We will provide this to you on a regular basis as part of your annual statement. Should you choose to close your account during the year then ex-post costs and charges information will be provided as part of your closing statement.
What is MIFID II?
New industry-wide legislation was introduced on 3 January 2018 that may affect your ability to trade on Smart Investor. If you’re confused by the changes, we explain everything you need to know below.
Background to the information we provide you on costs and charges relating to your investments
Since January 2018, as a result of new regulation introduced to the financial services sector (MiFID II), we have provided you with indicative costs in relation to your investments prior to each trade. This is known as an ex-ante disclosure.
Moving forward, in order to provide you with greater transparency we will also send you an annual summary of the actual costs and charges you have paid between 1 January and 31 December each year for these investments. This is known as an ex-post disclosure, and we will include it within your annual statement.
How often will I receive ex-post costs and charges information? How often will I receive ex-post costs and charges information?
What information is in the ex-post costs and charges part of my statement? What information is in the ex-post costs and charges part of my statement?
The ex-post information will show an itemised breakdown of costs and charges per instrument held.
Costs are shown for both Product costs, which are costs charged by the product provider and Service costs, which are costs charged by Smart Investor.
The information itself is set out in a format which closely mirrors the format of your statement although it will provide more in-depth information specifically in relation to any costs and charges applied against your investments.
No – there is no change to the costs you currently pay. This is simply a new regulation which aims to provide you with increased information and transparency regarding any costs and charges relating to your investments.
What currency will my ex-post costs and charges be shown in? What currency will my ex-post costs and charges be shown in?
All information shown within the ex-post costs and charges section will be in GBP.
Please note that whilst all information shown is only in GBP, we may revisit this in the future so that further details of currency conversion transactions are included, e.g. where an investment quoted in Euros has been purchased in GBP and has involved an exchange rate.
What if I don’t want to receive ex-post costs and charges information? What if I don’t want to receive ex-post costs and charges information?
Under MiFID II regulations, we are legally obliged to provide this information, therefore you’re unable to opt out of receiving this. It will be included as part of your regular annual statement.
What is the difference between ‘Asset % per field’ and ‘Total % per field’? What is the difference between ‘Asset % per field’ and ‘Total % per field’?
Asset % per field – The % fields are calculated from the relevant cost and charges and are based on the specific asset level investment each day during the reporting cycle. The “Total %” pertains to the specific investment within that asset row. This means when calculating across a specific Product costs % field, the Total % will equal that asset’s costs.
Total % per field – The Total % cost and charges are calculated each day based on the cumulative view of all of your account investments during the reporting period. For this reason, the % within the “Total” at the bottom of your statement will differ from that of the total of each underlying specific asset.
My account is closed; can I still request an ex post statement? My account is closed; can I still request an ex post statement?
Yes, if you have held a Smart Investor account during 2018, we can provide an ad-hoc ex post statement upon request.
I got this document in the post. Can I change this to get it online only? I got this document in the post. Can I change this to get it online only?
Yes, you can change your document preferences by logging in online and by selecting Investment Settings, Important Documents and from there you can tell us how you would like to receive documents from us going forward. To go paperless you would select the ‘online only’ option where all documents will be added to the ‘My Barclays Documents’ which you can view when you are logged in to our website or through the Barclays Mobile Banking app.
What happens if I don’t provide the details of my nationality? What happens if I don’t provide the details of my nationality?
You’ll still be able to use your account but you won’t be able to buy and sell shares, Exchange Traded Funds (ETFs), investment trusts or bonds, or a number of other stock market-listed investments. To set up any orders, regular investments or automatic dividend reinvestments, you’ll need to confirm your nationality.
You also might not be able to take part in some corporate actions for investments that you already hold. As soon as you provide us with the information requested, you’ll be able to trade as normal.
We have a joint account, do we both have to provide nationality? We have a joint account, do we both have to provide nationality?
Yes. If you have a joint account with us, as joint owners, you’ll both need to provide these details before either of you can trade – even if only one person actively manages the account.
MiFID II regulations mean that some stocks are currently not available to purchase. That’s because we haven’t been provided with all the key information you’d need to be sure the investment is appropriate for you. Some assets must have a Key Information Document (KID) and/or details on costs and charges available before investors can purchase them. Please check any managed orders or regular investments you have, as you may find these haven’t been processed. We’re working closely with the relevant parties to resolve this as quickly as possible.
If you currently only hold funds you won’t need to provide us with this information right away. We’ll ask you for it the next time you log in or call us.
If you’re a UK national only, we’ll ask you to confirm this and provide your National Insurance number. If you have multiple nationalities or are a non-UK national, once you’ve confirmed your nationality, we’ll ask you for your passport number or national/personal identity number.
You should be able to find your National Insurance (NI) number on a work payslip. If you’ve lost your NI number, you can find more information on what to do on the Government’s official website.
What if another area of Barclays has already asked me for this information? What if another area of Barclays has already asked me for this information?
If you have other accounts or services with Barclays, you may receive similar requests for this information. Please respond to each request independently to make sure that the correct details are held for you across all your accounts and services.
How does MiFID II affect me if there’s a Power of Attorney on my account? How does MiFID II affect me if there’s a Power of Attorney on my account?
In most cases both the Attorney and the account holder will need to provide the required information before the Attorney can trade.
I am the legal guardian of a Child SIPP – whose details do I provide? I am the legal guardian of a Child SIPP – whose details do I provide?
We’re required to confirm the nationality of both the legal guardian and the child.
Do I need to complete another knowledge check if I’ve already done one? Do I need to complete another knowledge check if I’ve already done one?
As part of MiFID II, an appropriateness assessment is required when purchasing a complex investment product through a non-advised service, such as Barclays Smart Investor. We’ll ask several questions relating to your knowledge, experience and understanding to determine if the investment is appropriate for you.
Separately, knowledge checks are required upon your first purchase of a non-complex product.
Please note that if there is a period of 12 months where you’ve not placed a trade in one of those asset types, you’ll be asked to take the appropriateness assessment or knowledge check again.
What happens when I open a new Smart Investor account? What happens when I open a new Smart Investor account?
If you’re an existing Smart Investor customer and you haven’t already provided your nationality details, you’ll be asked to do this before your new account is opened. You’ll also be presented with a full overview of costs and charges associated with the account, which you’ll be asked to read and accept.
If you’re a new Smart Investor customer, you’ll be asked to provide your nationality details whilst completing your application. You’ll also be presented with a full overview of costs and charges associated with the account, which you’ll be asked to read and accept.
Why am I now seeing more information about costs and charges? Why am I now seeing more information about costs and charges?
You’ll now see more detail around the costs and charges associated with investing with Smart Investor.
That’s because MiFID II legislation requires us to provide you with information about all costs and charges, presented in a standard format. You’ll generally see:
- A breakdown of your costs and charges
- Worked examples of how much you might pay, using some typical portfolios
- A clear picture of the total cost – taking everything into account such as taxes and third party costs and charges.
More specific detail will be given each time you place a trade.
Why do I need this information and what are you going to do with it? Why do I need this information and what are you going to do with it?
The rules of MiFID II require financial services companies, like Barclays, to collect additional information about our customers. Specifically, we require customers who want to buy or sell shares, ETFs/ETCs, investment trusts, bonds and a number of stock-market listed investments to confirm their nationality and provide us with what is known as a ‘national client identifier’ such as a National Insurance number. For every share, or other listed investment, trade you place, we will now share your nationality and National Client Identifier along with your first name, surname and date of birth with the Financial Conduct Authority (FCA).