade.

Please note, that as trades are immediately sent to the fund managers when you click Confirm, it is not possible to cancel them.

How to sell assets

Whether you want to make a sale to make a withdrawal or to create cash in a client’s account, this video will show you how.

Transcript

Here we’re going to look at how you sell assets on the 7IM platform to raise cash. If you want to know more about setting up a regular sale, then please watch the Regular Withdrawals and Sales video on our Help Centre page.

Firstly, go to Transactions > Instruction to deal to get to our dealing screen.

There are 3 tabs relating to selling assets:

  • Raise Cash – where you want to generate a specific monetary amount. This is the most popular.
  • Sell Units – where you want to sell a specific number of units or shares or a proportion of a holding
  • Liquidate – where you want to sell an entire holding

As with all our dealing tabs, you first need to select a client, then a tax wrapper or sub account within a tax wrapper, and then you choose the assets you want to sell.

When you are using the Raise Cash option as I am here, you can either choose to sell a particular fund – called a Single Order – or you can sell proportionally across all the funds held. You can also choose whether to include any existing cash in the calculation or just the assets.

Once you have selected your sale trade type, it gets added to the Order Sheet below. You can think of your order sheet as a shopping trolley where you can add the various sales you want to do before checking out.

The order sheet will also prevent you from selling suspended funds or accidentally selling more units than the client has in that account.

If you are selling direct equities or ETFs, where we can only sell whole numbers of shares, the system will automatically round up to the nearest share, if you’re selling more than one, or round down to zero if you’re selling less than one. You may therefore want to adjust the total amount of the sale to allow for this.

Once you have added all the trades you want to do for your clients to the order sheet, you can click on the orange Submit button. This will take you to a summary screen where you can do one final review of your order.

If you’re happy to proceed, click the Submit button and a confirmation box will appear. Click Confirm to send us the trades.

You will be taken to the My Orders page where the trades that you have just submitted will be showing as In Progress. Once they have been executed in the market, they will move to Completed. This is also mirrored in the client account area where you’ll also be able to see the details of the trade and a contract note for the trade in the client’s transaction listing. You’ll also see the expected settlement date of each underlying trade.

Please note that as trades are immediately sent to the fund manager once you click Confirm, it is not possible to cancel them at this stage.

From here, you may want to place a withdrawal. For more details about this, please watch the relevant video in our Help Centre.

Using a Discretionary Model Portfolio Service (MPS)

The 7IM platform is well suited to investing in a discretionary model portfolio service (MPS) either from 7IM or other investment managers. New investment into a MPS is usually done automatically as a Standing Investment Instruction (SII). However, in the instance of an existing account, an in-specie transfer, or a change in DFM model, you can do this yourself by following the instructions in this video.

Transcript (Part 1)

7IM Platform for DFM MPS

The 7IM platform is well suited to investing in a discretionary model portfolio service (or MPS) for clients. Our platform is open architecture and we can add new investments quickly, meaning discretionary fund managers (or DFMs) can choose whatever investments they wish, including any special share classes offered specifically to them by fund managers. And, as we have no trading charges, it means that DFMs don’t have to exclude assets such as ETFs or AIM-listed shares that often incur brokerage charges.

Our platform can also facilitate multiple sub accounts within each tax wrapper, enabling you to run multiple investment strategies for a client, inside a single tax wrapper. This could involve multiple DFMs or a DFM model plus other investments, including cash.

And our reporting is designed to cater for the requirements of investing in a discretionary MPS. This includes transaction reporting and performance benchmarking in the client’s quarterly statement, separate DFM charges in the client’s account, and MIFID 10% drop notifications on our platform.

7IM as a DFM

Of course, 7IM is an investment manager and we offer a variety of discretionary model portfolios on our platform, making full use of the open architecture flexibility that our platform provides. For more information about our MPS, go to the model portfolio section on our website.

Other DFMs

There is also information on our website about some of the other DFMs currently offering their model portfolio service through our platform. Please contact us if you want to use a DFM not shown.

Access to DFM models

In order to use a DFM model portfolio, we first need the authority of the DFM to grant access to your firm via our platform. Please ask the DFM to contact us or give us their details and we will contact them.

