Alpha Financial Management Limited is authorised and regulated by the Financial Services Authority. You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk click on register and put in our FSA Number 214376 or by contacting the FSA on 0845 606 1234.

Our Commitment to You
Prior to providing you with any advice we will take time to understand your current needs, circumstances and attitude to risk. Any advice provided will be confirmed to you in writing.

Client Classification
Alpha Financial Management Limited classifies all clients as ‘retail clients’ for investment business and ‘consumers’ for non-investment insurance business which means you are afforded all protections under the rules of the Financial Services Authority (FSA). Should you wish to be classified differently for investment business, please discuss this with your adviser. Your adviser will inform you should your circumstances dictate that we would need to classify you differently for non-investment insurance business.

Please note that should you wish to be considered as a different category of customer for investment business, such as a professional client or eligible counterparty you must inform us in writing. We will provide you with a new client agreement and you may lose a number of protections which will be outlined in that new agreement.

Methods of Communication
Unless you advise us otherwise, we will communicate with you via the following methods of communication, Face to Face, E-mail, Telephone, Letter and Fax.

Investment and Non-Investment Insurance Services
Alpha Financial Management Limited is permitted to advise on and arrange (bring about) deals in investments and non-investment insurance contracts.

With regard to investments and non-investment insurance contracts which we have arranged for you, these will not be kept under review but we will advise you upon your request. However, we may contact you in the future by means of an unsolicited promotion should we wish to contact you to discuss the relative merits of an investment or non-investment insurance contract or service which we feel may be of interest to you.

Alpha Financial Management Limited does not handle clients’ money.  We never accept a cheque made out to us (unless it is a cheque in settlement of charges or disbursements for which we have sent you an invoice) or handle cash.

Scope of Advice

Investment
We offer products from the whole market.

Non-investment Insurance
We offer products from a range of insurers on the basis of a fair analysis of the market

Conflicts of Interest
Alpha Financial Management Limited offers advice in accordance with that disclosed to you in this agreement.  Occasions may arise where we or one of our other clients have some form of interest in business being transacted for you.  If this happens or we become aware that our interests or those of one of our other clients conflict with your interests, we will write to you and obtain your consent before we carry out your instructions, and detail the steps we will take to ensure fair treatment.

Best Execution
It is our policy to transact your business in order to achieve the best possible results in terms of the nature and price of the products selected, transaction charges, administration and service excellence.  Further details of our policy regarding this are attached to the back of this document.

Termination of Authority
You or we may terminate our authority to act on your behalf at any time, without penalty.  Notice of this termination must be given in writing and will take effect from the date of receipt.  Termination is without prejudice to any transactions already initiated which will be completed according to this Client Agreement unless otherwise agreed in writing. You will be liable to pay for any transactions made prior to termination and any fees which may be outstanding.

Data Protection
The information you have provided is subject to the Data Protection Act 1998 (the “Act”). By signing this document you consent to us or any company associated with us (such companies include, for the avoidance of doubt, Paradigm Partners LLP and any member of its group and/or companies, persons or entities of any nature whatsoever with which it is associated or allied from time to time) processing, both manually and by electronic means, your personal data for the purposes of providing advice, administration and management.

“Processing” includes obtaining, recording or holding information or data, transferring it to other companies associated with us, product providers, the FSA or any other statutory, governmental or regulatory body for legitimate purposes including, where relevant, to solicitors and/or other debt collection agencies for debt collection purposes and carrying out operations on the information or data.

We may also contact you or pass your details to other companies associated with us to contact you (including by telephone) with details of any other similar products, promotions, or for related marketing purposes in which we think you may be interested.

The information provided may also contain sensitive personal data for the purposes of the Act, being information as to your physical or mental health or condition; the commission or alleged commission of any offence by you; any proceedings for an offence committed or alleged to have been committed by you, including the outcome or sentence in such proceedings; your political opinions, religious or similar beliefs, sexual life; or your membership of a Trade Union.

Please tick this box if you do not consent to us or any company associated with us processing any such sensitive personal data. (You will have the option to opt out)

If you are not happy for us or any company associated with us to contact you for marketing purposes by e-mail, telephone, post or SMS, please tick this box. (You will have the option to opt out)

If at any time you wish us or any company associated with us to cease processing your personal data or sensitive personal data, or contacting you for marketing purposes, please contact The Data Protection Officer on 0151 949 1666 or in writing at Alpha Financial Management Limited, 22 Stuart Road, Waterloo, Liverpool L22 4QS.

You may be assured that we and any company associated with us will treat all personal data and sensitive personal data as confidential and will not process it other than for a legitimate purpose. Steps will be taken to ensure that the information is accurate, kept up to date and not kept for longer than is necessary. Measures will also be taken to safeguard against unauthorised or unlawful processing and accidental loss or destruction or damage to the data.

Subject to certain exceptions, you are entitled to have access to your personal and sensitive personal data held by us. You may be charged a fee (subject to the statutory maximum) for supplying you with such data.

Payment for Services
Prior to undertaking any work on your behalf we will agree with you how we will be paid for our advice and services.

