- Frequently Asked Questions
- FAQs : Why WhiskyInvestDirect?
- FAQs : Safety
- FAQs : Storage
- FAQs : Operational
- FAQs : About Us
- FAQs : Governance
- FAQs : Robots
- How to do it
- Fund my account
- View our tariff
- Buy whisky
- Validate my account
- Submit a document
- Sell my whisky
- Withdraw funds
- Use the order panel
- Monitor my orders
- Cancelling my order
- Modify account settings
- Modify my limit price
- See my trading history
- Prove my money is safe
- Cask lists and client bank statement
- Understand my statement
- In case of death
- Close my account
- Contact WhiskyInvestDirect
- Make a complaint
- Whitelist our emails
- Become a referrer
Terms and Conditions
- WhiskyInvestDirect's legal identity
- Deemed acceptance and prevailing versions
- The purpose of our business relationship
- Security & privacy
- Special measures for your extra protection
- Care of your money
- Pooled Accounts
- Acceptable ways of making deposits
- Your deposit and your linked bank account
- Reversible deposits
- Unidentifiable deposits
- Withdrawing your money
- How we treat small cash balances
- Unsettled charges
- Account suspension and closure
- Confidentiality, money laundering, and the linked bank account
- Care of your whisky
- Units of trade
- Form and location
- Suppliers and bonded warehouse operators
- Your whisky is held as a bailment
- Bailments in WhiskyInvestDirect
- WhiskyInvestDirect's storage agreement(s) with the bonded warehouse operator(s)
- Ownership records
- How we treat small whisky balances
- Your general right of whisky withdrawal
- Deliveries to your verified address
- How your orders are processed
- New Stock
- Major and Minor Stock Lines
- Bulk Trade Bids [BTBs]
- Stock Line status
- Risk warnings
- In the event of your incapacity
- In the event of your death
- API and trading robots
- Affiliate Sales
- System availability and downtime
- External regulation of WhiskyInvestDirect
- Correction or Errors
- Force Majeure
- Exclusions and Limits of liability
|Bank||Bank means Lloyds Bank PLC|
|BTB||Bulk Trade Bid. A bid arranged by an industrial buyer to acquire a substantial quantity simultaneously from many current owning customers.|
|Customer||Customer is a user of the service of WhiskyInvestDirect, ordinarily you.|
|Insurance||Insurance refers to the insurance arrangement whereby WhiskyInvestDirect buys insurance from commercial insurance providers so as to cover the risk of physical loss, physical damage and/or destruction of the whisky owned by its customers. Customers are not named on the insurance contracts, and are not a party to the insurance arrangements but would ordinarily benefit from it in the event that a physical loss or damage event were to impact the value of customers' whisky held at WhiskyInvestDirect, under which circumstances payments made to WhiskyInvestDirect in respect of a loss would be distributed to affected customers on a basis pro-rata to their holdings of the whisky affected.|
|LPA||Litres of Pure Alcohol - the standard units for measuring a quantity of spirit or whisky. Usually calculated by machinery which measures both volume (V) of fluid (in litres) and alcoholic content (A) expressed as a percentage by volume. LPA = VAOn the WhiskyInvestDirect site, spirit is measured in LPA on an original fillings basis (OFB).|
|OFB||Original Fillings Basis. Because of evaporation the actual quantity of fluid in a barrel slowly diminishes. In the trade the adopted and easiest way to express a quantity unambiguously is to refer to the original barrel filling volume, and its date. Experienced practitioners can rapidly adjust the quantities to what will remain in the barrel.|
|Order||An order is an instruction to buy or sell, placed ordinarily, but not exclusively, into the WhiskyInvestDirect Order Board, via the website at WhiskyInvestDirect.com. An Order is usually (but not always) characterised by the instruction to buy or sell, by an identifier indicating the whisky to be traded, by the quantity of whisky to be traded, and by a limit price which represents a maximum permissible price for a purchase and a minimum permissible price for a sale.|
|RB||Regauged Basis. When the quantity of in-barrel spirit is remeasured for volume and purity the exact quantity of alcohol in the barrel becomes known, and is accurate for a short period, before further evaporation again changes the quantity. This remeasured quantity is referred to as "regauged".|
|Re-vatting||After maturation in separate barrels the quantity of a large number barrels will be reunited in the vat, to provide a large quantity of identical spirit. Note that this is not blending. It is the homogenising of a single batch of original production, so only whiskies of the same source and age will be re-vatted together, and the result will still be a single malt or single grain. Re-vatting ensures that all the whisky from a particular source is identical.|
|Spirit||Spirit means alcohol resulting from distillation. The term is used where 'whisky' would be inaccurate by virtue of the distillate being too young - i.e. less than three years old.|
|Stock Line||A Stock Line is a single fungible pool of whisky within the WhiskyInvestDirect system which has all been produced by the same production method, within the same quarter of the year.|
|Storage||Storage means retention of whisky in oak barrels within a suitable bonded warehouse environment during the process of maturation. Storage is a service for which a customer pays monthly after acquiring whisky.|
|Storage charges||Storage charges cover the cost of storage, and includes a contribution to WhiskyInvestDirect's insurance costs, even though customer is not a direct beneficiary of that insurance.|
|Supplier||Supplier means a producer or wholesaler of whisky from whom WhiskyInvestDirect acquires whisky for maturation.|
|Tea spooning||Adding a small amount of whisky from a distillery into a cask containing the produce of another distillery. This practice prevents purchasers of these casks selling them under the distillery’s name.|
|We||We means WhiskyInvestDirect.|
|Whisky||Technically the term “whisky” is applied to distillate after three years of maturation. Prior to that three year age the distillate is more correctly referred to as spirit. However in these Terms and Conditions, for ease of comprehension, we use the term whisky to apply to all distillates undergoing maturation, either those that are older than three years, or those that are still younger but which will become whisky in due course. Where we use the term spirit we refer explicitly to distillate of less than three years age.|
WhiskyInvestDirect's legal identity
WhiskyInvestDirect is a trademarked service provided by "WhiskyInvestDirect Limited" which is company number 9068458 registered in England and Wales.
In these Terms and Conditions references to WhiskyInvestDirect mean WhiskyInvestDirect Limited wherever the context requires a legal entity.
Deemed acceptance and prevailing versions
You become a new Customer of WhiskyInvestDirect by registering for an account online. In becoming a Customer you are deemed to accept that WhiskyInvestDirect's Terms and Conditions define the entire business relationship between WhiskyInvestDirect Ltd and you.
These are WhiskyInvestDirect Ltd's Terms of Business as of 8th December 2016. Advice of these Terms of Business was posted on 8th November 2016.
By giving thirty days' notice of modifications WhiskyInvestDirect Ltd may from time to time modify its Terms and Conditions. For modified Terms and Conditions to become effective they must be published on the WhiskyInvestDirect website and WhiskyInvestDirect must also send an advice to the email address provided as a contact point by you.
During a thirty day notice period you have the right to terminate the relationship under the previous Terms and Conditions. This can be effected by selling your whisky and withdrawing your money under the previous Terms and Conditions. If you do not terminate the relationship in this way you are deemed to accept the new Terms and Conditions.
New Customers opening accounts within the thirty day notice period accept the Terms and Conditions then in effect and accept that they will be bound by the new Terms and Conditions which come into effect at the end of the stated thirty day notice period.
The purpose of our business relationship
You have chosen to become a WhiskyInvestDirect Customer in order to benefit from WhiskyInvestDirect's terms for trading in and storing cask whisky during the period of its maturation.
You seek to own cask whisky in order to profit from an increase in value which you deem likely over the course of its maturation. You expect to buy it, store it, and sell it on terms which give you a reasonable expectation of profiting from your original purchase, but you accept that there are no guarantees of a profitable outcome.
You accept responsibility for assessing the value of the whisky you buy and sell by reference to standard models of whisky pricing at various stages of its maturation, such as are made available to you on the WhiskyInvestDirect site. You accept and understand that while these standard models give an indication of average price performance of whisky, periodic changes in total production and consumption can affect pricing across the industry through the economics of supply and demand, and that individual whiskies which you may own can similarly be affected in ways not typical of the entire industry.
You expect to enjoy efficient and substantially automated service, and pay low prices, low levels of commission and low levels of custody charges by comparison with alternate mechanisms for buying, holding and selling cask whisky.
You expect to sell in due course to established bottlers and brand-builders, or to other WhiskyInvestDirect users, in both cases via the WhiskyInvestDirect service. You do not anticipate bottling the whisky you buy yourself, and although WhiskyInvestDirect recognises that there is a right for you to do this you accept and understand that the bottling service is designed for and offered on industrial scale, and that the minimum fees for setting up and executing a bottling run make it an inappropriate method of acquiring modest quantities of whisky for your own consumption.
In order to deliver against your expectations WhiskyInvestDirect offers a service designed for high levels of automation across the internet and expects to earn a profit from the commissions and custody fees it charges.
To provide the service WhiskyInvestDirect needs to retain on its computers information about you and you permit WhiskyInvestDirect to do so.
WhiskyInvestDirect undertakes not to disclose data about you to third parties except (i) in order to validate your identity with an identity validation service generally recognised for the purpose, (ii) to communicate with you via a commercial service, which will not be permitted to store or use your data, or (iii) where required by law.
Recording the source of your incoming money
Where supplied by your bank on your incoming payment you permit WhiskyInvestDirect to both record your banking details and to check them against identity documents you submit.