Once you have access to the DFM’s models, you will be able to use them in your illustrations, new online applications, Standing Investment Instructions, and our dealing screen.

Please watch our other videos to learn more about how to create an illustration, how to use our online application tool, and how to set up Standing Investment Instructions to automatically invest new cash into a DFM model.

Although most cash investments are automated using our SII tool, there might be times when you want to do the trade yourself, such as after the completion of an in-specie transfer or to change DFM model.

Manual DFM Authority Form

In this scenario, we will need to record the client’s agreement to the DFM, and the ongoing DFM fee in particular, and therefore we have this Appointment of Third Party Discretionary Model Portfolio Manager form for the client to sign. This is available to download from our literature centre. Please return the completed form to us and we will record this on our system. Please note that we will need to do this before you move on to the next stage.

Rebalancing

In order to link the client’s account to the DFM model, you will need to action a rebalance trade. This will bring the investments in the client’s account in line with the DFM model and also create the link to the model so that the account gets included in any future DFM rebalance.

To do this, go to Transactions > Instruction to deal and then select the Rebalance tab (not the Model Portfolio tab). Then choose the client, choose the wrapper or sub-account, and then the DFM model.

At this point you have the option of exporting a preview of the rebalance calculation into a spreadsheet. This preview will show you all the individual buy and sell trades that the rebalance will carry out, complete with the current and model fund weightings. It also contains an estimate of the gains or losses from each sale trade which can be useful if you are trying to manage the client’s CGT position.

Click on Create Order to add the rebalance trade to your order sheet, where you can also see the underlying buy and sell trades mentioned earlier by clicking the expand arrow next to Rebalance. Then click Submit to take you to a summary screen, where you can do one final review of your order.

If you’re happy to proceed, then click the Submit button and the next button. Finally click Confirm to send the trade instructions to us. Please note that once you click Confirm, it is not possible to cancel the trades.

You will be taken to a My Orders page where the trades that you have just submitted will be showing as In Progress. Once they have all been traded in the market, the rebalance will move to a Completed tab. This is also mirrored in the client account area, where you’ll also be able to see the details of the trades and a contract note for the trade in the client’s transaction listing, along with the expected settlement date of each trade.

With a rebalance that consists of sales and buys, we will carry out the sale trades first, at the next available dealing point for each fund, along with any buys that can be done using the available cash in the client’s account. Any remaining buy trades will be queued by our platform and traded over the following few days depending on when the sales are due to settle.

As soon as the rebalance has been submitted you will be able to see the link to the DFM model appear against the client’s account. This link, which includes the name of the model, will also be visible in the client’s quarterly 7IM statement.

Transcript (Part 2)

Delinking from a DFM

There may be times when you want to delink an account from a DFM model, such as if you no longer wish the DFM to manage the assets, if the account is due to be closed, or on a temporary basis to deliberately avoid an upcoming rebalance, perhaps for CGT purposes.

To do this, go to the Tools menu and then Portfolio Groups. A Portfolio Group is a group of accounts that are linked to a particular DFM model and clients are automatically added to this when you invest in a DFM model. So choose the group that relates to the model in question, ensure only the account you wish to delink from the model is ticked on the right hand side and then click the Remove button. Finally click Save at the bottom to delink this account.

In order to relink an account to a DFM model, you will need to rebalance the account as we described earlier.

Other areas where a DFM model is used

If an account is linked to a DFM model, then this model will be the only investment choice in the Model Portfolio tab in our dealing screen, our bed & ISA tool and also our regular investment tool. This ensures that any new investment that isn’t automatic via our SII process, goes into the same strategy and thus avoids the account holding conflicting investments.

To see a list of your clients that are linked to a DFM, you can either look at the relevant portfolio group that we mentioned earlier, or you can download the Ongoing Fees report from the Practice Administration reports menu. This report will show all the accounts and sub accounts that your clients have on our platform and, along with various other bits of information, which ones are linked to a DFM model.

For more information about using discretionary models on our platform, please read our platform adviser user guide or contact your platform relationship manager.

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