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INVESTOR PORTFOLIO SERVICE (IPS) – PORTFOLIO INVESTMENTS INVESTING WITH IPS. This brochure tells you about investing in unit trusts, OEICs and ISAs with us, and supports the Key Investor Information Document. It also includes our Terms and Conditions.

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Page 1: INVESTOR PORTFOLIO SERVICE (IPS) – PORTFOLIO … · 2018-09-23 · Investor Portfolio Service investments. You can also register for secure online access to your account. Once registered,

INVESTOR PORTFOLIO SERVICE (IPS) – PORTFOLIO INVESTMENTS

INVESTING WITH IPS. This brochure tells you about investing in unit trusts, OEICs and ISAs with us, and supports the Key Investor Information Document. It also includes our Terms and Conditions.

Page 2: INVESTOR PORTFOLIO SERVICE (IPS) – PORTFOLIO … · 2018-09-23 · Investor Portfolio Service investments. You can also register for secure online access to your account. Once registered,

INVESTING WITH IPS – CONTACTING IPS2

We’re here to help you. It’s easy to change your details, ask a question, get information, add or withdraw money or change funds.

There are a number of ways you can contact us:

CALL US

You can call our Customer Services on:

0845 272 0089

9.00am to 5.30pm, Monday to Friday

for general information on our range of funds or for questions about your Portfolio Investments.

Call charges will vary. We may record and monitor calls. This number may not be available outside the UK.

WRITE TO US

You can write to us with certain instructions on your Portfolio Investments, if you’re changing any personal details, if you have any questions or you have a complaint:

Investor Portfolio Service

Legal & General

PO Box 1112

Chelmsford

CM99 2UX

CONTACTING IPS.EMAIL US

For general enquiries, comments and suggestions you can send an email to Customer Services:

[email protected]

If you’re contacting us by email please remember not to send any personal, financial or banking information because your information won’t be secure.

ONLINE INFORMATION AND SERVICING

You can visit our website:

www.onlineips.co.uk

for news, fund information, brochures and forms for your Investor Portfolio Service investments.

You can also register for secure online access to your account.

Once registered, you can:

• View your IPS portfolio valuation.

• Access quick and print-friendly valuations across your entire IPS portfolio.

• See your IPS historical transactions, statements and correspondence from us.

• Top up and change funds in existing Portfolio Investments (your ISAs, unit trusts and OEICs).

• Buy new Portfolio Investments; and

• Move money between your IPS Cash Account and Portfolio Investments.

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INVESTING WITH IPS – CONTENTS 3

CONTENTS.

WhErE TO STarT

Unit trusts and OEICs

BEfOrE yOu iNvEST

How can I invest?

Tax

Keeping track of your money

BECOmiNg aN iPS iNvESTOr

ISAs

Charges and expenses

What we’ll send you after you’ve invested

What is Investor Portfolio Service (IPS)?

Income

Changing your mind – your right to cancel

Adding money and changing your funds

afTEr yOu’vE iNvESTEd

Income and withdrawals

Who looks after my investment?

Where will my money be held and how secure is it?

The Investor Portfolio Service Terms and Conditions

yOur PEaCE Of miNd

How we treat different types of customer

TErmS aNd CONdiTiONS

Making a complaint

The Financial Services Compensation Scheme

Your Portfolio Investments Terms and Conditions

Our right to terminate your account

glOSSary

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6

5

9

19

24

5

8

14

23

5

12

22

25

23

28

30

32

34

30

31

34

31

33

42

33

55

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INVESTING WITH IPS – BEFORE YOU INVEST

WhErE TO STarT.BEfOrE yOu STarT rEadiNg

There are several important documents that you should read to help

you make your decision about investing:

• The Key Investor Information Document (KIID) gives you the key information on a specific fund, to help you decide whether it’s right for you. This includes the fund objectives, investment policy, risk and reward information, charges and past performance. It’s essential that you read the KIID carefully so that you understand what you’re buying. You must make your fund choice(s) based on this information. If in future you top up your investment or change your fund choice(s), you should read the latest KIID for your chosen fund(s) before you give us your instruction.

• This Investing with IPS brochure gives you practical information about the investments we’re offering and the IPS service. It also includes the Terms and Conditions that apply if you’re investing with IPS.

• The Important Fund Information brochure gives you more information, in addition to the information on the KIID, about each of the funds you can choose from. It also contains information to help you understand what the specific risks are for each fund and explains the different ways of measuring risk. You should read the booklet to understand more about the funds you’re choosing.

• The Commission sheet tells you how much is paid to an adviser or introducer for the sale of your investment.

It’s very important that you look at all these documents to help you make the right choices. Please keep all these documents safe for

future reference.

The Fund Prospectus for each fund we offer is available from the fund manager or by contacting Customer Services.

If you don’t have any of these documents, or you want an updated version, you can get them on our website, from Customer Services, or from your financial adviser.

INVESTING WITH IPS – WHERE TO START4

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5INVESTING WITH IPS – BEFORE YOU INVEST

BECOmiNg aN iPS iNvESTOr.iNvESTiNg WiTh iPS iS SPliT iNTO fOur SECTiONS:

• Before You Invest – tells you about the unit trusts, OEICs and ISAs that IPS offers, how they work, and your options. It explains the aims and commitments of these Portfolio Investments, and the risks that apply to all the funds we offer. It also explains the charges for investments, how they’re taxed and your right to cancel.

• After You’ve Invested – this section tells you what happens after you’ve invested with us and what information we send you. It also explains what options you have once you’ve invested, and how to take out your money.

• Your Peace of Mind – tells you who looks after your investment, who regulates us, how compensation arrangements work, and what to do if you have a complaint.

• Terms and Conditions – the terms and conditions for the IPS service, and for Portfolio Investments.

There’s also a glossary of commonly used terms inside the back page.

aNy quESTiONS?

If there’s anything you don’t understand or you’d like more information, please contact us and we’ll be pleased to help. All our contact details are at the front of this brochure.

BEfOrE yOu iNvEST.WhaT iS iNvESTOr POrTfOliO SErviCE (iPS)?

IPS is an investment service offered by Legal & General, where you can invest in and manage investments from different fund management companies in one place. As an IPS customer you can choose the funds that suit you from our wide choice. We’re here to make things simple, offering you choice, convenience and control over your money.

Choice – You can choose the funds that suit you from our range of carefully selected funds from leading fund managers, including M&G, Jupiter, Legal & General, Schroders and Threadneedle. The range of funds we offer you are chosen by our Investment Management Research Unit (IMRU). They ensure that funds we offer cover a cross-section of asset classes (such as company shares, bonds, property) and different levels of risk and return – so they are suitable for almost any investor.

Convenience – With IPS you hold your Portfolio Investments – funds held as unit trusts, OEICS and stocks and shares ISAs from any of those fund managers – together in one place.

Control – With our flexible service, we’re here when you need us. We understand that some investors want online access to view valuations and actively manage their funds online. Others prefer to invest in the funds that suit them, and are happy with a comprehensive annual statement updating on their investment performance. Whichever type of investor you are, we have the tools and support to help you meet your investment goals.

Note – IPS is not a stockbroker or discretionary fund service – we’ll only buy, sell, or change the funds you’re invested in on your, or your financial adviser’s, direct instruction. The funds we offer are managed by leading fund management companies, and you’ll remain invested in the funds you choose unless you tell us to change them. We offer you services to keep you informed and help you monitor and manage your Portfolio Investments.

WhO iS lEgal & gENEral?

The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2011, we were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.

INVESTING WITH IPS – WHERE TO START

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INVESTING WITH IPS – BEFORE YOU INVEST6 INVESTING WITH IPS – BEFORE YOU INVEST

SuiTaBiliTyWhErE CaN i gET adviCE ON WhEThEr aN iNvESTmENT iS SuiTaBlE fOr mE?

The purpose of this document isn’t to give you advice or make a recommendation. It’s up to you to decide if this is suitable for you. We haven’t assessed whether this product is suitable for you. This means that you don’t have the protection you would have received if we had done this.

If you need help, speak to your financial adviser if you have one, or contact our Customer Services on the number on page 2 who will explain your options to get advice. We can only advise on Legal & General’s life assurance and investment products.

uNiT TruSTS aNd OPEN-ENdEd iNvESTmENT COmPaNiES (OEiCs)Why ChOOSE a uNiT TruST Or OEiC?

Unit trusts and OEICs are types of investment that:

• Give you the potential to make your money grow and/or receive an income;

• Offer you access to buy different types of ‘assets’, including company shares, bonds, commercial property, cash and even in other investment funds;

• Allow you to buy a wider range of investments than you would conveniently be able to achieve on your own;

• Can help to reduce risk by spreading your money over a range of investments; and

• Give you access to professionally managed funds so you don’t have to choose individual assets such as company shares or bonds by yourself.

All the funds we offer are available as a tax-efficient Individual Savings Account (ISA) – there’s more about ISAs on page 8.

Unit trusts and OEICs are very similar in many ways, but have a different legal structure and can have other differences. For example the way that units and shares are priced can differ when you buy and sell, as we explain on page 14. We may refer to unit trusts and OEICs collectively as ‘Portfolio Investments’.

hOW dOES a uNiT TruST/OEiC WOrk?

• You invest your money in the fund together with other investors’ money.

• A unit trust is divided into units, and the number of units you hold represents your share of the fund.

• An OEIC is divided into shares and the number of shares you hold represents your share of the fund.

• Most funds have two unit/share types: distribution units/shares for income and accumulation units/shares for growth.

• When the fund receives more money, the manager buys more assets and creates new units/shares.

• The price of the units/shares will reflect the value of the fund’s assets. If these go up in value, the price will rise. If they go down in value, the price will fall.

• Funds can have either a single unit/share price, so the price is the same on a single day for both buying and selling, or two prices – the buying price and the selling price.

See the ‘Charges and expenses’ section on page 14 for more about how units and shares are priced.

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INVESTING WITH IPS – BEFORE YOU INVEST 7INVESTING WITH IPS – BEFORE YOU INVEST

WhO CaN iNvEST?

You must be 18 years old or over to invest. Unfortunately, Portfolio Investments aren’t available to US Persons. If you become a US Person/Resident in future, you must let us know. You can contact us if you need more information.

If you’re investing directly in unit trusts or OEICs:

• You can invest on your own or with up to three other people.

• If you’re investing jointly, we’ll need all investors to sign for all future transactions including changes to income payments.

If you’re investing within an ISA:

• You can invest only on your own.

• You must be resident, and ordinarily resident, in the UK for tax purposes. Your local tax office can help if you need confirmation of your residency status.

• Crown employees, such as diplomats or members of the armed forces who are working overseas and paid by the government, are eligible to open an ISA. Their spouses or registered civil partners can also open an ISA.

WhaT’S my COmmiTmENT?

• You can invest a lump sum, or make a regular payment every month, with a minimum of £20 into each fund you’re buying. If you’re investing directly in a unit trust or OEIC, there’s no maximum investment limit. If you’re investing through an ISA, there are investment limits for each tax year.

• You don’t have to leave your money for a fixed length of time. You can tell us you want to take out some or all of your money at any time.

• Ideally you should not commit yourself to a particular end date, you should consider it as a medium to long-term commitment, for example at least five years.

• If you change your mind, you have 14 days after you receive your cancellation notice to cancel your investment.

WhaT arE ThE riSkS?

There are some risks that you need to understand before you invest:

• The value of your investment, and any income from it, can fall as well as rise. If this happens, you may get back less than you invest. You should also bear in mind that investment performance may go up and down more in the short term.

• The nature and level of risk differs from fund to fund. Generally, the greater the potential reward (investment growth or income) a fund offers, the higher the level of risk to your investment.

• Some funds have specific risks depending on factors such as what they invest in or where in the world they invest.

The section called ‘Individual Savings

Accounts (ISAs)’ on page 8 tells you the ISA limits and ‘Changing your mind – Your right

to cancel’ on page 22 tells you more about your right to cancel.

It’s important that you understand the risks of the fund(s) you choose before you invest. The ‘risk and reward profile’ in the KIID shows the fund’s level of risk in relation to the potential reward. It also shows specific risks for the fund. There’s also more information about the fund and the fund risks in Important Fund Information.

hOW dOES a uNiT TruST/OEiC WOrk?

• You invest your money in the fund together with other investors’ money.

• A unit trust is divided into units, and the number of units you hold represents your share of the fund.

• An OEIC is divided into shares and the number of shares you hold represents your share of the fund.

• Most funds have two unit/share types: distribution units/shares for income and accumulation units/shares for growth.

• When the fund receives more money, the manager buys more assets and creates new units/shares.

• The price of the units/shares will reflect the value of the fund’s assets. If these go up in value, the price will rise. If they go down in value, the price will fall.

• Funds can have either a single unit/share price, so the price is the same on a single day for both buying and selling, or two prices – the buying price and the selling price.

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INVESTING WITH IPS – BEFORE YOU INVEST8 INVESTING WITH IPS – BEFORE YOU INVEST

iNdividual SaviNgS aCCOuNTS (iSas)WhaT’S aN iSa?

• An ISA is simply a way of holding Portfolio Investments that has tax benefits. It allows an adult to invest in a unit trust or OEIC without having to pay personal income tax or capital gains tax on any income or growth.

• There is also a ‘Junior ISA’, but as IPS doesn’t offer this product, and it doesn’t affect the limits for an ISA held by an adult, we’re not covering the details here.

• You can split your money between two types of ISA: a cash ISA and a stocks and shares ISA. Each tax year you can either:

– invest up to the ISA limit in a stocks and shares ISA with one provider; or

– you can split this amount between a stocks and shares ISA and a cash ISA with the same or different providers.

• If you have two providers it’s your responsibility to make sure your contributions don’t exceed the overall annual limits.

We offer only a stocks and shares ISA through IPS, however you can hold a stocks and shares ISA with us and a cash ISA with another provider in the same tax year, as long as you keep within the ISA limits.

The ISA limit for adults for this tax year (2012/2013) is £11,280. Of this you can invest up to £5,640 in a cash ISA.

• You can invest your allowance in a single fund or a combination of funds.

• ISA limits are expected to increase each tax year in line with the Consumer Prices Index (CPI). The CPI is a way of showing changes in the cost of living.

• We’ll continue your monthly payments by Direct Debit into the next tax year unless you tell us otherwise. You’ll need to tell us if you wish to increase your payments in line with any annual increase in the ISA limits.

• If you withdraw money held in an ISA, you lose the ISA benefit on that portion of your money – you can’t put that money back into an ISA unless you have enough of your ISA limit left in the current tax year.

The tax benefit of ISAs is based on current rules. The current tax rules may not be maintained and the benefit of the tax treatment depends on individual circumstances. The section called ‘Tax’ on page 19 tells you about the general tax arrangements for ISAs.

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INVESTING WITH IPS – BEFORE YOU INVEST 9INVESTING WITH IPS – BEFORE YOU INVEST

hOW CaN i iNvEST?You can invest in a number of ways:

‘Lump sum’ payment Regular monthly payments ISA transfer Re-registration

‘lumP Sum’ PaymENT

• Minimum investment of £20 per fund.

• Pay by cheque, or with a debit card when investing online.

• If you’re an existing investor, you can pay from money held in your IPS Cash Account. See page 13 for more information on the IPS Cash Account.

• You can add to your existing unit trust, OEIC or ISA at any time.

rEgular mONThly PaymENTS

• The minimum investment in any single fund is £20 a month.

• We collect your monthly contribution by Direct Debit from your bank or building society and invest it on the date you choose on your application form (choose any day from 1st to 28th of each month). Where this is not a working day, money is taken on the next working day.

iSa TraNSfEr

You can transfer an existing ISA you hold with another company to us as cash, or by re-registering it without cashing it in. We’ll invest any ISA transferred to us in a stocks and shares ISA.

• For cash transfers, your existing fund provider will sell your ISA and transfer the cash value to us. We’ll then buy new Portfolio Investments with the cash, in the funds you choose, still within an ISA.

dirECT dEBiT guaraNTEE

•ThisGuaranteeisofferedbyallbanksandbuilding societies that accept instructions to pay Direct Debits.

•Ifthereareanychangestotheamount, date or frequency of your Direct Debit Legal & General will notify you five working days in advance of your account being debited or as otherwise agreed. If you request Legal & General to collect a payment, confirmation of the amount and date will be given to you at the time of the request.

•IfanerrorismadeinthepaymentofyourDirect Debit, by Legal & General or your bank or building society, you’re entitled to a full and immediate refund of the amount paid from your bank or building society.

– If you receive a refund you’re not entitled to, you must pay it back when Legal & General asks you to.

•YoucancancelaDirectDebitatanytimeby simply contacting your bank or building society. Written confirmation may be required. Please also notify Legal & General.

• The ’Re-registration’ section tells you how you can re-register investments, including ISAs, without cashing them in or changing funds.

• If you want to transfer your ISA holding to us, you’ll need to complete the transfer application and authority form and send it to us. We’ll then send it to your existing ISA manager. They’ll take this as authority to cash in your investment according to their terms and conditions. The transfer value will then be sent directly to us for investment. You need to invest a minimum of £20 into each fund with us.

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INVESTING WITH IPS – BEFORE YOU INVEST10 INVESTING WITH IPS – BEFORE YOU INVEST

WhaT yOu alSO NEEd TO kNOW aBOuT iSa TraNSfErS

• Your existing manager may charge an exit fee on transfers.

• You can transfer money saved in a cash ISA to a stocks and shares ISA – but you can’t transfer money the other way.

• If you’re transferring a cash or a stocks and shares ISA taken out in the current tax year, you must transfer your whole cash or stocks and shares ISA investment for the current year.

• You can transfer all of any current tax year cash ISA, but this will be invested in a stocks and shares ISA.

• If there’s a rise in the markets before the ISA transfer, either to or from us, is complete, you could potentially miss out on some income or growth.

• If you transfer a current year cash ISA to a stocks and shares ISA, this ‘resets’ your cash ISA limit for the current year, so you’re free to invest in another cash ISA up to the £5,640 limit, subject to the overall ISA limit of £11,280 (2012/2013 tax year limits).

rE-rEgiSTraTiON

Re-registration is a service we offer that allows you to transfer the administration of your existing unit trusts and OEICs, including ISAs, that you hold with different companies to IPS. The fund doesn’t have to be one we normally offer. Once completed, we handle the administration of the re-registered funds and deal with the fund manager for you. You contact us for any information or to give instructions on any of your re-registered investments, and we send you any fund information and your statements.

Money remains invested in the fund throughout the re-registration process, so you can continue to benefit from any investment growth and income from the fund.

Why WOuld i rE-rEgiSTEr fuNdS i CurrENTly hOld ElSEWhErE?

• You’ll receive a single statement giving a valuation of all the funds you currently hold.

• It’s easy to check your recent payments and transactions, in your statements or by registering for our easy secure online service.

• You can move money between our wide range of funds from top fund providers, by filling out a form securely online.

• It means less paperwork and administration for you. You can contact IPS to manage all the investments you hold with us.

hOW dOES iT WOrk?

If you have a financial adviser, they can tell you if a fund that you hold can be re-registered to IPS. You can also contact us to send you a form to re-register funds.

• The minimum amount is £20 for each fund.

• You can re-register most unit trust and OEIC funds. If we confirm a fund can’t be re-registered, if it’s an ISA, you have the option to transfer the cash into a fund we offer.

WhEN arE uNiTS aNd SharES BOughT aNd SOld?

• Weacceptinstructionstobuy,sellorswitchunitsand shares every business day.

• Eachfundhasavaluationpoint,whichisthespecific time of day when the fund is valued and a price calculated.

• Mostfundshaveadailyunitorshareprice.Fora deal to be done at this price, the instruction to buy, sell or switch units or shares must be received before the dealing deadline for that valuation point.

• Unlesswetellyouotherwise,wemustreceivetelephone instructions at least one hour before the dealing deadline, and instructions received through the website at least 15 minutes before the dealing deadline.

• Monthlyinvestmentsareinvestedonthefirstvaluation point after we receive the payment. The dealing deadline and valuation point are shown in Important Fund Information.

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INVESTING WITH IPS – BEFORE YOU INVEST 11INVESTING WITH IPS – BEFORE YOU INVEST

• A re-registered ISA keeps its current tax-efficient status, and this will not affect your current tax year’s ISA allowance. You can have only one manager for a stocks and shares ISA in the current tax year, so you must re-register (or transfer) all your current tax year investments relating to that ISA.

• There’s no UK capital gains tax liability on the re-registration of investments.

