For financial adviser use only. Not approved for use with customers. The Aviva Platform. Prepared for: Prepared by: Investments.

Transcription

1 For financia adviser use ony. Not approved for use with customers. The Aviva Patform Prepared for: Prepared by: Retirement J8127_LF01044_0416.indd 1 Investments Insurance Heath 31/03/16 11:45 pm

2 Contents Wecome to our guide to the Aviva Patform 4 The patform market 5 Introducing the Aviva Patform 6 Everything in one pace 6 Key eements of our proposition 7 Heping you do business 8 Ten ways the Aviva Patform works for you 8 Efficient cient management 8 Comprehensive panning toos 9 Compete re-registration fexibiity 9 Summary of the Aviva Patform 9 Our range of funds and assets 10 Fund criteria 10 Muti-asset funds 11 Discounted funds ist 11 Managed portfoio service 12 Buying and seing investments 12 Choose the right portfoio for your cient 14 Investment Portfoio 15 A wide range of investment options 15 Cear charging 15 Investment Portfoio charges 15 Efficient cient management 15 The cash account 16 Comprehensive panning toos 16 Compete re-registration fexibiity 16 How your cients wi benefit 16 ISA Portfoio 17 A wide range of investment options 17 Cear charging 17 ISA Portfoio charges 17 Efficient cient management 17 The cash account 18 Comprehensive panning toos 18 Compete re-registration fexibiity 18 How your cients wi benefit 18 Pension Portfoio 19 Pension Portfoio eves 19 A wide range of investment options 19 Cear charging 19 Pension Portfoio charges 20 Efficient cient management 21 The cash account 21 Comprehensive panning toos 21 Compete re-registration fexibiity 21 How your cients wi benefit 21 Income drawdown 22 Phased income drawdown 22 Singe income drawdown 22 Did you know? 22 2 The Aviva Patform

3 Cear charging through the Aviva Patform 24 Patform charges 24 Adviser charges 26 Fund manager charges 26 Equity deaing charges 26 Property deaing charges 27 Structured product charges 27 What we don t charge for 27 Summary of our approach to charging 27 Supporting you everyday 28 Working with third parties 28 Re-registration 28 Mode portfoios 28 Fund specific withdrawas 28 Toos and functionaity 28 Marketing support 30 Accessing the Aviva Patform 30 Onine support 30 Account support 30 Hepdesk support team 31 Tax and trust speciaists 31 Investment speciaists 31 Pension Technica hepdesk 31 Straightforward processing 31 Managing risk and reguation 32 Risk profiing questionnaire 32 Heping you with audit trais 32 Investment toos 33 Cean share casses 33 Financia protection for your cients 34 Using our adviser business 37 transition programme Open about ownership 38 Who owns the Aviva Patform? 38 Who owns the cient assets? 38 Taking security seriousy 39 Data and system security 39 Heping you meet your compiance requirements 39 Our business continuity pan 40 Why Aviva? 41 Our business structure and market share 41 Our financia strength 41 Our distribution strength 42 Financia Adviser Academy 42 What you need to know at a gance 42 What this means for your cients 42 Our compaints procedure 43 3 The Aviva Patform

4 Wecome to our guide to the Aviva Patform In this document, we run you through a the steps we ve taken to make sure the Aviva Patform compies with the reguation surrounding patforms. We aso take a quick ook at: patform features investment options charges our extensive range of support and toos You can access the Aviva Patform through our adviser website, Aviva for Advisers. This gives you a singe website through which you can manage a your cient s Aviva ife and pension products. In this guide, we outine the toos and features you can use with the Aviva Patform. You can access a these through Patform Services, a dedicated area on Aviva for Advisers, or as you manage your cient s account onine. This due diigence document ony covers Aviva Patform products (Investment Portfoio, ISA Portfoio and Pension Portfoio). Throughout this document we ca our charge the Aviva charge, this is the Aviva Patform s annua management charge. We offer a number of other ife and pension products: protection annuities individua pensions group pensions equity reease If you woud ike more information on any of these, pease visit aviva-for-advisers.co.uk 4 The Aviva Patform

5 Due diigence in the patform market Patforms are becoming increasingy popuar as advisers take advantage of the speed and ease with which they aow you to do business. With a patform, you can generay save time and money by seeing a your cients investments in one pace and moving money around in just a few cicks. Carrying out due diigence is an essentia part of choosing a patform, not east because the reguator ays responsibiity for this firmy at the door of the adviser. The Financia Conduct Authority has made it cear that you can t take a one-size-fits-a approach to patforms. If you re pacing a cient on a patform, that patform must be suitabe for that cient s needs. The reguator expects you to cover nine areas in your due diigence checks: the patform provider terms and conditions of using the patform charges the range of funds, tax wrappers and products the range of asset casses functionaity accessibiity additiona toos support services. We cover each of these in this guide. 5 The Aviva Patform

6 Introducing the Aviva Patform Many of the patforms out there are designed for the needs of high net worth cients. They offer speciaist features and investments that may work for investors with compex needs, but not those cients with simper needs. The Aviva Patform is different. Launched in January 2010, it caters specificay for mid-market cients, who are typicay cost-conscious peope with straightforward investment needs. Our patform heps you match suitabe investments to the simpe needs of mid-market cients. Our atest AKG strength rating for the Aviva Patform is B+ The Aviva Patform offers a range of portfoios to cope with different tax and income requirements. So, whether your cients financia needs become simper or more compicated over time, the Aviva Patform ets you adapt their investments to hep fit their needs. We ve buit the Aviva Patform using the atest technoogy, with an eye firmy on the future. It s fexibe and easy to deveop, so we can add new features and improve existing ones. We are committed to the patform market. That commitment and our experience shoud give you confidence in using our patform with your cients. We operate a service mode that puts cients at the heart of everything we do and we have a strong service reputation. Our strong financia position means we can continue deveoping our patform, adapting it to meet changes to both distribution and reguation whie fufiing cient and adviser needs. Everything in one pace The Aviva Patform is integrated with Aviva for Advisers, which means everything is accessibe in one pace, through one singe og-in. This means you be abe to manage your cients existing packaged products as we as having access to simpe, ow-cost products with onine admin functionaity. We beieve this wi hep you deiver your service proposition more quicky and efficienty. Bringing everything together in one pace shoud make it easy for you to reduce costs, not just for new cients, but, more importanty, for your existing cients. Patform benefits Manage a your cient s Aviva products in one pace. Hep reduce costs by saving time and money with quick and easy onine functionaity. 6 The Aviva Patform

