ADVISER CHARGE AND CONSULTANCY CHARGE FACILITATION SCHEDULE. April 2015.

ADVISER CHARGE AND CONSULTANCY CHARGE FACILITATION SCHEDULE. April 2015. 7224\693007\Fleet, Georgina\Fleet, Georgina\v1\6 August 2012 1

Adviser Charge and Consultancy Charge Facilitation Schedule 2 IMPORTANT INFORMATION This information may be downloaded to your PC in whole or in part provided that any reproduction or copy, or any derivative, is true to the original, and it is EITHER used for personal use OR in support of an Intermediary Terms of Business with Legal & General. Professional advisers who are properly authorised may use it in the process of giving financial advice relating to Legal & General products. Copies or derivatives of the document may not be sold, marketed, or used for commercial gain. Notwithstanding the above, Legal & General Assurance Society Limited retains ownership of copyright in all such reproductions, copies or derivatives. Copyright Legal & General Assurance Society Limited, 2012 One Coleman Street, London, EC2R 5AA. All rights reserved.

Adviser Charge and Consultancy Charge Facilitation Schedule 3 PART A INTRODUCTION. Legal & General s services for facilitating the payment of Adviser Charges and Consultancy Charges to the Intermediary on Legal & General s Retail Investment Products are set out in this Schedule. This Schedule sets out additional terms upon which Adviser Charges and Consultancy Charges may be facilitated so that payment may be made to the Intermediary on behalf of the Client by Legal & General. Legal & General will not hold or retain any tariff or schedule of charges for a given Intermediary, but will, where requested by the Intermediary and accepted by Legal & General, facilitate an Adviser Charge or Consultancy Charge in accordance with the methods described in relation to individual Products set out in this Adviser Charge and Consultancy Charge Facilitation Schedule and in all cases, the methods of facilitation described will comply with Regulatory Requirements. This Schedule reflects the terms upon which the payment of Adviser Charges and Consultancy Charges are payable by Legal & General as at the date of publication of this Schedule on the Adviser Centre. This Schedule becomes effective on different dates, depending on the Product in question. Please see the tables in Part C, Appendix 1 for the effective date of this Schedule for each particular Product. Legal & General may from time to time introduce new Products, which facilitate the payment of Adviser Charges. Any variations or amendments to this Schedule will be posted to the Adviser Centre from time to time. Legal & General will notify advisers, including the Intermediary, by posting a message on the Adviser Centre highlighting any such variation or amendment. Legal & General may also, with the authority of the relevant employer and scheme trustee, facilitate the payment of charges to the Intermediary in relation to Legal & General s WorkSave Pension Trust occupational pension product in the same way as it facilitates the payment of Consultancy Charges. Any terms in this Schedule relating to Consultancy Charges shall equally apply to charges relating to the WorkSave Pension Trust product.

