We are updating our banking and investment terms and conditions to reflect changes to how we operate your account.

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1 Guide to Changes We are updating our banking and investment terms and conditions to reflect changes to how we operate your account. These changes are being made to comply with: (i) the new regulation of payments, personal current accounts and some savings accounts, (Second Payment Services Directive ( PSD2 )), which comes into effect from 13 January 2018; and (ii) the new regulation of investment services, (Markets in Financial Instruments Directive ( MiFID II )), which comes into effect from 3 January We are also updating our terms to reflect changes we are making to our products. Should you require any further information in relation to PSD2 or MiFID2, please contact your Relationship Manager. The changes made to the Fee Schedule will come into effect from 13 January Please take time to read this guide to understand what is going to change and how it might affect you.

2 Changes to the current Important information about our services Effective from 3 January 2018 Definitions We now define certain investment related words in our terms, for example Limit Order and Trading Venue. You can see all definitions and their full meaning in clause 2 of the updated terms. Regulation We have updated the information provided to you on our regulatory status, our corporate information and the contact details of the relevant regulatory bodies in clause 3. Our products and investment services Additional information about the types of investments we provide our services in relation to has been added to clause 13. We have also clarified your rights and our obligations in regards to your investments in clause Your obligation to provide information You will be required to notify us as soon as possible, and in any event within 30 days, if there is a material change in any information you have previously provided to us. This requirement is set out in clauses 14 and 34. Joint Account Holders If you are a Joint Account Holder we will require information regarding your knowledge and experience before receiving any investment services from us. Previously, if we did not hold such information, Joint Account Holders may have been entitled to receive a more limited range of investment services. Clause has been updated with this new requirement. Investment advice Citi continues to offer restricted advice (as opposed to independent advice ), which means that we will advise and make a recommendation to you that is based on (and takes into account) limited types of products, or products from one company or a limited number of companies (which may include another Citigroup Organisation or an entity with close legal or economic links to a Citigroup Organisation). In clause 16 of the updated terms, we have clarified that where we provide you with investment advice in relation to an investment product that we offer, we will assess the suitability of the investment. This is to enable us to act in your best interests. Such assessment will be based on the information you provide to us and therefore it is important you provide accurate, up-to-date and complete information to us. We have also clarified that we will provide you with a Suitability Letter that includes an outline of the advice given, including how the advice meets your objectives and personal circumstances, generally prior to the transaction. In addition, we have made clear the approach we may take to assessing suitability in respect of Joint Accounts, or where a power of attorney has been appointed on an Account. In such circumstances, we may assess only one of the Joint Account Holder s, or the attorney s, knowledge and experience when assessing the suitability of the investment. This may result in you holding investment products we consider to be suitable for you but which are not necessarily aligned with your own knowledge or experience. Execution services We are required to obtain certain consents from you regarding how your investment orders will be executed from 3 January If you currently hold an investment product with us, we will be contacting you to obtain these consents in the coming weeks. Clause 18 now reflects the fact that on your instruction (which may be given as a standing instruction), where you provide us with a Limit Order, we shall not be obliged to publish that Limit Order if it cannot be immediately executed under prevailing market conditions. We have also included provision for the execution of your orders outside a Trading Venue, however we must have your consent to do so. We will treat you as having consented to the Best Execution Policy (which will also be sent to you in the coming month) if we receive an order from you, or execute a transaction with or for you. Custody services We have updated clause 19 to clarify what actions we are authorised to take in relation to your Assets. Unless otherwise agreed with you or required by Applicable Law, we shall have no obligation to take up any rights, exercise any conversion or subscription rights, deal with any take over or other offers or capital reorganisations or exercise any voting rights over any securities or other investments. Fees, expenses and benefits From 3 January 2018, we are required to provide you with appropriate information regarding all costs and related charges, including the costs of investment and ancillary services (including the cost of advice, if relevant), the cost of the investment recommended or marketed and