THE SALE FOR REGULAR PAYMENT SERVICE.

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1 INVESTOR PORTFOLIO SERVICE SELF DIRECTED THE SALE FOR REGULAR PAYMENT SERVICE. How IPS helps you make regular payments by selling from your investments Use this form to set up a new Sale for Regular Payment instruction, or to change an existing Sale for Regular Payment instruction. Before setting up a new Sale for Regular Payment you must read Section 1. A Sale for Regular Payment will have consequences on your investment. SECTION 1 explains what a Sale for Regular Payment is, how it works and answers some of the most commonly asked questions. SECTION 2 is your application form to set up a Sale for Regular Payment. This will also replace any existing instruction currently in place. You should complete and sign Section 2 to provide your confirmation and return to: Investor Portfolio Service, PO Box 1112, Chelmsford CM99 2UX. You should keep Section 1 for your reference.

2 SALE FOR REGULAR PAYMENT 2 SECTION 1: YOUR QUESTIONS ANSWERED ON THE SALE FOR REGULAR PAYMENT SERVICE. Q1. WHAT IS A SALE FOR REGULAR PAYMENT? A. A service to help manage payments you have arranged to go out of your IPS Cash Account. Where you have instructed us to make payments from your IPS Cash Account but don t have enough money in that account to meet the payments due to be paid that month, you can set up a Sale for Regular Payment to instruct Cofunds to sell a portion of your ISA, and/or unit trusts and OEICs to raise the required amounts. Q2. WHAT IS THE MAIN BENEFIT AND CONSIDERATION? A. Benefit the setting up of a Sale for Regular Payment removes the worry of checking every month that your Cash Account has enough money in it to pay your fees/charges. Consideration in a situation where your funds are regularly sold to meet payments, your capital could be reduced or entirely depleted and you may lose tax benefits or incur tax liabilities. We provide more details about tax later on. Q3. WHAT PAYMENTS CAN I MAKE USING A SALE FOR REGULAR PAYMENT? A. It applies to the following payments: Platform Fee Service Charges Q4. HOW DOES A SALE FOR REGULAR PAYMENT WORK? A. We will calculate whether you have enough money in your IPS Cash Account to cover any related payments due to go out that month. This calculation takes place on the 5th working day of the month. If the calculation shows that you will not have enough money in your IPS Cash Account to meet the required payments, on the 9th working day of the month we ll sell enough units from your investments to raise the required amount. We ll sell 10% over the required amount to cover any further shortfall that may result from market movements between the date of the calculation and the date of the sale. The minimum we ll sell from a single fund is 1.10 of units. Any amount left over following the sale will remain in your IPS Cash Account to be included in the next calculation. We have a default way of selling units as explained below. However, if you have both an ISA and unit trust/oeic, you can change this default so that the charges only come out of the largest value commission-free fund in either your unit trust/oeic or ISA by completing section 2 of this form. We ll sell units as follows: If you only hold an ISA or a unit trust/oeic we ll sell units from the largest value commission-free fund in that product. If you hold a joint unit trust/oeic we ll sell units from the largest value commission-free fund in your joint unit trust/oeic to pay for the charges relating to that product only. Charges for any other investments held by a joint holder will not be taken from the joint unit trust/oeic. If you hold an ISA and a unit trust/oeic we ll sell units from the largest value commission-free fund held across both products. We ll sell units from this fund in proportion to the amount of charge due on each product. Please see the next question for an example.

3 SALE FOR REGULAR PAYMENT 3 Q5. WHAT HAPPENS IF I HAVE MORE THAN ONE PRODUCT? A. To calculate the largest value commission-free fund we look at the commission-free funds you hold in all of your products. Fund A 30% 3,000 For example your largest value commission-free fund could be a fund that you hold: Only in your ISA Only in your unit trust/oeic In both products if you hold the same fund in more than one product this could make it the largest value commission-free fund. If the largest value commission-free fund is held across your unit trust/oeic and ISA we ll sell units from the fund in proportion to the amount of charge due on each product. See Figure 1 below for an illustration. Figure 1: Example of how the largest value commission-free fund is calculated across multiple products. Unit trusts/oeics 10,000 Fund B 30% 3,000 Fund C 40% 4,000 Fund A 25% 2,500 ISA 10,000 Fund D 25% 2,500 Fund E 50% 5,000 Fund A is the largest value commission-free fund held over the whole portfolio, with 5,500 held in total, although it is not the largest value held in a single fund in either the unit trust/oeic or ISA product. Units are sold from Fund A to pay the charges due on both products, in proportion to the charge due on each product, so half from the investment funds and half from the ISA. Q6. CAN I CHOOSE WHICH PRODUCT THE SALE FOR REGULAR PAYMENT APPLIES TO? A. The example in question 5 shows our default process for selling units when your largest value commission-free fund is held across multiple products. However, you can change this by completing section 2. For example, you can tell us to only sell units from your unit trust/oeic and not from your ISA. Q7. WHAT IF SALE FOR REGULAR PAYMENT CAN T RAISE ENOUGH TO MEET THE PAYMENTS I VE ARRANGED TO GO OUT OF MY ACCOUNT? A. We ll attempt to sell funds to raise the amount required to meet all the scheduled payments, but if enough money can t be raised then some or all of your payments may not be met. The priorities of payments are as follows: 1. IPS Platform Fee (payments to Cofunds) 2. Service Charge (payments to your introducer) If, at the time of the calculation, not enough money can be raised to meet any of the payments you ve arranged to go out of your IPS Cash Account we ll stop your Sale for Regular Payment instruction for the current month. Any IPS Platform Fees or Service Charges will accrue we ll attempt to sell assets to pay for these the following month. We ll write to notify you of any changes that are made to your account.

