KEY FEATURES OF THE PERSONAL ASSETS TRUST ZERO CHARGE INVESTMENT PLAN & INDIVIDUAL SAVINGS ACCOUNT

Transcription

1 KEY FEATURES OF THE PERSONAL ASSETS TRUST ZERO CHARGE INVESTMENT PLAN & INDIVIDUAL SAVINGS ACCOUNT The Financial Conduct Authority is a financial services regulator. It requires us, Halifax Share Dealing Limited, to give you this important information to help you to decide whether our Personal Assets Trust Zero Charge Investment Plan or Individual Savings Account is right for you. You should read this document carefully so that you understand what you are buying and then keep it safe for future reference. ITS AIMS The Zero Charge Investment Plan and Individual Savings Account ( Plans ) provide cost effective ways of investing in the ordinary shares of Personal Assets Trust plc ( the Company ) without incurring any initial or annual plan administration charges for so doing. The costs of administering the Plans are paid for by the Company directly rather than by individual plan holders. The Plans are provided and administered solely by Halifax Share Dealing Limited ( HSDL ). The Company is not the provider of the Plans and is not involved in their administration. Shares are acquired for the Plans either on the stockmarket or through the issuing of new shares by the Company at no less than 101% of the net asset value ( NAV ), whichever method would be cheaper to the investor. When shares are issued by the Company, no stamp duty is payable by the investor. The investment objective of the Company is to protect and increase (in that order) the value of shareholders funds over the long term and to earn as high a total return as is compatible with a risk equivalent to that of the FTSE All-Share Index. The Company can invest globally with no specific restrictions. The Company was launched in 1983 and had shareholders funds of 617 million at the end of February The capital of the Company consists only of ordinary shares. YOUR INVESTMENT The Investment Plan The Investment Plan offers three cost effective options of investing in the ordinary shares of the Company: 1. The Single Investment Option (minimum investment 5,000, no maximum) allows investors to invest a lump sum to acquire shares to be held in the Plan. Planholders can choose to have dividends reinvested or receive them as cash. Dividends will be automatically reinvested unless you have elected to have them paid directly into your bank account. 2. The Monthly Investment Option (minimum investment 500 per month, no maximum) allows investors to make regular investments by direct debit only. Planholders can choose the date they wish to make regular payments but if no date is specified payments will be requested on, or just after, 1st of each month. Planholders can choose to have dividends reinvested or receive them as cash. Dividends will be automatically reinvested unless you have elected to have them paid directly into your bank account. 3. The Cash Withdrawal Option allows investors to receive a quarterly cash payment from dividends and/or the sale of shares held in their account. The minimum quarterly withdrawal is 500. Planholders dividends are not reinvested but generally paid out as cash as part of the quarterly payments. The Individual Savings Account ( ISA ) An ISA is a scheme of investment with no tax liability on income or capital gains arising from assets held within it. Details of such income or capital gains do not have to be disclosed on the investor s tax return. There are three types of ISA: a Stocks and Shares ISA, a Cash ISA and an Innovative Finance ISA. The maximum amount you can invest in the current tax year is 15,240. You can choose to invest your full allowance into either a Cash ISA, a Stocks and Shares ISA or an Innovative Finance ISA, or a combination of all three. The Personal Assets Trust ISA is a Stocks and Shares ISA. Investments can be made by either lump sum or regular monthly investments. The minimum lump sum investment is 5,000 and the minimum monthly investment is 500. The Monthly Investment Option allows investors to make regular investments by direct debit only. Planholders can choose the date they wish to make regular payments but if no date is specified payments will be requested on, or just after, 1st of each month. Total monthly payments cannot exceed the ISA subscription limits for the tax year. Planholders can choose to have dividends reinvested or to receive them as cash. Dividends will be automatically reinvested unless you have elected to have them paid directly into your bank account. We can also offer the Cash Withdrawal Option on the same terms as the Investment Plan, previously detailed on this page. April 2016

