Alliance Trust Savings Platform Products Key Facts for Advised Clients

Transcription

1 Alliance Trust Savings Platform Products Key Facts for Advised Clients June 2018

2 2 Key Facts: Alliance Trust Savings Platform Products CONTENTS This is a Key Facts Document (KFD) giving you important information about the Accounts provided by Alliance Trust Savings and is intended to help you decide whether these Accounts are suitable for you. It covers the following: 03 Self Invested Personal Pension (SIPP) Key Facts Document 09 General Investment Account (GIA) Information Guide 13 Stocks & Shares ISA Key Facts Document 17 Stocks & Shares Junior ISA Key Facts Document

3 Key Facts: Alliance Trust Savings Platform Products 3 SELF INVESTED PERSONAL PENSION (SIPP) KEY FACTS The Financial Conduct Authority is the independent financial services regulator. It requires us, Alliance Trust Savings, to give you this important information to help you decide whether our SIPP Account is right for you. You should read this document carefully so that you understand what you are applying for and keep it safe for future reference. HELPING YOU DECIDE What you should know before you invest. What is the purpose of this document? To give you a summary of information to help you decide if you want to invest in our Self Invested Personal Pension (SIPP). What questions should I ask before I invest? In this document we have given you the answers to some very important questions about our SIPP. These are set out between pages 4 and 7 and will give you important information to help you make your investment decision. Who is our SIPP suitable for? Our SIPP, and SIPPs in general, are suited for customers who are comfortable managing their own pension affairs or have a Financial Adviser to assist them. If you only plan to invest a small amount in our SIPP and not add to it over time or transfer other pensions you have to it our flat fee may not be suitable to your personal circumstances. Our SIPP offers wide investment choice and therefore individuals who have an understanding of various investments and wish to invest across different asset types may be attracted to a SIPP. AIMS OF A SIPP To offer you a tax-advantaged way to invest for retirement. To let you choose from a range of investments. To let you start taking money out if you want to, normally from age 55. To give you the option to take some of that money as one or a series of tax-free lump sums (up to 25% of the value of the money you use to provide an income). YOUR COMMITMENT If you wish to make a contribution, you understand that there is a minimum payment of 50. To choose investments that match the risks you are willing to take with your money. You won t normally be able to take money out of your SIPP Account until you are at least 55. To only take money out in a way allowed for under the pension and tax rules that apply at the time. To take financial advice if you are not sure of the right option for you when it comes to taking money out. You will be entitled to free, impartial guidance on your options from Pension Wise a government service completely independent from Alliance Trust Savings. After age 55, to review your arrangements for taking money out regularly, to make sure they are still right for you. To pay us your Account charge. RISKS General risks The value of your investments, and any income you get from them, can go down as well as up and are not guaranteed. You may get back less than you put in. That includes if you cancel in the first 30 days and the value of your investment has fallen by the time we get your instruction. Past performance is not a guide to future performance. These things all mean that, if you set a target amount you would like to get out of your SIPP Account in future, you may not meet that target. The effect of charges may erode the amount of money available in your pension over time, particularly during periods where investment returns are low. Other things that might affect meeting your target are: not keeping up payments you planned; charges being higher than you allowed for; taking money out earlier than you planned; inflation being higher than you expected; and lower than expected investment growth. Laws and tax rules may change in the future without notice. The information here is our understanding in June To manage your investments actively to make sure they continue to be right for you. To view those investments as being for the long term.

4 4 Key Facts: Alliance Trust Savings Platform Products Investment specific risks Different investments have different levels of risk. Some have more risk than others. You can find details of the specific risks for a fund in the fund prospectus and (for most types of fund) a summary in the Key Investor Information Document (KIID)/Key Information Document (KID). Fund managers make their own investment decisions based on the investment objectives of their fund. They don t make decisions based on your personal circumstances. Investments in property funds can be difficult to sell. You might not be able to sell them when you want to. The valuation of property is generally a matter of opinion, rather than fact. If you invest directly in the shares of a company you become a joint owner of that company with the other shareholders. The company, or the industry it is part of, might fail. Factors outside of the control of a company s managers can affect the price of shares. These can be national or global. They include political, economic and social factors and the actions of governments and other organisations. Investment Trusts may borrow to finance further investment (gearing). The use of gearing is likely to lead to increased volatility meaning that a relatively small movement, down or up, in the value of a trust s assets will result in a magnified movement, in the same direction. When you want to trade there may not be a market to buy or sell the shares you are interested in. If investments have holdings which are denominated in a currency other than Sterling they may be affected by movements in exchange rates. Consequently the value of an investment may rise or fall in line with the exchange rates. Risks specific to taking money out of your SIPP Account Taking money out and still being invested in your SIPP Account may not be suitable for you. If you are not sure what to do, you should take financial advice. You will also be entitled to free, impartial guidance on your options from Pension Wise, government guidance service. The rules for pensions and tax might change in the future. If they do, this could affect: the amount of income you can take; what could be paid to your beneficiaries when you die; and how much tax either you or they have to pay. When you die, the tax rules are complicated and significant tax charges might apply to your SIPP Account. When you ask to take money out for the first time (this can be either a tax free cash payment or income), if you cancel after we have paid the money out you will have to pay it back within the 30-day cancellation period, please read our Cancellation Policy for details. OUR LEGAL RELATIONSHIP WITH YOU Our Agreement with you is made up of: these Key Facts; the SIPP Scheme Rules; the Terms and Conditions; our Charges Guide; and your completed Application. You should read these documents as they form part of our Agreement with you and sets out the scope of services that we will provide to you when you open a SIPP Account with us and what we need you to do to help us provide our services. A copy of the SIPP Scheme Rules is available on request from our Customer Services Team or may be downloaded from our website. We may vary the Terms and Conditions, Charges Guide and the SIPP Scheme Rules in the circumstances described in the How and when we will vary our Terms and Charges section of the Terms and Conditions. The current versions of these are available on our website. Any taxable income you take from your SIPP Account will be taxed under the Pay as You Earn system (PAYE). If you take a large lump sum income at once you may end up paying a higher rate of tax than usual. If you receive any means tested benefits, taking an income from your SIPP Account might mean they are reduced or stopped. The value of your SIPP Account might go down when you start taking money out, especially if you take a high income and investment returns are poor. So the income you can take in future might also go down. By taking money out of your SIPP directly it is possible that your Account will run out of money. This can be due to high levels of income taken and/or poorer than anticipated investment performance.

