Investment ISA. Tax free savings just for you

Transcription

1 Investment ISA Tax free savings just for you

2 Here for everyone Kingston Unity is a Friendly Society. We re totally different to banks, because we re owned by our members. We re run for the benefit of you, and your family, not for shareholder profit. We ve helped hundreds of thousands of members, their children and grandchildren, to make more of their money with tax-efficient savings and investments. We ve been looking after our members money and best interests since We re financial friends for life. You ll find this document helpful because it includes really useful information about our Investment ISA. Please read this along with the Key Information Document and Terms and Conditions before you apply for this investment account. 2

3 Investment ISA Want to save tax free in a low to medium risk investment? Our Investment ISA allows you to invest into our expertly-managed With Profits fund that invests in shares, property, bonds and cash. You choose how much Save from 25 per month or a lump sum of 500 or more Investment bonus Once added a bonus cannot be removed Really flexible Pay in regular payments or lump sums. Stop, start or change payments to suit. Must remain within the government ISA tax free limits Death benefit 101% of your ISA s value Easy transfer Transfer your existing ISA to us Tax free savings just for you Money back Guarantee On the 10 th anniversary of the Investment ISA, and each subsequent 5 th anniversary we guarantee you will be able to withdraw all money paid into the ISA as well as all bonuses added. This Investment ISA aims to meet the demands and needs of an individual who is not already using the total of their annual ISA allowance with another provider and wants to save tax free on a regular or ad-hoc basis. As Kingston Unity is not able to provide advice, the information provided is there for you to make an informed decision about this product. We are unable to determine if the Investment ISA is appropriate for you, so if you are unsure of its suitability, please speak to an Independent Financial advisor (IFA). You may be charged for this advice. 3

4 Your questions answered 1. Who can open an Investment ISA? Anyone aged 18 and a UK resident can apply to open an Investment ISA. This includes those performing duties as a Crown employee and whom is paid out of the public revenue of the United Kingdom or is married to such a person. 2. Is it easy to apply? To apply simply download an application pack from our website kingstonunity.co.uk or contact the office on and we can post one to you. 3. Can I transfer another ISA to this ISA? Yes, another ISA may be transferred into this one. You may only have one Cash ISA and one Stocks and Shares ISA which you are contributing to in any one year. This is a Stocks and Shares ISA. To transfer please, simply contact us for an application form at enquiries@kingstonunity.co.uk or call How much can I invest in an Investment ISA? The Government sets the maximum limit for investment into an ISA within a tax year. You ll find this on our website. This maximum limit can be split between a cash and stocks and shares ISA, or all paid into one. We accept regular payments of 25 or more per month and one-off payments from 500 to open the account and 50 thereafter, up to the Government s annual maximum limit. 5. Can I stop or change my payments? Yes. You re free to stop, start or change your payments at any time. 4

5 6. Can I change my mind? Certainly. In fact, you ve 30 days to change your mind, just complete and return your cancellation notice. 7. Can I make withdrawals from the Investment ISA? Yes, you can make partial withdrawals of 500 or more or close your account at any time. In adverse market conditions a Market Value Reduction (MVR) may apply to your ISA, which could reduce its value. We will let you know if a MVR is being applied. Please see our Guide to the With Profits Fund for more information. 8. Are there any bonuses or guarantees? Yes, both. We guarantee to pay out 100% of the initial investment, plus any bonuses, less any withdrawals already made on the 10 th anniversary of starting the ISA and each subsequent 5 th anniversary. Bonuses are declared at the end of each year and depend upon the performance of the with profits fund. This is called a reversionary bonus and once added it can t be removed. As a Friendly Society, we ensure all our members receive a fair share of any investment returns. Therefore we regularly check that you have the correct bonuses to achieve this and if appropriate we may add a Final (Terminal) Bonus to any withdrawals when made. Please see our Guide to the With Profits Fund for more information. 5

6 9. How will I know what the account is worth? You will receive an annual statement detailing any withdrawals and bonuses applied to your ISA. 10. Are there any charges? To cover the expenses of running the society, we currently charge 1.5% of the ISA value which is reviewed each year. The charges are taken out of the investment returns before we declare a bonus and not directly from your account. 11. What happens if I die? We ll pay out 101% of the value of the ISA in the tragic event of death. 12. Can I close or transfer my ISA? Yes, you can close this ISA at any time or you can transfer to another provider whenever you wish. Please contact your new provider if you would like to transfer. Depending on the investment returns at the time of transfer, a Market Value Reduction (MVR) may be applied to the account. Please see our Guide to the With Profits Fund for a full explanation. 6

