Fidelity client terms

Fidelity client terms (incorporating FundsNetwork)

6 April 2008

These Terms, together with the Application Form, form a legal agreement between you and Fidelity. The Terms set out how you can purchase, redeem and switch Investments both within and outside ISAs, and include provisions for dealings through FundsNetwork. They also set out how the Investment Trust Share Plan will be operated.

The Terms are divided into sections, as follows:

Section 1 applies generally to dealings between you and Fidelity;
Section 2 applies only to ISAs (unless expressly stated otherwise);
Section 3 applies only to the Fidelity Investment Trust Share Plan.

The products and services described in these Terms are available to UK residents only. By accepting these Terms, you warrant that you are resident in the UK. Dealings in products under these Terms will be restricted if you cease to be resident in the UK.

These Terms are issued to you by FIL Investment Services (UK) Limited, FIL Investments International and Financial Administration Services Limited which are all companies within the FIL Limited group of companies. You will deal with FIL Investment Services (UK) Limited in regards to Fidelity funds which are domiciled in the United Kingdom (OEICs and Unit Trusts). FIL Investment Services (UK) Limited is the Authorised Corporate Director of Fidelity Investment Funds, Fidelity Investment Funds II OEIC, and the Manager of Fidelity Unit Trusts. FIL Investments International acts as a distributor of various Fidelity funds in the UK and other jurisdictions. It distributes the Fidelity funds which are domiciled in Luxembourg (Recognised Funds) and this company also manages the Fidelity Investment Trusts and Investment Trust Share Plan. Financial Administration Services Limited is the plan manager of Fidelity's ISAs and also offers and manages the FundsNetwork service, and so if you are a FundsNetwork customer or have an ISA with us you will deal with Financial Administration Services Limited.

Please note that, with effect from 6 April 2008, all Personal Equity Plans ("PEPs") were automatically re-classified as Individual Savings Accounts ("ISAs"). Mini and Maxi ISAs ceased to exist as such. Mini Cash ISAs became Cash ISAs, and Maxi ISAs containing only stocks and shares became Stocks and Shares ISAs. Maxi ISAs containing both cash and stocks and shares were split into a Cash ISA and a Stocks and Shares ISA.

The definitions below apply throughout these Terms.

Definitions

The following words and expressions, when used in these Terms, have the meanings set out opposite them:

Act - the Financial Services and Markets Act 2000;

Application Form - a Fidelity application form, or (in the case of an ISA) a Fidelity ISA application form or transfer application form, or in the case of a Share Plan, a Fidelity Investment Trust Share Plan application form;

Cash ISA - an ISA which, in accordance with the Regulations, contains predominantly cash;

Fidelity - FIL Investment Services (UK) Limited, FIL Investments International or Financial Administration Services Limited (a Fidelity company), as relevant. The relevant company will be the one which manages or offers the particular product in which you invest and where you use FundsNetwork, it will be Financial Administration Services Limited. References to "Fidelity" in the Terms will also include any company to which we may transfer our rights and obligations under the Terms in accordance with clause 14(a).

Fidelity's Electronic Services - the provision from time to time of access to certain information and services via the Internet and other electronic media;

Fidelity Group Company - any holding company of Fidelity or any subsidiary of any such holding company (as defined in the Companies Act 1985);

Fidelity Product - any Investment Trust, OEIC, Recognised Fund or Unit Trust managed or operated by a Fidelity Group Company;

FSA - the Financial Services Authority, located at 25 North Colonnade, Canary Wharf, London E14 5HS;

FSA Rules - the FSA's Handbook of rules and guidance (as amended from time to time);

FundsNetwork - the fund supermarket service operated by Financial Administration Services Limited (a Fidelity company) and through which certain investment funds and other products are available;

FundsNetwork ISA - an ISA (as defined below) which is invested in one or more of the investment funds offered via FundsNetwork. This does not include MoneyBuilder ISAs;

FundsNetwork Product - any Investment Trust, OEIC, Recognised Fund or Unit Trust managed or operated by a company other than a Fidelity Group Company and available on FundsNetwork;

HM Revenue & Customs Charge - a charge levied by HM Revenue & Customs of 20% of the interest earned on the cash balance held within an ISA;

Investment Trust - an investment trust company managed by FIL Investments International or any other Fidelity Group Company;

Investment Trust Shares - shares in an Investment Trust;

Investments - Shares and Units;

ISA - a Fidelity Individual Savings Account governed by these Terms and which is a Cash ISA or a Stocks and Shares ISA.

ISA Cash Park - a facility for temporarily holding cash within an ISA in an interest-bearing account for which investors may apply;

ISA Mortgage - an ISA originally opened under the Fidelity PEP mortgage plan;

Key Features - the key features document of the Fidelity ISA (and, where applicable, the key features document/simplified prospectus of any OEIC, Recognised Fund or Unit Trust);

Lender - the lender with whom you have your mortgage (ISA mortgages only);

MoneyBuilder ISA - an ISA (as defined herein) which is invested in one or more of the Fidelity Products available from time to time as part of the MoneyBuilder range of funds offered by any Fidelity Group Company. A MoneyBuilder ISA is not available through FundsNetwork;

OEIC - an open ended investment company domiciled in the UK (and, in the case of an umbrella company, a sub-fund of such company);

OEIC Shares - shares in an OEIC;

Nominee (in relation to the Share Plan) - Lloyds TSB Registrars Savings Nominees Limited or such other nominee as may be appointed by the Share Plan Administrator;

Recognised Fund - an offshore fund recognised in the United Kingdom under section 264 of the Act;

Recognised Fund Shares - shares in a Recognised Fund;

Regulations - the Individual Savings Account Regulations 1998 as from time to time amended and in force;

Re-registration - where shares or units held by you in non-Fidelity Products with a different provider are transferred and registered to be held with Fidelity on FundsNetwork;

Share Plan - the Fidelity Investment Trust Share Plan;

Share Plan Administrator - Lloyds TSB Registrars Scotland, PO Box 28448, Finance House, Orchard Brae, Edinburgh EH4 1WQ (a division of Lloyds TSB Bank Plc which is authorised and regulated by the FSA) or such other agent or agents, if any, as Fidelity may appoint to provide administrative services for the Share Plan from time to time;

Shares - Investment Trust Shares, OEIC Shares, Recognised Fund Shares or Windfall Shares;

Stocks and Shares ISA - an ISA which, in accordance with the Regulations, contains predominantly stocks and shares;

Switch - related transactions whereby Shares or Units which are held in a Fidelity or FundsNetwork Product are sold and Shares or Units to a corresponding value are bought in a different Fidelity or FundsNetwork Product. Shares or Units will effectively be "switched" from one Product to the other;

Terms - these Terms (as amended from time to time);

Units - units in a Unit Trust;

Unit Trust - an authorised unit trust;

Windfall ISA - an ISA originally opened as a Windfall PEP and which is invested or partly invested in Windfall Shares;

Windfall Shares - shares received by members, employees or pensioners of a building society on its conversion to a company or by members, employees or pensioners of a mutual insurer on its demutualisation;

Year - a tax year beginning on 6 April in any calendar year and ending on 5 April in the following calendar year;

You - an individual who does business with Fidelity under these Terms. The term "You" includes your personal representatives.

References to the singular shall include the plural and vice versa. References to clauses are to clauses of these Terms.

Unless otherwise stated, in any case where reference is made to a particular day or date and such day or date is not a business day (being a day on which UK banks are open for business), that day or date shall be read and construed as if reference had been made to the next succeeding business day.

References to statutes, rules or regulations shall be taken to include any amendments made to them from time to time.

SECTION 1 - GENERAL DEALINGS

Application and payment

Note: see Section 2 for details of opening an ISA, and Section 3 for details of opening a Share Plan.

(a)	An application to purchase Investments may be made by any investor over the age of 18 on a hard copy Application Form, by telephone or via Fidelity's Electronic Services. An application made via Fidelity's Electronic Services may be invested in any funds or products offered via FundsNetwork. An application made with a hard copy FundsNetwork Application Form may be invested in one or more of a choice of funds offered by Fidelity from amongst those available via FundsNetwork.

(b)	These Terms will come into force when your application is accepted by Fidelity, which will normally be on the day of its receipt. You will be classified as a Retail Client for the purposes of the FSA Rules unless we advise you otherwise.

(c)	You must specify an investment choice in order for your application to be processed (unless otherwise provided in these Terms). You will be sent an acknowledgement when you make an application to purchase Investments.

(d)	Fidelity will accept payment by debit card with the Maestro or Visa symbol for the full amount of your initial investment and for any subsequent contributions. Payment for the full amount of your initial investment may also be made by cheque if accompanied by a hard copy Application Form (which may be downloaded via Fidelity's Electronic Services), and Fidelity will also accept payment by cheque for subsequent contributions. If you submit a hard copy Application Form, you may alternatively (unless otherwise provided) make regular contributions by direct debit under a monthly savings plan, in which case a direct debit instruction to your bank or building society must also be submitted.

(e)	Fidelity acts as your agent in all dealings via FundsNetwork. The prices of shares and units in all dual priced (only) investment funds offered on FundsNetwork are rounded to four significant figures for FundsNetwork dealings, even if the fund operator normally rounds prices to five or six figures. If you make an application to purchase Investments via FundsNetwork, Fidelity will normally place your order in advance of receiving payment from you. Once Fidelity has placed your order, cleared funds received from you will be immediately due and payable to Fidelity. Clause 11 (c) will apply if you fail to provide cleared funds within seven days of Fidelity accepting your instructions.

