Please read your BondMason ISA Terms and Conditions. You must accept these terms and conditions in order to open your BondMason ISA account. These terms and conditions will apply in conjunction with the General Investor Terms and Conditions.
1. Your BondMason ISA account
1.1. Your BondMason Individual Savings Account (your “BondMason ISA Account”), will be an Innovative Finance ISA (IFISA).
1.2. The ISA Manager of your BondMason ISA is Northern Provident Investments Limited, which is authorised and regulated by the Financial Conduct Authority. We have arranged for the ISA Client Money Services Provider, GCEN, to hold the client monies in relation to your BondMason ISA.
1.3. The BondMason ISA is only available to customers who have an Investment Account in their sole name and who are solely beneficially entitled to any cash or investments in the BondMason ISA.
1.4. As explained in the Brochure, the BondMason ISA invests in Bonds issued by Absolute Return Bond I Ltd or an Absolute Return Bond I Ltd Associate and pay a fixed rate of interest. Your BondMason ISA investments (i.e. the Bonds) will be, and must remain in, your legal and beneficial ownership and must not be used as security for a loan.
1.5.Your first Subscription will be invested in Bonds on the first Bond issue date (which issue dates are set out in the Brochure) after the expiry of the 14-day cancellation period explained in paragraph 4.
1.6. The contractual terms for your BondMason ISA comprise these BondMason ISA Terms and Conditions and your completed Application together with the additional terms and conditions to which these BondMason ISA Terms and Conditions refer.
2. Opening your BondMason ISA Account
2.1. To open your BondMason ISA Account, you must submit a completed Application, together with your payment of any amount between the minimum Subscription indicated in paragraph 3.4 and up to the maximum annual Subscription allowance for a BondMason ISA as per paragraph 3.5.
2.2. You may subscribe to an ISA in any Tax Year (i.e. period starting on 6 April of one year and ending 5 April of the following year) for which you are either resident and ordinarily resident in the United Kingdom; or, although non-resident in the United Kingdom, perform duties of a Crown employee which are treated as being performed in the United Kingdom, or are the spouse or civil partner of such a person.
2.3. In your Application, you must make a declaration in the required terms set out in our Application. Making this declaration will allow you to subscribe for a BondMason ISA in the Tax Year that you make the declaration and for each subsequent Tax Year, provided you make a Subscription to your BondMason ISA every Tax Year. If you do not make a Subscription to your BondMason ISA one year, then when you next want to subscribe to your BondMason ISA you will have to make a new declaration.
2.4.If your Application is accepted by us, we will confirm the opening of your BondMason ISA Account with us. (We may decline an Application to open a BondMason ISA Account.)
2.5. In accordance with the ISA Regulations you are not eligible to apply if you have already subscribed to another IFISA in the same Tax Year, or if you have already subscribed the maximum available allowance to a cash ISA and/or stocks and shares ISA and/or lifetime ISA, in the same Tax Year as you are applying for this IFISA. These restrictions do not apply if you are:
2.5.1. transferring an existing IFISA from another ISA provider to the BondMason ISA (in circumstances where this is permitted under the ISA Regulations), or
2.5.2. where you have already subscribed the maximum allowance to a cash and/or stocks and shares and/or lifetime ISA and this is transferred to this IFISA.
2.6. If you have any questions, doubts or issues relating to ISAs or your eligibility to hold an ISA, you should consult the HMRC website (https://www.gov.uk/government/organisations/hm-revenue-customs) or contact them directly.
2.7. Any documents evidencing your title to the Bonds investments in your BondMason ISA Account will be held by us or as we may direct.
2.8. We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities under the terms agreed with you is competent to carry out those functions and responsibilities.
2.9. We will notify you if, by reason of any failure to satisfy the provisions of the ISA Regulations, your BondMason ISA Account has, or will, become void. If the failure cannot be corrected or if you fail to take any action requested by us in writing within a reasonable period of time, we may close your BondMason ISA Account by written notice.
2.10. If you do not place any money in your BondMason ISA Account during a Tax Year, you will need to make a new declaration should you wish to make subscribe to your BondMason ISA Account in the following Tax Year.
2.11.We are obliged to confirm the true identity of all applicants and reserve the right to decline an application to open a BondMason ISA Account from you or accepting any subscriptions. We may pass your personal information to a third-party identity and verification service in order to complete our identity and money laundering checks.
2.12. You must inform us if any declarations or confirmations you have made about your eligibility to hold an ISA no longer apply.
2.13. You must inform us immediately if you are no longer a UK resident or cease to perform duties of a Crown employee which are treated as being performed in the United Kingdom, or cease to be the spouse or civil partner of such a person.
