DEPOSIT PLAN and ISA KEY FEATURES

Transcription

1 Legal & General (Portfolio management SERVICES) LIMITED Legal & General Stock Market Linked Savings Bond 10. DEPOSIT PLAN AND ISA KEY FEATURES AND TERMS AND CONDITIONS

2 2 DEPOSIT PLAN and ISA KEY FEATURES WHAT IS THE LEGAL & GENERAL STOCK MARKET LINKED SAVINGS Bond 10? The Legal & General Stock Market Linked Savings Bond 10 (the plan) is a plan that can be held as a Deposit Plan or an ISA, that has a fixed term of 6 years. As a deposit, it is designed to pay back your original investment at the end of the term. It also offers a stock market linked return at the end of the term based on the performance of three major world stock markets. WHAT DOES THE LEGAL & GENERAL STOCK MARKET LINKED SAVINGS BOND 10 OFFER? The Legal & General Stock Market Linked Savings Bond 10 is designed to offer, at the end of the 6 year term: a 14% minimum return, or if greater; 100% of any capital growth in the following three indices, FTSE 100 Index, DJ Euro STOXX 50 Index and S&P 500 Index, up to a maximum of 50% of your original investment; plus the return of your original investment. The growth of the indices will be averaged over the final year and this is explained in How is the plan return achieved? on page 5.

3 DEPOSIT PLAN and ISA KEY FEATURES 3 HOW DOES MY PLAN WORK? You give us your money and we open a plan for you. As we are not a bank or building society, we cannot hold your money on deposit. Therefore, on 17 August 2011 we pass your money to Nationwide Building Society who hold it, as Deposit Taker, until the end of the 6 year term. Nationwide will then pass your original investment plus any returns applicable to us. This could take up to seven days. The money will then be available to you. We will be your Deposit Plan and ISA Manager and your point of contact. HOW LONG SHOULD I HOLD MY PLAN? You must hold your Legal & General Stock Market Linked Savings Bond 10 for the full 6 year fixed term to benefit from the stated returns. WHEN WILL MY deposit PLAN/ISA CLOSE? Your plan will automatically close at the end of 6 years on 17 August If your plan is held as an ISA, it will remain open until we receive your final instructions. CAN I ACCESS MY MONEY EARLY? This plan is designed as a 6 year fixed term investment. If held as a Deposit Plan, no withdrawals are allowed at any time before the end of the fixed term. If held as an ISA and your situation changes, you can get your money out early. If you do, you could get back less than you originally invested. It depends on the current value determined by Nationwide Building Society. If you take some of your money out, this will affect what you get back at the end of the fixed term. Is my money safe? Once Nationwide Building Society holds your money, and whilst it is in a client account (before and after the fixed term), it will be held on deposit and will have the same security as with any other bank or building society account. In the event that Nationwide Building Society or the bank or building society that provides our client bank account were to become insolvent you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS). See pages 17 and 18 for more information about the FSCS and how your money is held.

4 4 DEPOSIT PLAN and ISA KEY FEATURES KEY FEATURES OF THE LEGAL & GENERAL STOCK MARKET LINKED SAVINGS BOND 10. The Financial Services Authority is the independent financial services regulator. It requires us, Legal & General, to give you this important information to help you decide whether the Legal & General Stock Market Linked Savings Bond 10 is right for you. You should read this document carefully together with the Terms and Conditions so that you understand what you are buying, and keep it safe for future reference. The Legal & General Stock Market Linked Savings Bond 10 is designed to offer, at the end of the 6 year term: a 14% gross/2.20% AER minimum return, or if greater; 100% of any capital growth in the following three indices, FTSE 100 Index, DJ Euro STOXX 50 Index and S&P 500 Index, up to a maximum of 50% of your original investment; plus the return of your original investment. You will earn pre-investment interest at a fixed rate equivalent to 0.87% gross/aer from the date your payment is treated as cleared until 12 August This interest will be included in your total investment amount. The gross rate of interest is the rate payable before the deduction of income tax. AER stands for Annual Equivalent Rate. It shows what the interest rate would be if it was paid once each year. This lets you compare interest rates across different accounts and what return you can expect from your savings over time. Every advertisement for a savings product that quotes an interest rate will contain an AER.

5 DEPOSIT PLAN and ISA KEY FEATURES 5 IS THE LEGAL & GENERAL STOCK MARKET LINKED SAVINGS BOND 10 RIGHT FOR ME? This plan may be right for you if you are looking for: your money to be invested for a fixed term of 6 years; the potential for a return linked to a range of stock markets; a deposit based plan (and you have other money set aside for short-term needs/ emergencies and any debts you may have); a new home for your cash ISA. This plan may not be suitable if you are looking for: access to your money during the fixed term; direct investment in the stock markets; an investment that doesn t limit the growth you receive; a way to set aside money for emergencies or to cover any debts. HOW IS THE PLAN RETURN ACHIEVED? 1. Your investment starts on 17 August 2011; this is the plan start date. On this date we will record the level of each index at the close of business. This is known as the start level. 2. In the final year of your plan, we will record the level of each index at the close of business on every business day between 17 August 2016 to 17 August 2017 (inclusive), and work out the average. This is the final year level. 3. We then work out the percentage change between the start level and the final year level, for each of the three indices individually. 4. We then add the three percentage change figures together and divide by three. This gives us the Average Index Growth. 5. If the Average Index Growth figure is lower than 14%, you ll get your money back plus 14%. If the Average Index Growth figure is higher than 14%, you ll get your money back plus 100% of the Average Index Growth figure. The maximum you could get back is 50% of your original investment. Your original investment amount will include any pre-investment interest you have earned, which will also be included when we calculate your returns.

