Updates to your
client documentation

We have updated:

• ­the general descriptions of the different account types offered by LGT Crestone, and the information regarding custodial arrangements, to accommodate where we may be a lender; 
• ­clause 5.4 (‘Charge’) to be consistent with the security obligations that apply if you have a Lombard Facility;
• clause 9.2 (‘Products and services that others provide to you’) to clarify that LGT Crestone can still, in certain circumstances, arrange for a Margin Loan with an external provider;
• clause 18.2 (‘The warranties that you make if you are trustee or responsible entity’) to include certain additional representations, warranties and undertakings for trustees and responsible entities concerning the validity of the relevant trust or managed investment scheme and their compliance with their trust obligations 
• clauses 51.1 (‘Margin Loan application’), 51.2 (‘Margin Loan Terms’), 51.3 (‘You must provide collateral’), 51.4 (‘We may deal with collateral’), 51.5 (‘We may submit orders’), 51.6 (‘We may act in our own interests’) to reflect the new arrangements for obtaining a Lombard Facility or a margin loan from an external lender;
• clause 72 (‘DPM Terms’) to recognise that we do not provide the DPM service to retail clients; and
• clauses 96 (‘Definitions’) to reflect these and other miscellaneous changes.

We have also added the following new clauses: 

• 4.3 (‘Electronic execution’) to provide for explicit consent from you to execute documents electronically; and
• 52 (‘Forwards and Derivatives Transactions’), 52.1 (‘Application’), 52.2 (‘Forwards and Derivatives Transaction terms’), 52.3 (‘FX Forward Transactions and FX Options’), 52.4 (‘Acknowledgement’), regarding FX Forward and FX derivatives transactions, which may be entered into if approved by us.

We have updated:

• ­sections 1.4 (‘Who will give you advice and what we are responsible for’), 1.5 (‘Who will provide non-advisory services’), 1.6 (‘Where you can find out more information about the services’), to be consistent with our new arrangements to issue Lombard Facilities;  
• ­sections 2.1 (‘What Fees and other benefits we may receive’), 2.4 (‘Other Fees associated with our Transaction services’) and 2.6 (‘Commissions we receive from Financial Product issuers and other Service Providers’) regarding the Fees and benefits that we may receive in relation to Lombard Facilities;
• ­section 4.3 (‘Discretionary Management Agreement (DMA)’) to remove references to providing this service to retail clients;
• ­section 4.5 (‘Our custodial arrangements’) to explain that we do not provide custodial services for assets held as collateral for a margin loan with an external lender; and
• section 5.1 (‘Definitions’) consistently with these changes.

This applies to the Financial Services Guide and the Financial Intermediary Client Financial Services Guide.

­We have updated:

• sections 1.1 (‘Key features of the Portfolio Service’), 1.6 (‘Differences in your rights when participating in IDPS’), 2.3 (‘Borrowing’), 4.3 (‘How we hold your Financial Products’), 4.4 (‘How we settle you Transactions’), 4.5 (‘Investing in Managed Funds’), 4.6 (‘Investing in domestic securities’), 4.8 (‘Investing in foreign currency’), 4.10 (‘Investing in Financial Products through a Margin Loan’), 5.1 (‘Transactional reporting’), 5.2 (‘Regular reporting’) to reflect that we may now provide Lombard Facilities or arrange margin loans with an external lender; 
• ­section 6 (‘Fees and costs’) to provide greater clarity regarding the Fees and costs that you may incur relating to Portfolio costs in accordance with our regulatory obligations. For example, we have consolidated our worked examples and updated third-party cost estimates for managed funds;
• sections 7.4 (‘Attributed income from an Attributed management Investment Trust’), 7.5 (‘Income and capital gains’), 7.6 (‘Franked and unfranked dividends’), 7.7 (‘Unfranked dividends -conduit foreign income’), and 7.8 (‘Foreign income’) to reflect possible tax implications if you hold units in an Attributed Managed Investment Trust;
• sections 7.10 (‘Tax deferred amounts and other non-assessable components’), 7.11 (‘Capital gains’), 7.15 (‘Margin Loan – interest expense’), 7.25 (‘Stamp duty’) regarding possible distributions, deductions, interest expenses, tax and duty implications that may be applicable to you;
• 7.28 (‘Common Reporting Standard’) regarding the Common Reporting Standard; and
• 12.1 (‘Definitions’) consistently with the above changes.

This applies to the Investor Directed Portfolio Service Guide and the Investor Directed Portfolio Service Guide Financial Intermediary Clients.