• After the re-registration has taken place, the income you receive from this fund will show on your statement as coming from Legal & General. The exception to this could be your next payment – if the ex-dividend date for the next payment has already passed, the next payment will show as coming from the previous manager. See the next section ‘Income’ on page 12 for an explanation of ex-dividend dates.

• We may pay a fee of up to 1% of the value re-registered to the company or adviser arranging the re-registration, to cover their administration. This fee is covered by the existing charges on the fund.

• Your existing fund provider may charge a fee for re-registering your existing investments.

• When you re-register an investment to us this will end any relationship you have with the adviser who originally advised you to purchase the investment (except where the same adviser arranges the re-registration).

ChaNgiNg yOur miNd

If you change your mind about re-registering your investments to us, you can usually re-register them back to your original manager. You can speak to your adviser, or call us if you need further details on the re-registration process. Our contact details are on page 2.

You don’t automatically get voting rights on funds you re-register to us. If you currently receive voting rights on the funds you’re re-registering, and you’d like that to continue, you’ll need to contact us. Please see Section B.9 ‘Information provided’ in the Portfolio Investments Terms and Conditions for more information.

WhaT yOu alSO NEEd TO kNOW aBOuT rE-rEgiSTraTiON

• If you are using the services of an adviser, they can tell you about the benefits of re-registration.

They will not:

– advise you on whether the fund is suitable.

– be responsible for deciding whether the original advice was suitable.

– be responsible for the original sale unless they were the original adviser.

• An adviser will be able to advise you only on the range of funds that are on their current fund panel (the funds they currently sell).

• An adviser can’t give you any advice if you wish to invest more into a fund that isn’t on their current fund panel. Legal & General and your adviser will consider you to have the appropriate knowledge and understanding of the fund and its risks to assess whether the investment is appropriate for you.

• You won’t be able to change fund or sell your investment while we arrange the re-registration.

Not all funds can be re-registered. If your fund can’t be re-registered and you wish to invest this money with Legal & General, you’ll have to sell your units or shares back to your current provider. You will then invest with us in one of the funds on our fund panel. If the investment is within an ISA, this can be done as an ISA transfer.

This means:

• If the markets rise while transferring, you can potentially lose income or growth;

• Your existing provider may charge you an exit fee;

• You may have to pay an entry charge when you invest with IPS;

• If held outside an ISA you may be liable to capital gains tax on taking money out or changing funds – see the section on ‘Tax’ on page 19 for more information.

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INVESTING WITH IPS – BEFORE YOU INVEST12 INVESTING WITH IPS – BEFORE YOU INVEST

i havE iNCOmE uNiTS/SharES, WhEN Will yOu Pay mE iNCOmE?

Each fund has its own distribution dates when income is paid to IPS, each relating to an earlier ex-dividend (XD) date, the date at which income is calculated. See the diagram below.

• If you hold units before an XD date (A), income is paid at the following distribution date (A1).

• If you buy units between an XD date and a distribution date (B), income is paid on the distribution date after the following XD date (B1).

The fund manager sends us the income payment on the distribution date and we either reinvest it into more income units or pay it into your IPS Cash Account, depending on what you’ve asked us to do.

Income paid into your IPS Cash Account is either paid out to your Nominated Bank Account on the next pay date, or retained in your IPS Cash Account, depending on your instruction. If you’re receiving income, we pay it into your Nominated Bank Account on the seventh business day of each month.

iNCOmEFunds usually hold assets that pay an income to the fund. This can come from various sources, depending on where the fund invests, including share dividends, income from corporate bonds, or rents from commercial property. For some funds, you can choose to receive this income into your bank or building society account.

TakiNg Or rEiNvESTiNg iNCOmE

TakiNg aN iNCOmE

Some funds offer ‘income’ units/shares that can pay the fund’s income to you. If you choose income units, you can have the income paid to you or retained in your IPS Cash Account.

Where funds you hold offer income units/shares, you can contact us to start or stop receiving an income from your Portfolio Investments. We’ll change your unit/share type if necessary.

rEiNvESTiNg ThE iNCOmE

If you want to reinvest the income, where a fund offers them, you can choose accumulation units. Most funds offer accumulation units/shares, which reinvest any income earned back into the fund as it’s received, increasing the unit/share price. If a fund offers only accumulation units/shares, you can’t take an income.

If a fund offers only income units/shares, you can still choose to reinvest that income instead of having it paid – the income will automatically be used to buy more units/shares in your chosen fund.

Cut-off for when income is calculated

XD date Distribution date

Income paid

XD date Distribution date

Time

A B A1 B1

WhEN fuNdS Pay iNCOmE

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INVESTING WITH IPS – BEFORE YOU INVEST 13INVESTING WITH IPS – BEFORE YOU INVEST

iSa Tax CrEdiTS

Each fund has its own distribution dates when income is paid, each relating to an earlier ex-dividend (XD) date, the date at which income is calculated. See the diagram at the bottom of the previous page.

• We’re able to claim tax back from HM Revenue & Customs (HMRC) on the income paid from some funds when they’re held in an ISA. If you’re receiving an income from one of these funds, we’ll pay you the value of the tax credit along with the income payment, and then claim the tax back.

• If you’re investing any income, any reclaimed tax will be reinvested to buy more units/shares.

For tax information, please see the ‘Tax’ section on page 19.

iPS CaSh aCCOuNT

The IPS Cash Account is used for Portfolio Investments only, to hold money while it’s not invested in a fund. We may also move money through the IPS Cash Account when it’s being added to or withdrawn from your IPS Portfolio Investments.

We give you a unique ‘Platform Account Reference’ that refers to your IPS Cash Account when you first invest with IPS. You can have more than one IPS Cash Account, for example if you have an account solely in your name and another held in joint names.

iNTErEST ON ThE iPS CaSh aCCOuNT

We pay you interest on money held in your IPS Cash Account. You can see details about the interest rates and when interest is paid online at www.onlineips.co.uk/accountrates or by contacting IPS Customer Services.

However, if you pay money directly into the IPS Cash Account by cheque or from your Nominated Bank Account (rather than money being transferred from a Portfolio Investment fund or funds), we won’t pay you interest on any money moved into Portfolio Investment fund(s) or withdrawn before the first interest payment date.

NOmiNaTEd BaNk aCCOuNT

When you apply for a Portfolio Investment, we ask you to confirm a bank or building society account in your name as your ‘Nominated Bank Account’. We’ll pay any income, and any withdrawals you make from your IPS Cash Account, into this account. We can pay withdrawals direct from your account into this Nominated Bank Account.

You can also add money to your IPS Cash Account from your Nominated Bank Account or by cheque – see ‘Adding money to your IPS Cash Account’ on page 26.

Time

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INVESTING WITH IPS – BEFORE YOU INVEST14 INVESTING WITH IPS – BEFORE YOU INVEST

ChargES aNd ExPENSESYou’ll pay charges and expenses on the funds you invest in. These will reduce how much is invested, the performance of your investment and how much you get back, so it’s important to understand the charges and also how funds differ. This section gives more information on these charges and expenses.

You can find the specific details of the charges and expenses in the Key Investor Information Document, and in Important

Fund Information.

TraNSaCTiON ChargES

These are charges you pay when investing in or taking money out of a fund. They’re designed to cover the costs involved, and to try to ensure that all investors pay their fair share of costs. You will always pay these charges, although funds can have different methods of taking the charges. Transaction charges often mean that the price at which you buy and sell units or shares in a fund is different from the quoted unit/share price used for valuations.

Funds have different ways of charging and different levels of charges. When you invest in a fund you’ll pay costs that can include commission, stockbroker fees, fund manager administration, and stamp duty. When you take your money out of a fund, the costs include administration and the costs of the fund selling investments to pay the withdrawal, such as stockbroker fees.

When a fund manager doesn’t pass on the full costs of buying and selling assets through the transaction charges, costs will be paid from the fund. This will reduce the growth potential of the fund.

ENTry (Or iNiTial) ChargE

This is a one-off charge taken each time you add money to most funds. An entry charge is a percentage of the amount you invest. They vary between funds and some may have no charge.

kEy dEfiNiTiONS

Net Asset Value (NAV) – the value of a fund’s investments – the value of a unit or share is the NAV divided by the number of units/shares in issue.

Single pricing – each day, units/ shares in a fund have a single price, based on the NAV, for all investors buying and selling. Any entry charge is then added to this price for investors buying units/shares. A fund manager can add additional charges, a dilution levy or dilution adjustment, to cover dealing costs.

Dual pricing – each day, there are different prices to buy and sell units – investors buy into a fund at a higher ‘offer’ price, or sell at a lower ‘bid’ price. The prices account for costs of dealing. The offer price also includes the entry charge.

Bid/offer spread – the difference between the bid and offer prices on a dual-priced fund.

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INVESTING WITH IPS – BEFORE YOU INVEST 15INVESTING WITH IPS – BEFORE YOU INVEST

Bid/OffEr SPrEad

Some funds are ‘dual priced’. Each day, they have a separate offer (or buying) price, and bid (or selling) price. The difference between the two prices is known as the bid/offer spread, and is made up of:

• the entry charge of the fund;

• the difference between the buying and selling price of the underlying holdings; and

• other costs the fund pays when buying and selling assets, (for example stockbroking commission and stamp duty).

Normally, the prices are calculated on an ‘offer basis’ as follows. The manager starts with the ‘creation’ price, which is the cost of creating a new unit/share. This includes the price of the assets that the fund needs to buy to create a unit/share, plus all other dealing costs that have to be paid. The entry charge is then added to the creation price to give the offer price you can buy at.

The bid price is the ‘cancellation price’ – the cost of cancelling a unit/share, the value of the assets being sold, minus the costs of selling a unit/share. This is the price you can sell at.

Here is a simple example – for ease we have assumed that creation price is 100p. We’ve also assumed that the fund manager applies the maximum bid/offer spread, in this case 6%. The offer price is therefore the maximum offer price allowed.

This method is known as valuing the fund on an ‘offer basis’, and is used when more money is entering the fund than leaving the fund. This is normally the case as the number of units in a fund usually increases over time.

Bid/OffEr SPrEad

Funds with higher dealing costs or investments that are more difficult to buy and sell will tend to have a larger bid/offer spread.

These funds include:

•Fundsinvestinginproperty;

•Fundswithalimitedmarket,suchas certain corporate bonds, smaller companies or emerging markets.

The size of the bid/offer spread can change daily as investment conditions change. A larger bid/offer spread may increase the cost of investing in these funds, and reduce the amount you receive when you withdraw.

Maximum offer price = 105.5p

Creation price = 100p

Entry ch

arge

Bid

/offer sp

read = 6%

Bid price = 99.5p

dual PriCiNg: OffEr BaSiS

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INVESTING WITH IPS – BEFORE YOU INVEST16 INVESTING WITH IPS – BEFORE YOU INVEST

If the opposite is true, and more money is leaving the fund than entering the fund, the manager may decide to price the fund on a ‘bid basis’. This uses the ‘cancellation price’ as the starting point. The bid price is set as the cancellation price, and the entry charge added to this to give the offer price. The prices are calculated as follows (again with creation price at 100p).

Maximum offer price = 105.5p

Offer price = 103.9p

Creation price = 100p

Bid

/offer sp

read = 6%

Bid price = cancellation price = 98p

These examples assume that a manager applies the maximum bid/offer spread, although in practice fund managers don’t usually apply the full spread. Every day, investors are both buying and selling units/shares in the fund. The fund manager matches units from investors leaving the fund and those who are buying the fund, keeping the costs of dealing low as fewer assets need to be bought or sold. This means that the bid/offer spread is smaller as costs passed on to investors are lower.

The bid/offer spread will increase when dealing costs are higher. The ‘offer basis’ example shows fund pricing when there’s an inflow of money from more investors buying than selling.

• When there is a particularly high inflow of money into a fund, the manager may price on an offer basis with a higher offer price, closer to the maximum offer price. A manager will usually have a rule to decide when the inflow is high enough to do this.

• In the same way, when there is an outflow of money, a manager pricing on a bid basis may move the bid price lower, towards the minimum bid price allowed, the cancellation price as shown in the ‘bid basis’ example.

• Managers have the right to alter the bid/offer spread at their discretion, within the maximum limits, and this doesn’t have to be directly related to the costs they incur.

dual PriCiNg: Bid BaSiS

Note that both the bid price and the offer price are lower when pricing on a bid basis.

You can see if a fund is dual priced or single priced in Important Fund

Information.

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INVESTING WITH IPS – BEFORE YOU INVEST 17INVESTING WITH IPS – BEFORE YOU INVEST

diluTiON lEvy/diluTiON adjuSTmENT

Where a fund is ‘single priced’, so buying and selling prices are the same each day, high levels of buying or selling may increase the fund’s dealing costs and affect the value of its assets. This is known as ‘dilution’, and these costs can reduce the performance of the fund.

To protect ongoing investors, by protecting the fund value, the fund manager may do one of two things:

• Charge a dilution levy on certain individual large purchases or sales, to cover the costs of those transactions.

• Make a ‘dilution adjustment’ by changing the price of all units/shares, to cover the extra costs.

On days when more money is being invested than taken out, a dilution adjustment will increase the unit/share price for all deals placed on that day to cover costs of creating the new units and buying assets. On days when more money is being taken out than invested, a dilution adjustment will reduce the unit/share price to cover the costs of selling assets.

The size of the dilution levy or dilution adjustment can vary depending on the costs being covered. For example, if the net inflow or outflow on any day is particularly large, the fund manager could apply a bigger dilution levy or dilution adjustment. Each fund manager will have rules they follow to define when to do this.

ONgOiNg ChargES

These charges are taken from your fund automatically, for as long as you hold it. These charges consist of the annual management charge and the extra expenses, and they’re taken from either the fund’s capital or income.

All states within the European Economic Area provide details of the ongoing charges to help compare expenses of different schemes.

aNNual maNagEmENT ChargE

The fund manager deducts this ongoing charge from the fund. The unit or share price takes account of this charge. It covers the costs of managing the fund, including investment management. It also covers the fee paid to the company that provides our administration and technology services, typically 0.25% of the value of your investment each year.

ExTra ExPENSES

Other costs paid each year (trustee, custodian, registrar, audit, regulator fees).

If a fund invests in other funds, then its extra expenses may include charges and expenses for the other funds.

For some funds the extra expenses are only for the registrar fees, and the other extra expenses come from the annual management charge (AMC).

Details of these charges and where they’re taken from can be found in Important Fund

Information. Together, the AMC and extra expenses are known as the fund’s ‘ongoing charges’, and are shown as a single figure in the

Key Investor Information Document (KIID).

You can see if a fund is dual priced or single priced in Important Fund

Information.

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INVESTING WITH IPS – BEFORE YOU INVEST18 INVESTING WITH IPS – BEFORE YOU INVEST

PErfOrmaNCE fEE

Some funds can also charge a performance fee if the fund exceeds a set performance target, or ‘benchmark’. The benchmark could be a particular interest rate or the performance of similar funds.

Performance fees work differently for different funds:

• Some funds may take a performance fee when the fund’s value is falling, providing that the fund is still outperforming the benchmark.

• Some funds have a ‘high-water mark’, referring to the highest level of outperformance of the benchmark reached by the fund. The fund has to exceed this high-water mark before any further performance fee can be payable – in this way, the manager has to consistently outperform the target/benchmark to earn the performance fee.

A performance fee is taken from the fund automatically, from either income or the capital, and will reduce the amount of the investment returns.

You can see if a fund has a performance fee in the KIID and in Important Fund Information. If a fund has a performance fee, full details of how it is calculated are given in the Fund Prospectus, available from the fund manager or by contacting Customer Services. Our contact details are on page 2.

OThEr COSTS

There may be other costs taken from the fund’s capital:

• Fees relating to the cost of buying and selling assets, including any commission paid to stockbrokers for trading and/or research.

• Interest on borrowing.

We do not show these costs.

There is currently no exit charge from any of the funds we offer.

CaN ChargES ChaNgE?

Charges may change, but we’ll tell you if there’s any increase in the annual management charge or, if you pay monthly, any change to the entry charge.

If these charges change, we’ll do our best to let you know about it at least 30 days before the change is made. It may not always be possible to give you advance notice if, for example, an external fund manager gives us little or no notice of a significant change.

The ‘extra expenses’ figure in Important Fund

Information and the ‘ongoing charges’ figure in the KIID (calculated from the annual management charge and the extra expenses) are updated at different times. The KIID will usually show the most up-to-date charges figures.

ThE COST Of adviCE

• If you go to a financial adviser, they’ll give you details about their costs.

• Where we pay an adviser, this cost is covered by the fund’s charges. The amount we pay depends on the amount you invest and, in the case of monthly payments, for how long payments continue.

• If you invest without advice, there’s no cost for advice. We may, however, pay commission or make a payment to the company that arranged the sale. If we do this, the Commission sheet and the Confirmation note we send you after you invest will confirm the amount paid.

In addition, Legal & General will receive a payment from the fund managers for administration services we provide to them in connection with your investment. If you’d like further details of this fee, you can contact us – our contact details are on page 2.

OThEr SuPPOrT WE OffEr adviSErS

We support and provide advisers and business partners with additional tools and benefits to help you receive a quality service. This may include training, software, seminars and marketing materials. If you want to know more, you can get full details from your adviser.

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INVESTING WITH IPS – BEFORE YOU INVEST 19INVESTING WITH IPS – BEFORE YOU INVEST

TaxYour tax position depends on your personal situation and where your money is invested. All tax assumptions we’ve made in this section are those that currently apply. Tax law does change, which may affect you, so it’s a good idea to get regular advice.

For advice on your personal tax circumstances, contact your financial adviser. Your local tax office can also help answer your questions, or you can contact HM Revenue & Customs.

Tax ON ThE fuNd

UK tax will be paid on the fund as follows.

• Under current UK tax legislation, the fund will not have to pay any corporation tax on UK dividend income or capital gains made from selling assets held in the fund. However, any other income received by the fund can be taxed.

• Interest distributions (paid by funds investing mainly in government and corporate bonds, short-term deposits, or both) are generally paid after income tax is taken, currently at a rate of 20%.

• All dividend distributions (paid by funds investing mainly in shares, property, or both) carry a notional tax credit (tax that is treated as already having been paid), currently at a rate of 10%.

• Stamp Duty Reserve Tax (SDRT) is paid on any funds that invest in UK shares. It is paid out of the assets of the trust. The tax is paid on the value of units or shares that the fund buys back from one investor and sells to another. The amount of SDRT paid is reduced if part of the fund is not invested in UK shares, including any uninvested cash.

OvErSEaS fuNdS

• If you hold units or shares in a fund that has overseas assets, the fund may be liable to pay overseas tax. The fund may not be able to reclaim some or all of this tax from the overseas tax authorities.

See the fund tables in Important Fund

Information to find out if a fund pays interest distributions or dividend distributions.

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INVESTING WITH IPS – BEFORE YOU INVEST20 INVESTING WITH IPS – BEFORE YOU INVEST

PErSONal Tax – uNiT TruSTS aNd OEiCs

• Where you receive interest distributions, income tax at 20% will already have been deducted:

– if you’re a basic rate taxpayer, you’ll have no further income tax to pay;

– if you’re a higher-rate taxpayer, you’ll have to pay additional income tax of 20% of the gross interest distribution;

– if you’re an additional-rate taxpayer, you will have to pay additional income tax of currently 30% of the gross interest distribution;

– if you’re not liable to income tax, you can reclaim some or all of the tax deducted from HM Revenue & Customs;

– if you’re not ordinarily resident (NOR) in the UK, you may be able to receive interest distributions without UK income tax being deducted. To achieve this you’ll need to provide a valid NOR declaration, which can be obtained from HM Revenue & Customs.

• Where you receive dividend distributions:

– if you’re a basic-rate taxpayer, you’re liable only for tax at 10% on the dividends you receive. This is already met by the notional tax credit explained above. You have no further income tax to pay;

– if you’re a higher-rate taxpayer, you’ll have to pay additional income tax of 22.5% of the gross dividend distribution;

– if you’re an additional-rate taxpayer, you will have to pay additional income tax of currently 32.5% of the gross dividend distribution;

– if you’re not liable to income tax, you can’t reclaim the tax credit.

Where your total taxable income, including that from unit trusts and OEICs, exceeds £100,000, any income received from the trust may reduce your personal tax allowance.

You may be liable to capital gains tax on any withdrawal (including switches) from a fund, including moving investments from a unit trust or OEIC into an ISA.