Adviser Charge and Consultancy Charge Facilitation Schedule 4 PART B - GENERAL PROVISIONS. 1. TERMS OF BUSINESS This Adviser Charge and Consultancy Charge Facilitation Schedule is incorporated by reference into Legal & General s Terms of Business with the Intermediary. Unless otherwise stated the words, definitions and expressions used in this Schedule, shall have the same meaning and effect as those set out in the General Terms. 2. COMMISSION AND FEE STATEMENTS Timescales for the delivery of Commission and Fee statements (which set out the Adviser Charges and Consultancy Charges as well as the Commission which has been paid to the Intermediary) are the same as they are for the delivery of Commission statements. Please refer to Paragraph 11 of the Commission Schedule. 3. UNSUPPORTED FACILITATION TYPES IN RELATION TO ADVISER CHARGES AND CONSULTANCY CHARGES Legal & General will not facilitate the payment of Adviser Charges or Consultancy Charges which constitute unauthorised member payments as such term is described in Her Majesty s Revenue and Customs Paper RPSM09106040 entitled Technical Pages: Member benefits: Scheme administration member payments: Rebated commission and adviser charging. 4. SUPPORTED FACILITATION TYPES IN RELATION TO ADVISER CHARGES Legal & General will facilitate the payment of Adviser Charges to an Intermediary on behalf of a Client using the following methods, depending on the Product in question, and as described further in Part C: Disinvestment of assets ( Disinvestment ) Deduction from the Client s premium ( Contribution Deduction ) Deduction prior to any investment into a Product ( Premium Plus ). Deduction from net fund ( Net Fund Deduction ) Deduction from tax-free cash ( Tax-Free Cash Deduction ) 4.1 Initial Adviser Charge: Depending on the Product in question, an Initial Adviser Charge can be facilitated in respect of Personal Recommendations given to a Retail Client and is payable as a single one-off payment. An Initial Adviser Charge can be facilitated for new business and increments. Initial Adviser Charges may be expressed as a fixed total amount, or as percentage of the premium or fund, depending on the Product in question. 4.2 Initial Adviser Charge via Instalments: Depending on the Product in question, an Initial Adviser Charge may be facilitated over a number of instalments only where a Retail Client has purchased a regular premium product and is paying regular premiums. 4.3 Ongoing Adviser Charges: Depending on the Product in question, an Ongoing Adviser Charge relates to an ongoing service or ongoing advice provided by the Intermediary to a Retail Client. The method of facilitation, and frequency of collection, of an Ongoing Adviser Charge will be dependant on the Product in question and is described further in Part C.

Adviser Charge and Consultancy Charge Facilitation Schedule 5 4.4 One-off Adviser Charges: Depending on the Product in question and from a date to be determined by Legal & General, a One-off Adviser Charge may be facilitated throughout the life of the Products which support facilitation. A One-off Adviser Charge can be facilitated through Disinvestment. 5. SUPPORTED FACILITATION TYPES IN RELATION TO CONSULTANCY CHARGES Legal & General may facilitate Consultancy Charges on behalf of an Intermediary as described more fully in Part C and in the following ways: 5.1 Initial Consultancy Charge via single payment: Depending on the Product in question, an Initial Consultancy Charge can be facilitated in respect of advice or services given to an employer or scheme trustee and is payable as a single one-off payment. 5.2 Initial Consultancy Charge via Instalments: Depending on the Product in question, an Initial Consultancy Charge can be facilitated over a number of instalments only where the employer or scheme trustee is making regular payments. 5.3 Ongoing Consultancy Charges Depending on the Product in question, an ongoing Consultancy charge relates to an ongoing service or ongoing advice provided by the Intermediary to an employer or scheme Trustee in respect of an ongoing service or advice. An Ongoing Consultancy Charge can be facilitated over a defined period of time or for the term of the contract. 5.4 One-off Consultancy Charges Depending on the Product in question, a Oneoff Consultancy Charge may be facilitated throughout the life of the pension Products which support facilitation. 6. UNSUPPORTED FACILITATION TYPES IN RELATION TO CONSULTANCY CHARGES Legal & General will not facilitate Consultancy Charges in relation to the following: in the circumstances set out in paragraph 3 of Part C; and where a Consultancy Charge cannot be fully met from contributions received or via the disinvestment of units as defined by the employer or scheme trustee in the Facilitation Arrangement. 7. CANCELLATION AND OPT OUT (INCLUDE REFUNDING OF CHARGES) Depending on the Product in question and subject to Part C of this Schedule, where Legal & General facilitates an Adviser Charge or Consultancy Charge and the Product to which the Adviser Charge or Consultancy Charge relates is subsequently cancelled within the requisite cancellation period (as such term is described in the FSA Handbook) by the Retail Client (or employee in the case of a pension scheme), the Adviser Charge or Consultancy Charge (as the case may be) will not be reclaimed from the Intermediary, except in the case of: annuity products; pension transfers; Legal & General s Workplace Pension arrangements; and Products in relation to which a relevant authority (including, but not limited to, the FSA, the Financial Ombudsman Service or HMRC) has opined that the Adviser Charge or Consultancy Charge should be reclaimed. In each of these instances the Adviser Charge/Consultancy Charge will be reclaimed from the Intermediary in order that the full amount of annuity fund or pension transfer fund can be returned to the ceding scheme or the Client if they have directly provided a payment to Legal & General for the purpose of immediate annuity purchase. The amount reclaimed from the Intermediary can either be paid directly by the Intermediary (in which the Intermediary must repay promptly upon request