Investment - Paying by fee
If we agree that you will pay for our advice and services on a fee only basis, then regardless of whether you buy a product or not, the fee will become payable on completion of our work unless otherwise agreed in our separate fee agreement. If we also receive commission from the product provider when you buy a product, we will pass on the full value of that commission to you in one or more ways. For example, we could reduce our fee; or reduce your product charges; or increase your investment amount; or refund the commission to you. We will confirm the rate we will charge in writing before beginning work and we will tell you if you have to pay VAT.  You may ask us for an estimate of how much in total we might charge.  You may also ask us not to exceed a given amount without checking with you first.

Chargeable Hourly Rates

We will confirm the rate we will charge in writing before beginning work. Our typical charges are:

• Director                                             £200 per hour
• Independent Financial Adviser             £150 per hour
• Administration                                   £75 per hour

An additional fee may be payable for ongoing reviews and advice.

Investment - Paying by Commission (through product charges)

Where advice has been provided that has resulted in the purchase of a financial product, we will normally receive commission from the product provider.  While you will not pay us anything directly this does not mean our service is free.  The commission is derived from the product charges taken by the provider, both initial and ongoing, and these charges reduce the amount allocated to the investment.

The amount of commission we receive will vary depending on the amount you invest and (sometimes) how long you invest or your age; for example:

• If you invest £7,200 in an individual savings account (ISA) we would receive initial commission of 3% of the amount invested (£216) and 1% of the value of the fund (roughly £72) every year.

• If you invest £10,000 in an investment bond we would receive initial commission of 3% of the amount invested (£300) and 1% of the value of the fund (roughly £100) every year.

• If you invest £100 per month into a personal pension (with a term of 25 years) we would receive commission of 30% of the first 12 months premiums (£360) and 0.5% of the value of the fund (roughly £6 in year 1) every year.

• If you transfer £10,000 in to a personal pension we would receive initial commission of 3% of the transfer (£300) and 1% of the value of the fund (roughly £100) every year.

• If you purchase a £10,000 annuity we would receive commission of 1.25% of the amount invested (£125).We will tell you how much the commission will be before you complete an investment, but you may ask for this information earlier.  The fund based commission received will include the payment for any ongoing service such as a periodic or ongoing review.  Ongoing administration outside of the review meetings is without further cost.

In respect of any regular premium policy which we may recommend should you subsequently cease to pay premiums on the policy and in consequence we are obliged to refund the commission that has been paid to us we reserve the right to charge you a fee representing the amount we have to repay, for a period of time of up to four years after commencement of the policy, but we will not charge the fee if you exercise the right to cancel in accordance with the cancellation notice sent to you by the life company.

Investment - Paying by a combination of fee and commission
We may agree with you that we will charge you a combination of fees and commission for our advice and services. The actual amounts will depend on the service provided to you, but will be in line with the arrangements set out in the sections above headed ‘Paying by fee’ and ‘Paying by Commission (through product charges)’.

Non-investment Insurance
We may also be remunerated by fee or commission as noted above.  You will receive a Client Specific Illustration which will detail any other fees relating to your particular insurance policy.

For certain transactions that we recommend to you, Alpha Financial Management Limited will accrue a notional entitlement under a Discretionary settlement.  The value of this entitlement does not impact on the overall charges applied to your investment, and the actual cost to you will be disclosed as required by the Financial Services Authority.

In addition to the above, for certain transactions that we recommend to you, we will also receive a royalty payment from the provider as part of the annual management charge.  This payment will be made on an annual basis and again will not affect the charges applied to your contract as disclosed to you at the point of application.  We will be happy to provide you with details of the payments as they relate to your investment should you request these.

Complaints
If you wish to register a complaint, please contact us in writing at the above address or telephone us on 0151 949 1666.

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.

Compensation Arrangements
We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Investment
Most types of investment business are covered for 100% of the first £30,000 and 90% of the next £20,000 so the maximum compensation is £48,000.

Further information about compensation scheme arrangements is available from the FSCS

Insurance
Insurance advising and arranging is covered for 100% of the first £2,000 and 90% of the remainder of the claim, without any upper limit.

Further information about compensation scheme arrangements is available from the FSCS

Accounting to You
We will forward to you all documents showing ownership of your investments as soon as practicable after we receive them; where a number of documents relating to a series of transactions is involved, we will normally hold each document until the series is complete and then forward them to you.

Clients Consent*
This is our standard client agreement upon which we intend to rely. For your own benefit and protection you should read these terms carefully before signing them. If you do not understand any point please ask for further information.

By also signing this agreement you hereby authorise the transfer of information, as described above on a confidential basis when warranted between such third parties.

I/We agree that this client agreement will come into effect from the date of issue.

Date of Issue             X-----------------------------------

Client Name(s)           X---------------------------------- X-------------------------------------

Client Signature(s)     X---------------------------------- X-------------------------------------

Date of Signature(s)   X---------------------------------- X-------------------------------------

*The Clients Consent above is for viewing only and is a copy of the one to be signed on our agreement.