7 Key eements of our proposition The Aviva Patform focuses on targeting mid-market cients. We ve designed it for cients with straightforward financia panning needs, giving you the functionaity to manage these cients investments, without them paying for features they don t need. With the Aviva Patform, you get: adviser charging options initia, ongoing and one-off investment profies and rebaancing functionaity, etting you manage cient portfoios and check suitabiity over time buk transactions to efficienty manage groups of cients asset transition service to hep you anayse your cients and identify those whose assets coud be better hed on a patform 7 The Aviva Patform

8 Heping you do business The Aviva Patform wi hep you meet your reguatory obigations and the Treating Customers Fairy guideines. Ten ways the Aviva Patform works for you Adviser charging ets you agree the cost of advice with your cients and buid it into their portfoio through fixed costs or percentage, whichever you choose. Extensive fund choice through our patform portfoios, we offer over 3,000 funds, from singe funds to specific fund preferences to mode portfoios. Re-registering we won t charge your cients to move assets on or off the patform and being a member of TeX means our re-registration process meets the eading industry standards. Straight through processing we trade eectronicay with a fund managers to minimise any potentia for error. Charging structure we operate an unbunded charging structure, which shows a patform, fund and advice charges ceary and simpy to you and your cient. Cient access your cients can og on to keep track of their investments onine and see current vauations and correspondence. Cient documents you can see a correspondence reating to your cients portfoios onine. Patform s managed portfoio service we offer you access to third party investment managers. Loca support we provide oca support to hep with aspects of your business. Switching investment funds you can do this free of charge, giving your cients the fexibiity to ater their investments as their needs change. Efficient cient management We ve designed the Aviva Patform to make it quick and cost-effective for you to hande your day-to-day business. Using the Aviva Patform s easy-to-use cient management toos, you can significanty cut the amount of time you spend on administration. With the Aviva Patform, you get: a cash account for each portfoio to hande money going in and out simpe onine switching between investments without the need for a cient s signature a number of reporting and communication toos to hep you manage your cients the abiity to create and manage bespoke investment profies to suit different cients 8 The Aviva Patform

9 Comprehensive panning toos You can compie reports on your cients, research funds, create iustrations and anayse investment performance. We aso provide a retirement panning too and portfoio anaysis too. Compete re-registration fexibiity We don t charge you to re-register your cients assets on or off the patform. Aviva is a member of the TISA Exchange (TeX). TeX is a Contract Cub with a set of agreed standards, contracts and associated service eve agreements (SLAs) for re-registrations that wi significanty reduce timescaes. The Aviva Patform offers a range of free toos to hep with your panning, both pre- and post-sae. We ve automated the process through utiising Origo transfer technoogy for our ISA, pension and investment business. The combination of TeX and Origo means we meet the eading industry standards for re-registrations. Summary of the Aviva Patform Here s a quick overview of what you and your cients need to know about the Aviva Patform: What you need to know at a gance Broad range of investment options with a range of over 3,000 funds, equities, structured products and exchange-traded funds. The Aviva Patform incudes a range of portfoios with different tax treatments to suit your cients needs. How your cients wi benefit Your cients have the investment fexibiity they need when making ong-term investment pans. Your cients can transfer assets off the patform if they need to, which means they don t incur any unnecessary tax iabiities. You can transfer cash between portfoios in ine with HMRC rues. They can choose the most suitabe portfoios for their needs. Re-registration is free of charge. You can record a your cients assets on the Aviva Patform, giving you a compete view of your cients hodings. Recording their other assets on the Aviva Patform makes it easier for you to give advice that takes account of their fu circumstances. 9 The Aviva Patform

10 Our range of funds and assets The Aviva Patform offers a wide seection of assets to choose from which incude: Over 3,000 funds from more than 110 fund managers, covering a fu range of industry sectors equities quoted on eading indices an expanding range of exchange-traded funds a range of structured products direct investments in commercia property through Suffok Life (Pension Portfoio ony). With such a diverse range at your fingertips, you can seect investments that wi suit a wide variety of cients. Whatever their attitude to risk or investment goas, you be abe to buid a portfoio to hep match their needs. Fund criteria The open-architecture nature of the Aviva Patform aows us to offer a huge choice of investment options. We work cosey with our distribution team to make sure our fund range meets the needs of advisers and cients aike. Our fund range continues to evove and we can add funds to the patform providing they meet our criteria. To be eigibe for our patform, a fund must: be priced daiy and traded in stering (GBP) pay any distributions in stering (GBP) be authorised, reguated or recognised by the UK reguator hod assets we consider eigibe for our portfoios. Our fund addition process is primariy driven by adviser demand. We review each fund request and decide which to progress based on market demand. For simpe additions, for exampe, where we have an a funds agreement in pace with the fund manager, we wi normay be abe to add the fund in a matter of days. More compex additions, for exampe, where we have no existing contract in pace, may take significanty onger. Where possibe, we make a fund avaiabe within each of the portfoios. However, this is subject to restrictions due to the tax impications of certain funds within some portfoios. We don t risk rate funds hed on the Aviva Patform. However, out of the more than 3,000 funds avaiabe, you wi find a good seection which the fund managers run within certain voatiity constraints. 10 The Aviva Patform

