Policy Provisions of Wealth Amplifier Investment Plan

Transcription

1 This document sets out the legal terms and conditions of your contract with Standard Life (Asia) Limited. Policy Provisions of Wealth Amplifier Investment Plan Wealth Amplifier Investment Plan is a single premium investment-linked life insurance contract provided by Standard Life (Asia) Limited. Standard Life (Asia) Limited is an authorised insurer in Hong Kong authorised to write class A, class C and class I of long term business. Its registered office is at 40/F, Tower 1, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong. Standard Life (Asia) Limited takes full responsibility for the accuracy of the statements made and information contained in these policy provisions at the date of publication. If you pay the total amounts shown in the Policy Schedule which are due, we will pay the benefits of the Policy to you or any other person who is entitled to receive them subject to the terms and conditions set out in this document and any additional terms and conditions in the Policy Schedule or in any endorsement. Contact Details Standard Life (Asia) Limited 40/F, Tower 1, Times Square 1 Matheson Street, Causeway Bay Hong Kong Telephone: (852) Fax: (852) Website: cs@standardlife.hk The entire contract between you and us is constituted by the terms and conditions set out in this document, the enclosed Policy Schedule and endorsements, your application for this Policy, any medical evidence received by us in respect of the Life Insured. 1 DEFINITIONS In these policy provisions: Words in the singular include the plural and vice versa (unless the context otherwise requires). Words in the masculine gender include the feminine and vice versa (unless the context otherwise requires). Account means Initial Contribution Account or Additional Contribution Account. Additional Contribution means the ad hoc single investment amount, at your request, payable under this Policy. Additional Contribution Account means a notional account set up for book-keeping purpose to record the allocation of the Additional Contribution to your Fund(s). Administration Fee means the administration fee set out in policy provision 7. Advisory Fee means the fee shown in the Policy Schedule as the advisory fee. Beneficiary means the person or persons entitled to the proceeds of Death Benefit of this Policy. Customer Protection Declaration means the customer protection declaration required to be completed pursuant to The Code of Practice for Life Insurance Replacement to prevent twisting of life policies. The declaration is in the form attached to the application form provided with this Policy. Death Benefit means the proceeds payable on the death of the Life Insured for single life policies (or last surviving Life Insured for joint life policies). Establishment Fee means the establishment fee set out in policy provision 7. Exit Charge means the exit charge set out in policy provision 7. Fund means a fund created and/or maintained by us which is opened for the allocation of your Investment Contents under this Policy. The terms of Fund and Investment Choice can be used interchangeably. Fund Account, in respect of each Fund under the Policy to which your Investment Contents are allocated, means a notional book-keeping record of the Units allocated to you in respect of that Fund. Fund Account Value means the value of your Fund Account in respect of each Fund on each Valuation Day which shall be calculated as the Unit Price of that Fund on that Valuation Day multiplied by the number of Units then credited to your Fund Account in respect of that Fund. Fund Business Day means, in relation to a Fund which invests in a collective investment scheme, each day in which shares or units in that collective investment scheme are valued and may be issued or redeemed. Fund Switch means the switching, at your request, of all or part of your Fund Account Value with respect to any of the Funds to one or more of the other Funds under this Policy. Hong Kong Business Day means each day (other than a Saturday, Sunday or public holiday) on which banks are fully open for general business in Hong Kong. Initial Contribution means the amount of contribution shown in the Policy Schedule as the initial contribution. Initial Contribution Account means a notional account set up for book-keeping purpose to record the allocation of the Initial Contribution to your Fund(s). 1

