SELECT PORTFOLIO BOND (WEALTH MANAGERS) facilitated adviser charges GUIDE. This is an important document. Please keep it safe for future reference.
2 select portfolio bond (WEALTH Managers) facilitated adviser charges guide
select portfolio bond (WEALTH Managers) facilitated adviser charges guide 3 CONTENTS 1. What ARE facilitated ADVISER CHARGES? 2. What TYPes OF facilitated ADVISER CHARGE DO YOU Offer? 3. HOW DOes EACH TYPE OF facilitated ADVISER CHARGE WORK? 4. PAYMENT DUE DATES AND DATE OF CALCUlatiON OF VALUes 5. What OPtiONS DO I HAVE WheN MY INvestMENT IS UP AND RUNNING? 6. What HAPPENS IF I CASH IN SOME OF MY BOND? 7. What HAPPENS IF I CASH IN ALL OF MY BOND? 8. WHAT HAPPENS IF I MAKE ANY ADDITIONAL INVESTMENTS INTO MY BOND? 5 5 5 7 7 7 8 8 9. What HAPPENS IF I CHANge MY MIND ABOUT A facilitated adviser CHARGE? 8 10. HOW DO I KNOW HOW MUch i ve agreed you should pay to my adviser s firm? 8 11. What HAPPENS IF I CHANge MY ADVISER? 12. What ABOUT TAX? 8 9 13. What HAPPENS IF SOMEONE NAMed ON MY BOND DIES OR THE POlicYhOlders OF MY BOND CHANGE? 9 14. changing the terms of facilitated adviser charges 15. CONtactiNG US glossary 9 10 11
4 select portfolio bond (WEALTH Managers) facilitated adviser charges guide using this document. IMPOrtaNT NOte The Select Portfolio Bond is referred to as the bond throughout this guide. PURPOse OF THIS GUide This guide gives you details of how facilitated adviser charges work. It s an important document to refer to. The Product Guide, the Policy Schedule, the Facilitated Adviser Charges Guide and the Facilitated Adviser Charges Schedule together are the terms and conditions that apply to your bond. You should keep this guide safe as you ll need to refer to it if you want to make any changes to facilitated adviser charges in the future. facilitated ADVISER CHARGES SCHEDUle The Facilitated Adviser Charges Schedule sets out the details of any facilitated adviser charges you ve asked us to apply before you invest and/or after your bond has started. If you or your adviser ask us to make changes to facilitated adviser charges on your bond, we ll confirm them by sending you an updated Facilitated Adviser Charges Schedule. TO HELP YOUR UNDERSTANDING We ve done our best to explain everything as simply as possible. However some terms may be unfamiliar. Some of these are explained in the glossary on page 11. We ve highlighted these terms in red when we use them. Please cross-reference as needed. Throughout the guide we refer to you, we and us. You means the owner of the bond, referred to in your Select Portfolio Bond Policy Schedule and Product Guide as the policyholder. We and us means Legal & General. find OUt more At some points we ve included clear signposts (using the symbol shown alongside) which direct you to more detailed information in this or other documents. Keep an eye out for these. If you d like to see the other documents, please ask us, or your adviser. IF YOU re UNSUre, Please ASK. If anything is unclear or you require further information, we or your adviser will be happy to help.