third-party payments. We will be providing you with an Investment Costs and Charges Illustration, along with our updated Best Execution Policy, in the coming month. The information about our costs and charges will be aggregated, which means we show you the cumulative effect of costs and charges on the return on your investment. You are entitled to request an itemised breakdown of your costs and charges. The rules on the provision or receipt of monetary (e.g. commissions) or non-monetary (e.g. services) benefits in connection with the investment or ancillary services we provide to you have changed. In the updated terms, where we are permitted to do so under Applicable Law, we may give or receive monetary or non-monetary benefits to or from (or share them with) other Citigroup Organisation or third parties. Where we do so, you will be notified where required by Applicable Law. Clause has been updated to reflect this change. 2

3 Conflicts of interest We have updated clause 25 to reflect changes to the requirements in relation to identifying and preventing or managing conflicts of interest. A revised summary of our Conflicts of Interest Policy is included in Section 2 of the updated terms. In the event that the arrangements under our Conflicts of Interest Policy to prevent or manage a particular conflict are not sufficient to ensure with reasonable confidence that the risk of damage to your interests will be prevented, we will provide you with a specific description of the conflicts of interest and explain the general nature and/or sources of the conflicts of interest, as well as the risks that arise as a result of the conflicts of interest and the steps taken to mitigate those risks. The specific description will be in sufficient detail to enable you to make an informed decision as to whether to proceed. Investment instructions cut-off time We have increased the cut-off times for processing your investment instructions from 4.30pm to 5pm (UK time) in clause This remains subject to any earlier cut-off times applicable to specific investments. Packaged retail and insurance-based investment products We have added in clause 33.2 to state that where we advise on or sell you certain packaged retail and insurance-based investment products ( PRIIPS ), we are generally required to provide you with a key information document ( KID ) free of charge in good time before you are bound by any contract or offer relating to the relevant product. The KID document is produced by the product manufacturer. Specifically, we may only provide a KID to you in a format other than paper if we have your consent to do so. If you currently hold an investment product with us, we will be contacting you to obtain this consent in the coming weeks. Where the key information document is provided by means of a website or by using a durable medium other than paper, you can request a paper copy free of charge through your Relationship Manager. Where you have consented to the provision of a KID by or website and the KID has been provided in this manner, you agree and acknowledge that you have regular access to the internet. Furthermore, the provision of a KID to you does not constitute an offer or a recommendation to enter into any transaction, to participate in any trading strategy or to invest in any PRIIP. Unless we are the product manufacturer, we do not give any representation, warranty or undertaking as to the accuracy or completeness of the information contained in the KID we provide to you, as the KID is produced by the relevant product manufacturer. Your information We have added clause and to clarify how we may process and share information about you, your Account(s) and information about third parties that you share with us. This does not reflect a change to the way we currently process and share such information, we have simply included reference to this in the updated terms. Monitoring and recording We have now made clear in clause 34.8 of our updated terms that all telephone conversations and electronic communications (e.g. ) between you and us that result or may result in investment transactions will be recorded. In some cases, there may be no warning that this is the case. You can request a copy of such recorded telephone conversations or electronic communications for a period of five years from the date of the communication (or, in some cases, where requested by the Financial Conduct Authority (or other competent authority), up to seven years from the date of the communication). This does not reflect a change in the way we manage or operate these accounts, we have simply clarified the position in your terms and conditions. Tax and tax reporting obligations We have added clause to the updated terms to make it clear that it is your responsibility to comply with all applicable tax and tax reporting obligations with respect to your business relations and/or account(s) with Citi. Further, clause 24.4 sets out that in the circumstance you are obliged by law to deduct or withhold any sum of payment to us, you will increase the amount of the payment so that the net amount received by us will equal the amount due to us. Dual Currency Placements We will no longer offer services in relation to Dual Currency Placement investments and therefore have removed reference to this product in the updated terms. Bank Recovery and Resolution Directive We have added information regarding the Bank Recovery and Resolution Directive (BRRD) to Schedule 2. This directive establishes a common approach within the European Union to effectively address risks posed by banks and investment firms. Exchange Traded Notes and Exchange Traded Commodities We have included two new clauses relating to information on Exchange Traded Notes (clause 5) and Exchange Traded Commodities (clause 6) in Schedule 2. 3

4 Changes to the current Important information about our services Effective from 13 January 2018 Definitions We have updated and defined some new terms in clause 2. You can see all definitions and their full meaning in the updated terms. Unarranged overdraft interest rate From 13 January 2018, we will no longer charge you interest if you enter into an unarranged overdraft with us. Currently there is an unarranged interest rate of 5.1% EAR / 5% gross p.a. Clause has been updated to reflect this change. Refunds for misdirected payments If you ask us to make a payment to an account at another bank in the EEA and that bank says it did not receive the payment, we will refund the amount of the payment and return your account to the position it would have been in if the payment had not been made, except in the following cases: (i) there was a mistake in any of the details contained in the instruction you gave us that are needed to identify the recipient (if this is the case, we will make reasonable efforts to recover the funds, and will charge you a reasonable amount to cover our costs in doing so. We will tell you the amount of the additional charge before we take the action); or (ii) we can show that the payment was received by the other person s bank. In this case, that bank is required by law to make the payment immediately to that person. From 13 January 2018 we will do this for payments within the EEA regardless of the currency of the transaction. Previously this only applied to transactions within the EEA made in EEA currencies. Clause 5.15 has been updated to reflect this change. Payments out of your account In clause 6, we have clarified that all payments are subject to limits and security procedures at our discretion. We have also highlighted that it is important that the information you provide us to make a payment is accurate and we will not be liable for loss or delay if it is incorrect. Corrections to your account for late payments If we are late in executing a payment that you instruct us to make, you may now ask us to contact the recipient s bank and ask them to credit it as if it had been received on the correct day. We have added clause 6.23 to reflect this new requirement. Similarly, we may now, if requested by the bank of someone trying to make a payment to you that has executed that payment late, credit your account as if we received the payment on the correct day. We have added clause 6.8 to reflect this new requirement. If we are told (for example, by another bank) that a payment has been made into your account by mistake, we may provide information about the transaction to the paying party s (the sender s) bank if requested to enable them to trace the payment. We will give you written notice that we have done this. Furthermore if you do not agree to return the payment we may provide the sender s bank with your details if requested so that the sender may contact you directly. Such details may include your name, and your address or address. We have updated clause 6.22 to reflect this. Third-party payment service providers We have added a new clause 7 to our updated terms to tell you about your rights and obligations if you choose to use a third-party payment provider (or TPP ). A TPP is another company who is allowed (either because they are authorised by the Financial Conduct Authority ( FCA ) or another European Regulator or because you have allowed them) to access information and initiate payment orders on payment accounts operated by other providers (such as us and other banks, building societies and credit card issuers). From 13 January, you can instruct a TPP to access information and initiate payment orders on your payment accounts with us, provided the TPP identifies itself to us and acts in accordance with its relevant regulatory requirements. If you do this, we will share your information with the TPP and we will treat any instruction from a TPP as if it was from you. Before using a TPP it s important you check the third party is authorised by the FCA or by another European Regulator, which should be obvious from their website or app. If you ask a TPP to instruct us to make a payment and they don t, we won t be responsible for your payment not being made. We will not have a direct relationship with any TPP you instruct, so if you wish to revoke an on-going consent granted to a TPP to access your account, you should instruct that TPP directly to cancel your consent. If you have a joint account, each of you can consent to a TPP accessing your account information and/or instructing us to make payments from your account. Either of you can revoke any on-going consent granted to a TPP. You will need to contact the TPP in order to cancel your consent. If you give your security details to a third party that isn t authorised, we ll have to assume it s you that s authorising us to give access to information about your accounts and you ll be responsible for any payments made as a result. We may refuse to allow a TPP to access your account where we are concerned about unauthorised or fraudulent access by or through that TPP. If we do this, we will tell you that we intend to deny access and give our reasons for doing so beforehand, unless it is not reasonably practicable, in which case we will tell you immediately afterwards. If we deny access to a TPP, we must also tell our regulator that we have done so. Unauthorised transactions We have amended clause 10 of the terms that sets out what happens if your account is used without your authorisation. As before, when we refer to a Payment Instrument we mean something unique to you and which you can use to make transactions on your account and to give us instructions, such as: a plastic card we give you to use in connection with your accounts or other physical device; a set of procedures (such as a PIN, password, security key or biometric data); or a combination of two or more of these (e.g. a Card used with a PIN). 4

5 Your liability to us In the event that you lose your Payment Instrument or it is stolen or misappropriated, you are still liable for its use, and we are not responsible for any claim for unauthorised or incorrectly executed transactions, until you tell us that it has been lost, misappropriated or stolen. However, if you are a UK resident, from 13 January 2018 you will only be liable up to a maximum of 35 (currently 50) and if you are a non-uk resident you will only be liable to a maximum of 50 (currently 75), for transactions based on the use of that Payment Instrument that you did not authorise yourself, regardless of how many transactions there are, unless: (a) it would not have been reasonably possible for you to discover the loss, theft or misappropriation of your Payment Instrument before those transactions were made; or (b) we are responsible for the loss of your Payment Instrument, in which case you will not be liable for that amount. Additionally, from 13 January 2018, unless you have acted fraudulently you will not be liable for any transactions based on the unauthorised use of your Payment Instrument where: (i) the Payment Instrument has been used to make a payment remotely (for example, online or by telephone); or (ii) we were required to authenticate you for the relevant transaction(s) in the way required by Applicable Law, but did not. This is in addition to cases where we have failed at any time to provide you with the means for notifying us of any claim for unauthorised or incorrectly executed transactions. Your remedy for an unauthorised payment After 13 January 2018, your remedy for an unauthorised payment will depend on whether or not your account was overdrawn at the time the unauthorised payment was taken. If your account was in credit at the time of the unauthorised payment but the payment took it into overdraft, the part of the payment in credit will be treated separately for these purposes from the part in overdraft. We have amended clause 10 to reflect this change and we set out below how this will impact you. Where you dispute a transaction, we may investigate your claim and, unless we are reasonably satisfied that you did authorise the transaction, we will refund the amount of the payment and where applicable restore your Account to the position it would have been in had the disputed transaction not taken place as follows: if your account is overdrawn, we will refund your account as soon as we are reasonably satisfied that you are entitled to the refund; if your account is in credit, we will refund your account by the end of the next Business Day after we become aware of the unauthorised payment. In this instance, we are entitled to carry out an investigation if there are reasonable grounds for us to suspect that you have acted fraudulently, or we can show that you ve acted deliberately or have been very careless with the personalised security features of your Payment Instrument or your account. In both cases, if you notify us that a payment was not authorised by you, we will refund to your account: the amount of the payment; any fees, and/or interest and charges directly incurred on the account as a result of the payment or which would not have been incurred; and any interest that would have been earned on the account, had the unauthorised payment not been made. We will not refund you in any circumstances if: (i) you authorised the transaction; (ii) someone else used your Payment Instrument or your account with your agreement; or (iii) you have acted fraudulently. If your account is in credit, we will also not refund you if: (i) someone else used your PIN, account passwords or other security information with your agreement; (ii) you have deliberately or very carelessly failed to keep the personalised security features of your Payment Instrument or your account safe; or (iii) you failed to tell us the transaction was unauthorised within 13 months of the date on which the transaction occurred or ought to have occurred, unless we have failed to make available information on the transaction as required by Applicable Law. If we refund the amount of the payment to you and following an investigation we determine that any of the above circumstances apply, we will reverse the refund. We will notify you before we do this. Statements Monthly statements We have amended clause 26.1 of our updated terms to state that we will provide your statement for all your Accounts on a monthly basis. Therefore if you have previously opted to receive your statement on a quarterly, six-monthly or annual basis, from January 2018, you will receive it on a monthly basis. If you currently receive your statement each month, you will not see a change to your statement frequency. Issuing your monthly statement If you currently receive your statement at, or shortly after, the end of each month you will not notice any change. If, however, you currently receive your statement during the month (covering transactions for part of one month and part of another month), you will receive your statement at, or shortly after, the end of each month. Below is a summary of what to expect in the coming months if this applies to you: You will receive your December 2017 statement as normal, covering the period of transactions you would expect on your December 2017 statement. Your next statement will be sent to you at the end of December 2017, covering transactions for the remaining part of December 2017, plus any interest for this period, if applicable. Your next monthly statement will be sent to you at the end of January 2018, then end of February 2018 and so on. Receiving your monthly statement We have also amended clause 26.2 of our updated terms to state that we will provide your statement in one of the following electronic forms if you are enrolled for E-Statements: (a) by a statement to view through Citi Online, in which case we will send you an to advise you that your statement is ready for you to print or save; or (b) by a password protected PDF statement which will be ed to you. If you are not enrolled for E-Statements, we will continue to provide the statement to you in paper form. This does not reflect a change to the way we currently send you your statement, we have simply clarified this in our updated terms. 5

6 Contacting you in the event of fraud or security threats We have added clause 31.2 to tell you that if we think your account is at risk from fraud or a security threat we will contact you in one of the ways we would normally contact you, including by phone or SMS. This does not reflect a change to the way we would currently contact you in such circumstances, we have simply clarified this in the updated terms. It s therefore important we hold the most up-to-date contact details for you, which can be updated by logging in to Citi Online, calling CitiPhone or asking your Relationship Manager, if applicable. Security measures We will be required to use enhanced security measures when you access your account online, or make electronic payments. This means, in order to securely authenticate you, we may introduce changes to the security processes we ask you to use when making payments or accessing your account online. You will be required to comply with any security processes we tell you about, and so we have added clause to reflect this requirement. How we handle information about you We will be required to obtain your explicit consent to us accessing, processing, and retaining any information you provide to us, for the purposes of providing payment services to you. You have already provided us with this consent at the time you opened your account with us. We are amending our terms at clause 34.2 to confirm this. Use of mobile phone number and fax Clause regarding the definition of Citi Debit Card payments does no longer consider fax as a method of payment. In addition, we have updated clause 31.1 to reflect the fact that we will no longer send any notice or other communication to you by fax. We have also clarified that we may contact you using your mobile phone number and through push notifications sent on the Citi Mobile UK app. Updated correspondence details Our London correspondence address has been updated throughout the document. We have also updated the address and telephone number for the UK Financial Services Compensation Scheme (FSCS) in clause Israeli Shekels We have removed reference to Israeli Shekels (ILS) throughout the document as we will no longer offer this currency. 6

7 Changes to the current Fee Schedule Effective from 13 January 2018 SWIFT transfer charges The way we treat payments made to or from a bank outside the European Economic Area* ( EEA ) will change, including payments in non-eea currencies. For payments within the EEA in non-eea currencies, you will no longer be able to pay charges for the person you re making a payment to, or request that they pay our charges. For all payments outside the EEA currently if we use an intermediary bank, and they impose a charge, this may be taken from your account separately. We have amended our terms so that intermediary bank charges imposed by our intermediary bank will no longer be applied. Any fees imposed by the beneficiary bank or their intermediary bank will continue to be charged in the way we describe in our terms. Clause 1.2 has been updated to reflect this change. *EEA means all the member states of the European Union and Iceland, Norway and Liechtenstein. Unarranged overdraft interest rate We will no longer charge you interest if you enter into an unarranged overdraft with us. The unarranged interest rate of 5% gross per annum/ 5.1% EAR will be reduced to 0% from 13 January We have updated clause 5.2 to reflect this change. Dual Currency Placements We have removed reference to Dual Currency Placements in the document as we no longer offer this product. 7

8 Citibank N.A., London Branch is authorised and regulated by the Office of the Comptroller of the Currency (USA) and authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Our firm reference number with our UK regulators is Citibank N.A., London Branch is registered as a branch in the UK at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB. Registered number BR Citibank N.A. is incorporated with limited liability in the USA. Head office: 399 Park Avenue, New York, NY 10043, USA. Citibank N.A CITI, CITI and Arc Design are registered service marks of Citigroup Inc. Calls may be monitored or recorded for training and service quality purposes L 1017