(f)	You may apply for your account to be in the name of up to four registered holders except for ISA accounts. This will be considered a joint account by Fidelity. The names, addresses, dates of birth and signatures of all joint holders will be required before a joint account can be opened. Instructions must generally be signed by all joint holders before Fidelity will accept them, unless all the joint holders sign a joint renunciation form. A joint renunciation form allows Fidelity, at its discretion, to accept certain types of instructions from only one holder. All payments, account documentation and notices will be sent to the first named holder at the last address registered with us.

(g)	If you are in any doubt as to the tax consequences of the acquisition, holding or disposal of Investments either generally or through an ISA or Share Plan, you should consult a professional adviser.

(h)	If you wish to purchase Investments on behalf of a child, you may do so by completing the account designation section of the Application Form, but the adult investor will be treated by Fidelity for all purposes as the investor. The Investments may be registered in the child's name at the age of 18. Persons investing on behalf of children are advised to consult a professional tax adviser regarding the tax implications of such an investment.

(i)	Where you have provided us with your account details at your bank or building society, we will make payments to this account where possible, rather than issue a cheque. When we make payments (including when you redeem any holdings with us) to your bank or building society, we will use the most recent account details provided by you... We will require your sort code and account number, and the name of the account holder(s). We will not be liable for any losses or costs if you provide incorrect details or if you fail to advise us of any changes to your account details or your circumstances that may affect payments we make to you. Clause 11(a) will apply if your failure to notify us of such changes causes Fidelity costs or losses.

3. Minimum Subscription

(a)	Lump sums: The minimum initial investment in any fund is as specified in the Key Features. Additional lump sum contributions are subject to the minimum specified in the Key Features.

(b)	Monthly savings plans: The minimum monthly contribution is as specified in the Key Features, and Fidelity may terminate your savings plan by giving you three months' notice or, if the total amount invested during a calendar year is less than £600, one month's notice. Your contribution will be collected each month on the date notified to you by Fidelity. Your contribution will be invested by Fidelity on the next day on which deals are placed for contributions under savings plans. No interest is payable on your contributions before they are invested. You must inform Fidelity if you wish to increase or decrease your monthly contribution, or to stop saving (either temporarily or completely). If your instructions are received at least seven business days before the next collection date, Fidelity will normally give effect to them from that date.

(c)	Fidelity may reduce or waive the minimum subscription.

4. Cancellation

You may have the right to cancel your application - please refer to the Key Features. If you exercise your right to cancel, any money paid to Fidelity will be repaid (subject to deduction of the amount, if any, by which the value of your Investments has fallen).

5. Title and Registration of Investments and Client Money

Investments

(a)	Your Investments will be beneficially owned by you at all times and will be registered in your name unless otherwise provided in these Terms. ISA holders should note "Investments and Title" in Section 2. Share Plan holders should refer to the "Holding of Securities" in Section 3.

(b)	If you acquire Investments which are not Fidelity Products via FundsNetwork, your Investments will be registered either in the name of a nominee of Fidelity (which may be a Fidelity Group Company) or jointly in the name of such a nominee and in your name.

(c)	Whenever your Investments are registered in the name of a nominee, that nominee will hold them on trust for you. This means that you are the beneficial owner of the Investments, and the Investments will continue to belong to you even if the nominee becomes insolvent.

(d)	Any Investments held by a nominee will be held in an omnibus account. Fidelity will keep a record of your Investments but your individual holding may not be identifiable via separate unit or share certificates or other paper or electronic proof of title. This means that in the event of a default (for example, if the nominee improperly fails to retain all of the assets entrusted to it), any shortfall in the investments registered in the name of the nominee may be shared pro rata by all the investors whose holdings are so registered. Fidelity will be responsible for the acts and omissions of any nominee it uses for the purposes of these Terms.

(e)	If you wish to transfer an existing holding of Shares or Units which are held with one or more different fund providers, to be held within a FundsNetwork account, Fidelity will arrange the Re-registration of such Shares or Units in the name of its nominee, to be held on your behalf. Re-registration may save you certain costs which might be incurred if cash only were transferred but may result in the loss of a very small fraction of one Share or Unit (less than 0.01%). This small loss will not be returned in any circumstances. If, following the Re-registration of more than one holding of Shares or Units, Fidelity receives an income payment, dividend or other cash amount from the former account provider, Fidelity may invest such amount in the largest holding by value (unless you have elected to be paid income). A charge may be made by the existing provider when you reregister Shares or Units with Fidelity. Re-registration is only available where the relevant other provider agrees with Fidelity to provide this service.

(f)	No Unit or Share certificates will be issued to you. If you acquire Investments which are not Fidelity Products via FundsNetwork, Fidelity (or a nominee, which may be a Fidelity Group Company) will hold any title documents or documents evidencing title to the Investments. Otherwise, you will be sent an acknowledgement of your acquisition (or disposal) of Investments.

(g)	Fidelity may not lend Investments or title documents to any third party, and may not borrow against the security of Investments or such documents.

(h)	If you wish to re-register an existing holding of Shares or Units in a Fidelity OEIC, Recognised Fund or Unit Trust to be held within your account with a different provider, Fidelity will arrange this at your request if the other provider is willing to accept the re-registration. Only complete holdings of Shares or Units in such Fidelity Products may be re-registered in this way. A charge may be made by the other provider when you re-register Shares or Units. If, following re-registration of the Shares or Units, Fidelity receives an income payment, dividend or other cash amount relating to such Shares or Units, this amount will be paid by direct credit into your bank or building society.