2 The Personal Assets Trust ISA can also accept the transfer of an existing ISA account with another ISA manager. You may transfer the cash value, with a minimum value of 5,000, of other Stocks and Shares ISAs or existing Cash ISAs held with other ISA managers into the Personal Assets Trust ISA. This is done by completing a transfer application form, which is available on the Company s website or on request from HSDL or the Company. Please note that you cannot transfer an Innovative Finance ISA to the Personal Assets Trust ISA. You may also transfer shares of the Company in specie, if you already hold such shares in an ISA wrapper with another provider. You may close your ISA and sell all your shares at any time or transfer to a new ISA manager. RISKS All stockmarket investments involve some risk and you should make sure that you understand the associated risks before you choose to invest. The following is a summary of the principal (but not the only) risk factors that apply to an investment in the Plans. Taxation. The favourable tax treatment given to ISAs may not be maintained. The rates of and reliefs from taxation depend on your own circumstances and may change over time. Any change in the Company s tax status or in taxation legislation or accounting practice could affect the Company s ability to provide returns to shareholders. Discount/Premium to NAV. Investment trusts have long suffered from volatile discounts to NAV. Sometimes, too, the shares of individual investment trusts may sell temporarily at a significant premium to their NAV per share. This can put those investing regularly through investment plans at a disadvantage because they may find themselves buying shares at a sizeable premium which almost certainly will not be sustained and which will therefore have an adverse effect on the return from their investment. In view of the disadvantages to shareholders of such discount and premium fluctuations, the policy of the board of the Company, which is enshrined in the Company s articles, is to ensure that the shares always trade close to the NAV per share. The board seeks to achieve this through a discount and premium control policy which involves a combination of share buybacks and, of equal importance, the issue of new shares at a premium to the NAV per share where demand exceeds supply. Market Risk. Stockmarket and currency movements may cause the value of your investment and the dividends received from it to fall as well as rise and you may not get back the amount you originally invested. Past performance is no indicator of future performance. Charges. Although no initial or annual administration charges are levied within the Plans, the Company itself (like all public limited companies, including other investment trusts) incurs operating expenses which reduce the return to shareholders from its portfolio. Inflation. The value of any investment gains may be reduced over time by increases in the general level of prices, i.e. inflation. Advice & Suitability. The information contained in this document does not constitute advice nor a recommendation to invest in any of the Plans. If you are not sure if an investment in any of the Plans is suitable for your circumstances, you should consult your professional adviser. In providing the Plans, we are not required to assess the suitability of the Plans for your individual circumstances and therefore you do not benefit from the protection of the Financial Conduct Authority rules on assessing suitability. If you have any doubts about the suitability of any Plan for you, please consult your professional financial adviser. We are unable to give individual investment or taxation advice. The tax treatment of the Plans and any investments acquired depend on your individual circumstances and may be subject to change in the future. Borrowing. The Company may incur borrowings for investment purposes. Whilst the use of borrowings should enhance the total return on the shares where the return on the Company s underlying assets is rising and exceeds the cost of borrowing, it will have the opposite effect where the underlying return is falling, further reducing the total return on the shares. As a result, the use of borrowings by the Company may increase the volatility of the net asset value per share. Portfolio Concentration. The Company is likely to maintain a more concentrated portfolio (both in terms of individual holdings and in terms of its exposure to particular industries and asset classes) than those of many other investment funds. Accordingly, investors should be aware that the portfolio potentially carries a higher level of risk than a more diversified portfolio. Interest rate risk. Some of the Company s financial instruments are interest bearing. As such, the Company is exposed to interest rate risk due to fluctuations in the prevailing market rates. Foreign currency risks. Some of the Company s investments are in overseas securities. Where the Company does not hedge its currency exposure, the movement of exchange rates may have a favourable or unfavourable effect on the gains and losses experienced on investments which are made or realised in currencies other than pounds sterling. Gold bullion. The Company currently has direct holdings of gold bullion. The price of gold has fluctuated over the past several years. If gold markets continue to be subject to wide fluctuations, this may result in potential losses if the Company decides to sell its gold bullion at a time when the price of gold is lower than it was when the gold bullion was acquired. QUESTIONS AND ANSWERS What is an Investment Trust? An investment trust is a public limited company the shares of which are traded on the London Stock Exchange. Its sole business is investing in the shares of other listed companies in the UK and overseas and in other assets. Who can open a Plan? You must be 18 years of age or over and be resident in the UK, Jersey, Guernsey or the Isle of Man, or if not resident, performing duties as a crown employee serving overseas and paid out of the public revenue of the United Kingdom (typically a serving member of the armed forces, or a diplomat) or be married to, or in a civil partnership with, such a person. For an ISA you must be resident for tax purposes in the UK, not including the Isle of Man or the Channel Islands. In addition, you must have a valid UK address where we will correspond with you about your Plan, and at which we will be able to