2 Investment Choice Charge means the investment choice charges set out in policy provision 7. Investment Contents means Initial Contribution and Additional Contribution. Large Value Bonus means the large value bonus set out in policy provision 7. Life Insured means the person named in the Policy Schedule as the life insured. Policy means this Wealth Amplifier Investment Plan policy. Policy Account means the Initial Contribution Account and Additional Contribution Account under this Policy. Policy Anniversary means the same day and month in each year as Policy Start Date, for each year this Policy remains in force. Policy Currency means the currency shown in the Policy Schedule, in which HKD means HK dollar, USD means US dollar, GBP means Pound Sterling, JPY means Japanese Yen and EUR means Euro. Policy Issue Date means the date shown in the Policy Schedule as the policy issue date. Policy Maturity Date means the date shown in the Policy Schedule as the policy maturity date. Policy Month means a calendar month starting from the same day in each month as the Policy Start Date, for each month this Policy remains in force. Policy Owner means the person named in the Policy Schedule as the policy owner. Policy Schedule means the policy schedule attached to this Policy. Policy Start Date means the date shown in the Policy Schedule as the policy start date. Regular Withdrawal means a sequence of Withdrawals, at your request, on a regular basis and in a pattern agreed with us, by completing the relevant form provided by us and returning it to us. Surrender means the surrender of your Policy. Switching Fee means the switching fee set out in policy provision 7. Unit, in respect of a Fund, means notional units of that Fund. Unit Price, in respect of a Fund, is the price per Unit of that Fund as determined in accordance with policy provision Valuation Day, in respect of a Fund, means each day which is a Hong Kong Business Day and (if relevant) a Fund Business Day. Withdrawal means the withdrawal, at your request, of part of your Fund Account Value in respect of any Fund. We, us, our or Company means the Standard Life (Asia) Limited. You or your means the policy owner of this Policy as shown in the Policy Schedule as the policy owner. 2 GENERAL PROVISION 2.1 Applicable Law and Jurisdiction This Policy is governed by and shall be construed in accordance with the laws of Hong Kong Special Administrative Region. The courts in the Hong Kong Special Administrative Region shall have non-exclusive jurisdiction to settle any disputes and claims that arises out or in connection with this Policy. 2.2 Cooling-off Period You may cancel this Policy within 21 days from the earlier of the date of delivery of the Policy or the date of issue of a notice informing you or your representative about the availability of the Policy and the expiry date of the cancellation rights described in this provision. If you want to cancel this Policy, your request to cancel must be in writing, signed by you and received directly by us at: Standard Life (Asia) Limited 40/F, Tower 1, Times Square 1 Matheson Street, Causeway Bay Hong Kong within 21 days after the delivery of the Policy or issue of the aforementioned notice to you or your representative, whichever is the earlier. When we receive your written request we will refund the Initial Contribution and Additional Contribution paid without interest, from which we may deduct a market value adjustment charge to cover any investment loss resulting from realising the value of any assets acquired through our investment of any premiums paid at that time. No refund of the Initial Contribution and Additional Contributions (if any) will be paid if payment in respect of a claim has been made. 2.3 Payment Method You can pay us the Initial Contributions and Additional Contributions with payment methods determined by us at the time of processing and set out in our application documents provided to you. All amounts payable to the Company are payable at the Company s registered office in Hong Kong or at any other place designated by us. 2.4 Currency of Payment Policy payments shall be made in a Policy Currency. We may accept the payment in currencies other than the Policy Currency in our discretion. Such payment will be converted to the Policy Currency at the prevailing exchange rate (as determined by us) on the date the payment is processed by us. 2.5 Changed Circumstances We can alter or modify these policy provisions, at any time without your consent while the Policy remains in force if: it becomes impossible or impracticable to carry out any of the policy provisions as a result of changes in the law or other circumstances beyond our control; or tax rules are changed; or we have to pay a government levy. 2

3 We will send you a notice explaining the change to your last known address. 2.6 Address to which Notices Sent Any notice to be given under this Policy will be sent by post to your latest address as notified to us, and will be deemed to have been received by you within 48 hours of posting. 2.7 Policy Termination This Policy will automatically terminate on the earliest of the following: the proceeds of Death Benefit is paid; or the value of Policy Account after the Withdrawal or Regular Withdrawal is less than the minimum policy value in effect at the time; or the effective date of Surrender. 2.8 Rounding We may reasonably round any calculations by an adjustment of not more than 4 decimal places. Rounding adjustments include, but not limited to, the determination of charges, Unit, and Unit Price. 3 OWNERSHIP PROVISIONS 3.1 Policy Ownership Subject to the rights of any irrevocable Beneficiary referred in policy provision 3.2 and assignment referred in policy provision 3.3, you have all rights of ownership in this Policy while it is in force. Where there are two Policy Owners under this Policy: (c) (d) 3.2 Beneficiary any transaction requiring a request by the Policy Owner will require a request to be made jointly by both of you; any proceeds of Death Benefit payable to you as Policy Owner will be evenly split; if any one of you predeceases the other Policy Owner, all the rights, title, and interest in the Policy as Policy Owner will automatically accrue to the surviving Policy Owner; and if both of you die simultaneously, we will treat as if the person who is older by age had died before the person who is younger by age, subject to the terms of this Policy. During the lifetime of the Life Insured for single life policies (or last surviving Life Insured for joint life policies), a Beneficiary has no right to deal in any way with this Policy. The proceeds of this Policy shall be paid in Policy Currency to the nominated Beneficiary or, if there is being no nominated Beneficiary, to you or, if you are deceased, to the appointed executors or administrators of your estate, as the case may be. The interest of any Beneficiary under this Policy who predeceases the Life Insured shall vest in you and the interest of any joint Beneficiaries who predeceases the Life Insured for single life policies (or last surviving Life Insured for joint life policies) shall vest in the surviving Beneficiaries equally. If any Beneficiary dies simultaneously with the Life Insured for single life policies (or last surviving Life Insured for joint life policies), the proceeds of this Policy shall, unless otherwise provided in the application or in a written request, be paid to the same payee or payees and in the same manner as if the person who is older by age had died before the person who is younger by age. You may, during the lifetime of the Life Insured for single life policies (or last surviving Life Insured for joint life policies) and while this Policy is in force, change the Beneficiary of this Policy by providing to us a written notice in a form satisfactory to us. Once received by us, such change shall be effective immediately. If you have an irrevocable Beneficiary designated in the Policy, he must agree in writing to you changing the Beneficiary and/or percentage entitlement in the Policy. 3.3 Notice of Assignment If you transfer your legal rights under this Policy to someone else ( assignment ), we must receive formal notice that the Policy has been assigned. This notice must be sent to our registered office. We will not be bound by any assignment until we receive formal notice that the Policy has been assigned, nor will we be responsible for the consequences, validity or effect of any attempted or purported assignment. 4 BENEFIT PROVISIONS 4.1 Death Benefit If the Policy remains in force and we have received satisfactory proof of the Life Insured for single life policies (or last surviving Life Insured for joint life policies) s death, we will pay out the proceeds of Death Benefit in the Policy Currency to the person or persons entitled within 15 Hong Kong Business Days after the Valuation Day (according to the latest Valuation Day of the Funds under the Policy Account) immediately following the date on which after we receive all relevant documentation completed to our satisfaction. We may also require other documents or information that may be relevant to the material facts the Life Insured for single life policies (or last surviving Life Insured for joint life policies) was required to provide at the time of application. Such payment will discharge all our obligations under this Policy. If there is more than one Life Insured named in the Policy Schedule, the Death Benefit will be paid on the death of the last surviving Life Insured. Only one Death Benefit is payable in this Policy. The proceeds of Death Benefit under this Policy will be 101% of the surrender value of your Policy Account in accordance with policy provision 10. No interest is payable in respect of the period between the effective date of claim and the date of payment. 3