Adviser Charge and Consultancy Charge Facilitation Schedule 6 from Legal & General) or by way of set-off under clause 15 of the General Terms. Where an employee opts out (as such term is defined in the Pensions Act 2008) of Workplace Pension arrangements to which a Consultancy Charge relates, the Consultancy Charge will be reclaimed from the Intermediary. 8. TREATMENT OF ADVISER CHARGES ON TERMINATION OR TRANSFER OF OWNERSHIP OF A POLICY In relation to Ongoing Adviser Charges where a Policy is terminated, surrendered or transferred, Legal & General will cease to facilitate Adviser Charges in relation to that Policy. Where the policy has been terminated due to retirement, surrender, death or transfer out, outstanding Initial Adviser Charges will be deducted from the value of the policy and paid to the Intermediary. Unless any of the tables in Appendix 1 state differently, in the event of the death of the Client, any outstanding Initial Adviser Charge instalment amounts due from the Client to the Intermediary after the date of death of the Client will not be facilitated by Legal & General. Any payments facilitated by Legal & General after death of the Client in error may be reclaimed by Legal & General. Please see Part C and Appendix 1 of this Schedule for more specific details on the treatment of Adviser Charges on termination of a Product. 9. ADVISER CHARGES AND CONSULTANCY CHARGES FACILITATED FROM PENSION POLICIES, ANNUITIES AND FIXED TERM ANNUITIES Further to paragraph 3 above, the Intermediary must ensure that any Adviser Charge or Consultancy Charge which it levies, is made as a result of: genuine commercial remuneration arrangements between the member and Intermediary for the pension or annuity advice given by the Intermediary to the member; and the agreed amount of remuneration for the Intermediary is appropriate in relation to the service the Intermediary provided in respect of the advice given. 10. REFUSAL TO FACILITATE AN ADVISER CHARGE OR CONSULTANCY CHARGE Legal & General reserves the right to refuse to facilitate the payment of an Adviser Charge or Consultancy Charge to an Intermediary on behalf of a Client where: the Adviser Charge or Consultancy Charge relates to a Product type that Legal & General has not agreed to facilitate the charges for, pursuant to paragraphs 3 and 6 of this Schedule; the Adviser Charge or Consultancy Charge is not of a type supported by Legal & General as set out in paragraph 4 or 5 above and in the Product Tables found in Appendix 1; the Adviser Charge or Consultancy Charge is deemed, in the reasonable opinion of Legal & General to be excessive; or the Adviser Charge or Consultancy Charge is deemed to be not in the Client s best interest. 11. MONITORING OF ADVISER CHARGES AND CONSULTANCY CHARGES. Legal & General reserves the right to monitor Adviser Charges and Consultancy Charges to identify Adviser Charges and Consultancy Charges that may, in the reasonable opinion of Legal & General, be excessive, not in the Client s best interest, or otherwise unsuitable. Subject to Legal & General s compliance with the DPA, Legal & General reserves the right to pass on any information it obtains in relation to such monitoring to the FSA.