11 Muti-asset funds Diversification is important in investment. You can create an individua investment portfoio for each of your cients yoursef, but we do offer a range of muti-asset funds, which offer a pre-packaged route to diversification. Muti-asset funds hep you save both time and money. Researching individua funds, assets and investments can be costy and time-consuming. With muti-asset funds, the fund manager has aready carried out this work and created funds made up of diverse investments to suit different risk profies. We offer a range of muti-asset funds through the Aviva Patform, suitabe for a types of investor. Once you ve assessed your cient s appetite for risk, you can find a fund to match it. We provide access to the risk profie to aow you to assess whether the underying fund risk is appropriate for your cient. Asset ist You can find a fu ist of our funds in our Patform asset ist (LF5008a). Fund casses Our wide range of fund casses incudes: Internationa fixed interest funds Property funds UK equity funds Goba speciaist funds UK fixed interest funds Cash/money market funds Far East funds European funds Emerging market equity funds North America funds Passive funds Managed funds We offer severa IMA sectors through the Aviva Patform, such as property and UK gits. We aso offer a wide seection of fund casses, equities and exchange-traded funds. Your cients can aso hod unwrapped Aviva unit trust/oeic funds. We don t offer: non-daiy priced deaing funds (such as hedge funds) mutipe currency share casses 11 The Aviva Patform

12 Managed portfoio service Our managed portfoio service aows you to appoint discretionary investment managers to create and manage portfoios through the Aviva Patform. We can pay the discretionary investment manager directy from the cient s portfoio through the Aviva Patform. We offer third party investment manager functionaity to a advisers. Your cients invest in the managed portfoios of your choice under the contro of the investment manager you ve chosen. You wi need to check that your chosen investment manager is on the Aviva Patform. If you have a preferred discretionary investment manager who isn t on the patform, we d be happy to discuss giving them access to the system. Just get in touch with your Aviva contact to ask about this. Before we aow an investment manager access to cient information on the Aviva Patform, you must both sign an agreement about the terms and conditions under which the investment manager wi operate. We re not invoved with this process. You must aso te your cient(s) that the investment manager wi provide managed portfoio services to you and them. The cient must agree to us deducting the investment manager s charges from their portfoio. We carry out due diigence for your nominated discretionary fund manager. Once we ve done this and both you and the manager have signed an agreement, we give them access to the Aviva Patform. From then on, the discretionary investment managers can create any number of portfoios. Buying and seing investments We have a best execution poicy for buying and seing investments and wi aways try to achieve the best possibe resut for your cient under the circumstances. Here s a summary of our best execution poicy Funds For investments in funds, structured funds and structured products, we must pass the order to se or buy to the fund provider of your cient s chosen fund. The unit price is cacuated at the next vauation point after the trade has been submitted. For some funds the next avaiabe vauation point may be more than one business day after the trade is submitted. We wi send your order to se or buy to our nominated stockbroker, Chares Staney who we ve appointed to hep us get vaue for money for your cients. Our stockbroker has arrangements in pace to provide us with the best possibe resut under the circumstances at the time. Equity investments 12 The Aviva Patform

13 We monitor the effectiveness of our best execution poicy and arrangements to make sure we get the best resuts for your cients. We te you and your cients about any changes to the poicy or arrangements and outine how they affect your cients. A contract note is generated for each trade submitted on the patform. The contract note detais the purchase price, the number of units/shares traded and the date of the trade. The onine transaction history aso contains detais of any trades. Fund managers are contacted proactivey if there is any deay in setting the trade outside the service eve agreed with them. Our best execution poicy won t appy if you give us specific instructions on how to dea with an order. 13 The Aviva Patform

14 Choose the right portfoio for your cient The Aviva Patform offers three portfoios in which you can pace your cients investments. The portfoios offer different tax treatments, so you can choose the ones that best suit your cients needs and maximise their tax advantages. Investment Portfoio A wide range of equities, coective investments and structured products from a key sectors. Over 3,000 funds from over 110 managers. Chance to invest in equities isted on eading indices, structured products and in exchange-traded funds. ISA Portfoio A stocks and shares ISA with tax-efficient investment into equities and coective investments. Consoidate a existing ISAs in one convenient pace by transferring into the Aviva Patform. Pension Portfoio A sef-invested persona pension that can give your cients benefits during retirement. Offers over 3,000 funds, stocks and shares and investment trusts, pus commercia property through Suffok Life. Offers fexi-access drawdown with singe and phased drawdown options, giving your cients the abiity to take fu advantage of the pension fexibiity introduced in the 2014 budget. It aows cients to take tax-efficient pension income or to take out any amount when they want. Capped drawdown is no onger avaiabe for new cients. But if they were in capped drawdown before 6 Apri 2015 then they can sti stay in it as ong as they don t exceed GAD imits. If cients go over these imits they automaticay move into fexi-access drawdown which wi reduce their money purchase annua aowance from 40,000 to 10,000. Offers three investment eves: core, choice and fex. Your cient can enter at any eve and move between the eves as often as they want. Each eve has its own investment options and charges, so your cients ony pay for what they need when they need it. 14 The Aviva Patform

15 Investment Portfoio Investment Portfoio With our Investment Portfoio, you can offer your cients a variety of investments through the ow-cost Aviva Patform. A wide range of investment options With over 3,000 coective investment funds, equities and exchange traded funds to choose from, Investment Portfoio has something for everyone. The vaue of the investments can go down as we as up, and your cient may not get back what they invested. Cear charging Investment Portfoio has a cear and transparent charging structure. We ceary discose the cost of administration, investments and advice. This meets reguatory requirements and means your cients understand what they re paying for. Investment Portfoio charges Investment charge Portfoio vaue Aviva charge 0 399, % 400,000 and over 0.15% Efficient cient management With Investment Portfoio s easy-to-use cient management toos, you can significanty cut the amount of time you spend on administration. Here are some of the ways in which you can do this: There s a cash account to hande money going in and out. Switching between investments is quick and easy to do onine and you don t need a cient s signature. You can taior-make investment profies to suit different cients, and ater them as your cients needs change. 15 The Aviva Patform

16 The cash account The Investment Portfoio has its own cash account. This is an interest bearing cient money account hed with Nationa Westminster Bank pc that meets the reguator s cient money rues. Your cients don t have to hod a minimum amount in the portfoio cash account. However, we recommend they hod a sma proportion of their tota portfoio in cash to pay adviser and patform charges. If there is insufficient cash in the cash account the amount required is automaticay disinvested from their fund investments in proportion to their investment profie. Investments in equities and structured products are not incuded in the disinvestment process. Comprehensive panning toos Investment Portfoio offers a range of toos to hep with your panning, both pre and post-sae. You can compie reports on your cients, research funds, create iustrations and anayse investment performance. Compete re-registration fexibiity We don t charge you anything to re-register your cients assets on or off the patform. Pus, we re an active member of the TISA Exchange (TeX) and use Origo technoogy to automate our re-registration process. How your cients wi benefit With our frequenty updated range of investment options, your cients can meet their investment needs both today and in the future. Your cients can ceary see how much they re paying and what they re paying for. We won t charge your cients to transfer investments in or out of Investment Portfoio. Other providers may charge for transferring investments in or out of Investment Portfoio. 16 The Aviva Patform

17 ISA Portfoio ISA Portfoio ISA Portfoio is a ow-cost stocks and shares ISA offering your cients a wide range of investment options through the Aviva Patform. It is a fexibe ISA, aowing your cient to withdraw money and repace it within the same tax year without affecting their ISA aowance. A wide range of investment options With over 3,000 coective investment funds, equities and exchange traded funds to choose from, ISA Portfoio has something for everyone. The vaue of the investments can go down as we as up, and your cient may not get back what they invested. Cear charging ISA Portfoio has a cear and transparent charging structure. We ceary discose the cost of administration, investments and advice. This meets reguatory requirements and your cients understand what they re paying for. ISA Portfoio charges Investment charge Portfoio vaue Aviva charge 0 399, % 400,000 and over 0.15% Efficient cient management With ISA Portfoio s easy-to-use cient management toos, you can significanty cut the amount of time you spend on administration. Here are some of the ways in which you can do this: There s a cash account to hande money going in and out. Switching between investments is easy to do onine and you don t need a cient s signature. You can taior-make investment profies to suit different cients, and ater them as your cients needs change. 17 The Aviva Patform

18 The cash account The ISA Portfoio has its own cash account, where cash shoud be hed pending reinvestment. This is an interest bearing cient money account hed with Nationa Westminster Bank pc that meets the reguator s cient money rues. Your cients don t have to hod a minimum amount in the portfoio cash account. However, we recommend they hod a sma proportion of their tota portfoio in cash to pay adviser and patform charges. If there is insufficient cash in the cash account the amount required is automaticay disinvested from their fund investments in proportion to their investment profie. Investments in equities are not incuded in the disinvestment process. Comprehensive panning toos ISA Portfoio offers a range of toos to hep with your panning, both pre and post-sae. You can compie reports on your cients, research funds, create iustrations and anayse investment performance. Compete re-registration fexibiity We don t charge you anything to re-register your cients assets in or out of ISA Portfoio. Pus, we re an active member of the TISA Exchange (TeX) and use Origo technoogy to automate our re-registration process. How your cients wi benefit With our frequenty updated range of investment options, your cients can meet their investment needs both today and in the future. Your cients can ceary see how much they re paying and what they re paying for. We won t charge your cients to transfer investments in or out of ISA Portfoio. Other providers may charge for transferring investments in or out of ISA Portfoio. 18 The Aviva Patform

19 Pension Portfoio Pension Portfoio Pension Portfoio offers a ow-cost, fexibe pension through the Aviva Patform that can meet your cients evoving needs as their circumstances change. Pension Portfoio eves Pension Portfoio offers three investment eves: Core over 100 insured funds for cients with straightforward needs Choice core eve insured funds pus Over 3,000 coective investments for cients with more specific needs Fex a the choice eve investments pus more speciaist investments for cients with sophisticated needs With three eves, you and your cients can choose the one most suitabe for their needs. Each eve has its own investment options and charges, so your cient wi ony pay for the investment choices they use. You can move your cients through the eves whenever you need to, whether their needs become more compex or simper over time. This means that there s no need for you to transfer your cients from pension to pension to get a different investment choice. A wide range of investment options There are currenty over 3,000 funds on the Aviva Patform and the ist is increasing with demand. The vaue of the investments can go down as we as up, and your cient may not get back what they paid in. Cear charging Pension Portfoio has a cear and transparent charging structure. We ceary discose the cost of administration, investments and advice. This meets reguatory requirements and your cients understand what they re paying. 19 The Aviva Patform

20 Pension Portfoio charges Core charge Portfoio vaue Up to 29, % 30, , % 250, , % 400,000 and over 0.10% Insured fund charge (depends on fund seection) Choice charge Portfoio vaue Up to 29, % 30, , % 250, , % 400,000 and over 0.15% Investment fund charge (depends on fund seection) Aviva Charge 0.1% 1.75% Aviva Charge 0.1% 3.5% Fex charge Portfoio vaue Up to 29, % 30, , % 250, , % 400,000 and over 0.15% Investment fund charge (depends on fund seection) Equity trading costs Up to 15, ,001 30, Above 30, Commercia property Initia set-up fee 375 Annua administration charge Aviva Charge 0.1% 3.5% 0.12% of the net vaue taken monthy We take these charges on a tranche basis, simiar to the way in which income tax works. For exampe, if your cient invests 150,000 in the choice eve of the Pension Portfoio, they wi pay 0.40% on the first 29,999 and 0.35% on the remaining 120,001. The charges may vary. Pease read the Pension Portfoio terms and conditions to find out more about this. 20 The Aviva Patform