6 6 DEPOSIT PLAN and ISA KEY FEATURES The table below show what would happen to a 5,000 investment based on various growth levels of the indices. These figures do not take into account any pre-investment interest. Example 1 shows 100% of the Average Index Growth received. Example 2 shows no stock market linked growth received, original investment returned plus a 14% minimum return. Example 3 shows 50% maximum growth received. The returns shown are examples and give no guarantee of the indices return. EXAMPLE FTSE 100 Index performance DJ Euro STOXX performance S&P 500 performance Total percentage change Average Index Growth Growth received at end of the 6 year term Deposit Plan amount received at end of the 6 year term* ISA amount received at end of the 6 year term 20% 20% 85% 30% -5% 65% 40% -30% 75% 90% -15% 225% 30% -5% 75% 30% 14% 50% 6,200* 5,560* 7,000* 6,500 5,700 7,500* * The amounts received in the above table are shown after the deduction of income tax at the basic rate. A note about United Kingdom income tax: higher rate and additional rate tax payers will have further tax to pay on growth payments in a Deposit Plan, and if you are in receipt of age allowance, the interest could impact on your entitlement. If you pay tax at less than the basic rate, you may be able to reclaim some or all of the tax deducted from HM Revenue & Customs. All information is based on our understanding of current taxation in the United Kingdom, which may be subject to statutory change.

7 DEPOSIT PLAN and ISA KEY FEATURES 7 WHAT ELSE DO I NEED TO KNOW BEFORE I OPEN THIS PLAN? Your money will not be invested directly in the companies that make up the FTSE 100 Index, DJ Euro STOXX 50 Index and S&P 500 Index. As a result, you will not be eligible to receive any dividend income or have the opportunity for reinvestment of the dividends from the companies that form these indices. As with other deposit products, there are no specific charges on the plan. Averaging, as described on page 5, is used over the final 12 months of the investment. This may restrict any potential return if the FTSE 100 Index, DJ Euro STOXX 50 Index or S&P 500 Index rise over the averaging period. The maximum growth you could potentially receive is 50%, therefore, you may not benefit from significant rises in the indices. Your money will not be invested with Legal & General. It will be passed to Nationwide Building Society, an authorised Deposit Taker. WHICH THREE INDICES ARE MY PLAN LINKED TO? The Legal & General Stock Market Linked Savings Bond 10 is linked to the performance of the FTSE 100, DJ Euro STOXX 50 and S&P 500 indices. FTSE 100 Index This is an Index of the UK s largest 100 companies listed on the London Stock Exchange, currently including household names such as Tesco, Vodafone and Unilever. DJ EURO STOXX 50 INDEX This is an Index made up of 50 major companies drawn from the 12 Eurozone exchanges. These exchanges are linked by having the Euro as a common currency. It currently features such names as Philips, L Oreal and Nokia. S&P 500 Index This is an Index made up of 500 of the largest companies by size (share price times number of shares in issue) in the US. Some of the more familiar current names include Microsoft Corp, Apple Inc and Walt Disney Co.

8 8 DEPOSIT PLAN and ISA KEY FEATURES What charges and expenses will I have to pay? There are no charges for you to pay out of your investment. The cost of providing the stated returns for this plan are taken into account in setting those returns and the amount of FTSE 100, DJ Euro STOXX 50 and S&P 500 indices growth you could receive. HOW WILL INFLATION AFFECT THE VALUE OF MY PLAN? Unless the return on your plan meets or exceeds the rate of inflation, the real value of your investment will reduce. How does the pre-investment interest work? Any pre-investment interest will be included with your original investment. For Deposit Plans it will be paid net of UK income tax at the basic rate (currently 20%). For ISAs it will be paid gross. Following receipt of your application, payments by debit card will be treated as cleared after four business days and by cheque after one business day.

9 DEPOSIT PLAN and ISA KEY FEATURES 9 How much can I put in the Plan? For Deposit Plans You can invest a lump sum of 3,000 or more; there is no maximum amount. For Cash ISA for 2011/2012 tax year The minimum you can invest is 3,600. The maximum you can invest is 5,340. For ISA transfers The minimum you can invest is 3,600 from each ISA Manager. There is no maximum transfer amount. During the offer period you can make as many transfers as you wish, subject to minimum investment limits. The dates for this current issue are shown below. Once the offer period has closed, you can t make any more additional investments. Plan term and Important dates Offer available: 6 June to 30 July 2011 Start date: 17 August 2011 End of fixed term: 17 August 2017 Deposit and ISA application deadline: 30 July 2011 ISA transfer application deadline: 30 July 2011 Maximum offer period Legal & General (Portfolio Management Services) Limited may, in exceptional circumstances, close an issue early. This may occur if too little money is received to make the issue viable or because the issue has been over subscribed. If your application is not accepted then your investment will be returned in full.