You accept that to open an account you must be over 18 years old and over the legal age to buy alcohol in your jurisdiction. WhiskyInvestDirect reserves the right to sell any whisky and return to source any cash net of commissions, storage and exceptional administration fees (time and materials billed as per our published Tariff) if an account is identified as having been owned or operated by an individual under the age of 18 years.
You undertake to identify yourself no later than 2 weeks after first funding your account, and according to the identity verification procedures required by WhiskyInvestDirect. You authorize WhiskyInvestDirect to make such enquiries as it may feel necessary to satisfy itself about the validity of your identity.
Where you are an existing BullionVault client, and choose to validate your identity by reference to existing BullionVault records, you permit WhiskyInvestDirect to copy and store appropriate data about you supplied from your BullionVault records at your instruction to BullionVault.
You undertake to provide a minimum of one accepted form of photographic identity.
You understand and accept that where an ownership interest is shared you may be required to provide additional photographic identities of the sharing owners, and/or institutional documentation - for example copies of trust deeds, or incorporation documents.
You undertake to provide clear evidence of the ownership and identity of the single bank account from which your WhiskyInvestDirect deposits originate and to which your money will be returned. This evidence, which will usually be visible on the top page of your bank statement, will detail:
- Your bank's country
- Your bank's name
- Its branch name or address
- Its branch identifying code (e.g. transit, sorting or routing code)
- Your bank account name
- Your bank account number
- Your name and address
...and for accounts outside the USA and UK:
- Your bank's SWIFT BIC (Bank Identifier Code)
- Your IBAN (International Bank Account Number)
You accept that your documents should be written in English, or any other language that WhiskyInvestDirect actively supports. Where this is not so you undertake to provide certified translations along with your documents, at your expense.
Setting your linked bank account
By comparing the details you submit with the details submitted by your bank on your funds transfer to WhiskyInvestDirect, we will set your linked bank account, and email you that we have done so. You are responsible for checking the details, and notifying WhiskyInvestDirect immediately if the details are incorrect.
WhiskyInvestDirect will always present to you the current details of your linked bank account at the time you request a funds withdrawal, which you will do via a logged-in session on the WhiskyInvestDirect website. When you accept those bank account details you agree that you are requiring WhiskyInvestDirect to remit the funds you withdraw to your linked bank account. WhiskyInvestDirect will not be responsible for any loss where you have accepted the banking details presented to you and they have turned out to be incorrect.
Modifying your linked bank account
Ordinarily your WhiskyInvestDirect account will be permanently associated with your linked bank account. However your link may be changed.
Your formal request to change your linked bank account will be accepted only via a logged-in session on the WhiskyInvestDirect website.
Where you seek a change to your linked bank account you accept that your new bankers, or an alternative and qualified professional, who can be contacted by WhiskyInvestDirect, will be required by WhiskyInvestDirect to endorse the continuity of your identity by agreeing to send us a standard letter, the text of which we will provide you with - on request - when you contact us.
Where you request a change to your linked bank account, you accept that the new bank account must be held in exactly the same name(s) as the old bank account.
Where you change your name you will re-validate your old linked bank account on your new name. You accept that WhiskyInvestDirect cannot accept a simultaneous change of name and a change of bank account number.
WhiskyInvestDirect undertakes to acknowledge a change to your linked bank account, via email, to your registered email address.
Where WhiskyInvestDirect operates according to these above procedures you accept that it has applied an appropriate degree of diligence and care with regard to such changes. A failure by WhiskyInvestDirect to operate according to these above procedures controlling changes in your linked bank account, and resulting in subsequent loss to you, is the financial responsibility of WhiskyInvestDirect, subject to the provisions of these Terms and Conditions.
You accept that WhiskyInvestDirect is entitled to charge you an administration cost for changing your linked bank account, according to its published Tariff.
Where these procedures cannot for any reason be met but where, for whatever reason, your original linked bank account cannot be used for the return of your money from WhiskyInvestDirect, then WhiskyInvestDirect is entitled to use an appropriate process and/or seek appropriate insurance cover against identity fraud, all at your expense. Under these circumstances WhiskyInvestDirect is also entitled to charge you on a time and materials basis according to the published Tariff.
If you fail to validate your account
You understand and accept that WhiskyInvestDirect will ordinarily refuse to pay monies requested for withdrawal from an un-validated account.
You understand and accept that a persistent failure by you to validate your account, after having received reminders, may incur the penalty charges described in the Tariff.
WhiskyInvestDirect acknowledges that no such penalty charge will be applied where it is clear you are making a genuine effort to validate your account, but are being prevented from doing so by circumstances beyond your reasonable control.
You understand and accept that were you to fail to validate your account in suspicious circumstances then WhiskyInvestDirect would be legally obliged to notify anti-money-laundering authorities, without notifying you.
You hereby indemnify and keep indemnified WhiskyInvestDirect against any and all losses and costs which arise out of your failure to identify yourself and validate your account promptly.
WhiskyInvestDirect maintains contact details for you at an email address and optionally at
- a mobile telephone
- a home telephone
- a home address
You accept a duty to keep your contact details held by WhiskyInvestDirect up to date and accurate, which you can do via the website. WhiskyInvestDirect is entitled to rely on the accuracy of the contact details supplied.
WhiskyInvestDirect accepts an obligation to notify changes to your contact details to your contact email address, and a further obligation to notify changes to your contact email address itself to both your old and new contact email addresses.
You accept that your failure to maintain your contact details correctly may negate some of the protections you seek in WhiskyInvestDirect. You hereby indemnify and keep indemnified WhiskyInvestDirect against losses which arise out of your failure to maintain your contact details correctly.
What details of your activity are publicly visible?
In the interest of transparency and good marketplace practice certain information is made freely available to users:
- You may post limit orders on the WhiskyInvestDirect website and the best prices available combine to define the current trading prices of whisky on WhiskyInvestDirect. The best prices, and their associated order sizes, are published on the site. In this way your orders ordinarily become visible to other users of the system, but not in a way which is attributable to you.
- Bonded warehouse stock lists are produced by the bonded warehouse manager and reconciled to the holdings of entitled WhiskyInvestDirect holders of whisky at that bonded warehouse. The reconciliation is published, but only identifies you by a nickname, which is a private and unique label typically only recognized by you.
- Bank statements of segregated accounts are treated in the same way. Together these reconciliations enable you to see that your property is an identified part of a reconciled pool of all users' property, held at arm's length from WhiskyInvestDirect. In this way your cash and whisky balances ordinarily become visible to other users of the system, but not in a way which is attributable to you.
- WhiskyInvestDirect may report your activity to duly authorized government agencies with a formal right either to monitor whisky trading activity or investigate activity which arouses suspicion of money laundering or tax fraud.
Security & privacy
Your personal and financial data held at WhiskyInvestDirect are protected from unauthorized access by a password and other access data which you have a duty to keep secret.
You accept that in order to provide reliable customer access WhiskyInvestDirect must have a robust procedure for re-issuing forgotten passwords. You accept the details of this password reset process.
You accept that the re-issue of a password entitles WhiskyInvestDirect to suspend your right to immediate withdrawal for a period not exceeding six weeks.
Communication between us
Contact WhiskyInvestDirect through the following channels:
Landmark House (12th Floor)
London W6 9DP
Opening Hours: 9am to 5:30pm (UK), Mon to Fri
Telephone: +44 (0)208-6000-135
You accept that during a logged-in session on WhiskyInvestDirect all data which pass between you and WhiskyInvestDirect, in either direction, are passed across the internet using the https protocol, which incorporates a level of security widely accepted as offering extremely reliable privacy and accuracy in data transmission.
You do not hold WhiskyInvestDirect responsible for failures of the https system itself - where used appropriately by WhiskyInvestDirect - to maintain privacy and accuracy of data transmission.
You accept that WhiskyInvestDirect will send off-line information to you by email, including - but not limited to - acknowledgements of changes to your key account settings, login notifications, order confirmations, execution advices, contracts, monthly statements, and changes to Terms and Conditions. You may not unsubscribe from emails relating to your account and its administration. WhiskyInvestDirect may also send you general information regarding updates to its products and services. You may unsubscribe from these general updates by following the instructions included in such emails. The WhiskyInvestDirect system records all outward email transmissions.
It is your responsibility to ensure that you have a reliable email service provider that allows administrative messages from WhiskyInvestDirect to pass through to you and properly displays them to you in a timely fashion.
WhiskyInvestDirect is entitled to rely on your receipt and acceptance of the content of an email if within 3 calendar days of the transmission no response from you has been received by WhiskyInvestDirect.
In the event that you communicate an issue with content of a WhiskyInvestDirect email after this date any resolution will be considered in the context of the delay, which you accept may have a bearing on the value of any resolution proposed either by WhiskyInvestDirect management, or through complaints arbitration.
You understand and accept that email is not encrypted and that it operates with a similar degree of privacy as physical post, in that a network engineer, like a postman, has the ability to see email and attachments if he chooses to open your mail.
You accept and understand that easily comprehended open format feedback to a known and used address is appropriate for reporting your completed business to you, off-line, and after the event.
WhiskyInvestDirect may use voice or SMS on mobile phones as a means of contacting you rapidly.