21 Efficient cient management With Pension Portfoio s easy-to-use cient management toos, you can significanty cut the amount of time you spend on administration. Here are some of the ways in which you can do this: There s a cash account to hande money going in and out. Switching between investments is easy to do onine and you don t need a cient s signature. You can taior-make investment profies to suit different cients, and ater them as your cients needs change. The cash account The Pension Portfoio has its own cash account. This is an interest bearing cient money account hed with Nationa Westminster Bank pc that meets the reguator s cient money rues. Your cients don t have to hod a minimum amount in the portfoio cash account. However, we recommend they hod a sma proportion of their tota portfoio in cash to pay adviser and patform charges. If there is insufficient cash in the cash account the amount required is automaticay disinvested from their fund investments in proportion to their investment profie. Investments in equities, structured products and commercia property are not incuded in the disinvestment process. Comprehensive panning toos Pension Portfoio offers a range of toos to hep with your panning, both pre and post-sae. You can compie reports on your cients, research funds, create iustrations and anayse investment performance. We aso provide a retirement panning too and portfoio anaysis too. Compete re-registration fexibiity We don t charge you anything to re-register your cients assets on or off the patform. Pus, we re supporting the TISA initiative to extend their TeX initiative to incude the transfer of pensions. How your cients wi benefit Pension Portfoio is the ony pension your cients wi ever need as it can fex to meet their changing pension needs. With three investment eves, your cients wi ony pay for the features and options they use. With our frequenty updated range of investment options, your cients can hep meet their investment needs both today and in the future. Your cients can ceary see how much they re paying and what they re paying for. Your cients won t pay any charges to transfer investments in or out of Pension Portfoio. Other providers may charge for transferring investments in or out of Pension Portfoio. 21 The Aviva Patform

22 Income drawdown Income drawdown is avaiabe to your cients through Pension Portfoio. It offers fexi-access drawdown. Within this, there are the foowing options: Phased drawdown Efficient income withdrawa we automaticay cacuate the minimum amount cients need to crystaise for each payment to take their income in a more tax-efficient way using a combination of taxabe and tax-free cash. Taxabe income cients crystaise the minimum amount needed to pay their chosen income amount. We pay their 25% tax-free cash as separate ump sums each time they crystaise some of their funds. Non-taxabe income cients use their tax-free cash to generate their chosen income amount. They invest the remaining 75% of their crystaised funds for when they need it. Singe drawdown Singe drawdown cients take 25% of their pension fund up front as tax-free cash. They invest the remaining 75% and use it to pay their chosen taxabe income amount. Your cients can aso choose how frequenty they receive their pension income, for exampe, monthy, quartery, haf-yeary and yeary. 22 The Aviva Patform

23 Benefits and risks of income drawdown Benefits It s a competey fexibe retirement option. Cients can carry on working and use income drawdown to top up their income. Cients can vary the amount of income they take to meet their needs, eg if they reduce their hours at work. In fact, from age 55, cients can take any amount from their pension fund, whenever they ike. Even a of it. Cients can choose not to take an income at a. The efficient income withdrawa option ets cients use a combination of tax-free and taxabe cash to take an income in a more tax-efficient way. Cients can choose from a seection of investment options for their funds. Because cients are not ocked in for ife, they can switch to another retirement income option, possiby an enhanced annuity if they fa i. Risks The vaue of cients pension funds can go down as we as up, and they may not get back what they paid in. The efficient income withdrawa option cacuates a more tax-efficient way to use cients funds for every income payment. Cients seect their income amount, but they may not receive the income they requested and their payments can vary from month to month. Read Why your cients income can vary with efficient income withdrawa to understand why. Your cients investments need to grow to compensate for the income they withdraw. If that doesn t happen, the income they take wi depete their pension fund. Especiay if the cient chooses to take a high eve of income. There s a risk a cient coud run out of money. There s no guarantee that annuity rates wi improve in the future, and they may fa. This means cients run the risk of getting a ower income if they wait to buy an annuity. Cients can choose to eave their remaining pension fund (crystaised or uncrystaised) to any named beneficiary. If your cient dies aged 75 or over, their beneficiaries wi need to pay tax on any benefits at their margina rate. If your cient dies before the age of 75, we wi normay pay any benefits tax free. If your cient dies hoding accumuation funds then the payment wi be assessed against their ifetime aowance. De-accumuation funds do not need to be. Their beneficiaries wi need to pay tax on any amount over the ifetime aowance or where it s not paid within two years of Aviva being tod of their death. Existing capped income drawdown cients have some contro over the amount of income they take (subject to GAD imits). There may be adverse tax impications for cients who access cash they don t reay need from their pension fund. Capita drawdown products need reguar reviews, which wi incur charges. Existing capped drawdown cients need GAD reviews every three years up to age 75 and every year afterwards. Cients may need to compete a tax return to recaim overpaid tax. Remember Cients rey on you to reguary review and adjust their income/ tax position. 23 The Aviva Patform

24 Cear charging through the Aviva Patform The Aviva Patform has a cear, transparent charging structure, with the cost of portfoios, investments and advice a ceary discosed. This meets reguatory requirements and means your cients understand what they re paying for. Putting aside money for charges We recommend cients hod a sma proportion of their tota portfoio in cash to pay adviser and patform charges. Patform charges There is no initia patform charge for the Aviva Patform, but we do take an annua management charge (the Aviva charge). The charges vary depending on the portfoio your cients invest in and the size of their fund. Fund size Pension Portfoio Investment ISA Portfoio From To Core eve Choice / Fex eves Portfoio 0 29, % 0.40% 0.25% 0.25% 30, , % 0.35% 0.25% 0.25% 250, , % 0.25% 0.25% 0.25% 400, % 0.15% 0.15% 0.15% We make these charges on a tranche basis, simiar to the way in which income tax works. So, for exampe, if your cient invests 150,000 in the choice eve of Pension Portfoio, they wi pay 0.40% on the first 29,999 and 0.35% on the remaining 120,001. The funds annua management charges range from 0.1% 3.5%, but may vary over time. Pease read the patform asset ist to find out more. 24 The Aviva Patform

