Charges Schedule. James Hay Wrap. (Including update for Wrap ISAs applied for on or after 16 October 2014)

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1 James Hay Wrap (Including update for Wrap ISAs applied for on or after 16 October 2014) This document sets out James Hay Partnership s Charges for carrying out transactions within a James Hay Wrap. It also provides you with a guide to all day-to-day Charges applied by James Hay Partnership, and answers some frequently asked questions about our Charges. There is a glossary and explanation of terms on page 8 to help you understand the terminology used. This is a legally binding document between you and James Hay Partnership and forms part of your James Hay Wrap Terms and Conditions. You should read this document carefully. If you do not understand any point, please contact your Financial Adviser. You should also read: James Hay Wrap Key Features James Hay Wrap Permitted Investments Lists for the relevant Wrap Products We expect that our Charges should remain exempt from Value Added Tax (VAT). However, we reserve the right to charge you VAT in addition to our Charges where VAT is applicable. If you use the services of a third party, additional Charges may apply to your James Hay Wrap and VAT may be payable on services provided by these third parties. For details on third party Charges please refer to page 4. James Hay Wrap Terms and Conditions James Hay Wrap Application Pack

2 Getting started Type of Charge When is the Charge taken? Amount Establishment Charge and transfer in N/A Nil Monthly Transaction Charges We will charge you a Transaction Charge payable monthly in arrears, which will cover any Transactions that take place in respect of your James Hay Wrap and the operation of the Investment Portfolio Bank Account and any Product Bank Accounts. There is no Charge for management or administration of the James Hay Wrap. Overall James Hay Wrap valuation (excluding the value of any cash held within your Wrap and any Property held within your SIPP) When is the Charge taken? Transaction Charging rate (per annum) First 500,000 Monthly in arrears 0.35% Next 500,000 (up to 1 million) Monthly in arrears 0.15% More than 1 million Monthly in arrears 0.05% Minimum Charge Monthly in arrears 32 per month The overall James Hay Wrap value (excluding the value of any cash or property held within the Wrap) will be taken, and, using the Transaction Charging rates set out above, divided by 12 to calculate the Monthly Transaction Charge. Please see questions 5 and 6 in the Frequently asked questions section on page 6, for further information. Discounted Charges for connected Wraps Minimum Charge When is the Charge taken? Transaction Charging rate Minimum Charge for second connected Wrap Monthly in arrears per month Minimum Charge for subsequent connected Wrap Monthly in arrears 7 per month You may be eligible to apply for a discounted Minimum Charge in certain circumstances. Please see question 8 in the Frequently asked questions section on page 7 for further information. Please note that all other Charges are as per the standard Charges. 2

3 Investing in property through the Wrap SIPP Type of Charge When is the Charge taken? Amount UK Purchase/transfer in (with panel solicitor) On completion of the transaction 600 UK Purchase/transfer in (without panel solicitor) On completion of the transaction 800 Purchase Charge per additional Member On completion of the transaction 100 Overseas purchase On completion of the transaction Please contact us VAT initial registration On completion of the transaction 120 Mortgage arrangement Charge On completion of the transaction 250 Sale or transfer out (with panel solicitor) On completion of the transaction 450 Sale or transfer out (without panel solicitor) On completion of the transaction 650 Annual property Charge using CBRE (per lettable unit/property) Annual property Charge self managed by Member (per lettable unit/property). Please note: The property self managed option is not available on Wrap SIPPs applied for on or after 5th December 2014 Annually in advance 600 Annually in advance 240 Additional Charge per Member Annually in advance 100 Annual mortgage Charge Annually in advance 150 Annual VAT Charge (not when self managed option is selected) Annually in advance 100 Buy out (Buy out with documentation changes) On completion of the transaction 450 (plus 150) Purchase/sale cancellation fee On cancellation 300 The UK purchase/transfer in Charge is principally a fixed fee and reflects the time we spend and the degree of complexity involved. We will review purchase documentation to ensure it meets HM Revenue & Customs (HMRC) rules