WhiskyInvestDirect is entitled to rely on your receipt and acceptance of the content of SMS communications if within five minutes of the transmission no rejection of the information has been received by WhiskyInvestDirect. WhiskyInvestDirect is entitled to rely in this regard on the accuracy of its own transmission records when backed up by the independent confirmation of its telecommunications provider's records.
WhiskyInvestDirect is responsible for initiating SMS messages correctly according to the settings on your account, and ensuring that they are received by its SMS technology provider. But WhiskyInvestDirect is not responsible for losses you may incur as a result of an SMS message not being delivered in circumstances beyond WhiskyInvestDirect's direct control. This might occur if your mobile phone was switched off, or was operating in a zone or on a service technology which was not reachable via the SMS technology providers employed by WhiskyInvestDirect.
If your account diminishes in size below a level at which it is reasonable to communicate via SMS then WhiskyInvestDirect reserves the right to suspend SMS outputs.
WhiskyInvestDirect may send information to you by mail to your address on WhiskyInvestDirect records. WhiskyInvestDirect is entitled to rely on your receipt and acceptance of the content of posted communications if within 7 calendar days of the communication being sent no rejection of the information by you has been received by WhiskyInvestDirect.
If your account diminishes in size below a level at which it is reasonable to communicate via mail then WhiskyInvestDirect reserves the right to suspend posted outputs.
Special measures for your extra protection
You are entitled to rely on WhiskyInvestDirect sending you emails in confirmation of any changes to the contact details, Burglar Alarm and the linked bank account settings on your WhiskyInvestDirect account.
A failure by WhiskyInvestDirect in these obligations, and resulting in loss to you, is the financial responsibility of WhiskyInvestDirect, subject to the provisions of these Terms and Conditions.
The Burglar Alarm
WhiskyInvestDirect implements its Burglar Alarm alerting service through mobile phone technology.
Where enabled, and when the value on your account exceeds a certain threshold, WhiskyInvestDirect undertakes to initiate text messages to your listed mobile/cell phone, via SMS technology, at account log-in, at the point of order entry, when a withdrawal is requested or when a password reset is initiated, according to the settings on your WhiskyInvestDirect account.
WhiskyInvestDirect's duty is to raise the Burglar Alarm message appropriately and to maintain ongoing tests that validate that the outward routing of messages is occurring.
However WhiskyInvestDirect does not have the duty to ensure delivery to your mobile phone. You accept that it is not practicable for text messaging to be used with a 100% reliability, and you recognize that - as with household Burglar Alarms - there is a risk that the alarm fires, but is not heard by you.
Nevertheless you accept and acknowledge that the implementation of the Burglar Alarm system does act as a powerful disincentive to illicit access to your WhiskyInvestDirect account, as it empowers you to report to WhiskyInvestDirect such access even while it is occurring, thereby enabling WhiskyInvestDirect to investigate and seek the assistance of the authorities in detecting crime and arresting offenders.
You accept a duty to inform WhiskyInvestDirect in the event that the operation of the Burglar Alarm system suggests unauthorized access to your account.
When the Burglar Alarm fires you accept that WhiskyInvestDirect may debit your WhiskyInvestDirect account according to its published Tariff provided that the debit is approximately the cost of transmitting a single SMS message to your mobile phone device.
You accept that an unwillingness on your part to set the Burglar Alarm on your WhiskyInvestDirect account might diminish the level of compensation which - in the unlikely event of a loss - might be awarded to you from the WhiskyInvestDirect compensation fund or by any arbitrator independent of WhiskyInvestDirect.
A failure by WhiskyInvestDirect in these obligations, and resulting in loss to you, is the financial responsibility of WhiskyInvestDirect, subject to the provisions of these Terms and Conditions.
Care of your money
You accept the bank(s) WhiskyInvestDirect has selected to look after your cash balances.
You accept that in selecting the bank to look after your cash balance WhiskyInvestDirect has taken due care in ensuring that the bank charged with looking after your money is of adequate standing.
WhiskyInvestDirect accepts a duty to place funds received from you directly into segregated client accounts maintained at the bank for the express purpose of pooling un-invested WhiskyInvestDirect customer money.
WhiskyInvestDirect confirms that the bank has acknowledged and accepted in writing that the money on WhiskyInvestDirect's Client Accounts is held by WhiskyInvestDirect as trustee. The bank has further acknowledged and accepted that it is not entitled to combine these accounts, or to exercise any right of set off or counterclaim against money in this account in respect of any money owed to the bank on any other WhiskyInvestDirect account.
On your behalf WhiskyInvestDirect is permitted to manage your money on the segregated client account exclusively for the following purposes:-
- It may be used to buy whisky from another WhiskyInvestDirect account holder according to your order placed on the WhiskyInvestDirect website. In this case your money does not move from the bank account but the entitlement to it is transferred within WhiskyInvestDirect's records to the selling holder of the whisky, while simultaneously the outright ownership of the whisky is transferred to you.
- It may be used to pay withdrawals of your money back to you - but never beyond the extent to which you have available funds.
- It may be used to pay WhiskyInvestDirect in respect of service and other charges earned according to the prevailing Terms and Conditions.
- Subject to the segregation of client property being maintained it may be transferred between accounts held at the different banks.
WhiskyInvestDirect undertakes to maintain at all times within the segregated client account sufficient funds to pay back the gross credit balances of all WhiskyInvestDirect customers, and to have that money available for return at short notice, if required.
WhiskyInvestDirect undertakes to operate robust internal controls such that payments of customer money at withdrawal get authorized only when at least 2 senior members of staff of WhiskyInvestDirect have inspected and approved the payment instructions.
The client account statement from the bank shall be fully reconciled to WhiskyInvestDirect's own records every London banking day, and so far as is practicable the reconciliation shall be published at least monthly on the WhiskyInvestDirect website, and shall be accessible via the AUDIT link on WhiskyInvestDirect's front page.
You acknowledge that the bank is entitled to act in good faith according to instructions given by WhiskyInvestDirect's members of staff.
You accept and acknowledge that interest is not payable to you on any uninvested cash balance held in your WhiskyInvestDirect account.
Acceptable ways of making deposits
You agree to fund your WhiskyInvestDirect account from your linked bank account.
Your money deposits are acceptable only through recognized banking channels which may change from time to time according to the details on WhiskyInvestDirect's website.
Whether depositing through a physical paper transaction, or by electronic transfer, you understand that your bank will be expected to identify standard banking data on each incoming payment to WhiskyInvestDirect, including (i) your bank name (ii) your branch identifying code, (iii) your account name (iv) your bank account number and (v) your WhiskyInvestDirect user name (as the payment reference).
You accept that a failure by your bank to identify the source of your money may delay your WhiskyInvestDirect account being credited. Then WhiskyInvestDirect will place your money safely in suspense, pending your contact with us, at which time your advice of the correct remittance details will cause the money to be placed directly into your WhiskyInvestDirect account where it will be capable of being used to buy whisky immediately.
You accept that where you have provided us with necessary details independently of the actual bank transfer on which your money was received WhiskyInvestDirect is entitled to suspend your right to immediate withdrawal for a period not exceeding 60 days.
Your deposit and your linked bank account
You agree that you will not merge funds belonging to different parties within a single WhiskyInvestDirect account.
You agree that you will not deposit in any way which obscures the source of your funds. For example, you will not deposit cash, bankers' drafts or make anonymous/unreferenced credits at a counter. All your deposits will come from a clearly identifiable source.
You accept that where WhiskyInvestDirect is not satisfied about the source of funds it may return the funds, where possible, via the procedures of the banking system, to the source. Whenever this occurs you accept that WhiskyInvestDirect is entitled to apply a fee according to the published Tariff for a return of deposits from a bank account which has not been validated as yours.
Nevertheless WhiskyInvestDirect may exercise its discretion to allow the funds to be applied to your WhiskyInvestDirect account, provided it is a reasonable belief, supported by evidence you provide, that the deposit has come from you. WhiskyInvestDirect may also seek additional information concerning the deposit's source, which you agree to provide.
You hereby indemnify and keep indemnified WhiskyInvestDirect against any and all losses which arise out of your failure to fund your WhiskyInvestDirect account directly and identifiably from your linked bank account.
Under some jurisdictions there is a right to repudiation by your bank of a fraudulent debit to your bank account. Instead of accepting the loss itself your bank transmits the cost, in this case to WhiskyInvestDirect, exercising a unilateral right to debit WhiskyInvestDirect's bank accounts.
Accordingly if you have deposited money in WhiskyInvestDirect by a method on which this repudiation right applies, you will not be able to withdraw it within the period of possible repudiation. For SWIFT or UK bank transfers, this period is usually only a single working day. For some methods (e.g. a physical cheque sent to our offices), it may be longer.
If you wish to withdraw funds within their period of possible repudiation, we will require formal notice from your bankers that your earlier deposit will not be repudiated. You will therefore be required to provide details to us of a named staff member at your bank who can provide this notice. Otherwise you accept that the repudiation delay will expire before you will be allowed to withdraw.
You accept that WhiskyInvestDirect is entitled to charge according to the published Tariff for contacting your bank in these circumstances.
Where we are unable to identify the WhiskyInvestDirect account to be credited, and it is not possible to return the funds to their source, client funds remaining in our suspense account for a period of 5 years or more may - at WhiskyInvestDirect's discretion - be accumulated and irrevocably contributed in a single payment to a recognized children's charity, on customers' joint behalf.