5 Key Facts: Alliance Trust Savings Platform Products 5 YOUR SIPP QUESTIONS ANSWERED What is a SIPP? It is a type of personal pension that lets you access a wide range of investments. A personal pension is a tax-advantaged account designed to help you invest for retirement. Is a SIPP a stakeholder pension? No. Stakeholder pensions have to meet government set standards covering payments, charges and other terms and conditions. A stakeholder pension might meet your needs as well as a SIPP Account. The charges for a SIPP may be higher than for a stakeholder pension. Who can apply for an Alliance Trust Savings SIPP Account? If you are 18 or over and: have earnings that count for UK income tax; or are resident in the UK at some point during the tax year; or want to make a transfer from another registered pension scheme you can apply for a SIPP Account with us. If you are the parent or legal guardian of a child under 18 you can also apply for a SIPP Account on their behalf. We call this a Child SIPP. Whenever we talk about a SIPP Account in this document we also mean a Child SIPP. We don t accept applications by or on behalf of any US Persons. For the details of what we mean by a registered pension scheme, and by US Persons, you can look up our glossary online at alliancetrustsavings.co.uk/glossary. Is this SIPP Account for me? This SIPP Account is for people who are: looking to invest from a range of investments including Funds, Investment Trusts, ETFs and Equities; looking to hold their investments in a tax-advantaged account; willing to view these as long term investments (remember, you can t normally take money out of a SIPP Account until you are at least 55); comfortable with putting their capital at risk for the possibility of better returns; or comfortable that a stakeholder pension wouldn t meet their needs just as well. I m not sure if I need advice? Alliance Trust Savings can t give you financial advice. You should understand the risks and commitments of a SIPP Account before you invest. If you feel you need advice to decide whether a SIPP Account is right for you and don t already have a Financial Adviser, you can search for one near you at Can I change my mind? Yes. You have the right to cancel your SIPP Account within 30 days of us accepting your application. You just need to contact us to let us know. We will give back any money paid in, unless your investment has fallen in value by the time we get your instruction. In that case we will take off the amount by which it has fallen first. You can also change your mind when you ask us to arrange the transfer in of money from another registered pension scheme or to take money out of your SIPP Account for the first time. We ll remind you of your right to cancel in your Welcome Pack, including the address to write to and all the details you ll need to include. Who can pay in to my SIPP Account? Anyone can, including your employer. But you only get a tax advantage (in the form of tax relief) on your personal payments. Personal payments include those you make from your own pocket or that anyone else, other than an employer or former employer, makes on your behalf. And to qualify for the tax relief you have to: have earnings that count for UK income tax; or be (or be treated as) resident in the UK at some point during the tax year being claimed for or in any one of the previous five tax years. How much can I pay in? You can pay in as much as you like each tax year, but you can only get tax relief on payments up to the greater of: up to all of your relevant UK earnings in the tax year (subject to annual allowance); or up to 3,600 (before tax) regardless of any earnings. What is the annual allowance? Each tax year there is an annual allowance for the total that you, your employer and anyone else making payments on your behalf can together pay in or build up across all registered pension schemes in your name. This limits the personal payments on which you can actually claim tax relief. The annual allowance for 2018/19 is 40,000 but there are circumstances when it may be lower. If the tapered annual allowance applies to you If you have earnings of more than 150,000 in a tax year then your annual allowance for that tax year is restricted. For every 2 of earnings over 150,000, 1 of your annual allowance will be lost. The maximum reduction is 30,000. It will be reached if you have earnings of at least 210,000 in the tax year, resulting in an annual allowance for you of 10,000. If you are taking money out from a pension If you are already taking money out from a pension, your annual allowance may be 4,000 (see If I start taking money out, can I still pay money in? for more information).

