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Foreign Exchange Services Terms & Conditions Click here to download full terms as a Word document (rich text format) |
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1. Close Brothers Limited ("the Bank") offers a foreign exchange ("FX") dealing service to its Account Holders to enable them to convert, on either a "spot" or a "forward" basis, cleared funds held on deposit with the Bank, at the time of the proposed FX transaction, into another currency acceptable to the Bank, (the "New Currency") at an agreed exchange rate. 2. An "Account" means a deposit Account opened for the holder, "the Account Holder" in any currency acceptable to the Bank. 3. This service will be available upon receipt by the Bank from the Account Holder of the appropriate Foreign Exchange Services Application Form ("the Application Form"), together with any additional documentation required by the Bank as detailed on the Application Form and, for security purposes, the nomination of a suitable password by the Account Holder, to be used to operate the service ("the Password"). It is the responsibility of the Account Holder to keep the details of their Password secure as the Account Holder will be responsible for any unauthorised use. 4. The Bank will require an original or a certified copy of a statement from the Account Holder's nominated bank account in the New Currency before repayment can be made to the Account Holder to that account in the New Currency. 5. The service is transacted on the basis of the Bank's willingness to offer a quotation for the transaction in terms of both currency and amount and such a quotation being accepted by the Account Holder. 6. The Bank will accept foreign exchange instructions quoting the Password relating to the Account Holder from any party purporting to be the Account Holder, and in accordance with Clause 31. 7. Spot foreign exchange deals: at the request of the Account Holder as to currency and amount, the Bank will normally be prepared to offer a rate of exchange at which it will convert "at spot" (i.e. for value two working days forward), cleared funds held by the Account Holder on deposit with the Bank in one currency into the New Currency at an agreed exchange rate. Upon exchange, the Bank will either accept on deposit the sum in the New Currency or pay the funds in the New Currency to the Account Holder's account in the New Currency held with their nominated bank account for the New Currency. Alternatively, subject to satisfactory completion and receipt by the Bank of certain documentation, the Bank may be prepared to allow the New Currency to be remitted to a third party (see Clauses 22 to 26 inclusive). 8. Forward Foreign Exchange deals: at the request of the Account Holder as to currency and amount, the Bank will normally be prepared to offer a rate of exchange at which it will convert on a "forward deal" basis cleared funds held by the Account Holder on deposit with the Bank in one currency into the New Currency for delivery at an agreed future date. The Bank will normally consider entering into forward deal contracts only on the basis of full cash cover of cleared funds already held on deposit by the Account Holder with the Bank. Such full cash cover will be held on a blocked deposit basis with the Bank from the date of the foreign exchange transaction until the agreed forward date is reached and the transaction is completed. For such transactions, the Bank will require the Account Holder to acknowledge in writing, the terms and details of such deals, and also for the Account Holder to acknowledge and give their agreement to full cash cover from the Account Holder's unencumbered cleared deposits with the Bank being placed on a blocked deposit basis with the Bank for the duration of the forward deal contract. 9. Best Execution: To provide certainty of price and execution, the Bank will only offer either a "quote driven" or a "specific instruction" Forward Foreign Exchange order service to its Account Holders. Accordingly, the Bank will only act in accordance with the Account Holder's direct specific instructions, and that any resultant forward foreign exchange transactions will be agreed between the Bank and the Account Holder. 10. Close Brothers Limited is regulated by the Financial Services Authority (FSA) and is authorised to accept deposits, in sterling and foreign currency, under the Financial Services and Markets Act 2000. 11. "Working day" means any day on which the Bank is fully open for business in Sterling. 12. The Bank will not enter into any foreign exchange transaction with any Account Holder who does not have on deposit with the Bank, at the time of the proposed transaction, the cleared funds necessary to meet their obligations under the transaction. 13. Interest is calculated on a daily basis on the balance of cleared funds on the Account at the close of business on each working day. 14. Interest is paid at the time appropriate to the Account and will automatically be paid on closure of the Account. 15. Interest will be paid after deduction of tax at the appropriate rate, unless the necessary documentation (e.g. Form R85) has been received to confirm that the Account Holder is entitled to receive interest gross. 16. Minimum foreign exchange transaction amount is £10,000 or foreign currency equivalent. 17. Withdrawals may be made, by telephone on 020 7247 3994, or in writing. We will accept repayment instructions from any party to the Account. 18. Withdrawals in foreign currency of £5,000 foreign currency equivalent and above, will normally be paid by the Bank by SWIFT, without charge, but only to the Account Holder's nominated bank account for that currency. "Without charge" means that the Bank will not charge a fee for making such payments from the proceeds of the Account Holder's FX deals with the Bank. The Bank will also absorb its own paying bank's related charges for making the payment. However, the Bank will be not be responsible for any charges levied by the Account Holder's nominated bank or their correspondent bank on the payment. 19. Withdrawals of £5,000 foreign currency equivalent and above will normally be made by same day value payment. 