Withdrawing your money
Subject to your previous and correct verification of your identity, and to the irrevocable clearance of your deposited funds, you may make withdrawals of your available money balance to your linked bank account.
You undertake to re-check the details of your linked bank account presented to you as you make your withdrawal request during a logged-in session, and you undertake to confirm your withdrawal only if you are satisfied with the linked bank details presented to you. Provided that it is satisfied with the security of your withdrawal request WhiskyInvestDirect will remit funds to your linked bank account via SWIFT (international), CHAPS, BACS or other banking system generally considered appropriate to the payment.
WhiskyInvestDirect is entitled to subtract bank transfer costs from the sum to be remitted.
If your withdrawn funds are to be received outside the UK and your bank is not itself a SWIFT participant you accept that a correspondent bank - being a bank in your country which receives money via the international SWIFT transfer system, and which routes it to your bank - may deduct from the money sent a fee consistent with normal international banking practice.
You accept that WhiskyInvestDirect may need to perform additional security checks and there may be some delay prior to sending you your money. Any delay will depend both on the recent operation of your WhiskyInvestDirect account and on other circumstances of the withdrawal. Where your WhiskyInvestDirect account was promptly validated, and where your linked bank account has been long-standing and stable, you have the right to expect your money to leave WhiskyInvestDirect by the end of the business day following a request for payment received before midnight GMT.
How we treat small cash balances
Because of the cost of bank to bank transfers, WhiskyInvestDirect will not pay residual WhiskyInvestDirect account balances of less than £60 or equivalent.
Ordinarily sums below this threshold will be retained for account re-activation except that after an account has been empty of whisky and inactive for 2 years or more and remained beneath a currency equivalent balance of £20, this small balance may - at WhiskyInvestDirect's discretion - be accumulated and irrevocably contributed in a single payment to a recognized children's charity, on customers' joint behalf. WhiskyInvestDirect may then close the account.
Where a small balance arises from a WhiskyInvestDirect promotion, and the account has neither been funded nor had the account holder's identity verified according to WhiskyInvestDirect's identity verification procedure, then after any period of inactivity exceeding 3 months the balance may be returned to WhiskyInvestDirect's own resources as an unclaimed promotion.
WhiskyInvestDirect reserves the right to claim back promotional balances where it reasonably believes the account has been set up to abuse the promotion.
If you retain a whisky balance but do not have a sufficient available money balance to settle your charges accrued, then WhiskyInvestDirect has the right to redeem its entitlement by a sale of your whisky, but only to the extent needed, and to the nearest litre of whisky, as estimated at the point of order placement. For this purpose whisky will ordinarily be sold with your smallest holding by value being selected first.
If you withdraw an amount while you have unsettled charges, WhiskyInvestDirect is entitled to deduct from the amount withdrawn the amount of the outstanding charges.
Where unsettled charges exceed the value of holdings within an account then subject to providing you with 7 days' notice WhiskyInvestDirect has the right to sell any remaining whisky and close the account.
Where you remit sufficient funds in the intervening period WhiskyInvestDirect will not sell any of your Whisky.
Account suspension and closure
Where WhiskyInvestDirect reasonably believes your security or the security of WhiskyInvestDirect is at risk, it reserves the right to suspend or close any account without prior warning, but never to the extent that it would amount to an expropriation of your property.
Confidentiality, money laundering, and the linked bank account
WhiskyInvestDirect is designed to be a very secure home for legally acquired wealth. It is not a useful or secure resource for money launderers.
For reasons relating to both security and anti-money-laundering legislation WhiskyInvestDirect requires deposits to come from a single bank account, or, after prior approval by WhiskyInvestDirect when the account was first set up, from a second bank account listed under identical name(s) and address as the linked bank account.
For reasons relating both to security and anti-money-laundering legislation WhiskyInvestDirect enforces the exit of funds to the linked bank account.
There is no capability for transferring funds between accounts at WhiskyInvestDirect even where commonly owned.
WhiskyInvestDirect recognises your right to confidentiality where your identity has been validated. However where for whatever reason WhiskyInvestDirect becomes suspicious of an attempt at money laundering WhiskyInvestDirect actively assists the appropriate authorities in their efforts to detect it. WhiskyInvestDirect also keeps comprehensive records of cash and whisky dealing activity in order to assist the authorities in this regard.
Care of your whisky
Units of trade
Whisky barrels are filled with distilled spirit diluted with water in the manner appropriate to whisky maturation. The quantity and purity of spirit is measured as it is put into a barrel, and permits the calculation and recording of Litres of Pure Alcohol [LPA] the barrel contains at the time it is filled - which is the measured volume of fluid (including the water) multiplied by the purity.
Thereafter there is some loss of liquid quantity - due primarily to evaporation from the cask which is necessary to the process of maturation. As a result the overall volume of liquid in the barrel reduces. Both water and spirit is lost to evaporation.
An approximate measure of the rate of evaporation is as follows:-
- In the first year, as the liquid both seeps into the fabric of the barrel, and evaporates through it, the rate of spirit loss is approximately 3%.
- In the second and subsequent years the rate of spirit loss is approximately 2%.
This evaporation gives rise to two ways of measuring whisky volumes within the industry:-
- Original Fillings Basis [OFB] - which refers to the LPA first put into the barrel.
- Regauged Basis [RB] - which means the remaining LPA in the barrel after re-measuring at a known date sometime after the original filling.
The industry generally trades using LPA on OFB. Practitioners know to make the numerical adjustment to actual litres, and expect that when a barrel is emptied evaporation will mean that there is less volume of both actual liquid, and of LPA, than is recorded on the OFB. The price paid on OFB automatically makes allowance for the loss of volume - i.e. the value per actual litre (on an RB basis) is more than the value of an OFB litre.
Form and location
You are entitled to expect that WhiskyInvestDirect acquires whisky of sufficient quality that it will be suitable for the Scotch whisky blending industry after a suitable period of maturation.
You are entitled to expect that the barrels in which the whisky is stored for maturation are of an acceptable quality for the purpose of maturation.
You accept that in a craft such as whisky manufacture there will be some variation from distiller to distiller, and also from barrel to barrel. You also accept and understand that the market - in which blenders buy whiskies appropriate to their needs - at times ascribes different values to different whiskies.
You understand that you will own a quantity of whisky of a specific age, and source, but not in any specific barrel.
You understand and accept that the whisky you trade, own and later sell will be accounted in line with industry practices, using Litres of Pure Alcohol [LPA] on the Original Fillings Basis [OFB] unless otherwise stated.
You understand that this means you will generally own fewer physical litres of alcohol than is described on your account, and that the shortfall increases over time. You acknowledge this reduced volume is acceptable to you when attributable to normal evaporation expected during the process of whisky maturation.
You understand that you will not buy or own barrels. The barrels in which your whisky is stored will be the property of WhiskyInvestDirect or of a supplier of WhiskyInvestDirect.
You are entitled to have your whisky stored in a barrel, but the price you pay upon purchasing it does not include the cost of that barrel's storage, which is charged separately to you, by WhiskyInvestDirect, within its storage charges. WhiskyInvestDirect will be in breach of its duties to you if - aside from short periods during the normal process of re-vatting - your whisky is not being stored in barrels such that it can adequately mature.
A contribution to the cost of insurance is also paid for through storage charges, but customers are not a party to the insurance arrangement agreed exclusively between WhiskyInvestDirect and its insurers, who are the parties involved.
Suppliers and bonded warehouse operators
WhiskyInvestDirect will enter into separate agreements with different suppliers.
WhiskyInvestDirect will buy whisky from a supplier. In most cases the supplier will also operate as a bonded warehouse operator itself.
A bonded warehouse operator is a professional organization of good standing which is in the business of managing the receipt, storage, maturation and re-delivery of whisky according to the practices of the whisky market.
WhiskyInvestDirect's relationship will be with a supplier, and the supplier will engage a bonded warehouse operator if it is not using its own facilities.
Whether a supplier uses its own facilities for storage or those of a third part bonded warehouse operator you are entitled to rely on the storage of your whisky being performed with appropriate care by an approved bonded warehouse operator.
While you acknowledge that there will be differences in how your whisky is stored, WhiskyInvestDirect will be in breach of this agreement with you if the standards of care in the storage of your whisky drop below those generally accepted as reasonable by the whisky industry.
In the agreements which WhiskyInvestDirect executes with suppliers the provision of bonded warehouse services will be subject in all cases to a declaration of the supplier's duty of care.
Whisky is from time to time moved by the bonded warehouse operator responsible for storage. This is done for commercial and risk reduction reasons, frequently to prevent all of a particular Whisky from being subject to single-site risks. You permit WhiskyInvestDirect to permit those who are organising the storage of your whisky to arrange for its re-distribution at any number of bonded warehouses, provided that supplier accepts the ultimate duty of care for the provision of appropriate storage, and provided that any such re-distribution is not executed knowingly to the disadvantage of customers of WhiskyInvestDirect.
Each bonded warehouse operator has warranted to WhiskyInvestDirect under contract that whisky stored by it is stored with sufficient levels of care to retain the quality and value of the whisky ordinarily expected by the whisky industry.
Your whisky is held as a bailment
Your whisky is held in bonded warehouses controlled by each bonded warehouse operator pursuant to a storage agreement [the "Storage Agreement"] executed between WhiskyInvestDirect and each supplier.
