ADVICE SERVICE ADVICE SERVICE TARIFF OF CHARGES 1 ADVICE SERVICE TARIFF OF CHARGES.

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1 ADVICE SERVICE ADVICE SERVICE TARIFF OF CHARGES 1 ADVICE SERVICE TARIFF OF CHARGES.

2 2 ADVICE SERVICE TARIFF OF CHARGES We believe good financial advice is key to helping your money work harder for you. At the heart of our Advice Service is our team of qualified financial consultants who are here to take the hard work out of what can be a complex subject. Initially they ll talk to you about your financial position, your needs and aspirations before providing tailored advice, and solutions in plain English, to help you plan. We charge you for some of our services and, although the variety of charges can sometimes appear confusing, we think it s only right to see what you re paying for. The minimum investment amount for this service is a 15,000 lump sum investment or 300 when investing regularly. Introduction to charges This guide sets out the charges that apply to arranging investments when you ve received advice through one of our financial consultants. If you ve invested with us previously and we re receiving commission for these investments, we ll continue to receive commission for them. There may be occasions when we recommend you move your existing investments to the new charging structure but we won t do this without explaining the benefits of doing so and gaining your permission first. Important Information The value of investments can fall as well as rise and you may get back less than you invest. Although there is no fixed term, you should consider unit trusts, Open Ended Investment Companies (OEICs), and stocks and shares ISAs as medium to long-term investments of at least five years, and ideally not tie yourself to a fixed end date. Legal & General (Portfolio Management Services) Limited is responsible for the advice, as well as provision of unit trusts, OEICs and stocks and shares ISAs, the Investor Portfolio Service and the facilitation of dealing. Our financial consultants can only advise on Legal & General s products.

3 ADVICE SERVICE TARIFF OF CHARGES 3 RANGE OF CHARGES. ADVICE CHARGES These charges apply when you decide to proceed with our recommendations and buy products. If you choose not to invest, no charge will apply. INITIAL ADVISER CHARGE You ll be charged whenever you invest through your Legal & General financial consultant and this will be taken from your overall payment prior to investing. The way you ll be charged will depend on the way you invest. You can invest in two ways, regularly (usually monthly) or a one-off investment. We ll also charge you if we arrange a trust. Adviser Charge for regular investments Should you invest on a regular basis (usually monthly) you pay 3.5% of the value of regular investment contributions you re expected to make over 48 months. You pay this to us up front as a one-off payment by cheque, in return for your financial consultant giving you tailored financial advice and setting up products to meet your needs. For example, if you pay regular contributions of 400 each month, you d pay an Initial Adviser Charge of 672 (calculated by multiplying 400 by 48, ( 19,200 in total) and taking 3.5% of this). Adviser Charge for a one-off investment You pay 3.5% of the value of your investment to us in return for your financial consultant giving you tailored financial advice and setting up products to meet your needs. For example, if you were to invest 15,000 as a one-off investment, you d pay 525. Arranging a trust For arranging a trust as part of our investment recommendations, estate planning or inheritance tax mitigation, we will make a higher Initial Adviser Charge of 5% of the value of the investment. This is to cover the additional work required in providing this complex advice. For this advice, an Ongoing Adviser Charge may not apply. For example, if you were to invest 15,000 as a one-off investment, you d pay 750. ONGOING ADVISER CHARGE This charge is paid to us for providing you with a range of tools and ongoing financial consultant support to help your money continue to work hard for you. We call this our Ongoing Service. This is an optional service, where you pay 0.65% each year of the value of your portfolio that your financial consultant is advising you on, including any sums invested directly. The charge is calculated and paid to us on a monthly basis from your product so the amount you pay for the ongoing service can change upwards or downwards from month to month in line with the value of your investments. Over the longer term we would hope that the value of your investments increases and as a result the amount of ongoing service charge you pay will increase. For example, if you were to invest 15,000 and at the end of the first month your investment was still worth 15,000, you d pay 8.12 ( 15,000 x 0.65% 12) for that month for our Ongoing Service. You can stop the Ongoing Service at any time. If your financial consultant recommends a Select Portfolio Bond you will receive a personalised illustration that will provide you with all the charges that will apply to the bond. The rest of this document provides specific information on investments using the Investor Portfolio Service (IPS) Please see the IPS Guide to Facilitated Adviser Charges for more details on how adviser charges are taken from IPS investments and the Facilitated Adviser Charges Guide for Select Portfolio Bonds.