PErSONal Tax – iSaS

Under current legislation, all investments in ISAs are free of personal income and capital gains taxes. Unit trust and OEIC distributions within the ISA will be taxed as follows:

• Interest distributions (paid by funds investing mainly in Gilts and corporate bonds, short-term deposits, or both) are paid after income tax has been deducted at a rate of 20%. When you hold this fund in an ISA, we reclaim this tax for you from HM Revenue & Customs.

• A tax credit is attached to each dividend distribution (paid by funds investing mainly in shares, property or both) as detailed in the ‘Tax on the fund’ section. For ISAs this tax credit isn’t reclaimable.

• If you withdraw some or all of the money in your ISA, you will not be able to replace the amounts withdrawn within the same tax year, unless the amount you wish to invest is within your unused ISA allowance.

• Interest from money held in the Cash Reserve is paid net of a 20% flat rate charge that isn’t reclaimable.

PErSONal Tax – iPS CaSh aCCOuNT

Interest paid is taxable as income. Interest is paid net of tax at 20%, so basic-rate taxpayers have no further tax to pay.

Higher-rate/additional-rate taxpayers may have an additional liability.

Non-taxpayers and 10% savings starting rate taxpayers may be able to reclaim tax. You should contact HM Revenue & Customs to find out more. Its website is www.hmrc.gov.uk, or contact your local tax office.

WhaT if i Pay Tax aBrOad?

Depending on your residency status (non-UK), if you live outside the UK, you may have to pay tax on any income or capital gains you receive. If you need help on tax issues, you should speak to a tax adviser or the relevant authorities in the country concerned.

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INVESTING WITH IPS – BEFORE YOU INVEST 21INVESTING WITH IPS – BEFORE YOU INVEST

ThE Eu SaviNgS dirECTivE ON Tax

• Under the EU Savings Directive, we need to request certain documents to confirm your birth, address and tax status if:

– you’re a new investor after 1 January 2004; and

– you’re investing in certain funds; and

– you’re residing outside the UK, but within a country covered by the Directive;

• If this applies to you, we’ll also have to provide HM Revenue & Customs with details about any payments made to you. This information can then be passed on to the tax authorities of your country of residence.

EqualiSaTiON

When you buy a unit, part of the price includes income already held by the fund. This amount is known as the equalisation amount.

• Equalisation is calculated on an average basis for all new investments in the accounting period. This is the period between two XD dates. The equalisation makes up part of the first distribution.

• At the first distribution date after your purchase, this amount is treated as a return of capital and therefore isn’t taxable.

• When you make a withdrawal, you should take equalisation into account when calculating any capital gains tax liability. This method of distributing the equalisation amount may be different from the method used if you invested directly with the fund manager. This may be to your advantage or disadvantage.

• When withdrawing units, you are not subject to capital gains on the equalisation amount contained in those units or shares.

There’s more information about when distributions are paid in the section ‘I have

income units/shares, when will you pay me

income?’ on page 12.

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INVESTING WITH IPS – AFTER YOU’VE INVESTEDINVESTING WITH IPS – BEFORE YOU INVEST22

ChaNgiNg yOur miNd – yOur righT TO CaNCEl Investing is a big commitment, so you get a 14-day cancellation period. This section explains how it works, and what happens if you want to cancel your investment after your cancellation rights have expired.

lumP Sum iNvESTmENTS

We’ll send you a cancellation notice with your confirmation note each time you make an investment. If you decide to cancel the investment, you have 14 days from receiving the cancellation notice to sign and return the form to us.

mONThly PaymENTS

You can cancel the instruction within 14 days of receiving the letter confirming that we’ve accepted your application for a regular investment. To cancel, please write to Customer Services at the address shown on page 2.

iSa TraNSfErS ONly

We’ll send you a cancellation notice with your confirmation note when we receive the transfer money from the previous ISA manager. If you decide to cancel the investment, you have 14 days from receiving the cancellation notice to sign and return the form to us.

If you decide to cancel an ISA transferred to us, we can’t return the money to the previous ISA manager so we send it to you. You’ll lose the ISA tax benefits on that money. If you don’t want to lose the ISA tax benefits, you may be able to transfer to another ISA manager.

hOW muCh Will i gET BaCk?

When you cancel a lump sum investment, we cancel your units/shares, and refund any entry charge you’ve paid.

You’ll get back the investment value based on the lower of either:

• the original unit/share price; or

• the unit/share price at the next valuation point after we receive your cancellation instruction.

This means if the value of any of your units or shares has dropped, you will not get back the full amount you invested, as the units/shares were worth less when they were cancelled. You will not benefit from any rise in a unit or share price if you cancel.

We cancel each fund individually. The maximum you’ll get back is the amount you invested in that fund. If a fund has fallen in value, you’ll get back less than you invested in that fund. The losses are not offset against gains in any other fund you’re cancelling.

WhaT haPPENS if i dON’T uSE my righT TO CaNCEl WiThiN ThE 14-day PEriOd?

• You’ll be subject to all investment risks as detailed in Investing with IPS and Important

Fund Information.

• You’ll pay the charges detailed in Important

Fund Information.

For ISAs only

• You lose your right to contribute to any other stocks and shares ISA with another manager for the tax year that you made this investment.

• You’ll be unable to replace the payments withdrawn within the same tax year, unless the amount you wish to invest is within your unused ISA allowance.

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23INVESTING WITH IPS – AFTER YOU’VE INVESTEDINVESTING WITH IPS – BEFORE YOU INVEST

afTEr yOu’vE iNvESTEd.

WhaT WE’ll SENd yOu afTEr yOu’vE iNvESTEdall iNvESTmENTS – WhaT WE’ll SENd yOu

• You’ll receive a welcome letter once we’ve accepted your application. We don’t issue unit or share certificates. For lump sum investments you’ll also receive a cancellation rights notice.

• When an investment is made in the names of several investors, correspondence will be sent to the first-named applicant, in their name.

• You can also request a copy of the Fund Manager’s Report and Accounts, or Short Report for each fund where available. This gives you more detail about the fund’s investment strategy and performance. You may also be able to get this information directly from the fund manager’s own website.

• We can also send you a copy of the full Prospectus for the funds that are available. This gives more detail about the fund and its aims.

lumP Sum iNvESTmENTS Or iSa TraNSfErS:

• You’ll receive a confirmation note giving the details of your investment. We’ll send it to you no later than the next working day following the day we receive your money.

mONThly PaymENTS

• If you’re making monthly contributions, we’ll send a Consolidated Confirmation Note to confirm details of your transactions. You’ll receive this six months after your annual statement.

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INVESTING WITH IPS – AFTER YOU’VE INVESTED 24 INVESTING WITH IPS – AFTER YOU’VE INVESTED

kEEPiNg TraCk Of yOur mONEy• We’ll send you a statement and valuation at least once a year.

Our statement is usually sent to you in July each year, and shows your account to the end of May.

• You can ask for a valuation or a copy of your last statement from us if you need one at any time.

• You can monitor and manage your investments online by registering for IPS online servicing.

• You can find the value of your investment yourself by looking up the unit/share price at www.investmentfunds.org.uk and multiplying it by the amount of units/shares you hold.

• Unit/share price information is often quoted by the fund manager in some of the daily papers, although please note that any daily unit and share prices quoted are for the previous working day.

We’re always here to help if you need any more information. All our contact details are on page 2.

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INVESTING WITH IPS – AFTER YOU’VE INVESTED 25INVESTING WITH IPS – AFTER YOU’VE INVESTED

addiNg mONEy aNd ChaNgiNg yOur fuNdSaddiNg mOrE mONEy

You can add more money (top-ups) to your Portfolio Investments (subject to the annual limits, for an ISA) by completing an application form, or securely online with your debit card.

rEgular iNvESTmENTS By dirECT dEBiT

• You can set up a new monthly investment, from just £20 in each fund by completing an application form. It takes 10 business days to set up the Direct Debit before we can take the first payment.

• You can increase or decrease an existing regular investment. The minimum change you can make is £10 for each fund, with a minimum monthly investment of £20 per fund. You can also change the fund(s) you’re investing in. Changes take five working days.

• You can cancel a regular investment by contacting us by telephone or in writing. Cancellations need to be made at least five business days before the next collection date.

ChaNgiNg fuNdS

You can move money from one fund to another available fund by contacting us or by completing the switch section on the transactions form.

If you tell us to move money between funds, we’ll sell the units/shares in the fund(s) you’re moving from and we buy units or shares in the new fund on the following working day. During this time, you may be out of the general market for a period of time and the value of your investment won’t change with any general market movement.

iPS CaSh aCCOuNT aNd CaSh rESErvE – hOldiNg CaSh iN yOur aCCOuNT

It is possible to move money out of a fund and hold it temporarily in cash. You might want to do this to move your money out of the stockmarket for a short time before reinvesting. There are different ways of doing this, depending on whether the money is in an ISA or not.

You need to read the KIID for the fund(s) you’re investing in before you:

• Addmoremoneytoafund.

• Changearegularinvestment.

• Changefundsyou’reinvestedin.

You should also read the current versions of Investing with IPS and Important Fund Information.

If you’re registered for online servicing, you can see these and give instructions securely online.

If you’re not registered for online servicing, you can use a transaction form to give us any of these instructions. You can get a form from Customer Services or from a financial adviser if you have one.

See page 2 for details about registering for our secure online servicing.

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INVESTING WITH IPS – AFTER YOU’VE INVESTED 26 INVESTING WITH IPS – AFTER YOU’VE INVESTED

• Unit trust or OEIC funds (outside an ISA) You can move money from a fund into the IPS Cash Account, where you can hold it pending withdrawal or investment into a fund. You can also add money to the IPS Cash Account pending investment into a fund. See page 13 and the next section for more details about how the IPS Cash Account works.

• Funds in an ISA The Cash Reserve facility allows you to hold cash temporarily while keeping the cash within your stocks and shares ISA. It is not an investment in itself, and is different from a cash ISA.

You may earn interest on money in the Cash Reserve, paid into your ISA on a six-monthly basis. However, the interest rate isn’t meant to be competitive compared to rates from cash deposit accounts. If you withdraw from the Cash Reserve, we won’t pay you the interest earned since the last six-monthly interest allocation date. Interest is taxed as explained on page 19.

It is important that the Cash Reserve is used only as a temporary measure. HMRC guidance and ISA regulations state that money held in the Cash Reserve must be intended for investment into a fund. If HMRC considers that you have held cash in the Cash Reserve for too long, it can tell us to close that part of the ISA and return the money to you. You’ll lose ISA benefits on any money withdrawn in this way.

You can move money between funds and the Cash Reserve in the same way as you change funds, as explained on page 25.

addiNg mONEy TO yOur iPS CaSh aCCOuNT

• By cheque – Send us a cheque and instruction to add the money to your IPS Cash Account, quoting the Platform Account Reference.

• By bank transfer from your Nominated Bank Account

– You can add money, from your Nominated Bank Account only, by sending a payment by bank transfer to:

Sort code: 16-04-00 Account: 31256358

using your Platform Account Reference as the reference for the payment. We’ll put the payment into your Cash Account within one business day of receiving it.

• From your Portfolio Investments – You can withdraw from your investments and tell us to hold the money in your IPS Cash Account. You can do this in writing, by telephone, or online if you’re registered to use online servicing.

If you move money from Portfolio Investments into your IPS Cash Account, we sell the units/shares in the funds you instruct at the next valuation point. The money will be credited to your IPS Cash Account four business days after the last units/shares are priced.

The IPS Cash Account can’t hold funds in an ISA, so if you move money from investments in an ISA to the IPS Cash Account, you’ll lose the ISA benefits on that money. The ‘Cash Reserve’ can be used to retain the ISA benefits on your investments.

PayiNg fOr iNvESTmENTS frOm yOur iPS CaSh aCCOuNT

You can move money you hold in your IPS Cash Account into Portfolio Investments, including buying a new ISA, simply by providing us with an instruction to buy funds and telling us to pay from your IPS Cash Account. You can do this with a transaction form, or online if you’re registered for online servicing. If you’re also adding more money directly into funds by cheque or debit card (online only), this needs to be a separate instruction.

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INVESTING WITH IPS – AFTER YOU’VE INVESTED 27INVESTING WITH IPS – AFTER YOU’VE INVESTED

mOviNg mONEy frOm yOur uNiT TruST/OEiC iNTO aN iSa

You can move money from a fund held outside your ISA into your ISA, free of any entry charge, using a transaction form.

You can get this form by contacting Customer Services, online if you’re registered for online servicing, or from an adviser if you have one.

hOW iT WOrkS

• We’ll sell your units or shares on the day we receive your instruction (or the first working day of the tax year).

• Your money will be held as cash for two days until we get confirmation that we’re receiving the withdrawal proceeds from the fund manager. This always happens two days after the original deal (when we sell your units or shares).

• After the two-day period, we’ll reinvest your money into units or shares in an ISA. If you also want us to switch it into a different fund, you’ll need to tell us in your instruction.

• If the value of the fund rises or falls during these two days, you may not end up with the same amount of units or shares and you won’t benefit from any potential market growth during the two-day transfer period.

• There’s no entry charge, however, if a fund has a bid/offer spread between buying and selling prices (see pages 15-16 ‘Charges and expenses’), you may pay for the difference between the selling and the buying prices and end up with fewer units.

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INVESTING WITH IPS – AFTER YOU’VE INVESTED 28 INVESTING WITH IPS – AFTER YOU’VE INVESTED

iNCOmE aNd WiThdraWalSTakiNg Or rEiNvESTiNg iNCOmE

As explained on page 12, funds usually generate an income.

If a fund has only accumulation units, then this income is automatically reinvested in your investment.

If a fund offers income units, you can choose to receive this income, paid to your bank or building society or retained in your IPS Cash Account. Where the fund offers income units, you can tell us to start or stop paying the income from the fund, or to pay it to a different account in your name. Contact us by telephone or in writing to change how your income is paid. We will change your unit/share type if necessary.

If you want to stop receiving income and have the income reinvested instead, you’ll need to complete a transaction form.

TakiNg mONEy OuT

You can take money out by selling units or shares from your investment, from at least £20 and up to your total investment value.

• You can do this by telephone or letter. You can also take money out of a fund(s) and pay it into the IPS Cash Account online if you’re registered for online servicing. Please note you’ll need to send a letter to confirm a telephone withdrawal or to pay money from the IPS Cash Account to your bank account.

• When we’ve accepted your instruction, we’ll sell the units/shares at the valuation point that comes after the next dealing deadline. Units/shares are sold at the next valuation point, so you’ll not know what the final unit or share price you receive is until after the sale.

• The money can be paid straight to your bank or building society account, or can be paid to your IPS Cash Account as explained on page 26.

• We’ll usually pay you within five business days after the valuation point of the last fund that has been sold. In some cases we may have to delay payment to you in order to check the instruction received and verify your signature.

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INVESTING WITH IPS – AFTER YOU’VE INVESTED 29INVESTING WITH IPS – AFTER YOU’VE INVESTED

WhaT haPPENS TO yOur iNvESTmENT if yOu diE

uNiT TruSTS aNd OEiCs

• Your investment account doesn’t automatically close. The money remains invested in the chosen funds and will continue to move with the market.

For single holdings, your personal representative(s) can:

a) request a full withdrawal and payment to be made to the named beneficiary(ies); or

b) request a transfer of the holding, to the named beneficiary(ies) and continue the investment.

For joint holdings, the investment continues in the name of the survivor(s).

iSas

The tax benefits of your ISA account automatically stop and your money remains invested in units or shares until your estate is settled. Your personal representatives can then:

a) request a full withdrawal and payment to be made to the named beneficiary(ies); or

b) request a transfer of the holding – outside an ISA – to the named beneficiary(ies) and continue the investment.

Any tax credits received after the date of your death will be deducted from the proceeds of the sale and paid direct to HM Revenue & Customs.

CaSh hOldiNgS

Any money held in client money accounts, including the IPS Cash Account and the Cash Reserve, will be transferred or paid out to the beneficiary(ies) when the estate is settled.

TakiNg mONEy OuT Of aN iSa

If you take out some or all of your ISA investment, you won’t be able to make any further payments to that ISA in the same tax year, unless you have some unused allowance.

If you take out all of your ISA investment in the same tax year as you invested, you won’t be able to take out a stocks and shares ISA with another ISA manager in the same tax year.

TakiNg mONEy OuT frOm yOur iPS CaSh aCCOuNT

You can withdraw from your IPS Cash Account by writing to our Customer Services Address. We’ll release the money to your Nominated Bank Account within two business days of receiving the withdrawal instruction.

TraNSfErriNg aN iSa TO aNOThEr maNagEr

To transfer your ISA to another company, we need notification from the new manager in writing. You should contact them to arrange the transfer of the ISA.

Depending on the type of instruction we receive from the new manager, we’ll either re-register your existing investment to them, or sell the units or shares held within your investment with us and transfer the cash value to them.

Other managers may have a minimum they’ll accept, so you should check that first. As with a withdrawal, the minimum you can transfer out is £20.

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INVESTING WITH IPS – YOUR PEACE OF MIND30 INVESTING WITH IPS – YOUR PEACE OF MIND

yOur PEaCE Of miNd.

PrOmOTEr, admiNiSTraTOr aNd iSa maNagEr

Legal & General (Portfolio Management Services) Limited. Registered in England No. 2457525.

We are a member of the Investment Management Association.

Our registered office

One Coleman Street

London

EC2R 5AA

Our rEgulaTOr

We are authorised and regulated by the Financial Services Authority. We are on its register under the following number: Legal & General (Portfolio Management Services) Limited 146786.

You can check this on the FSA Register at www.fsa.gov.uk or by contacting it on 0845 606 1234

The Financial Services Authority

25 The North Colonnade

Canary Wharf

London

E14 5HS

WhO lOOkS afTEr my iNvESTmENT?Legal & General Investor Portfolio Service (IPS) is part of Legal & General (Portfolio Management Services), Limited part of the Legal & General group of companies.

When you instruct us to buy into a fund, we arrange to buy units or shares with the fund management company on your behalf. All units or shares bought using this brochure are registered in the name of Legal & General, or in the name of a nominee we appoint, and held in an account on your behalf.

Any money not invested in a fund is held in a client money account.

See ‘Where will your money be held and how secure

is it?’ on page 32 for more information.

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INVESTING WITH IPS – YOUR PEACE OF MIND 31INVESTING WITH IPS – YOUR PEACE OF MIND

makiNg a COmPlaiNTIf you have a complaint about any part of our service, or you’d like us to send you a copy of our internal complaint handling procedure, please contact us by telephone or in writing. Our contact details are on page 2.

Any complaint we cannot settle can be referred to:

The Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR

Making a complaint will not affect your right to take legal proceedings. We’ll tell you about your rights when we answer your complaint.

hOW WE TrEaT diffErENT TyPES Of CuSTOmErThe Financial Services Authority (our regulator) requires us to put our customers into groups so that we can treat them according to their level of knowledge about investments. These groups are:

• retail client;

• professional client; and

• eligible counterparty.

We treat all customers who invest in products from this brochure as retail clients. This gives you the greatest level of protection under the regulations and ensures you get full information about any products you buy.

CaN i BE CaTEgOriSEd aS a PrOfESSiONal CliENT Or EligiBlE COuNTErParTy?

• You can choose to be categorised as a professional client or an eligible counterparty, but this means you receive less information about our products and services.

• Also, you wouldn’t be entitled to receive a suitability report or appropriateness assessment in cases where they would be required for retail clients.

i’m a PrOfESSiONal CliENT Or aN EligiBlE COuNTErParTy. CaN i ChOOSE TO BE CaTEgOriSEd aS a rETail CliENT?

• Yes, if you’re a professional client or eligible counterparty you can ask to be categorised as a retail client.

• However, this doesn’t necessarily mean you can refer any complaints to the Financial Ombudsman Service, and you may not be eligible for compensation under the Financial Services Compensation Scheme.

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INVESTING WITH IPS – YOUR PEACE OF MIND32 INVESTING WITH IPS – YOUR PEACE OF MIND

Before we invest your money or when you’re taking money out

While your money is invested in the fund(s)

Where is my money held and is it secure?

• Weholdanymoneyinaclientmoneybank

account separate from our own money. Money held in the Cash Reserve and the IPS Cash Account is also held in this way in a client money account.

• Ifthebankthatprovidestheclientmoneybank account cannot pay us this money, you may not receive all of your money back. We are not responsible to you if the bank that provides the client money bank account does not pay this money back.

• Ifthebankprovidingtheclientmoneybank account is unable to pay your money back, you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS). Please see page 33 for more information.

• Yourmoneyisinvestedinthefund(s)

with the fund manager(s) you’ve chosen.

