Key Features of the SIPP

Transcription

1 Key Features of the SIPP Copyright Notice This document is the property of Investment Funds Direct Limited and cannot be copied, modified, or stored on a computer system without the company s consent. Investor Direct is a service provided by Investment Funds Direct Limited, part of the Royal London Group. Authorised and regulated by the Financial Conduct Authority No Registered in England and Wales number Registered Office: Trimbridge House, Trim Street, Bath, BA1 1HB. VAT number Telephone Telephone calls may be recorded for training and security purposes. 1

2 The Financial Conduct Authority ( FCA ) is the independent financial services regulator. It requires us, Investment Funds Direct Limited ( IFDL ), to give you this important information to help you decide whether our SIPP is right for you. You should read this document, together with the Terms and Conditions and Charges Schedule, carefully so that you understand what you are buying, and then keep it safe for future reference. These documents and our other literature are available in the Key Information section of the Investor Direct Service. This is a non-advised and execution only service where you make your own decisions on the investments you choose. Investment Funds Direct Limited does not assess the suitability of this service for your individual circumstances and you are not protected by the Financial Conduct Authority rules on assessing suitability. We do not provide or offer financial, legal or tax advice. You should seek your own financial, legal or tax advice from a financial adviser or another suitably qualified professional. Its aims» To provide you with a means to save for your.» To allow you to select and purchase a wide range of investments.» To allow you to view, value and place orders for these investments via the Investor Direct Service.» To offer flexibility on the timing of when you buy a lifetime annuity.» To allow for the provision of benefits for a spouse, civil partner or dependants in the event of your death.» To offer the tax incentive benefits granted by HM Revenue & Customs (HMRC) to registered schemes. Your commitment» The minimum amount to open a SIPP is a lump sum of 1,000 or regular contributions of, or equivalent to, 100 monthly for the first year. Subsequent contributions must be a minimum of 100.» You must notify us immediately of any changes in your personal circumstances that may affect your SIPP membership, including your eligibility to continue to receive tax relief on contributions.» You are required to maintain a minimum cash balance to meet charges. The minimum cash balance required is 2% of all assets held within the SIPP subject to a minimum of 100 per account and a maximum requirement of 2000.» You agree to read all the Key Investor Information Documents (KIIDs) provided by the fund manager in respect of any funds you buy, before you commit to the investment.» You must keep your log-in and other security details private and not share them with others. We will take all of the instructions placed using your security details in good faith that they were placed by you.» In accordance with HMRC requirements you must use your SIPP to provide and/or death benefits only. Risks» Different investments carry different levels of risk. You must make your own investment decisions or seek your own financial advice on the suitability of an investment.» The value of your investments can fall as well as rise and you may not get back what you originally invested or transferred into your SIPP.» Past performance of any investment is not a guide to future performance.» The performance of your SIPP will be reduced by the effect of charges including our charges, fund manager charges, Distributor charges and any Discretionary Fund Manager charges.» Income generating funds sometimes deduct expenses from capital in order to improve income. This means that capital growth may reduce accordingly.» Certain investments for example emerging markets, high technology sector and small companies are generally more volatile than UK and large company investments.» Investments in foreign assets are subject to currency risk, i.e. as well as the risk of the underlying asset there is also a risk of a loss from exchange rate variations against the pound sterling.» Annuity rates can change substantially over short periods of time, both up and down. If rates are low when you choose to buy an annuity you will receive less income.» You could reduce your SIPP benefits if you reduce or cease contributions to your SIPP, or if you elect to take benefits earlier than originally planned.» HMRC rules require that any lump sum death benefit is paid within two years of the date we are notified of the death, otherwise a penalty may be applied to the death benefit. This is a particular risk if you hold investments that take time to sell, such as collective investment funds that invest in property.» Tax treatment depends upon your individual circumstances and the rules may change in the future. 2

