We charge for managing your Distribution Bond. These charges will affect the value of your bond. We offer two charging options - Level and Stepped.
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.
You cannot switch between options once you have taken out your bond.
We strongly recommend you seek financial advice before investing.
We take a percentage of your fund(s) value each year. This is the Fund Management Charge (FMC). The FMC varies depending on which fund or funds you choose. Details of the current level will be shown if you request a personal illustration.
Fund managers may charge an additional expense to cover costs such as fees for trustees, registrars, auditors and regulators. This charge is likely to vary.
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. For more information on the allocation rate, please see our Key Features Document for details.
You can switch your investments in and out of various funds to change the mix of investments. Currently there is no charge for switching.
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 each investment. It may also apply if you take a partial encashment.
Level option - This is now closed to new business, but if you have a Level charging option bond the following applies. There is no exit penalty; however, the initial allocation rate would have been lower.
Charges are regularly reviewed and may be increased to reflect increases in overall costs and/or assumptions made. Any increase in charges will not increase Standard Life's profit margins above reasonable levels.
Please read the Key Features Document (CIB17) for full details on our charges.