Client money

(i)	All cash held by Fidelity under these Terms will be held as client money under the FSA Rules and as follows: (i) Fidelity will deposit the cash in the UK with an authorised bank. (ii) The bank will hold the cash on Fidelity’s behalf in a trust account separate to any account used to hold money belonging to Fidelity in its own right. (iii) Fidelity will not, however, be responsible for any acts or omissions of the bank. (iv) If the bank becomes insolvent, Fidelity will have a claim on behalf of its clients against the bank. If, however, the bank cannot repay all of its creditors, any shortfall may have to be shared pro rata between them.
(j)	Interest will not be paid on cash balances held on your behalf unless otherwise stated in the Terms.
6.	Income
(a)	Fidelity will reinvest any income in respect of Investments, without requiring further instruction from you, unless you elect to be paid the income. You can elect to receive the income by completing the relevant section of the Application Form or by notifying Fidelity. Payment is by direct credit to your bank or building society. You must notify Fidelity if you wish to cancel a previous election to receive income. Concerning income, ISA holders should note clause 21 and Windfall ISA holders should note clause 32.
(b)	FundsNetwork only: amounts of income equalisation received as part of distributions on OEIC Shares and Units of the same type and in the same fund may be aggregated and the average amount of income equalisation attributed to each such OEIC Share or Unit acquired during the relevant period.
(c)	Fidelity OEICs and Unit Trusts only: if any such income remains unclaimed by you for any reason for a period of six years after it has become due, it will be forfeited and will revert to the OEIC.
7.	Reports and Voting
(a)	If you invest in Fidelity Products outside an ISA, you will automatically receive (as the registered holder of the Units or Shares) copies of the annual reports and accounts and any other information issued to investors, and you will automatically be entitled to attend any meetings of investors and to exercise voting rights attaching to such Investments. Paragraphs (b), (c) and (d) below apply only in relation to Investments held within an ISA or Share Plan and to Investments acquired via FundsNetwork which are not Fidelity Products.
(b)	If you so request, and if you have not received such pursuant to clause 7(a) above, Fidelity will arrange for you to receive copies of the annual reports and accounts issued to investors in each OEIC, Recognised Fund, Unit Trust, Investment Trust or other entity in which you have invested. If your investment is in OEIC Shares, Recognised Fund Shares and/or Units, Fidelity may debit your account with its standard charge for making such arrangements at your request (currently £20 per communication with you). Reports and accounts may be sent to you electronically if you are a user of Fidelity's Electronic Services.
(c)	Subject to any applicable law or regulation and if you so request, Fidelity will arrange for you to be able to attend any meetings of investors in each OEIC, Recognised Fund, Unit Trust, Investment Trust or other entity in which you invest, to exercise voting rights, and to receive, in addition to the documents referred to in paragraph (b) above, any other information issued to investors. Fidelity reserves the right to debit you with its standard charge for making such arrangements at your request (see paragraph (b) above). Such other information may be sent to you electronically if you invested via Fidelity's Electronic Services.
(d)	Subject to any applicable law or regulation, Fidelity may exercise or refrain from exercising any voting rights attaching to Investments unless you have elected to exercise such rights yourself.
8.	Switching investments and redemption; Withdrawal Plan
(a)	You may instruct Fidelity to sell Shares or Units and to reinvest the proceeds in other Shares or Units. Fidelity will effect the transaction as soon as practicable after receiving your instructions. Switch transactions involving funds in FundsNetwork will normally be processed during the course of two consecutive days, although a Switch transaction into the Fidelity cash funds may take up to five business days. Fidelity will normally charge a switching fee - see "Charges".
(b)	You may sell Investments by giving notice in writing to Fidelity which will be effective on receipt. Fidelity will sell the Investments and pay you the proceeds. Payment is normally by direct credit to your bank or building society, or if agreed with Fidelity may be by sterling cheque made out to you and sent to your home address. Fidelity may deduct any charges or other amounts due to it, any tax liabilities, and any additional expenses incurred in selling the Investments. Fidelity is not able to switch or redeem any Units or Shares which have recently been subject to an instruction and that prior transaction has not been completed.
(c)	Fidelity acts as your agent in all dealings via FundsNetwork. If you give notice to sell Investments via FundsNetwork, Fidelity will normally place your order with the provider of the Investments in advance of receiving the necessary documentation from you. Fidelity may also pay you an amount equal to the expected sale proceeds in advance of receiving them from the provider, and, if Fidelity does so, then (i) the proceeds will be due and payable to Fidelity on receipt from the provider; and (ii) you agree that if the provider fails to pay the proceeds to Fidelity then you will repay to Fidelity the amount paid to you by Fidelity in advance.
(d)	If you have invested via FundsNetwork in a fund which ceases to be offered via FundsNetwork, Fidelity will encash your Shares or Units and seek your instructions. Fidelity will retain the proceeds in the Fidelity Cash Fund (see Key Features for details of interest payment) pending reinvestment in one or more alternative funds within FundsNetwork or (at your option) payment to you.
(e)	You may instruct Fidelity to make a monthly cash withdrawal from your Investments (but not from Investments held in an ISA or within the Share Plan), to be met by selling Investments. Unless you give Fidelity instructions with your withdrawal request, Fidelity will have discretion to choose which Investments to sell. Fidelity will effect the transaction on a set day of each month and will only pay the sale proceeds directly to your bank or building society.
(f)	If you hold Investments outside an ISA, and you switch from one Investment to another, or sell your Investments or any part thereof, you will receive a notice confirming your transaction following the completion of the transaction. If you hold units in the Fidelity Cash Fund, outside an ISA, and you place a Switch out of the Fidelity Cash Fund or an instruction to sell all or some of your Units in the Fidelity Cash Fund, you will receive a statement which confirms your transaction in the Fidelity Cash Fund at the end of the month in which the transaction is made. ISA holders should note "Switching", "Withdrawals" and "Charges" in Section 2.
9.	Charges
	*Note: charges for ISA investments are detailed in Section 2. Charges for the Share Plan are detailed in Section 3.*
(a)	Initial Charge For actual charges as they apply to individual Products, please refer to the relevant Simplified Prospectus or Key Features Document. Fidelity Products: OEIC/Recognised Funds If your first lump sum investment is in Shares in a Fidelity OEIC or Recognised Fund, you pay an initial charge of up to 5.25% of your contribution. This charge is taken from the amount you send to us to invest and the remainder is invested in the Shares. Subsequent investments are subject to the same initial charges. Regular contributions under a monthly savings plan are also subject to an initial charge of up to 5.25%. Unit Trusts If your first lump sum investment is in Units in a Fidelity Unit Trust, you pay an initial charge of up to 5.25% of your contribution. This charge is added to the net price of the Units and so you will pay the 'offer price' which is made up of the unit price plus the initial charge. Subsequent investments are subject to the same initial charges. Regular contributions under a monthly savings plan are also subject to an initial charge of up to 5.25%. Other Products – FundsNetwork: OEIC/Recognised Funds If your first lump sum investment is in Shares in an OEIC or Recognised Fund which is not a Fidelity Product, you pay an initial charge of up to 5.5% of your contribution. This charge is taken from the amount you send us to invest and the remainder is invested in the Shares. Subsequent investments are subject to the same initial charges. Regular contributions under a monthly savings plan are also subject to an initial charge of up to 5.5%. Unit Trusts If your first lump sum investment is in Units in a Unit Trust which is not a Fidelity Product, you pay an initial charge of up to 5.5% of your contribution. This charge is added to the net price of the Units and so you will pay the 'offer price' which is made up of the unit price plus the initial charge. Subsequent investments are subject to the same initial charges. Regular contributions under a monthly savings plan are also subject to an initial charge of up to 5.5%.
(b)	Switching Charge If you switch Units or Shares, you will normally pay a switching charge equivalent to 0.25% of the net price of the new Units or Shares, although in some cases the normal initial charge may apply (see paragraph (a) above). If you switch Units or Shares for which there was no initial charge on purchase, normal initial charges apply (see paragraph (a) above). If you switch Units or Shares in a Recognised Fund, you will normally be charged a switching charge equivalent to 1.00% of the net price of the new Units or Shares, although in some cases the normal initial charge may apply (see paragraph (a) above). If, you switch Units or Shares for which there was no initial charge on purchase, normal initial charges apply (see paragraph (a) above).
(c)	Management Fees Holdings of Units and Shares are also subject to management fees, charges and expenses. These are deducted from the property of the Unit Trusts, OEICs or Recognised Funds.
(d)	Fidelity may in its absolute discretion discount or waive any charges in relation to Fidelity Products. Fidelity may increase charges in relation to Fidelity Products but only after giving you written notice in accordance with the FSA Rules. Fidelity shall be entitled to deduct and retain all charges payable under these Terms.
(e)	FundsNetwork Products may be subject to increases in charges, and Fidelity will give you as much notice as reasonably practicable of such amendments, and in any case, in accordance with the FSA Rules.
(f)	(f) All charges are stated exclusive of value added tax, which will also be charged where applicable. As at the date of these Terms, the rate of value added tax in the UK is 17.5%, but this may change from time to time.
10.	Statements
(a)	Fidelity will send you a statement at least annually as follows. If you hold Investments in Fidelity OEICs or Unit Trusts either directly or through FundsNetwork you will receive a statement on the anniversary of your first investment with us. If you hold Investments in a Fidelity Recognised Fund either directly or through FundsNetwork statements will be generated twice yearly as at 31 December and 30 June. If you hold Investments in an ISA, you will receive an annual statement, which is sent to you at the same time each year. For any other accounts with FundsNetwork, statements will be generated twice yearly as at 31 December and 30 June. In any case, however, where you hold a mix of Fidelity Products and FundsNetwork Products (other than Share Plan), statements will be generated twice yearly as at 31 December and 30 June. This may be in the form of a consolidated statement. We will send all of the above statements out to you within twenty-five (25) Business Days of the date of the statement.