3 Questions and Answers What is the SIPP? The SIPP is a type of registered scheme known as a Self Invested Personal Pension (SIPP), which allows you to make your own investment decisions. Like all registered schemes the SIPP provides you with a means of saving for your. It is a long term investment and is designed to provide you with an income in. The SIPP has been set up under trust and accepted as a registered scheme by HMRC. We are the scheme administrator of this SIPP. A trustee is appointed for the SIPP and it owns the cash and assets within your SIPP, but holds them for your benefit. The trustee appoints us to have custody of your cash and assets. The SIPP is available online via the Investor Direct Service and allows you to invest in a wide range of investments and to view these as a single portfolio. You, and your employer if you have one, can pay contributions regularly into your SIPP each month or year and/or pay single contributions. You may be able to transfer from other registered schemes into your SIPP. But you will not be able to transfer any types of occupational or related schemes into this SIPP. Is this SIPP a stakeholder scheme? The SIPP is not a stakeholder scheme; however, stakeholder schemes are generally available and may meet your needs as well as this scheme. Who can have one? Anyone who is aged 18 or over and under 75, who is not a US Person and is a relevant UK individual can open a SIPP, but it cannot be opened jointly with, or on behalf of, anyone else. You are a relevant UK individual if you: (i) (ii) (iii) (iv) have relevant UK earnings chargeable to income tax for that tax year; or are resident in the UK at some time during that tax year; or were resident in the UK at some time during the 5 tax years immediately before the tax year in question and are also resident in the UK at the time of joining the scheme; or have, or are the spouse of a person who has, for that tax year general earnings from overseas Crown employment subject to UK tax. How can I invest in a SIPP? You can open a SIPP by completing the online application process on the Investor Direct Service. Contributions can be made online via the Investor Direct Service using the following payment types:» Debit card for lump sums; or» Direct debit for regular contributions. Your employer can also make contributions on your behalf. A contribution can only be accepted if the payment is in cash from your UK personal bank account or that of your employer. Your SIPP can also accept transfers from other UK registered schemes. How much can I contribute? You can pay in contributions that qualify for tax relief. This is the higher of 100% of your relevant UK earnings (up to 40,000) or 3,600 (after allowing for tax relief ). Up to the age of 75, you can make additional contributions (provided you do not exceed the HMRC limits) at any time into your SIPP. There is no charge for making additional deposits. You can also carry forward any unused contributions from the previous three tax years when your current tax year allowance has been used up, provided that you were a member of a registered scheme during those years, your allowance is 40,000 and you have relevant UK earnings to make any additional contributions above the allowance. You should note that if your total contributions to any scheme during any year exceed the limit set by HMRC, then no tax relief will be available and there will be a tax charge on the excess contributions. The current limit is 40,000 per year. You may stop and start your contributions at any time without penalty, although administration fees will continue to apply whether you are contributing or not. Will all contributions receive tax relief? Under HMRC rules, you can currently receive tax relief at your marginal rate for contributions up to the higher of 100% of your relevant UK earnings up to 40,000 in a year or 3,600. If you have an income greater than 150,000 in a tax year from 6 April 2016 you will have your allowance restricted, this is called the Tapered Annual Allowance. This works by restricting allowance by 1 for every 2 of income that exceeds 150,000. There is a cap to the tapering of 30,000, which means that the minimum tapered allowance is 10,000. The 40,000 allowance may be reduced to 4,000 for your SIPP and any other money purchase savings if certain events happen, for example if you take an income from other savings as flexi-access drawdown or an uncrystallised funds lump sum. This allowance applies to the total contributions you pay to this SIPP and any other registered schemes, but will not be applied in the year that you die, or the year that you receive a severe ill health lump sum. Any contributions over this level will be subject to a tax charge and you will need to notify your local inspector of taxes if you have paid contributions over this level. Any contributions paid by your employer will attract tax relief as a business expense for your employer. If, in a tax year, your total contributions exceed the maximum amount that can receive tax relief, the amount of excess contributions may be able to be repaid to you and any excess tax relief already received from HMRC must be returned. 3