25 You can find more charging information in the sections about each of our portfoios, but here are some exampes: Exampe 1: Your cient invests 150,000 in the choice eve of Pension Portfoio. They wi pay charges of 0.40% on the first 29,999 and 0.35% on the remaining 120,001. Fund size 150,000 First 29, % Tota Aviva Remaining 120, % Charge 0.36% Exampe 2: Your cient invests 725,000 in the choice eve of Pension Portfoio. They wi pay 0.40% on the first 29,999, 0.35% on the next 220,000, 0.25% on the next 150,000 and 0.15% on the remaining 325,001. Fund size 725,000 First 29, % Tota Next 220, % Aviva Next 150, % Charge Remaining 325, % 0.24% Exampe 3: Your cient invests 500,000 in the ISA Portfoio or the Investment Portfoio. They wi pay 0.25% on the first 399,999 and 0.15% on the remaining 100,001. Fund size 500,000 First 399, % Remaining 100, % Tota Aviva Charge 0.24% Exampe 4: Your cient has a fund of 950,000 and wants to spit the investment over three portfoios. They invest 50,000 in the ISA Portfoio, 250,000 in the Investment Portfoio and 650,000 in the choice eve of the Pension Portfoio. First, we use the compete baance of money on the Aviva Patform to work out the Pension Portfoio charge: Fund size 950,000 First 29, % = 120 Next 220, % = 770 Next 150, % = 375 Remaining 550, % = 825 Aviva Charge 0.322% Then, we work out the charge for the ISA Portfoio and the Investment Portfoio, which are aso based on the tota baance on the Aviva Patform: ISA Portfoio Investment Portfoio First 399, % = 1,000 Remaining 550, % = 825 First 399, % = 1,000 Remaining 550, % = 825 Aviva Charge 0.192% Then we share out the reevant charges to the Pension, ISA and Investment Portfoios: ISA Portfoio 50, % = 96 Tota charge of Investment Portfoio 250, % = 480 2,666 on 950,000 Pension Portfoio 650, % = 2,090 = 0.281% tota Aviva Charge 25 The Aviva Patform

26 Adviser charges The Aviva Patform gives you and your cient a choice of charging options. You agree both the charge and how they pay it. In each individua case, you agree your adviser charge for each portfoio with your cient. You don t have to use the same charging option for each portfoio. Charging options Initia advice charge You agree this charge with your cient. We deduct it from the payment(s) before we purchase your cient s assets Ongoing advice charge You agree a charge with your cients for the ongoing financia management of their portfoios. The vaue of any persona investment portfoio is not incuded in the cacuation of the ongoing advice charge. We deduct any ongoing advice charge from the cient s portfoio. We pay this to you monthy. If the agreed amount is a percentage of the portfoio, we base it on the daiy vaue of the portfoio when we cacuate the charge. Charges for drawdown crystaisation You can charge for managing drawdown crystaisations, taking a charge from the pan every time you carry out this function for your cient. The same rate appies to crystaised and uncrystaised funds. You can enter a drawdown initia charge when you set up the drawdown. If your cient doesn t have enough money in their cash account to cover payments or charges, we automaticay disinvest the required amount in ine with the fund investment proportions. We aways use any cash in the cash account to pay charges before taking money from the cient s investment. Fund manager charges Funds often make an initia charge to invest in the fund and aso have annua management charges. The charges are taken through changes in the unit price. We aways go for the best possibe dea for cients, which is why there is no initia charge on over 95% of the funds we offer. Fund managers wi aso take charges that wi depend on the investments chosen. These charges wi be expressed as the ongoing charge figure (OCF) or tota expense ratio (TER). These cover the charge made by the fund manager for managing the investment as we as expenses incurred by the fund. Pease note the OCF and TER are variabe and may change over time. The fund manager takes this charge directy from the unit price of the fund. Where a rebate is due, we pass 100% of the rebate back to your cients, usuay in the form of additiona units into their portfoios. Rebates for fund investments in the Investment Portfoio are paid net of basic rate tax, in ine with HMRC rues. Equity deaing charges We offer equities, exchange-traded funds and investment trusts on the Aviva Patform through our chosen stockbroker, Chares Staney. Your cient is ikey to pay equity deaing charges on these types of investments. The charges vary depending on the size of the dea, as shown in this tabe. Fund size Fat deaing charge Up to 15, ,001 30, ,001 and above 50 Transferring shares in or out costs 10 for each type or cass of share. 26 The Aviva Patform

27 Property deaing charges (Pension Portfoio ony) Your cients can invest in commercia property through Pension Portfoio (Fex eve ony) for an additiona charge. For up-to-date information about this charge, pease visit Structured product charges (Pension Portfoio and Investment Portfoio ony) The company providing the structured product wi take charges from the amount your cient invests. However, the charge wi not affect the return described in the promotiona materia for the structured product. The charges wi vary from product to product. What we don t charge for We beieve that charges shoudn t be a barrier to customer choice. To that end, with the Aviva Patform, there is: no initia patform charge no charge for switching funds no charge for re-registering assets, even if moving assets off the patform. You can t re-register some asset casses (incuding structured products and Aviva insured funds). Pus, some fund managers don t aow re-registration. In these cases, your cient may incur some costs through the sae and/or purchase of these assets. Summary of our approach to charging Here s a quick overview of what you and your cients need to know about the charges on the Aviva Patform: What you need to know at a gance Fexibe adviser charging options et you agree advice charges that suit you and your cient. Transparent charging structure separates the cost of advice, patform services and investment management. How your cients wi benefit They can ceary see what they re paying for. We won t charge them for switching or moving investments, giving them freedom to change their investment whenever they need to. Other providers may charge for transferring investments in or out. We don t charge for switching, rebaancing or re-registration. 27 The Aviva Patform

28 Supporting you every day Technoogy in the patform market has improved enormousy in recent years. Just as internet banking revoutionised the way we bank, so patforms are doing the same for the ong-term investments industry. We ve buit our patform on award-winning technoogy provided by Bravura Soutions Limited, experts in deivering first-rate patform technoogy. Working with third parties We ve fuy integrated the Aviva Patform with Iress and Inteifo, have some integration with other providers and we re working to integrate with yet more providers. This kind of integration gives you the abiity to downoad and export spreadsheets of cient data. Re-registration With the Aviva Patform, you can re-register assets both on and off the patform. We aow you to re-register most types of assets with the exception of structured products and Aviva insured funds. Some fund managers don t aow re-registrations, so your cients may have to pay charges for the sae and/or purchase of certain assets. Fund specific withdrawas You can create your own withdrawa preferences for your cients. This aows you to choose and manage how we disinvest specific funds to pay for withdrawas. As an added feature, our patform warns you if a cient s hoding in a particuar fund is too ow to pay for a withdrawa. Toos and functionaity Aongside the investment options avaiabe through the Aviva Patform, we offer an expanding range of patform toos to hep you meet your cients investment needs. Mode portfoios With the Aviva Patform, you can set up and maintain your own mode portfoios onine, incuding rebaancing and switching faciities. 28 The Aviva Patform