(b)	If you invest via the Share Plan, statements will be sent to you by the Share Plan Administrator as at 31 July and 31 January each year.
(c)	Statements will show details of all transactions in your Account since the previous statement, listing the investments and cash transactions on your account, and explaining other matters as required by the FSA Rules. The statements will not include a measure of performance.
11.	Liability
(a)	You agree to indemnify Fidelity against all liabilities incurred by Fidelity in connection with your Investments, other than liabilities caused as a direct result of Fidelity's negligence, knowing default, fraud or breach of the FSA Rules or of these Terms.
(b)	Fidelity is liable for the direct results of its negligence, knowing default, fraud and for any breach of the FSA Rules or of these Terms. Subject to this, Fidelity is not liable for any loss caused through a fall in value of Investments (including, without limitation, those which may occur due to delays during the process of verifying an investor's identity in compliance with anti-money laundering regulations). Fidelity is not liable for any unauthorised use or other misuse of your debit card. Fidelity is also not liable for any indirect, special or consequential loss you might suffer (including direct or indirect loss of profit). The only exception is where this results from fraud or a breach of the Conduct of Business Sourcebook or the Client Assets Sourcebook in the FSA Rules, on Fidelity's part.
(c)	Fidelity accepts no responsibility for Investments until cleared funds are received, nor for any loss or delay caused in the payment or transfer of funds to Fidelity. Fidelity shall be entitled to cancel any transaction for the purchase of Investments if cleared funds are not received by Fidelity within seven days of accepting your instructions (regardless of the method of payment), and you agree to indemnify Fidelity against any resulting liabilities incurred by Fidelity in accordance with clause 11(a) above.
(d)	Neither Fidelity nor any agent shall be accountable to you or to any trust for any profit or benefit properly made or received by it in connection with Investments.
(e)	Investment products are generally designed and managed as longer-term investments. Short-term or excessive trading is discouraged because it may harm performance by disrupting portfolio management strategies and by increasing expenses. Fidelity actively monitors levels of trading and reserves the right to refuse to accept applications from anyone who is considered to have a history of short-term or excessive trading or whose trading has been or may be disruptive.
(f)	Fidelity will not be liable or have any responsibility of any kind for any loss or damage incurred or suffered by you as a result of any event or circumstance outside Fidelity's reasonable control (including without limitation, any losses following any failure, interruption or delay in the performance of Fidelity's obligations resulting from a breakdown, failure or malfunction of any telecommunications or computer service or system outside Fidelity's reasonable control), provided that Fidelity has complied with the FSA Rules on business continuity in all relevant respects.
(g)	For the purposes of this clause, references to Fidelity include its nominees. Fidelity will be responsible for the acts and omissions of any nominee it uses for the purposes of these Terms.
(h)	The only remedy available to the parties in respect of matters relating to the subject matter of the Terms is for breach of contract, other than where fraud or a claim under section 150 of the Financial Services and Markets Act 2000 is involved.
(i)	Fidelity will not be liable for any loss to you other than as expressly stated in this clause.
12.	Data Protection
(a)	For the purposes of the Data Protection Act 1998 ("DPA"), Fidelity is the data controller in respect of the personal information which you provide.
(b)	The personal information which you provide to Fidelity will be used for a number of different purposes including: (i) to administer the product or service for which you apply; (ii) to comply with legal and regulatory requirements; (iii) to identify you when you contact Fidelity; (iv) for internal analysis and research; and (v) to offer you investment services and products (except where you were introduced to Fidelity by an intermediary or if you ask Fidelity not to do so), and to help Fidelity to develop new ones. Fidelity may use external third parties to process your personal information on its behalf in accordance with the above purposes. It may also provide your personal information to any company to which it may transfer its rights and obligations under these Terms in accordance with clause 14(a).
(c)	Fidelity may share your personal information with the following third parties: (i) your financial adviser and any other party to the business relationship whom you tell Fidelity about (you should notify us in writing if you no longer wish us to share your personal information with any such party); (ii) other associated or affiliated Fidelity group companies for the purposes set out in this data protection statement; (iii) the Unclaimed Assets Register, in connection with the possible recovery by you of (for example) unclaimed distribution payments; (iv) other organisations for any of the following purposes: (a) compliance with any legal or regulatory requirements; (b) to protect Fidelity and its customers from theft and fraud; and (c) to take appropriate steps if Fidelity considers your levels of trading in Fidelity’s funds or in other funds made available by Fidelity to be short-term, excessive or disruptive.
(d)	Except as outlined in the preceding provisions of this clause or otherwise required by law, your personal information will not be passed to anyone without your permission. To comply with money laundering regulations, Fidelity may need to request additional evidence of identity from you, and may use a credit reference agency for this purpose (who will record that any enquiry has been made).
(e)	The personal information which you provide will be processed by Fidelity or associated or affiliated companies, who may be based outside of the EEA. This may involve the transfer of data by electronic media including the internet. Where your data is transferred outside of the UK, Fidelity will ensure that the recipient agrees to keep your information confidential and hold it securely in accordance with the requirements of the DPA.
(f)	If you complete an application on behalf of the applicant pursuant to a power of attorney, the personal information which you provide about the applicant (including information about the applicant's mental health) may be processed by Fidelity and its associated and affiliated companies as set out in this clause. In addition, information about your position as attorney will be held for the purpose of administering the product or service for which the applicant has applied.
(g)	With limited exceptions, you may ask for a copy of the personal information which Fidelity holds on you. Fidelity is allowed by law to make a charge for this. If any of the information which we hold about you is incorrect, you should tell us and we will amend it.
13.	Complaints and Compensation
(a)	Fidelity has established procedures in accordance with the FSA's requirements for the consideration of complaints. In addition, you have the right to complain directly to the Financial Ombudsman Service. Details are available from Fidelity on request.
(b)	Fidelity is covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the Scheme if Fidelity cannot meet its obligations. This depends on the type of business and the circumstances of the claim. Most types of investment business are covered for 100% of the first £30,000 claimed and 90% of the next £20,000, so the maximum compensation is £48,000. Further information about compensation arrangements is available from Fidelity or from the Financial Services Compensation Scheme. Recognised Funds are not covered by the Financial Services Compensation Scheme.
14.	Assignment, Delegation, Amendments and Termination
(a)	You consent to Fidelity's assigning to any appropriate Fidelity Group Company or any third party which is appropriately regulated and authorised by the FSA, all or any of its benefits and obligations under these Terms. You will be notified of any such assignment.
(b)	(b) Fidelity may appoint any person (whether or not a Fidelity Group Company) to advise on or perform any of its functions or responsibilities under these Terms and may provide information about you and your Investments to any such person. Fidelity will satisfy itself that any person to whom it delegates any of its functions or responsibilities under these Terms is competent to carry out those functions or responsibilities.
(c)	Fidelity may amend these Terms to: (i) comply with changes in law or regulation; (ii) correct inaccuracies, omissions, errors or ambiguities; (iii) take account of any corporate reorganisation inside the Fidelity group of companies and/or a transfer of our rights and obligations under these Terms to another company as contemplated by clause 14(a); and (iv) reflect changes in the scope and nature of the services, products or investments we provide or wish to provide under these Terms, or changes to our computer or database systems, our administrative processes and procedures, market practice or customer requirements. We will notify you of any amendments by writing to you, giving twenty-eight (28) days’ notice of a proposed amendment. Any amendments will comply with applicable laws and regulations including the FSA Rules. Remember also that you have a right to terminate at any time, if you do not like an alteration that we propose to make to the Terms, by following the procedure in these Terms. (See clause (d) - (f) below for how to terminate the Terms overall, and see also clause 26 for ISA holders or clause 44 for Share Plan holders.)
(d)	This Agreement will terminate if you sell all the units which you hold with Fidelity or FundsNetwork, following the completion of any such instruction. Subject to clause (f) you may also terminate this Agreement by giving notice to Fidelity which will be effective on receipt but will not affect transactions already initiated, or the completion of the requirements under clause (f) below.
(e)	Fidelity may terminate this Agreement with you by giving you one month's notice in writing. Where required to do so by any applicable law, Fidelity may terminate this Agreement immediately, in which case you will be notified in writing.
(f)	When this Agreement is terminated under clause (d) or (e) above, if you have not already done so, Fidelity will sell the Investments and pay you the proceeds together with any cash balance held in your account. Interest will not be paid on any cash balance if you have given notice of termination since the last monthly interest payment date. Fidelity may deduct any charges or other amounts due to it, and any reasonable additional expenses incurred in terminating your account. These Terms will not be considered terminated until this process is complete.
15.	Conflicts of Interest and Best Execution
(a)	A statement of Fidelity's policy regarding Conflicts of Interest is attached hereto at Appendix 2. This describes how we deal with different conflicts that may arise within our business.
(b)	A statement of Fidelity's Best Execution policy is attached hereto at Appendix 1 and forms part of these Terms. This describes our policy to enable us to deliver the best possible result for clients when dealing with orders for them under these Terms. By accepting these Terms, you consent to the Best Execution policy and, where applicable, you give your prior express consent to Fidelity's executing orders outside a regulated market or a multilateral trading facility (within the meaning of the FSA Rules).