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8 Other important information Tax liability Under current legislation any money received from this ISA will be free of tax and doesn t need to be declared on a tax return. Tax legislation may change in the future. If you re in any doubt, please take advice from a professional tax advisor you may be charged for this advice. Fees paid If you re opening our ISA through a Financial Adviser they ll let you know if there are any charges or fees payable to them. If you ve been introduced by an Introducer Appointed Representative (IAR), we may pay them a fee. Don t worry, this won t be deducted from your ISA. An IAR is not qualified to give you advice about which product to apply for. Law and legislation In legal disputes the law of England and Wales will apply. It s possible that legislation affecting this Investment ISA may change in the future. This may affect the benefits or conditions of the product. Anti-money laundering We may need to check your identity when you apply. This is so we comply with Anti Money Laundering regulations. Data Protection Kingston Unity collects your personal information when you apply for a product with us. We use this information to set up and manage the product you have applied for. Please see our Privacy Notice for more information explaining how we use your personal information. Find out more at enquiries@kingstonunity.co.uk kingstonunity.co.uk Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /004

9 Investment ISA Terms & Conditions The following Terms and Conditions explain how our Investment ISA will be managed and sets out both your rights and ours. Please make sure you read this document carefully as it contains information you need to know. 1. Eligibility / opening the Investment ISA a. Anyone aged 18 or over who is a UK resident for tax purposes. b. Who does not already have a Stocks & Shares ISA, which you are contributing to, elsewhere. If you do, then you can apply to transfer it to our Investment ISA. c. If your Investment ISA has or will become void because of any failure to meet the Regulations that we are aware of then we will inform you. If you believe you have broken any regulations (i.e by contributing to two ISAs of the same type in the same tax year), you must contact the HMRC Savings helpline on d. You can apply by returning a completed application form to us which can be download from kingstonunity.co.uk/isa. Alternatively, you can contact us on enquiries@kingstonunity.co.uk or and we can post one to you. e. The account cannot be assigned to anyone else and cannot be used as security for a loan. 4. Transferring to another provider a. You can transfer to another ISA provider at any time, you will need to contact the new provider to arrange this for you. b. Once we receive a valid instruction from your new provider we will carry out this transfer within 30 days. Depending on the performance of investment returns then a MVR may be applied if you transfer to another provider outside of the MVR free dates (see section 9). 5. Paying in a. We accept regular payments of 25 or more per month and one-off payments from 500 to open the account and 50 thereafter, up to the annual limit set by the Government. Current limits are available on our website. b. You can stop, start or change payments at any time. You must remain within the Government ISA tax free limits. c. We accept payments by Direct Debit, Bank Transfer and by cheque. 2. Your right to cancel a. You have 30 days from the date you receive the cancellation notice to cancel. b. A full refund of any payments made into the account will be made. 3. Transferring to us a. You can transfer a Cash ISA or Stocks & Shares ISA held in your name. Simply complete the transfer section of the application form. 6. Withdrawals or closures* a. You can make partial withdrawals of 500 or more. In adverse conditions we may apply a MVR if you withdraw more than 10% of the value of the Investment ISA, whilst an MVR is in force, unless you withdraw on a MVR free date. We will let you know if a MVR is going to be applied (see section 9). b. You can close your account at any time. Depending on the performance of investment returns then a MVR may be applied if you close the account outside of the MVR free dates (see section 9). 7. Death a. If you die the Society will pay the greater of 101% of the total amount paid to date or the value of the account at the time of receiving notification of your death. Continued overleaf... Investment ISA Terms & Conditions 1

10 Investment ISA Terms & Conditions 8. Market Value Reduction (MVR)* a. An MVR may be applied if you withdraw more than 10% of the value of the account, close the account in full or transfer to another provider outside of the Guarantee period (see section 9). 9. Guarantees / MVR free dates* a. We guarantee to pay out 100% of the amount paid in plus any bonuses, less any withdrawals already made on the 10 th anniversary of the start of your Investment ISA and every subsequent 5 th anniversary after that. These are classed as MVR free dates, at all other dates an MVR may be applied, but will depend upon the circumstances at the time of withdrawing, transferring or closing the ISA. 11. Charges / Managing the account a. We aim to charge a fair share of our expenses to each account holder and we can decrease or increase charges made on the account. At present we expect to charge 1.5% of the funds under management. b. You will receive an annual statement detailing any withdrawals made and bonuses applied to your ISA. 12. Voting rights and attending the AGM a. As a member of the Society you have the right to attend and vote at the Society s AGM. To do this, you must first apply to become a delegate. 10. Bonuses* a. To enable the Actuary to identify what portion of the With Profits fund is allocated to the account, for each pound paid in, the account will be allocated one unit. This helps the Society to allocate bonuses and ensure that you receive your fair share of the value of the With Profits fund when you withdraw or transfer your investment. * Please see our Guide to the With Profits Fund for more information which can be found at kingstonunity.co.uk/ withprofits b. A Reversionary Bonus is added annually and is calculated by the Actuary for the Society and agreed by the Board of Management. This reflects the smoothed performance of the With Profits fund after allowing for the level of guarantees within the fund. It will also reflect an allowance for expenses as a percentage of funds under management. Once the net rate is announced and has been added to the account it can t be removed. The bonus will be added as a percentage to the value of the initial investment plus any bonuses added to the account less any withdrawals made. c. An interim Reversionary Bonus is announced at the same time and is applied to accounts that are closed before the next Reversionary Bonus is announced. This rate is not guaranteed and can be changed or reversed at any time by the Board in its absolute discretion. d. The Board may declare, from time to time, a Final Bonus which would increase the value of the account payable on death, on transfer or on closure. Find out more at enquiries@kingstonunity.co.uk kingstonunity.co.uk/isa Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /006 Investment ISA Terms & Conditions 2