and our policies. We will liaise with you or your Financial Adviser, the bank providing the mortgage, the solicitor and valuer. Their charges, together with all disbursements relating to the acquisition, sale or management of any property, will be settled from your SIPP. If you use the services of CBRE, James Hay Partnership will deal with all general property management issues including: rent collection credit control monthly VAT return property inspections arranging insurance of the property on our block policy collating and reporting on insurance notification of valuation due dates and lease events responding to tenant queries approval and payment of invoices HMRC reporting liaison with the solicitor and valuer. Their charges, together with all disbursements relating to the acquisition, sale or management of any property, will be settled from your SIPP. If you applied for a Wrap SIPP prior to 5th December 2014, you may choose not to use the services of CBRE, and to carry out the property management yourself. If you select this option, we will carry out the purchase administration as detailed previously. We will collate Member property returns, arrange insurance of the property, carry out insurance broker reporting, approval and payment of invoices and HMRC reporting. You should know that if you choose to carry out the property management yourself, you will need to carry out the following property management duties: rent collection monthly VAT return property inspections collating and reporting on insurance notification of valuation due dates lease events. You will also need to provide us with information on the amount of rent received, lease information and changes, condition of property and tenant housekeeping and insurance information. You will be the point of contact for the mortgage, suppliers and all tenant queries. For more details, please refer to the property literature at 3

4 Platform Charges Monthly Transaction Charges Monthly Transaction Charges will be taken from your James Hay Wrap on or around the 8th of the month following the calculation of the Charge and will be payable pro-rata from the following Product Bank Accounts: the Investment Portfolio Bank Account for the ISA and Investment Portfolio Products the Wrap SIPP Bank Account for the SIPP the Wrap Ex-Protected Rights SIPP Bank Account for the Wrap Ex-Protected Rights SIPP the Wrap Offshore Bond cash account for the Wrap Offshore Bond. Please Note: For Wrap Offshore Bonds opened before 30 October 2006, the Transaction Charges in relation to the value of the Offshore Bond are taken from the Investment Portfolio Bank Account. For more information on how the Charge is calculated, please refer to page 2 and question 5 in the Frequently asked questions section on page 6. This Charge is 20 per instruction per Product for Investment Centre trades, or per investment provider per Product for non-investment Centre trades. To avoid incurring this Transaction Charge please use the following methods to submit investment instructions: For Investment Centre Transactions: James Hay Online. For non-investment Centre Transactions: Secure Message. Charges for using the services of Selftrade or Santander Sharedealing Ordinarily, the Charge for using the sharedealing service is included in the monthly element of your Transaction Charge. However, if you make more than 20 Wrap sharedealing service transactions across your James Hay Wrap in a year, we will charge you an additional 15 per transaction and we will notify you and your Financial Adviser if this applies. There may also be certain circumstances where other Execution Only Stockbroker charges may apply. Please refer to the Selftrade and Santander Sharedealing Scale of Charges, copies of which are available on request. Transaction Charge for certain investment instructions A Charge will become payable if investment instructions are submitted to us via the following methods: For Investment Centre transactions: Fax, post, telephone, secure message. For non-investment Centre transactions: Fax, post. Other Transaction Charges Any Charges that you agree with your Financial Adviser for initial or ongoing advice will be deducted from the value of your investment or your Product Bank Account and are described as Other Transaction Charges. Initial Adviser Charges These Charges cover the cost of initial investment adviser charges on any purchases of James Hay Investment Centre Funds as agreed with your Financial Adviser. These will be deducted from cash held by us in the relevant Product Bank Account, prior to the investment being made and are described as Other Transaction Charges. Ongoing Adviser Charges These Charges cover the cost of paying any ongoing adviser charges to your Financial Adviser, at the annual rate that you have agreed with them as specified on your initial Wrap Application Form and on each specific Product Application Form. This annual amount is paid on a monthly pro-rata basis, calculated by reference to the overall valuation of the underlying assets that comprise the Products. 4

