ELI LILLY SELF INVESTED PENSION PLAN (LILLY SIPP) - FEES AND CHARGES ELI LILLY SELF INVESTED PERSONAL PENSION PLAN (LILLY SIPP) FEES AND CHARGES. These are the Fees and Charges for the Legal & General WorkSave Pension Plan. This scheme is referred to by your employer as the Lilly SIPP. INSURED ARRANGEMENT (THESE CHARGES ARE NOT SUBJECT TO VAT) The Annual Management Charge (AMC) 0.10% of the value of investment funds a year. The AMC is independent of your choice of investment funds. We work out the charge daily and take it monthly for the past month by cashing in units. Fund Management Charge (FMC) currently 0.15% to 2.73% of the value of investment funds a year. The FMC varies from investment fund to investment fund and covers the cost of managing your chosen investment fund(s). This charge is reflected in the price of units. The FMC s applying to all the funds available under the insured arrangement can be found by going to www.legalandgeneral.com/investwpp25 We have summarised the charges outlined above in the table below: ANNUAL MANAGEMENT CHARGE (AMC) FUND MANAGEMENT CHARGE (FMC) 0.10 % of the value of investment funds a year Currently* 0.15% to 2.73% of the value of investment funds a year. *as at April 2014 SELF INVESTED ARRANGEMENT Installation Charge 100 plus VAT. This may be waived if regular contributions are being made to the insured arrangement. The AMC is payable at the rate of 0.30% plus VAT, of the value of self invested assets on the day you first self invest and of the value at each anniversary of that date (minimum a year maximum 200 plus VAT a year). The above charges will be deducted from your Member s SIPP bank account. If you join through share maturity, these charges will only be deducted once basic rate tax relief on your initial contribution has been paid in.
ELI LILLY SELF INVESTED PENSION PLAN (LILLY SIPP) - FEES AND CHARGES 2 We have summarised the charges outlined above in the table below: INSTALLATION CHARGE ANNUAL MANAGEMENT CHARGE 100 plus VAT 0.30% plus VAT of the value of self invested assets payable as described above (Minimum a year Maximum 200 plus VAT a year) Stamp Duty is payable at 0.5% on all UK share purchases. Where shares are transferred in specie from an approved share scheme (SAYE/SIP), within 90 days of exercise, no stamp duty is payable. All other share transfers are subject to stamp duty at 0.5%. Any other costs, including brokerage fees on transactions, income drawdown facilities charges, external UK bank accounts etc, will be met by the plan member. These charges are detailed in the pages that follow and will be deducted from your Member s SIPP bank account when applicable. LEGAL & GENERAL ADMINISTRATION FEES FOR SELF INVESTMENT Transaction charges apply to the buying and selling of equities, Government securities and similar investments. TRANSACTIONS WILL BE CHARGED AS FOLLOWS: Purchase or sale of UK and overseas securities, investment and unit trusts, Open Ended Investment Companies (OEICs), UK Real Estate Investment Trusts (UK REITs), Permanent Interest Bearing Shares (PIBS) Capital actions (including scrip issues) Insurance Company funds In specie contributions/transfers of OEICs, unit trusts, stocks, shares, PIBS* 20 plus VAT 20 plus VAT 35 plus VAT 20 plus VAT *Other assets on request ESTABLISHING An external Trustee Investment Plan/Insurance Company Funds Policy An external UK bank account A UK Building Society account Appointment of an investment manager 110 plus VAT These charges are for each transaction. A transaction is a single purchase or sale. Multiple purchases or sales will be treated as separate transactions. You will have to pay investment manager fees and the costs of buying and selling. For example, you must pay any stockbroker s fees as well as the above charges. The buying and selling charges for overseas securities are often higher. STOCKBROKER AND SHAREHOLDING FEES
ELI LILLY SELF INVESTED PENSION PLAN (LILLY SIPP) - FEES AND CHARGES 3 We place orders for the following transactions through our nominated stockbroker: stocks and shares traded on a recognised UK or Overseas stock exchange; shares quoted on the Alternative Investment Market (AIM); We keep our choice of nominated stockbroker under regular review so as to ensure this choice is in your best interest. Our nominated stockbroker is currently Stocktrade. For all transactions requiring a stockbroker (other than share scheme maturities), a dealing fee of 0.3% of the transaction value will be charged. This is subject to a minimum charge of 15 and a maximum of 75. This fee is exempt from VAT. The above fee will not be charged for the initial share scheme maturity contribution as a Stockbroker set up fee of 30 plus VAT will be made. For subsequent share scheme maturities a dealing charge of 15 will be levied. This is not subject to VAT. The account holding fee is 10 plus VAT per quarter payable in arrears. For foreign currency share trading where shares are not CREST registered, a fee of 50 will be payable and deducted from your shares. We will inform you if this fee will apply prior to any trading. For foreign currency share scheme maturities, an additional charge will be applied by a further stockbroker. The stockbroker will deduct the charge when selling and repurchasing the shares on transfer to your WorkSave Pension Plan. When buying or selling assets we will take all reasonable steps to obtain the best possible result for you, taking into consideration things such as price, speed, size and nature of timings. A copy of our best execution policy is available on request. If you provide any specific instructions for buying or selling assets we will follow these instructions but this may not obtain the best possible result for you. ADDITIONAL VALUATION CHARGE