16. Notices and Instructions

(a)	Notices and instructions to Fidelity should generally be in writing and signed by you. You should quote your customer reference number or account number when you write to us. You will be asked to provide your customer reference number (for identification and security purposes) if you contact us by telephone. All communications and notices from you should be addressed to: Fidelity International Oakhill House 130 Tonbridge Road Hildenborough Tonbridge, Kent TN11 9DZ Instructions to purchase or redeem Investments should be made according to the directions on our website or in our literature. Notices relating to the Share Plan should be given in accordance with the provisions in Section 3.
(b)	(b) Notices and other documents (including statements, valuations and payments) to be given to you will be posted to the last address you registered with us and will be deemed received by you five days after posting. Fidelity will not take responsibility if you fail to provide us with any change in address, or for any mail which is intercepted or does not reach you. All communications between us shall be in English only.
(c)	If you are a user of Fidelity's Electronic Services, notices, instructions and communications generally between you and Fidelity may be sent electronically, subject to applicable regulations, and provided that instructions to redeem Investments must be confirmed in writing.
(d)	Fidelity is entitled to treat as valid, instructions given by you, or which we reasonably believe have been given by you or legitimately on your behalf even if that is not the case because of the wrongdoing or fraud of another person (unless that other person is an employee or agent of Fidelity or unless Fidelity has in some way failed to comply with any relevant obligation under the FSA Rules).
17.	Law
These Terms will be governed by and construed in accordance with English law. You and Fidelity submit to the exclusive jurisdiction of the English courts to settle any disputes arising under these Terms. Neither Fidelity nor you intend any provision of these Terms to be enforceable by any person other than themselves or their permitted successors or assignees.
Section 2 - ISAs
18.	Manager
Fidelity ISAs are managed by Financial Administration Services Limited (a Fidelity company), which is authorised and regulated by the FSA in the conduct of its investment business. Subject to the Regulations, your ISA will be managed in accordance with your directions set out in your Application Form.
19.	Investment Objective
The investment objective of your ISA will correspond to the Shares, Units or other qualifying investments specified in your Application Form. FundsNetwork ISAs - if you apply to open a FundsNetwork ISA, you must specify an investment choice in order for your application to be processed. If, however, in respect of the whole or part of your Application Form, you have selected a particular product provider and specified the amount of your contribution but have not clearly chosen the investment fund(s) in which you wish to invest, Fidelity may at its discretion invest your contribution in any one fund operated by that provider (being a fund agreed in advance for such purpose with the relevant provider), or where such a fund is not agreed, in the Fidelity UK Growth Fund. Fidelity shall have no liability to you in respect of its exercise of such discretion or its decision in any particular case not to exercise such discretion.
20.	Investments and Title
(a)	Your ISA includes your Investments and any cash balances, all income and other rights, and the benefit of any tax relief in respect of such investments. OEIC Shares, Recognised Fund Shares and Units will be registered either in the name of a nominee of Fidelity (which may be a Fidelity Group Company) or jointly in the name of such a nominee and in your name. Investment Trust Shares will be registered in the name of a nominee of Fidelity, which may be a Fidelity Group Company. Your ISA Investments will be, and must remain, beneficially owned by you and must not be used as security for a loan..
(b)	Your cash contributions and any other cash held under your ISA will be deposited, pending investment, with a bank selected by Fidelity, in an account in the name of Fidelity or its nominee (which may be a Fidelity Group Company). Interest will not be paid on cash balances held within your ISA unless you have elected for your cash to be held in the ISA Cash Park (see clause 35) or unless otherwise stated in these Terms. Fidelity does not accept liability for default by any bank which holds cash for your ISA. Fidelity will return the cash to you if it does not receive investment instructions from you within any period prescribed by the Regulations or otherwise permitted by HM Revenue & Customs.
(c)	If you transfer an existing ISA to Fidelity from another manager, Fidelity can, for certain funds and subject to the agreement of the existing manager, reregister the underlying shares or units in the name of its nominee to be held on your behalf. Re-registration may save you certain costs which might be incurred if cash only were transferred but may result in the loss of a very small fraction of one share or unit (less than 0.01%). This small loss will not be returned in any circumstances. If, following the Re-registration of more than one holding of shares or units, Fidelity receives an income payment, dividend, tax credit or other cash amount from the former manager, Fidelity may invest such amount in the largest holding by value (unless you have elected to be paid income). A charge may be made by the existing manager when you reregister the underlying shares or units with Fidelity. Alternatively, we can accept ISA transfers in the form of cash from your existing ISA manager.
(d)	If you transfer two or more ISAs from previous years to Fidelity, Fidelity may treat such previous ISAs as relating to a single year (and will do so if the existing manager has already bundled the products in this way).
(e)	Investment Trust Shares and Windfall Shares: Fidelity will aggregate orders for deals on each business day, and place all deals together. This may work to your advantage or disadvantage, in relation to a particular order, compared with the price you would have received if your order had been executed separately. Please see also Appendix 1.
21.	Income
(a)	Generally, Fidelity will reinvest all income in respect of Investments and all related tax reclaims, net of any tax liability (for example, stamp duty), without further instruction from you, unless you elect to be paid the income from your ISA as provided under "Income" in Section 1. Except in relation to shares in Edinburgh Investment Trust plc, no such election may be made in respect of Investment Trust Shares, the income from which will be reinvested. Fidelity MoneyBuilder Cash ISA Fund only - see Section 2.
(b)	Amounts awaiting reinvestment will earn interest, which is accrued daily and paid into your account monthly, at a variable rate of interest based on a deposit rate obtained from a bank selected by Fidelity, and will be applied to the individual cash balances held by you for each Year in your ISA (for interest on cash held within the ISA Cash Park, see clause 35). The HM Revenue & Customs Charge will be deducted on interest which is earned on cash held within your ISA. This will be deducted before the interest is paid into your account. No such deductions are applicable to interest accrued in your ISA account. Interest earned will be used to buy Units or Shares in a fund which you have Investments where there has most recently been activity, provided that sufficient interest has accrued to buy at least 0.01 Units or Shares.
(c)	If you terminate your ISA with us, you may still be eligible for income or tax reclaims from the period in which the ISA was held. Such income or tax reclaims received on your behalf will be allocated to your account and will earn interest, and will be automatically paid to you, at a date to be selected by Fidelity, to your bank or building society, provided that no such payments will be processed unless the amount due is at least £1.
22.	Taxation
Fidelity will make all necessary claims for tax relief relating to your ISA. You must provide Fidelity with all information which it reasonably requests and you must immediately inform Fidelity of any change in your tax status or any other material change in your circumstances.
23.	Switching Investments
(a)	You may instruct Fidelity to sell Shares or Units and either to reinvest the proceeds in other Shares or Units or to hold the proceeds temporarily in cash. Such other Shares or Units or cash will still be held within your ISA.
(b)	If you have invested via FundsNetwork in a fund which ceases to be offered via FundsNetwork, Fidelity will encash your Shares or Units and seek your investment instructions.
(c)	Where cash is held under paragraph (a) or (b) above, Fidelity will retain it in an interest bearing account pending reinvestment in one or more alternative funds within FundsNetwork. Cash so held will earn interest, which is accrued daily and paid into your account monthly. The rates of interest which will be applied are variable based on a deposit rate obtained from a bank selected by Fidelity, and will be applied to the individual cash balances held by you for each Year in your ISA (for interest on cash held within the ISA Cash Park, see clause 35). The HM Revenue & Customs Charge will be deducted on interest which is earned on cash held within your ISA. This will be deducted before the interest is paid into your account. Interest earned will be used to buy Units or Shares in a fund in which you have Investments where there has most recently been activity, provided sufficient interest has accrued to buy at least 0.01 Units or Shares, unless you have elected for your cash to be held in the ISA Cash Park, in which case interest will be retained as cash. Fidelity will return the cash to you if it does not receive investment instructions from you within any period prescribed by the Regulations or otherwise permitted by HM Revenue & Customs.
(d)	In accordance with UK tax law, in order to pay interest distributions without deduction of income tax to eligible investors, special "gross paying" share classes may be established in certain funds. Fidelity will have the right to switch your Investments into a gross paying share class if Fidelity reasonably believes that you are eligible to receive interest distributions without deduction of tax. Fidelity will also have the right to switch your Investments out of a gross paying share class if notified of your death or otherwise if Fidelity ceases to believe that you are eligible to receive interest distributions without deduction of tax. Any such Switch will be carried out without cost to you.
(e)	If you switch from one Investment to another, or sell your Investments or any part thereof, you will receive a notice confirming your transaction following the completion of the transaction
24.	Cash Withdrawals
(a)	You may, by request to Fidelity, make cash withdrawals from your ISA. Withdrawals will be processed by Fidelity within 14 days of the receipt of your request.
(b)	Unless otherwise permitted by Fidelity from time to time, the minimum withdrawal is £1,000 and the Investments remaining in your ISA after a withdrawal must have a minimum value of £1,000 (failing which Fidelity may treat your request as an instruction to terminate your ISA).
(c)	Withdrawals will be met by selling Investments. Unless you give Fidelity instructions with your withdrawal request, Fidelity will have discretion to choose which Investments to sell.
(d)	The amount to be withdrawn will be paid to you following the receipt of cleared funds resulting from the sale of Investments. Payment is normally by direct credit to your bank or building society or, if agreed with Fidelity, may be by sterling cheque made out to you and sent to your home address.
(e)	A charge may be payable in respect of withdrawals of the proceeds of sale of Windfall Shares from Windfall ISAs - see "Charges for Windfall ISAs" in Section 2.
25.	Charges
(a)	Initial Charge The following initial charges are payable both in respect of an ISA opened with Fidelity and an existing ISA transferred in cash to Fidelity. In the latter case, the charge will be deducted from the amount transferred. For actual charges as they apply to individual Products, please refer to the relevant Simplified Prospectus or Key Features Document *Fidelity Products:* Except as provided below in relation to Investment Trusts and MoneyBuilder ISAs, if your first lump sum investment in a Year is in Units or Shares in a Fidelity Product, you pay an initial charge of up to 3.5% of your contribution. This charge is taken from the amount which you send to us to invest and the remainder is invested in the Shares/Units. Regular contributions under a monthly savings plan are subject to an initial charge of up to 3.5%. If your first investment in a Year is in Investment Trust Shares, you will pay an initial charge of up to 3.5% of your contribution. Subsequent investments in Units and Shares in Fidelity Products (except for MoneyBuilder ISAs) in the same Year are subject to an initial charge of up to 3.5%. There is no initial charge on contributions to a MoneyBuilder ISA. *Other Products - FundsNetwork:* If your ISA is a FundsNetwork ISA and your first lump sum investment in a Year is in funds which are not Fidelity Products, you will pay an initial charge of up to 5.5% of your contribution, which is added to the net price of the Shares, Recognised Fund Shares or Units which you choose. Regular contributions under a monthly savings plan are subject to an initial charge of up to 5.5%. Subsequent investments are subject to the same initial charges. The net price of the OEIC Shares, Recognised Fund Shares or Units means the normal price for the relevant OEIC, Unit Trust or Recognised Fund or the normal offer price for the relevant Unit Trust (where the Unit Trust is dual priced), as the case may be, reduced by the full amount of its standard initial charge.
(b)	Switching Charge Fidelity Products: If you switch Units or Shares, you will normally pay a switching charge equivalent to 0.25% of the net price of the new Units or Shares, although in some cases the normal initial charge may apply (see paragraph (a) above). If, however, you switch Units or Shares for which there was no initial charge on purchase, normal initial charges apply (see paragraph (a) above). *Other Products - FundsNetwork:* If you switch some or all of the OEIC Shares, Recognised Fund Shares or Units held in your ISA, you will pay a switching charge equivalent to 0.25% of the net price of the new OEIC Shares, Recognised Fund Shares or Units.
(c)	Equity Dealing Charges For all purchases and sales of equities in an ISA which invests in Investment Trust Shares or Windfall Shares, Fidelity will deduct any commission, charges (including electronic brokerage dealing charges), levies or taxes (including stamp duty) incurred on these transactions.
(d)	Management Fees Holdings of Shares and Units are also subject to management fees, charges and expenses. These are deducted from the property of the Investment Trusts, OEICs, Recognised Funds and Unit Trusts and not from your ISA.
(e)	Edinburgh Investment Trust – Annual ISA Administration Charge If you hold shares in Edinburgh Investment Trust plc ("EIT Shares") within an ISA, an annual management charge will be deducted in arrear in two half-yearly instalments, based on the value of your EIT Shares on 30 June and 31 December. The charge is 0.25% plus VAT per half year. Fidelity will have the right to levy an additional charge of 0.25% plus VAT per half year if you invested via an authorised intermediary.
(f)	Fidelity shall be entitled to deduct and retain all charges payable under these Terms and may apply any cash or sell any Investments to pay such charges or to pay any tax or other liabilities under your ISA.
26.	Termination
(a)	You may terminate your ISA by giving notice to Fidelity which will be effective on receipt but will not affect transactions already initiated.
(b)	Fidelity may terminate your ISA by giving you one month's notice in writing. If it becomes impractical or impossible to comply with the Regulations, Fidelity may terminate your ISA immediately, in which case you will be notified in writing.
