What did we think was unfair?

The term gave the firm complete freedom to change its charges without telling its customers.

Why did we think it was unfair?

The firm did not have to give valid reasons for changing its charges or tell its customers about any changes. Customers were also not free to exit the contract if they did not accept the change.

What has the firm done?

The term was changed in August 2008 so that the firm could only change its charges for the reasons set out in the new Term 2 below.

Old term 1

'12.1 You will pay us a fee for our services in accordance with our published rate of Account Charges from time to time. Details of the rates of Account Charges are available on request and may be amended at our sole discretion from time to time.'

New term 1

'12.1 You will pay us a fee for our services in accordance with our published rate of Account charges from time to time. Details of the rates of Account Charges are available on request.'

What did we think was unfair?

The term gave the firm complete freedom to change its terms and conditions.

Why did we think it was unfair?

The firm did not have to give valid reasons for changing its terms and conditions, and customers were not free to exit the contract if they did not accept the change.

What has the firm done?

The term was changed in August 2008 so that changes to terms and conditions, including the firm's charges, can only be made for valid reasons. The term now sets out the reasons the firm can generally rely on to make changes. If the reason relied on by the firm is not one of those set out in the contract, customers can exit the contract freely. Customers will also usually be given 30 days’ notice before any change.

Old term 2

'25 Whole Agreements and Amendments
Except where the Rules and Regulations and the law states otherwise, the terms and conditions of this agreement shall be limited to those terms and conditions set out in the Agreement Documents. No other terms and conditions shall apply. The terms of the Agreement Documents and, accordingly, this agreement, may be varied by us by giving reasonable written notice to you.'

New term 2

'25 Whole Agreements and Amendments
25.1 Except where the Rules and Regulations and the law states otherwise, the terms and conditions of this agreement shall be limited to those terms and conditions set out in the Agreement Documents. No other terms and conditions shall apply.
25.2 We may amend these terms and conditions (including changes to applicable fees and commissions) by giving you at least 30 days notice. We will only make changes for good reason including but not limited to:
25.2.1 Making them clearer and more favourable to you.
25.2.2 Reflecting legitimate increases or reductions in the cost of providing the service to you.
25.2.3 Providing for the introduction of new systems, services, changes in technology and products.
25.2.4 Rectifying any mistakes that may be discovered in due course.
25.2.5 Reflecting a change of applicable law or regulation.
25.3 If we amend these terms and conditions for valid reasons that are not specified in this agreement and you are not happy with those changes, we will waive the existing Account Transfer/Closure fee should you wish to transfer or close your Account.
25.4 Any amendment which is made to reflect a change of applicable law or regulation may take effect immediately or otherwise as we may specify.'

Read more agreements from firms – see Unfair contracts.

Read more about Investments.

Read more about our work on Unfair contract terms.