Reference to With-Profits within this document is only applicable to policyholders pre 11/09/17.

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1 For Adviser Use Only Not approved for use with clients. In giving your clients advice, we appreciate that you ll have carefully considered their personal and financial circumstances, financial needs, priorities and risk profile. These factors will determine what recommendations you make. Suitability letters must be personalised and specific to individual clients. These paragraphs are designed to help you substantiate your recommendation of the International Prudence Bond. They re not intended to form the whole of the suitability letter. Please note that if you use these paragraphs, or similar text for any reason, you must ensure compliance with the appropriate regulations. Whilst every care has been taken to ensure the accuracy of the following information, Prudential International will not accept liability if you decide to use it. The Spanish International Prudence Bond is a single premium investment bond which is potentially suitable for UK expatriates who have accumulated funds and are looking to invest over the medium to long term in a tax efficient environment. Important Information Access to the Prudential PAC Sterling, PAC Euro and PAC US Dollar With-Profits Funds is no longer available to new customers investing in International Prudence Bond (IPB) on or after 11/09/2017. However, if you have an existing customer pre 11/09/2017, they will still be able to top up or switch into the Prudential With-Profits PAC Sterling, PAC Euro and PAC US Dollar Funds. It is important to note we are not closing the Prudential With-Profits Fund. The underlying fund and ongoing management of the fund will remain the same and access will continue to be available to the With-Profits Fund through the PruFund range of funds. Reference to With-Profits within this document is only applicable to policyholders pre 11/09/17. The Spanish International Prudence Bond (SIPB) Why invest offshore Tax-efficiency 1. Prudential International is based in Dublin, Ireland and as a result, your money will roll up free of tax other than withholding tax (which applies to the dividend income on some assets held in the funds). This can give you a potentially higher return than investing in UK-based funds. Strength and experience Why Prudential International 2. As part of the Prudential Group, Prudential International is a strong and financially secure organisation with a well-respected name. The Prudential Group serve around 24 million customers worldwide, who between them trust the company to manage 635 billion of their money*. Prudential International has been built on a heritage dating back to 1994.

2 *as at 30 June 2017 Expertise 3. Prudential International s track record in the multi-asset fund area is well recognised, they have a concrete understanding of the international market and dedicated teams of specialists. The Prudential Group has been helping people plan for their future for over 166 years. Its size and experience puts it in a strong position to invest customers money wisely for the medium to long term. Why IPB Key benefits 4. You can buy funds in euro, sterling or US dollars. There s a minimum allocation rate of 100%, so all of your money goes directly into your investment. In addition, if you invest more than 75,000 or the equivalent in euro or US dollar, Prudential International will add 0.5% of the bond value and if you invest over 150,000, they ll give you 1.5% of the bond value. You can start your investment with 20,000, 25,000 or $35,000 and can top up from 15,000, 20,000 or $25,000. There s a 101% death benefit if you re aged 75 or under, so 101% of the value of your policy would be paid on your death. If you re 76 or over then the death benefit is 100.1%. Fund choice PruFund NB. Paragraph 5 should be used with either 6, 7, 8, 9, 10, 11, 12, 13 or The PruFund range of funds are invested in Prudential's With-Profits Fund so you can be reassured that the full strength and resource of Prudential underlies them. Like the With-Profits fund, they aim to smooth the peaks and troughs of investment markets by using an established smoothing process: By spreading your investment across many different areas such as, UK equities, Property, Fixed Interest, International equities and cash. This aims to reduce the risk of your investment experiencing the extreme ups and downs associated with any single investment type. Our investment specialists will look for the best opportunities for growth within each investment area. By applying an established smoothing formula. Where a proportion of the money gained during good performance is held back to ensure a reasonable return during poorer performance. The formula has two elements: - Expected Growth Rates which apply on a day to day basis; and - Unit price adjustments, which will be applied when the formula requires us to do so. In addition, these funds are available with guarantee options which allow you to protect the value of your investment at a particular point in time which could be linked to your anticipated retirement date. 6. You have chosen to invest in the PruFund Growth (Sterling) Fund