3 verify your identity. You must also provide details of a nominated bank account in your name or which you hold jointly with someone else. How do I apply? You should complete the application form applicable to the Plan you have chosen and return it to us at: Personal Assets Trust Plans, Halifax Share Dealing Limited, Lovell Park Road, Leeds LS1 1NS. Lump sum investments must be made by cheque (payable to Personal Assets ISA or Personal Assets Investment Plan) or, if you already have a Personal Assets Investment Plan, you may invest or subscribe over the telephone by debit card. For larger sums over 50,000 payment can be made by bank transfer. Please contact us on for further information. Regular investments are made by direct debit. However, your initial subscription should be made by cheque. You should complete the direct debit instruction on the application form. You will receive a letter of welcome which will confirm your account information and a trade confirmation for each transaction. You will not receive a share certificate. Shares bought for you will be held on your behalf by HSDL Nominees Limited, Trinity Road, Halifax, HX1 2RG. How can I follow the progress of my investment? Every six months you will receive a statement of your holding and a description of any transactions that have taken place in the previous six months. The share price, estimated NAV, discount/premium and dividend yield can be found in the Financial Times. These details can also be obtained from the Company s website or from the Shareholder Information Line on You will receive copies of all shareholder communications and will be entitled to vote at any General Meeting of the Company. What could my Stocks and Shares ISA or Investment Plan savings be worth in the future? The illustrations below give you an idea of how much your investment could be worth in the years ahead. However, there is no guarantee of your investment s value, as the final amount will depend on how much you invest and the actual rate at which your investment grows. ISA If you invest a single payment of 15,240 for 10 years, the table below shows how much your investment would be worth after charges, if it grows each year by: 2% 5% 8% End of year 1 15,238 15,686 16,134 End of year 3 15,583 16,998 18,497 End of year 5 15,935 18,421 21,207 End of year 10 16,853 22,519 29,847 Investment Plan If you invest a single payment of 5,000 for 10 years, the table below shows how much your investment would be worth after charges, if it grows each year by: 1.5% 4.5% 7.5% End of year 1 4,975 5,122 5,269 End of year 3 5,038 5,498 5,985 End of year 5 5,101 5,901 6,798 End of year 10 5,264 7,044 9,348 Please note that these projections are examples only and returns stated are not guaranteed. The value of investments can fall as well as rise and you may get back less than you invested. It should be remembered that the figures quoted do not take into account the effect of inflation which can affect the value of your investment in real terms. Please also note that any re-investment of dividends may cause these figures to change. What dividends will I receive? Dividends declared by the Company are paid four times a year, usually in January, April, July and October. Unless the Cash Withdrawal Option has been chosen, Planholders can choose to have dividends reinvested in their Plan or receive them as cash. Dividends will be automatically reinvested unless you have elected to have them paid directly into your bank account. As at 29 February 2016, the net yield on the ordinary shares was 1.6%, based on the last four quarterly dividends declared by the Company, amounting to 5.60 per share. Please remember that the income from your investment can go down as well as up and there is no guarantee that the Company will pay a dividend in any given year.

4 When will I receive my quarterly payments under the Cash Withdrawal Option? Sales are transacted around the same time as the dividend is paid in April, July, October and January and you will receive two payments within five working days from the date of the sale. One payment will be your dividend entitlement and the other, being the proceeds from a sale of shares, will be the sum required to make up your requested quarterly amount. Is there any tax? Investment trusts are exempt from tax on capital gains realised within their investment portfolios. Within the ISA there is no tax to pay on income or capital gains. In accordance with ISA regulations there is a deduction of tax, in certain circumstances, from interest paid on cash held on deposit. This will be deducted from your account and paid to HM Revenue and Customs. Within the Investment Plan, you may be liable to pay UK tax on income and capital gains depending on your personal circumstances. Rates of and relief from taxation depend on your own circumstances and may change over time. How will charges and expenses affect my investment? There are no initial or annual administration charges for the Plans. The costs of administering the Plans are paid by the Company directly. Like all shares traded on the London Stock Exchange, investment trust shares are priced at an offer price when you buy and at a bid price when you sell. The difference between these is the spread, which can differ according to the number of shares being bought or sold and the availability of shares in the market. Information on the spread can be obtained from the Personal Assets Shareholder Information Line. Any costs of buying shares would be your proportionate part of the total dealing costs, which may include stockbrokers commissions and stamp duty. Stockbrokers commissions are not generally charged to investors on purchases of shares but, if incurred, it will be charged at institutional rates. Stamp duty is payable at a rate of 0.5% of the amount invested. There are no dealing charges for selling shares. Other costs, including taxes, related to transactions in connection with the Plans may arise for investors that are not paid via us or imposed by us. The Company incurs certain expenses, as follows: The investment advisory fee payable to Troy Asset Management Limited, which is based on shareholders funds, is as follows: 0.5 % on the first 100 million, % on the next 50 million, 0.75 % between 150 million and 500 million, % between 500 million and 750 million, 0.55% between 750 million and 1billion, and 0.5% thereafter. Other expenses, some of which are subject to VAT, include employee and office costs, directors remuneration, secretarial fees, printing costs, audit fees, Investment Plan fees and registration fees. The above costs generate ongoing charges for the Company of approximately 0.86% per annum. Can you provide an illustration of these charges? Investment Plan The effect the above mentioned charges would have on an investment of 5,000 is set out in the following table. The figures assume that your dividends are not re-invested and the value of your investment grows by 4.5% a year. These figures are not guaranteed and are based on theoretical rates of growth which may not be achieved. They are not an indication of future performance and should only be used to show the effect of the above mentioned charges on an investment in the Personal Assets Trust Investment Plan. At end of year Investment to date ( ) Effect of deductions to date What you might get back ( ) ( ) 1 5, , , , , ,044 The last line in the table shows that over 10 years, the effect of the total charges and expenses could amount to 721. This would have the same effect over 10 years as bringing the investment growth down from 4.5% per year to 3.5% per year. Please also note that reinvestment of dividends may cause these figures to change. Investment Plan Cash Withdrawal Option The effect the above mentioned charges would have on an investment of 50,000 is set out in the following table. The figures assume that you withdraw 500 per quarter, dividends are not re-invested and the value of your investment grows by 4.5% a year. These figures are not guaranteed and are based on theoretical rates of growth which may not be achieved. They are not an indication of future performance and should only be used to show the effect of the above mentioned charges on an investment in the Personal Assets Trust Investment Plan. At end of year Investment to date ( ) Withdrawal to date ( ) Effect of deductions to date ( ) What you might get back ( ) 1 50,000 2,000 1,060 49, ,000 10,000 3,249 48, ,000 20,000 6,526 46,546

