Stepped charging will apply to any bonds taken out after 19 June 2009.
For additional investments into an existing bond taken out between 13 September 2004 and 19 June 2009 there is a choice of charging options - Stepped or Level. For full details of charges, please refer to the Key Features Document (CIB17).
Level charging will apply to any bonds taken out before 13 September 2004.
The option you have will affect the charges that apply to your bond and you can't switch between charging options. You'll find further details about the charges in our Key Features Document (CIB17).
FMC
Each year we take a percentage of your fund(s). This is the Fund Management Charge (FMC). The FMC varies depending on which fund or funds you choose.
The charge can vary and will depend on the charging option you choose.
Additional Expenses
Fund Managers may charge an additional expense to cover costs. Where this charge applies, it is taken directly from the fund and is included in the unit price.
The additional expenses are the same on both the Level and Stepped charging options.
Allocation Rate
We invest a proportion of your investment. This is called the allocation rate. The allocation rate depends on the age of the youngest life assured when you make the investment, and the amount invested.
A higher allocation rate is given to the Stepped charging option. For more information on the allocation rate, please see our Key Features Document (CIB17) for details.
Commission
We pay your financial adviser for arranging the bond. This is paid for from the standard charges on your bond. The amount we pay is shown in your personal illustration.
Exit Penalties
If you select the Stepped option, we will take an exit penalty if you make one-off withdrawals or cash in your bond within the first five years of your investment. If you select the Level option, there is no exit penalty.
Switching funds
There is currently no charge for switching funds. You can switch your payments in and out of various funds to change the mix of investments.
In order to maintain fairness between unitholders remaining in and those leaving a fund, we may, in exceptional circumstances, delay switching all or part of your funds for up to one month or, in the case of units of a fund which invests directly or indirectly in buildings or land, for up to six months. If we delay the switch, we will use the unit prices that apply on the day on which the switch actually takes place, which could be lower or higher than the prices on the day that you made your request.
The charges and additional expenses are not guaranteed and may be altered to reflect changes in costs and assumptions.