29 Here s what you get with the Aviva Patform: Fund centre offers detaied fund data, breaking portfoio information down to individua fund eve. Fund research gives a detaied view of a the funds on the patform, fund performance and third party fund ratings. Fund charting ets you compare the performance of funds, sectors and indices. Fund documentation fund factsheets, reports, accounts and KIIDs. Funds Investment profies ets you create and manage a range of mode portfoios easiy and efficienty. Current onine portfoio vauations. Iustrations for accumuation, income drawdown, estimated maturity vaues, and tax-efficient singe and phased income drawdown. Rebaancing to restore the asset aocation over different frequencies. Buk trading and buk rebaancing ets you manage groups of cients efficienty. Transaction information shows a transactions affecting a cient s portfoios. Functionaity Lifetime aowance usage a report showing how much of their aowance a post-retirement cient has used in the current year. Reports Summary view of issued warnings a report detaiing the income warnings sent to cients. Avaiabe taxabe income a report showing cients avaiabe taxabe income in the current year. Cient review date a report showing the next Government Actuaries Department income review date for post-retirement cients. Cient reporting a report based on portfoios, vauations (incuding the start and end vaue and the reasons for any changes) and asset aocation in reation to a seected profie. The cient portfoio anaysis too gives you a compete view of each individua cient s investments across a portfoios, showing geographica Portfoio panning toos spread, asset type, top hodings, severa performance breakdowns, pus downoadabe graphs. The retirement panning too modes the probabe outcomes of retirement strategies you re panning and discussing with your cients, heping create tax-efficient withdrawa strategies. The capita gains too heps advisers efficienty and effectivey manage their cient s capita gains tax panning. It reports on both reaised and unreaised gains incorporating rebaancing, reguar payments and withdrawas and income reinvestments in its cacuations. Tak to us about white abe opportunities. We don t currenty offer toos to support asset aocation creation. However, our investment profie functionaity ets you input and manage your chosen cient funds onine. A range of downoadabe exce-based onine reports. Cient information A fu suite of onine product iterature. Abiity for cients to see vauations and track investments onine. 29 The Aviva Patform

30 Marketing support On Aviva for Advisers, you find a marketing tookit with hepfu tips on running marketing campaigns to cients. The tookit gives information and support on: making a website work creating pubicity working with a web deveoper direct marketing search engine optimisation writing a good prospecting etter generating referras creating a business network. seminars We aso offer a range of cient information on the Aviva Patform to hep you run cient marketing campaigns, incuding: a range of downoadabe exce based onine reports a fu suite of onine iterature guides. Accessing the Aviva Patform You can access the Aviva Patform between 8am and 10pm, 7 days a week. There wi be occasions when we need to take the patform offine for maintenance or upgrades. However, we et you know about this in advance and schedue it outside business hours. Onine support We wi hep you set up the Aviva Patform and turn it into an essentia part of your business. We offer: a demonstration of how to use the patform functionaity user guides so you can earn at your own pace Account support To hep you, we have: weath deveopment managers to hep you in using the patform for your day-to-day business patform adoption managers to hep you impement the Aviva Patform and offer training to get the most out of the patform. access to reference materia an onine patform product ibrary with a host of documentation on our products a fund centre with information on a our funds, incuding fund group profies, performance data and saes materia. 30 The Aviva Patform

31 Hepdesk support team We have a patform hepdesk support team to hep you with queries and resove any technica issues you may have. Our teephone team offers high quaity, efficient guidance and navigationa support. We continuay ook to buid on our team s knowedge and keep the team members up to date with a number of earning and refresher training activities. Contact our hepdesk support team patformservices@aviva.co.uk Tax and trust speciaists If you need hep with tax and trust queries, you can get in touch with one of our financia panning managers through your usua Aviva contact. Our financia panning managers put together buetins on the atest deveopments and news from Aviva and the industry as a whoe. You can find these on Aviva for Advisers. Tax and trusts speciaists If you need hep with technica queries on tax and trusts, get in touch with our speciaists: ptech@aviva.co.uk Pension Technica hepdesk We aso have a pension technica hepdesk to hep you with any queries you have about pensions egisation: ptech@aviva.co.uk Straightforward processing We trade eectronicay with a the fund managers on the Aviva Patform, which removes any potentia for error. We beieve that it s essentia to use straightforward processing to deiver the most efficient, accurate service possibe to cients. You can transact new business and top up existing investments onine. Once you ve competed the onine appication, you need to send us a decaration signed by the cient to confirm your agreed adviser charge and how you re going to serve the product. You can switch funds on the patform. You can do this onine under your individua cient agreement. This ets you react to market changes and proactivey manage your cient portfoios. If the cient needs to change their persona detais, they can compete a paper form, sign it and send it to us. Aternativey, they can ca us and go through data protection checks. 31 The Aviva Patform

32 Managing risk and reguation We tak to the Financia Conduct Authority every six months through the cose and continuous regime. The Financia Services Authority (now repaced by the Financia Conduct Authority) carried out its most recent ARROW (reguatory risk-based operationa framework) in ate 2011 and eary We re open to enquiries and visits from the reguator at any time. We are aso audited every year by our externa auditors, who provide an independent report to the reguator on cient money and assets every year. Heping you with audit trais The Aviva Patform gives you comprehensive information to hep you keep cear audit trais. For exampe, the patform gives you: Onine portfoio review functionaity heps you assess how your cient portfoios have performed over time An adviser charge agreement your cients must sign this as part of the cient decaration Cear transaction histories and onine vauations ets you record a activity on your cient accounts Six-monthy statements copies for you and your cients to show how their investments have performed in the ast six months Archived investment profies gives you a compiance record Tax vouchers and statutory money purchase iustrations heps meet reguatory patform requirements. As part of our reguatory requirements the Aviva Patform issues tax vouchers and Statutory Money Purchase Iustrations. 32 The Aviva Patform