5 The last line in the table shows that over 10 years, the effect of the total charges and expenses could amount to 6,526. This would have the same effect over 10 years as bringing the investment growth of your initial capital down from 4.5% per year to 2.9% per year. ISA The effect the above mentioned charges would have on an investment of 15,240 is set out in the following table. The figures assume that your dividends are not re-invested and the value of your investment grows by 5% a year. These figures are not guaranteed and are based on theoretical rates of growth which may not be achieved. They are not an indication of future performance and should only be used to show the effect of the above mentioned charges on an investment in the Personal Assets Trust ISA. At end of year Investment to date ( ) Effect of deductions to date What you might get back ( ) ( ) 1 15, , ,240 1,030 18, ,240 2,305 22,519 The last line in the table shows that over 10 years, the effect of the total charges and expenses could amount to 2,305. This would have the same effect over 10 years as bringing the investment growth down from 5% per year to 4% per year. Please also note that reinvestment of dividends may cause these figures to change. ISA Cash Withdrawal Option The effect the above mentioned charges would have on an investment of 50,000 is set out in the following table. The figures assume that you withdraw 500 per quarter, dividends are not re-invested and the value of your investment grows by 5% a year. These figures are not guaranteed and are based on theoretical rates of growth which may not be achieved. They are not an indication of future performance and should only be used to show the effect of the above mentioned charges on an investment in the Personal Assets Trust ISA. At end of year Investment to date ( ) Withdrawal to date ( ) Effect of deductions to date ( ) What you might get back ( ) 1 50,000 2,000 1,068 49, ,000 10,000 3,347 49, ,000 20,000 6,898 49,391 The last line in the table shows that over 10 years, the effect of the total charges and expenses could amount to 6,898. This would have the same effect over 10 years as bringing the investment growth of your initial capital down from 5% per year to 3.3% per year. Can I cancel or withdraw my application? Cancellation rights are not provided for the Plans. After your investment is made you will be able to withdraw in full only if you close your Plan. You may withdraw all or part of your investment at any time by selling or transferring your shares. If you withdraw your entire holding your Plan will be closed. How can I close my Plan? You may close your Plan at any time by informing us by telephone or in writing. Written instructions should be sent to Halifax Share Dealing Limited, Lovell Park Road, Leeds LS1 1NS. Telephone instructions should be given by calling us on If you are making regular investments, you should stop your payments and inform us by telephone or in writing of your intention to close your Plan. FURTHER INFORMATION Dealing The normal dealing days are Wednesdays and Fridays. Lump sum subscriptions will be invested on the first dealing day following receipt and administration of funds. For regular savings, the direct debit will be collected on or around the requested date for investment on the next dealing day. Shares will be bought at the price ruling at that time. We will seek to get best execution on all deals, including dealing with the Company directly if appropriate. Selling shares or transferring your ISA To sell shares a written or telephone instruction should be given to us. Written instructions should be sent to Halifax Share Dealing Limited, Lovell Park Road, Leeds LS1 1NS. Telephone instructions should be given by calling us on To transfer your ISA to the Personal Assets Trust ISA please complete an ISA transfer form which is available from the Company s website or from the Shareholder Information Line on If you wish to transfer your ISA away from the Personal Assets Trust ISA, please contact your new ISA manager. Shares will be sold as soon as practicable following receipt of your completed instruction and you will be sent a trade confirmation, detailing the number of shares sold, the price and the settlement date. Proceeds will be sent as per Planholders standing instructions. For the Cash Withdrawal Option, shares will be sold around the same time as the dividend is paid in April, July, October and January at the market price. Proceeds under the Cash Withdrawal Option will be sent as per Planholders standing instructions.