select portfolio bond (WEALTH Managers) facilitated adviser charges guide 5 1. What ARE facilitated ADVISER CHARGES? You ll agree with your adviser s firm how to pay adviser charges for their services before you invest. We offer you a way of paying your adviser charges called facilitated adviser charges. You can ask us to facilitate payment of your adviser charges by making deductions from the money you give us before you invest, or from your bond after it has started. We ll then pay the amounts we ve deducted to your adviser s firm. When we ve made a deduction for a facilitated adviser charge, we re then responsible for paying the amount deducted to your adviser s firm. 2. What types of facilitated adviser charge do YOU offer? We currently offer two ways of facilitating payment of your adviser charges: an initial facilitated adviser charge deducted before you invest in your bond. an ongoing facilitated adviser charge deducted from your bond after it has started. We ll make any payments based upon the instructions you give us. Initial facilitated adviser charge An initial facilitated adviser charge relates to the adviser charge payable by you for advice that leads to you making an investment, or an additional investment into your bond. You ll agree an amount with your adviser s firm which we ll deduct from the total amount you give us before you invest in your bond. We ll then pay this amount to your adviser s firm. We ll only deduct and pay an initial facilitated adviser charge once for each individual investment. We ll also only make this type of payment before you invest in your bond. Ongoing facilitated adviser charge An ongoing facilitated adviser charge relates to the adviser charge payable by you for any ongoing advice or related services. You ll agree an amount with your adviser s firm as a percentage of your individual investment s value which we ll deduct monthly from your bond. We ll then pay this amount to your adviser s firm. We ll continue paying the ongoing facilitated adviser charge until you ask us to stop or change it, or until there isn t enough money left in your bond to pay the charge. 3. How does each type of facilitated adviser charge work? Initial facilitated adviser charge How we do it We make a deduction from the amount you provide us with. We pay this to your adviser s firm and invest the remaining money into your bond. For example: You give us 50,000. You ask us to pay 3% ( 1,500) to your adviser s firm as an initial facilitated adviser charge. The payment is divided as follows: 1,500 paid to your adviser s firm, the remaining 48,500 is invested in your bond.
6 select portfolio bond (WEALTH Managers) facilitated adviser charges guide Ongoing facilitated adviser charge How we do it We cash in units based on your chosen percentage of your individual investment s value. If your bond is invested in more than one fund, we cash in units from each fund proportionately. For example: You ask us to apply an ongoing facilitated adviser charge of 0.5% each year taken monthly on your bond, which is worth 52,809 with 13,202.25 in fund A and 39,606.75 in fund B, spread over 100 policies. 0.5% divided by 12 = 0.04166% 0.04166% x 52,809.00 = 22.0002294 22.0002294 divided by 100 policies = 0.220002294 0.220002294 rounded down to the next whole penny = 0.22 per policy 0.22 x 100 policies = 22.00 Total payment = 22.00 Amount taken from fund A 13,202.25 divided by 52,809 x 100 = 25% 25% x 22.00 = 5.50 Amount taken from fund B 39,606.75 divided by 52,809 x 100 = 75% 75% x 22.00 = 16.50 The amount we pay has to be divisible by whole pence for each policy that makes up your bond. If this isn t possible, we ll round the amount down to the next whole penny for each policy. For example: You ask us to apply an ongoing facilitated adviser charge of 0.5% each year taken monthly from your bond, which is worth 50,000 with 30,000 in fund A and 20,000 in fund B, spread over 100 policies. 0.5% divided by 12 = 0.04166% 0.04166% x 50,000.00 = 20.83 20.83 divided by 100 policies = 0.2083 0.2083 rounded down to the next whole penny = 0.20 per policy 0.20 x 100 policies = 20.00 Total payment = 20.00 Amount taken from fund A 30,000 divided by 50,000 x 100 = 60% 60% x 20.00 = 12.00 Amount taken from fund B 20,000 divided by 50,000 x 100 = 40% 40% x 20.00 = 8.00
select portfolio bond (WEALTH Managers) facilitated adviser charges guide 7 4. PaYMent due dates and date of calculation Of values Ongoing facilitated adviser charges are due on the same day of the month, in line with the policy date shown in your Policy Schedule. We cash in units using the unit price, or unit prices, calculated on the date the facilitated adviser charge is due. Where that date falls on a non-working day we will cash in units using the unit price, or unit prices, calculated on the previous working day. There could be times when we can t calculate the unit price for a fund which your bond s invested in. This could be due to market conditions or failure of another company we rely upon. If this happens, we ll calculate what we believe to be an appropriate unit price, rather than delaying payment to your adviser s firm. We ll base the price on our view of what the assets held in the fund might be valued at and we ll make any adjustments we think are right to ensure fairness to everybody invested in the fund. 5. What options do I have when my investment is up and running? Initial facilitated adviser charge This can t be changed or cancelled once your bond has started. Ongoing facilitated adviser charge You can stop, start or alter an ongoing facilitated adviser charge at any time. We can act on your instructions alone. We don t need the agreement of your adviser s firm although we ll let them know if you make any changes to an ongoing facilitated adviser charge. We won t act on any instructions from your adviser s firm without your agreement unless they ask us to reduce or stop an ongoing facilitated adviser charge. You need to give us your instructions in writing at least 14 days in advance of the date you want us to make a change to an existing, or set up a new facilitated adviser charge. If a payment to your adviser s firm is due within this 14 day period we won t be able to stop it. To start a new ongoing facilitated adviser charge or increase an existing ongoing facilitated adviser charge, all policyholders must sign and date an instruction before we can accept it. To stop or reduce an existing ongoing facilitated adviser charge, at least one policyholder must sign and date an instruction before we can accept it. If you ask us to stop or reduce your ongoing facilitated adviser charge you ll need to check your agreement with your adviser s firm to see if you have any further adviser charges to pay. You can write to us to make a change at the address shown in the Contacting us section on page 10. We may offer other ways of taking instructions from you. You can call us on the number shown in the same section to see what other ways of taking instructions we re currently offering. 6. What happens if I cash in some of my bond? We ll continue to pay any ongoing facilitated adviser charge at the same chosen percentage of your bond s value.
