1. A new way of pension planning This presentation is directed at Professional Financial Advisers only. It should not be distributed to or relied upon by retail clients

2. Agenda

Family SIPP

Pooled Investment Choices

Options at retirement

Why AXA Winterthur?

06/11/09 3. Background: A Day Impact

One set of rules for all registered pension schemes. Access now viable to individual trust based personal pension schemes

• No sponsoring employer

• No need for an employer contribution

• Include members who are employees but not controlling directors

• Scheme pension in addition to USP / ASP

• Non employees (e.g. spouse, children) as members

• Pooling of scheme assets

• More than one scheme per employer

06/11/09 4. Missing Link

Market polarised post A-Day between SSAS and Personal SIPP

Revised interest in SSAS particularly driven by Employer loan backs and greater investment flexibility

Growth in personal SIPP market continuing despite FSA focus

Is there something that fits between a SIPP and a SSAS?

06/11/09 SIPP SSAS ? A new company: A new proposition 5. Family SIPP

An exciting new opportunity

Effectively blends the best features of SSAS and Mastertrust SIPP, plus some new features

A true Family SIPP

What it is a means for any group of like minded individuals to be members of the same scheme and maximise investment opportunities and retirement options available

What it is not a means to circumvent HMRC regulations with regard to passing on tax relieved pension savings from one generation to another

Really better described as anindividual trust based SIPP

06/11/09 A new company: A new proposition 6. Legal Framework

The scheme willnotbe written under a Master Trust

Eachfamilyorgroupwill effectively have their own scheme via an Individual Trust Deed and Rules

This will allow multi memberpooledSIPP schemes

06/11/09 SIPP Master Trust Many members & Assets all held under the Master Trust Assets will be held as pooled investments Family SIPP Family Dad Mum Kids 7. Pooled Investment Choices

Discretionary Fund Manager (DFM)

Premier Invest

UK Commercial Property

Offshore Bonds

Trustee Investment Plans

Deposit Accounts

06/11/09

The choice of investment must comply with the Revenues rules for authorised investments .Broadly this means quoted stocks & shares, authorised unit trusts, investment trusts, Open Ended Investment Companies, suitable commercial property as well as investment funds of insurance companies.

A designated bank account will be set-up for each Family Suntrust scheme. All transactions are made using this account. Interest is calculated daily on funds remaining in the account & will be credited to the account quarterly.

8. To pool or not to pool.. 06/11/09

Potentially enables much larger value assets to be purchased when compared to a single SIPP

Larger borrowing opportunities if members pool their assets

Contributions are deemed to be for the benefit of the member who made them, however, potentially there may be different ways of allocating investment growth between the members

OFFICE A SIPP B SIPP C SIPP SIPP OFFICE Contributions and Transfer Values ABC Family SIPP 9. Pooled Fund An example case study

Derek Tor is 59 and he is a member of a Mastertrust SIPP.

The major part of fund is commercial property with little if any liquidity and maximum borrowing.

His son and son in law in same architects business and they have small personal pensions

The family are interested in ideas for long term expansion of business and an exit strategy for Dad over next 5 years

06/11/09 10. Possible solution? 06/11/09

One pooled fund rather than 3 Mastertrust SIPPs

Son and son in law transfer existing pensions and pay contributions to create liquidity over next 5 years for fathers retirement for both cash and income

Other family members who are not in the business can also join

Maintenance of property in pension for long term

Son in Law Derek Tor Son Family SIPP 11. Options at retirement

Lifetime Annuity

Unsecured Pension (USP)

Alternatively Secured Pension (ASP)

Scheme Pension

06/11/09 12. Scheme Pension

A form of secured pension

Available from individual trust based money purchase schemes as well as DB schemes

Individually determined pension from ring fenced fund with no mortality cross subsidy

Scheme Pension is calculated by reference to

• the fund size (minimum 100,000)

• the age, gender and life expectancy of the individual and the nature of the investments

• the other usual factors such as the likely level of charges and payment frequency

Potentially higher income than annuity or ASP

10 year fixed payment period possible

Dependants pension can be provided from any remaining fund on death

06/11/09 13. Scheme Pension

When can you have it?