10 10 DEPOSIT PLAN and ISA KEY FEATURES Important Information. Your questions answered We are the Deposit Plan and ISA Manager for a range of fixed term deposits known as Legal & General Deposit Bonds. The Legal & General Stock Market Linked Savings Bond 10 is part of this range. Where we refer to Legal & General Deposit Bond Plan in this brochure, we are referring to features that are the same in each plan in the range. Where we refer to Legal & General Stock Market Linked Savings Bond 10, we are covering a feature specific to this plan. Why choose Legal & General? The Legal & General Group, established in 1836, is one of the UK s leading financial services companies. As at 31 December 2010, we were responsible for investing 365 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans. What are the risk factors? If the Deposit Taker is unable to pay us what they owe, you could lose some or all of your money. Unless the return on your plan meets or exceeds the rate of inflation, the real value of your investment will reduce. Deposit Plan only: You will not have access to your money until the end of the fixed term of 6 years. ISA only: The favourable tax situation of ISAs may not be maintained. If you have to take out some or all of your money before the end of the fixed term, you may receive back less than you originally invested. Using your ISA allowance There are two types of ISA, a cash ISA and a stocks and shares ISA. For the 2011/2012 tax year The maximum investment for a cash ISA is 5,340 and 10,680 for a stocks and shares ISA. These can be held with the same or different managers. The total ISA limit for this tax year is 10,680, but please note that this maximum includes any amount you may hold in a cash ISA. This product is only available as a cash ISA.

11 DEPOSIT PLAN and ISA KEY FEATURES 11 ISA transfers The Legal & General Deposit Bond ISA is available for transfers from cash ISAs taken out in this or previous tax years. If you hold a cash ISA for this tax year or for a previous tax year, you can transfer it to a Legal & General Deposit Bond ISA. There is no maximum limit to the amount you can transfer but the minimum is 3,600 for each ISA Manager. Legal & General will make no charge for receiving such transfers, however, you should check whether your existing manager will charge an exit fee or penalty. You will not benefit from any returns while the transfer is pending. If you start a cash ISA and transfer to a stocks and shares ISA in the same tax year, any amount you have contributed will count towards your stocks and shares allowance. This means any amount of your allowance you have not used, could be invested into a new cash ISA. ISA transfers to Legal & General If you wish to transfer your current or a previous tax year cash ISA to Legal & General, the minimum transfer amount is 3,600 from each ISA manager. You will need to complete the relevant section of the application form. Remember, if you are transferring a cash ISA taken out in the current tax year, you must transfer your whole ISA investment, that you have subscribed in this year. Once we have received your transfer form, we will send it to your existing manager who will take it as authority to cash in your investment according to their Terms and Conditions. They will then send the transfer proceeds directly to Legal & General for investment. Your existing manager may charge an exit fee or penalty. Please note that transfer applications must be received two weeks prior to the end of the offer period of the relevant plan. ISA transfers from Legal & General If you wish to transfer your cash ISA from Legal & General to another manager, we will need notification from them in writing. On receipt of their notification, your investment held within your ISA will be cashed in and the cash value will be transferred to your new manager. Please note, if the request to transfer is received by Legal & General before the end of the fixed term, it will be subject to the conditions as described in Can I cash in my ISA before the end of the fixed term?. If you have invested in your cash ISA in the same tax year in which you wish to transfer your account, you must transfer the entire cash ISA holding. You will not benefit from any returns while the transfer is pending.

12 12 DEPOSIT PLAN and ISA KEY FEATURES Who can invest? You must be aged 18 years or over to apply. Deposit Plans are not available to US residents. ISAs must be held in your name only. ISAs are only available to those resident and ordinarily resident in the UK for tax purposes. How to apply To invest in this plan, please complete the application form provided or online at You can also apply with a Maestro or Visa Debit card by telephone. All applications must be received by us before the date on the top of the application form. To help with your own administration on Deposit Plans, you can choose a reference (called a designation ) to help identify your investments. This may be useful if you want to hold the plan for a specific purpose. Whatever the reason, you ll remain the owner of any referenced account. What is the relationship between Legal & General and the Deposit Taker? Legal & General (Portfolio Management Services) Limited is the Plan and ISA Manager for the Legal & General Deposit Bond. We do not hold your money but will pass it to the Deposit Taker. We will be your Deposit Plan and ISA Manager and point of contact. How is the plan linked to the FTSE 100, DJ Euro STOXX 50 and S&P 500 indices? Investments will be purchased from financial institutions that provide you with the link to the indices. Although the investment does not invest directly into the companies in the indices, any growth you receive will be determined by the return of the actual indices. You will not receive any dividends from the companies that form the indices.