5 Fund Provider Charges Charges associated with collective investment schemes and Investment Trusts that are levied by fund managers, will ultimately be paid from your investments or debited from your initial investment as appropriate. Any initial investment adviser charges on any investments purchased outside the James Hay Investment Centre will be paid by the Investment Fund Manager/Provider directly to your Financial Adviser. The level of the adviser charges is a matter for you to agree with your Financial Adviser. Where you have nominated an Investment Manager or Execution Only Stockbroker, the level of the fees charged by the Investment Manager or Execution Only Stockbroker and the reasonableness of them, is a matter for you and your Financial Adviser to determine. We will settle such charges on presentation of a suitable invoice and will debit the Wrap SIPP Bank Account for the Wrap SIPP, the Ex-Protected Rights SIPP Bank Account for the Ex-Protected Rights SIPP and the Investment Portfolio Bank Account for other Products. Alternatively, if the Investment Manager is acting on a discretionary basis, they may take such Charges out of any cash they hold on behalf of your Products. Additional Work The above charges indicate the standard investments and work involved with administering the James Hay Wrap. However, if we need to perform additional administration over and above that which is deemed reasonable, we will charge an hourly rate of 150 per hour minimum, relevant to staff seniority and expertise. Regulatory/Industry Levies In the event of a levy being made on us or the companies involved in the Wrap SIPP under the Financial Services Compensation Scheme, or any levy or taxation being imposed on us, the companies involved in the Wrap SIPP or your Wrap Products under any statutory provision, an amount equal to the proportion of such levy or taxation will be recovered from the applicable Wrap Product that we, or in the case of the Wrap SIPP the Scheme Administrator, may reasonably determine. This will be on a basis similar to how the levy, tax liability, Charge or other payment has been calculated. In the event that we or the Scheme Administrator do this, we will give you 30 Business Days notice of the amount that is due from your Wrap Product(s). Transfer out Charges We will not charge for administering a transfer out, however, no Charges will be refunded in part or full when a transfer out is initiated. In the event that your Wrap, or a Product within your Wrap, is closed, we reserve the right to charge for each additional cash payment we have to make after the date of the closure (for example, if a dividend payment is received). If a payment is up to the value of 50, we will charge an amount equal to the value of cash received. If the cash received is over 50, we will charge 50 per payment received. 5

6 Frequently asked questions 1. The calculation of the Monthly Transaction Charge excludes cash. What counts as cash? The Monthly Transaction Charge will be calculated by using the overall James Hay Wrap value, excluding the value of any cash held. Cash refers to any cash held in the Investment Portfolio Bank Account, Product Bank Account(s), and any cash deposits with deposit providers on our Cash Panel. 2. The calculation of the Monthly Transaction Charge excludes property. What counts as property? This means any commercial property held in your Wrap SIPP. We cannot hold residential property, moveable property or goodwill, development land, properties/land adjacent to properties/land that you already own or properties with special problems. Also, the property should normally be freehold. Please refer to the Commercial Property Purchase Guide available from our website or contact the Property Team for more information. 