1 SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES SIMPLE ISA ADVICE SERVICE

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1 1 SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES.

2 SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES 2 We believe good financial advice is key to helping your money work harder for you. At the heart of our Simple ISA Advice Service is our team of financial consultants who are here to take the hard work out of what can be a complex subject. We offer restricted advice, which means we only offer advice on stocks and shares ISAs from the Legal & General group of companies. Our Simple ISA Advice service is for people who have not used their ISA allowance this tax year and are looking for a tax-efficient way to invest over the medium to long term. There is a minimum investment amount of 10,000 for lump sum investments and 200 a month for regular contribution investments. Introduction to charges We charge you for some of our services when you invest in a stocks and shares ISA after receiving advice from your financial consultant. This guide sets out the three charges you may see, with examples to show you how they work and what they are for. It s important to remember these are only examples. Important Information The value of an investment in a stocks and shares ISA can fall as well as rise and you may get back less than you invest. Although there is no fixed term, you should consider stocks and shares ISAs as medium to long-term investments of at least five years, and ideally not tie yourself to a fixed end date. Legal & General (Portfolio Management Services) Limited is responsible for the advice, as well as provision of stocks and shares ISAs, the Investor Portfolio Service (IPS) and the facilitation of dealing. The tax efficiency of stocks and shares ISAs is based on current tax law and may not be maintained in the future. Tax treatment depends on your individual circumstances.

3 SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES 3 RANGE OF CHARGES. ADVICE CHARGES CHARGE This charge applies when you decide to proceed with our recommendations and invest. The charge is applied to cover the cost of the advice you receive from your financial consultant and the time taken to put together your personal investment recommendations. You ll be charged whenever you invest through your financial consultant and this will be taken from your overall contribution amount prior to investing. For people investing regularly the overall contribution amount is calculated as 48 months worth of contributions and the Initial Adviser Charge is taken up front. The Initial Adviser Charge will be 2.5% with a minimum charge of 295. This means that for amounts up to and including 11,800 you will pay 295. For any amounts over this, you ll pay 2.5% as shown in the tables below. We call the amount you pay us the contribution amount and once the Initial Adviser Charge has been deducted, the remaining amount goes into your product we call this the investment amount. If you choose not to invest, no charge will apply. SCENARIO 1: EFFECT OF INITIAL ADVICE CHARGE WHEN INVESTING A LUMP SUM The table below provides some examples of how the Initial Adviser Charge will apply. We ve used different lump sums of money to show how the charge is applied. The charge will be deducted from the contribution amount you give us to invest. CONTRIBUTION AMOUNT (LUMP SUM) CHARGE ( ) CHARGE (%) INVESTMENT AMOUNT 10, % 9,705 12, % 11,700 15, % 14,625 As the table shows, the minimum charge of 295 applies for a contribution amount of 10,000 but for 12,000 and 15,000 the 2.5% charge applies. For tax reasons, we might recommend you invest a specific investment amount into your product(s). To do this, we ll calculate the exact contribution amount you need to provide. We call this grossing up. If your financial consultant feels it s right for you, they ll explain this in full and the amounts involved. SCENARIO 2: EFFECT OF INITIAL ADVICE CHARGE WHEN INVESTING REGULARLY You may decide you d like to make payments to us on a monthly basis rather than investing a lump sum. To work out the Initial Adviser Charge, we ll apply the 2.5% charge to 48 months of your regular amount. You ll then need to pay this amount to us when you set up your investment, separate to your regular monthly contributions. The 295 minimum charge still applies. The table below provides an example of this. MONTHLY CONTRIBUTION 48 MONTHS CONTRIBUTIONS CHARGE ( ) CHARGE (%) 200 9, % , % , % WHAT HAPPENS IF I INVEST AGAIN IN THE FUTURE? If you make further investments in the future as a result of advice from your financial consultant, the Initial Adviser Charge relevant at the time will apply. WHAT IF I AM AN EXISTING CUSTOMER OPTED IN TO ONGOING SERVICE? If you have already opted in to the Ongoing Service the charge for this is disclosed in the Ongoing Service Addendum ISA Tariff of Charges. This addendum explains the Ongoing Service Charge and also replaces the page 5, Effect of Ongoing Charges section in this document with Ongoing Service Charge specific examples. Your financial consultant will go through the charges in the addendum with you.

4 SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES 4 FUND MANAGER CHARGES ONGOING CHARGES FIGURE (OCF) The OCF indicates the fund charges you ll pay over a year for as long as you hold your investment. It relates to the fund manager costs of running the fund. The OCF consists of the fund s annual management charge and any extra expenses. Please note: The charge is already accounted for in the fund s daily unit price, so if you invest you won t see these charges taken on your statements. The fund manager can change the OCF, so we can t guarantee the figures below are current. Please see the fund s Key Investor Information Document (KIID) for the most recent figure. The following funds are currently available for customers receiving simple ISA advice. FUND OCF Legal & General Mixed Investment 0 35% Fund 0.50% Legal & General Mixed Investment 20 60% Fund 0.52% Legal & General Mixed Investment 40 85% Fund 0.52% Legal & General UK Index Fund 0.10% PLATFORM FEE The platform fee covers the costs for IPS to administer your portfolio and the costs of dealing with payments and transactions, for example, when you wish to move money between funds. We calculate and collect this fee monthly. It s based on the value of your investments and we ll collect it from your IPS Cash Account. To find out more information about your platform fee and the IPS cash account please see the Investing with IPS brochure. The platform fee is as follows: PORTFOLIO VALUE BAND FEE EACH YEAR APPLICABLE TO BAND Up to and including 10, % 10,000 20, % 20,000 and over 0.25% For example, if you were to invest 15,000, the first 10,000 of your investment would incur a charge of 0.70% and the next 5,000 would be charged at 0.35%. In this example you would then pay a total charge of ( 7.29 a month), which is the equivalent of 0.58% of your initial investment. As the platform fee is a percentage of your investment value, the fee in will increase if your investment value increases. Similarly, if your investment decreases in value, so will your amount platform fee.

5 SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES 5 EFFECT OF ONGOING CHARGES. We want to help you understand the effect ongoing charges we have outlined so far will have on your investment over time. The tables below show all of the charges you may pay. If you re an existing customer who has opted in to Ongoing Service, this section should be replaced with the Ongoing Service Addendum ISA Tariff of Charges. SUMMARY OF CHARGES USED IN THE SCENARIOS BELOW TYPE WHAT IT COVERS ASSUMED ANNUAL AMOUNT Fund Charge The fund manager s costs associated with running your chosen investment fund(s) 0.50% Platform Fee The costs in delivering and servicing your investment through the IPS platform Portfolio Value Band Fee each year applicable to Band Up to and including 10, % 10,000 20, % 20,000 and over 0.25% As explained in the tables on page 3, the scenarios below assume that the Initial Adviser Charge of 295 has been paid before you invest. SCENARIO 1: INVESTING A LUMP SUM FOR GROWTH 10,000 investment into a stocks and shares ISA with accumulation units (that is, any income generated from the funds is reinvested). 10,000 LUMP SUM END OF YEAR EFFECT OF OCF TO DATE EFFECT OF PLATFORM FEE TO DATE CUMULATIVE EFFECT OF CHARGES ,640 Assuming that the fund has grown by 4.2% each year over 10 years, the charges in effect reduce the net growth to 3.0% each year. SCENARIO 2: INVESTING REGULARLY FOR GROWTH 200 regular monthly premium paid in advance into accumulation units (that is, any income generated by the funds is reinvested). 200 REGULAR MONTHLY INVESTMENT END OF YEAR EFFECT OF OCF TO DATE EFFECT OF PLATFORM FEE TO DATE CUMULATIVE EFFECT OF CHARGES ,630 Assuming that the fund has grown by 4.2% each year over 10 years, the charges in effect reduce the net growth to 3.1% each year.

6 SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES 6 ASSUMPTIONS We ve used the following assumptions in calculating these figures: Investment growth 4.2% each year We have assumed this growth rate as it s representative of the typical rates available in funds on our panel. You should remember that past performance is not a guide to future performance. The rate we have assumed is not guaranteed, and the actual growth your investment will achieve will vary depending on the performance of the funds you choose. As the charges are based on a percentage of the value of your investment, where the growth rate achieved exceeds this, the actual amount you pay will be higher. If the growth rate is lower than this, the actual amount you pay will be lower. Charges The charges used are to provide an indication of the level of charge you may pay in connection with your investment only. The amount you pay will vary depending on the fund you choose and the amount invested. For the purpose of this calculation we have also assumed that all charges are calculated and deducted from your investment at the end of each month. If you d like further information on the charges that will apply to your investment, please speak to your financial consultant.

7 7 SIMPLE ISA ADVICE SERVICE ISA TARIFF OF CHARGES Legal & General (Portfolio Management Services) Limited Registered in England and Wales No Registered office: One Coleman Street, London EC2R 5AA We are authorised and regulated by the Financial Conduct Authority. Q /14 H