13 DEPOSIT PLAN and ISA KEY FEATURES 13 What documentation will I receive? Within six days of our receipt of your application we will send you a welcome letter and a notice giving you the right to cancel the plan. On the start date of the issue, an opening statement will be sent to you giving you details of your plan. Every 12 months we will send you a statement and a confirmation of your holding. For joint holders of Deposit Plans, we ll send all correspondence to the first applicant, in their name only, unless you request otherwise. If you are investing jointly, we ll need all investors to sign for future transactions. What happens if I want to cancel? You will receive notice of your right to cancel your plan, and you will then have 14 days in which you can change your mind. You can cancel your plan by simply returning your completed cancellation notice form and you will have your investment returned with any interest earned. See the Contacts section on page 20. If you decide to cancel an ISA transferred to Legal & General, you will lose the ISA entitlement relating to that transfer and the proceeds will be sent to you. If you do not exercise your cancellation rights within the 14 day cancellation period then: you will remain invested in your chosen Legal & General Deposit Bond Plan; and you will be subject to all the risks as detailed in these Key Features; and you forfeit your right to contribute to any other cash ISA with another manager for the tax year that you make this investment; and you will not be able to replace any contributions withdrawn within the same tax year, unless the amount you wish to invest is within your unused ISA allowance. Can I cash in my plan before the end of the fixed term? No withdrawals are allowed on Deposit Plans at any time before the end of the fixed term. For ISAs, if your situation changes you can get your money out early. However, if you do, you could get back less than you originally invested. It depends on the current value determined by the Deposit Taker. If you do need to take out some or all of your money, you should contact us by the 7th and 20th of each month. See the Contacts section on page 20. You will receive payment within five working days of these dates. You can take out 500 or more, but you must leave at least 500 to keep your ISA open. You can, of course, take all of your money and close your ISA.

14 14 DEPOSIT PLAN and ISA KEY FEATURES What happens to my plan if I die? For ISAs or Deposit Plans held in one name, when we receive proof of death and all other documentation needed to make a payment we will either: a) repay the current value and any applicable interest, to your personal representatives; or b) transfer the investment to a named beneficiary(ies), to continue the investment until the end of the fixed term. If this option is chosen, your beneficiary(ies) will receive, and must agree to, the relevant Terms and Conditions. If you die before the end of the term, and the holding is not retained until that date, your personal representatives may get back less than the original investment, dependent on the current value as determined by the Deposit Taker. For Deposit Plans held in joint names, the plan will continue in the name of the survivor. What happens at the end of the fixed term? At the end of the fixed term, the Deposit Taker will pay Legal & General the original investment, plus any applicable returns, within two working days. If you have taken any money out, the amount paid will be reduced accordingly. Around the end of the fixed term, we will write to you outlining the options available to you. You will retain your ISA status whilst we are waiting for your instructions. Once we have received your instructions, we will endeavour to fulfil your request within seven working days from the end of the fixed term or from receipt of your instructions, if later. We will hold the proceeds of your Deposit Plan in an interest-bearing client account for a reasonable period until we receive your instructions. All interest earned will belong to you. For Deposit Plans, the interest will be paid net of UK income tax at the basic rate (currently 20%). For ISAs, the interest will be paid gross. If we do not hear from you within a reasonable time, we will return the proceeds to your nominated bank or building society account. What s my tax liability? The following tax assumptions are based on our understanding of current taxation in the UK and are subject to change. The value of tax advantages will depend on your individual circumstances and where your money is invested. If you need tax or legal advice, please contact a financial adviser.

15 DEPOSIT PLAN and ISA KEY FEATURES 15 For Deposit Plans Any income and/or growth will be treated as interest. Any interest paid will be paid net of UK income tax at the basic rate (currently 20%) as required by law. This satisfies the income tax liability for a basic rate taxpayer. Higher rate and additional rate tax payers will have further tax to pay. If you are in receipt of age allowance, the interest could impact on your entitlement. If you are a non-tax payer or your taxable income is below the starting rate for savings income, currently 2,560, you may be able to reclaim some or all of the tax deducted from HM Revenue & Customs using the tax voucher that will be provided. Details about reclaiming tax are available from your tax office or on HM Revenue & Customs website. Any interest payments from the investment will not be subject to capital gains tax. If you are an investor residing abroad, depending on your residency status, you may be liable to pay tax in a country outside the UK. If so, you may be liable to tax on any income or capital gains. If you need advice, you should consult a suitable tax adviser or the tax authorities in the country concerned. For ISAs Under current legislation, all cash ISA investments are free of tax. Therefore, any returns will be paid tax free. If you are an investor residing abroad, depending on your residency status, you may be liable to pay tax in a country outside the UK. If so, you may be liable to tax on any income or capital gains. If you need advice, you should consult a suitable tax adviser or the tax authorities in the country concerned. Please remember, you must be resident and ordinarily resident in the UK for tax purposes to subscribe to an ISA. How much will you pay to Nationwide? We will pay commission to Nationwide Building Society for selling Legal & General s products. The amount depends on the size of any investment you make. These commission payments are already taken into account in calculating the returns stated at the beginning of this brochure. For any investment we pay up to 3.0% of the value of the investment. For example, on an investment of 1,000 we pay Nationwide up to 30. If you receive advice from Nationwide when you take out your investment, Nationwide Building Society may use part of the commission to pay your adviser.