6 6 Key Facts: Alliance Trust Savings Platform Products YOUR SIPP QUESTIONS ANSWERED Payments for the purposes of working out your annual allowance include: any basic rate tax relief we reclaim on your behalf; and any increase in the value of any defined benefit (sometimes called final salary ) pension to which you are entitled. You will have to pay a tax charge on anything above your annual allowance, unless you can use up ( carry forward ) any left-over annual allowance from up to the three previous tax years. If you d like to find out more about carry forward for any unused annual allowance please read our guide to Accessing Your Pension Savings, available online at alliancetrustsavings.co.uk. How flexible can I be with my payments? Each payment you make (or that anyone else, including your employer, makes on your behalf) must be 50 or more (before any tax relief is claimed). Otherwise, you can be very flexible with your payments. You can set up regular monthly or quarterly payments. You can also make one off payments. And you can start, stop and vary your payments whenever you like. Can I transfer from another pension scheme to my SIPP Account? Yes. You may be able to transfer from another registered pension scheme to your SIPP Account. If we offer the same investments in your SIPP Account that you hold with your current registered pension scheme you can ask to transfer these to us without having to sell them first. Your current registered pension scheme might charge you for transferring and you should work out the impact of any charges on your investment before going ahead. You can t transfer money to us from a private defined benefit scheme unless you have taken advice from a Financial Adviser with the right qualifications. The only exception is when the total transfer value of all your benefits in that scheme is less than 30,000. You are unlikely to be able to transfer money to us from a public sector defined benefit scheme at all. Please check with the scheme concerned before asking us. Pensions are a long term investment and can be complicated. You could lose valuable benefits by transferring so you should seek financial advice before making any pension transfer. There will be a cost for this. You can find details of the different payment methods we accept, how to go about setting up your payments, and also how to transfer from another registered pension scheme to us in our Platform Guide, available online at alliancetrustsavings.co.uk. If you work with a Financial Adviser, this document is available from them or by contacting us. What about taking money out? You can t normally take money out of your SIPP Account until you are aged at least 55. You can take money out after this whether you are retired or not. How and when you take money out is an important decision with potentially long term consequences for funding your retirement. Around the time you can start taking money out of your SIPP Account you will be entitled to free, impartial guidance from Pension Wise a government service completely independent from Alliance Trust Savings. You ll be able to get help about: what you can do with your pension pot; the different pension types and how they work; and what s tax-free and what s not To access the service go to pensionwise.gov.uk or if you prefer to speak to someone you can talk to an impartial guidance specialist on the phone or face to face details are on the website. Pension Wise can t provide financial advice. If you need this you should speak to a Financial Adviser. What are my choices for taking money out? The income approach lets you take a tax free lump sum normally up to 25% of the value of your SIPP Account (or 25% of your lifetime allowance if this is less see page 6). Then you use the rest to set up a taxable income for your retirement. There are two ways to do this: buy an annuity from another company (we don t provide annuities); or move into flexi-access drawdown where you continue to invest in your SIPP Account but start taking money out either regularly or when you need it, until your investment runs out. There are no limits on how much you can take out at any one time under flexi-access drawdown. You can take all your money in one go if you like but remember income is taxed. The cash lump sums approach lets you take your money out as one or a series of cash lump sums. For each lump sum, 25% will normally be paid tax free and you will be taxed on the rest. If you like, you can start with the cash lump sums approach, and move to the income approach later. But you can t do things the other way round. In both cases, apart from the tax free lump sums you can take, you will be taxed under the Pay As You Earn (PAYE) system when your money is paid to you, the same way you would pay tax on a salary. Depending on your personal circumstances, if you take a large lump sum out at once that may mean you end up paying a higher rate of tax than usual. There is no obligation to take a tax-free lump sum or income at any time. For a fuller guide to making decisions about your retirement savings, and more on the details you may need to consider, you can read our guide to Accessing Your Pension Savings, available online at alliancetrustsavings.co.uk.