In each storage agreement, the supplier acknowledges that your whisky is the subject of a bailment, and that any third party bonded warehouse operator used to store the whisky has acknowledged the bailment nature of the storage service.
WhiskyInvestDirect undertakes to pay - either directly or indirectly - appropriate fees to the supplier, on your behalf, to cover the costs of storage of your whisky, and thereby evidence the bailment nature of the storage service provided by the supplier or its third party bonded warehouse operator.
WhiskyInvestDirect confirms that your whisky safekeeping is structured as a bailment for the purpose of arranging the strongest and simplest legal protection for your whisky within a professional bonded warehouse, and for no other reason.
Bailments in WhiskyInvestDirect
You agree that when your purchase of whisky is transacted within the WhiskyInvestDirect system, the whisky purchased is to be delivered by the seller within the bonded warehouse operator's premises, so as to become a bailment of your property, according to your instructions submitted exclusively to WhiskyInvestDirect.
From that point forward the bonded warehouse operator - via the supplier - has agreed to act as physical custodian of your whisky until the bailment is terminated at your instruction, again submitted exclusively via WhiskyInvestDirect.
You agree that when your sale of whisky is transacted within the WhiskyInvestDirect system, the whisky sold is to be delivered to the buyer, within the bonded warehouse operator's premises, on your behalf, terminating your bailment to the extent sold, as per your instructions submitted exclusively to WhiskyInvestDirect.
You agree that the record keeping of the creation and termination of the bailment is to be performed by WhiskyInvestDirect according to these Terms and Conditions, while the whisky rests throughout with the bonded warehouse operator.
You acknowledge that your ownership does not necessarily relate to a specific barrel but to a specific quantity of whisky. WhiskyInvestDirect acknowledges that the whisky you own exists, is stored in a bonded warehouse, is yours, and that being physical it is ultimately capable of being sub-divided into measurable amounts of fluid which you could take into your possession, subject to paying the fees according to the Tariff.
WhiskyInvestDirect's storage agreement(s) with the bonded warehouse operator(s)
You authorize WhiskyInvestDirect to act as your agent for arranging safe custody of your whisky with or through the relevant supplier. WhiskyInvestDirect confirms to you that in each supplier's contract it is acknowledged by the supplier that the whisky stored under the agreement is allocated on a barrel-by-barrel basis, is the property of WhiskyInvestDirect Clients, and is segregated from supplier's own stock at all times.
WhiskyInvestDirect confirms to you that in each supplier contract the supplier accepts responsibility for the whisky from the time of your purchase until the time of your sale or withdrawal according to instructions received through WhiskyInvestDirect.
WhiskyInvestDirect confirms to you that a minimum of 12 months' notice from a supplier is required to terminate the provision of storage services.
WhiskyInvestDirect undertakes that your whisky will not be subject to any kind of lending, collateral, hypothecation, or derivative transaction of any type and will remain your property in the safekeeping of the supplier, or their third party bonded warehouse operator, until sold or withdrawn according to your instructions received via WhiskyInvestDirect.
WhiskyInvestDirect enters into insurance contracts to which you are not a party with the intention of itself receiving payment of claims, from the insurer, in the event of there being certain categories of physical loss, physical damage or destruction of your whisky while stored in the care of a supplier or its third party bonded warehouse operator.
WhiskyInvestDirect accepts liability to you to the extent to which those risks are covered by its own insurance.
WhiskyInvestDirect undertakes to provide documentary evidence of insurance, and provide access to this by publishing a facsimile of the insurance documentation on its website.
The liability which WhiskyInvestDirect accepts is limited to those risks which are covered under its documented insurance. You accept an obligation to examine the evidence of insurance, and satisfy yourself that such risks as are excluded specifically, or otherwise not covered, are risks which you accept. You agree you will not hold WhiskyInvestDirect liable for losses arising from those risks.
WhiskyInvestDirect limits the extent of its liability in each and every case to the reasonably assessed loss you experience.
WhiskyInvestDirect maintains the master copy of ownership records. WhiskyInvestDirect agrees with you that in so far as they relate to you these records shall only be modified upon the execution of your valid instructions, made according to these Terms and Conditions.
On a monthly basis, or as near to monthly as reasonably practicable, WhiskyInvestDirect shall publish on its website reconciled and aliased customer-by-customer records of ownership of all whisky held within the system, and all the money held in the segregated client bank accounts.
WhiskyInvestDirect ensures that at least two widely separated data storage sites receive duplicates of the full WhiskyInvestDirect database on a daily basis.
How we treat small whisky balances
Where a small whisky balance arises from a WhiskyInvestDirect promotion, and the account has neither been funded nor had the account holder's identity verified according to WhiskyInvestDirect's verification procedure, then after any period of inactivity exceeding 3 months the balance may be returned at WhiskyInvestDirect's discretion to WhiskyInvestDirect's own resources, as an unclaimed promotion.
WhiskyInvestDirect reserves the right to claim back promotional balances where it is believed that the account has been set up to abuse the promotion. WhiskyInvestDirect reserves the right to stop a promotion at any time and without prior warning.
Your general right of whisky withdrawal
The terms for whisky withdrawals are the same for both Trade and Non-Trade users except where noted below. A Trade user is defined as a person or entity authorised under HMRC’s Warehouse-keepers and Owners of Warehoused Goods Regulations [WOWGR].
Applicable to all users:
To make physical withdrawals you will be required to provide reliable forms of identification and address verification.
You understand that you cannot claim withdrawal directly from a bonded warehouse operator. Your right to withdrawal is to be effected through WhiskyInvestDirect who have the means and responsibility for identifying you reliably.
Upon withdrawing whisky you accept that you may lose anonymity where these transactions are monitored by appropriate authorities.
If you withdraw a complete stock line, as originally purchased by WhiskyInvestDirect from the distiller, and on removal ex bond the evaporation loss is discovered to be greater than 2% loss per year plus 3% loss on filling, the original distiller will use reasonable endeavours to make good any difference identified.
The following terms only apply to Non-Trade users:
You have a right of withdrawal of your whisky from WhiskyInvestDirect, but you acknowledge WhiskyInvestDirect is not designed primarily as a service for those who wish to take personal physical possession of whisky.
Your wish to withdraw whisky will invoke duty, VAT, bottling and delivery charges according to the published Tariff, which in so far as it relates to government taxes and duties may be subject to sudden changes which are not immediately included. You will nevertheless be liable for those government sourced changes even where they are not on the Tariff.
To minimise cost and disruption to the bonded warehouse operator, bottling will take place not less frequently than 3 times a calendar year (at approximate 4-month intervals), if requested. 70cl bottles will be delivered as full crates of 12, plus — where appropriate and possible — odd further bottles. Amounts insufficient to fill a bottle will be lost to you. Where spirit rather than whisky is withdrawn the bottles will be appropriately labelled accordingly. Delivery is only undertaken to physical addresses within the United Kingdom.
WhiskyInvestDirect will exercise authority over bottle labelling and packaging and will abide by guidelines set by the Scotch Whisky Association.
Upon withdrawing whisky you accept that you will become liable to taxes which you would otherwise not become liable to, and you permit WhiskyInvestDirect to collect some or all of this money from you in its entirety prior to executing your instruction.
The following terms only apply to Trade users:
You undertake not to bottle any whisky bought on WhiskyInvestDirect using any proprietary trademark or distillery name you do not have rights to on any packaging, label or advertising materials, unless permission has been granted by the trademark owner or original distiller prior to bottling. You shall use your reasonable endeavors to ensure that any subsequent owner of the whisky also adheres to these undertakings.
You accept that WhiskyInvestDirect may 'teaspoon' any whisky that is withdrawn for bottling by any non-Scotch Whisky Association member.
Deliveries to your verified address
You accept delays which may arise as a result of action of government agencies.
Where you have requested a WhiskyInvestDirect delivery to your address you accept that the acts or omissions of any person at that address are fairly deemed by WhiskyInvestDirect to be acts or omissions by you.
You accept an obligation to inspect your shipment(s) or package(s) prior to signing for receipt.
You accept an obligation to sign for receipt where a delivery appears to be in good order.
You acknowledge that a signature applied by a package recipient at your address evidences a receipt of a package by you in appropriate condition.
You agree that, excluding your rightful refusal to sign for receipt of the package, any returns to WhiskyInvestDirect for whatever reason shall be at your expense.
How your orders are processed
You acknowledge your competence to trade having read and understood relevant aspects of the operation of the WhiskyInvestDirect system from the online help system accessed from https://www.whiskyinvestdirect.com/help/getting-started-steps.html
You understand that during a logged in session you may enter orders to buy and sell whisky on the WhiskyInvestDirect Order Board, at quantities and prices under your control, but only when having sufficient resources already at WhiskyInvestDirect to effect immediate settlement.
You agree that your orders are to be submitted to WhiskyInvestDirect's servers by yourself via the internet.
WhiskyInvestDirect will ordinarily accept your orders to buy whisky in any Stock Line offered, provided you have sufficient available funds to settle the entire purchase.
WhiskyInvestDirect will ordinarily accept your orders to sell whisky from a given Stock Line, provided the quantity specified is currently stored and available on your behalf in the Stock Line specified.
WhiskyInvestDirect accepts your orders within 10% above and below prices broadly consistent with current market prices.
If your order does not comply with the terms of the order type, or one or more of the above conditions are not met your order will be rejected.