16 16 DEPOSIT PLAN and ISA KEY FEATURES How do you support advisers? We provide intermediary firms and advisers with additional benefits that are designed to enhance the quality of their service to you. These benefits may include some or all of the following: training, software, seminars and marketing materials. Further details of any benefits received from us are available on request from your intermediary firm/adviser. What if I ve any doubt about the suitability of this plan or require personal advice? This brochure does not provide personal advice or recommendations. It is important that you only invest in this product if it meets your needs. It will only be suitable if you are prepared to invest your money, with no access, for a fixed period of time. You should have separate money set aside for emergencies. Your financial adviser or local Nationwide branch will be pleased to answer any questions you may have. What is my customer category? We are required by our regulator (the Financial Services Authority) to categorise our customers to determine the level of investor protection they receive. If you buy products from this brochure you will be treated as a retail client, unless we agree otherwise. You can choose to be categorised as a professional client or an eligible counterparty, but this means you receive less information about our products and services. Also, you would not be entitled to receive a suitability report or appropriateness assessment where these would be required for retail clients. If you are a professional client or eligible counterparty, you can ask to be categorised as a retail client, although this does not necessarily mean you can refer any complaints to the Financial Ombudsman Service, and you may not be eligible for compensation under the Financial Services Compensation Scheme. Why do I need to prove my identity? To protect you and us from financial crime, we may need to confirm your identity from time to time. We may do this by using reference agencies to search sources of information about you (an identity search). This will not affect your credit rating. If this identity search fails, we may ask you for documents to confirm your identity. In certain circumstances, we may need to contact you to obtain more information regarding your investment.

17 DEPOSIT PLAN and ISA KEY FEATURES 17 Complaints If you wish to complain about any aspect of the service you receive from Legal & General, or would like us to send you a copy of our internal complaints handling procedure, please contact us. See the Contacts section on page 20. Should you feel that your complaint is not dealt with to your satisfaction, you may be entitled to take the matter up with the: Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR Making a complaint will not prejudice your right to take legal proceedings. Compensation The Financial Services Compensation Scheme (FSCS) is triggered when an authorised deposit taker (such as a bank, building society or credit union) is unable, or likely to be unable, to repay its depositors. Joint account holders are each entitled to claim compensation. Both the deposit taker for this plan, Nationwide Building Society, and the provider of our client money account, Royal Bank of Scotland plc, are covered by the FSCS. Your ability to claim from the FSCS and the amount you may be entitled to will depend on the specific circumstances of your claim. Most depositors, including individuals and small businesses, are covered by the FSCS. The FSCS covers the first 85,000 of each customer s claim against each bank or building society. Some banks and building societies operate under a number of trading names. The total FSCS compensation claim will include claims against all these trading names. You can find out more about the FSCS (including amounts and eligibility to claim) by visiting its website or calling

18 18 DEPOSIT PLAN and ISA KEY FEATURES Where is my money held and how secure is it? Before the start date and after the fixed term During the fixed term Where is my money held? Your money is held on deposit in a client account with a bank or building society. This is currently Royal Bank of Scotland plc. Your money is held on deposit by Nationwide Building Society. Is my money secure in the event that the bank/building society holding my money becomes insolvent? Yes, although any investment in this plan will contribute towards your total claim against the bank or building society. If your total claim for compensation against Royal Bank of Scotland plc is 85,000 or less, including the money you have put in this Plan, you should get back all of your money. If your claim is more than 85,000 in total, you may lose some or all of the money you hold in this Plan. The Royal Bank of Scotland plc operates under the trading names of Royal Bank of Scotland, Direct Line, Lombard, the One Account, Child & Co, Drummonds and Holt s. The total FSCS compensation claim will include claims against all these trading names. Yes, although any investment in this plan will contribute towards your total claim against Nationwide Building Society Group. If your total claim for compensation against Nationwide Building Society Group is 85,000 or less, including the money you have put in this Plan, you should get back all of your money. If your claim is more than 85,000 in total, you may lose some or all of the money you hold in this Plan. Nationwide Building Society Group operates under the trading names of Nationwide Building Society, Cheshire Building Society, Derbyshire Building Society and Dunfermline Building Society. Is my money secure in the event that Legal & General becomes insolvent? Yes as your funds are held on deposit in the client account they are kept separate from Legal & General s funds. Yes as your funds are held on deposit with Nationwide Building Society they are kept separate from Legal & General s funds. Does my money have the same security as a traditional savings account? Yes. Yes.

19 DEPOSIT PLAN and ISA KEY FEATURES 19 Deposit Plan, ISA Manager and Deposit Taker Deposit Plan and ISA Manager Legal & General (Portfolio Management Services) Limited Registered office: One Coleman Street London, EC2R 5AA Registered in England No Legal & General (Portfolio Management Services) Limited is authorised and regulated by the Financial Services Authority (FSA). We are on their register under the following number: Legal & General (Portfolio Management Services) Limited You can check this at or by contacting them on Deposit Taker Nationwide Building Society Nationwide House Pipers Way Swindon, SN38 1NW Registered in England No. 355B. Nationwide Building Society is authorised and regulated by the Financial Services Authority under registration number Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority. You can check this at or by contacting them on Regulator Financial Services Authority 25 The North Colonnade Canary Wharf London, E14 5HS The Terms and Conditions, which are governed by English law, shall apply as soon as an application is accepted. In the event of any conflict between the FSA regulations and the Terms and Conditions, the former will prevail. The Terms and Conditions and all communications will only be available in English. All communications from us will normally be by letter or telephone.