4 4 ADVICE SERVICE TARIFF OF CHARGES PLATFORM FEE We calculate and collect this fee monthly. It s based on the value of your investments and we ll collect it from your IPS Cash Account. The platform fee covers the costs to administer your portfolio and the costs of dealing with payments and transactions, for example, when you wish to move money between funds. The platform fee is as follows: PORTFOLIO VALUE BAND Up to and including 10,000 FEE EACH YEAR APPLICABLE TO BAND 0.70% 10,000 20, % 20,000 and over 0.25% For example, if you were to invest 30,000, the first 10,000 of your investment would incur a charge of 0.70%, the next 10,000 would be charged at 0.35% and the remaining 10,000 would be charged at 0.25%. In this example, you would then pay a total charge of ( a month), which is equivalent to 0.43% of your initial investment. FUND CHARGES ONGOING CHARGES FIGURE (OCF) The OCF indicates the fund charges you ll pay over a year for as long as you hold your investment. It relates to the costs of running the fund. The OCF consists of the fund s annual management charge and the extra expenses. The daily fund price reflects these deductions so you won t see a deduction from your investment. Please note: The fund manager can change the OCF, so we can t guarantee the figures on the next page are current. Please see the Key Investor Information Document (KIID) for the most recent figure. FUND REBATES The charge of some funds still includes an amount that you re also now paying as a separate platform fee, or may include a discount negotiated on the fund manager s charges. If you re invested in one of these funds, these amounts are paid to you as unit rebates and are shown in the table on the next page. Please note that unit rebates are treated as income by HM Revenue & Customs (HMRC) and are taxed as a result. Unit rebates into a unit trust/oeic will be taxed at the current income tax rate of 20%. If you re not liable to income tax, you can reclaim some or all of the tax deducted from HMRC. If you are a higher or additional rate taxpayer you may have more tax to pay. Unit rebates into an ISA are free from income tax. The tax treatment depends on the individual circumstances of the investor and may be subject to change in the future.

5 ADVICE SERVICE TARIFF OF CHARGES 5 The following funds are currently available for customers receiving advice. FUND ONGOING CHARGES FIGURE (OCF) REBATE BlackRock UK Special Situations Fund 0.91% 0.00% BNY Mellon Long Term Global Equity Fund 0.83% 0.10% Fidelity Strategic Bond Fund 0.68% 0.10% Henderson Preference and Bond Fund 0.72% 0.00% Investec Cautious Managed Fund 0.84% 0.15% Kames Ethical Equity Fund 0.81% 0.00% Kames High Yield Bond Fund 0.80% 0.15% Lazard Emerging Markets Fund 1.11% 0.25% Legal & General All Stocks Gilt Index Fund 0.18% 0.03% Legal & General All Stocks Index Linked Gilt Index Fund 0.18% 0.03% Legal & General Distribution Trust 0.67% 0.00% Legal & General Ethical Fund 0.31% 0.00% Legal & General Fixed Interest Trust 0.33% 0.00% Legal & General High Income Fund 0.41% 0.00% Legal & General International Index Fund 0.33% 0.05% Legal & General Managed Monthly Income Trust Fund 0.44% 0.00% Legal & General Mixed Investment 0 35% Fund 0.50% 0.00% Legal & General Mixed Investment 20 60% Fund 0.52% 0.00% Legal & General Mixed Investment 40 85% Fund 0.52% 0.00% Legal & General UK Property Feeder Fund 0.64% 0.00% Legal & General Sterling Corporate Bond Index Fund 0.19% 0.03% Legal & General Sterling Income Trust 0.42% 0.00% Legal & General UK Equity Income Trust 0.79% 0.00% Legal & General UK Index Fund 0.17% 0.03% M&G Global Dividend Fund 0.91% 0.05% Newton Global Higher Income Fund 1.05% 0.40% Newton Real Return Fund 1.11% 0.32% Old Mutual UK Alpha Fund 0.85% 0.08% Schroder UK Mid 250 Fund 0.91% 0.00% Standard Life Global Absolute Returns Strategies Fund 0.89% 0.00% Threadneedle Global Select Fund 0.89% 0.08%