2.14. The BondMason ISA Account is subject to the fees detailed in the schedule in paragraph 16 below.
3. Subscriptions and withdrawals
3.1. All cash in your BondMason ISA Account will be held by our ISA Client Money Services Provider.
3.2.Subscriptions can be made into your BondMason ISA Account by transfer from your Investment Account. You can do this through the online BondMason ISA application portal: https://www.bondmason.com/chiltern-bondco
3.3. All Subscriptions must be in cash.
3.4. The initial Subscription into a BondMason ISA Account must be at least equal to the minimum required investment amount stated in the Brochure.
3.5. The maximum you can subscribe to a BondMason ISA is the maximum ISA limit per Tax Year as prescribed in the ISA Regulations.
3.6. The amount invested in Bonds shall be the Subscriptions you make this shall be your ISA Subscription.
3.7. If funds are subscribed into your BondMason ISA Account which exceed the amount prescribed in the ISA Regulations, then the excess Subscription will be transferred to your Investment Account to be held outside of your BondMason ISA Account.
3.8. You may make cash withdrawals from your BondMason ISA Account; however, you cannot generally expect to be able to withdraw funds which are invested in Bonds. Once any Subscription has been invested in Bonds, you should be aware that each Bond should usually be retained for its full term. It may be that a willing buyer may be found to whom this Bond may be sold but this is not assured. The Bonds have a fixed term and are non-readily realisable investments which may not be capable of being sold.
3.9.Your BondMason ISA will be flexible as defined in the ISA Regulations. This flexibility means cash which is withdrawn can be replaced, in whole or part, within the same Tax Year and this will not affect your ISA subscription limit for that year. However, given the nature of the Bonds investments, this flexibility may not in practice be available.
3.10. You agree to reimburse us for any administrative fees, charges from HMRC or any tax authority incurred as a result of your failure to comply with ISA Regulations in opening your BondMason ISA Account, making Subscriptions or the operation of your BondMason ISA.
4.1. If you apply to open a BondMason ISA Account but decide you no longer want to proceed with your Application, you will have the right to cancel your account within 14 calendar days of the date your BondMason ISA Account is opened. You can do through the online BondMason ISA portal: https://www.bondmason.com/chiltern-bondco, or by contacting us by written notice, phone or email. Our contact details can be found here: online https://www.bondmason.com/chiltern-bondco or email us at firstname.lastname@example.org.
4.2. When your BondMason ISA Account is cancelled, any investments and money credited to your BondMason ISA Account will be transferred to your Investment Account. You can then proceed to use your Investment Account as per the General Investor Terms and Conditions.
4.3. You should note that your cash Subscription will not be applied in the purchase of Bonds until after the 14-calendar day cancellation period has expired.
4.4. If you choose to cancel your BondMason ISA Account within the 14-day cancellation period outlined in clause 4.1, you will remain eligible to open another IFISA with us or an IFISA with another ISA provider. This will not apply if you cancel your BondMason ISA after this period.
5. Account closure
5.1. If you wish to close your BondMason ISA Account, you can do so by written notice or phoning us or email. Our contact details can be found here: https://www.bondmason.com/chiltern-bondco
5.2. If you have subscribed to your BondMason ISA Account during a Tax Year and then close the Account, and do not arrange with another ISA provider to transfer the money in your account to them, you will not be able subscribe to another IFISA with another ISA provider in the same Tax Year.
5.3. If you have subscribed to your BondMason ISA Account during a Tax Year and then close the Account, you will be able to re-open the BondMason ISA Account with us during the same Tax Year.
5.4. We may close your BondMason ISA Account with immediate written notice to you if we are directed to close it by HM Revenue & Customs.
5.5. If you or we close your BondMason ISA Account, any investments and money credited to your account will be transferred to your Investment Account. It may be that the Bonds will have to be held to their full term and so held outside of your BondMason ISA Account. You can then proceed to use your Investment Account as per the General Investor Terms and Conditions.
5.6.In closing your BondMason ISA Account we may deduct any sums due to us.
5.7. You will reimburse us any amounts required to be paid in tax or otherwise if you close your BondMason ISA Account.
6. Void accounts
6.1.We will notify you, by reason of any failure to satisfy the provisions of the ISA Regulations, if all or part of your BondMason ISA Account has or will become invalid.
6.2. If the failure can be corrected, we will repair your BondMason ISA Account. You will be charged the Repair Fee for the administration of an account if we are required to repair your BondMason ISA Account.
6.3. If the failure cannot be corrected, your BondMason ISA Account will be voided. You will be charged the Void Fee for the administration of an account if we are required to void your BondMason ISA account.
6.4. The Repair Fee or the Void Fee, if applicable, will be paid from any available cash in your BondMason ISA Account or upon demand.