(c)	When an ISA is terminated under paragraph (a) or (b) above, Fidelity will sell the Investments and pay you the proceeds together with any cash balance held in the ISA. Interest will not be paid on any cash balance if you have given notice of termination since the last monthly interest payment date. Fidelity may deduct any charges or other amounts due to it, any tax liabilities under the ISA, and any additional expenses incurred in terminating the ISA.
(d)	Your ISA ceases to be exempt from tax on your death and will terminate. Fidelity will reinvest any income received after your death and any previous election to be paid income will lapse. Any outstanding instalments under a phased investment option for an ISA will be invested as a single lump sum after your death. *Investments other than Investment Trust Shares and Windfall Shares:* when informed of your death, Fidelity will close your ISA but continue to hold the Investments until the original or a sealed office copy of the grant of representation is received. The value of the Investments will continue to fluctuate during this period. Fidelity will then seek instructions from your personal representative(s). Investment Trust Shares and Windfall Shares only: when informed of your death, Fidelity will close your ISA, sell the Investments and hold the proceeds in a client account (which shall earn interest) until the original or a sealed office copy of the grant of representation is received. Fidelity will then seek instructions from your personal representative(s). Interest earned will be accrued daily and paid into your account monthly. The rates of interest which will be applied are variable based on a deposit rate obtained from Barclays Bank. The interest earned will be subject to a charge levied by HM Revenue & Customs in regard to interest earned on monies held for a deceased person (currently this charge is 20% of the interest earned). In either case, Fidelity may deduct any charges or other amounts due to it, any tax liabilities under the ISA, and any additional expenses incurred in terminating the ISA. When the formalities are concluded, Fidelity will transfer the cash balance of your ISA to your personal representative(s) or reregister the Investments in a different name or names if so instructed by your personal representative(s). These Terms are binding on your personal representative(s).
27.	Void ISAs
Your ISA will be managed in accordance with the Regulations, which take precedence over these Terms. Fidelity will notify you if, by reason of any failure to satisfy the provisions of the Regulations, your ISA has or will become no longer exempt from tax by virtue of the Regulations. When an ISA is voided, Fidelity will sell the Investments and, after making the deductions referred to below (if any), pay to you the proceeds together with any cash balance held in the ISA. Fidelity may deduct any charges or other amounts due to it, any tax liabilities under the ISA, and any additional expenses incurred in terminating the ISA.
28.	Application to Open an ISA; Method of Payment
(a)	An application to open an ISA must be made on an Application Form, which may be completed in hard copy, by telephone or via Fidelity's Electronic Services.
(b)	A FundsNetwork ISA opened via Fidelity's Electronic Services may be invested in any funds offered via FundsNetwork. In addition, a FundsNetwork ISA may be opened with a hard copy FundsNetwork Application Form specifically branded as such and offering a choice of funds available via FundsNetwork. Otherwise, an ISA opened by hard copy or telephone application may be invested only in Fidelity Products.
(c)	On acceptance of an application, each new ISA will be designated by Fidelity as either a Cash ISA or a Stocks and Shares ISA. You may not subscribe for more than one Cash ISA or more than one Stocks and Shares ISA in the same tax year.
(d)	You may invest one or more lump sums in your ISA during the Year. In addition or alternatively, when provided in the Application Form you may make regular contributions by direct debit under a monthly savings plan. You will be sent an acknowledgement when you make a lump sum contribution or set up a monthly savings plan. NOTE: Applications for monthly savings plans must be received by the end of February in any year to ensure that the first contribution will be made in the then current tax year. Applications received after the end of February will be processed as soon as practicable but the first payment may not be collected until after 5 April, in which case your ISA would fall into the next tax year.
(e)	When provided in the Application Form, you may request Fidelity to invest your initial lump sum subscription and any additional lump sums in up to 6 equal monthly instalments starting immediately, with subsequent investments made at the same date each month. Pending investment, your money will be held on deposit and will earn interest, which is accrued daily and paid into your account monthly. The rates of interest which will be applied are variable based on a deposit rate obtained from a bank selected by Fidelity, and will be applied to the individual cash balances held by you for each Year in your ISA. The HM Revenue & Customs Charge will be deducted on interest which is earned on cash held within your ISA. This will be deducted before the interest is paid into your account. Interest earned will be used to buy Units or Shares in a fund which you have Investments where there has most recently been activity, provided that sufficient interest has accrued to buy at least 0.01 Units or Shares.
(f)	If at any time during the phasing period you wish Fidelity to invest the remaining balance of the money awaiting investment as a lump sum, you may instruct Fidelity to effect this. You must inform Fidelity if you wish to change your selection of Units or Shares during the phasing period or when you invest an additional lump sum. Fidelity will effect the change as soon as practicable after receiving your instructions. For details of how to switch Investments already held, see under "Switching Investments".
(g)	If your ISA is opened by hard copy application, you must (in the case of a lump sum investment) either submit with your Application Form a cheque for the full amount of your initial subscription or make payment by debit card with the Maestro or Visa symbol for the full amount of your initial subscription. In addition or alternatively, in the case of regular contributions, you must submit a direct debit instruction to your bank or building society. If your ISA is opened by telephone application, you may also use any of these methods of payment. Fidelity will accept your instructions by telephone for subsequent lump sum contributions if payment is made by debit card with the Maestro or Visa symbol. Subsequent lump sum contributions may also be made by cheque.
(h)	The phased investment option mentioned above at 28(e) is not available for ISAs being transferred in from other managers, or when switching Investments within your ISA.
(i)	If you wish to redeem any Shares or Units in order to invest the proceeds in an ISA, such instruction for redemption must be received by Fidelity not later than five days before the end of the tax year. The end of the tax year is 5 April of each year. This is due to the time required for the instruction to be processed and the amount generated by the redemption to be available for re-investment in the ISA.
29.	Fidelity MoneyBuilder Cash ISA Fund (Cash ISAs only)
(a)	The provisions of this clause apply only to investment in Fidelity MoneyBuilder Cash ISA Fund (the "Cash ISA Fund") within a Cash ISA. In the event of any conflict between this paragraph and any other provision of these Terms, this clause will take precedence.
(b)	If you hold income units in the Cash ISA Fund, your income will be reinvested without requiring further instruction from you in further income units.
(c)	It is a condition of investment in the Cash ISA Fund that you are a qualifying individual for the purposes of the Regulations. If you do not comply or cease to comply with this condition, your units will be cancelled (at the direction of Fidelity acting as your agent).
30.	Transfer to a Different ISA Manager
(a)	You may instruct Fidelity to transfer to another approved manager either (i) the whole of your ISA, or (ii) part of your ISA ("a partial transfer", that is a transfer of part of the realised Investments and cash held in your ISA), subject to and in accordance with the Regulations. Transfers will be processed by Fidelity within such time as you may stipulate (not being less than 14 days) and in any event within 30 days of receipt of your instruction. Except as provided in clause 5(e) (Re-registration of Fidelity Products), only cash may be transferred, and Fidelity will convert your Investments into cash after agreeing the transfer with the new manager. Fidelity may deduct from the transfer any sums due to it.
(b)	In the case of a partial transfer, the Investments remaining after the transfer must, unless otherwise permitted by Fidelity, have a minimum value of £1,000 failing which Fidelity may treat your instruction as an instruction to transfer the whole ISA.
31.	Charges for Windfall ISAs
(a)	If you had an account with Fidelity on 5 April 1997: There are no annual charges to hold Windfall Shares in a Windfall ISA, and no fee is charged for processing dividends. No brokerage charges will be payable on the sale of Windfall Shares held within a Windfall ISA. However, Fidelity may charge a fee of £35 for each sale transaction in respect of each type of Windfall Share held in a Windfall ISA if the sale proceeds are withdrawn from the ISA. If the proceeds of sale of Windfall Shares are reinvested in Shares or Units in an ISA (other than OEIC Shares or Units in the MoneyBuilder Range), an initial charge of up to 3.5% will be deducted.
(b)	If you did not have an account with Fidelity on 5 April 1997: There are no annual charges to hold Windfall Shares in a Windfall ISA if you made an investment with Fidelity in addition to your Windfall ISA by 5 April 1999, failing which an annual charge of £15 (plus VAT where it is relevant) will be made. VAT at the time of publishing these Terms is 17.5% but this may change from time to time. No brokerage charges will be payable on the sale of Windfall Shares held within a Windfall ISA, but a handling fee may be payable. If the proceeds of sale of the Windfall Shares are withdrawn from the ISA, a handling fee of £35 may be charged for each sale transaction in respect of each type of Windfall Share sold. If the proceeds of sale of Windfall Shares are reinvested in Shares or Units in an ISA (other than Shares or Units in the MoneyBuilder Range), initial charges will apply as in paragraph (a) above.
(c)	If the Windfall Shares held in a Windfall ISA are sold and reinvested in a general ISA, all of the terms for ISAs (other than for Windfall ISAs) will apply to the ISA after the sale of the last Windfall Shares held and it will cease to be a Windfall ISA.
32.	Income Income from Windfall Shares held in a Windfall ISA and any capital repayment or other extraordinary payment relating to Windfall Shares, together with all related tax reclaims, will be reinvested net of any tax liability without requiring further instruction from you, unless you elect to be paid income from your ISA - see "Income" in clause 21 for details of how income will be treated and the application of interest to the income. Where income is automatically reinvested, annual statements will show details of the purchase of additional Windfall Shares without separately recording the receipt of income. The income option for Windfall Shares is not available where Investment Trust Shares are also held within your ISA.
33.	Sales of Windfall Shares Fidelity shall have discretion as to the timing of the sale of Windfall Shares, but sales will in any event be effected within one business day of receipt of your valid instruction to sell.
34.	ISA Mortgages
(a)	Fidelity may advise the Lender if your ISA is transferred to another manager if requested to do so.
(b)	You authorise Fidelity to disclose to the Lender full details regarding any request to terminate your ISA, your contributions to your ISA, the value and projected value of your ISA, and any other information regarding your ISA which the Lender may reasonably request.
(c)	Fidelity is not responsible for the conduct of the Lender or of your insurer and Fidelity gives no warranty in relation to your mortgage with the Lender or insurance policy with your insurer.
35.	ISA Cash Park When provided for in an Application Form, you may elect to use the ISA Cash Park. Cash pending investment will be held on deposit and will earn interest, which is accrued daily, commencing the fourth business day after receipt, and paid into your account quarterly. The rates of interest which will be applied are variable based on a deposit rate obtained from a bank selected by Fidelity, and will be applied to the individual cash balances held by you for each Year in your ISA. On the interest which is earned Fidelity will retain an administration charge of typically 0.4% of the deposit value (full details can be provided on request). The HM Revenue & Customs Charge will be deducted on interest which is earned on cash held within your ISA. This will be deducted before the interest is paid into your account. Fidelity will return the cash to you if it does not receive investment instructions from you within any period prescribed by the Regulations or otherwise permitted by HM Revenue & Customs
SECTION 3 - SHARE PLANS ONLY
In this Section 3, "Trusts" shall mean Fidelity European Values PLC, Fidelity Japanese Values PLC, Fidelity Special Values PLC, Fidelity Asian Values PLC, The Edinburgh Investment Trust plc and any other investment trust company which may from time to time be managed by Fidelity and whose ordinary shares are quoted on the Daily Official List of the London Stock Exchange. "Securities" shall mean ordinary shares in the issued share capital of any of the Trusts (and any other class of capital in the Trusts which Fidelity makes available in the Share Plan).
36.	Application and Investment
(a)	You may invest in the Share Plan either by investing a lump sum in accordance with clause 38 below, or by opting for the Regular Savings option under clause 37. Fidelity will accept payments by cheque for the full amount of your initial investment and for any subsequent contributions, or by regular contributions (as set out in clause 37) by direct debit under Regular Savings, in which case a direct debit instruction to your bank or building society must also be submitted. The Share Plan is open to residents of the UK only.
(b)	You may invest in the Share Plan by lump sum and simultaneously set up a Regular Savings account, provided that the requirements in respect of each of these options are satisfied.
(c)	Subject to clause 45 below, an application to participate in the Share Plan will become irrevocable on receipt by the Share Plan Administrator of the Application Form. Thereafter, you may only leave the Share Plan in accordance with the provisions of these Terms.
(d)	Fidelity reserves the right to reject, at its sole discretion and without giving any reason, any application to participate in the Share Plan (including an application in respect of a person who may already be a participant under one or both of the Share Plan options). In particular, Fidelity may from time to time set a limit on the value of any securities which may be purchased or sold through the Share Plan, details of which will be available on request from Fidelity.
(e)	You are not entitled to transfer or otherwise assign your participation in the Share Plan.
(f)	Fidelity and the Share Plan Administrator cannot give advice on whether investment in investment trusts or participation in the Share Plan is suitable for you, or recommend in which type of security you should invest. As with all Stock Exchange investments, the market prices of securities in any Trust will fluctuate according to supply and demand, market conditions and other factors. The value of securities in the Trusts can fall as well as rise and you may not get back the full amount invested.

