Terms and Conditions of Pension Investment Account

Valid from 01.01.2021

  1. General provisions

    1. These Terms and Conditions of Pension Investment Account (hereinafter Terms and Conditions) govern the relations between the Bank and the Client upon provision of the Pension Investment Account Service (hereinafter Service) and are an integral part of the Pension Investment Account Agreement (hereinafter Agreement).
    2. The Terms and Conditions use the terminology provided in the Bank's General Terms and Conditions (hereinafter General Terms and Conditions), the Terms and Conditions of Payment Services and the Terms and Conditions of Provision of Investment Services.
    3. In matters not governed by the Agreement, the Bank and the Client shall also governed by the General Terms and Conditions, the Terms and Conditions of Payment Services and the Terms and Conditions of Provision of Investment Services, insofar as they are not in conflict with the Agreement.
    4. The requirements established in the Funded Pensions Act, the Income Tax Act, the Law of Obligations Act and the Securities Register Maintenance Act, as well as in related legislation, apply to the service.
    5. This Agreement is governed by Estonian law.

  2. Pension investment account service

    1. A Pension Investment Account is a special-purpose current account, where the transfer of funds takes place only to the extent provided by legal acts and where the funds on the account are used to execute transactions related to the Client's mandatory funded pension.
    2. Transactions may be made at the expense of funds held in a Pension Investment Account only with the assets specified in subsections (2) and (3) of paragraph 171 of the Income Tax Act (hereinafter Financial Assets), taking into account the provisions of subsections 4–8 of the same section.
    3. The Bank has the right to refuse to accept, transmit or execute a Payment Order or Transaction Order related to the Pension Investment Account, as well as the right to suspend or reverse execution of the order if it contradicts the provisions of legal acts.
    4. The Securities that are the object of the Financial Assets are held on the Bank’s Securities Account linked to the Pension Investment Account. The Securities Account is automatically opened for the Client upon concluding the Agreement.
    5. The Bank may hold the Client's Securities registered with Nasdaq CSD SE in a nominee account together with the Securities of other Clients.
    6. The Bank shall keep records of the Financial Assets held in the Pension Investment Account in a manner that enables the identification of each client and the determination of the specific Financial Assets held for each client.
    7. The Securities held in the nominee account of the Pension Investment Account are considered to be the Client's securities vis-à-vis the Bank and its creditors and are not part of the Bank's bankruptcy estate.
    8. When exercising the rights (including voting rights) arising from the Securities, the Bank shall follow the provisions of the Agreement and the Client's orders.
    9. At the request of the Bank, the Client is obliged to submit additional information and documents for the exercise of the rights provided in clause 2.8.

  3. Performing transactions

    1. The Bank shall perform Transactions with the funds on the Pension Investment Account based on a Payment Order or Transaction Order submitted by the Client.
    2. In performing the Agreement, the Bank shall only execute Transaction Orders for Securities that are the object of Financial Assets. The funds received from the sale of such securities shall be transferred to the Client's Pension Investment Account.
    3. Transactions with securities that are the object of Financial Assets shall be carried out in accordance with the General Terms and Conditions, the Terms and Conditions of the Provision of Investment Services and the Bank's Price List.
    4. The funds in the Pension Investment Account and the Financial Assets acquired using the funds may not be encumbered as collateral or in any other manner.

  4. Automatic investments

    1. The Automatic Investments option is activated by the Bank on the basis of a separate instruction from the Client.
    2. When Automatic Investments is activated, the Bank performs Transactions with the Securities that are the object of the Financial Assets, at a frequency of once a week, during a defined time period specified on the Bank's Website.
    3. If the Pension Investment Account does not have sufficient funds to execute Transactions related to Automatic Investments, the Bank shall at its own discretion perform the respective Transactions in part, to the extent of available funds.
    4. The Bank has the right to cancel the Transactions related to Automatic Investments in part or in full, if in the Bank's opinion it is not possible to execute them within 3 (three) Banking Days.
    5. The amount of Securities acquired through Automatic Investments shall be rounded to the eighth decimal place. As a result of this, the Client may acquire fractional Securities on the Pension Investment Account. Fractional Securities, including the Securities registered with Nasdaq CSD SE, may be acquired only in the name of the Bank and on account of the Client. Fractional Securities can be sold solely to the Bank.
    6. The Automatic Investments option may be terminated by the Client or ends upon termination of the Agreement.