11 Key Information Document Investment ISA Single payment Purpose This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. Product This Investment ISA is manufactured by Kingston Unity Friendly Society Limited. For more information visit kingstonunity.co.uk or call The Financial Conduct Authority (FCA) is the competent authority of Kingston Unity. This Key Information Document (KID) was produced on 12 December What is this product Type Objectives With Profits Investment ISA To enable you to save or invest tax free, in a range of assets, to build up a lump sum with low to medium risk, with the aim of outperforming deposit based accounts. The With Profit fund in which your contributions are invested in invests in a range of assets such as equities, property, fixed interest and cash. The return on your investments is dependent on the performance of the With Profit fund as well as any expenses incurred by the Society and other factors such as the number of withdrawals and closures. Your investment return is added to your account in the form of an annual bonus which is determined in conjunction with the Actuary. Intended retail investor Insurance benefits Eligible individuals with an investment horizon of at least 10 years, with a low to medium appetite for risk. If you die the Society will pay 101% of the value of the ISA at the date of death to your estate. The value of the benefits can be found below in the section What are the risks and what could I get in return. To open the account, you can either invest a minimum initial lump sum of 500 or make regular monthly payments by Direct Debit from 25 per month. You can then make additional contributions to your ISA up to the maximum limit set by the Government. You ll find the current limits on our website. Further information Anyone aged 18 or over can save in an Investment ISA. You must be a UK resident for tax purposes. This product does not have a maturity date. Kingston Unity is not entitled to unilaterally terminate this product. What are the risks and what could I get in return? Risk Indicator Lower risk Higher risk The risk indicator assumes you keep the product for 10 years. The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. We have classified this product as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a medium-low level, depending on the performance of investment returns then a Market Value Reduction (MVR) may be applied if you withdraw early and it is possible that you could receive back less than you invested. We guarantee that you will get back all your invested capital plus any bonuses allocated to date, if you choose to cash in the ISA on the 10 th anniversary and every subsequent 5 th anniversary after that. These are classed as MVR free dates, at all other dates an MVR may be applied, but will depend upon the circumstances at the time of cashing in the ISA. continued overleaf... Investment ISA (Single payment) Key Information Document 1

12 Performance Scenarios The table below shows the money you could get back over the next 10 years, under different scenarios, assuming that you invest 10,000. The scenarios shown illustrate how your investment could perform. You can compare them with the scenarios of other products. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies and are not an exact indicator. What you get back will vary depending on how the market performs and how long you keep the product. The stress scenario shows what you might get back in extreme market circumstances, and it does not take into account the situation where we are not able to pay you. The figures shown include all the costs of the product. The figures do not take into account your personal tax situation, which may also affect how much you get back. Investment: 10,000 Scenarios Stress scenario Unfavourable scenario Moderate scenario Favourable scenario 1 Year 5 years 10 Years Recommended holding period What you might get back after costs ( ) 7,000 6,677 10,200 Average return each year (%) % -7.76% 0.20% What you might get back after costs ( ) 9,500 11,445 14,725 Average return each year (%) -5.00% 2.74% 3.95% What you might get back after costs ( ) 10,350 13,346 18,251 Average return each year (%) 3.50% 5.94% 6.20% What you might get back after costs ( ) 10,350 15,531 22,523 Average return each year (%) 3.50% 9.20% 8.46% What happens if Kingston Unity Friendly Society Limited is unable to pay out? The Society is covered by the Financial Services Compensation Scheme (FSCS). If we cannot meet our obligations, you may be entitled to compensation from the scheme. Circumstances vary, but most types of investment business are covered up to 50,000. Further information about compensation arrangements is available from the FSCS website or by calling What are the costs? The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs take into account one-off, ongoing and incidental costs. The amounts shown in the table below are the cumulative costs of the product itself, for three different holding periods. They include potential early exit penalties. The figures assume you invest 10,000. The figures are estimates and may change in the future. Investment: 10,000 Scenarios If you cash in after 1 Year If you cash in after 5 Years If you cash in after 10 Years Total costs ( ) 0 1,093 3,107 Impact on return (RIY) per year (%) 0.00% 1.68% 1.68% continued overleaf... Investment ISA (Single payment) Key Information Document 2

13 Composition of costs The table below shows: the impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period; the meaning of the different cost categories. This table shows the impact on return per year One off costs Entry costs Nil This product does not charge any entrant costs. Exit costs Nil This product does not charge any exit costs. Portfolio transaction costs 0.05% The impact of the costs of us buying and selling underlying investments for the product. Ongoing costs Insurance costs Nil This product does not charge any insurance costs. Other ongoing costs 1.63% The impact of the costs that we take each year for managing your investments. Incidental costs Performance fees Nil This product does not charge any performance fees. Carried interests Nil This product does not charge any carried interests. How long should I hold it and can I take money out early? Recommended holding period: 10 years The recommended holding period has been selected to enable investors to benefit from long term growth whilst avoiding short term volatility. Partial withdrawals of 500 or more or full encashment can be made at any time. Depending on the investment returns at the time then a Market Value Reduction (MVR) maybe applied. We guarantee not to apply an MVR if you choose to cash in or make withdrawals on the 10 th anniversary of starting the ISA and every subsequent 5 th anniversary after that. How can I complain? To make a complaint about our products or our conduct, contact us with your full name and address, your account number and details of your complaint. More information can be found at: kingstonunity.co.uk You can submit your complaint via post to Complaints Department, Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ, via to enquiries@kingstonunity.co.uk or by phone Other relevant information Additional information about the product and policy conditions can be found in our Product Guide and Terms & Conditions and are available on our website. Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /002 Investment ISA (Single payment) Key Information Document 3

14 Key Information Document Investment ISA Regular payment Purpose This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. Product This Investment ISA is manufactured by Kingston Unity Friendly Society Limited. For more information visit kingstonunity.co.uk or call The Financial Conduct Authority (FCA) is the competent authority of Kingston Unity. This Key Information Document (KID) was produced on 12 December What is this product Type Objectives With Profits Investment ISA To enable you to save or invest tax free, in a range of assets, to build up a lump sum with low to medium risk, with the aim of outperforming deposit based accounts. The With Profit fund in which your contributions are invested in invests in a range of assets such as equities, property, fixed interest and cash. The return on your investments is dependent on the performance of the With Profit fund as well as any expenses incurred by the Society and other factors such as the number of withdrawals and closures. Your investment return is added to your account in the form of an annual bonus which is determined in conjunction with the Actuary. Intended retail investor Insurance benefits Eligible individuals with an investment horizon of at least 10 years, with a low to medium appetite for risk. If you die the Society will pay 101% of the value of the ISA at the date of death to your estate. The value of the benefits can be found below in the section What are the risks and what could I get in return. To open the account, you can either invest a minimum initial lump sum of 500 or make regular monthly payments by Direct Debit from 25 per month. You can then make additional contributions to your ISA up to the maximum limit set by the Government. You ll find the current limits on our website. Further information Anyone aged 18 or over can save in an Investment ISA. You must be a UK resident for tax purposes. This product does not have a maturity date. Kingston Unity is not entitled to unilaterally terminate this product. What are the risks and what could I get in return? Risk Indicator Lower risk Higher risk The risk indicator assumes you keep the product for 10 years. The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. We have classified this product as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a medium-low level, and poor market conditions could impact the capacity of Kingston Unity Friendly Society Limited to pay you. You are guaranteed to be provided your sum invested plus bonuses to date on the 10 th anniversary of your account and every subsequent 5 th anniversary after that. These are classed as MVR free dates, at all other dates an MVR may be applied, but will depend upon the circumstances at the time of cashing in the ISA. continued overleaf... Investment ISA (Regular payment) Key Information Document 1

15 Performance Scenarios The table below shows the money you could get back over the next 10 years, under different scenarios, assuming that you invest 1,000 each year. The scenarios shown illustrate how your investment could perform. You can compare them with the scenarios of other products. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies and are not an exact indicator. What you get back will vary depending on how the market performs and how long you keep the product. The stress scenario shows what you might get back in extreme market circumstances, and it does not take into account the situation where we are not able to pay you. The figures shown include all the costs of the product. Investment: 1,000 (each year) Scenarios 1 Year 5 years 10 Years Recommended holding period Stress scenario Unfavourable scenario Moderate scenario Favourable scenario What you might get back after costs ( ) 950 4,500 10,102 Average return each year (%) -5.00% -3.49% 0.18% What you might get back after costs ( ) 950 5,325 12,179 Average return each year (%) -5.00% 2.11% 3.55% What you might get back after costs ( ) 1,035 5,923 14,015 Average return each year (%) 3.50% 5.70% 6.06% What you might get back after costs ( ) 1,035 6,569 16,119 Average return each year (%) 3.50% 9.24% 8.53% Accumulated invested amount 1, , , What happens if Kingston Unity Friendly Society Limited is unable to pay out? The Society is covered by the Financial Services Compensation Scheme (FSCS). If we cannot meet our obligations, you may be entitled to compensation from the scheme. Circumstances vary, but most types of investment business are covered up to 50,000. Further information about compensation arrangements is available from the FSCS website or by calling What are the costs? The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs take into account one-off, ongoing and incidental costs. The amounts shown here are the cumulative costs of the product itself, for three different holding periods. The figures assume you invest 1,000 each year. The figures are estimates and may change in the future. Investment: 1,000 (each year) Scenarios If you cash in after 1 Year If you cash in after 5 Years If you cash in after 10 Years Total costs ( ) ,391 Impact on return (RIY) per year (%) 0.00% 1.63% 1.67% continued overleaf... Investment ISA (Regular payment) Key Information Document 2

16 Composition of costs The table below shows: the impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period; the meaning of the different cost categories. This table shows the impact on return per year One off costs Entry costs Nil This product does not charge any entrant costs. Exit costs Nil This product does not charge any exit costs. Portfolio transaction costs 0.05% The impact of the costs of us buying and selling underlying investments for the product. Ongoing costs Insurance costs Nil This product does not charge any insurance costs. Other ongoing costs 1.62% The impact of the costs that we take each year for managing your investments. Incidental costs Performance fees Nil This product does not charge any performance fees. Carried interests Nil This product does not charge any carried interests. How long should I hold it and can I take money out early? Recommended holding period: 10 years The recommended holding period has been selected to enable investors to benefit from long term growth whilst avoiding short term volatility. Partial withdrawals of 500 or more or full encashment can be made at any time. Depending on the investment returns at the time then a Market Value Reduction (MVR) may be applied. We guarantee not to apply an MVR if you choose to cash in or make withdrawals on the 10th anniversary of starting the ISA and every subsequent 5 th anniversary after that. How can I complain? To make a complaint about our products or our conduct, contact us with your full name and address, your account number and details of your complaint. More information can be found at: kingstonunity.co.uk You can submit your complaint via post to Complaints Department, Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ, via to enquiries@kingstonunity.co.uk or by phone Other relevant information Additional information about the product and policy conditions can be found in our Product Guide and Terms & Conditions and are available on our website. Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /003 Investment ISA (Regular payment) Key Information Document 3

17 Investment ISA Application Form For new accounts and transfers in Kingston Unity is a Friendly Society. We re totally different to banks, because we re owned by our members. We re run for the benefit of you, and your family, not for shareholder profit. We ve helped hundreds of thousands of members, their children and grandchildren, to make more of their money with taxefficient savings and investments. We ve been looking after our members money and best interests since We re financial friends for life. Our promise to you We will treat you as a retail customer which means that you will receive the highest level of customer protection available under UK financial services rules and regulations. You will be treated fairly in all of your dealings with Kingston Unity including: The product and associated services will be clearly described, so that you can decide whether it meets your needs Your obligation To complete the application to the best of your knowledge and inform Kingston Unity in writing immediately of any changes in your circumstances To read and understand the Product Guide, Key Information Document and Terms & Conditions of this product before making an application To read all documentation that we send to you. Being provided with clear and accurate information, during and after the point of sale Our dealing effectively with your queries and complaints. See Key Information Document for our complaints procedure. Application checklist Page 2 Page 3 Section 1 Complete this section with your name and contact details. You will also need your National Insurance number, which can be found on a payslip, P45/P60 form a pension order book or tax return. Section 2a Choose if you are opening a new Investment ISA or if you are transferring an existing ISA to us. Section 2b If you are transferring an existing ISA complete this section. We will use this information to contact your existing ISA provider to arrange the transfer to us. Please sign and date to confirm you wish to transfer your existing ISA to Kingston Unity. Page 4 Section 3 & 4 If you would like to make additional contributions into this Investment ISA complete this section. For new accounts we will need to take a payment to open the account. This can either be a regular Direct Debit from 25 per month and/or a lump sum payment by cheque or bank transfer. The initial minimum cheque amount is 500. Section 5 This section describes how and in what circumstances we will use the personal information you give to us. It also gives you the opportunity to tell us whether or not you would like to receive newsletters and information about our other products and services, and to indicate your communication preferences if so. Section 6 Please read the declaration in full and once you have completed the application form, sign and date it in the space provided. Section 7 If someone has recommended you or if you have a promotional code then you can add it here and let us know how you heard about us. What to do next If you have read all the information and are ready to apply, simply complete this form and return to: Freepost RSJC-BBGE-KSAX, Kingston Unity, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ If you have any questions whilst completing this form you can contact us on: enquiries@kingstonunity.co.uk kingstonunity.co.uk/isa Investment ISA Application Form 1

18 Investment ISA Application Form Please complete this form in BLOCK CAPITALS using black ink. To open the account please complete the form below, and read the checklist on the previous page. If you would like any help completing your application, you can contact us on I apply to open a Stocks & Shares ISA: Title First name Last name Current address Post code Previous address* Previous post code How long did you live at this address? From dd/mm/yy To dd/mm/yy Gender Male Female Date of birth dd/mm/yy Telephone National Insurance Number *Required if you have lived at your current address less than 3 years 2. Your ISA Application 2a. I would like to apply to 3. Your ISA Application transfer an existing ISA from another provider (Complete section 2b) or open a new ISA (Continue to section 3) You can find section 3 on the next page. 2b. Transferring an existing ISA from another provider Existing ISA provider name Existing ISA account number Existing ISA provider address Post code Type of ISA Cash ISA Please continue to question below. Stocks & shares ISA Please continue to question below. Do you want to make a full or partial transfer? Full Partial If partial how much? Does this include current tax year? Yes No If you are transferring the current tax year, you must transfer the whole amount. Are you transferring into an existing or new Kingston Unity ISA? New Existing - add your existing KU ISA account number I wish to transfer the ISA that I hold with the above ISA Manager and I instruct my existing ISA Manager to transfer as indicated to Kingston Unity Friendly Society. Sign Here Date dd/mm/yy If you would like to start making payments continue to section 3. Investment ISA Application Form 2

19 Investment ISA Application Form 3. Making additional payments For new applications we will need to take a payment to open the account. You can do this by monthly by Direct Debit and/or lump sum cheque or bank transfer payments and are subject to the overall maximum allowed by the Government. Current limits can be found on our website kingstonunity.co.uk/isa. 3a. Monthly Direct Debit Choose the amount you would like to invest each month Other *minimum 25 Monthly collection date 1st 16th Choose one Please complete section 4 with your bank details. 3b. Lump sum cheque payment Choose the initial amount you would like to pay by cheque* *minimum initial lump sum cheque amount is 500 Please make your cheque payable to Kingston Unity your full name 3c. Bank transfer Choose the initial amount you would like to pay by bank transfer* *minimum initial lump sum bank transfer amount is 500 Account name: Kingston Unity Sort Code: Account: Please use your name as a reference. 4. Instruction to your bank or building society to pay by Direct Debit Instruction to your Bank or Building Society to pay by Direct Debit Please fill in the whole form using a ball point pen and send it to: Applications, Kingston Unity Friendly Society Limited 9 Navigation Court, Calder Park Wakefield WF2 7BJ Name and full postal address of your Bank or Building Society To: The Manager Bank/building society Service user number Reference Address Name(s) of Account Holder(s) Postcode Instruction to your Bank or Building Society Please pay Kingston Unity Friendly Society Limited Direct Debits from the account detailed in this Instruction subject to the safeguards assured by the Direct Debit Guarantee. I understand that this Instruction may remain with Kingston Unity Friendly Society Limited and, if so, details will be passed electronically to my Bank/Building Society. Signature(s) Bank/Building Society account number Branch Sort Code Date Banks and Building Societies may not accept Direct Debit Instructions for some types of account. This guarantee should be detached and retained by the payer. The Direct Debit Guarantee This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits If there are any changes to the amount, date or frequency of your Direct Debit Kingston Unity Friendly Society Limited will notify you 10 working days in advance of your account being debited or as otherwise agreed. If you request Kingston Unity Friendly Society Limited to collect a payment, confirmation of the amount and date will be given to you at the time of the request If an error is made in the payment of your Direct Debit, by Kingston Unity Friendly Society Limited or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society If you receive a refund you are not entitled to, you must pay it back when Kingston Unity Friendly Society Limited asks you to You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify us.

20 Investment ISA Application Form 5. How your information will be used We will use your personal information to administer your account, including collecting payments, managing claims and withdrawals and providing regular statements. We will also use your personal information to confirm that you are eligible for the relevant product and to verify your identity. We will only use that information for this specific purpose. If you register an interest in an event, promotion or product for yourself we will use the personal information you give us to get in touch with you about it according to your indicated communication preferences. We may share the personal information you give us with our service providers to conduct our business efficiently and effectively. Information about you in relation to our processing of your personal data are set out in our Privacy Notice. You can also find out more information about how, what, when and why we process such personal information in this notice. We take your privacy very seriously and we think you should too so please take a moment to read this notice in full. 5a. Keeping you informed Kingston Unity would like to keep you informed of other products and services we offer which we feel may be of interest to you. We will never sell or licence your personal information to a third party. You can easily opt out of receiving such information at any time by contacting us. Would you like to receive a member newsletter? We currently send a member newsletter by twice a year. It includes Society news, financial and lifestyle articles and information about community events. If you would like to receive this tick the appropriate boxes below: Post (I don t have an address) Would you like to receive information and offers about our products & services? If you would like to hear about latest offers and information about our products and services please tick the appropriate boxes: Post Phone Text Message 6. Declaration - please ensure you sign and date this section 6a. I declare that: I am 18 years of age or over I am a resident in the UK, a UK Crown servant, a dependant of a UK Crown servant or married to/in a civil partnership with a UK Crown servant All subscriptions made, and to be made belong to me I have not subscribed and will not subscribe to another stocks & shares ISA in the same tax year that I subscribe to this stocks & shares ISA. (These can be disregarded where the stocks & shares ISA is being transferred to us) I have not subscribed and will not subscribe more than the overall subscription limit in total to a cash ISA and a stocks & shares ISA in the same tax year. 6b. I authorise Kingston Unity Friendly Society Limited: To hold my subscriptions, ISA investments, interest, dividends and any other rights or proceeds in respect of those investments and cash, and To make on my behalf any claims to relief from tax in respect of ISA investments. 6c. I agree to inform Kingston Unity in writing immediately of any changes in my details. 6d. I have read and understand the Product Guide, Key Information Document and Terms & Conditions of the Investment ISA: I declare that this application has been completed to the best of my knowledge and belief. Sign Here Date dd/mm/yy 7. Further information Promo code Q4CB100 How did you hear about us? Find out more at enquiries@kingstonunity.co.uk kingstonunity.co.uk/isa Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /002 Investment ISA Application Form 4

21 Investment ISA Demands & Needs We hope that you have found all of the information you need in this information pack, the following questions will help you to understand whether our Investment ISA meets your needs and will enable you to make an informed decision about the suitability of this product. Please answer the following questions and return your answers to us with your application. Name:... Date of Birth: Are you looking to save for the medium to long term (at least five years)? Yes / No 2. Do you want to build up a lump sum with low to medium risk, with the aim of outperforming deposit based accounts? Yes / No 3. Are you currently contributing into another stocks and shares ISA? Yes / No 4. Are you aware that a Market Value Reduction (MVR) may apply to withdrawals taken at time other than the guaranteed dates of the 10th or subsequent 5th anniversaries? Yes / No If you answer no to questions 1, 2 or 4, this product may not meet your needs. We are not able to provide you with financial advice. So, if you are in any doubt whether this Investment ISA meets your savings needs, you can seek advice from a Financial Adviser. You may be charged for this advice. Thank you for your interest in Kingston Unity Friendly Society. If you have any questions about this or any other of our products then please contact us using one of the methods below. Find out more at: enquiries@kingstonunity.co.uk Kingstonunity.co.uk Kingston Unity is a trading name of Kingston Unity Friendly Society Limited, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. The Society is registered and incorporated under the Friendly Societies Act 1992, registered number 775F and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number /010 Investment ISA Demands & Needs