6 Please see the HSDL Order Handling Policy and Terms & Conditions, which are enclosed for further details on how we will deal with any purchase and sale instructions. Interest Any money waiting to be invested in the Investment Plan, which includes the Cash Withdrawal Option, will be held on your behalf in a noninterest bearing bank account. Any money waiting to be invested in the ISA, which may also include the Cash Withdrawal Option, will be held on your behalf in an interest bearing bank account. Administrator & Plan Manager The Administrator & Plan Manager is Halifax Share Dealing Limited, Registered in England and Wales No Registered Office: Trinity Road, Halifax, HX1 2RG. Authorised and regulated by the Financial Conduct Authority of 25 The North Colonnade, Canary Wharf, London E14 5HS under registration number HSDL is also a Member of the London Stock Exchange and a HM Revenue & Customs Approved ISA Manager. HSDL can be reached by telephone on or in writing at: Halifax Share Dealing Limited, Lovell Park Road, Leeds LS1 1NS. Investment Adviser The Company is independently run and has one executive Director, Robin Angus. The Company has delegated the Investment Adviser role to Troy Asset Management Limited. Further details on Troy can be found on their website, Nominee The Nominee is HSDL Nominees Limited, Trinity Road, Halifax HX1 2RG. Alterations to the ISA We may alter the ISA or cease to act as an ISA Manager at any time. You will be given written notification in advance of any alteration and advised of your options. Further details can be found in the Terms and Conditions of the ISA. Queries and complaints If you have any queries or complaints in relation to the operation of your Plan you should write to Halifax Share Dealing Limited, Lovell Park Road, Leeds LS1 1NS who will investigate the complaint and within five business days of receiving your complaint either acknowledge receipt or provide you with a written statement of their views in relation to that complaint. This procedure will not affect your right to lodge a complaint with the Financial Ombudsman Service, South Quay Plaza,183 Marsh Wall, London E14 9SR (Tel: ). Compensation We are covered by the Financial Services Compensation Scheme. As you have been categorised as a retail client, you may be able to make a claim on this Scheme if we default in our obligations to you. Compensation of up to 100% of the first 50,000 of assets held is available to eligible claimants. If you ask, we will send you a summary of your rights under the Financial Services Compensation Scheme. Further information can also be obtained from the Financial Services Compensation Scheme, or by telephone on Conflicts of Interest A summary description of HSDL s conflict of interest policy is enclosed and further details of such policy are available on request. Marketing The Company will send a newsletter to you quarterly and may from time to time inform you of other Personal Assets Trust products or services that may be of interest to you. The Company will not send your personal details to any outside agency for marketing purposes. Corporate activity Where appropriate, if the Company is involved in a rights issue, an issue of new shares, a takeover bid or anything similar, you will be given information to allow you to take whatever action you decide on. Additional information Further information on the Company can be found in the Annual Report and Accounts, copies of which are available on the Company s website You may also telephone the Shareholder Information Line on for any information you require. All documentation and communication relating to the Plans shall be in English. The Plans are subject to English law.

7 Halifax Share Dealing Limited is the Administrator for Personal Asset Trust. Halifax Share Dealing Limited, Registered in England and Wales no Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS under registration number A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

8 TERMS AND CONDITIONS AND ORDER HANDLING POLICY

9 CONTENTS SEE PAGE 1. THESE TERMS AND CONDITIONS AND THE AGREEMENT BETWEEN US 1 2. ABOUT HSDL 1 3. DEFINITIONS 2 4. THE PLAN AND YOUR ACCOUNT 5 5. OPENING A PLAN 6 6. USING THE PLAN 8 7. FUNDING AND WITHDRAWING AMOUNTS FROM YOUR ACCOUNT DEALING SETTLEMENT HOLDING INVESTMENTS AND CASH IN YOUR ACCOUNT HSDL S RIGHT TO USE YOUR ASSETS CORPORATE ACTIONS CHARGES INFORMATION ABOUT YOUR PLAN COMPLAINTS AND COMPENSATION CHANGING THIS AGREEMENT AND TERMINATION HSDL S LIABILITY, GOVERNING LAW, REGULATORY REQUIREMENTS AND TAX REPORTING REGULAR INVESTMENTS SUPPLEMENTARY CONDITIONS FOR ISAS 34

10 - 1 - TERMS AND CONDITIONS 1. These terms and conditions and the agreement between us 1.1 These terms and conditions set out terms which apply to the Personal Assets Trust Zero Charge Investment Plan and Individual Savings Account. 1.2 These terms and conditions, together with the current Personal Assets Trust Zero Charge Investment Plan and Individual Savings Account Key Features Document and any other information or documents Halifax Share Dealing ( HSDL ) gives to you such as your application govern the legal agreement between you and HSDL and set out your and HSDL s rights and duties in relation to the plans. By making an application and using a plan, you acknowledge the creation of this contractual relationship which has legal consequences. 1.3 You should read these terms and conditions, the Key Features Document for the plan, and any other information or document HSDL gives to you, together with HSDL s Order Handling Policy and HSDL s Summary Conflicts of Interest Policy carefully to understand how your plan will operate before making an application and using the plan. 1.4 You can ask HSDL for a copy of any of these documents at any time. If there is anything that you do not understand, you should contact HSDL. Please or telephone HSDL using the details on the last page of these terms and conditions. 1.5 These terms and conditions are split into sections to make them easier to read. 1.6 Conditions 1-18 will apply to every type of account. In addition: Condition 19 will apply to your account if you use a regular investment feature; and Condition 20 will only apply to your plan if it is an ISA. 1.7 Throughout these terms and conditions, the words in bold have the meanings given to them in Condition These terms and conditions also use the words: "HSDL" to mean Halifax Share Dealing Limited, the operator and administrator of the plans (and ISA Manager, if applicable); and "you" and "your" to mean the person(s) who have made an application and are registered to use the plan; 2. About HSDL The plan is provided by HSDL. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority. Its registration number is The Financial Conduct Authority ("FCA") has its address at 25 The North Colonnade, Canary Wharf, London E14 5HS. The FCA maintains a register of all businesses that it regulates at