7. Death or bankruptcy
7.1. In the event of your death, ISA tax exemptions will no longer apply. Any interest or gains in respect of investments that arise after the date of death to the date of closure of your BondMason ISA Account will not be exempt from tax.
7.2. When we receive notification of your death we will suspend all transactions and investments in your BondMason ISA Account. ISA tax exemptions will no longer apply from the date of death.
7.3. We may require a grant of probate or letters of administration before releasing any Bonds or monies (as appropriate) in your BondMason ISA Account to your executors.
7.4. Your BondMason ISA Account will be valued for probate as at the death and dealt with as instructed by your executors.
7.5. We will support the setting up of a BondMason ISA based on Additional Permitted Subscriptions (APS) for your spouse in accordance with the ISA Regulations.
7.6. In the event of your bankruptcy, ISA tax exemptions will no longer apply from the date on which a trustee is appointed to manage your estate.
7.7. If we receive notification of your bankruptcy we will close your BondMason ISA Account and any investments and money credited to your BondMason ISA Account will be transferred to your Investment Account as per our General Investor Terms and Conditions.
7.8. A Valuation Fee is applied for a valuation of the deceased's BondMason ISA Account that may be required for grant of probate.
7.9. You will be charged an Insolvency Fee for the administration of a BondMason ISA Account should we receive a bankruptcy order.
7.10. The Bankruptcy Fee or the Valuation Fee, if applicable, will be paid from any available cash in your BondMason ISA Account or upon demand.
8. Transfers in
8.1. You may transfer money into your BondMason ISA Account with us from an existing ISA with another provider, in cash only. An online transfer-in form will need to be completed online through the online BondMason ISA portal: https://www.bondmason.com/chiltern-bondco and then we will send you a Transfer Authority form to approve and sign. We can then arrange for the funds to be transferred to us from your existing ISA provider in accordance with your instructions and ISA Regulations.
8.2.The transfer process will begin on the date we receive the Transfer Authority form or the date you stipulate for us to begin the transfer process, whichever is later. We will then send your request for the transfer of money in from your existing ISA to your previous ISA provider together with confirmation that we will accept the ISA transfer, within 5 business days of receiving your Transfer Authority form.
8.3. The amount invested in Bonds shall be the amount of the Transfer you make.
9.Internal transfer into your BondMason ISA Account
9.1. Cash in your Investment Account (non-ISA account) can be transferred into your BondMason ISA Account so long as it is not currently invested. Such transfers in shall be classed as Subscriptions.
10. Transfers out
10.1. All transfers must be made in cash.
10.2. If you choose to make a transfer from your BondMason ISA Account to another ISA provider which can accept the transfer of the Bonds investments in your ISA account, or where appropriate to withdraw funds, you will be charged a Transfer Out Fee, which will be paid from the amount you wish to transfer out. We also deduct any future Fees payable to Us up to the time of your transfer out.
10.3. You may transfer your current year's ISA subscriptions in whole, and/or parts of any funds (together with interest) in your account from previous Tax Years to another ISA provider in accordance with the ISA Regulations and these conditions. You will need to contact your other ISA provider to arrange a transfer and you can choose the date funds are transferred, subject to us being allowed a reasonable period to implement that transfer. That reasonable period shall not exceed 30 days and shall be consistent with the requirements of the ISA Regulations.
11.1.If you are an existing Investment Account holder, you cannot transfer existing investments from your Investment Account into your BondMason ISA Account.
12. Changes to Terms and Conditions
12.1. We may, at any time, change these BondMason ISA Terms and Conditions by giving you written notice. Such amendment will take effect on the date specified in the written notice. For the avoidance of doubt, these changes may impact our fees and charges or the level of service provided. Any amendment that adversely affects you will not apply to sums already lent out.
12.2. We may amend these BondMason ISA Terms and Conditions if it believes it necessary to respond proportionally to changes in law and regulations.
12.3. We may also amend these BondMason ISA Terms and Conditions to reflect changes to our systems, administrative processes and procedures, market practice or client requirements and to reflect other legitimate cost increases (or reductions) associated with providing your BondMason ISA.
12.4. You will be given at least 30 days' notice in respect of any changes to these BondMason ISA Terms and Conditions unless the specific circumstances require a shorter or longer period. Any amendments will comply with any applicable laws and regulations.
13. Administration of your BondMason ISA
13.1. The management of your BondMason ISA Account will be subject to the ISA Regulations. Any changes made by HMRC to the ISA Regulations that affect these terms will apply as soon as they come into effect.