4 Can I transfer from my existing plan to this SIPP? Yes, subject to our agreement, your SIPP is able to accept transfers from other UK registered schemes. All transfers must be made in cash. There is no minimum or maximum transfer amount. Provided that the scheme is a UK registered scheme, transfers in can be made from the following types of scheme:» Personal scheme (including a SIPP);» Stakeholder ;» Group personal scheme; or» FSAVC (Free standing AVC). The following transfers in will not be accepted:» Any final salary scheme; or» Any other occupational scheme such as: Money purchase schemes; EPP (Executive Pension Plan); SSAS (Small Self Administered Scheme); S32 (Section 32); or CIMP(Contracted in Money Purchase). Proceeds from the cancellation of any occupational scheme transfer to a personal plan will not be accepted. How do I access my SIPP? When you first use the Investor Direct online application process, you will receive your Account Number and User ID, and you will create a password and PIN. You will then be able to log-in and access the Investor Direct Service online. Your User ID, password and PIN will also allow you to apply for or view any other Accounts you have opened with Investor Direct; for example, the Investment Account and Stocks & Shares ISA. What is a Model Portfolio? A Model Portfolio is a selection of investments designed to achieve a specified set of aims, risks and objectives. If the Investor Direct Service allows you to invest in a Model Portfolio, and you select this option, the portfolio will be re-balanced from time to time. This means that investments will be bought and sold, to keep the proportion invested in each asset in line with the original aims, risks and objectives as the proportion of each asset held will change over time due to the relative performance of each asset included in the model. If you choose to invest in a Model Portfolio, you agree to invest your SIPP in that Model Portfolio, rather than select your own range of investments. You will not be able to invest in other assets within your SIPP. The selection of a Model Portfolio is based on your own choice and research. Neither the choice nor structure of the Model Portfolio implies any advice or personal recommendation by us, the distributor or Discretionary Fund Manager. Investor Direct may contain one of the following types of Model Portfolios: Distributor-selected Model Portfolio The distributor will provide the Model Portfolio and will rebalance that portfolio of investments against a set proportion of a fixed range of investments at specified intervals. If the composition of the model is updated (for example your distributor changes the proportion to be invested in each asset, or changes some of the assets contained within the model) you will be notified of the change and confirm the update online. If you do not confirm the update, your portfolio will remain invested and be rebalanced in the same range of investments (which may not be in line with its original aims, risks and objectives) until you choose to update it or detach yourself from the Model Portfolio. What investments are available? You can invest in:» UK Open Ended Investment Companies (OEICs);» UK Unit Trusts;» UK Investment Trusts;» Equities quoted on London Stock Exchange;» UCITS IV compliant overseas OEICs and SICAVs; and» Exchange-traded funds (ETFs). You will be able to see the full range of available investments at any time when you log-in and access your SIPP online. What is a Distributor? When you open a SIPP a Distributor will have introduced the service to you via their website. The Distributor is a firm that is authorised to arrange the provision of the Investor Direct Service to you. The distributor may influence the range of investments available and may arrange for Model Portfolios of investments to be available either directly or through a Discretionary Fund Manager. Model Portfolio provided by a Discretionary Fund Manager ( DFM ) A DFM will make available this type of model and manage it on a discretionary basis. This means the DFM is responsible for ensuring that the selection of assets and the proportion of assets held within the model are maintained in accordance with the specified aims, risks and objectives. By agreeing to invest in a DFM model you are giving permission to the DFM to manage your investments within that model against its specified aims, risks and objectives. The DFM will therefore be able to change the selection of assets and the proportions of those assets, by placing buy and sell instructions, without seeking prior permission from you. You can detach your SIPP from the model at any time. You will have no direct relationship with the DFM, but the distributor will act as your agent (unless the DFM is also the distributor). 4