8 select portfolio bond (WEALTH Managers) facilitated adviser charges guide 7. What happens if I cash in all of my bond? We ll cancel all ongoing facilitated adviser charges. You ll need to check your agreement with your adviser s firm to see if you have any further adviser charges to pay. 8. What happens if I make any additional investments into my bond? each increment is treated as a separate individual investment for the purposes of paying facilitated adviser charges. When you make an increment you ll need to tell us if you want facilitated adviser charges to apply to it. We won t automatically apply the same facilitated adviser charges from your existing investment(s) to any increments. You can ask us to pay any type of facilitated adviser charge from each increment, irrespective of what you ve asked us to pay from your original investment, or any other increments you ve made. We can apply an ongoing facilitated adviser charge across all the investments in your bond if you prefer. If you ask us to pay any type of facilitated adviser charges from your additional investment, we ll send you an updated Facilitated Adviser Charges Schedule. 9. What happens if I change my mind about a facilitated adviser charge? Once we ve set up and paid any facilitated adviser charges, we can t cancel any payments unless you cancel your bond as shown in the Can I change my mind? section of your Select Portfolio Bond Key Features. Hhowever, you can make changes to an ongoing facilitated adviser charge as shown in the What options do I have when my investment is up and running? section on page 7. If you cancel your bond, stop or reduce an ongoing facilitated adviser charge you should check your agreement with your adviser s firm to see if you have any further payments to make to them. 10. HOW DO I KNOW HOW MUch I ve AGREED YOU SHOUld PAY TO MY ADVISER s firm? Once your bond has started we ll send you a Facilitated Adviser Charges Schedule. This will show any initial or ongoing facilitated adviser charges you ve asked us to pay to your adviser s firm. We ll also send you a regular statement at least once a year which will include details of any ongoing facilitated adviser charges we ve deducted from your bond. 11. What happens if I change my adviser? We ll continue facilitated adviser charges until you tell us to do otherwise. You can tell us to set up a facilitated adviser charge to pay your new adviser s firm. If you do this, we ll stop any facilitated adviser charges due to your existing adviser s firm and contact them to let them know. To set up a new ongoing facilitated adviser charge to your new adviser s firm, we ll need to receive your instructions in writing at least 14 days in advance of the next payment date. If a facilitated adviser charge for your existing adviser s firm is due within this 14 day period we won t be able to stop it.