7 Key Facts: Alliance Trust Savings Platform Products 7 If I start taking money out, can I still pay money in? Yes, as long as your SIPP Account is still open. But your annual allowance will be reduced to 4,000. The only exceptions are: if, under the income approach, you just take out a tax-free cash lump sum but do not take an income right away, then your annual allowance stays at 40,000 until you do start taking an income if you are in a capped drawdown arrangement set up on or before 6 April 2015, when your annual allowance also stays at 40,000 for as long as you stay in that arrangement. Are there any limits for taking money out? No. Not unless you already set up capped drawdown before 6 April 2015 and want to stay in this arrangement. Otherwise you can now move to flexi-access drawdown whenever you like and these limits will no longer apply. If you do this, your annual allowance reduces from 40,000 to 4,000. If you are not sure whether you are in capped drawdown through your SIPP Account, please contact us using the details at the end of the document. You can also find details of the limits for capped drawdown in our Accessing Your Pension Savings Guide. What is the lifetime allowance? There is a lifetime allowance for all your pension savings. The lifetime allowance for 2018/2019 is 1.03 million. On anything you take out from any registered pension scheme above your lifetime allowance you might have to pay a lifetime allowance charge of up to 55%. In recent years the lifetime allowance has been reduced. If you applied for protection from these changes you may have a lifetime allowance higher than 1million. Learn more about the lifetime allowance and protection in our Accessing Your Pension Savings Guide. Can I transfer my SIPP Account from you to another registered pension scheme? Yes. You may be able to transfer your SIPP Account to another registered pension scheme. If the other registered pension scheme offers the same investments as you hold with us you can ask to transfer these without having to sell them first. We will charge you for transferring to another registered pension scheme. Pensions are a long term investment and can be complicated. So we suggest you seek financial advice before making any pension transfer. There will be a cost for this. You can find details of how to set up the different ways of taking money out and other useful information about managing your SIPP Account including how to transfer to another registered pension scheme in our Platform Guide, available online at alliancetrustsavings.co.uk. What are the charges? You pay us an account charge for holding your SIPP Account. We may also charge separately for some transactions (for example, buying and selling investments and transferring your SIPP Account to another registered pension scheme). Full details of all SIPP and dealing charges are in our Charges Guide available at alliancetrustsavings.co.uk. Our charges may change in future. If you invest in funds, you will also pay charges to the fund manager(s). You will find details for each fund in the fund prospectus or in the KID/KIID (for funds that have one). We also provide an Generic Investment Illustration detailing investment projections and examples of breakdown of charges for OEICs, Investment Trusts and Exchange Traded Funds. If you have a Financial Adviser, you may also pay charges to them. They will agree these with you separately. What about tax? You can find details of all our charges in our Charges Guide online at alliancetrustsavings.co.uk. And you can find the KID/KIID for each fund, including the charges, at alliancetrustsavings.co.uk. A SIPP Account is a tax-advantaged account. You get tax relief on what you pay in, and some tax advantages on what you take out (tax-free lump sums). But you may have to pay tax charges if you exceed your annual allowance for paying in or your lifetime allowance for taking money out. Once you start taking an income from your pension, other than any tax-free lump sums you take, you will pay tax on this under the PAYE system. You don t have to pay tax on any income or capital gains from investments held in your SIPP Account or declare these on your tax return. Deposit interest (if applicable) will be paid gross (without deducting tax). Our latest interest rates for cash are in our Interest Rate Table online at alliancetrustsavings.co.uk. Laws and tax rules may change in the future without notice. The information given here and elsewhere in this document is based on our understanding in June It takes no account of your personal circumstances which may impact on tax treatment.

8 8 Key Facts: Alliance Trust Savings Platform Products What happens when I die? If you die before the age of 75, your beneficiaries can take all the money out of your SIPP Account or use it to pay them an income. Either way they won t pay tax on it unless: you have exceeded your lifetime allowance; or payments out are not made to them within two years of your death. If you die after the age of 75, your beneficiaries can still take all the money out of your SIPP Account or use it to pay them an income. Any payments they take will be taxed at their marginal rate of tax. To find out more about what happens to your SIPP Account when you die please read our guide to Accessing Your Retirement Savings, available online at alliancetrustsavings.co.uk. What information do you send me? We send you a Welcome Pack when we accept your application. We will also send you reports and valuations in line with industry regulations. And once a year usually after the end of the tax year we send you an illustration of what you might get back when you start taking money out. If you have already started taking money out we will also send you an illustration that shows you the likely effect of taking more money out in the future. What the illustrations show is not guaranteed. Our Complaints Handling Procedure gives all the details of our complaints process. You can find this online at alliancetrustsavings.co.uk in the Contact Us section. COMPENSATION We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors including most individuals and small businesses are covered by the scheme. In respect of investments held in Accounts, you may be eligible for compensation under the FSCS, up to 50,000. In respect of deposits, an eligible depositor is entitled to claim up to 85,000. For joint Accounts each Account holder is treated as having a claim in respect of their share so, for a joint Account held by two eligible depositors, the maximum amount that could be claimed would be 85,000 each (making a total of 170,000). The 85,000 limit relates to the combined amount in all the eligible depositor s Accounts with the bank, including their share of any joint Account, and not to each separate Account. CONFLICTS OF INTEREST POLICY We have regulatory obligations to identify and manage conflicts of interest. Our Conflicts of Interest Policy explains how conflicts can arise in our business, and the arrangements we have for managing them. You can find our Conflicts of Interest Policy online at alliancetrustsavings.co.uk in the pensions Forms and Documents section, under useful information. Can I access my Account online? Yes. When we open your Account we automatically send you a user ID and password (under separate cover for security). These let you access your Account online and check the value of your SIPP Account at any time. Law The law of England applies if you have a dispute with us. Language We will communicate with each other in English. Complaints If you have a complaint about your SIPP Account, please contact our Service Quality Team in writing, by or on the phone using the contact details shown at the end of this document. You can make a complaint yourself or someone else can complain on your behalf, as long as you have given them written authority to do this. If you are not satisfied with our answer to your complaint you can contact the Financial Ombudsman Service by writing to The Financial Ombudsman Service, Exchange Tower, London, E14 9SR or calling