3 which aims to maximise growth over the medium to long term while The fund currently invests in UK and international equities, property, 7. You have chosen to invest in the PruFund Growth (Euro) Fund which aims to maximise growth over the medium to long term while The fund currently invests in European and international equities, property, fixed interest securities, indexlinked securities and other specialist 8. You have chosen to invest in the PruFund Growth (Dollar) Fund which aims to maximise growth over the medium to long term while The fund currently invests in US and international equities, property, 9. You have chosen to invest in the PruFund Cautious (Sterling) Fund diversified portfolio of UK and international fixed interest securities and holdings of cash and money market instruments. The balance is invested in equities, property and alternative assets. 10. You have chosen to invest in the PruFund Cautious (Euro) Fund diversified portfolio of European and International fixed interest securities and holdings of cash and money market instruments. The balance is invested in equities, property and alternative assets. 11. You have chosen to invest in the PruFund Cautious (Dollar) Fund diversified portfolio of US and International fixed interest securities and holdings of cash and money market instruments. The balance is invested in equities, property and alternative assets. 12. You have chosen to invest in the PruFund Protected Cautious (Sterling) Fund which aims for steady and consistent growth through a cautious approach to investing. The fund invests around 70% in a well diversified portfolio of UK and international fixed interest securities and holdings of cash and money market instruments. The balance is invested in equities, property and alternative assets. 13. You have chosen to invest in the PruFund Protected Cautious (Euro) Fund which aims for steady and consistent growth through a cautious diversified portfolio of European fixed interest securities and holdings of cash and money market instruments. The balance is invested in equities, property and alternative assets.

4 14. You have chosen to invest in the PruFund Protected Cautious (Dollar) Fund which aims for steady and consistent growth through a cautious diversified portfolio of US fixed interest securities and holdings of cash and money market instruments. The balance is invested in equities, property and alternative assets. With-Profits Funds NB. Paragraph 15 should be used with either 16, 17 or The With-Profits Funds are reinsured into the long-term fund of the Prudential Assurance Company Limited (PAC), one of the largest with-profits funds in the UK. This means you have the reassurance of knowing that the full strength and resource of Prudential underlies these funds. The PAC With-Profits Funds aim to smooth the peaks and troughs of investment performance by using a system of bonuses in order to provide a more stable investment return. We achieve this by holding back some of the returns in good years so there is money to fall back on in the bad years. With-Profits funds can only achieve this if they have a sensible investment approach and the resources and financial strength to commit over the medium to longterm. 16. You have chosen to invest in the PAC Sterling With-Profits Fund. The fund aims to maximise growth over the medium to long term while The fund currently invests in UK and international equities, property, 17. You have chosen to invest in the PAC Euro With-Profits Fund. This fund is currently invested in European and international equities, property, fixed interest securities, index-linked securities and other specialist 18. You have chosen to invest in the PAC US Dollar With-Profits Fund. The fund aims to maximise growth over the medium to long term while The fund currently invests in US and international equities, property,

5 To be used to cross reference to Statement of Charges IPBS10135 Your Statement of Charges document will provide full details of the applicable fund charges. Compliance wording and paragraphs they should be used with: To be used if any fund choice paragraphs are used The value of an investment may fluctuate and is therefore not guaranteed. You may not get back the full amount of your investment. For investments in the With-Profits Fund, the value of the plan depends on how much profit the fund makes and how Prudential International decides to distribute it. If money invested in the With-Profits Funds is taken out at any time, except on death or at your selected retirement age, the amount paid out may be reduced to reflect the current market value of the underlying assets. This is known as a Market Value Reduction. To be used if any paragraphs are used Full Terms and Conditions of the International Prudence Bond are available on request. To be used if paragraph 1 is used The above is based on our understanding of current taxation, legislation and Revenue practice, all of which are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.