It can be offered at outset when the pension commences

Following a period of USP

Following a period of ASP

For surviving spouse/dependant

Likely to be most widely used at or post age 75

06/11/09 14. 06/11/09 Income available Alternatively Secured Pension AXA Scheme Pension Options affecting income available When is income reviewed Fixed payment period Is payment in fixed period following members death subject to IHT Spouses benefit Left over funds 1. Charity payment no tax 2. Where allowed, payment out of fund max 82% tax

To unconnected parties within scheme no tax

Left in general fund to pay future charges no tax

Paid out of scheme max 73.2% tax

Health Selected by client and must be between 55% & 90% of GAD rates for 75 year oldActuarially set, based upon age, gender, life expectancy & yield assumptionsNone available Level or increasing, up to 10 year fixed payment period No Yes, up to 10 year fixed payment period Not an available option within ASP No, as payments subject to administrators discretion Annually, always based upon 75 year old At least every 3 years actual age N/A Yes underwriting possible at outset and reviews Yes, (ASP/USP/Annuity/Scheme pension) from remaining fund (if any) Yes, (ASP/USP/Annuity/Scheme pension) from remaining fund (if any) 15. Benefits of Family SIPP

Allows multiple members under one Trust arrangement (previously only available for Occupational Schemes)

Allows members to pool assets under one scheme which could be an advantage with regard to economies of scale, administration, investment opportunities and therefore potentially from a growth point of view

Allows a wider range of income options on retirement than a traditional SIPP

Will appeal to families, business partners, as well as traditional SSAS / SIPP type clients

06/11/09 Charges on the Family Suntrust may be higher than for a personal pension or a stakeholder plan . 16. Why AXA Winterthur? AXA Winterthur: First class Heritage & Strength

AXA

• 29 years of looking after self-invested customers*

• 22,000 self-invested customers with over 2.5 billion invested**

• 130 dedicated staff providing knowledgeable and confident expertise**

Winterthur

• Founder member of SIPP provider group (now the Association of Member Directed Pension Schemes)

06/11/09 *Sun Life Assurance Society, now part of AXA, has been involved in the self-invested pensions market since it inaugurated its first SSAS scheme in November 1979**Figures as at April 2009 17. Summary

Family SIPP

Pooled Investment Choices

Options at retirement

Why AXA Winterthur?

06/11/09 This presentation is a very high level introduction to the Family Suntrust proposition and a recommendation to invest should not be made on the basis of this presentation alone. 18. Important Information 06/11/09

The minimum joint initial investment is 200,000.

Charges may be higher than for a personal pension or stakeholder plan.

For Scheme Pension its worth noting that a clients future pension income is not guaranteed. There is a risk that investment performance could be poorer than expected or actual life expectancy is better than assumed meaning income from Scheme Pension could reduce or stop all together.

The value of investments can fall as well as rise and is not guaranteed this means that your clients could get back less than they invest.

Please remember that there could be a delay when selling commercial property.

Full details of our range of products and services are available on request

The information contained within this presentation is based on our understanding of present law and HM Revenue and Customs practice, which may be subject to change. The value of any tax benefits depends on individual circumstances.

The address for written communication is AXA, PO Box 1810, Bristol, BS99 5SN.

The telephone number of AXA is 0117 989 9000.

AXA is a worldwide insurance group.

This product is provided by AXA Sun Life plc.The AXA Winterthur Wealth Management proposition is offered by companies within the AXA UK group of companies which includes AXA Sun Life plc. AXA Sun Life Services plc distributes financial products for this proposition and is issuing thisitem. AXA Sun Life Services plc is authorised and regulated by the Financial Services Authority and is a company limited by shares, registered in England No. 3424940, registered office: 5 Old Broad Street, London, EC2N 1AD. As part of our commitment to quality service, telephone calls may be recorded.