4 SALE FOR REGULAR PAYMENT 4 Q8. WHAT IF MARKET MOVEMENTS MEAN THAT MY SALE FOR REGULAR PAYMENT CAN T RAISE ENOUGH TO MEET THE PAYMENTS I VE ARRANGED TO GO OUT OF MY ACCOUNT? A. At the time of calculation, if it shows we can raise enough to meet your scheduled payments, we ll carry out the sale on the 9th working day of the month. However, as the sale is four working days after the calculation, market movements may mean that the sale doesn t raise the predicted amount. If this means that there s insufficient money within your IPS Cash Account when the payments are due, we ll use the money that has been raised to pay the scheduled payments in the priority order set out in question 7. Should there not be enough to pay all the payments in full, we ll pay as many of the lower priority payments as possible. Q9. WHAT IF I TRADE BETWEEN THE CALCULATION AND SALE DATES? A. In a situation where you choose to place a sell or switch transaction between the calculation date on the 5th working day of the month and the sale date on the 9th working day of the month, this can result in the units needed for the Sale for Regular Payment becoming unavailable. In these instances we ll not be able to carry out the Sale for Regular Payment using the usual automatic process, which may mean that the sale is delayed to the 10th business day of the month. Q10. ARE THERE ANY TAX IMPLICATIONS ARISING OUT OF A SALE FOR REGULAR PAYMENT? A. Within a Cofunds ISA there s no capital gains tax for the sale of units. However, once you ve withdrawn money from your ISA you ll lose the future tax benefits on the amount withdrawn. For unit trust/oeic funds, you may incur a capital gains tax liability on the gain made through the sale of units. GLOSSARY. Capital Gains Tax If you sell your investment any growth may be subject to capital gains tax, if you exceed your annual capital gains tax allowance. Commission-free fund A fund that doesn t include an element of commission payable to an Adviser within the Ongoing Charges Figure (OCF). IPS Cash Account Is the central facility for holding cash on the IPS platform. Date of Calculation On the 5th business day of the month we review your Cash Account to ensure that you have enough funds in your Cash Account to pay any withdrawals, charges etc that are due to go out that month. Date of Sale Occurs on the 9th business day of the month if after the Date of Calculation we see that you do not have sufficient funds in your account, we start the Sale for Regular Payment. Fund(s) General term for a form of investment. It works by gathering money from investors and invests it according to a clear set of investment objectives. Sell Is when you cash in your investment. Shortfall The amount by which a financial obligation or liability exceeds the amount of cash that is available. Switch Is to take your investment out of one fund and re-invest into another. Unit(s) A fund is made up of units, so the person(s) that are invested into a fund(s) all own units of that fund(s). We/us/our Where you see a reference to we or us or our throughout this document, unless otherwise stated, this refers to Cofunds.

5 SALE FOR REGULAR PAYMENT 5 SECTION 2: SALE FOR REGULAR PAYMENT MANDATE. Please tick the boxes as appropriate. 1 PERSONAL DETAILS COMPLETE THIS SECTION IN FULL Existing IPS customer reference Mr/Mrs/Ms/Miss/Other Surname Forename(s) in full Address Postcode Contact telephone number Date of birth D D M M Y Y Y Y Please tick Do you have a National Insurance number? Male Yes Female No If Yes, please provide your National Insurance number Please note, there may be times when we need further identification from you. We ll contact you if this is the case. Please see the Using IPS document for more information on our identification process and why we may need additional information. You can find this document online at 2 CLIENT DECLARATION Please tick the following boxes. (If you don t confirm by ticking all three boxes we will be unable to process your instruction.) I confirm that I have read the processes detailed in Section 1 and the possible consequences of these processes on my investment. I am aware that the Sale for Regular Payment process may result in the reduction of my capital, and/or in capital gains tax liabilities. I authorise Cofunds to set up a Sale for Regular Payment in accordance with my instructions below. 3 INSTRUCTION I choose for the Sale for Regular Payment mandate to apply to: My ISA AND/OR My unit trust/oeic If I have selected ISA above and there is insufficient money left in that investment, units will automatically be sold from the largest value commission-free fund in my unit trust/oeic, if I have one. If I have selected unit trust/oeic above and there is insufficient money left in that investment, units will automatically be sold from the largest value commission-free fund in my ISA, if I have one. This replaces any existing Sale for Regular Payment instruction. Name Signed Please include the names of all joint holders: Please include the signatures of all joint holders: Date D D M M Y Y Y Y Please return section 2 to: Investor Portfolio Service, PO Box 1112, Chelmsford CM99 2UX

6 Cofunds Limited Registered in England and Wales No Registered office: Level 43, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AB We are authorised and regulated by the Financial Conduct Authority. Q /17 NON ASD