4 The Valuation Day for the Units standing to the credit of your Policy will then be the next Valuation Day immediately following our receipt of the claim form. Once the Death Benefit has been paid our obligations under this Policy shall cease and we shall not be liable for any claims made under this Policy on or after the termination of this Policy. 4.2 Deduction of Debts We will deduct all outstanding charges you owe us from the amount we pay out under this Policy. 5 CONTRIBUTION PROVISIONS 5.1 Payment of Contributions The Initial Contribution and Additional Contribution, after deduction of relevant charges in accordance with policy provision 7, will be used to purchase Units. You may pay Additional Contributions providing such contributions are above any minimum Additional Contribution limit set by us. You must use our appropriate form and meet all specified conditions in effect at that time. We will notify you if we accept your application. Units will be allocated to the relevant Fund Account in accordance with your investment allocation on the Valuation Day following the date of our receipt of your payment of Initial Contribution or Additional Contribution. The date of our receipt of your payment of Initial Contribution or Additional Contribution shall be the later of the day upon which we receive our bank s confirmation of such receipt on a cleared-fund basis of your payment or our internal processing of such payment is completed (processing time may vary depending on different payment methods). The investment allocation to any Fund is subject to the minimum allocation and our administrative rules in effect at that time. 6 FINANCIAL ADVISER Subject to our agreement you may appoint a financial adviser to act on your behalf for the purpose of making fund switching decisions for your Policy on the express understanding that you retain full responsibility for the acts or omissions of your financial adviser. For any appointment or termination of appointment of a financial adviser, you must use our appropriate form and meet all specified conditions in effect at that time. We reserve the right to make or terminate an appointment, or withhold consent to an appointment proposed by you or any other person without prior reference to you or any other person concerned. We will not be accountable for any actual or prospective loss incurred as a result of any exercise of this right. 7 CHARGES PROVISIONS 7.1 Establishment Fee In respect of the Initial Contribution Account or each Additional Contribution Account, the Establishment Fee is a percentage of the contribution allocated to the relevant Account and then divided by 12 (subject to rounding). The Establishment Fee will be applied for the first 60 months from the effective date of the relevant Account. The Establishment Fee is payable to us and will be deducted on monthly basis from the Account by redeeming the appropriate number of Units at the beginning of each Policy Month in proportion to the value of the Fund in the relevant Account. The percentage to be applied as the Establishment Fee is determined by the amount of contribution allocated to the relevant Account in Policy Currency. Amount of relevant contribution received in Policy Currency equal or greater than USD2,500; HKD20,000; GBP1,666; EUR2,500; JPY325,000 USD15,000; HKD120,000; GBP10,000; EUR15,000; JPY1,950,000 USD37,500; HKD300,000; GBP25,000; EUR37,500; JPY4,875,000 USD60,000; HKD480,000; GBP40,000; EUR60,000; JPY7,800, Investment Choice Charge Establishment Fee per annum (applies for the first 60 months) 1.7% 1.5% 1.3% 1.1% The current Investment Choice Charge is 1.2% per annum of the value of your Policy Account. The Investment Choice Charge is payable to us and will be deducted on a monthly basis from your Policy Account by redeeming the appropriate number of Units at the beginning of each Policy Month in proportion to the value of the Fund in the Policy Account. The Investment Choice Charge will be reduced by the Large Value Bonus (i.e. Investment Choice Charge minus Large Value Bonus) which is determined in accordance with the value of the Policy Account in Policy Currency at the due date of the Investment Choice Charge. Value of Policy Account in Policy Currency equal or greater than Large Value Bonus per annum USD2,500; HKD20,000; GBP1,666; EUR2,500; JPY325, % USD120,000; HKD960,000; GBP80,000; EUR120,000 or JPY15,600, % USD240,000; HKD1,920,000; GBP160,000; EUR240,000 or JPY31,200, % 4