9 Key Facts: Alliance Trust Savings Platform Products 9 GENERAL INVESTMENT ACCOUNT (GIA) INFORMATION GUIDE This document gives you important information to help you decide whether the Alliance Trust Savings General Investment Account (GIA) is right for you. You should read this document carefully so that you understand what you are applying for and keep it safe for future reference. AIMS OF A GIA To let you choose from a wide range of investments including Equities, Investment Trusts and Funds. To give you potential for capital growth, or income, or a combination of both. To let you take money out on a regular or one-off basis, or a combination of both. YOUR COMMITMENT To pay in at least the minimum investment level of 50 (either as a single lump sum or each time you make a regular payment). To pay us your Account charge. RISKS General risks As a self select General Investment Account, you will be responsible for making investment decisions. Alliance Trust Savings does not give advice. If you are unsure or don t understand the Account or individual investments take professional advice. Investments can go down as well as up. You may get back less than you originally invested. Past performance is not a guide to future performance. The value of your investments, and any income you get from them, can go down as well as up and are not guaranteed. Your General Investment Account does not shelter your investments from tax. Investment specific risks Different investments have different levels of risk. Some have more risk than others. You can find details of the specific risks for a fund or PRIIP (e.g. Investment Trust or ETF) in their prospectus and a summary in the Key Investor Information Document (KIID)/Key Information Document (KID). If investments have holdings which are denominated in a currency other than Sterling they may be affected by movements in exchange rates. Consequently the value of an investment may rise or fall in line with exchange rates. Fund managers make their own investment decisions based on the investment objectives of their fund. They don t make decisions based on your personal circumstances. Investments in property funds can be difficult to sell. You might not be able to sell them when you want to. The valuation of property is generally a matter of opinion, rather than fact. If you invest directly in the shares of a company you become a joint owner of that company with the other shareholders. The company, or the industry it is part of, might fail. Factors outside of the control of a company s managers can affect the price of shares. These can be national or global. They include political, economic and social factors and the actions of governments and other organisations. Investment Trusts may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that a relatively small movement, down or up, in the value of a trust s assets will result in a magnified movement, in the same direction, of that NAV. This may mean that you could get back nothing at all. When you want to trade there may not be a market to buy or sell the shares you are interested in.

10 10 Key Facts: Alliance Trust Savings Platform Products YOUR QUESTIONS ANSWERED What is a General Investment Account? It is an Account that allows you to hold a variety of investments including those available on selected stock markets but not within a tax sheltered product wrapper. Who can apply for a General Investment Account? If you are 18 or over and resident in the UK you can apply for a General Investment Account. You can hold an Account in your own name or jointly with someone else. You can open an Account for a child under the age 18 (our First Steps Account ). Companies, trusts, charities, clubs and societies can also apply for a General Investment Account. We don t accept applications by or on behalf of any US Persons. For the details of what we mean by US Persons, you can look up our Glossary online at alliancetrustsavings.co.uk/glossary. Is this General Investment Account for me? This General Investment Account is intended for people who are: looking to invest from a range of investments including Funds, Investment Trusts, ETFs and Equities; comfortable that their investments will not be sheltered from tax, as they would be in a Stocks & Shares ISA or a Pension for example; or comfortable with putting their capital at risk for the possibility of better returns. I m not sure if I need advice? Alliance Trust Savings can t give you financial advice. You should understand the risks and commitments of a General Investment Account before you invest. If you feel you need advice to decide whether a General Investment Account is right for you and you don t already have a Financial Adviser, you can search for one near you at Can I change my mind? Yes, you can change your mind at any time by taking all of your money out ( withdrawing it) or transferring your investments to another provider. If you ask to withdraw your money, the amount you get back will depend on the value of your investments at the time. It may be more or less than you paid in. It may not be possible to transfer some or all of your investments to another provider without selling them first, if that provider doesn t offer all of the same investments that you hold with us. We will charge you for transferring your Account to another provider. Full details are available in our Charges Guide, available online at alliancetrustsavings.co.uk. How much can I pay in? You can pay as much as you like into a General Investment Account. Because it is not tax-advantaged there are no annual limits. How flexible can I be with my payments? Each payment you make must be 50 or more. Otherwise, you can be very flexible with your payments. You can set up monthly or quarterly payments. You can also make one-off payments. And you can start, stop and vary your payments whenever you like. Can I transfer investments to you from another provider? Yes. If we offer the same investments in our General Investment Account as you hold in a similar Account with another provider you can ask to transfer these to us without having to sell them first. Your current provider might charge you for this and you should work out the impact of any charges on your investment before going ahead. You can find details of all the different payment methods we accept, how to go about setting up your payments, and also how to transfer investments from another provider to us in your Welcome Pack. What about taking money out? You can take money out (make withdrawals) at any time. Each withdrawal you make must be at least 100 unless you are closing your General Investment Account. You can make oneoff withdrawals. You can also set up regular withdrawals on a monthly, quarterly, half-yearly or annual basis. Withdrawals will reduce the value of your General Investment Account. Can I transfer my investments to another provider? Yes. If another provider offers the same investments as you hold in your General Investment Account you can ask us to transfer these without having to sell them first. We will charge you for transferring to another provider. You can find details of how to set up withdrawals and other useful information about managing your General Investment Account including how to transfer to another provider in our Platform Guide, available online at alliancetrustsavings.co.uk.