3. What rate of interest is paid on my Bank Account and Product Bank Accounts and do you retain an element of this? a) Your Bank Account and Product Bank Accounts are current accounts and should be used as such. However, you will receive interest on cash held in your Bank Account and Product Bank Accounts. When the Bank of England base rate is below 1% you will receive between 0 and 1 (depending on the total amount held) for each 1,000 held in your account throughout the year. For every 1% increase in the base rate above 1% you will receive an additional 10 for each 1,000 held in the account throughout the year. b) We currently receive between 8 and 12 for each 1,000 of cash held throughout the year in current accounts with the banks. This arrangement is based on the total funds held in client current accounts. The difference between the amount received by us under (b) and the amount paid to you under (a) is used by us to offset the costs of running your Wrap. This enables us to maintain lower annual product administration fees as set out in this. 4. What interest do I earn on my cash deposits with providers on your Cash Panel? Indicative rates of interest for any cash deposits that you place with a Cash Panel provider are shown on our website at but the actual rate you receive will be the rate offered by the bank at the time they receive your application. We will receive between 2 and 2.50 for each 1,000 you place on deposit for a continuous period of a year, or a proportionate amount for shorter term deposits. 5. How are the Transaction Charges calculated? The Monthly Transaction Charge is calculated using the scale described on page 2. For example, if the total James Hay Wrap value was 2 million (excluding cash and property): the first 500,000 would incur a Charge of 1,750 per annum (calculated at 0.35%) the next 500,000 would incur a Charge of 750 per annum (calculated at 0.15%) the balance of 1 million would incur a Charge of 500 per annum (calculated at 0.05%). The Monthly Transaction Charge would therefore be the sum of these Charges divided by 12; i.e = 250 per month. 6. How are the Monthly Transaction Charges allocated to each Product Bank Account within my Wrap? Each Product represents a percentage of the whole Wrap. The total Monthly Transaction Charge is therefore allocated to each of the Product Bank Accounts on this basis. For example, a James Hay Wrap with a total value of 2 million is broken down as follows: the SIPP element holds 500,000 the Investment Portfolio element holds 500,000 the ISA element holds 500,000 the Offshore Bond element holds 500,000. Therefore, 25% of the Monthly Transaction Charge will be collected from the SIPP Bank Account, 50% will be collected from the Investment Portfolio Bank Account (in respect of the Investment Portfolio and the Wrap ISA Monthly Transaction Charges) and 25% will be collected from the Offshore Bond cash account. 6

7 7. How often will you value my Wrap and assets? Your James Hay Wrap valuation will be calculated on the monthly anniversary of the date your James Hay Wrap was opened, and we will use our reasonable endeavours to obtain at least monthly valuations of all assets (excluding property). Where this is not possible, for example if daily fund prices are not available, the last known asset value will be used. We do not accept liability or responsibility for the accuracy of valuations where the information has been provided by third parties, unless the inaccuracy is as a direct result of our error. 10. Is there anything else I should know? We do not send you an invoice when Charges fall due, therefore you should keep sufficient available funds in the relevant Product Bank Account to meet our Charges. In the event that you do not, we reserve the right to sell sufficient investments to cover our Charges. You undertake to pay the Charges and expenses (including adviser charges) in the event that there are no assets readily realisable by us to meet such costs. We will give you written notice in the event that such payment by you is required. 8. What qualifies as a connected Wrap? A connected Wrap is a Wrap which is held or opened by an individual legally connected to you, such as a family member, spouse, civil partner or business partner. If you have a relationship like this with another Wrap client, you may be eligible for a discounted Minimum Charge as set out on page 2. Please contact us for more information. 9. Are there any additional expenses to pay to you or third parties? In addition to the Charges levied by the various parties associated with your James Hay Wrap and the Products within it, these parties, including us, may also incur external expenses such as taxes. These expenses will normally be payable by you. We will not be responsible for paying these costs. 7