22 A guide to how we manage our With Profits fund A consumer friendly version of the Principles and Practices of Financial Management (PPFM) The PPFM sets out how the Society manages it s With Profits fund and can be found on our website at kingstonunity.co.uk/withprofits. It covers two areas; the principles which are high level statements regarding the long term management of the fund, and the practices which are statements about how we implement the principles. Over time we may amend the principles but if we do this we will write to members to advise them of the changes. If we amend the practices we will write to members at the earliest opportunity to inform them. This consumer friendly guide aims to provide a simplified version of the main items contained in the PPFM. What are our guiding principles We manage our With Profits fund in a lawful, What is the With Profits fund This is an investment fund where your money is combined with that of other customers and then invested in a range of different assets (see section: How is the With Profits Fund invested). sound and prudent manner. We aim to treat all our customers fairly. We will operate in a manner to enable us to pay all guaranteed benefits when they become due. The objective is to ensure that on death or maturity you will receive the guaranteed benefit under the plan along with any annual bonus that has been added. Reversionary Bonus is not guaranteed to be paid and may vary, including the possibility of none being paid in a particular year or years, depending upon the investment performance of the fund, our expenses and other factors such as the number of withdrawals and closures. Some of our plans may also have a Terminal Bonus added but again this depends on the funds performance. Reversionary Bonus (Annual Bonus) The rate of bonus is set by the Society s Board after consultation with the With Profits Actuary, usually once every year. It is set by taking into account what the fund can afford both now and in the future to make sure that we can meet all the guaranteed amounts when they need to be paid. Once a Reversionary Bonus has been added it cannot be taken away providing the plan runs to maturity. Interim Bonus This type of bonus may be added if your plan matures during a period for which an Reversionary Bonus has not been declared. It is also the type of bonus that is added to your plan on death, (except conventional adult and Child Tax Exempt Savings Plans) and on surrender of ISA s and Bonds. Terminal Bonus Any Terminal Bonus is again agreed by the Board following consultation with the With Profits Actuary. This type of bonus is designed to ensure that the amount that you get back fairly represents the performance of the fund during the period of your investment. What is an asset share An asset share is calculated by taking into account the premiums you have paid, the investment performance of the fund whilst you have been investing minus the charges that we make to cover expenses and the cost of death or sickness benefits (where applicable). The investment returns credited reflect the level of guarantees on an individual plan. If the guaranteed benefits on a plan are high we have to adopt a safer investment approach in order to meet the guarantee (for example by investing in deposits or fixed interest assets). However where guarantees are low it allows us to invest in assets that may have a higher level of risk attached but over time could be expected to outperform the safer assets to provide a better return. On average we aim to pay out the full asset share to plan holders but we also use smoothing (see section on smoothing) to make sure that payouts, wherever possible, do not alter significantly from year to year. The Society s Board sets the target range for payouts and these are detailed in the PPFM. What is smoothing Smoothing helps to protect plan holders from short term fluctuations in the value of assets within the fund but will not protect from long term and sustained falls in value. We do this by retaining some of the surplus during a good year and A guide to how we manage our With Profits fund 1

23 A guide to how we manage our With Profits fund distributing a similar amount during a poorer year. It can be used to: Reduce the variation in maturity values between policies maturing at the same time with different contribution levels and type. Reduce the variation in maturity values at different maturity dates. Reduce the differences in payouts over time. What are charges Charges are there to cover the expense of selling and setting up the plan, investment and ongoing administration. We assess what these are likely to be over the period of the plan but they can vary. If actual expenses are higher than those shown in the illustration any excess will be charged against the asset share and therefore any future bonus credited. What happens if you end your plan before it matures If you want to stop paying the premiums on your plan (another name for this would be surrender) we have to calculate how much to pay you to be fair both to you and the other members remaining in the fund. We do this by using an asset share approach with a target range of 100% though this may vary slightly. Unlike on maturity there is no guarantee that you will receive a certain amount and particularly during the early years you may not get back as much as you have paid in. What happens if you die before the end of the plan term You will receive the Guaranteed Lump Sum or fund value depending on the type of plan along with all regular bonuses that have been added up to the date of death. For conventional Tax Exempt Savings Plans (both adult and child) you will receive a return of premiums paid to date of death, plus interest at 3% per annum. What is a Market Value Reduction (MVR) At certain times we may apply an MVR to reduce the surrender value of With Profits Investment Bonds and Investment ISA. We do this to bring the overall payout closer to the asset share when the underlying value of the assets in our fund is lower to ensure that: The surrender value is not unfairly higher than the market value of the assets in the fund. To protect the remaining members by making sure that a fair share remains. We will advise you if we are applying an MVR when you ask for a surrender value but this can change at any time if there is a sudden drop in the value of assets in the fund. Our With Profits Investment Bond has guaranteed MVR free date at every tenth anniversary and our Investment ISA MVR free dates is on the tenth anniversary or each subsequent five years. In addition we do not apply an MVR on death. How is the With Profits fund invested The With Profits fund is invested in a range of different assets such as shares, property, fixed interest type investments (for example Government and corporate bonds) and cash. We vary the proportions held in each particular asset class depending upon: The level of guarantees on the fund. The current and future financial position to ensure that we meet the reasonable expectations of our members. We aim to maximise the investment return whilst providing a safe route to meeting commitments. We currently operate the fund within an investment matrix agreed by the Actuary and review the percentage of assets held in a particular class formally each year and more frequently when there is volatility in the market. You can find out the split of where the assets are held at a specific time by contacting head office. This method may change in the future to another method deemed appropriate by the Society s governing body, subject to actuarial approval. Do we have more assets than the total asset shares We always hold more assets than we need to pay plan holders to meet the benefits promised to them. These extra assets are sometimes referred to as the estate and this provides the Society with working capital and extra security to cover unforeseen risks. They may also be used to A guide to how we manage our With Profits fund 2