5 7.3 Exit Charge USD360,000; HKD2,880,000; GBP240,000; EUR360,000 or JPY46,800,000 USD480,000; HKD3,840,000; GBP320,000; EUR480,000 or JPY62,400, % 0.20% The Large Value Bonus, where applicable, will be applied on a monthly basis to offset part of the Investment Choice Charge. In the case of Surrender or other events of termination of this Policy under policy provision 2.7, the Exit Charge will be applied to the Policy. This charge is payable to us. If you make a Withdrawal or Regular Withdrawal from the Initial Contribution Account or Additional Contribution Account, the Exit Charge will be applied on the encashment if less than 50% of the original contributions made to the relevant Account remains. This Exit Charge will be applied to the relevant Account to be encashed at the date of Withdrawal. The Exit Charge, in respect of each Account, is 8.5% of the amount of contribution allocated to the relevant Account at the effective date of such Account and reduced by % each month from the effective date of such Account. The Exit Charge will be zero after 60 months from the effective date of such Account. 7.4 Switching Fee There is currently no Switching Fee but this is a fee which we reserve the right to introduce and revise. The fee, if any, is payable to us and will be paid for any Fund Switch. 7.5 Administration Fee There is currently no administration fee but this is a fee which we reserve the right to introduce and revise. This fee, if any, is payable to us and will be deducted on a monthly basis from your Policy Account by redeeming the appropriate number of Units at the beginning of each Policy Month in proportion to the value of the Fund in the relevant Account. 7.6 Advisory Fee In accordance with your agreement on paying the Advisory Fee (if any) to your appointed financial adviser, the Advisory Fee will be deducted on a monthly basis from your Policy Account by redeeming the appropriate number of Units at the beginning of each Policy Month in proportion to the value of the Fund in the Policy Account. Besides the Advisory Fee, we reserve the right to alter the fees and charges in this Policy at any time with at least three months written notice, or such shorter period as the Securities and Futures Commission may approve, to you. 8 FUND SWITCH At any time while this Policy remains in force, you may request us to make a Fund Switch. The following conditions apply to Fund Switches: The amount of such a Fund Switch with respect to a Fund must not exceed your Fund Account Value in respect of such Fund. We will introduce and apply a Switching Fee as set out in policy provision 7 for a Fund Switch. However, we will not impose this fee in the event of an involuntary Fund Switch where we close a relevant Fund. The amount of any Fund Switch from a Fund will be deducted from your Fund Account Value of that Fund on the Valuation Day immediately following the date on which we receive your valid written request for such a Fund Switch. The amount of such Fund Switch, after we have deducted any applicable Switching Fee, will be added to your Fund Account Value in respect of the new Fund to which the Fund Switch is to be credited on the Valuation Day immediately following the date on which we receive the amount of such Fund Switch. To apply for the Fund Switch, you must use our appropriate form and meet all specified conditions in effect at that time. We will notify you if we accept your application. The minimum switch-out amount of each Fund Switch cannot be less than 1% of the value of the Fund Account. 9 WITHDRAWAL You may request to make a Withdrawal or Regular Withdrawal. The following conditions apply to Withdrawals and Regular Withdrawals: If this Policy is assigned to a lender as security for a loan or mortgage, the lender must agree in writing to you making a Withdrawal or Regular Withdrawal. The amount of any Withdrawal or Regular Withdrawal must not be less than the minimum amount of Withdrawal or Regular Withdrawal, as the case may be, in effect at that time. (vii) The value of the Policy Account immediately after a Withdrawal or Regular Withdrawal must not be less than the minimum policy value in effect at that time; otherwise, we will surrender the Policy and pay you the surrender value in accordance with policy provision 10. If there is more than one Account, you may designate the account from which the amount withdrawn. We will pay out the amount of any Withdrawal or Regular Withdrawal less the Exit Charge (if applicable) as set out in policy provision 7 in the Policy Currency within 15 Hong Kong Business Days after the Valuation Day (according to the latest Valuation Day of the Funds under the Policy Account) immediately after the effective date for such Withdrawal or Regular Withdrawal. The effective date of any Withdrawal or Regular Withdrawal will be the Valuation Day immediately following the date on which we receive your valid written request for such a Withdrawal or Regular Withdrawal. To apply for the Withdrawal or Regular Withdrawal, you must use our appropriate form and meet all specified conditions in effect at that time. We will notify you if we accept your application. 5