Your Order Board orders on WhiskyInvestDirect are always limited as to price. Purchase limits place a maximum buying price on your purchase orders. Sale limits place a minimum selling price on your selling orders.
Your orders are also limited as to quantity of whisky (measured in LPA on an original fillings basis).
On receipt of your order the WhiskyInvestDirect system automatically attempts to match the order with another customer's prior and opposing order denominated in the same Stock Line, and subject to both customers' limits. The system will trade at the most attractive prices for your new order, achieving lowest possible price within the limit for your purchases, and highest possible price above the limit for your sales.
Any pre-existing order posted on the Order Board against which a new order is matched will achieve exactly its limit price.
To the extent that an order can be executed against pre-existing limit orders posted by other WhiskyInvestDirect users the order is executed immediately, and to as great an extent as possible (i.e. the smaller quantity of the two orders) before any other order received subsequently is processed. To the extent that it cannot be executed it may be itself posted as a limit order on the WhiskyInvestDirect Order Board until it expires through age, cancellation or otherwise.
Your order ranks behind all valid limits past or future which offer a more attractive price. It ranks ahead of all valid orders past or future which offer a less attractive price. It ranks behind all valid orders at the same price, received by WhiskyInvestDirect before it, and ahead of all valid orders at the same price received by WhiskyInvestDirect after it.
You have the right at any time to transmit a request to remove an unexecuted element of any open order you placed on the Order Board. Upon receipt WhiskyInvestDirect must respond by removing your order such that it will not match with any subsequently received order.
You understand and accept that where another user has entered an opposing and matchable order instruction, which arrived at WhiskyInvestDirect before your request for removal, then the match will occur, and to the extent that the match occurred your order will have matched and will not be capable of removal, although any remaining open element of the order will be removed.
WhiskyInvestDirect may at its discretion remove from the Order Board your unexecuted purchase and sale orders where they are both (i) older than one week and (ii) where they are limited at prices which for sales exceed 110% of the prevailing price of whisky, or which for purchases are less than 90% of the prevailing price of whisky.
Where WhiskyInvestDirect removes your orders from the Order Board it accepts an obligation to send an email to your registered email address.
Dealing Advice and Contract
WhiskyInvestDirect will acknowledge executed orders and parts thereof to you via email shortly after each execution occurs.
The completion of an order - either through deal executions or order cancellation when only part executed - will result in WhiskyInvestDirect sending you, via email, a formal contract after settlement in respect of the complete amounts traded as a result of the original order.
Order Board trades
You authorise WhiskyInvestDirect to accept your Order Board order as an instruction to settle immediately in the event that your order executes, whether in whole or in part. WhiskyInvestDirect accepts full responsibility for the ability of executed orders to settle. It stands as guarantor behind any purchase that the seller is able to deliver whisky to the purchaser in the quantity purchased. It stands as guarantor behind any sale that the purchaser is able to pay currency to the seller for the consideration of the sale.
Settlement of a WhiskyInvestDirect Order Board transaction happens instantaneously at the point of trade.
The inward delivery of whisky for a buying customer is always matched exactly with a simultaneous but opposite outward delivery of whisky for a selling customer. No material changes arise at the bonded warehouse as a result of instantaneous settlement of your whisky trade.
Consequence of settlement
Upon settlement a buyer receives and becomes the owner of whisky and a seller is credited with money held in trust, net of trading expenses. Similarly a buyer is debited with money previously held in trust, net of expenses, and a seller makes delivery of whisky.
The delivery of whisky in settlement is effected by book entry within the WhiskyInvestDirect system. Your resulting whisky custody account entry represents outright ownership of whisky already held in the bonded warehouse at the time of the transaction and sold to you by the previous owner.
The payment of money is effected by book entry within the WhiskyInvestDirect system. Your resulting WhiskyInvestDirect money balance represents your currency assets of segregated Client money held at the bank in trust for WhiskyInvestDirect clients. As beneficial owner of this money you can immediately request its withdrawal to your linked bank account, which request will ordinarily be processed, after appropriate checks, before the end of the following business day.
WhiskyInvestDirect guarantees that the settlement of funds occurs simultaneously with the delivery of whisky.
Your settled balance of whisky is held for you in custody by the bonded warehouse operator. Your settled balance of cash is held for you in trust by the bank.
You can see your new custody whisky and trust money balances on the WhiskyInvestDirect system immediately after settlement occurs.
Each month WhiskyInvestDirect undertakes, so far as is practicable, to publish online a full customer-by-customer reconciliation of whisky and money to the underlying stock list from the bonded warehouse operator and statement from the bank, in both cases as at the close of business on the previous business day.
WhiskyInvestDirect accepts a responsibility to organise the different types of whisky available on WhiskyInvestDirect into Fungible Products.
A Fungible Product is a quantity of the same type of whisky for which any one LPA is considered exactly equivalent to any other, and deliverable in settlement of a trade in that whisky.
To be included in a single Fungible Product the whisky must all have been distilled at the same distillery by the same process (Malt or Grain) and within the same quarter of the year, and will be stored in the same type of barrel, which will normally be [First Fill/Refill] [Bourbon (barrel or hogshead)/Sherry] or mixed. Whisky in refill bourbon wood remains a Fungible Product even if stored in a mix of barrels and hogsheads — the majority cask type will be used to describe the line.
In a mixed barrel Stock Line new purchases will not be permitted to join a Fungible Product if — in the opinion of WhiskyInvestDirect — it would materially reduce the average quality of the barrels already forming the Stock Line. Where such a situation occurs the new supply will form a distinct and separate Stock Line.
A trade of any whisky on WhiskyInvestDirect can always be settled by delivery into the ownership of the buyer the appropriate amount of LPA of its Fungible Product.
Random barrel allocation
Within a Fungible Product the different individual barrels being used to store and mature that type of whisky become irrelevant.
In operational terms, any allocation of a barrel for a particular purpose or Customer - for example withdrawal, or re-vatting - will require a transparently random process to select the individual barrel(s) from within a single location and WhiskyInvestDirect is responsible for implementing the random process in a transparent and random way.
WhiskyInvestDirect is responsible for ensuring that no benefit accrues to any party, including itself, arising from public or private knowledge of individual barrel characteristics within a Fungible Product.
New Stock is stock which WhiskyInvestDirect acquired from a producer or wholesaler, and which has been acquired, and become available to customers on the WhiskyInvestDirect system, within the previous two months.
Whether on the order board or otherwise WhiskyInvestDirect may draw a customer's attention to the availability of New Stock provided it is being offered for sale, by WhiskyInvestDirect, within 2% of its acquisition cost (before trading expenses). In doing so WhiskyInvestDirect is advertising the wholesale basis of the price at which a customer is able to acquire the whisky.
WhiskyInvestDirect will be in breach of its own Terms and Conditions if the offer price for which it advertises as a price for 'New Stock' exceeds by more than 2% the acquisition cost of the Stock Line. Under these circumstances WhiskyInvestDirect accepts an obligation to make good any difference.
Major and Minor Stock Lines
WhiskyInvestDirect will classify individual Fungible Products of whisky available on the WhiskyInvestDirect platform into Major Stock Lines and Minor Stock Lines.
Each Major and Minor Stock Line is composed of a single Fungible Product of whisky.
By default each whisky is classified as a Minor Stock Line.
Major Stock Lines afford additional liquidity protections for customers.
Subject to satisfying at least the following condition WhiskyInvestDirect may, at its discretion, promote a whisky to Major Stock Line status.
- The volume of the Stock Line held within the WhiskyInvestDirect system must equal or exceed the Major Stock Line Limit.
Fair Bids Policy for Major Stock Lines
For every holding a customer acquires while it is a Major Stock Line that customer is entitled to demand a bid from WhiskyInvestDirect, at a Fair Market Bid Price, subject to a limit of £10,000 (or equivalent) for each individual Stock Line held. Fair Market Bid Prices are calculated by references to the WhiskyInvestDirect Malt Index [WIDMI] or the WhiskyInvestDirect Grain Index [WIDGI], according to the type of whisky being bid for, after adjusting for the age of the particular Stock Line, and for its quality. Read more on the Indices and How Fair Market Bid Prices are calculated.
The Fair Market Bid Price ensures all customers who purchase Major Stock Lines and whose holding values do not exceed £10,000 per Stock Line will be able to exit their entire portfolio of whisky, on demand, at reasonable prices, by selling their whisky to WhiskyInvestDirect under a Fair Market Bid Price.
WhiskyInvestDirect may not buy from a customer any whisky at a Fair Market Bid Price while superior bids have been placed onto the order board by other customers, in which case the selling customer will receive a price better than the Fair Market Bid Price.
Right to delay settlement
Although ordinarily trades at Fair Market Bid Prices will be settled immediately, exceptionally WhiskyInvestDirect will have the right to extend the settlement period for these trades by up to 2 months.
Termination of Major Stock Line status
WhiskyInvestDirect is entitled, at its discretion, to terminate Major Stock Line status for a whisky.
Where it does so it accepts an obligation to make or arrange (on behalf of a third party) a bid at a Fair Market Bid Price to all customers who bought that Stock Line while it was a Major Stock Line, up to a limit of £10,000 (or equivalent) per customer holding that Major Stock Line.
Under this right of WhiskyInvestDirect and where the amount of the Major Stock Line is not expected to fall below the Major Stock Line Limit, the Fair Bid Discount will never exceed 1%.
