FSA has published an undertaking from Jarvis Investment Management plc, an asset management firm. FSA objected to terms in the firm's ISA, PEP and Nominee Standard Account Terms and Conditions which:
- allowed the firm to change its fees at its sole discretion without having to give reasons; and
- allowed the firm to vary the agreement by giving reasonable notice to the customer, again without having to give reasons.
Also, there was no method for customers to terminate the contract if they were not happy with the changes. The firm has agreed to change the terms, particularly to explain it will make changes (including changes to fees) only for a good reason and by giving at least 30 days' notice. The new term gives examples of reasons the firm might change the terms and allows customers to close their accounts without penalty if they do not agree the changes.