11 Definitions In these terms and conditions, the following words and phrases in bold type have the special meaning given below: Account Additional Permitted Subscription Agreement Application Approved bank(s) Assets Available Funds Client money Client money rules Company Consolidated tax certificate ("CTC") Corporate action Deal Dealing day Dealing period The dealing account that HSDL provides to you to hold your investments; Has the meaning given in Condition 20.6 The legal agreement between you and HSDL in relation to your account, as set out in these terms and conditions and any other document or information stated to form part of this agreement, such as any application; Your application to HSDL to use the plan; A bank or other financial institution, from time to time nominated by us, where HSDL may deposit client money in accordance with the client money rules; The portfolio of investments and uninvested cash held in your account and in respect of which HSDL provides the plan; Money in your account which has settled or cleared and which has not been allocated to a purchase of investments and which is therefore available for you to withdraw; Money that HSDL has received or holds for you or on your behalf, in accordance with the client money rules, in the course of, or in connection with, the plan, other than money which is due and payable by you to HSDL or a third party; The FCA's regulatory requirements that concern the holding of client money; Personal Assets Trust plc, a company established in Scotland and listed on the London Stock Exchange; A certificate detailing the amount of any dividend payments received in the preceding tax year; A rights issue, take-over, merger, capital reorganisation, conversion, subscription rights or similar event affecting your investments; The purchase of or sale of investments by you; A working day on which HSDL takes instructions from the Company with regard to dealing in investments, usually Wednesdays and Fridays. On the dealing day, HSDL will provide the Company with details of the total tradable funds placed by clients since the last dealing day. The company will instruct HSDL whether the Company will issue new shares to enable the trades to take place, or whether HSDL should place the trades in the market; The period during which a deal can take place on the relevant market. For UK markets the dealing period is 8.00 a.m. to 4.30 p.m. on each dealing day, but this may change from time to time;

12 - 3 - FCA FSCS Halifax Variable Mortgage Base Rate HSDL ISA ISA Manager ISA Regulations Income Investments Key Features Document Lloyds Banking Group Market Market information Nominated bank account Nominee company The Financial Conduct Authority; The Financial Services Compensation Scheme; The variable mortgage base rate of the Halifax division of Bank of Scotland as published on its website: from time to time; Halifax Share Dealing Limited, the operator and administrator of the Personal Assets Trust Investment Plan (and ISA Manager, if applicable); The Personal Assets Trust Stocks and Shares Individual Savings Account; Halifax Share Dealing Limited in HSDL s capacity as an ISA manager approved by HM Revenue & Customs; The Individual Savings Account Regulations 1998, as amended and re-enacted from time to time and any other regulatory requirements applicable to your ISA; Money received in the form of dividends in relation to investments held in your account, or interest on client money HSDL holds for you; Ordinary shares of the Company; The current version of the Personal Assets Trust Key Features Document which has been provided to you and as published on the website at and available from the Company on request; The group of companies which has Lloyds Banking Group plc as its parent company. This includes HSDL and a number of other companies using brands including Lloyds Bank, Halifax and Bank of Scotland. More information on the Lloyds Banking Group can be found at lloydsbankinggroup.com; The financial market on which investments can be bought or sold, namely the London Stock Exchange plc; Includes securities prices, quotations, news (both financial and nonfinancial), company information and other information provided via HSDL s online service or by other market data providers; Your personal bank, building society or savings account, registered in the UK, Jersey, Guernsey or the Isle of Man, that you have nominated for the purposes of funding your account; Any non-trading nominee company controlled by HSDL that HSDL may appoint from time to time in relation to the plans; Online service Order The service HSDL provides in accordance with this agreement as described at Condition 6 and which can be accessed through an internet or mobile internet connection, at or any other internet address which HSDL may notify to you; An instruction from you asking HSDL to execute a deal on your behalf;