11 Key Facts: Alliance Trust Savings Platform Products 11 What are the charges? You pay us an Account charge for holding your General Investment Account. We will also charge separately for some transactions (for example, buying and selling investments and transferring your investments to another provider). Full details of the charges we will apply to your General Investment Account can be found in our Charges Guide. We will give you a minimum of 30 days notice where possible of any changes to our charges. Our charges may change in the future. If you invest in funds or PRIIPS, you will also pay charges to the fund manager(s). You will find details for each fund in the fund prospectus or in the KID/KIIDs (for funds that have one). We also provide an Generic Investment Illustration detailing investment projections and examples of breakdown of charges for OEICs, Investment Trusts and Exchange Traded Funds. You can find details of all our charges in our Charges Guide. If you invest through us directly you can find this online in the GIA Forms and Documents section at alliancetrustsavings.co.uk. And you can find the KID/KIIDs for each investment, including the charges, at alliancetrustsavings.co.uk. If you work with a Financial Adviser, these documents are available from them or by contacting us. You are responsible for making sure you comply with relevant tax rules and pay any tax that is due. We will help by sending you a tax certificate each year (normally around May) that summarises the income from your General Investment Account for the tax year just ended. When you die, your General Investment Account will be part of your estate for working out any Inheritance Tax that might be due. What information do you send me? We send you a Welcome Pack when we accept your application. As well as sending you a tax certificate, we will also send you reports and valuations in line with industry regulations. Can I access my Account online? Yes. When we open your Account we automatically send you a user ID and password (under separate cover for security). These let you access your Account online and check the value of your General Investment Account at any time. If you have a Financial Adviser you may also pay charges to them. They will agree these with you separately. What about tax? Your General Investment Account does not shelter your investments from tax. Depending on your individual (or corporate) circumstances you may have to pay tax on any income or capital gains from your General Investment Account. From 6 April 2018 the tax-free Dividend Allowance will be reduced to 2,000. This means that individuals won t have to pay tax on the first 2,000 of their dividend income, no matter what nondividend income they have. The allowance is available to anyone who has dividend income. From 6 April 2016 the 10% tax credit was abolished and all UK dividend income is paid gross. Individuals pay tax on any dividends they receive over 2,000 at the following rates: 7.5% on dividend income within the basic rate band 32.5% on dividend income within the higher rate band 38.1% on dividend income within the additional rate band Basic rate taxpayers who receive dividends in excess of 2,000 will need to complete a self-assessment. All higher rate or additional rate tax payers will continue to complete self-assessments. This simpler system will mean that only those with significant dividend income will pay more tax.

12 12 Key Facts: Alliance Trust Savings Platform Products Law The law of England applies if you have a dispute with us. Language We will communicate with each other in English. Complaints If you have a complaint about your General Investment Account please contact our Service Quality Team in writing, by or on the phone using the contact details shown at the end of this document. You can make a complaint yourself or someone else can complain on your behalf, as long as you have given them written authority to do so. If you are not satisfied with our answer to your complaint, you can contact the Financial Ombudsman Services by writing to The Financial Ombudsman Service, Exchange Tower, London, E14 9SR or calling CONFLICTS OF INTEREST POLICY We have regulatory obligations to identify and manage conflicts of interest. Our Conflicts of Interest Policy explains how conflicts can arise in our business, and the arrangements we have for managing them. You can find our Conflicts of Interest Policy online at alliancetrustsavings.co.uk in the Forms and Documents section, under useful information. You should read this document along with our Terms and Conditions and our Charges Guide. You can find both at alliancetrustsavings.co.uk or if you work with a Financial Adviser, you can get these documents from them or by contacting us. Together with this product guide they give the full picture of how we manage your General Investment Account and the legal relationship between us. Our Complaints Leaflet gives all the details of our complaints process. You can find this online at alliancetrustsavings.co.uk in the Contact Us section. COMPENSATION We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors including most individuals and small businesses are covered by the scheme. In respect of investments held in Accounts, you may be eligible for compensation under the FSCS, up to 50,000. In respect of deposits, an eligible depositor is entitled to claim up to 85,000. The 85,000 limit relates to the combined amount in all the eligible depositor s Accounts with the bank, including their share of any joint Account, and not to each separate Account. Our Compensation Statement gives more details about the FSCS and what it covers. You can find this online at alliancetrustsavings.co.uk You can also visit the FSCS website or call them on