20. Withdrawals in foreign currency of less than £5,000 foreign currency equivalent will normally be repaid by SWIFT to the Account Holder's nominated bank account set up in the same currency, but will be subject to a charge of £20 (or its foreign currency equivalent) by the Bank for each such withdrawal. If an Account Holder requests payment by cheque, this can normally be arranged although there may be a delay for some currencies. Any such cheques must be made out in favour of the Account Holder only and posted to the Account Holder's address. Withdrawals of less than £5,000 foreign currency equivalent which are to be made by cheque will be made out in favour of the Account Holder only. 21. Instructions for withdrawals must be received by the Bank before 12 noon on a working day for the Bank to be able to act on these instructions on the same day. Instructions for withdrawals received after 12 noon on any working day will normally be acted upon on the following working day. 21. Value dates and cut-off times for repayments will vary depending on the currency. 23. No third party payments are allowed except as a result of an FX deal by the Account Holder with the Bank. 24. No third party payments are allowed except where the appropriate sections have been completed by the Account Holder on the relevant application form and the necessary documentation provided by the Account Holder, as specified in the relevant application form. Additionally, no third party payments will be made except on receipt from the Account Holder, on each occasion, of a written instruction detailing the beneficiary, their full name and address and banking details, and the specific purpose of the requested payment and, if requested by the Bank, sufficient documentation to support the purpose of the payment. 25. Where a foreign exchange deal is contingent on a payment being made thereafter to a third party, the onus is on the Account Holder to notify the Bank of the details relating to the requested payment, and to obtain the Bank's agreement to make the proposed payment, before placing the deal with the Bank. 26. A charge of £20, or foreign currency equivalent, (as may be varied) will be applied to the Account Holder's account with the Bank for each and every third party payment made by the Bank on the Account Holder's behalf. 27. The Bank will only make payments, whether third party payments or payments to the Account Holder's own bank account, to certain foreign countries. The onus is on the Account Holder to check with the Bank if in doubt as to whether a country is eligible or not. 28. Additional funds may be deposited at any time and in any amount in any currency acceptable to the Bank. 29. No deposits or withdrawals may be made in cash. 30. No charges, other than withdrawal charges for sums below £5,000 foreign currency equivalent, are normally levied by the Bank on foreign exchange transactions provided that the transactions are operated in accordance with these terms and conditions. However the Bank reserves the right upon notice, at its discretion, to amend its charging structure or to make additional charges. 31. Following a foreign exchange deal, a confirmation will be sent to the Account Holder, showing the details of the transaction. It is the responsibility of the Account Holder on receipt to check carefully and to bring any errors to the attention of the Bank as soon as possible. 32. The Bank will act in accordance with instructions which may be, or purport to be, given by telephone, fax, e-mail or in writing by the Account Holder or by any party to the Account, without enquiry on the part of the Bank as to the authority or identity of the person making or purporting to make such instruction, providing that the nominated password is quoted to the Bank at the time of instruction. Should the Account Holder wish to change their password at any time, the Bank will require notification of this in writing from the Account Holder, including details of the new password required. 33. The Bank will not be liable for any loss arising from its actions made as a result of unauthorised, incorrect or fraudulent instructions where the Bank, acting reasonably, believed the instructions to be genuine. 34. The Bank reserves the right to decline to open an Account or to close an Account at any time upon written notice to the Account Holder and without explanation. 35. The Bank reserves the right to decline to quote in whole or in part for a foreign exchange transaction or transactions or for a particular currency or currencies, at any time without notice, and to withdraw the offer of its foreign exchange services to an Account Holder at any time upon verbal or written notice to the Account Holder and without explanation. 35. The Bank will hold information on the Account Holder for the purposes of providing its services to the Account Holder, but will not pass such information on to third parties for marketing purposes. If the Account Holder does not wish to receive details of the Bank's other products and services, the Account Holder must advise the Bank accordingly. 36. From time to time, the Bank or, an appointed agent of the Bank, may conduct a transaction for the Account Holder where the Bank or another of the Bank's Account Holders has an involvement that may conflict with the Bank's duty of care to the Account Holder. The Bank will ensure that any such conflict does not in any material way affect the transaction conducted for the Account Holder. Where the Bank is unable to avoid or manage such a conflict, the Bank will let the Account Holder know before undertaking the transaction on behalf of the Account Holder. In this respect, the Bank has established a "Conflicts of Interest Policy", details of which are available on request. 37. The Bank will hold information on the Account Holder for the purposes of providing its services to the Account Holder, but will not pass such information on to third parties for marketing purposes. If the Account Holder does not wish to receive details of the Bank's other products and services, the Account Holder must advise the Bank accordingly. 38. The Bank reserves the right to amend these Terms and Conditions, or to withdraw its Foreign Exchange Services, at any time. The placing of a foreign exchange instruction with the Bank is deemed as acceptance of these Terms and Conditions. Foreign exchange dealings are also subject to the Terms and Conditions (as may be varied) relating to all treasury business transacted with the Bank. Foreign Exchange Services
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