5 How do I find out more information about each investment? You are investing on a non-advised, execution only basis which means that you are responsible for your own investment choices. You should conduct your own research into any investment and satisfy yourself that it is suitable for your needs and circumstances. Key Investor Information Documents (KIIDs) relating to any funds you select will be available via the Investor Direct Service, as well as information about the charges for the investments. How do I buy and sell investments? Once you have decided which investments you wish to buy, you can log-in to your Account and follow the instructions online. You can choose to make a one-off purchase of your chosen investments or, if you have set up a regular contribution, you can choose to make regular investments. Once your investment has been made, you can view online the confirmation, including the prices and charges, in the form of a contract note. What happens to any money which remains uninvested? This is held in your SIPP and earns interest. Interest on cash held within your SIPP will be paid without any tax deducted and the rates of interest are available in the Key Information section of the Investor Direct Service. Although we do our best to give you competitive rates of interest, your SIPP is designed to hold cash ready for investing, cash arising from a sale, and any dividends and interest received, not as a long term savings account. Your cash is placed with a range of regulated deposit takers chosen by us for their financial strength. We earn a margin on the interest received from these banks. How can I see what I have invested in? You can log-in to the Investor Direct Service and access your account online and see a summary together with a valuation of your investments at any time. Can I change the investments within my SIPP? Yes, you can decide how your money is invested and sell and buy investments within your SIPP at any time. Each investment provider may have their own limits for purchases, sales and for the amount which must remain within a particular investment when selling. You can buy and sell by logging-in to your account and placing instructions online. How can I find out the value of my investments? You can log-in and access your SIPP online and see the value of your investments at any time. Contract notes, which show that you have purchased or sold an investment, are also available to view using your log-in at any time. In addition, we will send you:» A full valuation statement twice a year by post.» An illustration once a year, which will help you decide whether your arrangements are likely to meet your needs. Will you send me company reports and accounts and voting information? We will not ordinarily send you copies of reports, accounts or voting and meeting information issued by investment providers, unless you specifically request it. We will, however, contact you if there are corporate actions that require you to make a decision (for example, if you need to tell us to take some sort of investment action) such as a rights issue or a fund closure. For more information please see our Terms and Conditions. What happens to income from the investments in my SIPP? Income from investments in your SIPP will be added to your cash balance. What charges do I have to pay? Charges applicable to the Investor Direct Service are as set out below. Please refer to the Charges Schedule for more details.» Platform charges An percentage charge based on the value of the assets held at the end of the month. This is subject to a minimum amount and will be deducted monthly in arrears.» Standard dealing charges: Charges for trades in equities and ETFs only. These will be deducted at the time of the trade.» Dealing within a Model Portfolio All charges will be deducted at the time of the trade.» Distributor charges may be made up of one or both of the items below: An fixed charge deducted monthly in arrears; and An percentage charge based on the value of the assets held at the end of the month. This will be deducted monthly in arrears.» Discretionary Fund Manager charges, if applicable. In addition to the above standard Investor Direct charges:» Additional charges apply for the establishment and administration of a SIPP. VAT will be applied to all SIPP charges. Fund managers will apply charges to your chosen investments. Details of these charges are available when you select your investments online. These charges are normally deducted from the fund value. What are my options? You have the freedom to decide how you use your fund(s) at, and there are a number of benefit options open to you to make the most of your money.to help you make your decisions the Government has introduced a free and impartial s guidance service, known as Pension Wise. You can find out more about this service at This service offers guidance not advice about your options, you should seek advice about your options from a financial adviser. You can use some, or all, of your SIPP to buy an annuity at any time from age 55. 5