37.	Regular Savings
You may make a regular payment into the Share Plan to purchase securities subject to the following conditions:
(a)	Payments may be made monthly into one or more of the Trusts, provided that the minimum amount of the monthly payment shall be £50 per Trust.
(b)	All regular savings payments should be made monthly by direct debit, to be collected by the Share Plan Administrator on behalf of Fidelity on the 12th day of the month or, if not a business day, the next business day. Money received will be used to purchase securities five working days after the collection date.
(c)	Payments not received on the 12th day of any month will not, unless Fidelity in its sole discretion decides otherwise, be eligible for investment until the following month.
(d)	You may from time to time increase or decrease the regular payment (subject to the minimum amounts specified in clause 37(a) above) or change the Trust(s) in which investment is to be made by writing to the Share Plan Administrator with details of your Share Plan account number, full name and address (or the full name and address of the first holder in the case of joint holdings) and specifying the revised regular payment and/or the Trust(s) into which investment is to be made and the proportional split of such investments.
(e)	If you are making regular payments in accordance with clause 37(a) above you may make 'top-up' contributions of £250 or more per Trust at any time by writing to the Share Plan Administrator with details of your Share Plan account number, full name and address (or the full name and address of the first holder in the case of joint holdings), the Trust into which the investment is to be made (which must be a Trust into which regular contributions are being made or have been made) and enclosing a cheque for the relevant amount made payable to FIL Investments International.
(f)	Top-up payments which have been received by 11am on any business day will be invested on the next Business Day on which investments are made into the Trusts.
(g)	Cash dividends received on your behalf will not be distributed but will be used to purchase further securities in the Trust to which such dividends relate, on the next Business Day on which investments are made into the Trusts.
(h)	Where dividend reinvestment is being made, dividends amounting to less than the cost of purchasing a share will be held on your behalf until further cash is available for investment.
38.	Lump Sum
You may at any time invest a lump sum in the Share Plan subject to the following:
(a)	The minimum initial investment for the lump sum option shall be £1,000 per Trust. A subsequent lump sum investment may be invested in the same Trust provided that the minimum amount is not less than £250 per Trust.
(b)	Payments made by new investors must be accompanied by an Application Form: if you are an existing participant you need not fill in an Application Form but should supply details of your Share Plan account number and full name and address (or the full name and address of the first holder in the case of joint holdings).
(c)	Payments which have been received by 11am on any business day will be invested on the day of receipt. Payments received after 11 am on any business day will be invested on the next business day.
(d)	You may elect that cash dividends received in respect of securities held in the Share Plan are distributed to you. Cash dividends received will, unless you elect to have them distributed to you, be used to purchase further securities in the Trust to which such dividends relate.
(e)	Where dividend reinvestment is being made, dividends amounting to less than the cost of purchasing a share will be held on your behalf until further cash is available for investment.
39.	Operation and Administration of the Share Plan
(a)	Fidelity will be responsible to you for, and may delegate to, the Share Plan Administrator (i) the safe custody of monies received; (ii) the distribution of details regarding purchases or sales made on your behalf; and (iii) the maintenance of the necessary records.
(b)	Fidelity may, at its discretion, employ any other agent or agents in place of or in addition to the Share Plan Administrator to provide administrative services to the Share Plan on its behalf and Fidelity may delegate all or any of its rights and functions in relation to the Share Plan to its agent or agents from time to time. Fidelity or any such agent or agents may charge for their services and neither Fidelity nor any agent or agents shall be accountable to you for any such charges made.
(c)	Neither the Trusts (nor any of them) nor the directors of the Trusts (nor any of them) are liable for any loss that may be suffered by you in the Share Plan or for any misconduct or irregularity on the part of Fidelity, or the Share Plan Administrator or any other agent in carrying out their respective responsibilities for setting up, operating and administering the Share Plan.
40.	Purchase of Securities
(a)	Fidelity will purchase, at its discretion as to timing and price (subject to both the other provisions of these Terms and all legal and/or regulatory requirements to which it may be subject from time to time), the maximum possible whole number of securities chosen by you on one or more days on which Fidelity deals. It shall use its reasonable endeavours to fulfil all orders but shall not be liable for failure to do so for reasons beyond its control (subject to compliance with the FSA Rules on business continuity).
(b)	Shares may also be acquired by subscribing for new shares. The subscription price will be the market offer price at the time of the subscription.
(c)	You are required to sign a waiver of your right to interest on monies held by Fidelity prior to purchase of securities under the Share Plan or (if applicable) their return.
(d)	All monies received under the Share Plan are paid into a separate non-interest bearing client account (in accordance with the FSA Rules) on behalf of Fidelity until the monies are invested pursuant to the Share Plan. Any uninvested cash balance will be carried forward without interest and added to your next payment for investment. In the case of the lump sum option, uninvested cash balances will be retained by Fidelity, and if you have elected for cash dividends to be reinvested, the cash balance will be aggregated with the next cash dividend for reinvestment.
(e)	In the event that the Share Plan Administrator is unable to purchase Securities required under the Share Plan within any period provided for under these Terms, the relevant uninvested cash will be carried forward without interest until the relevant Securities may be purchased.
(f)	As soon as reasonably practicable after the date of each purchase under the lump sum option, and any top-up purchase under the Regular Savings option, the Share Plan Administrator will send an advice note to you detailing the amount available for investment, the date of purchase, the number of securities purchased on your behalf in the relevant Trust, the price paid per security and the total cost of the purchase (including dealing charges (if any), stamp duty and commission payable, as applicable). Statements containing relevant trade confirmation information (as defined by the FSA Rules) will be sent to you in respect of purchases and redemptions effected through the Share Plan.
(g)	Fidelity reserves the right to deal before the receipt of cleared funds. Fidelity further reserves the right, if such funds are not received within five days of the receipt by the Share Plan Administrator of an Application Form or other instruction, to sell or realise the relevant securities without further notice to you in order to meet any liabilities which Fidelity may have incurred on your behalf. In the event of such a sale or realisation the Nominee shall be entitled to transfer such securities to such persons as Fidelity shall specify.
41.	Holding of Securities
The Nominee will be the registered holder of Securities purchased through the Share Plan on your behalf. The Nominee will hold the Securities in uncertificated format in CREST, to your order. The Nominee may be changed from time to time. Further information on nominees is set out in clause 5(c).
42.	Sale and Transfer of Securities
(a)	Fidelity is able to arrange for the sale of securities acquired and held through the Share Plan on your behalf provided that such securities have been paid for.
(b)	Written instructions to sell together with all relevant details should be sent to the Share Plan Administrator, in which event the securities to which the instruction relates will be sold and the proceeds of sale sent by cheque one day prior to the relevant settlement day to your registered address.
(c)	Sales of securities for which instructions have been received by 11am on any business day will be effected daily upon receipt.
(d)	A statement showing the number of securities sold and the net proceeds of the sale will also be sent separately to you.
(e)	Alternatively, you may arrange the sale of securities through a different broker, in which case you must inform the broker that the securities are held in the Share Plan and inform the Share Plan Administrator as soon as possible. If you wish to transfer securities held in the Share Plan into your own name (or into the name of another) you should notify the Share Plan Administrator in writing. Sales or transfers of only part of your holding in the Share Plan will be permitted subject to retaining the minimum investment in the Share Plan specified for the lump sum option or continuing to participate under the Regular Savings option.
43.	Charges and Expenses of the Share Plan
(a)	Purchases and sales of securities on your behalf will be made free of any charges, but you will pay stamp duty of 0.5% on purchases and other costs that may be applicable from time to time.
(b)	Where you have been introduced to the Share Plan by an independent financial adviser, a commission may be paid to the independent financial adviser of up to 3% of the proposed monthly contribution or the lump sum investment. The commission will be deducted from each relevant contribution.
(c)	The Share Plan Administrator charges fees for providing administrative services in connection with the Share Plan. The Share Plan Administrator's fees, together with certain other costs relating to the Share Plan, are borne by Fidelity with the exception that Edinburgh Investment Trust Plc bears these fees and costs directly insofar as they are attributable to The Edinburgh Investment Trust plc.
(d)	Except as noted below, Fidelity receives fees from the Trusts for managing and administering the Share Plan and also for distribution and promotional services in connection with the Share Plan in such proportions as may be agreed between Fidelity and the Trusts from time to time. In relation to The Edinburgh Investment Trust plc only, Fidelity discharges all such costs out of the fee which it receives from the Trust for acting as investment manager.
44.	Leaving the Share Plan
(a)	You may leave the Share Plan at any time (and with immediate effect) by giving notice of such in writing to the Share Plan Administrator.
(b)	You shall be treated by Fidelity as having left the Share Plan: (i) On disposing of all of your securities held in the Share Plan or on a sale leaving less than £1,000 worth of securities held in the Share Plan (unless you continue to participate under the Regular Savings option); or (ii) Fidelity or the Share Plan Administrator on receiving notice in writing or otherwise becoming aware of your death or insolvency; or (iii) On the termination of the appointment of the Nominee holding securities purchased through the Share Plan on your behalf, except if such termination is followed by the appointment of a new nominee company to hold the securities approved by Fidelity.
(c)	Fidelity or the Share Plan Administrator may require you to leave the Share Plan on giving notice in writing in the following circumstances: (i) Where a payment which ought to have been made by you or on your behalf under the Regular Savings option was not made on the due date; or (ii) Where you have otherwise breached any of these Terms; or (iii) Where any of the information given by you or on your behalf on any Application Form proves to be incorrect; or (iv) Where any Trust in which you hold securities under the Share Plan has ceased or is about to cease its participation in the Share Plan.
(d)	In the event of termination pursuant to any of the above, you will, unless Fidelity or the Share Plan Administrator advise you otherwise, cease to participate in the whole Share Plan notwithstanding that the reason for this termination may have arisen from only one of the Share Plan options and/or in respect of only one or more of the Trusts. Fidelity will arrange for the transfer of securities held under the Share Plan to you as soon as reasonably practicable but subject to prior payment by you of any of Fidelity's charges and other costs.
(e)	In the event of termination pursuant to any of the above any uninvested cash held on your behalf will be returned to you after the relevant securities have been transferred to you out of the Share Plan, except where you had been a Participant under the Regular Savings option and your participation in the Share Plan terminated after the 7th day of any month, in which case any uninvested cash will be deemed available for investment during that month and may be invested pursuant to the Share Plan.
(f)	Termination will be without prejudice to transactions already initiated.
45.	Termination of the Share Plan
(a)	Fidelity may at any time terminate the Share Plan or any of its provisions on giving not less than one month's notice in writing to you at the time of such notice.
(b)	On termination of the Share Plan, all securities held under the Share Plan will be transferred to you if you are entitled to receive them. Any uninvested cash held on your behalf will be returned to you.
46.	Rights Issues, Bonus or Scrip Issues etc
(a)	Fidelity will, subject to the terms of issue and to any legal or other restrictions, endeavour to arrange for you to have an opportunity to instruct the Nominee to take up at your expense, or if appropriate, to dispose of securities offered by way of rights, open offer or otherwise relative to securities owned by you under the Share Plan.
(b)	Any securities allotted to the Nominee pursuant to your instructions in respect of such rights, open offer or otherwise or pursuant to a scrip or bonus issue relative to securities owned by you under the Share Plan shall, in the case of types of securities admitted to the Share Plan on the date of allotment or issue, be and continue to be held under the same Share Plan option as the securities which gave rise to the right and subject to these Terms and, in the case of types of securities not admitted to the Share Plan on the date of allotment or issue, be transferred to you at your expense, which expense may include the Share Plan Administrator's handling charge.
47.	Correspondence and Notices
(a)	All communications to Fidelity or to the Share Plan Administrator in relation to the Share Plan should be clearly marked the 'Fidelity Investment Trust Share Plan'. These communications should be sent to Fidelity Investment Trust Share Plan, Lloyds TSB Registrars Scotland, PO Box 28448, Finance House, Orchard Brae, Edinburgh EH4 1WQ, or to such other address as Fidelity or the Plan Administrator may notify you in writing. These Terms are issued jointly by: FIL Investment Services (UK) Limited (No.2016555) FSA registered No 121939 FIL Investments International (No.1448245) FSA registered No 122170 Financial Administration Services Limited (No.1629709) FSA registered No 122169 All of Oakhill House, 130 Tonbridge Road, Hildenborough, Kent TN11 9DZ Authorised and regulated by the Financial Services Authority. Registered in England and Wales. CB33266