  5. Rights and obligations of the parties

    1. The Client is obliged to regularly monitor the performance and appropriateness of the Financial Assets, including of the information published thereon, and, if necessary, to consider changing the choice of Financial Assets and/or the amount of money to be invested or terminating the Agreement.
    2. The Bank has the right to assume the relevance of the information provided by the Client, including the appropriateness of the Client's Securities, unless the Client has notified the Bank to the contrary.
    3. The Client is obliged to immediately notify the Bank of all (court) disputes related to the Client's Securities held on the nominee account.
    4. If the Client is involved in disputes related to the Securities, the Client undertakes to immediately transfer the respective Securities to a securities account with the Nasdaq CSD SE held in the name of the Client or in the name of a person appointed by the Client.

  6. Service fee

    1. The Client shall pay the Bank the management and transaction fees related to Pension Investment Account in accordance with the Bank's Price List. VAT shall be charged on the fee at the rate established by law.

  7. Liability

    1. The Client is responsible for the fulfilment of obligations arising from or related to the Financial Assets belonging to the Client. If the Client's obligation is called in from the Bank or on account of other clients of the Bank, the Bank has the right to collect the respective obligations from the Client.

  8. Validity and amendment of the Agreement

    1. The agreement shall enter into force upon signing and is concluded for an indefinite period.
    2. The Agreement may be amended and supplemented only by written agreement of the parties to the Agreement, unless the legal norms governing the relations arising from the Agreement change and the unilateral amendment of the Agreement by the Bank is justified by bringing it into conformity with legal provisions.

  9. Termination of the Agreement

    1. The Client has the right to terminate the Agreement at any time by notifying the Bank in the manner provided in the General Terms and Conditions at least 3 (three) Banking Days before the requested Agreement termination date, provided that the Financial Assets acquired through the Pension Investment Account have been transferred and, inter alia, the agreements entered upon the acquisition of the Financial Assets have expired, and all of the funds on the Pension Investment Account have been transferred to another Pension Investment Account held by the Client, or have been used for acquisition of Pension Fund units or entering into a Pension Agreement, or have been paid out to the Client.
    2. In addition to the provisions of the General Terms and Conditions, the Bank has the right to cancel the Agreement unilaterally without prior notice, if at least one of the following cases occurs:
      1. If the Client has not, within 4 (four) months of the conclusion of the Agreement, submitted an application for making contributions and/or an exchange application for transferring assets to the Pension Investment Account;
      2. If the Client has submitted an application for making contributions to the pension fund or another pension investment account held by him/her or has submitted an application for withdrawal provided that the Financial Assets acquired through the Pension Investment Account have been transferred and, inter alia, the agreements entered upon the acquisition of the Financial Assets have expired, and all of the funds on the Pension Investment Account have been transferred to another Pension Investment Account held by the Client, or have been used for acquisition of Pension Fund units or entering into a Pension Agreement, or have been paid out to the Client.
    3. Transactions, transfers and/or disbursements related to the termination of the Agreement shall take place in accordance with the procedure and to the extent provided by legal acts.
    4. Termination of the Agreement does not terminate the Bank's possible claims against the Client, including the Client's obligation to compensate damage caused to the Bank.
    5. Upon termination of the Agreement, the Bank has the right, at its own discretion, to take the necessary steps to prevent or reduce the Bank's possible losses.

  10. Final provisions

    1. All disputes arising between the Parties under the Agreement shall be resolved through negotiations. If no agreement is reached, disputes shall be settled in the court of the Bank's location in accordance with the legislation of the Republic of Estonia.
    2. By signing the Agreement, the Client confirms having read the Agreement and the Terms and Conditions with sufficient attention, understands the associated obligations, the principles of processing customer data, and the risks, and confirms that he/she has all the rights and authorisations to enter into the respective agreements.
    3. The Agreement is drawn up in two identical copies of equal legal force, one for each Party.