Adviser Charge and Consultancy Charge Facilitation Schedule 7 12. INFORMATION REQUIRED IN ORDER TO FACILITATE AN ADVISER CHARGE OR CONSULTANCY CHARGE 12.1 In order to facilitate an Adviser Charge on behalf of an Intermediary Legal & General will require the completion of a Facilitation Arrangement by the Retail Client. 12.2 In order to facilitate a Consultancy Charge on behalf of an Intermediary Legal & General will require the completion of a signed Customer Authority from the employer or scheme trustee. 12.3 Where the authority is missing or incomplete this will need to be resolved with the Client prior to any charge being facilitated. 15. FIGURES USED IN THE CALCULATION OF AN ADVISER CHARGE The payment of agreed Adviser Charges may vary slightly due to rounding rules. 13. LEAVERS Where a member leaves a Group Personal Pension Scheme, a Group Stakeholder Pension Scheme, or has left pensionable service in relation to a WorkSave Pension Trust occupational pension scheme, Legal & General will cease to facilitate the payment of Initial Consultancy Charges (whether payable by a single payment or by instalments) and the payment of Ongoing Consultancy Charges in relation to the member leaving the scheme or pensionable service in question. 14. TIMING OF THE PAYMENT OF ADVISER CHARGES AND CONSULTANCY CHARGES Legal & General will not facilitate the payment of Adviser Charges and Consultancy Charges to the Intermediary over a materially different time period (subject to any delays in facilitating payment as set out in this Schedule), or on a materially different basis to that in which it recovers the Adviser Charge from a Retail Client (with regard to an Adviser Charge) or an employee (with regard to a Consultancy Charge.

Adviser Charge and Consultancy Charge Facilitation Schedule 8 PART C - PRODUCTS SUPPORTING ADVISER CHARGES AND CONSULTANCY CHARGES. 1. PRODUCTS IN RELATION TO WHICH LEGAL & GENERAL MAY AGREE TO FACILITATE ADVISER CHARGES The following products will support the facilitation of Adviser Charges in the ways set out below: 1.1 Annuities and Fixed Term Annuities: Legal & General may facilitate the payment of Initial Adviser Charges as described in the tables in Appendix 1. 1.2 Select Portfolio Bond (Wealth Managers): Legal & General may facilitate the payment of Initial Adviser Charges (only as single payments) and Ongoing Adviser Charges, as described in the tables in Appendix 1. 1.4 Legal & General Retail Investments Structured Investments and Structured Deposits: Legal & General may facilitate the payment of Initial Adviser Charges as described in the tables in Appendix 1. 2. PRODUCTS IN RELATION TO WHICH LEGAL & GENERAL MAY AGREE TO FACILITATE CONSULTANCY CHARGES As a result of the decision made by the Department for Work and Pensions to prohibit the facilitation of Consultancy Charging for Auto Enrolment by a product provider, Legal & General are currently unable to offer Facilitated Consultancy Charging. Legal & General will not accept Business in relation to the Select Portfolio Bond (Wealth Managers) unless a Personal Recommendation has been given by the Intermediary to the Retail Client in relation to the Bond. 1.3 Legal & General International (Ireland) Limited s International Portfolio Bond: Legal & General International (Ireland) Limited may facilitate the payment of Initial Adviser Charges (only as single payments) and Ongoing Adviser Charges as described in the tables in Appendix 1. Legal & General will not accept Business in relation to the International Portfolio Bond unless a Personal Recommendation has been given by the Intermediary to the Retail Client in relation to the Bond.