6 (viii) (ix) 10 SURRENDER We will deduct all outstanding charges you owe us from the amount we pay out under this Policy. No interest is payable in respect of the period between the effective date of Withdrawal or Regular Withdrawal and the date of payment. You may Surrender your Policy while it remains in force. The following conditions apply to Surrender: (vii) (viii) If this Policy is assigned to a lender as security for a loan or mortgage, the lender must agree in writing to you surrendering the Policy. The effective date of Surrender will be the Valuation Day immediately following the date on which we receive your valid written request for such Surrender. The surrender value of the Policy will be the value of your Policy Account less the Exit Charge as set out in policy provision 7. The Policy will automatically terminate on the effective date of Surrender. We will pay out the value of your Policy Account less the Exit Charge as set out in policy provision 7 in the Policy Currency within 15 Hong Kong Business Days after the Valuation Day (according to the latest Valuation Day of the Funds under the Policy Account) immediately after the effective date for such Surrender. To apply for a Surrender, you must use our appropriate form and meet all specified conditions in effect at that time. We will notify you if we accept your application. We will deduct all outstanding charges you owe us from the amount we pay out under this Policy. No interest is payable in respect of the period between the effective date of Surrender and the date of payment of the surrender value. 11 EXCEPTIONAL CIRCUMSTANCES In exceptional circumstances, we may not allow you to make a Fund Switch, Withdrawal, Regular Withdrawal or Surrender in order to maintain fairness and equity between those Policy owners holding and those Policy owners cancelling the Units of a Fund. We can only prevent you from making a Fund Switch, Withdrawal, Regular Withdrawal or Surrender for a continuous period of 30 days. When you do make the Fund Switch, Withdrawal, Regular Withdrawal or Surrender, we will use the Unit Prices that apply at that time. We may give you notice if any exceptional circumstances exist which would prevent you from making a Fund Switch, Withdrawal, Regular Withdrawal or Surrender. Such exceptional circumstances may include, but not limited to, the closure or suspension of dealings of the stock exchange on which that Fund is traded. 12 FUND PROVISIONS (vii) The allocation of Units of a Fund to the Policy is notional. The assets of each Fund will belong to us and you have no legal or beneficial rights or ownership over any of those assets. Units are issued in a Fund only for the purpose of calculating your Fund Account Value in respect of that Fund. The investment return of Fund is calculated or determined by us with reference to the performance of the underlying funds. The selection of the investments of each Fund shall be such as we may from time to time determine. The assets of each Fund may include a proportion of uninvested cash or other assets which produce no income. Subject to the prior approval of the Securities and Futures Commission, we reserve the right to delegate all or any of our discretion and investment powers to any person on such terms as we may determine. All interest, dividends and other income attributable to the assets of a Fund will be deposited in that Fund. We can deduct from a Fund any amounts to cover: (c) all expenses incurred directly or indirectly upon the purchase and sale of investments for the account of that Fund; all expenses incurred directly or indirectly in managing, maintaining and valuing assets in that Fund; any tax or other statutory levy or duty attributable to the investment income, capital gains or assets of that Fund. It should be noted that each of the Funds is currently invested in external underlying funds authorised by the Securities and Futures Commission ( SFC ) under Section 104 of the Securities and Futures Ordinance. SFC authorisation is not a recommendation or endorsement of the external underlying funds nor does it guarantee the commercial merits of such external underlying funds or their performance. It does not mean the external underlying funds are suitable for you nor is it an endorsement of their suitability for you. Details of terms and conditions of the underlying fund management charge of each underlying fund under this Policy are as shown in the fund booklet of the Policy and offering documents of the underlying fund. (viii) The offer price is the price you pay for a Unit to be allocated to your Policy. The bid price is the price at which we cancel a Unit from your Policy. The difference between the offer price and bid price in a Fund is the bid-offer spread which is effectively a charge which you pay to us. This charge may vary from Fund to Fund. Details of terms and conditions of the bid-offer spread of each underlying fund under this Policy are as shown in the fund booklet of the Policy and offering documents of the underlying fund. (ix) In the event any underlying fund which a Fund invests into pays dividend, we may calculate the amount which you are entitled to and distribute the dividend to you in a way at our discretion Funds All Units in a Fund will be equal in value. We may create or cancel Units in a Fund on any Valuation Day. 6

