What is your Order Execution Policy?
Updated 28 April 2016
Here we explains how we arrange for the execution of your instructions to buy or sell investments available through our Retiready offering (the “Order”).
Order Execution Policy
When we arrange the execution of an Order on your behalf, we’ll take all reasonable steps to obtain the best possible results for you in accordance with the following policy. We don’t normally accept specific instructions in relation to an Order (to buy or sell), however, if we did accept a specific instruction and followed this, it might mean that we cannot follow this Order Execution Policy and this may prevent us from obtaining the best result for you.
This Order Execution Policy is applicable to you where you’ve given us an Order through a Retiready account for retail funds (funds that are structured so that each investor owns a share of the fund).
Our approach to order handling
The key execution factor with regard to our electronic routing systems is price.
Regardless of the type of account you have with us, when we arrange the execution of an Order on your behalf, we’ll balance a number of factors to determine how to place that Order. The execution factors in terms of relative general importance are as follows:
- Price - we understand that this is probably the most important element
- Certainty of execution and settlement – for example, the likelihood that an Order will complete
- Size of the deal
- Any other relevant considerations
All dealing for retail funds
Retail funds are structured so that each investor owns a share of the fund. We deal directly with the fund manager for each fund available within Retiready. Your Order will be routed to the appropriate fund manager for execution at our next available Valuation Point (the point at which we combine all buy or sell Orders for a particular fund). Some funds cannot be routed electronically and the Order will be manually placed with the fund manager. The fund manager will deal with the Order in accordance with their execution policy. Where we combine your Order with instructions for the same retail fund from other investors (i.e. aggregated trading), we adhere to FCA rules on aggregated trading. We keep records of transactions to make sure we can allocate all completed instructions fairly and in the order in which they were placed. This method of placing orders does not impact our ability to obtain the best possible result.
Your instructions to us
When you ask us to execute an Order on your behalf, you instruct us to execute that Order consistent with the Terms and Conditions of your Retiready Account and this current Order Execution Policy.
Regular review of execution quality and the Order Execution Policy
We regularly evaluate the overall quality of executed Orders and our Order Execution Policy to make sure that it allows us to obtain the best overall outcome for our clients. Our review also allows us to make sure that our high standards are maintained and we’ll take appropriate action if a process can be enhanced. If, as a result of a review, we make any material changes to our policy we’ll notify you. We’ll also make sure this Order Execution Policy is up to date on our website.