33 Investment toos With the Aviva Patform, you get a suite of investment toos to hep you carry out your day-to-day tasks. A our toos are free to use and wi hep you meet your compiance needs. Our toos incude: an iustration too ets you discose both patform and adviser charges. an investment profie too ets you create mode portfoios with cear audit trais and a range of rebaancing functionaity to meet the needs of your cients a fund research too ets you see detais of a the funds on the patform, fund performance and third party fund ratings fund charting ets you compare the performance of funds, sectors and indices a retirement panning too shows you the probabe outcomes of the retirement strategies you re panning and discussing with your cients a range of onine reports incuding cient vauations, transaction histories and advice fee payments, these give you a fu view of how your cients investments are performing. Cean share casses As dictated by the Financia Conduct Authority, we pass rebates from fund mangers to cients in the form of unit rebates or cean share casses. We ve aways been abe to support cean share casses because we have never reied on retaining any eement of the fund manager rebates to contribute towards our income as a patform provider. We beieve the industry wi gravitate towards cean share casses because: they are simper and cheaper to administrate than unit rebates the adviser and cient can see the true cost of the investment Income tax is payabe on any unit rebates received on the Investment Portfoio, so they are ess attractive to cients. We have a fund range of over 3,000, 95% of which are cean share cass funds. 33 The Aviva Patform

34 Financia protection for your cients The Financia Services Compensation Scheme (FSCS) appies to the money your cients hod on the Aviva Patform. Each cient wi normay be abe to caim under the investment section of the FSCS if they suffer financia oss because Aviva Wrap UK Ltd or Aviva Pension Trustees become insovent. Investment Cash Account (a UK deposit account) Pension Portfoio (a eves) ISA Portfoio Investment Portfoio Insured fund range Pension Portfoio (Core Leve / Fex and Choice) Coective investments Pension Portfoio (Choice and Fex eves) ISA Portfoio Investment Portfoio Financia Services Compensation Scheme imit The money is hed within a cient money account. In respect of the Pension Portfoio, the Trustee is normay entited to caim up to 75,000 on behaf of each cient. In respect of the ISA Portfoio and Investment Portfoio, Aviva Wrap UK Ltd is normay entited to caim up to 75,000 on behaf of each cient. This imit wi aso take into account any other accounts your cient hods with that institution. We currenty use Nationa Westminster Bank pc as the provider of the cash account on the Aviva Patform athough this may change from time to time. These funds are provided under a ong-term contract of insurance. The Trustee wi be eigibe to caim compensation under the FSCS on behaf of your cient shoud Aviva Life & Pensions UK Limited become unabe to meet its caims. FSCS currenty provides cover at 90% of the poicy vaue without imit. If your cient chooses one of our insured funds which invests in another coective investment fund (incuding Aviva Investors) or one that invests in a fund run by another insurer, the Trustee wi not be eigibe to make a caim under the FSCS shoud that third party be unabe to meet its obigations. In this situation, the vaue of the units wi depend upon the amount that we can recover from that third party. It s our view it s highy unikey the insovency of an individua fund manager of a UK coective investment scheme (unit trust or OEIC) woud trigger an FSCS caim. The structure of a coective investment scheme means the fund assets are hed by a trustee for unit trusts or a depositary for OEICS. The fund assets wi be hed in a ring-fenced account which neither the fund manager nor their creditors shoud be abe to access. Within the Pension Portfoio, coective investments are hed by the Trustee directy for the members who have a beneficia interest. Within the ISA Portfoio and the Investment Portfoio coective investments are hed in an Aviva Nominee account under the name of an Aviva company that does not undertake any other trading activity. Shoud the individua fund manager become unabe or unikey to be abe to meet its caims, the Trustee; or Aviva Wrap UK Ltd or its Nominee; wi be eigibe to caim compensation under the FSCS athough this wi be restricted to 100% of the first 50,000 hed per person per fund manager. It s our view it s highy unikey the insovency of an individua fund manger of a UK coective investment scheme (unit trust or OEIC) woud trigger an FSCS caim. The structure of a coective investment scheme means the fund assets are hed by a trustee for unit trusts or a depositary for OEICS. The fund assets wi be hed in a ring-fenced account which neither the fund manager nor their creditors shoud be abe to access. 34 The Aviva Patform

35 Equity trading, investment trusts and exchangetraded funds Pension Portfoio (Fex eve) ISA Portfoio Investment Portfoio Structured products Pension Portfoio (Fex Leve) Investment Portfoio We use a stockbroking partner to trade and hod equities, exchange traded funds and investment trusts hed by your cients within Aviva portfoios. Our partner Chares Staney & Co Limited uses a nominee account (Rock Nominees) to hod the assets. In respect of the Pension Portfoio the Trustees; and in respect of the ISA Portfoio and the Investment Portfoio, Aviva Wrap UK Ltd; shoud be abe to make a caim under the FSCS shoud the stockbroker be unabe to return the assets for any reason. The protection provided woud be 100% of the first 50,000 per person per stockbroking firm. We make certain structured products avaiabe through our portfoios. Aviva purchases the structured product on behaf of the cient. If the issuer of the securities is unabe to meet its caims, it is highy unikey that your cient woud be covered by the FSCS. If however the Aviva company which makes the product avaiabe is unabe or unikey to be abe to meet its obigations, then there shoud be a caim under the FSCS providing the issuer of the securities is abe to meet its caims. For the Pension Portfoio the cover is currenty 90% of the poicy vaue without imit. For the Investment Portfoio the cover is currenty up to 100% of the first 50,000 per person. Commercia property Pension Portfoio (Fex eve) The structure of our arrangement with Suffok Life is that the commercia property is hed within Suffok Life s ong-term insurance funds. In our view, the Trustee wi be eigibe to caim compensation on behaf of your cient shoud Suffok Life become unabe or unikey to be abe to meet its caims and there is a vaid caim under the compensation scheme. The Trustee shoud be eigibe to caim 90% of the poicy s fund vaue at that time on behaf of members. If the overa caim is successfu, then your cient shoud get back 90% of the vaue of the caim. 35 The Aviva Patform

36 36 The Aviva Patform J8127_LF01044_0416.indd 36 31/03/16 11:45 pm