7 12.2 Borrowing At our discretion, we may borrow up to 10% of the net assets of each Fund provided that such borrowings are made only on a temporary basis. Collateral arrangements with respect to the writing of options or the purchase or sale of forward or future contracts are not deemed to constitute borrowings for the purposes of this restriction. At our discretion, we may borrow up to 10% of the net assets of each Fund to acquire property essential for the operations of the Fund, and such borrowings and those borrowings referred to in section of this provision may not in any case in total exceed 15% of the net assets of that Fund Creation and Cancellation of Units Basis of Valuation Subject to section of this provision, the Unit Price with respect to each Fund will be calculated on each Valuation Day. The Unit Price of a Fund is the amount obtained by dividing the value of the net assets of the Fund by the number of outstanding Units of that Fund in issue on the Valuation Day less any deductions provided for in policy provision The valuation of the net assets of a Fund shall be determined by valuing the assets attributable to that Fund and deducting all outstanding costs, expenses and liabilities attributable to that Fund. The assets of a Fund shall be valued on the following basis: (c) (d) (e) any unit, share or other interest in a collective investment scheme shall be valued by reference to the latest available price of such unit, share or other interest quoted at the relevant time by the manager, trustee or issuer of the relevant collective investment scheme (or if more than one price is quoted, by reference to the latest available bid price when determining value for the purpose of realising such units, shares or other interests or the latest available offer price when determining value for the purpose of issuing such units, shares or other interests); any cash in hand or on deposit shall be valued at its face value; any securities listed or traded on a recognised stock exchange or other type of regulated market will be valued at their latest available prices, or, in the event that there should be several such markets, on the basis of their latest available prices of the main market for the relevant security; in the event that the latest available price does not, in our opinion, truly reflect the fair market value of the relevant securities, the value of such securities will be determined by us based on the reasonably foreseeable sales proceeds determined by us prudently and in good faith; any securities not listed or traded on a recognised stock exchange or other type of regulated market will be valued on the basis of the probable sale proceeds determined prudently and in good faith by us; (f) where the underlying assets of any Fund are not denominated in Unit Price currency, we will set the exchange rate at which these assets are converted into the Unit Price currency, taking into account whether the transactions are into or out of the currency. Temporary Suspension of Determination of Unit Price We may suspend the determination of the Unit Price for one or more Funds and the creation or cancellation of the Units of any Fund in the following circumstances: (c) (d) (e) during any period when the principal stock exchange or other market on which a substantial portion of the investments of the Fund are quoted or dealt in is closed otherwise than for ordinary holidays, or during which dealings therein are restricted or suspended, provided that, in our opinion, such restriction or suspension affects the valuation of the investments of the Fund quoted thereon; during the existence of any state of affairs which, in our opinion, constitutes an emergency as a result of which the disposal or valuation of Fund assets would be impracticable; during any breakdown in the means of communication or computation normally employed in determining the price or value of any of the investments of such Fund or the current price or value on any stock exchange or other market in respect of the assets attributable to such Fund; during any period when we are unable to repatriate Funds for the purpose of cancelling or creating Units or during which any switching of Funds involved in the realisation or acquisition of investments cannot, in our opinion, be effected at normal rates of exchanges; when for any other reason the prices of any investments attributable to such Fund cannot promptly or accurately be ascertained. Creation of Units Amounts are added to your Fund Account Value in respect of each Fund by the creation of additional Units in that Fund to reflect the amount of your Investment Contents allocated to that Fund. Units in any Fund will be created under this Policy and allocated to your Fund Account in respect of that Fund when your Investment Contents are allocated and on the effective date of any Fund Switch to your Fund Account in respect of that Fund. Investment Contents will only be allocated to (and Units created in) a Fund on the Valuation Day immediately following the date on which we receive such Investment Contents. The number of such Units to be created will be calculated: in the case of new Investment Contents being allocated, by dividing the Investment Contents allocated to such Fund by the Unit Price of that Fund on the relevant Valuation Day; and in the case of Fund Switch, by dividing the amount of the Fund Switch (net of any Switching Fee) to such Fund by the Unit Price of that Fund on the relevant Valuation Day. 7

8 Cancellation of Units Amounts are deducted from your Fund Account Value in respect of any Fund by the cancellation of Units created to your Fund Account in respect of that Fund. Units in any Fund will be cancelled under this Policy and deducted from your Fund Account in respect of that Fund on the due date of any charges set out in policy provision 7, and on the effective date of any Withdrawal, Regular Withdrawal, Surrender, Fund Switch and Policy Maturity Date. Units will only be cancelled in a Fund on a Valuation Day. The number of Units to be cancelled will be calculated as the amount to be withdrawn from such Fund in respect of any charges set out in policy provision 7, Withdrawal, Regular Withdrawal, Surrender, Fund Switch and policy maturity divided by the Unit Price of that Fund on the relevant Valuation Day. Fund Closure We may at any time close a Fund and/or cease to allow the allocation of Investment Contents or any Fund Switch to any Fund. We will give you at least three months written notice of our intention to close or suspend a Fund, except where it is due to changes in the law or other circumstances beyond our control, we will give you with not less than one month s prior written notice or such other period of notice in compliance with the relevant regulatory requirements. If your existing instruction for the allocation of Investment Contents includes any allocation to a Fund which we have closed or shall close, when you make any Additional Contribution, you must change your instruction to exclude such a Fund; otherwise, we will allocate your Investment Contents between such of the Funds as we consider, in our absolute discretion, appropriate. If there is any Funds under this Policy to be closed, you may request a Fund Switch from that Fund to another Fund. If we do not receive such a request before the expiry of the notice of the closure of that Fund, we will make a Fund Switch to such other Fund as we consider, in our absolute discretion, appropriate as if we had received your request to do so and any such Fund Switch shall be final. Fund Merger or Division We may at any time merge two or more Funds into a single Fund, or divide a single Fund into two or more Funds. We will give you at least three months written notice of our intention to merge or divide a Fund, except where it is due to changes in the law or other circumstances beyond our control, we will give you with not less than one month s prior written notice or such other period of notice in compliance with the relevant regulatory requirements. If your existing instruction for the allocation of your Investment Contents includes any allocation to a Fund we have merged or shall merge, your Investment Contents currently allocated to the Fund and your future Investment Contents shall be allocated to the merged Fund. If your existing instruction for the allocation of your Investment Contents includes any allocation to a Fund we have divided or shall divide, you must change your instruction to divide your Investment Contents currently allocated to that Fund and your future Investment Contents between the new Fund or Funds to be created by the division accordingly; otherwise, we will allocate your Investment Contents between such of those Funds as we consider, in our absolute discretion, appropriate. 13 DISPUTE RESOLUTION If you are not happy with the way in which your Policy was sold to you or any other aspect of your Policy, please contact: The Customer Service Manager Standard Life (Asia) Limited 40/F, Tower 1, Times Square 1 Matheson Street, Causeway Bay Hong Kong Telephone: (852) Fax: (852) cs@standardlife.hk We have developed an internal policy on complaints for dispute resolution in accordance with The Code of Conduct for Insurers. If at any time you have an unresolved complaint about your Policy or our services, you can use our internal dispute resolution process. (End of Policy Provisions) 8