13 - 4 - Plan The Personal Assets Trust Zero Charge Investment Plan HSDL provides to you to enable you buy investments. Your plan may or may not be an ISA; Regulatory requirements any obligation that applies under any law or regulation (including any tax legislation or rules made by an applicable regulatory body), or as the result of a decision by a court, ombudsman or similar body; or (c) any obligation under any industry guidance or codes of practice which HSDL or the Company follows; or any other legal or regulatory requirement; which, in each case, is applicable to this agreement and/or HSDL s provision of the plan to you; Regular cash withdrawal amount Regular cash withdrawal option Regular investments Scheduled investment Scheduled subscription Security details Settlement Settlement date Tax year Telephone service Tradable Funds The amount which you elect to withdraw on a quarterly basis if you elect to use the regular cash withdrawal option, as explained in Condition 7.19; A feature of the plan where you can elect to receive a quarterly cash payment from dividends and the sale of investments held in your account instead of having your dividends reinvested, as described in Condition 7.19; A feature of the plan where you can make scheduled subscriptions and scheduled investments as described in Condition 19; A scheduled purchase of investments made using the money received from a scheduled subscription as described in Condition 19; A subscription payment collected by HSDL from your nominated bank account according to the schedule agreed by you and as described in Condition 19; Any password, personal identification number, or other confidential security information required in order to access your account and/or give orders via the telephone service and/or the online service; In relation to a deal, the delivery of the relevant investments to the buyer by the seller and delivery of the purchase price by the buyer to the seller; The date on which the buyer and seller in relation to a deal are required to settle that deal; Each 12 month period from 6 th April of one calendar year to 5 th April of the next calendar year; The service HSDL provides in accordance with this agreement as set out in Condition 6 and which can be accessed by telephone by calling or any other telephone number which HSDL may notify to you; Money in your account which is available for you to deal as described at Condition 7.2. This includes available funds and sale proceeds in relation to a sale of an investment which has not yet settled;

14 - 5 - Trade confirmation Website Working day A written record giving the details of a deal, including all charges applicable to that deal and the total amount payable by or to you in settlement of that deal; HSDL's website at or any other address HSDL notifies to you from time to time; and Any day other than a Saturday, Sunday or an English bank holiday. 4. The plan and your account 4.1 You can use the plan to make deals in investments. You can do this by placing orders to deal by using the telephone service. 4.2 Once HSDL has accepted your application and received payment for your initial investment, HSDL will open an account for you. Your account will hold the assets (that is, your investments and client money) in relation to which HSDL provides the plan. 4.3 For the purposes of the regulatory requirements, HSDL will treat you as a retail client in relation to this agreement. Categorisation as a retail client affords you the highest degree of consumer protection under the regulatory requirements. However, this does not necessarily mean that you will automatically be eligible to bring a claim under either any investor compensation scheme or ombudsman scheme. Execution only service 4.4 The plan is an execution only service. This means that HSDL will execute your orders in accordance with the agreement, and HSDL will not provide you with investment advice or discretionary management in relation to your assets. Any decision to deal remains with you. 4.5 If you are in any doubt about using the plan and making your own investment decisions HSDL recommends you seek advice from a suitably qualified financial adviser. 4.6 HSDL will not provide you with legal, tax or other advice in connection with your plan. Investment risks 4.7 There are risks involved with use of the plans, including investment risk caused by the fact that the value of your investments will change over time. The value of your investments and the level of any income from them can go down as well as up. You may not get back the full amount you have invested. You should also remember that past performance of investments is not an indication of how those investments might perform in the future. Cancellation 4.8 You have the right to cancel the agreement within 30 days of HSDL confirming to you that HSDL has opened your account and it is available for you to use, or providing you with the relevant terms, whichever is the later ( the cancellation period ). You also have the right to cancel a transfer of an ISA from another ISA manager within 30 days of the transfer. 4.9 If you wish to cancel, you must send written notice by post to HSDL at Halifax Share Dealing Limited, Lovell Park Road, Leeds, LS25 1NS. You will have no further obligations in relation to the plan and you will not be charged any fee for cancelling If you cancel, HSDL will return to you the cash in your account at the next dealing period after HSDL receives your cancellation request. If you have purchased investments during the cancellation period, HSDL will sell those investments and send you the sales proceeds after the

