FREQUENTLY ASKED QUESTIONS

This section aims to answer some of the most frequently asked questions we receive about the Children's Savings Plan. If you have a question that we have not answered here, please submit your question by email.

What is the Children's Savings Plan?

The Children's Savings Plan allows you to buy shares in the investment trusts managed by Baillie Gifford & Co, without using a stockbroker.

How do I invest in the Children's Savings Plan?

You can complete and return the relevant application forms together with a cheque for your initial investment. The application forms can be found within the Application Pack . When subscribing by direct debit your initial payment must be made by cheque.

You can also invest through our Online Management Service (OMS).

What is the Online Management Service (OMS)?

The Online Management Service (OMS) is a secure service that enables you to apply for, open and administer a Children’s Savings Plan online. Please note that you cannot open a Bare Trust through OMS, this must be done in writing by completing a Bare Trust application form.

How do I register for the OMS?

You can register by visiting our OMS page and following the instructions to complete the registration process. Once you have entered your details and created your password, you will need to agree to the terms and conditions before you can proceed to the completion page.

Once registration is complete, an email will be sent to you containing your User ID, and you will also be sent a letter which will contain a verification code. You will need to use this code, along with your User ID and password, in order to log into the system for the first time. You will then be prompted to change your verification code to something more memorable to you. For full details please read our OMS factsheet.

What information do I need to provide with my application form?

In order to comply with current regulatory requirements we need proof of identity for all applicants, nominated Trustees and the child(ren) the Plan is being set up for. Proof of ID that would be accepted for a child would be a birth certificate, passport or medical card. Please refer to our Anti-Money Laundering leaflet for more information.

What are my investment options?

There are two ways to invest in the Children's Savings Plan:

• Designated Account - the Plan is held in your name, with the child's name designated on the application form
• Bare Trust - the Plan is held in Trustees' names on behalf of the child

More details on these two options can be found in the brochure contained within the Application Pack.

Can I invest a lump sum and/or on a monthly basis?

Monthly investments can be made from as little as £25 a month. Lump sum investments can be made from only £100 per trust, as often as you like. You can combine lump sum and monthly investment and there's no maximum investment.

After your initial investment, there is no commitment to make any further subscriptions to the Children's Savings Plan and you can stop your regular monthly subscriptions at any time without charge.

Can I make additional lump sum investments in the Children’s Savings Plan?

Yes. You can do this through our Online Management Service or by sending us a letter together with a cheque made payable to ‘BGSM Client Account’. Your instruction should state the Children’s Savings Plan(s) which the investment is for, include your client account number(s), note the name or initials of the child and indicate the trust(s) in which the investment is to be made.

Can I change my mind and cancel my investment in the Children's Savings Plan?

The Children's Savings Plan has no cooling-off period or cancellation rights. You can only close your plan by sending us signed instruction by post or fax. Faxed instruction must be followed up with your original signed instruction.

When are the shares bought?

Shares will be bought on the first available dealing day after your funds have cleared. The dealing days are normally Tuesday and Friday.

Can I change the investment trust(s) in which I have invested to another?

Yes. All switches will incur stamp duty of 0.5% on the purchase of new shares in the new investment trust and will be subject to a dealing price spread. The first switch in any twelve month period is free; thereafter a charge of £22 will be incurred. All instructions to switch should be signed by all the holders of the Plan. For more details, please refer to the Terms & Conditions document contained in the Application Pack.

Can I start monthly subscriptions after my Children’s Savings Plan is opened?

Yes. Please contact our Client Relations Team on 0800 027 2928 to request a direct debit mandate.

Can I change the amount of my monthly subscriptions in the Children’s Savings Plan?

Yes. You can increase or decrease the amount of your monthly subscriptions at any time. Please refer to the Terms & Conditions included in the Application Pack for details on how to do this.

Can I change the investment trust(s) into which my monthly subscriptions are to be invested?

Yes. Please see the Terms & Conditions included in the Application Pack for details.

What dates are direct debits collected for my Children's Savings Plan?

Direct debits are either collected on the 1st or 15th of each month. If no date is stipulated on the application form then the default collection date is the 1st of each month.

How are dividends paid for my Children's Savings Plan?

We will reinvest any dividend income arising from shares in your plan into the investment trust that generated the income. We will do this on the next available dealing day, provided the income is at least £10. Please note that for a Bare Trust this is the only option available.

In the case of Designated Accounts, you can instruct us to pay income to your bank or building society account instead and your instruction will take effect on the next payment date. Income will only be paid to you if the value is £10 or more - if it is less than this it will be held as cash until it reaches this value.

How will I receive payment for the sale of my shares?

The settlement date is usually three business days after the relevant dealing day. A cheque for the sale proceeds, minus the withdrawal charge, will be forwarded within three business days of the relevant settlement date, subject to our Anti-Money Laundering checks having been successfully completed. Payment will not be made for faxed instructions until the signed original of the instruction has been received.

Alternatively, the sale proceeds can be paid directly to a bank or building society account if the details are supplied with your sale instruction. We will also need to see a Bank Giro Credit slip, a spoilt cheque, or a recent bank statement in order to pay the proceeds direct to your account. No interest will be paid for any period between the sale and the cheque being presented for payment. For a Bare Trust, payments will only be made into an account administered by the trustees on behalf of the beneficiary.

Can I make withdrawals from my Children's Savings Plan?

Yes, you can sell some, or all, of your shares by giving notice in writing or by fax (provided the original signed instruction follows in the post). Signed instructions from all holders must be received before your withdrawal instruction can be processed. Shares will normally be sold on the dealing day after we receive your instruction and we must receive the sale instruction by no later than 5pm on the business day before the dealing day. Dealing days are normally Tuesdays and Fridays.

What is the minimum withdrawal limit?

There is no minimum withdrawal limit.

What are the charges?

There is no initial or annual charge for investing in the Children's Savings Plan but other charges include the dealing price spread and stamp duty costs of 0.5% on purchases.

Charges may be applied for withdrawals and switching. We will usually charge for each withdrawal, which is currently £22. The first switch in any twelve month period is free, thereafter a charge of £22 will be incurred.

Further details can be found in the Withdrawals factsheet or in the Terms & Conditions document contained within the Application Pack.

Can I close my Children's Savings Plan?

You can close your plan at any time by sending us signed instructions by post or fax. If you send us faxed closure instructions, we will not send payment until we receive your original signed instructions.