• Thefundmanager(the‘unittrustmanager’,or ‘Authorised Corporate Director’ (ACD) for OEICs) appoints a trustee who is responsible for looking after the assets of a fund. The trustee appoints a custodian to do this for them. The custodian will hold the assets in the name of the fund.

• Neitherthetrusteeordepositarynortheunit trust manager or ACD can arrange for these assets to be transferred into their own name.

• Therefore,thefund’sassetsaresafeevenif the trustee or the unit trust manager/ACD becomes insolvent.

• Ifthetrustee/ACDbecameinsolvent, the fund would appoint a new one.

• Iftheunittrustmanager/ACDbecame

insolvent, the trustee/depositary would appoint a new one.

Is my money secure if Legal & General becomes insolvent?

• Yes,becauseweholdyourmoneyinaclient

money bank account separate from our own money, if we became insolvent, your money would be safe.

• Ifforanyreasonyourmoneyisn’theldin a client money bank account and we became insolvent, you may be entitled to compensation, also under the FSCS. Please see below for more information.

• Yes,ifyou’reinvestedinaunittrust

managed by Legal & General, and we became insolvent, the trustee would appoint a new unit trust manager.

Is my money secure if the fund manager becomes insolvent?

• Yes,asexplainedabove,yourmoneyis

held in a client money bank account so your money would be safe.

• Ifforanyreasonyourmoneyisn’theldin

a client money bank account and a fund manager became insolvent, you may be entitled to compensation, under the FSCS. Please see below for more information.

• Yes,becauseifafundmanagerbecame

insolvent, the trustee/depositary would appoint a new unit trust manager or ACD.

WhErE Will my mONEy BE hEld aNd hOW SECurE iS iT?Different arrangements apply:

• before we invest your money or when you’re taking money out; and

• while your money is invested in the fund(s).

The table below shows these arrangements and the protection that applies in each case.

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INVESTING WITH IPS – YOUR PEACE OF MIND 33INVESTING WITH IPS – YOUR PEACE OF MIND

ThE fiNaNCial SErviCES COmPENSaTiON SChEmE (fSCS)mONEy hEld iN a CliENT mONEy BaNk aCCOuNT

• Most depositors, including individuals and small businesses, are covered by the FSCS.

• The FSCS covers the first £85,000 of each customer’s claim against a bank or building society.

• Any money you hold in other accounts with the bank providing the client money bank account would count towards this limit.

• Some banks and building societies operate under a number of trading names. The total FSCS compensation claim will include claims against all these trading names.

mONEy hEld OuTSidE a CliENT mONEy BaNk aCCOuNT

• The FSCS covers most types of investment business for the first £50,000 of each customer’s claim.

• Your ability to claim from the FSCS, and the amount you may be entitled to, will depend on the specific circumstances of your claim.

• You can find out more about the Financial Services Compensation Scheme (including amounts and eligibility to claim) by visiting its website www.fscs.org.uk or calling 0800 678 1100.

CONfliCTS Of iNTErEST

Conflicts of interest may arise between you and us, our employees, our associated companies or our representatives. To ensure that we treat investors consistently and fairly, we are required to have a policy on how to identify and manage these conflicts.

A summary of our policy is detailed below. A copy of the full policy is available on request from the address on page 2.

We:

(a) will consider the interests of all our customers and treat them fairly;

(b) will manage conflicts of interest fairly to ensure that all customers are treated consistently and to prevent any conflict of interest from giving rise to a material risk of damage to the interests of our customers;

(c) have in place procedures to ensure that staff identify and report any new conflicts;

(d) will keep a written record of any conflicts or potential conflicts;

(e) if appropriate, will disclose any relevant conflict to a customer before undertaking business with that customer;

(f) will carry out an annual review to identify any new conflicts; and

(g) will ensure new business developments identify any new conflicts of interest.

This policy applies to any third party to whom we delegate any of our functions.

Our righT TO TErmiNaTE yOur aCCOuNT

We have the right to terminate your Portfolio Investments account with 30 days’ notice. See Clause B.17 in the Portfolio Terms and Conditions for more information about our right to terminate.

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INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS34 INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS

This section contains the IPS Terms and Conditions for Investor Portfolio Service (IPS). These IPS Terms and Conditions are separate from, and should be read alongside, the Product Terms and Conditions for the relevant IPS Product(s) that you hold.

IPS currently offers the following Products:

• Portfolio Investments (Unit trusts, OEICs and ISAs),

• Portfolio Bond (IPS), and

• Portfolio Plus Self Invested Personal Pension (PPSIPP).

These IPS Terms and Conditions, together with your Product Terms and Conditions, set out the legal agreement that applies between you and us in relation to your investment through IPS.

ThE iNvESTOr POrTfOliO SErviCE TErmS aNd CONdiTiONS.

The IPS Terms and Conditions, which are governed by English law, shall apply to your Account as soon as we accept your correctly completed Application, and payment where required, for a Product. The information contained in these IPS Terms and Conditions and the Application is based on our understanding of current legislation and HM Revenue & Customs practice and could be affected by changes in legislation and practice.

In the event of any conflict between the IPS Terms and Conditions and your Product Terms and Conditions, the Product Terms and Conditions will always prevail.

In the event of any conflict between the ISA Regulations or any other Regulations or legislation relating to your Account, and the IPS Terms and Conditions, the ISA Regulations and/or the other Regulations/legislation will always prevail.

The IPS Terms and Conditions and all communications will only be available in English. All communications you receive from us will be by letter, telephone or email unless we agree with you otherwise.

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INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS 35INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS

a.1 dEfiNiTiONS

These definitions refer to these IPS Terms and Conditions.

“Account” The account that we open in your name to record investments that you make through IPS.

“Adviser” A person authorised by the FSA to conduct investment business, including acting as a financial adviser.

“Application” An application, including an application form, completed by you or on your behalf to invest in the Account through a Portfolio Investment, Portfolio Bond or a PPSIPP, or to add money to the IPS Cash Account.

“Assets” Investments, income, interest, cash balances and any other rights and entitlements from time to time held within your Account.

“Bank” The bank or banks appointed from time to time by IPS to provide banking services to IPS. Full and up-to-date details of the banks with which money is held can be obtained by writing to our Customer Services Address, or online at www.onlineips.co.uk/accountrates

“Business Day” Any day when the London Stock Exchange is open for business.

“Cash Reserve” A Client Money Account within your ISA used solely for money destined for eventual investment in one or more of the Funds offered by IPS.

“Client Money Account” A current or deposit account that is in our name at a bank, but includes in its title an appropriate description to indicate that it holds only clients’ money in accordance with our regulatory responsibility and is used to hold the money of one or more clients.

“Client Reference” The number assigned to the account we hold in your name to record investments you make through IPS.

“Customer Service Address” The contact address for sending Portfolio Investment and Portfolio Bond instructions, in case of enquiries and complaints.

“IPS Cash Account” Client Money Account(s) that can be used to process or hold Monies to be invested in Portfolio Investments, or paid out to you (such as a withdrawal or income payment). The IPS Cash Account is specific to Portfolio Investments.

“IPS Terms and Conditions” These Terms and Conditions, referring to the service offered by IPS.

“ISA” Your stocks and shares Individual Savings Account as defined by HMRC.

“Monies” Any client money held within a Client Money Account, or the IPS Cash Account.

“Nominated Bank Account” A UK bank or building society account of yours which is associated with your IPS Account as in Section A.3.

“Payment” Money being added to or withdrawn from a Portfolio Investment or the IPS Cash Account.

“Platform Account Reference” The number assigned to your IPS Cash Account used for payments into and out of the IPS Cash Account. If you hold Portfolio Investments as joint holdings or with a reference (“designation”) you may have more than one IPS Cash Account and therefore more than one Platform Account Reference. Please see the relevant Product Documents for further details.

“Portfolio Bond” The Legal & General Portfolio Bond (IPS). A single-premium life assurance contract made up of a series of identical policies, used for investment purposes. See the Portfolio Bond (IPS) Product Guide for more information.

“Portfolio Investments” Our collective investment offering, made up of unit trust and OEIC investments, including these investments held within an ISA.

“PPSIPP” Portfolio Plus Self-Invested Personal Pension – the pension product available through IPS.

“Product” An investment offered through IPS as listed in Section A.2.

“Product Documents” The literature provided to you for each Product you apply for, as amended from time to time. These documents are listed in the Product Terms and Conditions for each product.

“Product Terms and Conditions” The Terms and Conditions for a specific IPS Product (as opposed to these IPS Terms and Conditions).

ThE iNvESTOr POrTfOliO SErviCE TErmS aNd CONdiTiONS.

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INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS36 INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS

“Regulations” The relevant Regulations that apply to your investments, as specified in the relevant Product Documents.

“We”, “us” or “our” Refers to the Legal & General Group and the companies within it. IPS services and investment products are provided by Legal & General (Portfolio Management Services) Limited and Legal & General Assurance Society Limited.

“Written” or “in writing” An instruction that you have signed.

“You” and “your” The Account holder(s), including the individual(s), who has applied to open an Account under these IPS Terms and Conditions. Where appropriate this may include any company or other corporate body, a trust and the trustees.

a.2 Our rOlE

a.2.1 gENEral

IPS allows you to invest in a range of Products. It can also make it easier for you to keep track of and manage your investments. You can currently invest in the following Products: Portfolio Investments; Portfolio Bonds; and a Portfolio Plus Self-Invested Personal Pension (PPSIPP). IPS offers services by post, telephone, and online where available.

a.2.2 addrESS

Correspondence about our service should be sent to the Customer Service Address:

For postal instructions and enquiries about Portfolio Investments and Portfolio Bond:

Investor Portfolio Service PO Box 1112 Chelmsford CM99 2UX

For postal instructions and enquiries about PPSIPPs:

Legal & General SIPP Service Centre City Park The Droveway Hove East Sussex BN3 7PY

Or such other addresses that we tell you about after acceptance. Email addresses and telephone numbers for contacting us are in the Product Documents applicable to your Product(s).

a.2.3 iNfOrmaTiON WE rEquirE

You must give us all information, which we reasonably request to manage your Account. You agree to inform us, without delay, of any change in your circumstances or status, including in particular any change of address, name, bank account or residency status.

In certain circumstances we may need to contact you to obtain more information regarding your investment. Where we do not have an up-to-date address for you, we may make enquiries to identify your new address. In order to make these enquiries, we may need to share your details with trusted external parties.

To protect you and us from financial crime, we may need to confirm your identity from time to time. We may do this by using reference agencies to search sources of information relating to you (an identity search). This will not affect your credit rating. If this fails, we may ask you for documents to confirm your identity. We may require verification of your bank details for certain transactions.

a.2.4 aCCOuNT rEgulaTiON

Legal & General (Portfolio Management Services) Limited and Legal & General Assurance Society Limited are authorised and regulated by the Financial Services Authority. The relevant FSA registration number is in the Product Documents applicable to your Product. You can check this on the FSA Register at www.fsa.gov.uk or by contacting the FSA on 0845 606 1234. Its address is:

Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS

a.3 OPENiNg aN aCCOuNT WiTh iPS

a.3.1 aCCEPTaNCE

We will set up your Account when we receive your first fully completed Application and payment (where required) for a Product. We will inform you, or your Adviser if you have notified us that you have one, promptly if there are any problems with your Application or, alternatively, that your Application has been accepted. You cannot set up an Account solely with a Payment into the IPS Cash Account. Your original investment must include an IPS Product.

a.3.2 yOur righT TO CaNCEl

See the Product Terms and Conditions for details about specific Cancellation Rights for those Products. If you change your mind about investing with IPS, you can cancel or close the Product(s) that you’ve bought and this will also close your IPS Account. See Section A.11.2 Termination for more information.

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a.4 iPS CliENT mONEy aCCOuNTS

a.4.1 CliENT mONEy aCCOuNTS – gENEral

We deposit all Monies that we hold for you in one or more Client Money Accounts that we maintain specifically for you or for our clients generally. We do not currently pay interest on Monies held in the Client Money Accounts that we maintain for our clients, apart from Monies in the IPS Cash Account, the Cash Reserve, and the member’s SIPP bank account. We keep all Monies that we hold in a Client Money Account separate from our own money and hold it under trust with the Bank.

a.4.2 iPS CaSh aCCOuNT – POrTfOliO

iNvESTmENTS ONly

When you open an Account, we also open an IPS Cash Account for you, and provide you with a Platform Account Reference to manage the Account. The IPS Cash Account is a Client Money Account maintained specifically for you.

Monies for investment into Portfolio Investments can be made through the IPS Cash Account. The IPS Cash Account can also hold Monies from Payments and withdrawals from your Portfolio Investments, and Payments can be sent from the IPS Cash Account to your Nominated Bank Account. You can also make Payments into the IPS Cash Account by cheque or by bank transfer from your Nominated Bank Account, using your Platform Account Reference.

Please note that withdrawing from an ISA into the IPS Cash Account will mean losing the ISA tax benefits on that money.

a.4.3 OThEr CliENT mONEy aCCOuNTS

There are also other Client Money Accounts. There’s more information about these in the relevant Product Documents.

Cash Reserve – Portfolio Investments ISAs only. If you invest in an ISA, the Cash Reserve will be available to you. The Cash Reserve allows you to move cash from a fund and place it into the Cash Reserve without losing the ISA status on the cash being moved. Money can be held in the Cash Reserve only temporarily and this money must be destined for investment back into a fund within your ISA.

Member’s SIPP bank account – PPSIPPs only within the PPSIPP, when you first self-invest or take income withdrawal, you will have a member’s SIPP bank account set up with a Bank. This is used to pay any charges and fees, hold cash to facilitate buying and selling self-invested assets and to facilitate income withdrawal payments in relation to the PPSIPP.

a.4.4 iNTErEST

The rate of interest payable by us on the IPS Cash Account, the Cash Reserve, and the member’s SIPP bank account will fluctuate. Details of the current interest rates can be found at www.onlineips.co.uk/accountrates or from IPS Customer Services.

a.4.5 TaxaTiON iN rElaTiON TO

yOur aCCOuNT iPS

Cash Account. Interest received on the IPS Cash Account is taxable as income. It is paid net of 20% tax, so basic-rate taxpayers have no further tax to pay on it. Higher-rate taxpayers may have an additional tax liability. Tax treatment will depend on your individual circumstances and may change in the future. Non-taxpayers and individuals who qualify for the 10% starting tax rate on savings may be able to reclaim tax. More information and the relevant forms are available from your tax office or from the HM Revenue & Customs website www.hmrc.gov.uk

Cash Reserve and member’s SIPP bank account. Interest received on the Cash Reserve and the member’s SIPP bank account is not currently taxable as income. However, interest received on the Cash Reserve is subject to an HMRC flat-rate charge of 20%.

a.4.6 NOmiNaTEd BaNk aCCOuNT

In order to receive income payments from Portfolio Investments, you must give us details of your Nominated Bank Account. Your Nominated Bank Account is a UK bank or building society account (held with a UK branch) of which you are a named holder. We will ask you for details of your Nominated Bank Account when you first apply for Portfolio Investments.

You can have only one Nominated Bank Account, for Payments to and from your IPS Cash Account, at any given time. It must be a bank or building society account held with a branch in the UK and held in your name.

Withdrawal Payments from Portfolio Investments and Payments from Portfolio Bonds and PPSIPP can be made to different bank details from your Nominated Bank Account. Please see the relevant Product Documents for more details.

Once we have verified your Nominated Bank Account, it can also be used to transfer Monies to and from your IPS Cash Account. If you’ve chosen to receive income from any of your Portfolio Investments, the income Payments will be paid to your IPS Cash Account and sent to your Nominated Bank Account.

a.2.3 iNfOrmaTiON WE rEquirE

You must give us all information, which we reasonably request to manage your Account. You agree to inform us, without delay, of any change in your circumstances or status, including in particular any change of address, name, bank account or residency status.

In certain circumstances we may need to contact you to obtain more information regarding your investment. Where we do not have an up-to-date address for you, we may make enquiries to identify your new address. In order to make these enquiries, we may need to share your details with trusted external parties.

To protect you and us from financial crime, we may need to confirm your identity from time to time. We may do this by using reference agencies to search sources of information relating to you (an identity search). This will not affect your credit rating. If this fails, we may ask you for documents to confirm your identity. We may require verification of your bank details for certain transactions.

a.2.4 aCCOuNT rEgulaTiON

Legal & General (Portfolio Management Services) Limited and Legal & General Assurance Society Limited are authorised and regulated by the Financial Services Authority. The relevant FSA registration number is in the Product Documents applicable to your Product. You can check this on the FSA Register at www.fsa.gov.uk or by contacting the FSA on 0845 606 1234. Its address is:

Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS

a.3 OPENiNg aN aCCOuNT WiTh iPS

a.3.1 aCCEPTaNCE

We will set up your Account when we receive your first fully completed Application and payment (where required) for a Product. We will inform you, or your Adviser if you have notified us that you have one, promptly if there are any problems with your Application or, alternatively, that your Application has been accepted. You cannot set up an Account solely with a Payment into the IPS Cash Account. Your original investment must include an IPS Product.

a.3.2 yOur righT TO CaNCEl

See the Product Terms and Conditions for details about specific Cancellation Rights for those Products. If you change your mind about investing with IPS, you can cancel or close the Product(s) that you’ve bought and this will also close your IPS Account. See Section A.11.2 Termination for more information.

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You can instruct us at any time to change your Nominated Bank Account. You can provide us with new bank or building society account details to replace your Nominated Bank Account. Subject to completing any necessary checks, we will make this change, although payments due to be paid to you within that period may still be sent to your previous Nominated Bank Account.

a.4.7 dEPOSiT PrOTECTiON

IPS maintains its Client Money Accounts with one or more selected leading banking institutions. If you would like any more information about the banks we’re using, you can see this information at www.onlineips.co.uk/accountrates, or by writing to the Customer Service Address. We can change, add and remove banking providers at our discretion.

If the Bank that provides this Client Money Account cannot pay us that money, you may not receive all your money back. We are not responsible to you if the Bank that provides this Client Money Account does not pay this money back.

If the Bank providing the Client Money Account is unable to pay your money back, you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS). Any claim is currently limited by the FSCS to the first £85,000 you hold with that Bank or building society, and so any money you hold in other accounts with that Bank would count towards this limit. This limit is subject to change – please see www.fscs.org.uk for details. This refers to money held in a Client Money Account, not when invested within a Product. Please see the Product Documents for your relevant Product for information about FSCS compensation on investments.

a.4.8 gOOd diSChargE

We will pay any amounts owing to you under or in connection with these IPS Terms and Conditions into your Nominated Bank Account. Any such payment will be a good discharge of our obligation to pay the relevant amount.

a.4.9 dOrmaNT BalaNCES

If there have been no transactions in a Client Money Account that we maintain for you, for a period of at least six years (other than routine charges, interest and similar items), we may write to you, and/or your Adviser if you have one and we have their details, at your last-known addresses, informing you of our intention to cease treating that balance as client money. You will have 28 days to

make a claim for the Monies held on your behalf, after which they will lose the protection of being held in a separate Client Money Account. However, we will still pay what is due to you if you subsequently claim payment. We will make and retain records of all balances released from Client Money Accounts.

a.5 OWNErShiP Of PrOduCTS

IPS is a service that brings the administration of the Products together in one place. IPS holds Portfolio Investments on your behalf through a Nominee. This means the way in which you hold your Portfolio Investments through IPS is different from the relationship you would have with the fund manager if you held the investments directly. Where your Product is held through a Nominee, you remain the beneficial owner of the assets. Portfolio Bonds and PPSIPPs are held directly by you but you can invest in funds managed by companies other than Legal & General – please see your Product Guide or Member’s booklet for more information.

a.6 dOCumENTaTiON

a.6.1 aCCOuNT CONfirmaTiON

Once your Account has been set up, we will send you a letter confirming your Client Reference and Platform Account Reference.

a.6.2 iNfOrmaTiON ON yOur iNvESTmENTS

You can contact us at any time for information on your investments, such as valuations and illustrations. You can also contact your Adviser, if you have one, for information. You can also register for online servicing and get online access to statements, valuations and historic correspondence that’s been sent to you. Our Customer Service Address for information and registering for online servicing can be found in Section A.2.2 of these IPS Terms and Conditions.

a.6.3 aCkNOWlEdgiNg iPS

CaSh aCCOuNT iNSTruCTiONS

When you add or withdraw Monies from the IPS Cash Account, we send you a letter confirming your transaction.

a.6.4 iPS CaSh aCCOuNT

Tax dOCumENTaTiON

Your annual statement will confirm the tax you’ve paid in that year. A tax voucher will also be sent to you with your annual statement. If you’re not due to receive a statement but you are due a tax voucher, we will also send you a certificate showing the tax you’ve paid.