Where customers decline a bid, the Stock Line having reverted to a Minor Stock Line, there will be no ongoing obligation on WhiskyInvestDirect to make Fair Market Bid Prices for that whisky.
Withdrawals of Major Stock Line whisky
If at any time a withdrawal causes a Stock Line to cease to be a Major Stock Line by virtue of there being an outstanding quantity within WhiskyInvestDirect of below the Major Stock Line Limit, then the party making the withdrawal must either:
- Make or extend a Bulk Trade Bid for the entire Stock Line at not less than the greater of
- the maximum price paid by that party for any of the Stock Line in the previous six months, and
- the Fair Market Bid Price of that whisky
- Take whatever action is necessary - at their own expense - to repair the Stock Line and make it once again a Major Stock Line, within a reasonable period of time.
Bulk Trade Bids [BTBs]
The purpose of a BTB is to allow an industrial buyer to acquire a substantial quantity of whisky for their purposes of blending and/or bottling, all bought simultaneously from many current owning customers, and under the same commercial terms.
BTBs are designed as the main mechanism permitting whisky stocks to exit the WhiskyInvestDirect system, thereby crystallizing the profits of WhiskyInvestDirect's users and triggering the bottling and ultimately the sale of the whisky to consumers.
Towards the end of maturation these large scale bids will be sought by WhiskyInvestDirect's management, from blenders and bottlers. WhiskyInvestDirect accepts a responsibility to keep the industry informed regarding the stock of whiskies available on the platform.
BTBs will be executed in the public domain. In some cases a blending whisky that is considered ready for bottling at a particular age will attract competitive bids. This is an ideal situation which discovers a final fair value for a whisky, as different bottlers seek appropriate ingredients for their brands.
Features of BTBs
A BTB will be conditional as to the number of acceptances - defined in LPA - being received by a Closing Date.
The BTB will specify at least:
- The Bidder
- A Stock Line
- Minimum Quantity
- Maximum Quantity
- Price per LPA
- Closing Date, and a
- Settlement Date - ordinarily on the first business day following the Closing Date.
BTBs will only be permitted from organisations suitably authorised under WOWGR [Warehouse-keepers and Owners of Warehoused Goods Regulations - 1999 - published by HMRC] and they must be pre-approved by WhiskyInvestDirect.
BTBs will not be approved if – in the opinion of WhiskyInvestDirect – they reduce the outstanding quantity of a Stock Line so as to reduce its overall marketability to subsequent bidders. In such circumstances, or if the result of a BTB would cause a Major Stock Line to lose that status, the Bidder will be required to bid for the entire Stock Line giving all users an opportunity for exit.
In order to place a BTB the bidder must fund their account with sufficient cash to settle the maximum resulting purchase. Cash received will be frozen within the Client Money system until the closing date. It is the responsibility of the bidder to organise such finance as they may require before being permitted to make a BTB.
Accepting a BTB
WhiskyInvestDirect accepts an obligation to inform customers of BTBs in whiskies which they own.
BTBs will be advised to customers by email sent to their registered email address. These emails will indicate the process for acceptance of a bid.
When WhiskyInvestDirect customers accept a BTB they are not guaranteed to have entered a deal until the conditions are met and the bid is declared unconditional. In the meantime the bid and the user's acceptance of it are subject to the same conditions specified on the BTB notification.
Both the Bidder's cash and the Acceptors' whisky will be frozen in their accounts pending the bid becoming unconditional.
WhiskyInvestDirect users will be released from an acceptance automatically if a subsequent BTB is issued for the same Stock Line, at a higher price, and before the closing date. In this case the Stock Line will enter into a BTB Auction.
If the conditions are met then the bid will be declared unconditional. At this point the Bidder and Acceptors are deemed to have entered into a contract. WhiskyInvestDirect will process settlement as soon as reasonably practicable.
Having been declared unconditional then if the Stock Line has or will lose its Major Stock Line status the bid will remain open for a period of 35 days, during which period dissenting owners may accept the BTB.
A BTB auction occurs when two or more BTBs are competing to buy the same Stock Line using BTBs.
The declaration of an auction will cause all lower accepting bids automatically to be deemed to accept the higher bid.
Stock Line status
Certain statuses of bids and offers may be advertised by WhiskyInvestDirect on the order board.
New Stock Line
Where a Stock Line is being offered as a New Stock Line WhiskyInvestDirect may draw attention to it on the order board. WhiskyInvestDirect will benefit by doing so because it is likely to sell more whisky to customers under this classification. Customers will benefit from an elevated level of confidence that they are paying a price within 2% of a recent wholesale purchase.
Major Stock Line
Where a Stock Line is a Major Stock Line WhiskyInvestDirect may draw attention to it on the order board. WhiskyInvestDirect will benefit by doing so because it is likely to sell more whisky to customers under this classification. Customers will benefit from an elevated level of confidence that they are buying a whisky which will in future be easy to sell at a Fair Market Bid Price.
Fair Market Bid Price
Where a bid by any user matches or exceeds a Fair Market Bid Price for a Stock Line then WhiskyInvestDirect may draw attention to it on the order board, provided that the Fair Market Bid Price has been calculated within the last 48 hours.
Subject to a BTB
Where a bid is below a prevailing BTB, WhiskyInvestDirect may draw attention to it on the order board.
The following lists indicate such risks as WhiskyInvestDirect considers material. It does not constitute a statement of all possible risks.
Risks which are not a WhiskyInvestDirect responsibility
Whisky price movements — You are exposed to the risk of potential loss arising from a falling whisky price during the time in which you own whisky. This risk is not a WhiskyInvestDirect responsibility
Politics — Government, either of the EU, or the UK or Scotland, and or other agencies might seek to constrain, disadvantage or tax the ownership of whisky to the detriment of its owners. The actuality or fear of government action might affect the value of your whisky. This risk is not a WhiskyInvestDirect responsibility.
Bank insolvency — Your cash balances at WhiskyInvestDirect are deposited in segregated accounts at a respected bank, but your money's safety is dependent on bank integrity. All banks are subject to possible failure. Depending on a number of factors in the event of bank failure you might be entitled to receive compensation from appropriate authorities, but the terms of such compensation are complex and the timescale for receiving compensation might be long. This risk is not a WhiskyInvestDirect responsibility.
Identity theft — If your WhiskyInvestDirect account number and password are compromised, you are at risk of unauthorized access to your account. Such access will be alarmed within minutes by SMS messages if both your WhiskyInvestDirect Burglar Alarm is enabled and your account is of sufficient size. Any attempt by an intruder to withdraw value from your account would cause funds to be sent to your established linked bank account. WhiskyInvestDirect seeks to minimise the risks to you associated with identity theft but these are not a WhiskyInvestDirect responsibility unless the breach of security can be shown to have occurred because of WhiskyInvestDirect's error.
Liquidity risk — The risks associated with a lack of immediate liquidity are not a WhiskyInvestDirect responsibility.
System availability — WhiskyInvestDirect's computerized machinery, which is accessed by you across the internet, might become inaccessible for periods of time. For that period of time this could prevent you from executing a transaction which you would otherwise have made. This risk is not a WhiskyInvestDirect responsibility.
Insurance exclusions — As your property your whisky is subject to insurance exclusions imposed by insurance underwriters in line with established insurance practice regarding the physical protection of your whisky. These excluded risks are presented on the evidence of insurance published on the WhiskyInvestDirect site and include events like nuclear war. These risks are not a WhiskyInvestDirect responsibility and are risks you undertake with respect to your whisky, except that no exclusion absolves WhiskyInvestDirect in undertaking its correct duties of care in arranging the security of your property to levels considered commercially acceptable.
Force Majeure — The risks described under Force Majeure are not WhiskyInvestDirect responsibilities.
Risks which are a WhiskyInvestDirect responsibility
WhiskyInvestDirect accepts it has duties of care with regard to aspects of risk to your property and undertakes to manage risks so as to contain them at minimal levels, consistent with best business practices.
Subject to the provisions for Exclusions and Limits of liability in these Terms and Conditions WhiskyInvestDirect accepts liability for failing in this duty.
Physical whisky theft — Your whisky could conceivably be stolen from a bonded warehouse by determined thieves. It is the bonded warehouse operator which accepts a duty to retain sufficient security measures, and WhiskyInvestDirect's duty to maintain appropriate insurance cover (subject to exclusions) against such an eventuality.
Subject to the provisions for Exclusions and Limits of liability in these Terms and Conditions WhiskyInvestDirect accepts liability for failing in this duty.
Theft of Customer money — Money held in the segregated Client accounts could be illegally transmitted through the banking system by a determined thief, or thieves, operating within WhiskyInvestDirect.
Subject to the provisions for Exclusions and Limits of liability in these Terms and Conditions WhiskyInvestDirect accepts liability for failing in this regard.
WhiskyInvestDirect segregation management — A failure by WhiskyInvestDirect's system to prevent a customer from over-purchasing beyond his cash balance, or over-selling beyond his whisky balance would render a segregated account temporarily incapable of meeting its obligations to other customers. All WhiskyInvestDirect software is designed to eliminate this eventuality. Moreover WhiskyInvestDirect checks its accounts daily for such eventualities. The risk of material loss is extremely small, because any such over-trading would be substantially offset by a surplus in the opposite segregated account.
Subject to the provisions for Exclusions and Limits of liability in these Terms and Conditions WhiskyInvestDirect accepts liability for failing in this duty.