6 You can use your SIPP fund on the open market to take advantage of the best rates available from the whole range of insurance companies. An annuity can provide a fixed amount of income, or it can increase each year. It is also possible to buy an annuity which will continue to be paid to your dependants if you die. If you want to use some, or all, of your SIPP to take benefits in another form, for example income drawdown, you will need to transfer to another arrangement (whether or not provided by us). No transfer out charge will apply if the arrangement is provided by us. What might I get back from my SIPP? These illustrations give you an idea of the amount of you may obtain at assuming you are a 35 year old married person. The examples assume different ages of 55, 65 and 75 and are based on an equity-based fund portfolio. The benefits are proportionate which means that if you contributed twice as much as the amount specified, you would receive twice the amount of taxable for the same investment period to. Please bear in mind the following important information about these illustrations and the assumptions made:» These illustrations are not guaranteed and should not be viewed as minimum or maximum amounts. What you get back depends on how your investments grow and the tax treatment of the investment.» You will be sent statements which will enable you to keep track of your plan. The statement will show all payments received into your plan and payments, including charges, that have been deducted.» These illustrations have been adjusted for inflation. Inflation is the rise in costs of goods and services over time. We show figures using today s money because inflation reduces how much you can buy in future.» Inflation affects all savings and investments products but not all illustrations take it into account. So, be careful when comparing products and check whether or not they take inflation into account.» Your income will depend on how your investment grows and the interest rates at the time you retire.» The illustrations do not take account of the Lifetime Allowance, which is a limit on the total amount of all benefits you can bring into payment without paying a tax penalty. Anything over this allowance may be subject to a tax charge. The following assumptions have been made about your annuity:» Your fund can be used to purchase an annuity at any time from age 55.» Your annuity will be paid at the beginning of each month.» Your annuity will be paid throughout the rest of your life.» Your annuity payments will stay at the same level once payment starts.» No annuity will be paid to your dependant in the event of your death. Example 1 a 35 year-old married person who makes a single contribution of 10,000 Lower rate 2% Mid rate 5% Higher rate 8% Term in years Retirement age , , ,500 1, , , ,600 2, , , ,300 3,850 Please note the will be lower if a cash lump sum is taken. 6

7 How might this be affected by charges? The table to the right shows how charges reduce the return on your investment. Please see the Charges Schedule for full details of charges. This table assumes:» Investor Direct charge of 0.25% per year.» SIPP administration charge of 100 per year.» Fund Manager AMC of 0.75% per year.» Distributor charge of 0.25% per year.» Interest will be paid on cash held in your SIPP at the following rates: Below 49, % 50, , % 150, , % 250,000 and above 0.15% We place our clients cash with a range of regulated deposit takers, chosen for financial strength, competitive interest rates, and to maximise client protection. Interest earned on client cash is dependent on total cash held. This interest rate is not included in any of the projections within this illustration. The average interest rate received by us over the 3 months to the end of February 2016 was 0.62%. We retain a margin on interest received. At the end of year Mid Growth Rate 5% per annum Total paid in to date If there were no charges Transfer Value / what you might get back after charges are taken 1 9,750 10,200 10, ,830 11,200 10, ,810 12,700 10, ,100 16,100 11, ,760 20,500 12, ,720 26,200 13,800 In this example, if you retire at age 65 your plan could be worth 12,400 after the effect of charges, whereas without charges it would have been worth 20,500. This means that charges would reduce the yearly growth rate from 2.4% to 0.7%. This is a reduction in growth of 1.7% a year. Example 2 a 35 year-old married person who makes a regular contribution of 500 per month Lower rate 2% Mid rate 5% Higher rate 8% Term in years Retirement age ,400 2, ,000 4, ,000 8, ,200 3, ,000 8, ,000 18, ,000 6, ,000 14, ,000 37,400 Please note the will be lower if a cash lump sum is taken. 7