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a.6.5 STaTEmENTS

We will send you an annual statement which will show a valuation and all the transactions on the investments in your Account for the previous 12 months. Details of the exact statement date are available from us by writing to the Customer Service Address.

a.7 makiNg PaymENTS iNTO ThE iPS CaSh aCCOuNT

You can add money to the IPS Cash Account at the same time as or after you open an IPS Account and an IPS Product. You can add money by cheque or bank transfer from your Nominated Bank Account. You can also choose to hold money withdrawn from Portfolio Investments in the IPS Cash Account.

a.7.1 By ChEquE

You can add to your IPS Cash Account by sending us an instruction and cheque, quoting your Platform Account Reference as the reference.

a.7.2 By BaNk TraNSfEr frOm yOur

NOmiNaTEd BaNk aCCOuNT

You can add money to your IPS Cash Account by bank transfer to sort code 16-04-00, account number 31256358, using your Platform Account Reference as the reference for the payment. We will process your transfer instruction within one Business Day of receipt. Where you provide a Payment with an instruction to hold this in the IPS Cash Account, we will put this into the IPS Cash Account no later than the Business Day after we receive the instruction and Payment.

a.7.3 frOm yOur POrTfOliO iNvESTmENTS

When you provide us with an instruction to withdraw from your Portfolio Investments, you can instruct us to pay this into your IPS Cash Account instead of paying it into your bank account. We will hold the Monies in the IPS Cash Account until you withdraw the Monies to your bank account or invest in a Fund(s).

a.8 WiThdraWalS frOm yOur iPS CaSh aCCOuNT

You can withdraw Monies from your IPS Cash Account by writing to the Customer Service Address. We require the signatures of all joint holders before we can process the withdrawal.

If you withdraw cash held in the IPS Cash Account, or if the IPS Cash Account is closed by us, the proceeds will be sent to your Nominated Bank Account within two Business Days of the date we receive the withdrawal instruction,

or Portfolio Account closure. We may delay payment if we reasonably believe that we should delay payment for your protection or as required by law, or where this is necessary in order to verify your identity. This means that sometimes, payment may be made outside the period outlined above. Where a withdrawal is made shortly after a Payment is made, the proceeds will be paid only once we are assured of cleared funds in respect of that Payment. This will be within 14 days of the date we receive the withdrawal instruction.

Where we have good reason to query a signature or the validity of an instruction, we will not pay you until the query has been resolved to our reasonable satisfaction. While we are waiting for any such query to be resolved, the proceeds will remain in the IPS Cash Account. We may deduct an amount which we reasonably estimate will be enough for us to meet any tax liability for which we must account to HM Revenue & Customs for you under the Regulations, where applicable. We may delay paying any sale proceeds and cash balances until we know that all Payments made by you have cleared and we have received all amounts which you owe to us.

You may also make a withdrawal from your Account depending on the type(s) of products you hold. Please refer to the relevant Product Documents for more information.

a.9 iPS aCCOuNT PrOCEdurE fOllOWiNg dEaTh

The IPS Account will close once the Products and any Monies held in the IPS Cash Account (where relevant) have closed or are no longer associated with the Account, following the procedures detailed in the Product Documents. For Monies held in the IPS Cash Account in more than one name, the Account will continue in the name(s) of the surviving investor(s).

For Monies held in your sole name, when we have all the documentation we reasonably need to establish proof of death and proof of entitlement in order to finalise the arrangements, on instruction from the executor we will either:

• transfer the Monies to an IPS Cash Account(s) in the name(s) of the beneficiaries, and/or

• withdraw the Monies within one working day of the instruction and send the proceeds to your personal representatives within two working days.

Any transfers and/or payments to the beneficiaries will be subject to any deduction for tax liability as explained in Section A.4.5 above.

make a claim for the Monies held on your behalf, after which they will lose the protection of being held in a separate Client Money Account. However, we will still pay what is due to you if you subsequently claim payment. We will make and retain records of all balances released from Client Money Accounts.

a.5 OWNErShiP Of PrOduCTS

IPS is a service that brings the administration of the Products together in one place. IPS holds Portfolio Investments on your behalf through a Nominee. This means the way in which you hold your Portfolio Investments through IPS is different from the relationship you would have with the fund manager if you held the investments directly. Where your Product is held through a Nominee, you remain the beneficial owner of the assets. Portfolio Bonds and PPSIPPs are held directly by you but you can invest in funds managed by companies other than Legal & General – please see your Product Guide or Member’s booklet for more information.

a.6 dOCumENTaTiON

a.6.1 aCCOuNT CONfirmaTiON

Once your Account has been set up, we will send you a letter confirming your Client Reference and Platform Account Reference.

a.6.2 iNfOrmaTiON ON yOur iNvESTmENTS

You can contact us at any time for information on your investments, such as valuations and illustrations. You can also contact your Adviser, if you have one, for information. You can also register for online servicing and get online access to statements, valuations and historic correspondence that’s been sent to you. Our Customer Service Address for information and registering for online servicing can be found in Section A.2.2 of these IPS Terms and Conditions.

a.6.3 aCkNOWlEdgiNg iPS

CaSh aCCOuNT iNSTruCTiONS

When you add or withdraw Monies from the IPS Cash Account, we send you a letter confirming your transaction.

a.6.4 iPS CaSh aCCOuNT

Tax dOCumENTaTiON

Your annual statement will confirm the tax you’ve paid in that year. A tax voucher will also be sent to you with your annual statement. If you’re not due to receive a statement but you are due a tax voucher, we will also send you a certificate showing the tax you’ve paid.

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If your personal representatives require an Account to be opened with us in another investor’s name, we may require verification of identity from the new Account holder. The payment of any proceeds or the setting-up of any new Account may also be delayed until after we have verified the identity of the executor. These IPS Terms and Conditions shall be binding on your personal representatives.

a.10 fEES, ChargES aNd ExPENSES

The costs of investing differs between Products, and you should see the applicable Product Documents for details of any fees, charges and expenses, and any more information about payments we receive for our own benefit. There is no charge for having or using the IPS Cash Account.

a.11 variaTiON, TErmiNaTiON aNd amENdmENT Of TErmS

a.11.1 ChaNgES TO ThESE TErmS

Over time, circumstances can change and this may mean (when we have a valid reason) we need to change these IPS Terms and Conditions and/or your Product Terms and Conditions.

For example:

(a) Our investment rights and powers are removed or restricted.

(b) There are changes to the way we are taxed.

(c) There are changes to the way you are taxed.

(d) Exceptional circumstances make it impossible for us to do what we say we will.

(e) There are changes in laws, regulations, consumer standards, and so on.

(f) We need to respond to changes in tax rates, interest rates or the costs of providing the Account.

(g) We add, change, or remove features of our Investor Portfolio Service offering. Any changes must meet the Regulations (if appropriate) and be permitted under the Financial Services Authority Handbook. We will provide at least 30 days’ notice of any change, if that change is considered to be to your disadvantage. Please see the next section about closing your Account if you are unhappy with any such changes.

a.11.2 TErmiNaTiON

Your Account will terminate when you withdraw all the Assets you hold from the Products you hold. This can include transferring any Portfolio Investments and/or a PPSIPP to another manager or provider as appropriate.

If you’re unhappy with any changes we make to your IPS Terms and Conditions, you may terminate the IPS Agreement by writing to the Customer Service Address. This may have an impact on any Products that you hold.

For details of any impact on your Product(s) please contact the Customer Services detailed in your Product Documents to discuss your options. Legal & General may terminate these IPS Terms and Conditions at any time by giving you a minimum of three months’ notice.

Depending on the Product(s) you hold, you may also be able to terminate your Account at any time by giving us notice in writing. Please refer to the relevant Product Documents for further information on closing specific products.

a.12 liaBiliTiES

We classify you as a retail client under the Financial Services Authority’s rules. This means you’ll receive the greatest level of regulatory protection available under those rules. Except as otherwise provided in these IPS Terms and Conditions, we will be responsible to you for any loss, injury or damage suffered by you due to our negligence, default, or fraud; any material breach by us of these IPS Terms and Conditions; or any failure, delay (that was within our control) or error by us, or the Nominee, in carrying out your instructions.

We will not be liable to you for indirect or unforeseeable losses such as loss of business, loss of goodwill, loss of opportunity, loss of profit or consequential losses; or our failure to comply with these IPS Terms and Conditions due to unforeseen circumstances beyond our reasonable control or due to obligations under applicable laws.

You will be responsible for any losses suffered by you and us if you act fraudulently or if you allow another person to use your security details or your Account. You will also be responsible for any reasonable losses suffered by you and us as a result of your material breach of these IPS Terms and Conditions or if you provide inaccurate or untrue information to us.

a.13 gENEral

a.13.1 TraNSfErriNg Our duTiES

We may appoint agents to carry out our obligations in managing your Account as long as this is allowed by the Regulations and the Financial Services Authority Handbook. However, we will not do so unless we are satisfied that the agent is competent to perform such tasks. We will be liable for the acts of any agents we appoint.

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If you’re unhappy with any changes we make to your IPS Terms and Conditions, you may terminate the IPS Agreement by writing to the Customer Service Address. This may have an impact on any Products that you hold.

For details of any impact on your Product(s) please contact the Customer Services detailed in your Product Documents to discuss your options. Legal & General may terminate these IPS Terms and Conditions at any time by giving you a minimum of three months’ notice.

Depending on the Product(s) you hold, you may also be able to terminate your Account at any time by giving us notice in writing. Please refer to the relevant Product Documents for further information on closing specific products.

a.12 liaBiliTiES

We classify you as a retail client under the Financial Services Authority’s rules. This means you’ll receive the greatest level of regulatory protection available under those rules. Except as otherwise provided in these IPS Terms and Conditions, we will be responsible to you for any loss, injury or damage suffered by you due to our negligence, default, or fraud; any material breach by us of these IPS Terms and Conditions; or any failure, delay (that was within our control) or error by us, or the Nominee, in carrying out your instructions.

We will not be liable to you for indirect or unforeseeable losses such as loss of business, loss of goodwill, loss of opportunity, loss of profit or consequential losses; or our failure to comply with these IPS Terms and Conditions due to unforeseen circumstances beyond our reasonable control or due to obligations under applicable laws.

You will be responsible for any losses suffered by you and us if you act fraudulently or if you allow another person to use your security details or your Account. You will also be responsible for any reasonable losses suffered by you and us as a result of your material breach of these IPS Terms and Conditions or if you provide inaccurate or untrue information to us.

a.13 gENEral

a.13.1 TraNSfErriNg Our duTiES

We may appoint agents to carry out our obligations in managing your Account as long as this is allowed by the Regulations and the Financial Services Authority Handbook. However, we will not do so unless we are satisfied that the agent is competent to perform such tasks. We will be liable for the acts of any agents we appoint.

You consent and agree that we may assign to any Legal & General Group company all or any of our rights and obligations under these IPS Terms and Conditions. We will notify you of any such assignment.

a.13.2 daTa PrOTECTiON

We take your privacy very seriously. We use the personal information collected via this form and any other information that you provide to us (“your information”) for the purposes of:

1. Providing you with our products and services and dealing with your enquiries and requests;

2. Administering your investment;

3. Carrying out market research, statistical analysis and customer profiling; and

4. Sending you marketing information (by post, telephone, email and SMS) about products and services of companies in the Legal & General group and of third parties whose products and services Legal & General offers to its customers.

By applying for an IPS Product, you agree to receive the information as described in 4 above, unless you tell us otherwise. Given the global nature of our business, we may need to transfer your information to countries outside the European Economic Area in order to provide our services to you.

Disclosures: We will disclose your information to other companies within the Legal & General group of companies, regulatory bodies, law enforcement agencies, future owners of our business and suppliers we engage to process data on our behalf. If you have been dealing with a financial adviser, we will give them information about your Product and, where appropriate, provide them with other information about your dealings with us to enable them to give you informed advice. Where you have been introduced to us by a bank or a building society, we will share your information with them to enable them to:

(a) carry out market research, statistical analysis and customer profiling; and

(b) send you marketing information about their products and services and products and services of companies in the Legal & General group and of third parties whose products and services Legal & General offers to its customers.

By applying for an IPS Product through a bank or building society, you agree to receive the information as described in (b) above by post or telephone, unless you tell us otherwise by writing to our Customer Service Address.

Access: You have the right to ask for a copy of your information in return for payment of a £10 fee. To obtain a copy of your information, please write to us at our Customer Service Address.

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INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS42 INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS

This section contains the Portfolio Investments Terms and Conditions, applying to unit trust and OEIC investments, including Individual Savings Accounts (ISAs).

These Portfolio Investments Terms and Conditions should be read alongside the IPS Terms and Conditions. These Portfolio Investments Terms and Conditions, together with the IPS Terms and Conditions, set out the legal agreement that applies to your investment through IPS.

The Terms and Conditions, which are governed by English law, shall apply to an Investment Account/ISA as soon as your Application is accepted by us. In the event of any conflict between the ISA Regulations and the Portfolio Investments Terms and Conditions, the ISA Regulations will always prevail.

The Terms and Conditions and all communications will only be available in English. All communications from us will be by letter, telephone or email unless we agree with you otherwise.

yOur POrTfOliO iNvESTmENTS TErmS aNd CONdiTiONS.

CONTaCTiNg uS

Write to us

You can write to us with instructions on your investment, or if you have any questions or want to make a complaint:

Investor Portfolio Service Legal & General PO Box 1112 Chelmsford CM99 2UX

Call us

You can call our Customer Services on

0845 272 0089

for general information on our range of investments or for questions about your investment.

We’re open 9.00am to 5.30pm, Monday to Friday. Call charges will vary. We may record and monitor calls.

B.1 dEfiNiTiONS

“Accumulation Unit” is a Unit where any income earned by the Fund, after tax, is retained in the Fund rather than paid out as a distribution. This means the capital value of the Unit increases.

“Adviser” means a person authorised by the FSA to conduct investment business, including acting as a financial adviser.

“Application” means the printed application form, provided by us, which you completed and signed. It also covers any non-written application, as agreed between us and you, which provides the same information, declarations and authority as the printed form.

“Authorised Fund Manager” means the company responsible for managing a Fund. This is the unit trust manager for a Unit Trust or the authorised corporate director for an OEIC.

“Business Day” is any day when the London Stock Exchange is open for business.

“Cash Reserve” means a Client Money Account within your ISA used solely for ISA investments while awaiting investment in a Fund.

“Client Money Account” means a current or deposit account that is in our, our nominee’s, or our agent’s name at a bank, and includes in its title an appropriate description to indicate that it holds only clients’ money in accordance with our regulatory responsibility and is used to hold the money of one or more clients.

“Dealing Day” means any Business Day or the next possible Business Day.

“Dealing Deadline” means the time by which we must receive your instruction in order to buy, switch or sell Units. You can find the Dealing Deadline for a Fund in our ‘Important Fund Information’ document.

“Direct Debit Dealing Day” means, if you are making Regular Payments by Direct Debit, the Business Day on which we request your Direct Debit Payment. This will be the day selected on your Application, or if this is not a Business Day the next Business Day.

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B.1 dEfiNiTiONS

“Accumulation Unit” is a Unit where any income earned by the Fund, after tax, is retained in the Fund rather than paid out as a distribution. This means the capital value of the Unit increases.

“Adviser” means a person authorised by the FSA to conduct investment business, including acting as a financial adviser.

“Application” means the printed application form, provided by us, which you completed and signed. It also covers any non-written application, as agreed between us and you, which provides the same information, declarations and authority as the printed form.

“Authorised Fund Manager” means the company responsible for managing a Fund. This is the unit trust manager for a Unit Trust or the authorised corporate director for an OEIC.

“Business Day” is any day when the London Stock Exchange is open for business.

“Cash Reserve” means a Client Money Account within your ISA used solely for ISA investments while awaiting investment in a Fund.

“Client Money Account” means a current or deposit account that is in our, our nominee’s, or our agent’s name at a bank, and includes in its title an appropriate description to indicate that it holds only clients’ money in accordance with our regulatory responsibility and is used to hold the money of one or more clients.

“Dealing Day” means any Business Day or the next possible Business Day.

“Dealing Deadline” means the time by which we must receive your instruction in order to buy, switch or sell Units. You can find the Dealing Deadline for a Fund in our ‘Important Fund Information’ document.

“Direct Debit Dealing Day” means, if you are making Regular Payments by Direct Debit, the Business Day on which we request your Direct Debit Payment. This will be the day selected on your Application, or if this is not a Business Day the next Business Day.

“Distribution Unit” (or “Income Unit”) is a Unit or share type where any income earned by a Fund, after tax, can be paid out to Unit holders as a distribution. You can find the payment frequency and date for a Fund in the Product Documents, or from us.

“Fund” means an authorised Unit Trust, or OEIC, or where applicable a sub-fund of these in which you can invest within your Portfolio Account and this includes any Fund transferred to your Portfolio Account from another manager. Details of the Funds currently offered by us are detailed in the Product Documents or are available from us upon request.

“HMRC” means Her Majesty’s Revenue & Customs. It is responsible for collecting taxes.

“Investment Account” means the part of your Portfolio Account that is not an ISA.

“IPS Cash Account” means Client Money Account(s) that can be used to process or hold Monies to be invested in a Fund, or paid out to you (such as a withdrawal or income payment). The IPS Cash Account can never be held within an ISA.

“ISA” means your stocks and shares Individual Savings Account as defined by HMRC. Each tax year’s ISA is a separate subscription.

“KIID” means the current Key Investor Information

Document in respect of the Fund.

“Monies” means any client money held within a Client Money Account, the Cash Reserve, or the IPS Cash Account.

“Nominee” is any company appointed by us in whose name Assets in a Portfolio Account, other than cash, will be registered.

“OEIC” means an Open-Ended Investment Company (“OEIC”) authorised in the UK by the Financial Services Authority.

“Payment(s)” means any lump sum or regular payment made to the Portfolio Account, or payment for a Fund made from the IPS Cash Account. For an ISA Transfer this includes the Transfer Value. Only lump sum Payments can be made into the Cash Reserve or the IPS Cash Account.

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“Portfolio Account” means your Investment Account and/or your ISA (including your Cash Reserve if applicable), as selected on your Application, covered by these Portfolio Investments Terms and Conditions.

“Portfolio Investment” means any or all of the investments held in your Portfolio Account. These are: Unit Trusts, OEICs, and/or ISAs.

“Portfolio Investments Terms and Conditions” means these Terms and Conditions for Portfolio Investments.

“Product Documents” means the literature provided to you for Portfolio Investments, as amended from time to time. These are:

• Key Investor Information Document (KIID)

• ‘Investing with IPS’ including Terms and Conditions • Important Fund Information • Commission disclosure (where appropriate).

The above documents are available from your Adviser, online or from our Customer Services.

“Regular Payments” means Payments made monthly by Direct Debit into a Portfolio Investment.

“Regulations” means The Individual Savings Account Regulations 1998 as amended from time to time.

“Transfer Value” means the value of an ISA transferred to us from another account manager.

“Unit” means a unit of a Unit Trust or a share of an OEIC, and can be either a Distribution or Accumulation Unit. You can find the type of units or shares available in a Fund in the Product Documents, or from us.

“Unit Trust” means a unit trust authorised in the UK by the Financial Services Authority.

“US Person” means any natural person resident in the United States; any partnership or corporation organised or incorporated under the laws of the United States; any estate of which any executor or administrator is a US person; any trust of which any trustee is a US person; any agency or branch of a foreign entity located in the United States; any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a US person; any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated, or (if an individual) resident in the United States; and any partnership or corporation if: organised or incorporated under the laws of any foreign jurisdiction; and formed by a US person principally for the purpose of investing in securities not registered under the Act, unless it is organised or incorporated, and owned, by accredited investors who are not natural persons, estates or trusts.

“Valuation Point” means the point in time at which the Fund is valued and a price calculated. Most Funds have a Valuation Point every Business Day. You can find the relevant times for a Fund in the Product Documents or from us.

“Written” or “in Writing” means an instruction that you have signed.

“You” and “your” means the Portfolio Account holder(s), including an individual(s), who has applied to open a Portfolio Account under these Portfolio Investments Terms and Conditions. For an Investment Account this includes any company or other corporate body, a trust and the trustees.