6 6 ADVICE SERVICE TARIFF OF CHARGES ADDITIONAL CHARGES IF YOU ADD TO YOUR INVESTMENT. If you want to invest more money into your portfolio, please speak to your financial consultant. Usually you will have to pay an Initial Adviser Charge on any new money invested. If you have opted in to the Ongoing Service, any new money invested will be subject to the Ongoing Adviser Charge, as the charge is based on your total portfolio value. EFFECT OF CHARGES. We want to help you understand the charges we have outlined so far. The table below shows all of the charges you may pay. SUMMARY OF CHARGES USED IN THE SCENARIOS BELOW TYPE WHAT IT COVERS ASSUMED ANNUAL AMOUNT Fund Charge The fund manager s costs associated with running your chosen investment fund(s) 0.75% Platform Fee The costs in delivering and servicing your investment through the IPS platform Portfolio Value Band Up to and including Fee each year applicable to Band 0.70% 10,000 10,000 20, % 20,000 and over 0.25% Ongoing Adviser Charge The ongoing service from your financial consultant to help your investments work hard for you 0.65% Based on the charges in the table above, we have created the following scenarios. The scenarios below assume that any Initial Adviser Charge has already been paid. So in the scenario below, we assume an initial charge of 1,050 (3.50%) has already been paid from the 30,000 that has been invested in the product. SCENARIO 1: INVESTING A LUMP SUM FOR GROWTH 30,000 lump sum investment into Accumulation units (that is any income generated by the funds is reinvested) 30,000 LUMP SUM END OF YEAR EFFECT OF FUND CHARGES EFFECT OF PLATFORM FEE EFFECT OF ONGOING SERVICE CHARGE CUMULATIVE EFFECT OF CHARGES , , ,240 3, ,680 1,970 3,190 8,850 Assuming that the fund has grown by 6% each year over 10 years, the charges in effect reduce the net growth to 4.11% each year.

7 ADVICE SERVICE TARIFF OF CHARGES 7 SCENARIO 2: INVESTING REGULARLY FOR GROWTH 300 regular monthly premium paid in advance into Accumulation units (that is any income generated by the funds is reinvested) 300 REGULAR MONTHLY INVESTMENT END OF YEAR EFFECT OF FUND CHARGES EFFECT OF PLATFORM FEE EFFECT OF ONGOING SERVICE CHARGE CUMULATIVE EFFECT OF CHARGES , ,890 1,210 1,640 4,760 Assuming that the fund has grown by 6% each year over 10 years, the charges in effect reduce the net growth to 4.03% each year. ASSUMPTIONS A number of assumptions have been used in calculating these figures: Investment growth 6% each year We have assumed this growth rate as it s representative of the typical rates available in funds on our panel. The rate is not guaranteed, and the actual growth your investment will achieve will vary depending on the performance of the funds you choose. As the charges are based on a percentage of the value of your investment, where the growth rate achieved exceeds this, the actual amount you pay will be higher. If the growth rate is lower than this, the charges will be lower. Charges The charges used are to provide an indication of the level of charge you may pay in connection with your investment only. The amount you pay will vary depending on the funds you choose, the amount invested and whether you have chosen to receive the Ongoing Service. If you d like further information on the charges that will apply to your investment, please speak to your Legal & General financial consultant.

8 8 ADVICE SERVICE TARIFF OF CHARGES Legal & General (Portfolio Management Services) Limited Registered in England and Wales No Registered office: One Coleman Street, London EC2R 5AA We are authorised and regulated by the Financial Conduct Authority. Q /15 H