WhiskyInvestDirect record keeping — A risk in all business record keeping systems is that internal records may show a position which satisfies the organization's officers but does not represent the real world, and where the problems only come to light when it is too late. The risk rises with increasing complexity of transactions and the availability of credit, neither of which apply to WhiskyInvestDirect. For all businesses the record keeping risk is statutorily addressed by annual audit. In addition WhiskyInvestDirect controls its record set by voluntarily submitting its daily reconciliations of Customer property to public inspection on the web once per month.
WhiskyInvestDirect insolvency — WhiskyInvestDirect has modest operating costs and a substantial inventory of marketable whisky. Together these provide significant financial strength. However unforeseen events could conceivably damage that financial strength, rendering WhiskyInvestDirect insolvent.
The insolvency of WhiskyInvestDirect would not affect your property rights with regard to money or whisky in a WhiskyInvestDirect account, but it would be likely to create some inconvenience and delay for you in taking hold of that property.
Disastrous data loss — WhiskyInvestDirect's system contains data in electronic form which could conceivably be lost in a widespread and catastrophic machinery failure. WhiskyInvestDirect operates a redundant machinery policy which means that every component of its data storing capability is protected by both local and remote data duplication. The likelihood of a simultaneous loss of all data copies is extremely low. However, in addition to this the system sends an encrypted copy of full ownership records to remote data locations identified to WhiskyInvestDirect's auditors, ensuring that data loss is a temporary inconvenience, not a disaster.
In the event of your incapacity
In the event that you become incapacitated you permit WhiskyInvestDirect to allow your account to be maintained on your behalf by your duly authorized attorney.
You permit WhiskyInvestDirect to seek proportionate legal advice in the appropriate jurisdiction at the expense of your account, but limited to the relevant charges detailed in the Tariff.
In the event of your death
In the event of your death there are different procedures depending on the jurisdiction in which you die.
WhiskyInvestDirect undertakes to process your WhiskyInvestDirect account in accordance with the instructions of your authorised executors or administrators.
You permit WhiskyInvestDirect to seek proportionate legal advice in the appropriate jurisdiction at the expense of your account, but limited to the relevant charges detailed in the Tariff.
For further information please refer to our procedure for handling deceased accounts.
API and trading robots
You agree to abide by terms for using the WhiskyInvestDirect API. You acknowledge that these terms may be amended from time to time. WhiskyInvestDirect reserves the unilateral right to suspend or switch off your access to the API and remove all orders should you be in breach of these terms.
WhiskyInvestDirect takes no responsibility for the performance of any unofficial product making use of the API.
WhiskyInvestDirect runs an affiliate programme which allows WhiskyInvestDirect clients to earn a portion of the commission charged on trades made by customers they have referred to us.
By becoming an affiliate, you consent to the Terms and Conditions of our referral programme.
The prevailing WhiskyInvestDirect Tariff is published on the WhiskyInvestDirect website, here.
Charges are ordinarily settled out of your cash resources on WhiskyInvestDirect. In the event that charges are outstanding because you have neither paid money in, nor raised cash by selling whisky, and after informing you at your contact email address of its intention to do so, WhiskyInvestDirect has the right to sell whisky at reasonable market prices to raise money sufficient to pay outstanding charges.
System availability and downtime
The system is scheduled to operate continually except where planned software updates and maintenance is necessary, usually carried out on weekends. WhiskyInvestDirect will always provide an advance warning notice via the website for planned downtime. There may also be planned service interruptions at other times where maintenance requires urgent action which cannot wait until a weekend. Such service interruptions will where possible be planned at times of lower public demand for the service.
Where service interruption is planned and you have an open order your order will ordinarily survive the service interruption.
When an unscheduled service interruption occurs and you have an open order your order will ordinarily survive. However, in some instances these orders may be removed at the resumption of the service and any un-traded element of the order will be treated as cancelled.
We will endeavour to keep you informed via email when you have open orders killed during a period of unscheduled service interruption, but you accept that the nature of the service interruption may make it impractical for us to do this.
You accept that service interruption is an unavoidable event on networked computers. You accept our terms for handling service interruption vis-a-vis your open orders. You understand that leaving a firm order on the Order Board can expose you to risks which are increased in the event of a service interruption, and you accept those risks.
External regulation of WhiskyInvestDirect
You confirm that you understand the nature of your transactions as being the purchase and sale of physical, maturing stocks of whisky, for immediate delivery to/by your agent within a bonded warehouse, and for immediate monetary settlement to or from your WhiskyInvestDirect account. You understand and acknowledge that WhiskyInvestDirect deals in tangible goods, and not ‘investments' as defined by the Financial Services and Markets Act [FSMA] 2012.
You understand and accept that WhiskyInvestDirect falls outside the defined scope of formal financial services regulation in the UK. You accept that the use of the word investment anywhere within the context of WhiskyInvestDirect is made with respect to the general meaning of seeking to grow the worth of your property, and not with regard to the specific and narrower meaning given in the FSMA 2012.
You understand that the general provisions for investor protection which apply through the Financial Conduct Authority [FCA] - for example the compensation fund - do not apply within WhiskyInvestDirect. Your protection is provided through specific insurance arrangements, which do not cover all risks.
This style of business is regulated by traditional English property law, and regulatory responsibility rests on three mutually independent arms of law enforcement: (i) the investigating authority, (ii) the prosecuting authority and (iii) the Criminal Courts.
- The investigating authority is the Police. Police forces are independently funded out of civil taxation and their role is to investigate reports of crimes and to produce a report for the prosecuting authority. Theft and fraud perpetrated against you or your property fall under the scope of the Police. You would report your suspicion of a crime to the Police.
- The prosecuting authority is the UK Crown Prosecution Service. It is independently funded out of civil taxation and its role is to prosecute breaches of statute law where evidence gathered by the investigating authority produces a reasonable prospect of conviction.
- The Criminal Court system hears the cases of the prosecuting authority, establishes guilt or innocence through the jury system, and empowers judges to punish. It too is independently funded out of civil taxation.
There is no cost to you in reporting a crime and it is the duty of the above authorities to bring before the courts a case against WhiskyInvestDirect or its officers arising from a breach by WhiskyInvestDirect of statute law.
In addition you have recourse to the civil law, which would rule on disputes between you and WhiskyInvestDirect arising when either alleges against the other a damaging breach of these stated Terms and Conditions. Bringing and defending a case under civil law would ordinarily incur costs
Correction or Errors
Record Keeping Error
In the event of administrative error WhiskyInvestDirect is entitled after the event to make appropriate adjustments to records of your account.
Trading System Error
Neither WhiskyInvestDirect nor you have the right to make profits from trading system failures.
The WhiskyInvestDirect system is designed to protect all users from clear trading errors by rejecting orders priced substantially away from the prevailing whisky price. This protection depends on receiving currency and whisky market price data from a variety of digital sources. The effectiveness of this protection is to an extent out of WhiskyInvestDirect's reasonable control. In the event of a failure to protect participants in this way both WhiskyInvestDirect and you accept that reasonable adjustments may be made after the event in order to ensure the marketplace operates fairly to all participants.
You are responsible for paying such local taxes as are or may be applied on whisky purchases, whisky sales and whisky custody, and on any associated charges, and such taxes are added to charges where appropriate.
WhiskyInvestDirect shall not be liable to you for any delay or failure by it to perform its obligations if such delay or failure arises from any unforeseeable causes beyond its reasonable control including, but not limited to, acts of God, floods, lightning, earthquakes, labour disputes, shortages, rationing, utility failures, war, terrorism, riot, embargoes, and actions of any government agency or subdivision thereof.
The law governing the provision of the WhiskyInvestDirect service to the Customer is the law of England and any disputes arising in respect hereof shall be governed exclusively by the English courts.
Exclusions and Limits of liability
(a) The following provisions set out the entire financial liability of WhiskyInvestDirect (including any liability for the acts or omissions of its employees, agents and sub-contractors) to you in respect of:
(i) any breach of these Terms and Conditions; and
(ii) any representation, statement or tortious act or omission including negligence arising under or in connection with these Terms and Conditions.
(b) All warranties, conditions and other terms implied by statute or common law (save for the conditions implied by section 12 of the Sale of Goods Act 1979) are, to the fullest extent permitted by law, excluded herefrom.
(c) Nothing in these Terms and Conditions excludes or limits the liability of WhiskyInvestDirect:
(i) for death or personal injury caused by WhiskyInvestDirect's negligence; or
(ii) under section 2(3), Consumer Protection Act 1987; or
(iii) for any matter in which it would be illegal for WhiskyInvestDirect to exclude or attempt to exclude its liability; or
(iv) for fraud or fraudulent misrepresentation.
(d) Subject to paragraphs (b) and (c) above:
(i) WhiskyInvestDirect's total liability in contract, tort (including negligence or breach of statutory duty), misrepresentation, restitution or otherwise, arising in connection with the performance or contemplated performance of these Terms and Conditions shall be limited to the value of your cash balance and/or whisky from time to time deposited with or by WhiskyInvestDirect; and
(ii) WhiskyInvestDirect shall not be liable to you for any pure economic loss, fall in the value of your whisky or currency, loss of profit, loss of business, depletion of goodwill or otherwise, in each case whether direct, indirect or consequential, or any claims for consequential compensation whatsoever (howsoever caused) which arise out of or in connection with these Terms and Conditions.