ELI LILLY SELF INVESTED PENSION PLAN (LILLY SIPP) - FEES AND CHARGES 4 You will receive one free valuation of self invested assets each year. Legal & General will charge 20 plus VAT for any extra valuations of self invested assets. Valuations of your holdings are available free online, through Manage Your Account. PROPERTY INVESTMENT (In the United Kingdom only) Property investment and management services are provided by Countrywide Property Management. The following charges apply to property invested in the Lilly SIPP. Unless otherwise stated, these fees are applied only once for each transaction. 1 Property acquisition (minimum value 100,000 excluding VAT) 400 plus VAT at time of instructing solicitors AND 150 plus VAT on completion (If the property purchase is not completed, the 400 plus VAT charge will not be refunded) 2 Arranging a mortgage 125 plus VAT 3 Ongoing administration 150 plus VAT each quarter year AND the quarterly charges set out in 4 as applicable 4 Joint purchases (over and above one) VAT registered properties Properties with rent arrears 10 plus VAT each quarter year for each member 25 plus VAT each quarter year 60 plus VAT each quarter year 5 Additional property/property unit charge An additional annual charge of 150 plus VAT a year 6 Development or refurbishment 0.5% of the final cost (minimum 850 before VAT) plus VAT 7 New lease or renewal of lease 265 plus VAT 8 Rent review 265 (member tenant) plus VAT; 470 (third-party tenant) plus VAT 9 Deed of variation 470 plus VAT 10 Sale or transfer 470 plus VAT We may charge these fees to the tenant of a property held in the WorkSave Pension Plan: 11 Assignment 470 plus VAT 12 Arranging a mortgage 470 plus VAT 13 Ongoing administration 470 plus VAT Legal & General reserves the right to make additional charges at the rate of 94 an hour plus VAT for additional services provided outside of the fees listed above. An inspected valuation, completed by a surveyor will be required for all property acquisitions, sales and in specie transfers. Countrywide Property Management offers further services, including a surveyor service, which are charged for on an individual basis. Please contact us for further information in respect of these services. SOLICITORS FEES (England and Wales)*
ELI LILLY SELF INVESTED PENSION PLAN (LILLY SIPP) - FEES AND CHARGES 5 Property Acquisition Property value up to 300,000 1,750 plus VAT and associated costs 300,001 to 400,000 2,500 plus VAT and associated costs 400,001 to 750,000 4,000 plus VAT and associated costs 750,001 to 1 million 5,000 plus VAT and associated costs Over 1 million to be quoted separately These fees are inclusive of conveyancing and work undertaken in respect of borrowings and tenancy agreements. A lease to a third party may be charged at a higher rate, by separate agreement. In specie transfers Sale/Transfer out 1,750 plus VAT and associated costs 0.5% of the sale price/transfer value (min 1,000) plus VAT and associated costs For details of the solicitors fees applicable in Scotland, please contact us. INCOME DRAWDOWN FACILITY CHARGES Income Drawdown Set Up Fee One-off income drawdown set up fee 100 plus VAT Income Drawdown Annual Fee (due on each anniversary of setting up income drawdown) If drawdown payments made from any assets during the preceding 12 months If no drawdown payments made during the preceding 12 months 100 plus VAT Nil Income Drawdown Fees For each additional one-off (ad-hoc) income drawdown payment in a year (or variation of regular payments) Designation of an additional sum for income drawdown at a time other than the annual review date For each payment by cheque (that is rather than BACS) 35 plus VAT SALE OF INVESTMENTS TO COVER FEES AND CHARGES If charges are outstanding and no instruction is received from the member, then we will deduct all charges from the Member s SIPP bank account. If this account does not have the required funds, then assets will be sold in the following order to pay the charges. 1. Proportionately across insured funds 2. From self invested investments on a last in first out basis (excluding commercial property) 3. Commercial property
ELI LILLY SELF INVESTED PENSION PLAN (LILLY SIPP) - FEES AND CHARGES 6 INTEREST ON MEMBER S SIPP BANK ACCOUNT The Member s SIPP bank account is set up for the purpose of self investment, to purchase assets and receive the proceeds from the sale of assets. The balance forms part of the self invested asset holding and will therefore be subject to self invested charges. You will receive interest at Bank of Scotland base rate minus 1% (when the base rate is 1% or less, there is no interest payable) on all credit balances in your Member s SIPP bank account, paid on a monthly basis. Legal & General will earn interest on client monies held within the SIPP Bank of Scotland accounts. Details are available on request. We have listed here the principal charges; others may be incurred in respect of property or other types of investments. In particular, overseas investments, which often involve comparatively high expenses, have higher charges. The investment charges applicable to your self invested arrangement will be quoted at the time investments are made. We can increase our charges at any time, but we will let you know before we make any changes www.legalandgeneral.com/workplacebenefits Legal & General (Portfolio Management Services) Limited Registered in England and Wales No. 2457525 Registered office: One Coleman Street, London EC2R 5AA We are authorised and regulated by the Financial Conduct Authority. Q20025EL 04/14 H0141132