20 20 DEPOSIT PLAN and ISA KEY FEATURES Contacts You can call us on the telephone number below for general information, buying or queries about your plan. Customer Services: Lines are open Monday to Friday 8.30am to 6.00pm. We may record and monitor calls. Calls to this number will not exceed your fixed line or mobile phone provider s national rate and will be included in any inclusive free minute plan or discount scheme you may have with your telephone provider. Call charges will vary between telephone providers. This number may not be available from outside the UK. You can write to us at this address, if you want/need to obtain information, give us instructions or have any queries or complaints: Legal & General Investments PO Box 6080 Wolverhampton WV1 9RB Giving notice Legal & General shall not be bound to act in accordance with the instructions of anyone other than you or your personal representatives. Any notice given to Legal & General by you must be in writing (or any other method deemed acceptable by Legal & General) and should be sent to, and will only become effective on receipt at, one of the following: Legal & General Investments or Legal & General Investments PO Box 6080 EDM House Wolverhampton WV1 9RB Village Way Bilston Wolverhampton WV14 0UJ or such other address of which you may be notified after acceptance. Legal & General will acknowledge such notice and comply with it except where we believe that compliance would be impracticable or contrary to any law or rule or regulation. This is the end of the Key Features. The rest of the document contains the Terms and Conditions that you should also read.

21 DEPOSIT PLAN and ISA TERMS AND CONDITIONS 21 TERMS AND CONDITIONS OF THE LEGAL & GENERAL STOCK MARKET LINKED SAVINGS BOND Definitions Account means your cash Individual Savings Account ( ISA ) which includes any cash ISA transferred from an existing cash ISA contracted under these Generic Terms and Conditions and any relevant Addendum. Account Manager, we, us, or our means Legal & General (Portfolio Management Services) Limited or such successors or assignees as we shall notify you under Clause 14. Account Opening Period means the period during which we may accept Applications to make subscriptions into the Account or a specific offering of the Deposit Bond as detailed in the relevant Addendum. Addendum means additional Terms and Conditions which relate to a specific offering of the Deposit Bond which apply with and in addition to these generic Terms and Conditions. Application means the properly completed application form for investment into your Plan. Balance means a Deposit into this Deposit Plan for any specific offering of the Deposit Bond as detailed in the relevant Addendum less any withdrawals and/or adjustments. Brochure means the document describing the important characteristics of the Deposit Plan to which your application relates, including its aims and associated risks. Business Day means a day (other than Saturday or Sunday) on which commercial banks are open for business in London. Deposit means the amount you invest in a specific offering of the Deposit Bond, which is your subscription plus any Pre-Investment Interest. Deposit Account means one or more deposit accounts established by the Plan Manager with the Deposit Taker in respect of the Deposit together with deposits made by the other investors in an offering. A separate deposit account or deposit accounts will be established for each offering of the Deposit Bond.

22 22 DEPOSIT PLAN and ISA TERMS AND CONDITIONS Deposit Plan means your investment contracted under these generic Terms and Conditions and any relevant Addendum. Deposit Plan Manager, ISA Plan Manager, we, us, or our means Legal & General (Portfolio Management Services) Limited or such successors or assignees as we shall notify you under Clause 14. Deposit Taker means the licensed deposit taker detailed in the relevant Addendum. Early Withdrawal Adjustment means an adjustment made to your Account should you make a withdrawal/transfer/close your Account before the Maturity Date and which is calculated by the Deposit Taker in accordance with the relevant Addendum. Early Withdrawal Amount means the amount you will receive should you close your Account prior to the Maturity Date. Early Withdrawal Amount = Balance (or part there of for a partial withdrawal) Early Withdrawal Adjustment. The remaining Balance will then be adjusted accordingly. Early Withdrawal Deadline means 5.00pm on both the 7th and 20th day of each month or where this is not a Business Day, then the previous Business Day. Extraordinary Event means a significant event as detailed in the relevant Addendum. Income Interest means any interest paid between the Start Date and the Maturity Date as detailed in the relevant Addendum. Maturity Date means the date on which a specific offering of the Deposit Bond is due to mature, as detailed in the relevant Addendum. Maturity Interest means the interest payable at the Maturity Date as detailed in the relevant Addendum and payable in accordance with Clause 4. Plan Opening Period means the period during which we may accept Applications to make subscriptions into the Deposit Plan or Account or a specific offering of the Deposit Bond as detailed in the relevant Addendum. Pre Investment Interest means the interest you will earn on monies received by us from you with your Application, which is calculated on a daily basis at the rate shown in the relevant Addendum.

23 DEPOSIT PLAN and ISA TERMS AND CONDITIONS 23 Related Company means any company which is a subsidiary or holding company of the Deposit Plan Manager or Account Manager or which is a subsidiary of any such holding company and for which purposes the expressions subsidiary and holding company have the same meanings as in section 736 of the Companies Act Start Date means the date on which your Deposit is invested by the Deposit Plan Manager or Account Manager in the Deposit Account and your Deposit Bond commences, as detailed in the relevant Addendum. Terms and Conditions means these terms and those in any relevant Addendum. Withdrawal Adjustment means an adjustment made to your Deposit Plan should your personal representatives decide to close your Deposit Plan following your death before the Maturity Date and which is calculated by the Deposit Taker in accordance with the relevant Addendum. Withdrawal Amount means the amount your estate will receive should your personal representatives decide to close your Deposit Plan prior to the Maturity Date. Withdrawal Amount = Balance (or part thereof for a partial withdrawal) Withdrawal Adjustment. The remaining Balance will then be adjusted accordingly. Withdrawal Deadline means 5.00pm on both the 7th and 20th day of each month or where this is not a Business Day, then the previous Business Day. Written or in Writing means an instruction including your original signature. You means the individual(s) or Trustee or Corporate Body making the application and opening a Deposit Plan or Account.

24 24 DEPOSIT PLAN and ISA TERMS AND CONDITIONS 2. Introduction These Terms and Conditions apply to your Deposit Plan or Account. (a) You should read these terms along with the other information contained in our literature including the Key Features and the Application. (b) The Deposit Plan Manager and Account Manager are authorised and regulated by the Financial Services Authority. (c) Under these Terms and Conditions (and any relevant Addendum), the Deposit Plan Manager deals with your Deposit as bare trustee. This means that whilst the Deposit Plan Manager and Account Manager are the legal owner of the Deposit Account and the deposits of all investors held in the Deposit Account, the money is held by the Deposit Plan Manager or Account Manager for the absolute benefit of you and the other investors. (d) The Deposit Taker is authorised and regulated by the Financial Services Authority to accept deposits. 3. INVESTING IN YOUR DEPOSIT PLAN OR ACCOUNT (a) We may accept a duly completed Application and payment from you, or in the case of an ISA transfer the payment from the other ISA manager, subject to these Terms and Conditions. We reserve the right to reject an Application if our requirements are not met. (b) Providing your Application has been accepted then the Deposit will be invested in the relevant Deposit Account on the Start Date subject to the clearance of funds. It will be opened in accordance with the details set out in your Application. (c) You may only invest by lump sum payment. Acceptable payment methods are detailed in your Application. (d) Details of the minimum and maximum investment amounts are provided in the Brochure. There is no maximum amount for transfers from existing cash ISAs. (e) Faxed or Applications will not be accepted unless by prior agreement with the Plan Manager. Where an Application is made for an Account other than in Writing, the Account Manager will make a written declaration confirming all the details provided by you in the Application and send a copy to you. You will have 30 days to notify any corrections to the Account Manager from the date the copy declaration is sent to you. Any revised declaration will take effect from the date of the original declaration by the Account Manager on your behalf. If a revised declaration is received after 30 days have elapsed, that declaration will only take effect from the date it is received at the address in Clause 19. Faxed or Applications will not be accepted unless by prior agreement with the Plan Manager.

25 DEPOSIT PLAN and ISA TERMS AND CONDITIONS 25 (f) If, 30 days after acceptance, we are still waiting to receive any information reasonably required to verify your identity, we will assume that the Deposit Plan is to be closed. As a result the Deposit will be withdrawn on the business day after the first Withdrawal Deadline after the expiry of the 30 day period and you will receive the Withdrawal Amount on the date of the withdrawal. Except in exceptional circumstances, these payments will be returned to the original source of the contribution. If this relates to an ISA, your annual ISA entitlement relating to any ISA contribution will be lost. 4. Managing Your Deposit Plan OR ACCOUNT (a) During the Plan Opening Period your subscription will be held by us in a designated client money account. We will pay into your Deposit Plan or Account the Pre-Investment Interest immediately prior to the Start Date. (b) The Deposit will be invested by us in the relevant Deposit Account on the Start Date. (c) The Deposit will be held on deposit by the Deposit Taker in the Deposit Account until the Maturity Date unless terminated earlier in accordance with these Terms and Conditions. (d) Any Income Interest is paid as detailed in the relevant Addendum. The income will be paid into the bank or building society account as detailed in your Application or any account held by you that you subsequently inform us about in Writing. (e) By the end of the second Business Day after the Maturity Date the Deposit Plan Manager or Account Manager will pay the Balance plus Maturity Interest into your Deposit Plan or Account less any deduction for tax as detailed in Clause 10. Around the Maturity Date, we will write to you outlining the options available to you. We will hold the proceeds of your Deposit Plan in an interest-bearing client account for a reasonable period until we receive your instructions. All interest earned will belong to you. For Deposit Plans, if we do not hear from you within a reasonable time, we will return the proceeds to your nominated bank or building society account. (f) We will be responsible for administering all subscriptions and repayments under your Deposit Plan or Account, including any early withdrawal. (g) We will send you a statement for your Deposit Plan or Account yearly. Details of the exact statement dates are available on request from the address in Clause 19. Please note that there is no annual report or accounts (or any other information issued other than your statement). There are no shareholders, securities holders or unit holders mailing or voting rights applicable to your Deposit Plan or Account.

26 26 DEPOSIT PLAN and ISA TERMS AND CONDITIONS (h) If an Extraordinary Event occurs, the details given in the relevant Addendum and/or indices that the Deposit Plan or Account is linked to may be subject to change. (i) We will tell you if your Account has, or will become, void because they have failed to satisfy the provisions of the ISA regulations. 5. CANCELLATION (a) You may withdraw your application for the Deposit Plan or Account in writing at any time up to and including the Start Date and receive a full refund of your subscription with any Pre-Investment Interest. We will make payment by direct credit. (b) Alternatively, you can cancel your Deposit Plan or Account within 14 days of receiving your cancellation notice which will be issued following receipt of your Application and subscription. We will terminate your Deposit Plan or Account as detailed in (a) above. Your Deposit Plan or Account will continue if we do not receive your cancellation notice within the 14 days. (c) If you exercise the right to cancel an ISA transfer, you will permanently lose your ISA entitlement relating to that transfer. (d) Except for ISA transfers, and in exceptional circumstances, cancellation payments will be returned to the original source of the subscription. 6. CASH HELD (a) Except when stated in these Terms and Conditions, interest will not be paid on any money held by us on your behalf that is not invested in the Deposit Account or ISA. (b) All money belonging to clients is held in a separate client account, which is identified as a trust account. All clients money is segregated from the funds belonging to the Deposit Plan Manager or Account Manager. We will hold money we receive from you for investment in our client account until we make payment to the Deposit Taker to be invested in the Deposit Account or ISA. 7. TITLE (a) The deposit made by us with the Deposit Taker in respect of the Deposit Account or ISA will be held for you together with other investors in the Deposit Account or ISA on trust in the name of the Deposit Plan or Account Manager. (b) The deposit may not be used as security to borrow money. (c) Although your investment will be recorded and separately identified by us, your entitlement may not be identifiable by separate documents or certificates of title. Therefore in the event of default by the Deposit Taker or the Deposit Plan or Account Manager, any shortfall may be shared pro rata among all investors affected.

27 DEPOSIT PLAN and ISA TERMS AND CONDITIONS 27 (d) During the continuance of your Deposit Plan or Account, you will remain the beneficial owner of a proportion of the Deposit Account that relates to the Deposit and of any cash held on your behalf by us before the Start Date or after the Maturity Date. 8. early WITHDRAWAL AND DEPOSIT PLAN CLOSURE AND ISA TRANSFERS OUT (a) For Deposit Plans, you cannot withdraw any of your investment from any specific offering under the Deposit Bond before the Maturity Date. For ISAs, you may withdraw all or part of your investment from any specific offering under the Deposit Bond or completely close your Account by giving us notice to that effect. The notice must be in Writing. You must be aware that the amount you will receive on withdrawal before the Maturity Date may be considerably less than the amount of the Deposit. Any partial withdrawal instruction must make it clear whether a particular amount, net of the withdrawal adjustment, is required, or a set proportion of the original Deposit. (b) You may transfer all or part of your Account relating to any specific offering under the Deposit Bond before the Maturity Date, as permitted by the ISA Regulations, to another ISA manager. We can take up to 14 days to process this transfer. You must be aware that the amount you will receive on transfer before the Maturity Date may be considerably less than the amount of the Deposit. (c) Notice of withdrawal, transfer or closure must be received by us by the Early Withdrawal Deadline in order for a transfer, withdrawal or closure to be made on the following Business Day. Requests received after this point will be actioned on the Business Day following the next Early Withdrawal Deadline. (d) The minimum partial withdrawal or transfer is 500 provided a value of at least 500 remains invested in the Account. (e) If your transfer or withdrawal is made or the Account closed prior to the Maturity Date, we will request the Deposit Taker to pay the Early Withdrawal Amount from the Deposit Account. (f) For any withdrawal, we will pay the Early Withdrawal Amount to you within 10 Business Days of the withdrawal from or closure of your Account. Payments will be paid into the bank or building society account as detailed in your Application or any account held by you that you subsequently inform us about in Writing. (g) For any transfer in relation to an Account, we will pay the Early Withdrawal Amount directly to the new ISA manager. (h) We may close your Deposit Plan or Account at any time by giving three months notice to you to that effect if we are no longer able to act as Deposit Plan or Account Manager.

28 28 DEPOSIT PLAN and ISA TERMS AND CONDITIONS 9. DEATH (a) For Deposit Plans held in more than one name, the Deposit Plan will continue in the name(s) of the surviving investors. (b) For ISAs the Account will, in accordance with the ISA Regulations, terminate. If a transfer to your personal representative or beneficiary has been requested in line with (c) below, we will request that they agree to the terms and conditions of the appropriate investment plan. This investment plan may not include an early withdrawal option. (c) In the event of your death as a single named investor, before the Maturity Date, and following receipt of the evidence we require, your personal representatives may elect to either close your Deposit Plan or Account (and receive the Withdrawal Amount) or transfer your Deposit Plan or Account into the name of the personal representatives or a beneficiary of your estate. If a transfer to your personal representative or beneficiary has been requested, we will open a Deposit Plan in the name of your personal representative or beneficiary with the proceeds of your Deposit Plan. (d) Receipt of the evidence required to enable us to make payment must be received by us by the Withdrawal Deadline in order for the Deposit Plan or Account to be closed on the next Business Day. If such evidence is received after this point, the Deposit Plan or Account will be closed on the Business Day following the next Withdrawal Deadline. (e) If your Deposit Plan or Account closes prior to the Maturity Date, we will request the Deposit Taker to pay the Withdrawal Amount from the relevant Deposit Account. (f) We will pay the Withdrawal Amount to your personal representatives within five Business Days of the closure of your Deposit Plan or Account. These Terms and Conditions are binding on your personal representatives.