APPENDIX 1

Best Execution Disclosure Statement

The following describes our policy to enable us to deliver the best possible result for clients when dealing with orders for them under these Terms.

When we deal with an order to buy or sell Investments under these Terms, we will do so in a way that achieves the best possible result for you in the circumstances. In regulatory terms, this may involve execution outside of a regulated market or multilateral trading facility

Orders relating to funds - The only method available for dealing with most of these in practice is to transmit them to the operator of the fund or its agent for execution. For the most part, operators will therefore be the only "execution venue" that we use. Our policy generally requires us to consider various execution factors in deciding how best to execute a client order. These include price, cost, speed, likelihood of execution and settlement, size, nature and other relevant matters. Ordinarily, we will consider price to be the most important factor for you. However, where there is only one execution venue that we can use in practice to deal with your orders, we will have to use that venue regardless of the impact of other execution factors. Sometimes a fund may be available via another trading platform provided by a third party. Strictly speaking, this could be an alternative execution venue. However, we do not use such platforms, as we do not believe that we would obtain a better price by doing so.
Orders relating to Investment Trust Shares - When it is necessary to buy or sell these shares for you under the Terms, we send an order to a stockbroker selected by us. The stockbroker must provide us with the best possible result in terms of price and other relevant execution factors that it can achieve in the circumstances. At present, only one or two stockbrokers are used for this purpose, as we believe this helps us negotiate the lowest fees and charges possible. We pay these ourselves, without having to pass them on to you. We will monitor the prices they achieve on a regular basis to ensure they meet this obligation

We will monitor the effectiveness of our best execution policy and arrangements and implement any necessary changes from time to time. In particular, we will consider what other possible execution venues and stockbrokers we could use, and whether doing so would generate a better result for you. We will notify you of any material changes to our best execution policy and arrangements made from time to time, where they are relevant to you.

Please note, however, that our best execution policy will not apply:

When you give us specific instructions as to how you would like your orders dealt with. This may prevent us from taking steps that we have designed to obtain the best possible result in the circumstances.

When you give us an order to deal shares or units in Fidelity funds domiciled in the UK and these are not held in an ISA that we provide. FIL Investment Services (UK) Limited as operator of the relevant funds will deal direct with these orders and there will accordingly be no obligation to provide best execution.

This Disclosure is made in accordance with the FSA's Conduct of Business Rule) 11.2.

This statement is issued for and on behalf of the following companies:

FIL Investment Services (UK) Limited
FIL Investments International
Financial Administration Services Limited

APPENDIX 2

Conflicts of Interest Disclosure Statement

Introduction
Conflicts of interest exist in all businesses and at all firms. We live in a complicated world and this is reflected everywhere. Nevertheless we recognise that our business is above all based on a contract of trust with our clients and we are duty and honour bound to manage those conflicts.

At Fidelity International we have put in place a variety of policies, procedures and processes designed to manage these conflicts of interest. The purpose of this disclosure statement is to identify in a summary form those conflicts which we experience as an organisation and to describe how we address the challenges such conflicts pose us.

In this policy statement we include within the concept of "firm" all associate companies within the Fidelity International group and their employees - together "Fidelity".

Principal Investing
Within Fidelity there are companies which invest as principal in equities, bonds and other investments in which we may also invest for clients. Fidelity has an investment portfolio comprising equities, bonds, properties and holdings in collective investment schemes. Investment decisions regarding the investment portfolio are made independently of the investment management process which supports our client funds and accounts. In particular we draw your attention to Fidelity's investment in COLT (a UK listed company) where we have a significant holding to the extent that we do not permit our active funds to invest in COLT securities.

Fidelity venture capital
Fidelity has a venture capital activity which specialises in "go-to-market" capital. This activity does not have access to Fidelity's research effort supporting external clients, though it is able to seek the counsel of in-house experts who may be part of the investment team. It operates in a physically segregated area and is subject to information firewalls.

Seed Money etc.
As a normal business procedure Fidelity will invest in Fidelity funds (both open-ended funds and close-ended trusts for which we are managers), either as seed money or for investment portfolio reasons. In all cases Fidelity is treated in a manner that does not conflict with the interests of any other investor or would-be investor. Where we are managers of a UK-listed investment trust it is our policy also to have board representation.

Currencies
Fidelity trades currencies for the purposes of general balance sheet management as well as to support investment and commercial transactions within the group. This currency trading is carried out separat