B.2 aCCEPTaNCE

A Portfolio Account will be opened in your name once we have received, for the first time and at the address given in Clause 32 or by whatever other means we agree, both a fully completed Application and a full Payment. Additional Applications are made in the same way. You may transfer an ISA from another account manager in accordance with Clause 25 of these Portfolio Investments Terms and Conditions.

Instead of making a cash Payment, we may accept the transfer of your existing holding in a Fund as Payment, in which case the Portfolio Account will be accepted when we have received transfer of the first of your holdings in such Funds. However, in the event of such a transfer, you do not have the right to cancel as detailed in Clause 4.

In order to accept your first Application you must have confirmed to us on your application form that you have been provided with the KIID for the fund(s) you are investing in. You must also have confirmed that you have been provided with information on complaints, compensation and cancellation which is contained in this ‘Investing with IPS’ brochure. Please see Clause 3 regarding future transactions.

An Application will not be processed if, in our reasonable opinion:

(a) you are not eligible to hold a Portfolio Account;

(b) the Application is incomplete, or needs clarification; or

(c) you have not confirmed that you have been provided with the current KIID for the relevant fund(s).

If we believe an Application is incomplete then:

(d) If your Application for an ISA does not include your National Insurance number, date of birth, full name, address and postcode, it will be accepted subject to you providing the missing information within 30 days of requesting it from you. If we do not receive this information within this timeframe, your ISA will be converted to an Investment Account and will remain invested in Units.

(e) If, 30 days after writing to you to request outstanding information which we reasonably require to verify your identity, we are still waiting to receive that information, we will return your Application. Units will be repurchased within 14 days of the expiry of the 30-day period and you will receive the market value on the date of repurchase. Payments will be returned to the original source of the contribution.

(f) If you have not confirmed that you have been provided with the current KIID for the relevant fund(s), we will return your application, including cheques where applicable, no later than the Business Day after we receive them.

If we have to close an ISA because your Application is incomplete, your Payment will still count towards your annual ISA allowance.

Where you make an Application for an ISA other than in Writing, we will confirm all the details you provide at the time of Application. Faxed or email Applications will not be accepted unless we agree to do so in advance.

The minimum allowable Payment, or transfer of any Fund you already hold with another manager, into a Portfolio Account is that detailed on our Application form.

If a Payment has not cleared within 14 days of the Payment instruction, we reserve the right to cancel any Unit deals relating to that Payment, or cancel the instruction in case of the Cash Reserve. If it is the first Payment into the Portfolio Account and the Payment has not cleared within 14 days of the Payment instruction then in addition to the above, we reserve the right to close the Portfolio Account.

We reserve the right to reject an application. You must ensure that the information you provide to us is accurate and we are entitled to rely upon the accuracy of the information contained in your Application.

B.3 SuBSEquENT TraNSaCTiONS

Once you have invested, in order for us to accept certain subsequent transactions, you must have confirmed on your application form that you have been provided with the KIID for the fund(s) you are transacting in. These transactions are:

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“Valuation Point” means the point in time at which the Fund is valued and a price calculated. Most Funds have a Valuation Point every Business Day. You can find the relevant times for a Fund in the Product Documents or from us.

“Written” or “in Writing” means an instruction that you have signed.

“You” and “your” means the Portfolio Account holder(s), including an individual(s), who has applied to open a Portfolio Account under these Portfolio Investments Terms and Conditions. For an Investment Account this includes any company or other corporate body, a trust and the trustees.

B.2 aCCEPTaNCE

A Portfolio Account will be opened in your name once we have received, for the first time and at the address given in Clause 32 or by whatever other means we agree, both a fully completed Application and a full Payment. Additional Applications are made in the same way. You may transfer an ISA from another account manager in accordance with Clause 25 of these Portfolio Investments Terms and Conditions.

Instead of making a cash Payment, we may accept the transfer of your existing holding in a Fund as Payment, in which case the Portfolio Account will be accepted when we have received transfer of the first of your holdings in such Funds. However, in the event of such a transfer, you do not have the right to cancel as detailed in Clause 4.

In order to accept your first Application you must have confirmed to us on your application form that you have been provided with the KIID for the fund(s) you are investing in. You must also have confirmed that you have been provided with information on complaints, compensation and cancellation which is contained in this ‘Investing with IPS’ brochure. Please see Clause 3 regarding future transactions.

An Application will not be processed if, in our reasonable opinion:

(a) you are not eligible to hold a Portfolio Account;

(b) the Application is incomplete, or needs clarification; or

(c) you have not confirmed that you have been provided with the current KIID for the relevant fund(s).

If we believe an Application is incomplete then:

(d) If your Application for an ISA does not include your National Insurance number, date of birth, full name, address and postcode, it will be accepted subject to you providing the missing information within 30 days of requesting it from you. If we do not receive this information within this timeframe, your ISA will be converted to an Investment Account and will remain invested in Units.

(e) If, 30 days after writing to you to request outstanding information which we reasonably require to verify your identity, we are still waiting to receive that information, we will return your Application. Units will be repurchased within 14 days of the expiry of the 30-day period and you will receive the market value on the date of repurchase. Payments will be returned to the original source of the contribution.

(f) If you have not confirmed that you have been provided with the current KIID for the relevant fund(s), we will return your application, including cheques where applicable, no later than the Business Day after we receive them.

If we have to close an ISA because your Application is incomplete, your Payment will still count towards your annual ISA allowance.

Where you make an Application for an ISA other than in Writing, we will confirm all the details you provide at the time of Application. Faxed or email Applications will not be accepted unless we agree to do so in advance.

The minimum allowable Payment, or transfer of any Fund you already hold with another manager, into a Portfolio Account is that detailed on our Application form.

If a Payment has not cleared within 14 days of the Payment instruction, we reserve the right to cancel any Unit deals relating to that Payment, or cancel the instruction in case of the Cash Reserve. If it is the first Payment into the Portfolio Account and the Payment has not cleared within 14 days of the Payment instruction then in addition to the above, we reserve the right to close the Portfolio Account.

We reserve the right to reject an application. You must ensure that the information you provide to us is accurate and we are entitled to rely upon the accuracy of the information contained in your Application.

B.3 SuBSEquENT TraNSaCTiONS

Once you have invested, in order for us to accept certain subsequent transactions, you must have confirmed on your application form that you have been provided with the KIID for the fund(s) you are transacting in. These transactions are:

• Additional investment into a fund you hold • New or increases to Direct Debits • Unit conversions – moving between Distribution and

Accumulation Units in the same fund • Changing from receiving income to reinvesting income • Fund switches • Unit Trust to ISA switches • ISAs transferred to us as cash from another manager.

For all subsequent transactions listed above, we will be unable to accept your instruction if you have not confirmed in your application that you have been provided with the KIID for the fund(s) you wish to transact in. If you have not confirmed KIID provision, we will return your application, including cheques where applicable, no later than the Business Day after we receive them.

If you currently invest in a fund, or are transferring an existing holding to us as a Portfolio Account, for which no KIID is available, you will not be able to make any of the transactions listed in Clause 3. If we do receive an instruction to make one of the relevant transactions we’ll return your application, including cheques where applicable, no later than the Business Day after we receive them. Your investment will continue until you withdraw.

B.4 CaNCEllaTiON righTS

When you make a lump sum Payment or transfer your ISA from another manager you will be given a right to cancel your investment that relates to that Payment. For Payment by lump sum, a cancellation notice will be sent to you by post when we accept your Application and for each further investment, giving you your 14-day cancellation period. For Direct Debit instructions, you will be given the right to cancel your investment that relates to that first payment. Cancellation rights start when we send you a letter confirming your Direct Debit and finish 14 days later. Please note that if you cancel a Direct Debit instruction it cancels the investment you are making as well as the Direct Debit instruction itself.

A cancellation notice will be sent to you for ISA transfers we receive as cash when we receive the Transfer Value from the other manager. For lump sum Payments into a Fund or the Cash Reserve, and for ISA transfers from another manager, you have 14 days from the day you receive the notice of your right to cancel to withdraw from the transaction. This can be done by returning your completed cancellation notice form to us at the address in Clause 32 by the end of this 14-day period. For your first Payment by Direct Debit you have 14 days from when you receive the cancellation notice to withdraw from the transaction. If you wish to cancel you must write to us at the address in Clause 32 by the end of this 14-day period.

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If you exercise your right to cancel we’ll refund any initial charges you paid. The maximum amount you will get back, even if any gain has been made, is the amount you invested in the Portfolio Account. If the value of Units in any Fund has fallen by the day we receive the notice of cancellation from you, you will get back less than you invested in that Fund. This is because an amount equal to that fall in value will be deducted from any refund. We do not offset any gain made in one Fund against any loss made in another Fund. If you exercise the right to cancel an ISA transfer, we will close your ISA and you will lose your ISA entitlement relating to that transfer. Following cancellation, we will return your proceeds to you, once we are certain of cleared funds in respect of your Payment (banks and building societies may take up to 21 working days to fully honour any Payment). Alternatively, you can transfer your ISA back to the original ISA manager or to another ISA manager by completing an ISA transfer form(s). Any proceeds on cancellation will be returned to the original source of the Payment except for ISA transfers and in exceptional circumstances. Cancellation rights do not apply to switches between Funds. No cancellation rights apply for the transfer of funds you hold elsewhere into the Portfolio Account.

B.5 hOW CaSh PaymENTS arE iNvESTEd

We will pay all Payments into a Client Money Account or the IPS Cash Account no later than the Business Day after we receive them. We may pass client money to a Client Money Account in our agent’s name to allow them to carry out transactions on our behalf.

If we receive a Payment for an investment that is in excess of the amount stated in your Application, or if you make a Payment for an ISA that is in excess of the limits allowed by the Regulations, we’ll retain this excess in the IPS Cash Account and contact you and/or your Adviser (if you are using one) for your instructions.

We expect the manner in which you invest in the Funds to reflect their objective of generating steady return over the medium to long term (typically five years or more). If, in our reasonable opinion, your trading activity represents frequent trading, we may refuse to buy Units on your behalf.

Application together with a lump sum Payment (other than a Payment for the IPS Cash Account or the Cash Reserve) before a Fund’s Dealing Deadline, the Payment less any charges described in Clause 11 will be invested in Units of the selected Fund(s) at the price calculated at the next Valuation Point following that Dealing Deadline. Your Payment will be invested in Accumulation Units or Distribution Units as selected on your Application.

If a Payment is received after the Dealing Deadline on any day, it will be invested at the Valuation Point after the next Dealing Deadline. Regular Payments will only be collected only by Direct Debit. The Payments, less any charges described in Clause 11, will be invested at the Valuation Point on each Direct Debit Dealing Day. You cannot make Regular Payments into the Cash Reserve or the IPS Cash Account. After we have accepted your Application and we have received any information we reasonably require to verify your identity, the first Direct Debit will be collected on the first Direct Debit Dealing Day after a period of 14 days. No collection will take place until we have received all outstanding information. A new Direct Debit Instruction will be required if the first monthly contribution will be more than 90 days after the Application was accepted. Regular Payments will be invested in Accumulation Units or Distribution Units as selected on your Application. If you wish to cancel your Direct Debit, we must receive Written instructions, or any other method agreed by us, at least eight Business Days before the Direct Debit Dealing Day. Any increase in monthly Payments will be collected on the same day as the existing Direct Debit. If you don’t specify the Fund(s) you wish to invest the increase in, we’ll be unable to process your request. If, after a transfer, any further Payments are received from your previous manager, they will be invested in your Portfolio Account in the same Funds, Unit class and proportions as the original transfer.

If an instruction is received to buy Units before the Dealing Deadline, then Units will be bought at the price applicable at the next Valuation Point using the price calculated by the Authorised Fund Manager in accordance with their Fund prospectus after deducting any charges as described in Clause 11. The actual price used or any dilution levy for your deal will be the price provided, or levy made, by the Authorised Fund Manager. These will be shown on your contract notes or statements. See the Product Documents for more information on pricing.

B.6 PENdiNg TradES

Pending trades allow you to provide us with instructions to buy units in your investment account or ISA, but delay the purchase if you do not have sufficient money to cover the Payment, in your IPS Cash Account. You must send us a pending trade cheque payment form along with a cheque to cover the purchase. Once sufficient funds are available in your IPS Cash Account, we’ll carry out your instruction. You will receive the price as per valuation point on the day that sufficient funds become available. If sufficient funds are not available within 14 calendar days of your instruction, the trade will not be placed. If funds become

available in your IPS Cash Account after this 14-calendar-day period has expired, then they will remain uninvested in your IPS Cash Account until such time as we receive subsequent instruction.

B.7 OWNErShiP Of aSSETS aNd dEaliNg POliCy

We are responsible for the safe custody of all Assets held in your Portfolio Account. We register your Portfolio Investments in the name of our Nominee. We may change the Nominee company, and if we do we will let you know.

We are responsible for the acts and omissions of our Nominee. Our Nominee is not itself an authorised person under the Financial Services and Markets Act 2000; it can only hold investments and does not carry on business in its own right.

Your Portfolio Investment is held in the same name as those of other IPS investors and we do not identify each investor’s holdings by separate certificates. This means that in the event of an irreconcilable shortfall following the default of our Nominee, you will share the shortfall proportionally with our other investors. All documents evidencing title to Portfolio Investments in your Portfolio Account are held by us or as we direct. We may not lend any of your investments to a third party and we cannot use them as security for borrowing.

When buying or selling Units on your behalf, we will arrange that Units are only bought directly from or sold directly to the relevant Fund’s Authorised Fund Manager at the relevant Valuation Point as detailed in these Portfolio Investments Terms and Conditions.

You are and remain the beneficial owner of the investments in your ISA. Investments made by you will be held on your behalf as owner, but you must not use them as security for a loan. You may be able to use the Assets in your Portfolio Account as a loan repayment method, subject to your lender’s agreement. You may not dispose of or transfer an interest in any Asset while it is held in your Portfolio Account and you may not create (or have outstanding) any charge or security on or over any such Asset.

B.8 CONfliCT Of iNTErEST

Conflicts of interest may arise between you and us, our employees, our associated companies or our representatives. To ensure we treat investors consistently and fairly, we are required to have a policy on how to identify and manage these conflicts. A summary of our policy is detailed below. A copy of the full policy is available on request from the address in Clause 32.

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If a Payment is received after the Dealing Deadline on any day, it will be invested at the Valuation Point after the next Dealing Deadline. Regular Payments will only be collected only by Direct Debit. The Payments, less any charges described in Clause 11, will be invested at the Valuation Point on each Direct Debit Dealing Day. You cannot make Regular Payments into the Cash Reserve or the IPS Cash Account. After we have accepted your Application and we have received any information we reasonably require to verify your identity, the first Direct Debit will be collected on the first Direct Debit Dealing Day after a period of 14 days. No collection will take place until we have received all outstanding information. A new Direct Debit Instruction will be required if the first monthly contribution will be more than 90 days after the Application was accepted. Regular Payments will be invested in Accumulation Units or Distribution Units as selected on your Application. If you wish to cancel your Direct Debit, we must receive Written instructions, or any other method agreed by us, at least eight Business Days before the Direct Debit Dealing Day. Any increase in monthly Payments will be collected on the same day as the existing Direct Debit. If you don’t specify the Fund(s) you wish to invest the increase in, we’ll be unable to process your request. If, after a transfer, any further Payments are received from your previous manager, they will be invested in your Portfolio Account in the same Funds, Unit class and proportions as the original transfer.

If an instruction is received to buy Units before the Dealing Deadline, then Units will be bought at the price applicable at the next Valuation Point using the price calculated by the Authorised Fund Manager in accordance with their Fund prospectus after deducting any charges as described in Clause 11. The actual price used or any dilution levy for your deal will be the price provided, or levy made, by the Authorised Fund Manager. These will be shown on your contract notes or statements. See the Product Documents for more information on pricing.

B.6 PENdiNg TradES

Pending trades allow you to provide us with instructions to buy units in your investment account or ISA, but delay the purchase if you do not have sufficient money to cover the Payment, in your IPS Cash Account. You must send us a pending trade cheque payment form along with a cheque to cover the purchase. Once sufficient funds are available in your IPS Cash Account, we’ll carry out your instruction. You will receive the price as per valuation point on the day that sufficient funds become available. If sufficient funds are not available within 14 calendar days of your instruction, the trade will not be placed. If funds become

available in your IPS Cash Account after this 14-calendar-day period has expired, then they will remain uninvested in your IPS Cash Account until such time as we receive subsequent instruction.

B.7 OWNErShiP Of aSSETS aNd dEaliNg POliCy

We are responsible for the safe custody of all Assets held in your Portfolio Account. We register your Portfolio Investments in the name of our Nominee. We may change the Nominee company, and if we do we will let you know.

We are responsible for the acts and omissions of our Nominee. Our Nominee is not itself an authorised person under the Financial Services and Markets Act 2000; it can only hold investments and does not carry on business in its own right.

Your Portfolio Investment is held in the same name as those of other IPS investors and we do not identify each investor’s holdings by separate certificates. This means that in the event of an irreconcilable shortfall following the default of our Nominee, you will share the shortfall proportionally with our other investors. All documents evidencing title to Portfolio Investments in your Portfolio Account are held by us or as we direct. We may not lend any of your investments to a third party and we cannot use them as security for borrowing.

When buying or selling Units on your behalf, we will arrange that Units are only bought directly from or sold directly to the relevant Fund’s Authorised Fund Manager at the relevant Valuation Point as detailed in these Portfolio Investments Terms and Conditions.

You are and remain the beneficial owner of the investments in your ISA. Investments made by you will be held on your behalf as owner, but you must not use them as security for a loan. You may be able to use the Assets in your Portfolio Account as a loan repayment method, subject to your lender’s agreement. You may not dispose of or transfer an interest in any Asset while it is held in your Portfolio Account and you may not create (or have outstanding) any charge or security on or over any such Asset.

B.8 CONfliCT Of iNTErEST

Conflicts of interest may arise between you and us, our employees, our associated companies or our representatives. To ensure we treat investors consistently and fairly, we are required to have a policy on how to identify and manage these conflicts. A summary of our policy is detailed below. A copy of the full policy is available on request from the address in Clause 32.

We:

(a) will consider the interests of all our customers and treat them fairly;

(b) will manage conflicts of interest fairly to ensure that all customers are treated consistently and to prevent any conflict of interest from giving rise to a material risk of damage to the interests of our customers;

(c) have in place procedures to ensure that staff identify and report any new conflicts;

(d) will keep a written record of any conflicts or potential conflicts;

(e) if appropriate, will disclose any relevant conflict to a customer before undertaking business with that customer;

(f) will carry out an annual review to identify any new conflicts; and

(g) will ensure new business developments identify any new conflicts of interest.

This policy applies to any third party to whom we delegate any of our functions.

B.9 iNfOrmaTiON PrOvidEd

We will send you a contract note after each lump sum Unit purchase, which will show the value invested, date of the purchase, Unit price, number of Units bought, the execution venue and the time of the transaction. We will also send you a contract note after any lump sum Payment into the Cash Reserve Account which will show the date of the investment.

Information about each Unit purchase for regular Payments will be shown on your Consolidated Confirmation note, sent six months after your annual statement. See Clause A6.5 of the IPS Terms and Conditions for more information about the annual statement.

If you elect we will arrange for you to:

(a) receive a copy of the annual report and accounts issued to an investor by every company, Unit Trust, OEIC or other entity in which you have investments in your Portfolio Account; and

(b) be able to attend any meetings of investors in every company, Unit Trust, OEIC or other entity in which you have investments in your Portfolio Account; and

(c) to vote; and

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(d) to receive, in addition to the documents in (a) above any other information issued to investors in each company, Unit Trust, OEIC or other entity in which you have investments in your Portfolio Account; and

(e) exercise voting rights through us or the Nominee at such meetings.

B.10 iNCOmE

B.10.1 rEiNvESTiNg iNCOmE

Where you have chosen Accumulation Units, any income will be kept within the value of the Units, increasing their capital value, and this will be included in the Fund’s Unit price. Any reclaimed tax credit for ISA Accounts will be used to buy further Accumulation Units in the Fund no later than the business day following receipt.

If you have chosen Distribution Units, and you’re reinvesting the income, any income and/or an amount equal to the tax credit (if applicable) in respect of Units will be used to buy further Distribution Units in the Fund no later than the Dealing Day following receipt. If you invest in more than one fund and select Distribution Units in Funds that have them available, you must choose to have either income reinvested for all Funds, or income paid out to you for all Funds.

All Regular Payments will be invested on the basis that income is to be reinvested, unless you tell us otherwise. You authorise us to reclaim any tax credit in respect of Units and to reimburse ourselves when we receive this from HMRC. If you are receiving income from a Fund, you can, at a later date, request to have future income reinvested. If you make this request after a distribution is due from the Fund, otherwise known as the ex-dividend date, but before the income is paid out, this last income payment will be paid to your Nominated Bank Account.

B.10.2 iNCOmE Paid OuT

You may, for lump sum Payments into any Fund offering Distribution Units, choose to receive the income from your Portfolio Account. Where you have made this choice, your Payments will be invested in Distribution Units. Any income will be paid into your IPS Cash Account shortly after it is received by us. If there is any reclaimable tax credit, we will add this amount to any income payment.

Any income is paid to your Nominated Bank Account on the seventh Business Day of the month, and consists of all income payments received between the sixth Business Day of the previous month and the fifth Business Day of the month in which the payment is made. If you have not requested to receive income, you can, at a later date, request in writing to have income paid to you. Where you currently invest in Accumulation Units, this will involve

a conversion to Distribution Units. You authorise us to reclaim any tax credit in respect of Units and to reimburse ourselves when we receive this from HMRC. If a BACS payment is rejected by your bank then the payment will be added to your IPS Cash Account shortly after it is returned to us. Ex-dividend dates and income payment dates for the Funds are in the Product Documents or available from us.

B.11 ChargES

Charges in connection with the Account are as follows. There may be an initial charge for Units bought within the Account including when investing any income payments. The charge is made by the Authorised Fund Manager and the way it is applied depends on the Authorised Fund Manager’s method of calculating a Unit price. Details of how any initial charge is applied and the method of valuation is set out in the Authorised Fund Manager’s prospectus which is available from us on request. The Authorised Fund Manager may pay us a proportion of this charge (details are available on request). Initial charges will not be applied to conversions between Accumulation and Distribution Units in the same Fund, however you should be aware that the Fund Manager may apply a bid/offer spread for buying and/or selling Units.

The Authorised Fund Manager, as manager of the Fund in which an Account invests, takes an annual management charge payable out of the assets of such Fund. This charge accrues daily and is paid monthly to the Authorised Fund Manager. The Authorised Fund Manager may pay us a proportion of this charge (details are available on request). The Authorised Fund Manager may, for some Funds, take a performance fee. Details of the annual management charge, any performance fee and any initial charge for the Funds can be found in the Product Documents or available from us.

B.12 ChaNgiNg fuNdS

You can request that some or all of your Units of a Fund are switched into Units of another Fund offered by us. The minimum amount that can be switched into a Fund is £20 and the minimum value that must remain in a Fund is £20. Where you request a switch, Units of the original Fund will be sold and Units of the new Fund will be purchased as detailed in the following table.

(Depending on the Valuation Points of the Funds an investment may not be reinvested in Units for up to 30 hours.)

No interest will be paid on the cash holding between the sale and purchase deal. Where you request to switch a specific amount, the number of Units to be sold will be estimated using the previous Unit price. This will mean that the amount switched may be more or less than the amount you requested. Where you are making Payments by Direct Debit, you may request that any future Payments be invested in another Fund or Funds. We must receive this request eight Business Days before the day your Direct Debit is collected in order to make the change.

B.13 CaSh rESErvE (fOr iSas ONly)

You may request on your Application to put an amount of money into the Cash Reserve instead of investing in Units for your ISA straightaway. You can put an amount up to the whole of your ISA allowance into the Cash Reserve. Any money in the Cash Reserve must be held for the purpose of investment. It is your responsibility to tell us when to use money from the Cash Reserve to buy Units for your ISA. HMRC can request we terminate that part of your ISA held in the Cash Reserve if it believes there is no intention of reinvesting into other eligible investments. You may request that some or all of the Units held in your ISA are sold and the proceeds invested in the Cash Reserve. If your instruction is received before the Dealing Deadline, then the Units will be sold at the next Valuation Point. You should not consider the Cash Reserve as an ISA investment as it can be used only for a temporary period after which it must be reinvested in another eligible ISA investment.

The money held in your Cash Reserve can be invested in Fund(s) of your choice subject to any minimum investment amount per Fund as detailed in Clause 12. If your instruction is received before the Dealing Deadline, then the Units will be bought at the next Valuation Point. Interest on any holdings in the Cash Reserve is added to your ISA on a six-monthly basis except in the circumstances detailed in this Clause. This means that interest may be added to the Cash Reserve after you’ve invested in Fund(s) or withdrawn the money. Where you have switched from a Fund into your Cash Reserve, interest is calculated up to the day that you switch into a Fund or withdraw from the Cash Reserve, and paid on the next six-monthly allocation date. Where you have invested directly into the Cash Reserve, including via an ISA transfer from another ISA manager, no interest is paid if you switch into a Fund or withdraw from the Cash Reserve before the next six-monthly allocation date. All interest will be subject to a flat-rate charge by HMRC, currently 20%. Details about the interest rates can be found online at

uNiT SalE dEal uNiT PurChaSE dEal

If the instruction is received by the Dealing Deadline, then at the next Valuation Point.

At the Valuation Point of the new Fund on the day after the sale deal.

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a conversion to Distribution Units. You authorise us to reclaim any tax credit in respect of Units and to reimburse ourselves when we receive this from HMRC. If a BACS payment is rejected by your bank then the payment will be added to your IPS Cash Account shortly after it is returned to us. Ex-dividend dates and income payment dates for the Funds are in the Product Documents or available from us.

B.11 ChargES

Charges in connection with the Account are as follows. There may be an initial charge for Units bought within the Account including when investing any income payments. The charge is made by the Authorised Fund Manager and the way it is applied depends on the Authorised Fund Manager’s method of calculating a Unit price. Details of how any initial charge is applied and the method of valuation is set out in the Authorised Fund Manager’s prospectus which is available from us on request. The Authorised Fund Manager may pay us a proportion of this charge (details are available on request). Initial charges will not be applied to conversions between Accumulation and Distribution Units in the same Fund, however you should be aware that the Fund Manager may apply a bid/offer spread for buying and/or selling Units.

The Authorised Fund Manager, as manager of the Fund in which an Account invests, takes an annual management charge payable out of the assets of such Fund. This charge accrues daily and is paid monthly to the Authorised Fund Manager. The Authorised Fund Manager may pay us a proportion of this charge (details are available on request). The Authorised Fund Manager may, for some Funds, take a performance fee. Details of the annual management charge, any performance fee and any initial charge for the Funds can be found in the Product Documents or available from us.

B.12 ChaNgiNg fuNdS

You can request that some or all of your Units of a Fund are switched into Units of another Fund offered by us. The minimum amount that can be switched into a Fund is £20 and the minimum value that must remain in a Fund is £20. Where you request a switch, Units of the original Fund will be sold and Units of the new Fund will be purchased as detailed in the following table.

(Depending on the Valuation Points of the Funds an investment may not be reinvested in Units for up to 30 hours.)

No interest will be paid on the cash holding between the sale and purchase deal. Where you request to switch a specific amount, the number of Units to be sold will be estimated using the previous Unit price. This will mean that the amount switched may be more or less than the amount you requested. Where you are making Payments by Direct Debit, you may request that any future Payments be invested in another Fund or Funds. We must receive this request eight Business Days before the day your Direct Debit is collected in order to make the change.

B.13 CaSh rESErvE (fOr iSas ONly)

You may request on your Application to put an amount of money into the Cash Reserve instead of investing in Units for your ISA straightaway. You can put an amount up to the whole of your ISA allowance into the Cash Reserve. Any money in the Cash Reserve must be held for the purpose of investment. It is your responsibility to tell us when to use money from the Cash Reserve to buy Units for your ISA. HMRC can request we terminate that part of your ISA held in the Cash Reserve if it believes there is no intention of reinvesting into other eligible investments. You may request that some or all of the Units held in your ISA are sold and the proceeds invested in the Cash Reserve. If your instruction is received before the Dealing Deadline, then the Units will be sold at the next Valuation Point. You should not consider the Cash Reserve as an ISA investment as it can be used only for a temporary period after which it must be reinvested in another eligible ISA investment.

The money held in your Cash Reserve can be invested in Fund(s) of your choice subject to any minimum investment amount per Fund as detailed in Clause 12. If your instruction is received before the Dealing Deadline, then the Units will be bought at the next Valuation Point. Interest on any holdings in the Cash Reserve is added to your ISA on a six-monthly basis except in the circumstances detailed in this Clause. This means that interest may be added to the Cash Reserve after you’ve invested in Fund(s) or withdrawn the money. Where you have switched from a Fund into your Cash Reserve, interest is calculated up to the day that you switch into a Fund or withdraw from the Cash Reserve, and paid on the next six-monthly allocation date. Where you have invested directly into the Cash Reserve, including via an ISA transfer from another ISA manager, no interest is paid if you switch into a Fund or withdraw from the Cash Reserve before the next six-monthly allocation date. All interest will be subject to a flat-rate charge by HMRC, currently 20%. Details about the interest rates can be found online at

www.onlineips.co.uk/accountrates, or by contacting us at the address given in Clause 32.

At the end of April and October each year we’ll work out how much interest you are entitled to and apply that to your Cash Reserve by the tenth working day of May and November respectively. Your annual statement will show any interest allocated to your Portfolio Account.

B.14 Tax rEClaimS

You authorise us to apply to HMRC on your behalf to make all appropriate claims for the repayment of, or credit against, tax in respect of Units held under an ISA and any income they produce. For this purpose you authorise us to provide HMRC with all relevant information and documentation about you and your Portfolio Account that may be required for this purpose.

B.15 liaBiliTiES

We classify you as a retail client under the Financial Services Authority’s rules. This means you’ll receive the greatest level of regulatory protection available under those rules. Except as otherwise provided in these Portfolio Investments Terms and Conditions, we will be responsible to you for any loss, injury or damage suffered by you due to our negligence, default or fraud; any material breach by us of these Portfolio Investments Terms and Conditions; or any failure, delay (that was within our control) or error by us, or the Nominee in carrying out your instructions. We will not be liable to you for indirect or unforeseeable losses such as loss of business, loss of goodwill, loss of opportunity, loss of profit, or consequential losses; or our failure to comply with these Portfolio Investments Terms and Conditions due to unforeseen circumstances beyond our reasonable control or due to obligations under applicable laws. You will be responsible for any losses suffered by you and us if you act fraudulently or if you allow another person to use your security details or your Portfolio Account. You will also be responsible for any reasonable losses suffered by you and us as a result of your material breach of these Portfolio Investments Terms and Conditions or if you provide inaccurate or untrue information to us.

B.16 makiNg WiThdraWalS

You may make partial cash withdrawals for amounts of £20 or more from the Portfolio Account by Written request, or any other method as agreed by us, before the next Dealing Deadline, provided that the value remaining in your Portfolio Account is at least £20. Unless a withdrawal is made from the Cash Reserve in which case we will return the money to you, Units will be sold at the price calculated at the next Valuation Point unless for any good

uNiT SalE dEal uNiT PurChaSE dEal

If the instruction is received by the Dealing Deadline, then at the next Valuation Point.

At the Valuation Point of the new Fund on the day after the sale deal.

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reason we need to confirm or check your instruction, signature, or change of your personal details. If the value of your Portfolio Account subsequently falls below £20 we reserve the right to withdraw the amount invested in that Account and pay it to your Nominated Bank Account or your IPS Cash Account. Where you request to withdraw a specific amount from your Portfolio Account, other than the Cash Reserve, the number of Units to be sold will be estimated using the previous Unit price. This will mean that the amount withdrawn may be more or less than the amount you requested. You can also request to withdraw some or all of your investment without selling the Units by requesting that we transfer the ownership of your Units into your name or the name of your nominee as appointed by you.

Where a full withdrawal is requested from a Portfolio Account where you make monthly Payments, we will also, unless otherwise instructed, stop the Direct Debit. If you are invested in more than one Fund, and don’t tell us which Fund you wish to sell, we will be unable to process your request. Alternatively, you can make a full cash withdrawal. If you make a full cash withdrawal from a Fund in which you hold Distribution Units, any distribution and/or reclaimable tax credit that was due to be paid after your withdrawal will be paid into your Nominated Bank Account if you have one, or your IPS Cash Account.

Any reclaimable tax credit, from a Fund in which you hold Accumulation Units, that was due to be paid after a full withdrawal will be paid into the Fund you withdrew from.

B.17 ClOSiNg aN aCCOuNT Or rEPairiNg aN iSa

You may close your Portfolio Account at any time by giving us Written instructions, or instructions by any other method agreed with us. When we receive such an instruction before a Dealing Deadline, except for Monies in the Cash Reserve, Units will be sold at the price calculated at the next Valuation Point unless for any good reason we need to confirm or check your instruction, signature, or change of your personal details. Where requested, and within the timescales requested (subject to a minimum notice of ten Business Days), we can transfer Units from IPS to be held directly in your name, rather than selling them and paying you their value.

We can close your Portfolio Account by giving you one month’s prior written notice. In particular, we may need to close your Portfolio Account if changes to the Regulations mean that it is no longer feasible to continue to operate it. We may also close your Portfolio Account if we have notified you that you have failed to meet these Portfolio Investments Terms and Conditions and you have not

rectified your failure within a reasonable time or you continue to fail to meet these Portfolio Investments Terms and Conditions.

We will not be liable to you for any loss, liability or damage you may suffer if we close your Portfolio Account due to such failure by you to meet these Portfolio Investments Terms and Conditions. If you close your Portfolio Account, any distribution and/or reclaimable tax credit that was due to be paid, from a Fund in which you held Distribution Units, after the account is closed, will be paid into your Nominated Bank Account if you have one, or your IPS Cash Account. Any reclaimable tax credit, from a Fund in which you hold Accumulation Units, that was due to be paid after the account is closed will be paid back into the Fund.

Please note that if any distribution or tax credit is paid into your IPS Cash Account or back into a Fund, your Portfolio Account will then remain open.

Where two successive Direct Debit Payments are refused due to no fault on our part, we have the right to close your Portfolio Account if you don’t hold more than £20 in any of the Funds you‘re invested in. We will tell you if your ISA has or will become void because we have failed to meet the provisions of the Regulations. If your ISA becomes invalid under the Regulations, we will sell enough Units to make any payment as HMRC may demand. Unless HMRC allows the ISA to be repaired, any remaining Units will be held outside the ISA in an Investment Account but you will remain the beneficial owner.

B.18 WhEN dO WE Pay yOu fOr aNy WiThdraWalS?

When you make a cash withdrawal from a Portfolio Account, or your Portfolio Account is closed by you or us, the proceeds of the sale of Units will be sent to your Nominated Bank Account, or another bank account in your name as instructed by you, within five Business Days of the date that the last Units were sold and priced.

Please note that payment may take up to a further five Business Days to show in your bank account.

Where a withdrawal is made shortly after a Payment, the proceeds will be paid only once we are assured of cleared funds in respect of that Payment.

If a BACS or CHAPS payment is rejected by your bank then the payment will be added to your IPS Cash Account shortly after it is returned to us.

We may pay proceeds by cheque in exceptional circumstances. If the cheque remains uncashed, shortly before six months from issue the cheque will be stopped and the monies added to your IPS Cash Account.

If the proceeds of sale are to be held in your IPS Cash Account, they will be transferred to your IPS Cash Account within five Business Days of the date the last Units were sold and priced.

If you withdraw cash from the Cash Reserve, or if the Cash Reserve is closed by us, the proceeds will be sent to you within five Business Days of the date we receive the withdrawal instruction, or Portfolio Account closure.

Please note that payment may take up to a further five Business Days to show in your bank account. If a BACS or CHAPS payment is rejected by your bank then the payment will be added to your IPS Cash Account shortly after it is returned to us.

We may pay proceeds by cheque in exceptional circumstances. If the cheque remains uncashed, shortly before six months from issue the cheque will be stopped and the Monies added to your IPS Cash Account. Payment will be made within ten Business Days of the date that the last Units were sold or ten days of the date we receive the withdrawal instruction, or of the Portfolio Account closure in relation to the Cash Reserve.

We may delay payment if we have outstanding Nominated Bank Account details or we require further evidence of identity as required by law for your protection. During any payment delay of up to 30 days, the proceeds will be held in a Client Money Account and no interest will be paid.

If the payment remains outstanding for more than 30 days, we reserve the right to add the money to your IPS Cash Account shortly after this period. In the case of Direct Debit collections, payment may be deferred in relation to the last Direct Debit collection until we can be sure that Payment has been successfully collected.

For your protection payment will be made by BACS transfer. Subject to Clause 15, and the remainder of this Clause 18, payment to your Nominated Bank Account or another bank or building society account given by you is good discharge of our duty under these Portfolio Investments Terms and Conditions.

If you instruct us to make a payment to a non-Sterling bank account, payment will be made in Sterling and we will not pay any costs for currency conversion. Payments to anyone other than you will be made only to a third party who can hold client money, or on death (see Clause 20) or when transferring to another ISA account manager (see Clause 24). No interest will be earned between the date Units are sold, or the date of the withdrawal instruction in relation to the Cash Reserve, and the date any payment clears into your Nominated Bank Account, except any period that it is held in the IPS Cash Account.

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rectified your failure within a reasonable time or you continue to fail to meet these Portfolio Investments Terms and Conditions.

We will not be liable to you for any loss, liability or damage you may suffer if we close your Portfolio Account due to such failure by you to meet these Portfolio Investments Terms and Conditions. If you close your Portfolio Account, any distribution and/or reclaimable tax credit that was due to be paid, from a Fund in which you held Distribution Units, after the account is closed, will be paid into your Nominated Bank Account if you have one, or your IPS Cash Account. Any reclaimable tax credit, from a Fund in which you hold Accumulation Units, that was due to be paid after the account is closed will be paid back into the Fund.

Please note that if any distribution or tax credit is paid into your IPS Cash Account or back into a Fund, your Portfolio Account will then remain open.

Where two successive Direct Debit Payments are refused due to no fault on our part, we have the right to close your Portfolio Account if you don’t hold more than £20 in any of the Funds you‘re invested in. We will tell you if your ISA has or will become void because we have failed to meet the provisions of the Regulations. If your ISA becomes invalid under the Regulations, we will sell enough Units to make any payment as HMRC may demand. Unless HMRC allows the ISA to be repaired, any remaining Units will be held outside the ISA in an Investment Account but you will remain the beneficial owner.

B.18 WhEN dO WE Pay yOu fOr aNy WiThdraWalS?

When you make a cash withdrawal from a Portfolio Account, or your Portfolio Account is closed by you or us, the proceeds of the sale of Units will be sent to your Nominated Bank Account, or another bank account in your name as instructed by you, within five Business Days of the date that the last Units were sold and priced.

Please note that payment may take up to a further five Business Days to show in your bank account.

Where a withdrawal is made shortly after a Payment, the proceeds will be paid only once we are assured of cleared funds in respect of that Payment.

If a BACS or CHAPS payment is rejected by your bank then the payment will be added to your IPS Cash Account shortly after it is returned to us.

We may pay proceeds by cheque in exceptional circumstances. If the cheque remains uncashed, shortly before six months from issue the cheque will be stopped and the monies added to your IPS Cash Account.

If the proceeds of sale are to be held in your IPS Cash Account, they will be transferred to your IPS Cash Account within five Business Days of the date the last Units were sold and priced.

If you withdraw cash from the Cash Reserve, or if the Cash Reserve is closed by us, the proceeds will be sent to you within five Business Days of the date we receive the withdrawal instruction, or Portfolio Account closure.

Please note that payment may take up to a further five Business Days to show in your bank account. If a BACS or CHAPS payment is rejected by your bank then the payment will be added to your IPS Cash Account shortly after it is returned to us.

We may pay proceeds by cheque in exceptional circumstances. If the cheque remains uncashed, shortly before six months from issue the cheque will be stopped and the Monies added to your IPS Cash Account. Payment will be made within ten Business Days of the date that the last Units were sold or ten days of the date we receive the withdrawal instruction, or of the Portfolio Account closure in relation to the Cash Reserve.

We may delay payment if we have outstanding Nominated Bank Account details or we require further evidence of identity as required by law for your protection. During any payment delay of up to 30 days, the proceeds will be held in a Client Money Account and no interest will be paid.

If the payment remains outstanding for more than 30 days, we reserve the right to add the money to your IPS Cash Account shortly after this period. In the case of Direct Debit collections, payment may be deferred in relation to the last Direct Debit collection until we can be sure that Payment has been successfully collected.

For your protection payment will be made by BACS transfer. Subject to Clause 15, and the remainder of this Clause 18, payment to your Nominated Bank Account or another bank or building society account given by you is good discharge of our duty under these Portfolio Investments Terms and Conditions.

If you instruct us to make a payment to a non-Sterling bank account, payment will be made in Sterling and we will not pay any costs for currency conversion. Payments to anyone other than you will be made only to a third party who can hold client money, or on death (see Clause 20) or when transferring to another ISA account manager (see Clause 24). No interest will be earned between the date Units are sold, or the date of the withdrawal instruction in relation to the Cash Reserve, and the date any payment clears into your Nominated Bank Account, except any period that it is held in the IPS Cash Account.

For more information on when interest is paid on the IPS Cash Account, see Section A4.4 in the IPS Terms and Conditions. We reserve the right to deduct any outstanding fees, charges and expenses due to us from the amount due to be paid to you. In the case of Direct Debit collections, payment may be deferred in relation to the last Direct Debit collection until we can be sure that Payment has been successfully cleared.

B.19 uNClEarEd PaymENTS

If, for any reason, we cannot pay you, we will hold the money in your IPS Cash Account or a Client Money Account(s). We will take reasonable steps to contact you and if we do not hear back from you or if you have not provided us with revised payment details within six years, we may write to you at your last-known address. We will be informing you that it is our intention to no longer treat this as client money. You will have 28 days to make a claim for this money. We will then transfer this amount from the Client Money Account to us. However, we will make good any valid claims that are subsequently received.

B.20 PrOCEdurE fOllOWiNg dEaTh

For Investment Accounts held in more than one name, the Investment Account will continue in the name(s) of the surviving investor(s). Upon your death an ISA automatically terminates in accordance with the Regulations, but will be converted to an Investment Account and this will remain invested in Units. For Investment Accounts in only one name, and for all ISAs, on receipt of proof of death without proof of who is entitled to the benefits, all future distributions will be used to buy additional Distribution Units. Any amount held in the Cash Reserve will be transferred to the IPS Cash Account.

For Investment Accounts in only one name, and for all ISAs converted to Investment Accounts, after we have received all the documentation we reasonably need to establish proof of death and proof of entitlement in order to finalise the arrangements, we require a valid instruction from your personal representatives to sell the Units. On receipt of a valid instruction, we will sell the Units at the next Valuation Point as long as we receive the instruction by the daily Dealing Deadline.

The proceeds together with any amount in your IPS Cash Account will then be sent to your personal representatives within five Business Days.

Please note that payment may take up to a further five Business Days to show in your representative’s bank account. If a BACS or CHAPS payment is rejected by your representative’s bank then the payment will be added to your IPS Cash Account shortly after it is returned to us.

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We may pay proceeds by cheque in exceptional circumstances. If the cheque remains uncashed, shortly before six months from issue the cheque will be stopped and the Monies added to your IPS Cash Account. If any tax credits were added to your Portfolio Account after the date of your death, a sum equal to these credits will be deducted from the Portfolio Account and paid to HMRC and your personal representatives will receive the cash value of the Portfolio Account subject to that deduction. If your personal representatives require a Portfolio Account to be opened with us in another investor’s name, we may require verification of identity from the new Portfolio Account holder.

The payment of any proceeds or the setting-up of any new Portfolio Account may also be delayed until after we have verified the identity of the executor. These Portfolio Investments Terms and Conditions shall be binding on your personal representatives.

B.21 ChaNgiNg ThE POrTfOliO iNvESTmENTS TErmS aNd CONdiTiONS

Over time, circumstances can change and this may mean (when we have a valid reason) we need to change these Portfolio Investments Terms and Conditions.

For example:

(a) Our investment rights and powers are removed or restricted.

(b) There are changes to the way we are taxed.

(c) There are changes to the way you are taxed.

(d) Exceptional circumstances make it impossible for us to do what we say we will.

(e) There are changes in laws, regulations, consumer standards, and so on.

(f) We need to respond to changes in tax rates, interest rates or the costs of providing the Portfolio Account.

(g) We add, change, or remove features of our Portfolio Investments offering.

Any changes must meet the Regulations (if appropriate) and be permitted under the Financial Services Authority Handbook. We will provide at least 30 days’ notice of any change, if that change is considered to be to your disadvantage. If you are unhappy with any such changes you can transfer an ISA (see Clause 24) or close your Portfolio Account (see Clause 17). We also reserve the right to remove any Fund from Legal & General’s Investor Portfolio Service. If a Fund is suspended by the Authorised

Fund Manager, we may hold or reject instructions to deal until the suspension is lifted. Should a Fund pay income during a period of suspension and you have instructed us to reinvest, we may not be able to fulfil your request. In the event that we are unable to fulfil your request we will communicate with you on how income will be treated.

B.22 TraNSfErriNg Our duTiES

We may appoint agents to carry out our obligations in managing your Portfolio Account as ISA/account manager, as long as this is allowed by the Regulations and the Financial Services Authority Handbook. However, we will not do so unless we are satisfied that the agent is competent to perform such tasks. We will be liable for the acts of any agents we appoint.

You consent and agree that we may assign to any Legal & General group company all or any of our rights and obligations under these Portfolio Investments Terms and Conditions. We will notify you of any such assignment.

B.23 PrOCESSiNg daTa aNd PrOvidiNg iNfOrmaTiON TO OThErS

Where you tell us that the Portfolio Account is being used in connection with a mortgage or mortgages from a named lender or lenders, then we may inform the lender(s) and any other person you permit in Writing, of any information about the Portfolio Account. These requests will be answered only on an individual basis. The Legal & General group of companies will hold and process information obtained about you as a result of your Application whether or not it proceeds, either by computer or otherwise.

B.24 TraNSfErriNg aN iSa TO aNOThEr maNagEr

You may, at any time, request that we transfer the whole or part of your ISA, including any amount in the Cash Reserve, as permitted in the Regulations, to another account manager.

The transfer will take place within such time as may be agreed between the parties subject to a reasonable business period (not exceeding 30 days) required by us to implement any instructions. If you request the transfer to be as cash, enough Units will be sold from the ISA to meet the requested Transfer Value.

If the transfer means that the remaining value of your ISA would be less than £20, we would sell all the Units and transfer the whole ISA. When we have received all the information we reasonably require to finalise the transfer by a Dealing Deadline, unless we are told otherwise, the Units will be sold at the next Valuation Point. Alternatively, where instructed, we will transfer the Units to the other

account manager provided that the other account manager will accept those Units. Where there are not enough Units in the ISA to meet this value, no sale will proceed and the other account or plan manager will be informed. Alternatively, you can request that we transfer the Units to your new ISA manager without selling the Units. In this case we will request that the Authorised Fund Manager transfers the ownership of your Units from us or the Nominee to your new manager. We will deduct any outstanding charges, or any payments that are owed to HMRC in accordance with the Regulations from the Transfer Value.

Any distribution and/or reclaimable tax credit that was due to be paid after the completion of a transfer will be paid into your IPS Cash Account, and sent to your Nominated Bank Account if you have one.

B.25 TraNSfErriNg frOm aNOThEr aCCOuNT maNagEr

We will, at our discretion and as long as we have received all the information we require to complete the transfer, allow an account to be transferred from another account manager to us.

(a) For an ISA, if the account(s) is to be transferred as cash, then this cash value must not be less than the current minimum Payment for an ISA as detailed in our current ISA transfer application (which shall be regarded as an Application for the purpose of this Clause 25).

(b) Where you wish to transfer any Fund which is available on Legal & General’s Investor Portfolio Service, you can request that we ask the other manager to transfer the ownership of the Fund to us or the Nominee. However, in the event of such a transfer, you do not have the right to cancel as described in Clause 4.

(c) The transfer date will be a date to be agreed between the previous account manager and us and within the timescales requested.

(d) If any Payments are received from your previous manager after the date of transfer, but before a Dealing Deadline it will be invested at the next Valuation Point in the same Funds and in the same proportions as the original transfer.

(e) Any cash transferred, which has been received by the Dealing Deadline, for the Fund requested, will be invested at the next Valuation Point provided we have received all the information reasonably required.

(f) Where the other manager tells us how the Transfer Value is split between the current tax year and the

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INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS 53INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS

Fund Manager, we may hold or reject instructions to deal until the suspension is lifted. Should a Fund pay income during a period of suspension and you have instructed us to reinvest, we may not be able to fulfil your request. In the event that we are unable to fulfil your request we will communicate with you on how income will be treated.

B.22 TraNSfErriNg Our duTiES

We may appoint agents to carry out our obligations in managing your Portfolio Account as ISA/account manager, as long as this is allowed by the Regulations and the Financial Services Authority Handbook. However, we will not do so unless we are satisfied that the agent is competent to perform such tasks. We will be liable for the acts of any agents we appoint.

You consent and agree that we may assign to any Legal & General group company all or any of our rights and obligations under these Portfolio Investments Terms and Conditions. We will notify you of any such assignment.

B.23 PrOCESSiNg daTa aNd PrOvidiNg iNfOrmaTiON TO OThErS

Where you tell us that the Portfolio Account is being used in connection with a mortgage or mortgages from a named lender or lenders, then we may inform the lender(s) and any other person you permit in Writing, of any information about the Portfolio Account. These requests will be answered only on an individual basis. The Legal & General group of companies will hold and process information obtained about you as a result of your Application whether or not it proceeds, either by computer or otherwise.

B.24 TraNSfErriNg aN iSa TO aNOThEr maNagEr

You may, at any time, request that we transfer the whole or part of your ISA, including any amount in the Cash Reserve, as permitted in the Regulations, to another account manager.

The transfer will take place within such time as may be agreed between the parties subject to a reasonable business period (not exceeding 30 days) required by us to implement any instructions. If you request the transfer to be as cash, enough Units will be sold from the ISA to meet the requested Transfer Value.

If the transfer means that the remaining value of your ISA would be less than £20, we would sell all the Units and transfer the whole ISA. When we have received all the information we reasonably require to finalise the transfer by a Dealing Deadline, unless we are told otherwise, the Units will be sold at the next Valuation Point. Alternatively, where instructed, we will transfer the Units to the other

account manager provided that the other account manager will accept those Units. Where there are not enough Units in the ISA to meet this value, no sale will proceed and the other account or plan manager will be informed. Alternatively, you can request that we transfer the Units to your new ISA manager without selling the Units. In this case we will request that the Authorised Fund Manager transfers the ownership of your Units from us or the Nominee to your new manager. We will deduct any outstanding charges, or any payments that are owed to HMRC in accordance with the Regulations from the Transfer Value.

Any distribution and/or reclaimable tax credit that was due to be paid after the completion of a transfer will be paid into your IPS Cash Account, and sent to your Nominated Bank Account if you have one.

B.25 TraNSfErriNg frOm aNOThEr aCCOuNT maNagEr

We will, at our discretion and as long as we have received all the information we require to complete the transfer, allow an account to be transferred from another account manager to us.

(a) For an ISA, if the account(s) is to be transferred as cash, then this cash value must not be less than the current minimum Payment for an ISA as detailed in our current ISA transfer application (which shall be regarded as an Application for the purpose of this Clause 25).

(b) Where you wish to transfer any Fund which is available on Legal & General’s Investor Portfolio Service, you can request that we ask the other manager to transfer the ownership of the Fund to us or the Nominee. However, in the event of such a transfer, you do not have the right to cancel as described in Clause 4.

(c) The transfer date will be a date to be agreed between the previous account manager and us and within the timescales requested.

(d) If any Payments are received from your previous manager after the date of transfer, but before a Dealing Deadline it will be invested at the next Valuation Point in the same Funds and in the same proportions as the original transfer.

(e) Any cash transferred, which has been received by the Dealing Deadline, for the Fund requested, will be invested at the next Valuation Point provided we have received all the information reasonably required.

(f) Where the other manager tells us how the Transfer Value is split between the current tax year and the

previous tax year, we will hold the current tax year as a separate ISA. (You should note that the banking arrangements in Clause 5 continue to apply.)

B.26 CONSOlidaTiON Of iSas

For administrative purposes we may merge the investments of your previous ISA subscriptions with new ISA subscriptions made under these Portfolio Investments Terms and Conditions.

B.27 rEgulaTOrS

Legal & General (Portfolio Management Services) Limited is authorised and regulated by the Financial Services Authority.

B.28 vErifiCaTiON Of idENTiTy

To protect you and us from financial crime, we may need to confirm your identity from time to time. We may do this by using reference agencies to search sources of information relating to you (an identity search). This will not affect your credit rating. If this fails, we may ask you for documents to confirm your identity. In certain circumstances we may need to contact you to obtain more information regarding your investment.

B.29 COmPlaiNTS aNd POliCiES

We have a procedure for handling any complaints relating to the operation of your Portfolio Account, a copy of which is available on request at the address in Clause 32. In the event you are not satisfied, you also have a right of complaint direct to the Financial Ombudsman Service. You can also request copies of the following policies:

(a) Investments held in joint names;

(b) Investments from overseas;

(c) Best execution;

(d) Locating customers without an address;

(e) How we use other companies.

B.30 COmPENSaTiON

You may be entitled to compensation under the Financial Services Compensation Scheme in the event that we cannot meet our obligations to you or in the event of insolvency of a third party. Any compensation available is dependent on the type of business and an investor’s circumstances. Most types of investment business are covered for the first £50,000. Further information is available from us or from www.fscs.org.uk

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INVESTING WITH IPS – THE INVESTOR PORTFOLIO SERVICE TERMS AND CONDITIONS54

B.31 iNfOrmiNg uS Of ChaNgES

You agree to inform us, without delay, of any change in your circumstances or status, including in particular any change of address, name, bank account or residency status. Where we do not have an up-to-date address for you, we will make enquiries to identify your new address. In order to make these enquiries, we may need to share your details with trusted external parties. If you are or become a US Person, you agree to notify us immediately. We are entitled to terminate any agreement with you under these Portfolio Investments Terms and Conditions and any other Product Terms and Conditions if you notify us that you are or have become a US Person, or if we discover that you have become a US Person.

B.32 giviNg NOTiCE

We will carry out instructions only if they are from you or your authorised representatives. Any instruction given to us must be in writing (or any other method as agreed by us). Written instructions should be sent to and will become effective only when received at:

For postal instructions:

Investor Portfolio Service Legal & General PO Box 1112 Chelmsford CM99 2UX

Or for couriered instructions:

Investor Portfolio Service Legal & General Adams House 2 Springfield Lyons Approach Chelmsford CM99 2UX

Or such other address that we tell you about after acceptance. We will carry out, then confirm any instructions unless we notify you otherwise.

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INVESTING WITH IPS – GLOSSARY 55

GLOSSARY.Accumulation unit – Type of unit you will receive if you invest for growth

Annual management charge (AMC) – Annual charge based on a percentage of the value of your investment. It pays for investment management and other fund costs

Assets – Underlying investments bought by the Fund. These can include investments such as property, company shares, bonds and Derivatives

Authorised corporate director (ACD) – The company that manages an OEIC

Benchmark – Certain Funds measure their performance against a benchmark. This could be, for example, similar Funds, a stockmarket index, or a particular interest rate

Bid price – Price at which you sell units in a dual-priced fund

Capital gains tax – A tax that may be payable on any profit you make when selling an asset or investment

Confirmation note – Confirms the details of lump sum investments, withdrawals or switches of an investment from one Fund into another

Consolidated Confirmation note – Confirms the details of transactions in the six months following an annual statement, mainly for customers making monthly investments

Corporate bond – Interest-paying loan to a company

Custodian – The custodian holds the assets belonging to the Fund on behalf of the trustee

Dealing Deadline – The time on a business day by which we must accept your instruction to buy or sell units or shares, or start the process to change Funds at the next valuation point. Unless we tell you otherwise, we need to receive your instruction one hour before the Dealing Deadline for telephone instructions, and 15 minutes for instructions through the website

Depository – The depository is responsible for looking after an OEIC Fund’s assets, and ensuring the Fund is managed within the FSA and other regulations

Derivatives – Specialist investments that a Fund can use for efficient portfolio management and to reduce some of the risks of the market. Some Funds also use derivatives to enhance investment performance

Designation – A personal reference you may add to a unit trust or OEIC holding

Distribution – The payment of income from a Fund. It will be reinvested or paid to you, depending on your instruction

Distribution date – Date on which we receive income from the income units in a Fund

Dividend – Income payment from company shares. Also refers to income payments from Funds investing mainly in company shares and/or property

Dual pricing – A method of pricing a Fund that can lead to different prices for buying and selling units

Efficient portfolio management – Efficient day-to-day management of the Fund and reducing some of the risks of the market

Equalisation amount – An amount of income already held by the Fund that is included in the unit price when you buy units. No tax is payable on this amount at your first income distribution, or if you sell units

Ex-dividend (XD) date – Date on which the Fund Manager bases their calculation of any income payable at a subsequent distribution date

Extra expenses – Variable yearly charge for other management expenses in addition to those covered by the annual management charge

FSA – Financial Services Authority (UK regulator)

FSCS – Financial Services Compensation Scheme

Fund – A unit trust or OEIC investment managed by a Fund Manager. Each Fund has a different investment aim and style

Fund Manager – Investment specialist(s) managing a Fund

HMRC – HM Revenue & Customs (UK Tax Authority)

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INVESTING WITH IPS – GLOSSARY 56

Income unit (also known as ‘Distribution unit) – Type of unit which normally pays out its income. Sometimes this income can be used to buy more units

Inheritance tax – Tax that is payable on your estate when you die

Initial charge – The entry charge is a percentage you’ll pay each time you make an investment in certain Funds or unit classes

ISA Individual Savings Account – A way of holding Portfolio Investments that has tax benefits

Key Investor Information Document (KIID) – Gives the key information you need to decide whether a Fund is right for you. You must read it before making any investment decisions

Levy – Deduction that a Fund Manager may take from anyone buying or selling units or shares in a single-priced fund to allow for the costs of buying and selling the Fund’s assets

OEIC Open-Ended Investment Company – A type of collective investment, when an investor buys shares in a Fund or sub-Fund

Offer price – Price at which you buy units in a dual- priced Fund

Ongoing charges – The charges you will pay over a year for as long as you hold your Portfolio Investment. These consist of the annual management charge and extra expenses

Performance fee – The performance fee is a payment to the Fund Manager from some Funds when they perform better than a benchmark

Portfolio Investment – The products covered in this brochure, unit trusts and OEICs

Prospectus – A document of detailed technical information about the Fund produced by the Fund Manager

Risk Meter – Shows the relative risks of the Funds we offer on a scale. Compiled by Legal & General, based on our view of the risk of each Fund, it shows a level of risk from minimum to high risk, based on how much a Fund value can change and how likely that is to happen

Risk and reward profile – Section of Key Investor

Information Document that shows you the Fund’s level of risk in relation to the potential reward. It also shows any specific risks that apply

Share – Each OEIC Fund is divided into individual shares that you buy or sell. ‘Share’ also refers to a company share (or ‘Equity’) that is a unit of ownership of a company on the stockmarket

Single pricing – A method of pricing a Fund where the price for buying and selling units is always the same

Spread – Difference between the prices at which you buy and sell units in a dual-priced Fund

Stamp Duty Reserve Tax – Monthly tax that unit trusts investing in UK company shares have to pay

Transaction form – A form used to give an instruction to add money, change a regular monthly payment, change Funds or change unit type. These are available from Customer Services, online if you’re registered for online servicing, and from your adviser if you have one

Trustee – The trustee is responsible for looking after a unit trust Fund’s assets, and ensuring the Fund is managed within the FSA and other regulations

Unit – Each unit trust Fund is divided into individual units that you buy or sell

Unit classes – Different categories of unit for different types of investor

Unit trust – A collective investment where an investor invests by buying units in a Fund

Unit trust manager – The company that manages a unit trust

Valuation point – The time each business day when the Fund Manager works out the unit price of a Fund based on the value of all its assets, and processes any transactions.

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NOTES – INVESTING WITH IPS 57

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Contact us the way you prefer:

Face to face – If you have a financial adviser, you can discuss your investment with them

Post – Write to Investor Portfolio Service, PO Box 1112, Chelmsford CM99 2UX

Phone – 0845 272 0089*

Email – [email protected]

Online – www.onlineips.co.uk

*We’re open Monday to Friday, 9.00am to 5.30pm. Calls may be recorded and monitored. Call charges will vary.

Legal & General (Portfolio Management Services) Limited Registered in England No. 2457525 Registered office: One Coleman Street, London EC2R 5AA

We are authorised and regulated by the Financial Services Authority

W13623 07/12 H132532