8 Glossary and explanation of terms Act Charges Execution Only Stockbroker Financial Adviser Investment Centre Investment Manager Investment Portfolio Investment Portfolio Bank Account ISA James Hay Wrap Offshore Bond Platform Product Bank Account Adviser Charges SIPP or Wrap SIPP Wrap Ex-Protected Rights SIPP Wrap Portfolio The Financial Services and Markets Act 2000 as amended and re-enacted and all Regulations under it. Transaction Charges charged by us in relation to Transactions that take place within your James Hay Wrap and any other Charges levied by us in respect of your James Hay Wrap as referred to in this document. Santander Sharedealing Service, provided by Abbey Stockbrokers Limited, Selftrade or other such stockbroker as shall be permitted by us. The intermediary authorised under the Act as detailed on the Application Form who provides you with financial and investment advice and any successors to them appointed by you and notified to us. The range of funds that we make available to be held within the James Hay Wrap. An Investment Manager authorised under the Act who will hold assets, including cash, within or underlying a Product according to the Terms and Conditions and the relevant investment management agreement, and any successors to them nominated or appointed by you and notified to us. The investments (outside the Wrap SIPP, Wrap ISA and Wrap Offshore Bond). Bank Account which is opened for, and held within, the Investment Portfolio. Individual Savings Account as referred to in the Individual Savings Account Regulations 1998 as amended from time to time. The Wrap ISA is a stocks and shares ISA, as defined by ISA legislation. Your portfolio of Products, including the Bank Account(s) held by you or on your behalf using our services according to the Terms and Conditions. The Wrap Offshore Bond provided by RL360 Insurance Company Limited (RL360 ). The James Hay Wrap. A Bank Account which is opened for, and held within, any Product except the Investment Portfolio. Any charge paid to your Financial Adviser for acting as intermediary and providing you with financial advice and other services in respect of your Wrap Portfolio. It is included as an element in our Transaction Charges, as specified on your Application Form, or your Product Application Form or underlying investment Application Form, and as amended by any later agreement in writing between you and the Financial Adviser and notified to us. The James Hay Personal Pension Plan established to receive contributions and/ or transfer payments as prescribed by the relevant legislation and HMRC rules and provided by James Hay Insurance Company Limited. The James Hay Personal Pension Plan which was previously established to receive a transfer of Protected Rights. Your portfolio of Products, including the Bank Account(s) held by you or on your behalf using our services according to the Terms and Conditions. James Hay Partnership is able to provide literature in alternative formats. The formats available are: Large Print (as recommended by RNIB), Braille, Audio Tape and PC Disk. If you would like to receive this document in an alternative format please contact us on For the hard of hearing and / or speech impaired, please use the Typetalk service via James Hay Partnership is the trading name of James Hay Insurance Company Limited (JHIC) (registered in Jersey number 77318); IPS Pensions Limited (IPS) (registered in England number ); James Hay Administration Company Limited (JHAC) (registered in England number ); James Hay Pension Trustees Limited (JHPT) (registered in England number ); James Hay Wrap Managers Limited (JHWM) (registered in England number ); James Hay Wrap Nominee Company Limited (JHWNC) (registered in England number ); PAL Trustees Limited (PAL) (registered in England number ); Santhouse Pensioneer Trustee Company Limited (SPTCL) (registered in England number ); Sarum Trustees Limited (SarumTL) (registered in England number ); Sealgrove Trustees Limited (STL) (registered in England number ); The IPS Partnership Plc (IPS Plc) (registered in England number ); Union Pension Trustees Limited (UPT) (registered in England number ) and Union Pensions Trustees (London) Limited (UPTL) (registered in England number ). JHIC has its registered office at 3rd Floor, 37 Esplanade, St Helier, Jersey, JE2 3QA. IPS, JHAC, JHPT, JHWM, JHWNC, SPTCL, SarumTL and IPS Plc have their registered office at Trinity House, Buckingway Business Park, Anderson Road, Swavesey, Cambs CB24 4UQ. PAL, STL, UPT and UPTL have their registered office at Dunn s House, St Paul s Road, Salisbury, SP2 7BF. JHIC is regulated by the Jersey Financial Services Commission and JHAC, JHWM, IPS and IPS Plc are authorised and regulated by the Financial Conduct Authority. The provision of Small Self Administered Schemes (SSAS) and trustee and/or administration services for SSAS are not regulated by the FCA. Therefore, IPS and IPS Plc are not regulated by the FCA in relation to these schemes or services.(01/14) JHAY 0391A APR15 GDF