15 - 6 - settlement date. The cash that you receive may be less than you transferred to HSDL if HSDL has carried out deals on your behalf, or if the value of your investments has fallen during the cancellation period, and you will bear that market risk. You will also bear the costs associated with deals which HSDL has carried out for you, such as stamp duty If you do not exercise the right to cancel, the agreement will remain in effect until terminated under its terms. 5. Opening a plan Eligibility 5.1 To be eligible for a plan you must be: (c) an individual or, (unless your account is an ISA), individuals; 18 years of age or over; and either: (i) (ii) resident in the UK, or (unless your plan is an ISA) Jersey, Guernsey or the Isle of Man; or performing duties as a crown employee serving overseas and paid out of the public revenue of the United Kingdom (typically a serving member of the armed forces) or be married to, or in a civil partnership with, a person performing such duties. 5.2 HSDL will not knowingly accept instructions from a corporate body or investment club, except to the extent that is necessary to enable you to close or transfer your account. 5.3 You may apply for more than one account within the plan, for example for one ISA account and another account that is not an ISA. In this case, the word "account" means each of those accounts and this agreement applies to each account. Applying for an account 5.4 In order to open an account you must complete an application and provide HSDL with such information as it reasonably requests to enable HSDL to open your account and provide you with the plan. This may include evidence of your identity in line with the law and regulatory requirements to prevent money laundering. If you do not provide HSDL with this information, HSDL may delay or refuse to accept your application for an account. 5.5 Unless you transfer investments into your account as described below, a minimum cash subscription amount is required for each account as follows: A lump sum of at least 5,000. This must be made by personal cheque or, if for sums over 50,000, by bank transfer (in accordance with the Key Features Document for the plan); or a scheduled subscription of 500 per month. This must be set up as a Direct Debit. Please see Condition 19 for further details. Payment will be debited from your nominated bank account by Direct Debit on the first scheduled subscription date after your account has been fully activated by HSDL. 5.6 You must provide details of a nominated bank account in your name or which you hold jointly with someone else that will be used to fund and receive amounts from your account in line with

16 - 7 - this agreement. If you have more than one account with us, HSDL will use the same nominated bank account for each. All payments to or from your nominated bank account will be in Pounds Sterling. Transferring investments into your account 5.7 If you ask HSDL to, HSDL may accept a transfer of investments direct from another provider. The value of any transfer, together with any cash subscription you make must be at least the amount set out in Condition If you have an ISA, Condition 20 will apply to any transfer to your account. Authorised persons and joint accounts 5.9 HSDL will accept orders and instructions in relation to your account from you and from a person who has a legal right to give HSDL instructions (for example, your trustee if you are made bankrupt, your personal representative, or a person with a legally enforceable power of attorney granted by you) HSDL may also agree to accept instructions from a person from whom you have authorised HSDL in writing to accept instructions If your account is held jointly with another person or persons: (c) (d) (e) each of you is individually and jointly liable for money owed to HSDL and HSDL has the right to demand repayment from all or any of you for all or part of such money; any of you can give instructions or receive notices on behalf of the others and access information provided by the online service; any of you may give HSDL an effective and final discharge in respect of any of HSDL s obligations under the agreement; if any of you die, this agreement will continue and HSDL may treat the survivor or survivors as the only party or parties to the agreement, and as entitled to the assets; and HSDL may contact and otherwise deal only with the account holder named first in HSDL s records, subject to any regulatory requirements or unless you request otherwise. Your obligations 5.12 At all times during the course of this agreement you must: (c) (d) tell HSDL as soon as possible if you no longer meet the eligibility requirements set out at Condition 5.1 and, if your account is an ISA, those set out at Condition 20.2; promptly provide HSDL with any information that it reasonably requests in order to provide the plan to you in line with regulatory requirements; provide HSDL with details of a nominated bank account and ensure that your nominated bank account continues to be able to make and receive payments to and from us; as set out in Condition 6 below, keep your security details secret at all times and not disclose them to anyone, take all reasonable care to prevent unauthorised or fraudulent use of your security details by others, and contact HSDL as soon as possible if you know or suspect that someone knows your security details or is impersonating you;

17 - 8 - (e) (f) (g) (h) (i) tell HSDL whenever your contact details change, including your address, because HSDL will use the most recent contact details on HSDL s records whenever HSDL sends you correspondence; tell HSDL as soon as possible of any material change to the information you have given HSDL as this may affect the service HSDL provides; own and have the right to deal in the assets in your account and ensure that no other person has any rights or interests in those assets that prevents you from dealing in them in line with this agreement; check any confirmation of transactions or statement that HSDL sends you when you receive it and contact HSDL without undue delay if you think it is inconsistent with your instructions or there is any inaccuracy; and otherwise comply with the terms of this agreement and the law If you do not comply with these obligations, this may affect the way HSDL can provide the plan to you and HSDL may: (c) (d) (e) refuse to open an account for you or accept your assets; refuse to deal for you; refuse to make payments or transfer investments from your account; close your account; and/or take any other responsible step necessary to comply with regulatory requirements. 6. Using the plan How to access your plan 6.1 Except as otherwise set out in this agreement you can access your account and use the plan either by the telephone service or by sending HSDL a written instruction by post. You can also view your account through HSDL s online service, although the online service cannot be used to place transactions Your account security and security details 6.2 When HSDL opens an account for you, HSDL will send you security details so that you can access your account. 6.3 HSDL will not accept any instructions or subscriptions from you unless you satisfy HSDL s security verification procedures by using your security details when using the online service or the telephone service. HSDL may require you to provide one or more of your other security details and/or enter your password or give HSDL your PIN before HSDL accept instructions about your account. 6.4 For administration or security reasons, HSDL can require you to use new security details before you use (or carry on using) HSDL s online service or telephone service. 6.5 When you use HSDL s online service or telephone service you must follow any reasonable instructions HSDL gives you from time to time.