Regular Investors Scheme
What is the Regular Investor Scheme?
The FSL Regular Investor Scheme allows clients to build up a stock portfolio in a way that is easiest for them. Clients in the scheme invest as little as €100 or as much as €1,000 a month in an ETF of their choice. It doesn’t require a large commitment of capital up front and because it invests in EXCHANGE TRADED FUNDS (ETFs) it allows you to diversify your assets in a single investment therefore reducing your risk. Once clients have completed the initial paperwork and set up the direct debit the rest is handled by FSL so they can watch their portfolio grow!
THERE WILL BE A MINIMUM SUBSCRIPTION REQUIREMENT OF 50 PARTICIPANTS TO EACH SCHEME. IN THE EVENT THE SCHEME IS NOT FULLY SUBSCRIBED ALL INVESTMENT AMOUNTS WILL BE REFUNDED LESS ADMINISTRATION CHARGES.
How does the Regular Investor Scheme work?
The Scheme works by allowing you to benefit from both a diversified investment through an ETF and also lower costs as you benefit from a pooled investment.
Each month, clients pay into their account their investment amount from which their fees will be deducted. On the transaction date, their investment amount is pooled with the payments from all of the other participants in their scheme and a single transaction is executed with the market. Once the transaction has settled into the pooled account, each client’s individual share purchase and any residual amount will be transferred back to their individual client account.
Once you have opened your account and set up your automatic payment, your investments will just happen every month.
How much does it cost?
Because the scheme is based on pooled investment, you benefit from significantly reduced commission.
| Commission | €0.75 per €100 invested – less than 1% commission! |
| Account Set Up Fee | €20 |
| Annual Maintenance Charge | €15 – we can take this from your investment amount or from any residual funds in your account |
| Close out costs | If you wish to leave the scheme in under 2 years you will be charge full commission (for standard commission charges see FSL website) on your transaction plus any outstanding maintenance charges. After 2 years you will be charged €0.75 plus any outstanding maintenance charges. |
How do I invest in the Regular Investor Scheme?
Step 1: Choose an ETF to invest in.
The Regular Investor Scheme currently offers a choice of 4 ETFs including ISEQ20 ETF, ETFS Russell 1000 Fund, ETFS DAXGlobal Gold Mining Fund and ETFS DAXGlobal Alternative Energy Fund. Information on the individual ETFs is available on our website and our dealers would be happy to discuss the individual components of each of these with you.
Step 2: Decide how much you want to invest.
You can invest from €100 - €1,000 per month.
Step 3: Complete the application form.
Once you’ve decided on your ETF and your investment amount you can complete the Application Form and send it and your ID documentation into us. We will then process the form and include you in the scheme of your choice.
Step 4: Monitor your investment.
Once you have started investing in the scheme we will provide you with monthly updates on your investment. Each month you will receive a contract note and a statement which shows the amount you invested that month and the overall value of your investment on that date. In addition, the closing price for the ETFs will be available on our website from 4.30 each day.
What are the risks when investing?
All investments carry risk and all trading decisions of an individual remain the responsibility of that individual therefore you should ensure that you fully understand the risks involved and seek independent advice if necessary. By investing in the Regular Investor Scheme, the price or value of investments may fluctuate significantly and the value of investments may go down as well as up. Please note you are not certain to make a profit, you may make a loss or you may lose your entire investment. If there are income distributions, they may also fluctuate significantly. Past performance is not a reliable indicator of future performance. References to ETFs should not be construed as a recommendation to buy or sell these instruments.