8 How might this be affected by charges? The table below shows how charges reduce the return on your investment. Please see the Charges Schedule for full details of charges. This table assumes:» Investor Direct charge of 0.25% per year.» SIPP administration charge of 100 per year.» Fund Manager AMC of 0.75% per year.» Distributor charge of 0.25% per year.» Interest will be paid on cash held in your SIPP at the following rates: Below 49, % 50, , % 150, , % 250,000 and above 0.15% We place our clients cash with a range of regulated deposit takers, chosen for financial strength, competitive interest rates, and to maximise client protection. Interest earned on client cash is dependent on total cash held. This interest rate is not included in any of the projections within this illustration. The average interest rate received by us over the 3 months to the end of February 2016 was 0.62%. We retain a margin on interest received. At the end of year Mid Growth Rate 5% per annum Total paid in to date If there were no charges Transfer Value / what you might get back after charges are taken 1 5,850 6,010 5, ,500 30,000 28, ,800 60,500 56, , , , , , , , , ,000 In this example, if you retire at age 65 your plan could be worth 160,000 after the effect of charges, whereas without charges it would have been worth 195,000. This means that charges would reduce the yearly growth rate from 2.4% to 1.3%. This is a reduction in growth of 1.1% a year. What is the tax treatment for my SIPP? You can benefit from both basic rate and higher rate income tax relief on your personal contributions up to the allowance (currently 40,000) allowed by HMRC. We will credit your SIPP with basic rate tax relief as soon as your personal contributions are received and before we reclaim it from HMRC. If you are liable to higher rate tax on your income, you should reclaim the higher rate relief via your self assessment tax return. If you are UK resident for tax purposes, you will be able to reclaim tax relief on personal contributions up to the higher of 3,600 p.a. (including the allowance for basic rate tax relief ) or 100% of your Relevant UK Earnings subject to the Annual Allowance. Contributions made in excess of the allowance will be subject to an additional tax charge which HMRC will levy against you directly. Contributions paid by your employer will not attract tax relief for you. They are also not a taxable benefit in kind for you. Your SIPP usually grows free of UK capital gains and income tax. Where any income tax has been deducted, we will reclaim this from HMRC and it will be paid back to your SIPP. If an investment is regarded as taxable property it will be subject to tax charges by HMRC. There is no restriction on the amount of fund savings that you can accumulate. However, where the total value of all your savings to registered schemes exceeds the lifetime allowance set by HMRC, you may be subject to a lifetime allowance charge. The lifetime allowance is 1m for tax year 2017/18. Any eventual annuity will be taxed under the PAYE system. Death benefits are normally paid free of inheritance tax, although some lump sum death benefits attract a free-standing tax charge of of 45% (if beneficiary is a company or trust) or at the beneficiary s marginal rate of tax from 2016/17 if the member dies age 75 or over (if beneficiary is an individual). These tax advantages and any rates quoted are based on our current understanding of UK legislation and may change in the future. Can I transfer to another scheme at any time? Yes, subject to the SIPP rules and HMRC requirements, you can transfer part or all of your SIPP to another UK registered scheme. We will only transfer to a recognised overseas scheme where a statutory right to such a transfer exists. The SIPP is able to transfer both cash and/or investments to your new scheme subject to terms and conditions set by the new scheme. If you elect to transfer the investments in your SIPP, the value will be calculated according to the cash value of the holdings on the day prior to transfer. We will apply a charge for making a transfer see our Charges Schedule for details. If you transfer the investments in your SIPP, your receiving scheme may make a charge to re-register the assets. Can I change my mind about opening my SIPP? If you change your mind about opening your SIPP, you have 30 days from the date you successfully complete your application online (the cooling off period ) to write and tell us. Provided you leave your money in cash for 30 days, a refund of the sum equal to the payment made will be returned to you, or to your employer if they made the payment. By cancelling your SIPP the SIPP contract is terminated. You may elect online to waive these cancellation rights, in which case you will be able to invest as soon as you have available cash. If you do not waive these rights, you will be unable to invest the cash in your SIPP during the cooling-off period. 8