Adviser Charge and Consultancy Charge Facilitation Schedule 9 APPENDIX 1 - TABLES. Product Name Select Portfolio Bond (Wealth Managers) Product Type: Investment bond Charge Type Adviser Charge Effective Date: 01/01/2013 Charging Premium Plus Disinvestment When is the charge available to be paid to the Intermediary (after authorisation is received from the Client) Initial charge up-front Ongoing charges Yes No Payable on the next commission and fee statement after any built in time delay. No Yes First charge taken one month from the Policy start date and is payable on the Intermediary s next commission and fee statement after any built in time delay. For a new policy, the Adviser Charge will be deducted monthly in arrears. Advised increments (Initial) Advised increments (Ongoing) For an existing policy if the Adviser Charge is stopped, started or amended in any way, the instruction will take effect at least 14 days later. After the expiry of these 14 days (or such later date) the Ongoing charge will be stopped, started or amended. If any Ongoing Adviser Charge is then due at a subsequent monthly anniversary of the Policy start date it will appear on the next available commission and fee statement. Yes No Payable on the next commission and fee statement after any built in time delay. No Yes Payable on the next commission and fee statement after the monthly anniversary of the start date of the original investment. Treatment of Facilitation Charges Where will the Ongoing Adviser Charge be funded from where the investment is more than one fund? Adviser Charge when the policy is Cashed-in / surrendered in full? Adviser Charge when the policy is partially cashed in / surrendered? Adviser Charge following cancellation of the policy after the cancellation period? Adviser Charge when the last life assured on the policy dies? Explanation The disinvestment will be taken proportionately from each fund. Facilitation of the Adviser Charge will cease upon the date that the Product is surrendered or cashed-in in full. Facilitation of the Adviser Charge will continue on the same terms on the remaining amounts invested in the Product. The Adviser Charge will stop when the policy is cancelled and any charges, which have been deducted prior to cancellation, will be paid to the Intermediary on their next commission and fee statement. The Adviser Charge will cease to be payable after the date of death. Important information: In order to stop, start or amend an Adviser Charge we require authority to do so from all Clients. This only relates to Select Portfolio Bond s where advice has been given and the Bond is sold on or after 31/12/2012 Legal & General will not facilitate Adviser Charges where the Intermediary made a Personal Recommendation, which resulted in a change or addition to an Investment Bond which was effected prior to the RDR Implementation Date

Adviser Charge and Consultancy Charge Facilitation Schedule 10 Product Name International Portfolio Bond Product Type: Offshore Investment Bond (covered under EU passporting rules) Charge Type Adviser Charge Effective Date: 05/11/2012 Charging Initial charge upfront on new business Premium Plus Disinvestment When is the charge available to be paid to the Intermediary (after authorisation is received from the Client) Yes Yes In relation to Premium Plus, the facilitation of the payment of the Initial Adviser Charge will be deducted from the client's payment prior to investment into the policy. In relation to Disinvestment, the facilitation of the payment of the Initial Adviser Charge will be deducted after investment. Payable on the next commission and fee statement after any built in time delay. Initial charge upfront on an increment Ongoing charges on new and incremental business Yes Yes When the increment is made. Premium plus payment will be netted off the total payment received from the Client and paid when the Bond is set up (net of the Adviser Charge). No Yes Decided by the frequency requested by the Client (usually the 25th day of the relevant month) and is payable on the next commission and fee statement. Treatment of Facilitation Charges Where will the Ongoing Adviser Charge be funded from where the investment is more than one fund? Adviser Charge when the policy is Cashed-in / surrendered in full? What happens to an ongoing Adviser Charge when the policy is partially cashed in / surrendered? Adviser Charge following cancellation of the policy after the cancellation period? Adviser Charge when the last life assured on the policy dies? Explanation All Adviser Charges that are facilitated from the Bond are deducted as explicit cash deductions from the Bond transaction account (a client money account which forms part of the Bond's assets). The operation of the Bond transaction account is subject to Legal & General Ireland International (LGII) liquidity rules and if the account balance is negative, LGII can sell assets from the Bond to cover the negative balance. Please see the product literature for further details. Facilitation of the Adviser Charge will cease upon the date that the Product is surrendered or cashed-in in full Facilitation of the Adviser Charge will continue on the same terms on the remaining amounts invested in the Product. The Adviser Charge will stop when the policy is cancelled and any charges, which have been deducted prior to cancellation, will be paid to the Intermediary on their next payment date. The Adviser Charge will cease at the date on which the death is notified to Legal & General Ireland International (LGII). Important information: In order to stop, start or amend an Adviser Charge we require authority to do so from the Retail Client