13 Key Facts: Alliance Trust Savings Platform Products 13 STOCKS & SHARES ISA KEY FACTS The Financial Conduct Authority is the independent financial services regulator. It requires us, Alliance Trust Savings, to give you this important information to help you decide whether our Stocks & Shares ISA is right for you. You should read this document carefully so that you understand what you are applying for and keep it safe for future reference. HELPING YOU DECIDE What you should know before you invest. What is the purpose of this document? To give you a summary of information to help you decide if you want to invest in our Stocks & Shares ISA. What questions should I ask before I invest? This document answers some important questions about our Stocks & Shares ISA and provides information to help you make your investment decisions. Who is our Stock & Shares ISA suitable for? Our Stocks & Shares ISA and Stocks & Shares ISAs in general, are suited for clients over 18 and a UK resident who are comfortable managing their own investments or have a Financial Adviser to assist them. If you only plan to invest a small amount in our Stocks & Shares ISA and not add to it over time our flat fee may not be suitable to your personal circumstances. Our Stocks & Shares ISA offers a wide investment choice. Therefore, individuals who are comfortable with the risks of investing and have an understanding of various investments and wish to invest across different asset types may be attracted to a Stocks & Shares ISA. AIMS OF A STOCKS & SHARES ISA To offer you a tax-advantaged way to invest. To let you choose from a range of investments. To give you potential for capital growth, or income, or a combination of both. To let you take money out on a regular or one-off basis, or a combination of both. YOUR COMMITMENT To choose investments that match the risks you are willing to take with your money. To view those investments as being for the medium to longer term, meaning you should usually plan to hold them for 5 years or more. To pay us your Account charge. To pay into only one Stocks & Shares ISA each tax year and no more than HMRC allows each tax year ( 20,000 for 2018/19). RISKS General risks The value of your investments, and any income you get from them, can go down as well as up and are not guaranteed. You may get back less than you put in. That includes if you cancel in the first 30 days and the value of your investment has fallen by the time we get your instruction. Past performance is not a guide to future performance. Both the rules for ISAs and tax, and our charges, might change in the future. Laws and tax rules may change in the future without notice. The information here is our understanding in June Investment specific risks Different investments have different levels of risk. Some have more risk than others. You can find details of the specific risks for a fund or PRIIP (e.g. Investment Trust or ETF) in their prospectus and a summary in the Key Investor Information Document (KIID)/Key Information Document (KID). Fund managers make their own investment decisions based on the investment objectives of their fund. They don t make decisions based on your personal circumstances. Investments in property funds can be difficult to sell. You might not be able to sell them when you want to. The valuation of property is generally a matter of opinion, rather than fact. If you invest directly in the shares of a company you become a joint owner of that company with the other shareholders. The company, or the industry it is part of, might fail. Factors outside of the control of a company s managers can affect the price of shares. These can be national or global. They include political, economic and social factors and the actions of governments and other organisations.

14 14 Key Facts: Alliance Trust Savings Platform Products Investment Trusts may borrow to finance further investment (gearing). The use of gearing is likely to lead to increased volatility meaning that a relatively small movement, down or up, in the value of a trust s assets will result in a magnified movement, in the same direction. When you want to trade there may not be a market to buy or sell the shares you are interested in. If investments have holdings which are denominated in a currency other than Sterling they may be affected by movements in exchange rates. Consequently the value of an investment may rise or fall in line with exchange rates. Over time cash that remains uninvested in your Account, could be eroded by inflation and zero or low interest rates. OUR LEGAL RELATIONSHIP WITH YOU You should read this document along with the: The Terms and Conditions Our Charges Guide Together with your application, these documents give a full picture of how we manage your Stocks & Shares ISA Account the legal relationship with us. YOUR STOCKS & SHARES ISA QUESTIONS ANSWERED What is a Stocks & Shares ISA? It is a tax-advantaged Account designed for medium to long term investment (5 years or more). Who can apply for a Stocks & Shares ISA? If you are 18 or over and resident in the UK you can apply for a Stocks & Shares ISA. You must hold it in your own name and you can only pay in to one Stocks & Shares ISA each tax year. We don t accept applications by or on behalf of any US Persons. Is this Stocks & Shares ISA for me? This Stocks & Shares ISA is for people who are: looking to invest from a range of investments including Funds, Investment Trusts, ETFs and Equities; looking to hold their investments in a tax-advantaged Account; willing to view these as medium to long term investments (5 years or more); or comfortable with putting their capital at risk for the possibility of better returns. I m not sure, what if I need advice? Alliance Trust Savings can t give you financial advice. You should understand the risks and commitments of a Stocks & Shares ISA before you invest. If you feel you need advice to decide whether a Stocks & Shares ISA is right for you and don t already have a Financial Adviser, you can search for one near you at Can I change my mind? Yes. You have the right to cancel your Stocks & Shares ISA within 30 days of us accepting your application. You just need to contact us to let us know. We will give you your money back, unless your investment has fallen in value by the time we get your instruction. In that case we will take off the amount by which it has fallen first. We ll remind you of your right to cancel in your Welcome Pack, including the address to write to and all the details you ll need to include. How much can I pay in? You can pay in up to 20,000 to an ISA in the 2018/19 tax year. You can hold some or all of this as cash if you like. If you have already paid into a Cash ISA, Innovative Finance ISA or Lifetime ISA this tax year with any provider, that reduces the amount you can pay in to this ISA. This ISA is non-flexible so the amount subscribed is not reduced if you make a subsequent withdrawal. How flexible can I be with my payments? Each payment you make must be 50 or more. Otherwise, you can be very flexible with your payments. You can set up regular monthly or quarterly payments. You can also make one-off payments. And you can start, stop and vary your payments whenever you like. Can I transfer a Stocks & Shares ISA I have with another manager to you? Yes. You can transfer all or part of an existing Stocks & Shares ISA to us. If you are transferring payments from the current tax year, you have to transfer these to us in full. If we offer the same investments in our Stocks & Shares ISA as you hold with your current ISA manager you can ask to transfer these to us without having to sell them first. Your current manager might charge you for transferring and you should work out the impact of any charges on your investment before going ahead. You can find details of the different payment methods we accept, how to go about setting up your payments, and also how to transfer a Stocks & Shares ISA from another manager to us in your Welcome Pack.