9 Can I change my mind about a transfer to my SIPP? If you wish to change your mind about a transfer, you can cancel by writing to us within 30 days from the date the transfer payment is received by us. If you cancel the transfer it will be returned to the previous scheme, if the previous scheme will accept the return of the monies, or transferred to an alternative scheme of your choosing (provided this meets HMRC Rules). If you wish to invest the transfer payment within 30 days of receipt you must waive your right to cancel the transfer. If you wish to cancel, please send your notification, quoting your Account Number, to Investor Direct SIPP Team, Trimbridge House, Trim Street, Bath BA1 1HB. Can I close my SIPP after the cooling off period? After the cooling off period you will be unable to cancel your SIPP. We will be unable to return any contributions you have made to you. You may, however, transfer the value of your SIPP to another scheme as detailed above. What happens if I die? Your SIPP will be dealt with under the HMRC requirements and the applicable legislation at the time of your death. If you die below age 75 Beneficiary is an individual» An individual who is a beneficiary can receive a lump sum taxed at their marginal rate of tax. Beneficiary is not an Individual» A company or trust which is a beneficiary can receive a lump sum taxed at 45%. What if I have a complaint? If your complaint is about the service you have received from us, please write to the Complaints Manager at Investor Direct, Trimbridge House, Trim Street, Bath, BA1 1HB. Alternatively you can call us on or complaints@ifdl-uk.co.uk. Our Complaints Process is available in the Key Information section of the Investor Direct Service. If you are not satisfied with the way your complaint is dealt with, or if your complaint is not dealt with in eight weeks, you can contact: The Financial Ombudsman Service Exchange Tower London, E14 9SR Telephone: calls to this number are free from mobile phones and landlines calls to this number cost no more than calls to 01 and 02 numbers complaint.info@financial-ombudsman.org.uk If you have a complaint regarding your distributor, your DFM or an individual investment, this should be directed to the distributor, DFM or or fund manager concerned. Making a complaint will not affect your legal rights. Can I claim compensation? IFDL is covered by the Financial Services Compensation Scheme (FSCS) in respect of the Investor Direct service. If you make a valid claim against us in respect of your investments and we are unable to meet our liabilities in full, you may be entitled to compensation, from the FSCS, of up to 50,000. Your cash and investments are always held separately from our own accounts and from those with whom we place the investments. As such, any insolvency practitioner should be obliged to return your cash and investments to you as part of the wind down process. If your investment provider fails financially, as long as you have selected one covered by the FSCS - the fund prospectus will tell you this - your investments should remain covered up to a maximum of 50,000. However, this does not protect you against losses if the market were to fall in value. The banks we use acknowledge your money is held as client money which is protected in the event of the insolvency of IFDL. In the event of the insolvency of one of the banks we use, any client money we hold for you is protected under the FSCS up to a maximum of 85,000 for each client and bank with whom client money is held. This limit is applied to banks that are separately authorised and can only be applied once, therefore banks operating under different brands within the same authorisation are covered under the same limitation. The compensation limit of 85,000 includes any other money held by you in accounts with the authorised banks we use, therefore if you have current or deposit accounts with the same bank these will all count towards the compensation limit of 85,000. Temporary high balances of up to 1 million are protected for a limited period of 6 months from when the amount was first credited to the account or became legally transferable. The FSCS website has further details on the definition of a temporary high balance. For further information please visit the FSCS website ( Where can I find your Terms and Conditions? The Terms and Conditions are available in the Key Information section of the Investor Direct Service. Your rights as the investor in the SIPP are set out in the Terms and Conditions, which may be subject to change in the future. How is this affected by the law? The laws of England and Wales govern the relationship we have with you prior to and on conclusion of any contract, and the parties submit to the exclusive jurisdiction of the Courts of England.

10 Important Information Any taxation information contained in this document is based on our interpretation of current legislation and HMRC practice. You are responsible for obtaining your own tax advice. Please remember that tax rules may change in the future. How to contact us Customer Services: Office hours are Monday to Friday 9.00am-5.30pm. Telephone calls may be recorded for training and security purposes. Investor Direct SIPP Team Trimbridge House Trim Street Bath, BA1 1HB ID_SKFD_0417_v1