KEY FEATURES OF THE INSTITUTIONAL INVESTMENT BOND. Important information you need to read

Transcription

1 KEY FEATURES OF THE INSTITUTIONAL INVESTMENT BOND Important information you need to read

2 THE FINANCIAL CONDUCT AUTHORITY IS A FINANCIAL SERVICES REGULATOR. IT REQUIRES US, SCOTTISH WIDOWS, TO GIVE YOU THIS IMPORTANT INFORMATION TO HELP YOU TO DECIDE WHETHER OUR INSTITUTIONAL INVESTMENT BOND IS RIGHT FOR YOU. YOU SHOULD READ THIS DOCUMENT CAREFULLY SO THAT YOU UNDERSTAND WHAT YOU ARE BUYING, AND THEN KEEP IT SAFE FOR FUTURE REFERENCE. THESE KEY FEATURES SHOULD BE READ WITH THE ENCLOSED ILLUSTRATION. ITS AIMS RISKS To provide access, for registered pension scheme ( the scheme ) trustees, to a wide range of Scottish Widows unit-linked investment funds. To provide an opportunity for growth on your investment over the medium to longer term. To allow you, the trustees of the scheme to select an investment portfolio to best meet the objectives of the scheme. To allow you to make encashments at any time. YOUR COMMITMENT To make a minimum initial investment of 1,000,000. The value of your Bond can go down as well as up and could fall below the amount(s) paid in. What you ll get back isn t guaranteed. The illustration shows, in today s prices, the final fund values and benefits that might be payable. These would be lower than illustrated if, for example: investment performance is lower you take any encashments the charges are higher inflation is higher than we ve assumed tax rules change. Any encashments will reduce the value of your bond and could be greater than any capital growth achieved. Your Bond can invest in a range of investment funds that carry different types and levels of risk. A list of the funds available can be found in the Institutional Investment Bond funds guide. For details of the specific aims and risks that apply to each investment fund, please see our Pension Funds Investor s Guide. You should read these guides before making any investment decisions. In certain circumstances, there may be a delay if you ask to transfer the value of your Bond or switch between investment funds. If you change your mind within 30 days of receiving your cancellation notice and the value of your Bond has fallen, the amount returned may be less than was invested. Charges may apply if you cash in all or part of your Bond. 1

3 QUESTIONS & ANSWERS WHAT IS AN INSTITUTIONAL INVESTMENT BOND? It is a flexible unit-linked investment contract specifically for the trustees of registered pension schemes. You can make further investments into your Bond at any time, subject to our minimum amount at that time. The proceeds of your Bond can be used to provide benefits for any of the members of the scheme or for you to re-invest elsewhere for the scheme. The Bond has no fixed term. However, it should be viewed as a medium to long-term investment of at least 5 to 10 years. The Bond can provide access to the services offered by our Final Salary Team. These may include Actuarial, Administration and Documentation services. WHERE DOES THE BOND INVEST? We offer a wide range of unit-linked investment funds so that you can choose the one(s) which best meet the investment objectives of the scheme. Your investment is used to buy units in the funds you choose. We work out the value of your Bond based on the total number of units you have in each fund. You can invest in up to 10 funds at any one time. You can switch in and out of the funds to change the mix of investments, though there may be a delay in certain circumstances. Conditions and a charge for doing this may apply. Please contact us for more details. We may change the selection of funds that we make available and restrictions can apply. JARGON BUSTER Units Units are like shares of the fund. For unit-linked funds, the value of each unit depends on the value of the investments held by the fund, and the number of units in it. WHAT ARE THE CHARGES? Our Charges The following charges can apply to your Bond: We charge for managing and investing your Bond. We take our charges regularly out of the value of your Bond. Your illustration shows our current charges, and how they could affect what you might get back. We can increase most of the charges we make if: a tax rule or law change significantly increases our costs or significantly decreases our income from charges; there are exceptional circumstances which we could not reasonably have foreseen resulting in either our costs being significantly more, or our income from charges being significantly less, than we anticipated. We will give you three months notice if we increase our charges. If the charges exceed the rate of growth this could reduce the value of your Bond to below the amount originally invested. If you invest in fund(s) managed by other fund managers, the charges they make can change at any time and without notice. The services offered by our Final Salary Team are available by separate arrangement and may be charged for separately. 2

4 WHEN CAN THE BOND BE ENCASHED? The Bond can be fully encashed at any time. Partial encashments can also be taken at any time but this will reduce the value of your Bond. Up to 10% of the fund value at the start of each year may be cashed in without charges applying. Charges for cashing in may apply if you cash in more than this amount in a year. CAN I CHANGE MY MIND? You can change your mind within 30 days of receiving your cancellation notice. If you don t want the Bond we ll give you your money back less any fall in its value. You may not get back what you paid in. If you don t cancel, the Bond will continue. HOW WILL I KNOW HOW MY BOND IS DOING? We ll send you a statement each year. You should regularly review your Bond to check if it remains on track for your needs. You can check the unit prices of our unit-linked funds on our website, or get an up-to-date valuation of the Bond by contacting us. 3

5 HOW TO CONTACT US If you ve any questions, or any changes you want to make to your Bond, please contact us. You can phone us or write to us. Call us on during the following times: Website Office address Scottish Widows Limited 15 Dalkeith Road, Edinburgh EH16 5BU Monday to Friday 8am 6pm We ll communicate with you in English. We may record and monitor calls to help us to improve our service. 4

6 OTHER INFORMATION HOW TO COMPLAIN If the Trustees ever need to complain, they should contact us. If they re not satisfied with our response, they can complain to: The Financial Ombudsman Service Exchange Tower, London E14 9SR Tel Website Complaining to the Ombudsman won t affect your legal rights. TERMS AND CONDITIONS These Key Features give a summary of the Scottish Widows Institutional Investment Bond. Further details of the benefits, charges and conditions are given in product literature and Policy Provisions, which are available from us. We have the right to change some of the terms and conditions at any time. We ll write and explain if this affects your Bond. SOLVENCY AND FINANCIAL CONDITION REPORT (SFCR) Our SFCR provides information on the performance and management of our business, including its financial strength. It s produced each year and is available on our website at: financial_information/solvency-2-returns.html FINANCIAL SERVICES COMPENSATION SCHEME (FSCS) Your Bond with Scottish Widows is fully covered by the Financial Services Compensation Scheme. More information about compensation arrangements is available from the Financial Services Compensation Scheme who can be contacted on or or via their website at LAW For legal purposes the law of England & Wales, Scotland or Northern Ireland will normally apply according to the registered address of the scheme. This information represents Scottish Widows interpretation of the law and HM Revenue & Customs practices as at date of publication. Changes to tax rules and other laws may affect your contract terms. 5

7 Scottish Widows Limited. Registered in England and Wales No Registered office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number /18