13.2. We will inform you if your BondMason ISA Account has or will lose its tax exemption through any failure to meet the ISA Regulations. If an investment which was previously allowed under the ISA Regulations ceases to be allowed, We will notify you and provide instruction to transfer it out of the BondMason ISA Account.
13.3 These BondMason ISA Account terms are based on our understanding of current law and HMRC's practice as at April 2017. These may change in the future and the favourable tax treatment of ISAs may not be maintained.
14. Change of ISA manager
14.1. The management of your BondMason ISA Account, and its investments and cash, may be transferred to another HMRC approved IFISA manager if We and Absolute Return Bond I Ltd so agree and subject to Us being able to implement the transfer in accordance with our legal and regulatory obligations. There will be no charge for any such transfer and in such an event your IFISA will continue to be provided in accordance with these terms and conditions subject to such amendments as are notified to you at the time of transfer.
15.Payment and Transactional Arrangements
15.1. All payments and transactions to and from your BondMason IFISA are handled by the ISA Client Money Services Provider and are subject to the ISA Client Money Services Provider’s Terms and Conditions.
16. Fees Schedule
16.1. The following Fees shall apply to your BondMason ISA:
Type of fee
When Fee is due
Transfer out Fee
Payable upon initiation of a transfer out
Payable upon notification of bankruptcy or insolvency
Payable upon request being received
Payable upon your BondMason ISA Account being repaired
Payable upon your BondMason ISA Account becoming void
Paper correspondence Fee
Where requested by You, or required to be issued by Us.
£12 per correspondence
17.1. 'We', 'Us' or 'Our' means Northern Provident Investments Limited authorised and regulated by the Financial Conduct Authority under firm reference number 647948.
17.2."Account" means a BondMason ISA Account, which is an IFISA
17.3. 'Application’ means an application to set up a BondMason ISA, whether by way of a new subscription or a transfer of an existing ISA in such form as we require
17.4. 'Bonds’ means bonds which are eligible investments for an ISA issued by the Absolute Return Bond I Ltd or an undertaking in the same group as the Chiltern BondCo Ltd as defined in section 421 of the FSMA and such other company as either of such companies shall notify to Us should be treated as a client company associate, as outlined in the Brochure and of which full details are set out in the information memorandum or prospectus for the relevant bond issue which is available on the online BondMason ISA portal: https://www.bondmason.com/chiltern-bondco
17.5. 'Brochure' means the brochure relating to the BondMason ISA which is provided to each investor before he submits his application for a BondMason ISA.
17.6. 'Business days' refers to any day other than Saturday, Sunday or a Bank holiday in England and Wales.
17.7. ‘BondMason Associate’ means an undertaking in the same group as the Absolute Return Bond I Ltd (group being as defined in section 421 of the Financial Services and Markets Act 2000) and such other company as one of those companies shall notify to Us should be treated as a group company
17.8. 'ISA Client Money Services Provider' and ‘GCEN’ means Global Currency Exchange Network Limited (a company incorporated in England and Wales under company number 04675786, the registered office of which is at The Old Barn, Oast Business Park, Redhill, Wateringbury, Kent, ME18 5NN, England and which is authorised and regulated by the United Kingdom’s Financial Conduct Authority under the Payment Services Regulations with registration number 504346) and/or Global Custodial Services Ltd (a company incorporated in England and Wales under company number 08321940, the registered office of which is at The Old Barn, Oasts Business Village, Red Hill, Wateringbury, Kent, ME18 5NN, England and which is authorised under the Financial Services and Markets Act 2000 with authorisation number 595875), or such other party as from time to time selected by us to hold client monies in relation to the BondMason ISA.
17.9.'BondMason ISA' means your BondMason ISA which is an Innovative Finance ISA account held with Us.
17.10.‘Investment Account' means your non-ISA account held with Us and subject to the General Investor Terms and Conditions
17.11. ‘Fees’ means the monies payable to us in accordance with the Fees Schedule.
17.12.‘General Investor Terms and Conditions’ means the terms and conditions applied by us to the Investment Account which can be found at online BondMason ISA portal: https://www.bondmason.com/chiltern-bondco
17.13.‘Tax Year’ means the 12-month period commencing upon the 6th April or any other date which HMRC determines
17.14.'HMRC' means Her Majesty's Revenue & Customs.
17.15. 'ISA' means Individual Savings Account.
17.16. 'IFISA' means Innovative Finance Individual Savings Account.
17.17. 'ISA Regulations' or 'Regulations' means the Individual Savings Account Regulations 1998 (as amended or replaced from time to time).
17.18.'Subscription' means any new contribution made by you to your BondMason ISA Account during a Tax Year.
17.19. ‘Transfer’ means any amount transferred in to your BondMason ISA Account from a previous ISA account.