Adviser Charge and Consultancy Charge Facilitation Schedule 11 Product Name Pension Annuity Product Type: Non Profit lifetime annuity with postcode and/or enhanced (inc. lifestyle) pricing Charge Type: Adviser charge Effective Date: 26/11/2012 Charging Deduction from net fund Deduction from tax free cash When is the charge available to be paid to the adviser (after authorisation is received from the Client) Initial charge upfront Percentage or amount Percentage or amount The Adviser Charge will become payable two Working Days after the Fixed Term Annuity plan has gone live and will then be paid on the next Commission and Fee Statement due. Treatment of Facilitation Charges Cancellation from outset Any other issues Explanation The Adviser Charge will be reclaimed from the adviser and the full value fund will be returned to either the ceding provider or, in the case of Immediate retirement, the customer. Please note that, in view of HMRC rules (RPSM09106040), Legal & General will only support facilitation of an Adviser Charge from an annuity product if the charge is solely in respect of advice relating to, or culminating in, the purchase of an annuity or Fixed Term Annuity. Additionally, no Adviser Charge will be facilitated: In respect of any augmentations received Following receipt of a Pension Sharing order Where payment of the specified charge will cause Guaranteed Minimum Pension to be insufficiently funded Where payment of the specified charge will cause the net consideration amount to fall below our minimum levels of contribution Product Name Cash Out Retirement Plan and Fixed Term Retirement Plan Product Type: Fixed Term Annuity Charge Type: Adviser charge Effective Date: 07/04/2015 Charging Deduction from net fund Deduction from tax free cash When is the charge available to be paid to the adviser (after authorisation is received from the Client) Initial charge upfront Percentage or amount Percentage or amount The Adviser Charge will become payable two Working Days after the Fixed Term Annuity plan has gone live and will then be paid on the next Commission and Fee Statement due. Treatment of Facilitation Charges Cancellation from outset Cash in and transfer Any other issues Explanation The Adviser Charge will be reclaimed from the adviser and the full value fund will be returned to either the ceding provider or, in the case of Immediate retirement, the customer. The Adviser Charge will not be reclaimed, in full or part. Please note that, in view of HMRC rules (RPSM09106040), Legal & General will only support facilitation of an Adviser Charge from an annuity product if the charge is solely in respect of advice relating to, or culminating in, the purchase of an annuity or Fixed Term Annuity. Additionally, no Adviser Charge will be facilitated: Following receipt of a Pension Sharing order Where payment of the specified charge will cause the net consideration amount to fall below our minimum levels of contribution

Adviser Charge and Consultancy Charge Facilitation Schedule 12 Product Name Applied at the time of launch Product Type: Structured Investments and Structured Deposits Charge Type: Adviser charge Effective Date: 11/03/2013 Charging Premium Plus Disinvestment When is the charge available to be paid to the adviser (after authorisation is received from the Client) Initial charge upfront Yes No Payable on the next commission and fee statement after any built in time delay. For ISA applications made in advance of a new tax year (where available) the adviser charges will not be facilitated until the deal is placed within 3 business days following 6 April. Ongoing No No N/A Treatment of Facilitation Charges Cancellation Explanation The Adviser Charge will not be reclaimed from the adviser or refunded to the client. The amount the client will receive back in the event of cancellation is explained in the Product Literature. For ISA applications made in advance of a new tax year, if the customer changes their mind between application receipt and 6 April, we will not be able to facilitate the adviser charge and will refund the full cheque value to the customer. Important information: This appendix may not apply to every structured investment or structured deposit and will only apply where the Key Features document specifies that Legal & General may provide facilitation of initial adviser charges. Full details are available in the Key Features for each product and the Structured Product Facilitated Adviser Charge Guide. An ISA transfer will not proceed and no adviser charge will be facilitated where the value of the ISA transfer after the deduction of the adviser charge falls below the minimum product subscription.

Adviser Charge and Consultancy Charge Facilitation Schedule 13 Legal & General A ssurance Society Limited Registered in England and Wales No. 00166055 Legal & General (Portfolio Management Services) Limited Registered in England and Wales No. 02457525 Legal & General (Unit Trust Managers) Limited Registered in England and Wales No. 01009418 Registered Office: One Coleman Street, London EC2R 5AA Legal & General International (Ireland) Limited Registered in Ireland No. 440141 Registered Office: Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland