J.P. Morgan Self Invested Personal Pension (SIPP) & SIPP Drawdown

Transcription

1 Key Features and Terms and Conditions J.P. Morgan Self Invested Personal Pension (SIPP) & SIPP Drawdown Effective from 6 April 2015 For J.P. Morgan WealthManager + Account holders

2 TABLE OF CONTENTS 3 KEY FEATURES 1 - J.P. Morgan SIPP 4 KEY FEATURES Questions and answers 9 12 KEY FEATURES 2 - J.P. Morgan SIPP - Drawdown Pension - Available to Existing J.P. Morgan SIPP Drawdown Clients Only KEY FEATURES Charges Schedule 15 TERMS AND CONDITIONS Part A - J.P. Morgan WealthManager + General Terms and Conditions 24 TERMS AND CONDITIONS Part B - J.P. Morgan Self Invested Personal Pension (SIPP) Specific Conditions 29 TERMS AND CONDITIONS Annex 1 - Data Privacy Policy 30 TERMS AND CONDITIONS Annex 2 - Order Execution Policy GETTING IN TOUCH + Visit our website + Call us on or Our UK-based Investor Service team is available Monday to Friday, 9am to 5.30pm. Our fax number is Write to us J.P. Morgan Asset Management Client Administration Centre 60 Victoria Embankment London EC4Y 0JP All our application forms are available to download online at or you can telephone us to request a copy. We cannot accept instructions from anyone else on your behalf except where permitted and all letters and fax instructions must include your account number and be signed. Telephone calls may be recorded for training and monitoring purposes. 2 KEY FEATURES

3 Key Features The Financial Conduct Authority is a financial services regulator. It requires us, J.P. Morgan Trustee & Administration Services Limited, to give you this important information to help you decide whether our J.P. Morgan Asset Management Self Invested Personal Pension ( J.P. Morgan SIPP ) and/or our J.P. Morgan Asset Management SIPP Drawdown Pension ( J.P. Morgan SIPP Drawdown ) is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. If you have any questions please contact us using the details on page 2 of this document; or alternatively you may wish to speak to your financial adviser. 1. J.P. Morgan SIPP Its aims To provide a tax efficient way to save for your retirement. See What about tax? on page 6 for more information. In respect of the J.P. Morgan SIPP Drawdown, to allow to you to take an income from your pension fund, (known as a drawdown pension) while remaining invested. Please note the J.P. Morgan SIPP Drawdown is only available to existing J.P. Morgan SIPP Drawdown clients and who are already in drawdown prior to 5 April To provide you with the flexibility to choose whether and when to buy a guaranteed pension (known as an annuity). Please note in order to make withdrawals and/or take advantage of the below pension options, you will need to find an alternative pension provider who will be able to provide this service for you. Your commitment You should satisfy yourself that you understand the features and risks of the J.P. Morgan SIPP, so that you can decide whether it is likely to meet your investment objectives. To make a contribution or transfer payment, or have your employer or other third party make a contribution on your behalf. You may contribute whenever you wish, as long as you remain eligible to do so. See Who can invest? on page 4 for more information. You must satisfy our minimum investment requirements. See What are the minimum investment levels? on page 5 for more information. Normally to wait until you are 55 before taking your benefits. See When can I take my benefits? on page 7 for more information. From time to time to review the payments you make, the investments within your pension plan and the amount of any drawdown pension with your financial adviser to ensure your J.P. Morgan SIPP continues to meet your needs and, in the case of drawdown pension, complies with the relevant HMRC limits and review requirements. See Do I need to have a financial adviser on page 4 for more information. Risks When you open your J.P. Morgan SIPP If you are transferring from another pension scheme, there is no guarantee that the benefits we will pay will be greater than the benefits you are giving up. See Can I transfer in benefits from another pension plan? on page 5 for more information. Stakeholder pensions are generally available and could meet your needs as well as a J.P. Morgan SIPP. Please note we do not offer a stakeholder pension. If you change your mind and cancel your J.P. Morgan SIPP, you may get back less than you paid in. See Can I change my mind? on page 5 for more information. The tax advantages of investing in a SIPP depend on your current circumstances, which may change in the future. The government may change the way SIPPs and investments are taxed, which may be less favourable to you. If you exceed the contribution limits you may incur a tax penalty. Our charges may change in the future which may reduce your pension fund. Investments The value of your investment and the income from it is not guaranteed and can fall as well as rise. Past performance is not a guide to future returns and when you sell your investments you may get back less than you originally invested. Taking an income (Drawdown Pension) (available to existing J.P. Morgan SIPP Drawdown clients only and who are already in drawdown prior to 5 April 2015) See page 9 for details of the risks involved with taking a Drawdown Pension. Buying a pension (annuity) The value of your pension may be lower than shown on your illustration, for example if: - Investment performance is lower than expected. - The cost of buying an annuity is higher than illustrated, for example interest rates have fallen. - You stop or reduce your contributions. - Tax rules and legislation change. - You take a pension earlier than the age you ask us to use in our illustration. - You decide to take a level of income higher than we have illustrated. KEY FEATURES 3

4 Questions and answers What is the J.P. Morgan WealthManager + Account? The J.P. Morgan WealthManager+ Account (your Account) allows you to invest online, by postal application and over the telephone. We also provide you with education pieces to help you understand your financial goals. You can visit our website or contact us for more information. What is the J.P. Morgan SIPP? The J.P. Morgan SIPP is a pension plan which allows you to save for your retirement in a tax efficient way. You can make your own investment decisions and decide how and when you take your benefits. When you open your pension plan you will become a member of the J.P. Morgan Self Invested Personal Pension Scheme (the scheme ). The scheme was established by J.P. Morgan Trustee & Administration Services Limited, which also acts as the scheme trustee and scheme administrator. See About us and compensation on page 10 for more information about J.P. Morgan Trustee & Administration Services Limited. From 6 April 2015, the J.P. Morgan SIPP will be an accumulation only arrangement. There will no longer be an option to withdraw any lump sum payments and/or income from your SIPP. We will, however, continue to administer the J.P. Morgan SIPP Drawdown offering if you set up the drawdown option before 5 April If you wish to take advantage of the new options for pensions, you will therefore need to find an alternative pension provider. In this event, we strongly recommend that you consult a professional financial adviser. Is this a stakeholder pension? No. Where a stakeholder pension is available it may meet your needs as well as this plan. Your financial adviser will be able to advise you which pension plan is better for you. What is the J.P. Morgan WealthManager + Cash Account? When you open your Account we will automatically open a Cash Account for you. You can use your Cash Account to hold money pending investment into your plan. Please note that the Cash Account is not a bank account. Who can invest? The J.P. Morgan SIPP is available to individuals who are aged 18 or over and are a UK resident. You can also open a J.P. Morgan SIPP for a child by completing a legal guardian declaration form. We will treat you as if you were the member of the scheme until the child is age 18 and you will be responsible for the operation of the plan, including ensuring that the contribution limits are not exceeded. You must also not be a US person. You can find an explanation of what a UK resident and a US person is in our terms and conditions. Do I need to have a financial adviser? No. You do not need to have a financial adviser to open an Account. However we will always carry out your instructions to buy and sell investments on an execution-only basis, and we will not assess the appropriateness or suitability of any investment. If you have any doubts about whether an investment is suitable for you, you should speak to a financial adviser. You can find one in your area by going to If you have a financial adviser they can have online access to view your Account including all the relevant documents within your personal document library. Please note we are unable to take instructions from your financial adviser in relation to your Account or facilitate the payment of any fee you have agreed to pay them from your Account. How much can be paid into my J.P. Morgan SIPP? There is no limit to how much can be paid into to your pension plans. However HMRC has set a limit on how much tax relief you can receive on those contributions. Provided you are a relevant UK individual, you will receive tax relief on personal contributions that do not exceed the greater of: The basic amount of 3,600 gross, regardless of your earnings (or if you have no earnings); or Your relevant UK earnings for the tax year. Please note: The above limits apply to all contributions made by you and any third party, excluding your employer, to all your registered pension schemes. Employer contributions are not subject to the limites above, but they are subject to the annual allowance limit (please see below).lif all contributions made by you and any third party, including your employer, to your registered pension schemes in any tax year exceed the annual allowance you may have to pay a tax charge. See What about tax? on page 6 for more information on the annual allowance. Relevant UK earnings are your taxable annual income including any bonuses, commission, or benefits in kind that you receive from your employment, or self employment. You re a relevant UK individual in any one tax year if: You are resident in the UK for tax purposes, or You have relevant UK earnings, or You were a UK resident sometime in the previous five years and when you joined the scheme, or You have, or your spouse or civil partner has, earnings from overseas Crown employment subject to UK tax. Please note we accept payments into your SIPP in pounds sterling only. How do my contributions receive tax relief? You and any third party (excluding your employer) should make contributions to your SIPP after deducting an amount equal to basic rate tax. We will then add an amount equal to the tax deducted to the contribution and invest this into your plan. The tax amount added is then reclaimed by us from HMRC. For example, if you want to make a contribution of 100, you pay only 80. We add the 20 deducted and invest 100 into your plan. We then reclaim 20 from HMRC. If you are a higher rate or additional rate taxpayer, you can reclaim any further tax relief entitlement though your tax return. See What about tax? on page 6 for more information. What investments are available? You can invest in the following investments: J.P. Morgan Investment Trusts J.P. Morgan Open Ended Investment Companies (OEICs) Shares in the 100 biggest companies on the London Stock Exchange - excluding non-jp Morgan investment trusts ('FTSE TM 100 Equities') (available to existing holders only). What are investment trusts and OEICs? Investment trusts An investment trust is a public company, listed on a stock exchange that invests in other companies to make money for its shareholders. You should 4 KEY FEATURES

5 refer to the relevant J.P. Morgan Investment Trust profile or report and accounts before investing. OEICs OEICs are funds which have the structure of a company and use the pooled money of their shareholders to invest in a range of investments which are set out in each fund s objectives. You should refer to the fund s Key Investor Information Document (KIID) and prospectus for more information. What are the minimum investment levels? The minimum lump sum you can invest is 500 per investment. The minimum you can invest to top up an existing investment is 100. The minimum regular savings contribution is 50 per investment. The minimum balance permitted in your J.P. Morgan SIPP is 500. How do I invest? You can invest either a lump sum or make regular investments, or a combination of both. Lump sum investing You can make lump sum investments: Online by debit card, direct debit or cheque; or By post. Simply complete an application form and return it to us with your cheque; or Phone us and invest using your debit card. Regular contributions You can invest regular contributions by monthly, quarterly, half-yearly or yearly direct debit. You can set up your direct debit online or by completing and sending us an application form and a direct debit mandate. We collect direct debits on the 1st or 16th of the month (or next business day) and you must set up your regular contribution payments at least nine business days before the first contribution date. Please note that in some circumstances we may ask you to provide a cheque for the first payment. You can also: Edit the existing investment instruction for your next contribution up to three business days before the contribution date; and Edit the payment collection of, and/or cancel, your next contribution up to nine days before the next contribution date. Any changes to, or cancellation of, contributions outside the above time limits will take effect on the next scheduled contribution date. What are the charges? The different types of charges that are applicable to your Account are set out on page 12. How are charges collected? Transaction charges We take transaction charges directly from your lump sum or regular contribution which will reduce the amount invested. Annual Account charge We will take our annual Account charge (if applicable) from your SIPP cash facility. If you do not have enough cash in your SIPP cash facility we will sell investments within your Account (chosen by us) equal to the value of the charge you owe us plus an extra 5% to account for any market movements. You will also have to pay our associated transaction costs. We will normally do this in June and December. You can make sure you have enough money in your SIPP cash facility to pay our charges by topping up your cash facility online or by sending us a cheque before a charge is due. Any monies paid in counts towards your annual allowance. We will also always take any charges you owe us before we pay you the proceeds of any investment sales, or carry out any investment purchase or pay or reinvest any income, or transfer any investments to another SIPP provider. Can I change my mind? After I have subscribed to my J.P. Morgan SIPP If you open a J.P. Morgan SIPP and you change your mind, you may cancel within 30 days of receiving the cancellation notice that we will send you. We will give you your original investment back, less any fall in the value of your plan. We will also refund any charges made by us. If you decide not to cancel your plan will continue in force in accordance with the J.P. Morgan WealthManager + Terms and Conditions. After I have transferred an existing SIPP to my J.P. Morgan SIPP If you transfer an existing pension plan into your SIPP you may withdraw your application at any time during the fourteen (14) day cooling-off period, which starts the day we receive your transfer instruction. Can I transfer in benefits from another pension scheme? Yes. You can transfer an existing pension plan from other registered pensions into your SIPP either online or by completing a transfer form and returning it to us. Please note there are certain transfers-in we cannot accept and you can find details of them in our terms and conditions. We can accept transfer values in cash. We can also accept in-specie transfers (where you can transfer in investments in their current form without having to sell them) in respect of those funds and securities that are currently available for new investment within your SIPP. The minimum value we can accept into the accumulation part of your SIPP (i.e. the part of your pension plan that is still invested) is 5,000. Before you transfer-in an existing pension you should speak to your financial adviser about whether transferring-in is right for you. You should also think about such things as: Can our SIPP match the level of benefits you are giving up? If you decide to cancel the transfer you may not be able to transfer back into the original pension scheme. The lack of exposure to potential market growth while the transfer is taking place, market fluctuations and any exit changes may have an impact on the transfer value. If you are aged 75 or over and transfer in from another pension scheme you will not be able to make additional contributions to your plan. You will not receive any tax relief on the transfer. How long will a transfer-in take? Under normal circumstances a transfer-in takes around 4-6 weeks to complete. Please note that for part of this time the funds you are transferring-in will be uninvested ( out of the market ). Can I transfer my J.P. Morgan SIPP to another pension scheme? Yes. You can transfer the value of your pension fund to another UK registered pension scheme or to a qualifying recognised overseas pension scheme at any time. You can transfer your pension fund either as a cash payment or you can transfer your investments in their existing form (known KEY FEATURES 5

6 as an in specie transfer), but this depends on your new pension provider s rules. You should speak to your financial adviser about whether transferring-out is right for you. You should also bear in minding the following: The amount transferred may be less than the contributions to your plan, due to investment performance and the effect of our charges. There may be charges relating to the selling and re-registering of the underlying investments. How long will a transfer-out take? Under normal circumstances a transfer-out normally takes around 4-6 weeks to complete. Please note that for part of this time the funds you are transferring-out will be uninvested. What about tax? The information set out below is a simplified summary based on our understanding of current law and HMRC practice, which may change. Future changes in law and tax practice, or your own financial circumstances, could affect your pension or how much tax you have to pay. Your financial adviser can give you more information about your tax position. Tax relief pension payments Subject to your annual allowance (please see below), all payments (other than your employer s payments) are made net of basic rate tax and we will reclaim this amount of tax from HMRC. You must tell us within 30 days if anything happens which affects your entitlement to tax relief. If you are a higher or additional rate tax payer, you can claim your extra tax relief through your tax return. Your employer s contributions, if applicable, are received gross. Employer contributions paid into the J.P. Morgan SIPP cannot be refunded unless you cancel your SIPP within the cancellatoin period. You don t get tax relief for any money you transfer into your pension plan from another scheme. There is no tax relief available on any payments you make after age 75. Annual allowance HMRC has set a limit on how much can be paid into all your registered pensions in any one tax year by you and any third party, including your employer, on your behalf (known as the annual allowance) and on which tax relief can be granted. The annual allowance is 40,000 from 2014/15 onwards unless you choose to access your pension using flexi-access drawdown (which is not available within the J.P. Morgan SIPP but may be available from alternate providers) for more information, including how this would affect your annual allowance please see the section entitled Flexi-access drawdown, below at page 7. If the total payments that you, your employer and any third party make to all your pension plans (excluding transfer payments) exceeds the annual allowance the excess will be taxed at the highest rate you pay, effectively removing all tax relief from the excess amount. Unused annual allowance from the three previous tax years can normally be carried forward to allow you to contribute more than the annual allowance in the current tax year. However please note: You must have been a member of a UK registered pension scheme in the tax year from which any unused allowance is being carried forward. You will have no unused annual allowance to carry forward for a tax year in which your relevant UK earnings are less than the basic amount (currently 3,600). Lifetime Allowance HMRC has a lifetime allowance on the total funds in pension plans that can be used to provide benefits to you. The lifetime allowance is currently 1.25 million with effect from the 2014/15 tax year and will reduce to 1million with effect from the 2016/2017 tax year. If you registered for primary or enhanced protection with HMRC before 6 April 2009, or for fixed protection before 6 April 2012, or for fixed protection 2014 before 5 April 2014, or individual protection before 6 April 2017 then you may have a higher personal allowance or the lifetime allowance may not apply. Speak to your financial adviser for more information about this. Please note: If you have any form of protection you must provide us with your HMRC protection certificate. If you wish to rely on enhanced or fixed protection you cannot make any additional contributions to your pension fund. Your lifetime allowance does not restrict the total amount you can hold in your pension plans, but does restrict the amount that is tax privileged. This means that if you exceed the lifetime allowance and you do not have any of the forms of protection mentioned above the excess will be subject to a tax charge when you take your benefits as follows: If you take your benefits as income the excess charge is 25% on the excess in addition to income tax; or If you take your benefits as a cash sum the charge is 55% on the excess. Your pension fund will be tested against the lifetime allowance when you take benefits before age 75 and regardless of whether you have started to draw benefits, at age 75. Capital Gains Tax Any sales of investments held in your pension plan do not generally attract capital gains tax. Income tax Income you take from a drawdown pension or an annuity will be taxed as earned income under normal pay-as-you-earn (PAYE) rules. There is no income tax payable on investments held in your plan, although any dividends are received with a tax credit which cannot be reclaimed. How will I know how my investments are performing? You can keep up to date on the progress of your investments. You will also receive statements with details of your J.P. Morgan SIPP as at April and October, showing all transactions over the previous six months. You can also opt to receive our online paperless service. You can change your preference at any time. If you opt for our paperless service we will send you an whenever we put a document in your document library. However, we will continue to send some documents to you by post when required for regulatory or security reasons. Every year we will also provide you with a statutory money purchase illustration; a drawdown pension illustration; and a pension savings statement. You can also request a valuation statement, at any time, online or by contacting us. Factsheets, Key Investor Information Documents and annual reports for the J.P. Morgan OEICs and investment trusts can be viewed on our website. Prices are also quoted daily in the Financial Times and other broadsheet newspapers. 6 KEY FEATURES

7 Can I change the investments within my SIPP? Yes. You can sell your investments and invest the proceeds into any of the other investments available within the J.P. Morgan SIPP. The process and timescales involved will depend on whether you are switching investments within your SIPP or moving them from your ISA/Investment Account to your SIPP. The value of your SIPP, and the number of shares you hold, may change during the process. Switching Investments within your SIPP If you transact on your Account online, you can switch online between any investments. Depending on the investments and the timing of the transactions, this process will generally take place on the same business day or over two business days. If you transact on your Account by post or telephone, you can switch between by sending or faxing a signed written instruction with your Account number to us or by calling us. Depending on the investments and the timing of the transactions, this one or two business days following the business day we receive your instruction. Moving your investments from your Investment Account/ISA to your SIPP You can sell the investments within your ISA/Investment Account and use the cash proceeds to invest in your SIPP. Please note that switching investments may result in you being temporarily uninvested and be subject to a tax charge. What happens to the income from the investments within my pension plan? If your pension plan holds investments that make dividend or interest payments, you can choose to have these reinvested into the same investment or to have the income paid into your SIPP cash facility. You can specify your income preference when you open your SIPP online or on your application form. You can select different income preferences for each arrangement/sub-account within your SIPP and you can update these either online or by contacting us. Please note that while the income earned on the investments within your plan is tax free HMRC does not treat the income as a contribution to your plan and you will not receive tax relief. Will I receive interest on cash held in my J.P. Morgan SIPP? You can find details of the interest we pay on our website or by contacting us. When due, interest is paid monthly on your Account. How do I sell the investments within my SIPP? You can sell your investments online or you can instruct us to sell your investments by writing to us, or by phone or by fax. How long will it take before I can reinvest investment sales proceeds within my SIPP? Investment sale proceeds will be available for reinvestment within your SIPP on the settlement date, (which is usually four business days after the date you sell your investments). When can I take my benefits? You can normally choose to take benefits from your plan from age 55 and you do not have to stop working to take benefits. However in certain circumstances, such as serious ill health or where you have a protected pension age, you may be able to take your pension earlier. How can I take my benefits? Please note in order to make withdrawals and/or take advantage of the below pension options, you will need to find an alternative pension provider who will be able to provide this service for you. We will, however, continue to offer a drawdown pension service for investors holding a drawdown pension with us at 6 April If you currently hold a drawdown pension with us and you wish to convert into a flexi-access drawdown pension, you will need to find an alternative pension provider who will be able to provide this service for you. You can: buy an annuity (not available within the J.P. Morgan SIPP but this option may be available from alternate providers); take a flexi-access drawdown (not available within the J.P. Morgan SIPP but this option may be available from alternate providers); take an uncrystallised pension lump sum (not available within the J.P. Morgan SIPP but this option may be available from alternate providers); take a combination of an annuity or flexi-access pension (not available within the J.P. Morgan SIPP but this option may be available from alternate providers). Buying an annuity An annuity is a product that gives you an income as long as you live and can be purchased from any provider in the market (known as the open market option). Once you have bought an annuity you will have 30 days to change your mind, but not thereafter. You should speak to your financial adviser about whether buying an annuity is right for you. Before buying an annuity you should also bear in mind the following: The points mentioned in Buying a pension (annuity) in Risks on page 3. You may want to provide an income for your dependants when you die, or have an income that increases each year during your retirement. If so, these options will reduce the initial level of your pension. An annuity provides the certainty and security of a guaranteed income. Normally the older you are, or if you have a particular type of ailment when you purchase your annuity, the greater the level of income you will receive. Flexi-access drawdown Flexi-access Drawdown (FAD) allows individuals to take 25% as a tax free lump sum when first moving into FAD and take the remainder of the funds as taxable income with no upper limit. Taking an income under flexi-access will trigger the money purchase annual allowance (MPAA) which restricts the annual allowance from 40,000 to 10,000. Taking your tax free lump sum only will not trigger the MPAA. Uncrystallised pension lump sum Uncrystallised pension lump sum refers to a lump sum which is payable from pension assets which have not yet been used to pay a scheme pension, purchase an annuity, or designated to a FAD or other drawdown scheme. Uncrystallised funds pension lump sum allows individuals to take 25% as a tax free lump sum and the remainder will be taxable as pension income. Taking your tax free lump sum will trigger the MPAA. We recommend you seek independent financial advice regarding your investment choices and retirement options. If you do not have a financial adviser you may wish to use the Money Advice Service which can help you by providing unbiased advice and will give you guidance on how to choose an adviser if you wish to do so. KEY FEATURES 7

8 Furthermore, a new government service called Pension Wise will enable you to receive free, impartial guidance. This service will offer you tailored guidance (online, over the telephone or face to face) to explain what options you have and to help you think about how to make the best use of your pension savings. You can also receive information about the tax implications or different options and tips on getting the best deal, including how to shop around. More information on this service can be found at Take a drawdown pension A drawdown pension allows you to take your benefits from your plan while remaining invested. See the Key Features for the J.P. Morgan Adviser Solutions SIPP Drawdown Pension for details of the benefits available under a Drawdown Pension. Please note the J.P. Morgan SIPP Drawdown is only available to existing J.P. Morgan SIPP Drawdown clients and who are already in drawdown prior to 5 April What happens to my SIPP when I die? If you die under the age of 75 If you are under age 75 the value of your pension fund will normally be paid to your nominated beneficiaries as a tax- free cash sum up to the value of the remaining lifetime allowance, or if you have one, your protected personal allowance. Alternatively, if the nominated beneficiary is your spouse/civil partner/dependants they may use your pension fund to buy an annuity or another form of benefit, but any income will be subject to income tax in the normal way. If you are diagnosed with a terminal illness different rules may apply. Speak to your financial adviser for further information. If you die over the aqe of 75 If you are age 75 or over at the date of your death any cash sum payment is subject to a 45% tax charge until 5 April2016. After this date, any tax applied is subject to the nominated beneficiary s marginal tax rate. Annuity If you die after buying an annuity any death benefits payable to your spouse/civil partner/dependants depend on the terms and conditions of the annuity. 8 KEY FEATURES

9 2. J.P. Morgan SIPP - Drawdown Pension Available to Existing J.P. Morgan SIPP Drawdown Clients Only Its aims To allow you to take an income from your pension fund, while remaining invested. To provide benefits to your dependants when you die. Please note the J.P. Morgan SIPP Drawdown is only available to existing J.P. Morgan SIPP Drawdown clients and who are already in drawdown prior to 5 April 2015 Your commitment To choose a level of drawdown pension within the limits set by HM Revenue and Customs (HMRC). To regularly review the investment strategy of your drawdown pension with your financial adviser to ensure it is on track to meet your future financial needs. Risks The amount of income you can take under a drawdown pension depends on a number of factors, including how well your investments have performed and the current HMRC rules in force. See What are my drawdown pension options? below for more information. The amount of your pension fund available to use as drawdown pension may be different than shown in your illustration. Taking an income will erode the value of your pension fund, especially if investment returns are less than expected and a high level of income is taken. As your pension fund remains invested it will continue to be exposed to investment risks. You should speak to your financial adviser for more information about these. You should also bear in mind: - The value of investments and the income from them is not guaranteed and can fall as well as rise. - Past performance is not a guide to future returns. - When investments within your plan are sold, you may get back less than you originally invested. Annuity rates can change substantially over a short period of time, both up and down. So if you decide to subsequently purchase an annuity, the rates available could be less than if you had bought an annuity earlier. Questions and answers How can I take my Drawdown Pension? You can only take your J.P. Morgan SIPP Drawdown pension if you set it up prior to 5 April If you are not in drawdown then you are not permitted to go into drawdown with us. A drawdown pension lets you take an income while allowing you to keep your plan invested, so you can continue to change the investments within your plan. Your income will be taxed through the PAYE system as pension income. The maximum level of income that you can withdraw is set by the Government s Actuary Department (known as the GAD rate) and depends on your age and the returns of UK government securities. You can also choose not to take any income from your drawdown pension or make one-off lump sum withdrawals. We will recalculate the limits that apply to you every three years up to age 75 and every year after age 75. The maximum amount of income you re allowed to take out each year could reduce as a result of this recalculation. Where can I find details of charges relating to my drawdown pension? We make no additional charges over and above the charges that apply to your SIPP. Details of all charges relating to your SIPP are set out in the Charges Schedule on page 12. What about tax? The investments held in your drawdown pension are free from UK income tax and capital gains tax. Drawdown pension income payments to you are treated as earned income and taxed under the PAYE system. There is a maximum value of retirement benefits that you can receive from all your pension plans without being subject to a tax charge. This is your lifetime allowance and is currently 1.25 million for the 2014/15 tax year onwards. You can find more information about the lifetime allowance in the Key Features of the J.P. Morgan SIPP. Up until you reach age 75 we will check whether you have exceeded your lifetime allowance each time you take a drawdown pension from a part of your SIPP and also when you reach age 75 whether or not you have taken any benefits under your plan. If the lifetime allowance is exceeded there will be a tax charge, known as the lifetime allowance charge. Please see our Terms and Conditions for further information. Any cash sum death benefits payable from a drawdown pension will be tax free if you are aged under 75 up to the value of your lifetime allowance or your personal protected allowance (if applicable). If you are aged over 75, this will be taxed at 45% up until 5 April This will then be taxed at your nominated beneficiary s marginal tax rate. This is normally paid free of inheritance tax. The tax treatment and tax benefits of your drawdown pension outlined in this document are based on our understanding of current tax law and may be subject to change without notice. Please speak to your financial adviser if you have any further questions about tax. When can I buy an annuity? You can buy an annuity at any time from age 55 and whether or not you are taking a drawdown pension from your plan. You can find more information about annuities in the Key Features of the J.P Morgan SIPP, or you can speak to your financial adviser. How do I know how the investments within my drawdown pension are performing? If you manage your drawdown pension online you can view your investments online together with all the other investment documentation and statements we make available in the online document library. We will also send you a statement each October and April showing all the transactions for the previous six months. We will also send you an annual drawdown illustration and write to you every 3 years to age 75 and annually after age 75, with details of any changes to the maximum income limit set by HMRC. KEY FEATURES 9

10 Can I make extra contributions to my J.P. Morgan SIPP - Drawdown Pension? No. You cannot make additional contributions into your J.P. Morgan SIPP Drawdown Pension. However, you can continue to make contributions into your SIPP. Please note that any contributions made after age 75 are not entitled to tax relief. If your pension plan is protected against the lifetime allowance limit, making extra contributions will result in the loss of this protection. Can I transfer an existing SIPP drawdown pension into my J.P. Morgan SIPP - Drawdown Pension? No. Any drawdown accounts which are transferred in from other providers exist as a separate SIPP arrangement within your WealthManager+ account. As of 6 April 2015 income drawdown is no longer a retirement option and we therefore cannot service these additional arrangements, or accept a transfer in of a drawdown account. What happens to my J.P. Morgan SIPP - Drawdown Pension when I die? If you die while taking income from your pension fund, your spouse/civil partner/dependants can: Buy an annuity. Continue with taking an income from the pension in the form of the new flexible retirement options with an alternative provider. Together with any other nominated beneficiaries, take the remaining pension fund as a cash sum, tax free under the age of 75. If you have no surviving beneficiaries or other nominated beneficiaries we will pay any remaining pension fund as a cash sum, tax free under 75. Can I transfer my drawdown pension to another pension plan? Subject to any conditions of the new pension provider you can transfer all of the drawdown pensions within your SIPP to another UK registered pension scheme or Qualifying Recognised Overseas Pension Scheme (QROPS). A QROPS is a pension scheme based outside the UK to which HMRC will allow you to transfer assets without imposing a tax charge. The transfer can be in cash or you can transfer the investments in their current form (in-specie), but this will depend on your new pension provider s rules. We will always make the transfer to the trustee or scheme administrator of your new plan. 10 KEY FEATURES

11 Other information about the SIPP and SIPP Drawdown Pension How to contact us Our contact details are set out on page 2. How to complain We are committed to providing you with a first class service. If anything does go wrong, we try to put it right quickly and efficiently. If we cannot resolve a problem immediately, we will contact you to tell you what we are doing about it. If you wish to complain about any aspect of our service, please contact us using any of the details set out on page 2. If we do not deal with your complaint to your satisfaction, you may refer it to: Financial Ombudsman Service Exchange Tower London E14 9SR Telephone: [email protected] About us and compensation J.P. Morgan Trustee & Administration Services Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Register under number Your J.P. Morgan SIPP and SIPP Drawdown Pension are covered by the Financial Services Compensation Scheme. If we cannot meet our obligations to you, you may be entitled to compensation from the scheme. The level of compensation will depend on the type of business and the circumstances of your claim. Most types of investment business are covered up to a maximum of 50,000. Further details are available from: Financial Services Compensation Scheme 10th Floor Beaufort House 15 St Botolph Street London EC3A 7QU This does not prejudice your right to take legal proceedings. A summary of our complaints process is available on request. Terms and conditions This Key Features Document provides a summary of your J.P. Morgan SIPP and SIPP Drawdown Pension. It does not contain all the definitions, exclusions, and terms and conditions relating to them. These are set out in the J.P. Morgan WealthManager + Terms and Conditions. Law and language Your Account is governed by the law of England and Wales and any matters arising under them will be subject to the exclusive jurisdiction of the courts of England and Wales. The J.P. Morgan WealthManager + Terms and Conditions are in English as will be all future communication between us. KEY FEATURES 11

12 Charges Schedule The charges you pay depend on the products you have and the investments you hold within them. The following charges apply: Annual Account Charge We charge an Annual Account Charge for holding J.P. Morgan Investment Trusts within your J.P. Morgan ISA as follows: Amount Minimum Maximum 0.25% of value of investment 2 per month 10 per month The maximum total Annual Account Charge you will pay is therefore 120 per annum. Transaction charges The following charges apply when you place instructions on J.P. Morgan Investment Trusts: Charge Amount Applies to Brokerage charge * 10 per individual investment Buy and sell UK Stamp Duty Reserve Tax 0.5% value of investments Buy only Panel of Takeover and Mergers (PTM) Levy 1 per investment purchase if greater than 10,000 Buy only * We will not charge a brokerage fee when you buy a J.P. Morgan Investment Trust as part of a switch within a product; or if you make regular contributions or dividend reinvestments into J.P. Morgan Investment Trusts. Please note that other taxes and costs may exist that are not paid via us or imposed by us. Additional information We do not charge you for: - Holding J.P. Morgan OEICs or cash within your account; - Holding J.P. Morgan Investment Trusts within your J.P. Morgan Investment Account - Buying or selling J.P. Morgan OEICs; - Sending us cash; or - Transferring investments to us or from us to another provider. Please note that other taxes and costs may exist that are not paid via us or imposed by us. You can find details of how we collect our charges in clause 20 on page 21 of the J.P. Morgan WealthManager + Terms and Conditions.. 12 KEY FEATURES

13 TABLE OF CONTENTS J.P. MORGAN WEALTHMANAGER + ACCOUNT TERMS AND CONDITIONS (INCLUDING SIPP SPECIFIC CONDITIONS) 15 PART A J.P. MORGAN WEALTHMANAGER + GENERAL TERMS AND CONDITIONS 1. Introduction 2. Reading our terms and conditions 3. Anti-Money Laundering and Identity Verification 4. Opening your Account Nominated Bank Account 6. Joint Accounts 7. Your right to change your mind 8. Investing into your Account 9. How we deal with your cash 10. Giving us instructions Buying and selling investments ( dealing Instructions ) Dividends and distributions 13. Withdrawals and payments to third parties 14. Keeping you informed 15. Shareholder information, meetings and voting 16. Corporate Actions Protecting your investments and cash 18. Your responsibilities in respect of your investments 19. Online access Our charges 21. Liability and risk 22. Protecting your personal information 23. Communications Complaints 25. Termination and payments to you on the closure of your Account 26. In the event of your death TERMS AND CONDITIONS 13

14 Third party claims 28. Changing or replacing our terms and conditions 29. Events outside our reasonable control 30. Conflicts of interest 31. The Financial Services Compensation Scheme Governing Law 33. General provisions 24 PART B J.P. MORGAN SELF INVESTED PERSONAL PENSION (SIPP) SPECIFIC CONDITIONS 29 Annex 1 - Data Privacy Policy 30 Annex 2 - Order Execution Policy 14 TERMS AND CONDITIONS

15 Part A - J.P. Morgan WealthManager + General Terms and Conditions 1 Introduction 1.1 The J.P. Morgan WealthManager + Terms and Conditions are made up of the general terms and conditions (the General Terms and Conditions) which apply to all our products and additional specific conditions which apply to your particular products. Our terms and conditions, the application forms you complete and our Key Features Documents together make up your agreement with J.P. Morgan Trustee & Administration Services Limited (our, us and we in these terms and conditions) for the services it provides to you. Please read all these documents carefully because we will rely on them in all our dealings with you and then keep them safe for future reference. Please contact us if there is anything you don t understand. You can find our contact details on page We will treat you as a retail client which means you will have the highest level of protection under the rules made by the Financial Conduct Authority (the FCA Rules). When we refer to the FCA and the FCA Rules we also mean its successor regulator and the rules it may make to regulate our business. 1.3 In our terms and conditions whenever we are required to exercise our discretion, make a decision or ask you for information, we will act reasonably and in a way that treats you and our other clients fairly. 2 Reading our terms and conditions 2.1 Some words and phrases have a technical meaning. They appear in bold when first used and if the meaning is not obvious, we provide a separate explanation of what they mean. 2.2 Please also bear in mind the following when reading our terms and conditions: (a) Whenever we refer to any particular legislation, we also mean any amendment or replacement to it and any or other legislation, orders or provisions made under it. (b) Whenever we use words and expressions like including, for example, in particular, such as we use them by way of illustration or emphasis only, and they do not limit the general meaning of any preceding wording. 3 Anti-Money Laundering and Identity Verification 3.1 As a company conducting investment business we are required to comply with all applicable money laundering requirements, and in particular the Money Laundering Regulations 2007 (the Regulations ). Our responsibility for compliance with the Regulations, including but not limited to, verifying the identity and address of our investors, is based on the guidance issued by the Joint Money Laundering Steering Group, as amended from time to time. 3.2 Should we need to verify your identity we may use a reference agency (this should not affect your credit rating) and may need to contact you to obtain further information and/or documentation about you, which may result in a delay in the processing of your instructions or in making any payments to you. Until satisfactory proof of identity is provided, we reserve the right to refuse to process your instructions or make any payment to you. Any cash will be held in a client money account. We will not be held responsible for any losses caused by any delay in implementing an accepted application while establishing your identity, unless such delay is caused by our negligence. 3.3 Payments to third parties will only be made at our discretion. Evidence of identity of such third parties must be provided with the sale instruction. Normally we only make third party payments to personal or legal representatives into an appropriate bank account. Evidence of identity will need to be provided in such format that we may reasonably require. Until satisfactory proof of identity is provided of such third parties, we reserve the right to refuse to process any instruction that we have been given. or make any payment. 3.4 If you change address, we reserve the right to request original or certified identification documents that verify your new address details as well as your identity, as appropriate. 3.5 To prevent financial crime, your details may be passed to governmental, regulatory or other bodies as required by law. 4 Opening your Account Our eligibility requirements 4.1 To open your J.P. Morgan WealthManager + Account (your Account) you must apply for one or more of the products available. Our products are only available to individuals who are aged eighteen (18) (subject to clause 4.3 below) and over and who are UK residents. The UK is made up of England, Wales, Scotland and Northern Ireland, but not the Isle of Man or the Channel Islands. UK residents are individuals who are resident in the UK for tax purposes or if they are not resident, they perform duties as crown employees serving overseas, or are married to, or in a civil partnership with, a person who performs such duties. 4.2 Due to regulatory and tax complexities we cannot accept applications from non-uk Residents or US Persons. Please contact us if you think you may be a US Person. A US Person is an individual person who is a US citizen or a US tax resident of the United States. 4.3 You can open a Junior ISA for a child under eighteen (18) and if you are between sixteen (16) and eighteen (18) you can open a Junior ISA in your own name. Please see the Junior ISA Specific Conditions for more information. 4.4 You can open an Investment Account and designate it to be for the benefit of a child. You will remain the beneficial owner of all the assets within the Investment Account and will also be responsible to us for ensuring the Account is operated in accordance with our terms and conditions. If you move abroad or become a US Person 4.5 You must notify us as soon as reasonably possible if you move abroad or become a US Person. Please note that in such situations we may require you to provide us with such documentation as we may reasonably require. 4.6 If you do move abroad or become a US Person we will no longer accept any further investments into your products. Furthermore, if, after giving you thirty (30) days notice, you continue to hold investments in your products we may sell or transfer to another provider the investments and close your Account. You should also be aware that you may not be able to switch between investments and may be restricted as to the type of investments you can continue to hold within your Account. For example we may refuse to accept any further contributions into your ISA. You should speak to your tax/financial adviser about the possible tax implications of moving abroad or becoming a US Person. 4.7 If we reasonably believe that you are no longer permitted to hold particular investments or that we are unable to provide any of our products to you either because you have moved abroad or become a TERMS AND CONDITIONS 15

16 US Person, we may sell the investments and close your Account. We will do all we reasonably can to contact you before we do, so that we can discuss your options with you. Please see clause 18 which sets out your responsibilities in respect of your investments. Generally 4.8 After we have opened your Account and for each product we subsequently open for you, we will send you a letter confirming this. You must contact us as soon as possible or at least within fourteen (14) days if any of the details set out in the letter are incorrect. 4.9 We may reject any application you submit to us where we have reasonable grounds for doing so and we will not obliged to give you any reasons if we do so. 5 Nominated Bank Account If you wish to take income or withdrawals from your Account you must nominate a UK bank or building society account of which you are a named holder to be your Nominated Bank Account. Please note we will make all payments from your Account into your Nominated Bank Account. You can ask us at any time to change your Nominated Bank Account details but our agreeing to do so is subject to the results of any checks we may have to carry out in accordance with clause 3. 6 Joint Accounts 6.1 You can, together with up to five (5) other individuals, open a joint Investment Account. We will treat you and the other individuals as its joint owners. Each joint owner is responsible for all of the obligations imposed on an Account holder by our terms and conditions both individually and together. This means that each joint owner may be responsible to us for any loss we suffer as a result of a breach of our terms and conditions by one of the other joint owners, even if that individual did not cause the breach. 6.2 We will send the first named Account holder a letter confirming that a joint Investment Account has been opened. Any instructions we receive from any Account holder relating to the Account will be binding on all joint owners. Please note we may require all Account holders signatures before we carry out certain instructions. 7 Your right to change your mind We have set out in the product Key Features Documents full details of your cancellation rights relating to each product. 8 Investing into your Account Lump sum investments 8.1 You can make lump sum investments by cheque, debit card or direct debit. You should be aware that if you make an ad hoc lump sum payment using your existing direct debit mandate it will take at least three (3) Business Days before the payment reaches your Account. If you make a lump sum payment using a new direct debit mandate it will take at least ten (10) Business Days before the payment reaches your Account. A Business Day is a full day on which the London Stock Exchange and banks are open in England and Wales (other than Saturday, Sunday or a bank holiday). Regular investments 8.2 You can make regular purchases of the same investment by direct debit, which can be monthly, quarterly, half-yearly or annually. We collect direct debits on the 1st and 16th of the month or the next Business Day if this is not a Business Day. If you wish to amend your regular savings plan and switch from one Fund to another we must receive your request not less than three (3) Business Days before the next collection. Please refer to our Key Features Documents for details of the minimum investment levels for each product. A Fund is explained in clause We must receive any new direct debits and instructions to cancel and/or to make changes to existing ones nine (9) Business Days before the collection date, to ensure it takes effect on that date. If we purchase any investments for you because you have failed to notify us in time that you want to cancel or make changes to your direct debit, you will be responsible for any loss that arises if we have to sell investments. You will also have to pay any reasonable costs we incur in selling your investments. You should also be aware that the investments sold may count as a contribution to your ISA and may result in a tax liability to you. 8.4 If you have set up a direct debit to your ISA, you will only be able to make a lump sum investment to the amount we believe will not exceed your ISA allowance, together with outstanding regular investments for the current tax year. 8.5 We will collect your direct debit until you tell us/your bank/building society to cancel it. This means if you invest in a particular investment and subsequently sell or switch out of that investment we will continue to debit your bank/building society account and if you invest into your ISA by direct debit, your ISA will continue into the new tax year and we will automatically open a new ISA for you. 9 How we deal with your cash Cash Account 9.1 When you open an Account we will automatically open a cash account (Cash Account) for you. You can use your Cash Account to hold money pending investment into your individual products, to receive the sales proceeds of your investments and income payments from your products, to transfer money to your Nominated Bank Account and to pay our charges. We may also deduct any money you owe us from your Cash Account. Product Cash 9.2 Each product has its own separate cash facility (Product Cash) which you can use to hold money within your product pending investment, to receive the sales proceeds of your investments and income payments from the investments within your product, to fund any oneoff withdrawals from the product and to pay our product charges. Where permitted by law to do so, we may also deduct any money you owe us from Product Cash. Paying interest on your cash 9.3 We hold your money together with money belonging to other clients in bank accounts provided by UK banks. This is fully explained in clause 17. We pass on to you any interest we earn on your money at the end of each month. The amount you receive is based on your daily cash balance, but excludes any money which is in transit into or out of your Account. The interest received on the bank accounts is variable. Please contact us or visit our website for details of the latest rates. 10 Giving us instructions 10.1 We will only accept instructions from you in relation to your Account. If you have appointed a financial adviser we may grant them access to view your Account online but we will not accept instructions from them on your behalf. See clause 19 for more information about our online access If you ask us to cancel an instruction before we complete it, we will do all we reasonably can to do so, but we will not be responsible to you if we are unable to We may refuse to carry out, or delay the carrying out of, any instruction: (a) If you have failed to provide us with any information we have requested from you; for example information we require to satisfy our obligations under clause TERMS AND CONDITIONS

17 (b) If we reasonably believe it is incomplete or ambiguous. In this instance we will make reasonable efforts to contact you for clarification. If you do not have enough money to cover the cost of the instruction, in which case we will treat the whole instruction as cancelled. (d) If we reasonably believe the instruction is in breach of our terms and conditions, or may be contrary to any law or regulation. (e) If it is necessary due to events beyond our reasonable control. In these circumstances we will normally process your instruction on the first Business Day after the end of the period of delay. Please see clause 29 for examples of events beyond our reasonable control. 11 Buying and selling investments ( dealing instructions ) Generally 11.1 In this clause 11 we set out how we will carry out your dealing instructions, how long it will take us to carry them out, how you can pay for the investments you want to buy and what we may do if you don t. We also provide more information in our Order Execution Policy including the factors we consider to ensure we get the best results for you when carrying out your dealing instructions. You can find the policy in Annex 2. You consent to the policy by agreeing to our terms and conditions We will carry out dealing instructions given by you on an executiononly basis. This means that we will not provide you with advice on the advantages and disadvantages of undertaking transactions in any investment; nor will we assess the suitability or appropriateness of any investment for you and so you will not benefit from the protection of the FCA Rules on assessing suitability. You should refer back to your financial adviser if you are concerned about whether a particular investment is suitable for you We will carry out your dealing instructions subject to the minimum dealing amounts we have in place from time to time. You can find the current levels in our Key Features Document We may change the range of investments we make available to you. If an investment becomes unavailable we will notify you at the next appropriate opportunity. We may also require the disinvestment of existing holdings in the investment(s) that we are removing, in which case we will state this and any options you have in the notice. How we carry out your dealing instructions 11.5 How we carry out your dealing instructions may depend on whether the investment is a Fund or a Security. A Fund is any of the J.P. Morgan Open Ended Investment Companies (OEICs) we make available to you. It also includes the J.P. Morgan Société d Investissement á Capital Variable (SICAVs) and third party OEICs and unit trusts which you hold within your Account but which are no longer available for new investment. A Security is a share in the one hundred largest companies (excluding non-j.p. Morgan investment trusts) listed on the London Stock Exchange and any of the J.P. Morgan investment trusts we make available to you. It also includes the companies and non-j.p. Morgan investment trust shares, corporate and government bonds and exchange traded funds (ETFs) which you hold within your Account but which are no longer available for new investment. You can find more information on our Funds and Securities available in our Key Features Document. Funds 11.6 When you instruct us to buy or sell shares/units in a Fund the price the Fund Manager will offer to buy or sell shares/units in the Fund will be the price they calculate at the next Valuation Point. This means we will not be able to tell you in advance what your investment sales proceeds will be. You can get more information on a Fund s Valuation Point in its prospectus. The Valuation Point is the specific point in time when the Fund Managers calculate the price of shares in their Funds. This is normally each Business Day at noon, although some funds are priced at other times and frequencies You should also be aware that Funds are purchased (and subsequently held and sold) subject to the current terms of the Fund s prospectus which may allow the Fund Manager to delay or suspend sales and purchases of shares/units in their Fund. For example the Fund Manager of a Fund which invests in assets such as property and land may suspend your ability to sell your shares/units in the Fund during periods when the property markets in which it invests are particularly unstable. If this happens we may be unable to carry out your dealing instruction for a period of time In addition the Fund Manager may close, wind-up, divide or combine existing Funds that you hold within your Account. We will notify you in the event that a Fund Manager suspends a Fund. If you have been making regular investments in the Fund we will continue to collect your regular contributions and hold them within your Product Cash pending your instructions for investment You can give us a combined dealing instruction to sell one Fund and use the proceeds to buy another. This is known as a switch. You should be aware that you may be temporarily uninvested ( out of the market ) between the carrying out of the sale and purchase instruction. As a result, stock market fluctuations may mean that the number of shares you are able to buy with your sales proceeds may be less than the amount of shares you sold. Securities We will aim to carry out your dealing instruction within the timeframes set out in clause This means that the price of a Security may rise or fall between the time you give us your dealing instruction and the time the sale or purchase is completed. Please note we do not accept limit orders; i.e. dealing instructions to buy or sell a Security at a set price or better We cannot buy or sell fractions of Securities. We will normally round down any dealing instruction to buy a Security to the nearest whole share. If you instruct us to sell Securities to a specified value, for example 1,000, we will calculate the number of shares to be sold based on the previous day s price rounded up to the next share, which means you may receive more or less than the amount requested. Aggregation We will combine the dealing instructions described in (a) to (f) below that you and our other clients give us and execute them as a single transaction. This is known as aggregation. The dealing instructions are: (a) All buy instructions relating to the same Fund. (b) All sell instructions relating to the same Fund. All buy instructions relating to the same Security given to us by telephone and in writing. (d) All sell instructions relating to the same Security given to us by telephone and in writing. (e) All dealing instructions for regular purchases in the same investment which we will carry out on the 1st and 16th of each month, or next Business Day, if this is not a Business Day. We may also aggregate regular purchases with any non-regular buy instructions for that investment. TERMS AND CONDITIONS 17

18 (f) All dealing instructions relating to the reinvestment of dividend income in the same investment. writing, we will carry out your instruction on the next Business Day You should be aware that on some occasions aggregation may result in a more or less favourable price than would have been achieved had the instruction been carried out separately, for example a Fund Manager may impose additional charges or delay in dealing part of the aggregated order until a later Valuation Point. In such circumstances you agree that we may: (a) Share out the additional charges between you and our other clients fairly. (b) Share out any additional Securities between you and other clients, which may result in you having a negative balance in your Product Cash. Wait until we have dealt all aggregated instructions before sharing out the investments or proceeds to you and other clients. (d) Delay your sale instruction until we have enough aggregated sale instructions to meet any minimum dealing requirement and/or sufficient Securities are available in the market We will not aggregate any dealing instructions you give us online relating to Securities. Dealing timeframes for buying and selling investments We aim to carry out dealing instructions promptly but cannot guarantee that they will be carried out at a specific time. Normally once we have received and accepted a dealing instruction to buy investments we aim to carry it out as follows: Funds (a) If you are paying by available cash on your Account or debit card and you give us a buy instruction online, the purchase will be made at the next available Valuation Point, provided that we have received your buy instruction no later than seventy five (75) minutes prior to the Valuation Point. (b) If you are paying by cheque and you give us your buy instruction online we will carry out your buy instruction on the Business Day following receipt of your cheque. If you give us a buy instruction by telephone and you are paying by debit card, or if you give us a sell instruction by phone or in writing, we will carry out your instruction on the next Business Day. (d) If you are paying by cheque and you give us your buy instruction in writing we will carry out your buy instruction on the later of, the Business Day following receipt of the cheque and the Business Day following your written instruction. Securities (e) If you are paying by available cash on your Account or debit card and we receive your buy instruction online within our normal working hours, the purchase will normally be made within one (1) hour of receipt of your instruction, but in some circumstances your dealing instruction will only be placed by close of the London Stock Exchange on the same Business Day. If for any reason we cannot carry out your dealing instruction on the same Business Day we will carry it out on the next Business Day. (f) If you are paying by cheque and you give us a buy instruction online we will carry out your buy instruction on the Business Day following receipt of your cheque. (g) If you give us a buy instruction by telephone and you are paying by debit card, or if you give us a sell instruction by phone or in (h) If you are paying by cheque and you give us your buy instruction in writing we will carry out your buy instruction on the later of, the Business Day following receipt of the cheque and the Business Day following your written instruction. Paying for dealing instructions We may carry out your buy instructions before we have received cleared funds from you i.e. monies that have been credited to your Account and available to you to spend. You are responsible for ensuring that: (a) Sufficient cleared funds are available within your Account on the settlement date, which is the date when you have to pay for your investments. (b) You retain sufficient monies in your Account so that it does not have a negative balance at any time If you do not have enough money in your Account we may take one or all of the following steps: (a) Sell the investments you instructed us to buy, in which case we will not be responsible to you for any loss in the value of the shares between purchase and sale (known as shortfall ). (b) Sell any other investment(s) within your Account to cover any shortfall. If you have set up a direct debit to pay for the investment(s) we may give you an additional thirty (30) days to pay. If you fail to do so, we will sell the investment(s) and you will be responsible for any loss that arises from having to sell the investment(s) You should also be aware that the investment(s) sold may count as a contribution to your ISA allowance and may result in a tax liability to you You may also have to pay any charges we incur if we have to sell investments in accordance with clause You can find details of our charges generally for buying and selling investments on your behalf in our charges schedule which is part of our Key Features Document If you are paying by cheque it must be made payable to J.P. Morgan Asset Management and drawn on an account in your name held with a UK bank or building society. Sales proceeds You can instruct us to credit the sales proceeds of your investments to your Cash Account or Nominated Bank Account (for ISA and Investment Accounts only) or to Product Cash We will always pay sales proceeds to you net of any charges, fees, expenses, taxes, duties or other liabilities that arise in connection with selling your investments. Contract notes Subject to clause we will provide you with a contract note or transaction statement for each dealing instruction we carry out on your behalf which will set out the details of your transaction If you have set up a regular savings plan we will send you a contract note for the first contribution only. Details of all subsequent contributions will be set out in the six-monthly statement sent to you in accordance with clause Please note we will not send you a contract note for any dividends you have asked us to reinvest in accordance with clause TERMS AND CONDITIONS