15 Key Facts: Alliance Trust Savings Platform Products 15 What about taking money out? You can take money out (make withdrawals) at any time. Each withdrawal you make must be at least 100 unless you are closing your ISA. You can make one-off withdrawals. You can also set up regular withdrawals on a monthly, quarterly, half-yearly or annual basis. Withdrawals will reduce the value of your ISA. All payments in to this ISA count towards your 20,000 limit for a tax year. So you can t withdraw money and then pay it back in later that same tax year if doing this would put you over your limit. This ISA is non-flexible so the amount subscribed is not reduced if you make a subsequent withdrawal. Can I transfer my Stocks & Shares ISA from you to another manager? Yes. You can transfer all or part of your Stocks & Shares ISA to another ISA manager. If you want to transfer payments from the current tax year, you have to transfer these to the other manager in full. If your new manager offers the same investments in their Stocks & Shares ISA as you hold with us, you can ask to transfer these to your new manager without having to sell them first. We will charge you for transferring to another manager, for full details view our Charges Guide at alliancetrustsavings.co.uk. What are the charges? You pay us an Account charge for holding your Stocks & Shares ISA. We may also charge separately for some transactions (for example, buying and selling investments and transferring your ISA to another manager). Our charges may change in future. If you invest in funds, you will also pay charges to the fund manager(s). You will find details for each fund in the fund prospectus or in the KID/KIID (for funds that have one). See our Generic Investment Illustration document for more details of the effect of charging on investments at alliancetrustsavings.co.uk. You can find details of all our charges in our Charges Guide. If you invest through us directly you can find this online in the ISA Forms and Documents section at alliancetrustsavings.co.uk. And you can find the KID/KIID for each fund, including the charges, at alliancetrustsavings.co.uk. If you work with a Financial Adviser, these documents are available from them or by contacting us. What about tax? An ISA is a tax-advantaged Account. You don t have to pay tax on any income or capital gains from your ISA or declare these on your tax return. That includes any interest we might pay on cash you hold in your ISA, which we will pay to you gross (without deducting tax). You can view our Interest Rate Table at alliancetrustsavings.co.uk. Laws and tax rules may change in the future without notice. The information given here is based on our understanding in May It takes no account of your personal circumstances which may impact on tax treatment. What happens when I die? If you die on or before 5 April 2018 the tax advantages of your ISA will end as at your date of death. Tax won t be backdated, but your legal representatives will pay tax on income or capital gains from the date you die until your ISA is closed. Your ISA will also be part of your estate for working out any Inheritance Tax that might be due. If you die on or after 6 April 2018 your ISA will retain its tax advantages. The Account will remain as an ISA until the earlier of a) the completion of the administration of your estate; b) the closure of your Account; or c) the 3rd anniversary of your date you death. After which the ISA will lose its tax advantages. If you have a spouse or civil partner who is living with you when you die, special rules for ISA allowances in this case mean they may be able to continue benefitting from the tax advantages by transferring your ISA savings to an ISA in their name. What information do you send me? We send you a Welcome Pack when we accept your application. We also send you statement and valuation reports in line with regulations. Can I access my Account online? Yes. When we open your Account we automatically send you a user ID and password (under separate cover for security). These let you access your Account online and check the value of your Stocks & Shares ISA at any time. If you have a Financial Adviser you may also pay charges to them. They will agree these with you separately.