select portfolio bond (WEALTH Managers) facilitated adviser charges guide 9 12. What about tax? Paying your adviser s firm from your bond may have tax implications. How this impacts you will depend on your personal situation and the type of facilitated adviser charges you agree to pay: Initial facilitated adviser charge There are no tax implications relating to the overall investment as the charge is deducted before you invest in your bond. Ongoing facilitated adviser charge This is treated in the same way for tax purposes as any other amounts you take out of your bond. You ll need to add any ongoing facilitated adviser charges to all other amounts you cash in to work out if you have a liability to tax. Please see your Product Guide for details. You should check with your adviser if you want further information on the tax implications of facilitated adviser charges. 13. What HAPPENS IF SOMEONE NAMed ON MY BOND DIES OR THE POLICYHOLDERS OF MY BOND CHANGE? Iif one of the people named in the Policy Schedule or Policy Schedules as a policyholder dies and there s another or others still alive, we ll continue to pay any ongoing facilitated adviser charges. If the last surviving policyholder dies we ll stop any facilitated adviser charges from the date of death. Iif the last surviving person named on the Policy Schedule or Policy Schedules as a life assured dies your bond ends as described in the Product Guide. We ll stop any facilitated adviser charges from the date of death. When we re notified of a transfer of ownership to anybody other than a policyholder named on the Policy Schedule or Policy Schedules we ll stop any facilitated adviser charges. We can start ongoing facilitated adviser charges again if asked by all policyholders after the transfer of ownership. 14. CHANgiNG THE TERMS OF FACILITATED adviser CHARGES We may make fair and reasonable changes to the terms of your bond including to facilitated adviser charges as shown in the Changing the terms of your bond section of your Select Portfolio Bond Product Guide. We may make changes to the terms of facilitated adviser charges that apply to your bond as a result of actions taken by, or circumstances that apply to, your adviser. We ll only make changes for good reasons which include the following: Your adviser ceases to be an authorised or exempted person under the Financial Services and Markets Act 2000. Your adviser ceases to have the appropriate and relevant permissions from the Financial Conduct Authority (or subsequent regulatory bodies) to carry on the business. Your adviser dies or becomes insolvent. Your adviser is no longer providing you with advice or advice-related services. If we or your adviser end the agreement between them and us that allows your adviser to carry out business with us. We believe your adviser is acting in breach of regulatory requirements or in a fraudulent manner.
10 select portfolio bond (WEALTH Managers) facilitated adviser charges guide 15. CONTACTING US Your adviser will normally be able to help you with any questions you have about your bond or facilitated adviser charges that are not answered in this guide, the Product Guide, the Key Features, the Facilitated Adviser Charges Summary or the Funds key features. If you d like to ask us anything, please do. You can contact us in any of the following ways. Call us on 03700 500 263 Calls to this number will not exceed your fixed line or mobile phone provider s national rate and will be included in any inclusive free minute plan or discount scheme you may have with your telephone provider. Call charges will vary between telephone providers. We may record and monitor calls. Email our helpdesk at customer.response@landg.com If you re contacting us by email please remember not to send any personal, financial or banking information because your information isn t secure. Write to us at Legal & General City Park The Droveway Hove East Sussex BN3 7PY
select portfolio bond (WEALTH Managers) facilitated adviser charges guide 11 Glossary. Administration office Adviser charges Assets Bond Bond s value Facilitated adviser charge or facilitated adviser charges Fund or funds Increment Individual investment Individual investment s value Normal working hours Policy or policies Policy date Policyholder Policy Schedule Units Unit price or prices Working day The office where we process Select Portfolio Bond business. The current details are shown on page 10. The amount you agree to pay your adviser s firm for their services. Please note that your adviser may have a different name for this such as a fee or service charge. The investments that make up a fund. For example, shares or cash. Our Select Portfolio Bond is a single premium life assurance contract used for investment purposes. The sum of all the individual investment s values. a way of paying your adviser charges. You can ask us to deduct facilitated adviser charges from the money you give to us before you invest in your bond, from your bond after it has started, or a combination of both. We ll then pay the amounts deducted to your adviser s firm. a collection of assets that your bond can be invested in. These assets may be managed by us or other investment management companies. Where we refer to fund in this document it can mean fund or funds. an additional investment into your bond. Each investment you make into your bond. For example, your original investment to set up your bond and three increments would make a total of four individual investments into your bond. The total value of an individual investment in your bond. 9am to 5pm on a working day. an individual insurance contract. Each policy has its own unique number and can be individually recognised. Policies are all the policies that make up your bond. This is the date we receive your correctly completed application form, including any documents we need, and receipt of the money for your investment at our current administration office during normal working hours. The legal owner, or owners, of your bond. a document that sets out the details of your investment which is proof of ownership of your bond. a unit is a share of a fund. Each fund is split into a series of units. The number of units you hold is your share of the fund. A price calculated each working day that is used to value units. any day from Monday to Friday inclusive, excluding English public holidays.
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