19 12 Dividends and distributions 12.1 Subject to clause 12.2 we will credit any income you receive from the investments held within your products in accordance with the income payment preference you indicated in your product application form. We will generally credit income payments to your Account within five (5) Business Days of the payment date and these will then be reinvested or paid out according to your preference We will pay any income tax reclaimed in respect of the accumulation shares you hold in any Fund into the appropriate Product Cash. 13 Withdrawals and payments to third parties 13.1 You can make cash withdrawals from your Cash Account, Investment Account or ISA to your Nominated Bank Account, subject to any minimum or maximum sum set by us from time to time. Please note we will only ever make any payments due to you to your Nominated Bank Account and that it can take up to five (5) Business Days after the date you receive your investment sales proceeds into your Account before they are available for withdrawal We may at our discretion make payments to third parties, for example executors and legal representatives provided we are able to satisfy our legal and regulatory responsibilities. You should be aware that this may result in payments being delayed We may, where we consider it reasonable to do so, require your written authorisation before we agree to pay any monies from your Account to you, or to anyone acting on your behalf, or to your Nominated Bank Account. Please note if you have a joint Investment Account we will require written authorisation from all Account holders before we pay monies from your Account. 14 Keeping you informed In addition to providing you with transaction confirmations (see clause 11.23) we will provide you with Account statements every six (6) months showing your Account as at 5 October and 5 April. Investments will be valued at the most recent price for that investment available to us at the time your statement is generated. If we have been notified that you have a financial adviser we will also send copy statements to them. 15 Shareholder information, meetings and voting Prospectuses and Key Investor Information Documents (KIIDs) 15.1 You can get a copy of the prospectus and KIID for each Fund you hold either from jpmorgan.co.uk/investor or by contacting us using any of the contact details set out in our Key Features Document. Reports and accounts and other information 15.2 We will provide you with the reports and accounts for each of your J.P. Morgan investment trusts. You can get the reports and accounts for J.P. Morgan Funds from jpmorgan.co.uk/investor We will also provide you with any other information issued to J.P. Morgan investment trust shareholders including circulars and prospectuses and will notify you of any material changes and changes required by law or regulation to your J.P. Morgan Funds You can ask us to provide you with the reports and accounts and any other information relating to your non-j.p. Morgan investments. We will charge you a fee for this service to cover our administrative costs. Shareholder meetings and voting 15.5 Clauses 15.6 to 15.8 apply to J.P. Morgan ISA and J.P. Morgan Investment Account holders only You can ask us to arrange for you to attend and/or vote at share or unit holders meetings. Please note that we will charge you a fee for all non-j.p. Morgan investment trust and Fund investments to cover our administrative costs Subject to clause 15.8 below we will not exercise any voting rights in respect of any of your investments unless you have expressly asked us to do so and we have expressly agreed to do so. We will charge you a fee for this service to cover our administrative costs If you hold shares in a J.P. Morgan investment trust and in the absence of any specific instructions from you (which includes instructions to vote in favour of or against any resolution, or an instruction to abstain from voting), we may vote on your behalf. 16 Corporate Actions Generally 16.1 From time to time your investments may be subject to Corporate Actions. A Corporate Action is any action by a company or Fund which affects the shares or units issued by them, for example a Fund decides to change its name or a company decides to convert one type of share for another. Some Corporate Actions are mandatory and do not require investors to do anything while others are voluntary and may require investors to make decisions in respect of their investments You should be aware that where your investments are pooled with other clients investments and held in the name of a Nominee Company you may not receive the same treatment or options as you would if your investments were held in your own name. See clause 18 for more information about how we hold your investments. A Nominee Company is a company whose only business is to hold investments in its name on behalf of the beneficial owner Additionally a Corporate Action may give you an option to hold a share or unit or other financial instrument we are not willing to take custody of, for example it would mean the Nominee Company holding a share not listed on the London Stock Exchange or a financial instrument that the FCA would consider a complex investment (e.g. a warrant). If this happens we will sell the share/unit/other financial instrument and pay the sales proceeds, if any, into your Account. Rights issues 16.4 A rights issue allows a company s existing shareholders either to buy additional shares in the company or to sell the rights to additional shares in the market. Where the Corporate Action is a rights issue we will sell the rights and credit the sales proceeds, if any, to your Account. Corporate Action instructions 16.5 We will do all we reasonably can to notify you of all Corporate Actions, any options you have and the deadline by which we require your decision. You should be aware that to ensure we meet the deadlines imposed by companies we often have to impose an earlier deadline on Corporate Actions than those set out in the company documents. This means that sometimes it may not be possible to notify you within the relevant timescales and in such circumstances we will apply the company s default option or the option most appropriate to us Where a Corporate Action requires you to choose from a list of options and you do not tell us which option you want to choose within the deadline we gave you, we will select the company s default option or the option most appropriate to us or otherwise let the option lapse We will not be responsible to you for any losses arising out of a failure of any notification to reach you or a failure of your instructions to reach us in relation to a Corporate Action matter unless your loss is due to our fraud, negligence or wilful default. TERMS AND CONDITIONS 19

20 How we allocate shares/units/cash 16.8 The Nominee Company will usually receive one allocation of shares or units or cash for all clients who participate in a new issue, rights issue or bonus issue (sometimes known as a scrip issue, where you are offered free shares based on your existing holdings) or who receive additional shares or units as result of a take-over, share conversion or other offer. You agree that we may round down your entitlement to the nearest whole number and further agree that any fractions of shares, units or cash that cannot be allocated to you will be retained by us, and whenever possible, donated to a charity of our choice. Shareholder litigation 16.9 We will do all we reasonably can to notify you of any proposed class action or group shareholder litigation concerning investments that the Nominee Company is holding on your behalf. 17 Protecting your investments and cash Your investments 17.1 We are responsible for safeguarding your investments. We may also appoint other companies (known as subcustodians) to safeguard your investments on our behalf. We register investments in the name of a Nominee Company. It holds your investments on your behalf and you are and will always remain the beneficial owner. We accept responsibility for the Nominee Company and any subcustodian s acts and omissions in relation to your investments to the same extent that we are responsible for our own acts and omissions as set out in our terms and conditions You must always remain the beneficial owner of your investments and you must not dispose of or transfer any interest in any investment while it is held in your Account. Additionally you must not create any charge or security on or over any investment; for example you must not use them as security for a loan Share certificates or other documents of title will be held by us, the Nominee Company or as we otherwise direct. You can ask us to transfer J.P. Morgan Investment Trust you hold within your ISA or Investment Account into your own name. We will not charge you for this service and it may take up to eight (8) weeks to complete. Please be aware that if you transfer shares in your ISA into your name only they will lose their ISA status We will not transfer, exchange, exercise rights attached to, or otherwise deal with investments unless we receive instructions from you, or unless as expressly set out in our terms and conditions Your investments will generally be held together with other clients investments in a pooled account. When investments are pooled individual entitlements may not be identifiable by separate certificates, other physical documents of title or equivalent electronic record. This means that in the event of our, the Nominee Company or any subcustodian s insolvency and there is a shortfall which cannot be reconciled, there is a risk that you may have to share proportionally in that shortfall with all our other clients We have put in place measures to ensure your investments are adequately protected. This includes always keeping your investments separate from our assets and internal procedures to ensure we can always identify your investments and which cover the selection, approval and monitoring of any subcustodian we appoint. Clause 31 and our Key Features Documents also provide information on the protection provided by the Financial Services Compensation Scheme. Your cash 17.7 We hold all cash belonging to you on your behalf in client money accounts provided by one or more banks. We also hold your money separately from our money, which means that in the event of our insolvency our creditors will have no claim on it. Your money is pooled together with money belonging to other clients. This means that if the bank holding your money becomes insolvent and is unable to repay all of its creditors, which includes you and our other clients, any shortfall will be shared proportionally between them. In this situation you may be able to make a claim under the Financial Services Compensation Scheme and if so, we will make the claim on your behalf. Please see clause 31 for more information on the Financial Services Compensation Scheme We hold your cash in accordance with the FCA Rules which requires us to have in place adequate record keeping, accounts and reconciliation procedures to safeguard it. We also have in place procedures to cover the selection, approval and monitoring of the bank(s) we use to hold your money. Our rights over your investments and cash 17.9 You agree that we are entitled to hold on to the investments and money within your Account until you have paid off your debts and liabilities and satisfied your obligations under our terms and conditions. Our right to hold on to your assets will be in addition to any other rights we may have under any law If you owe us a debt we may use any of your investments or cash to pay off or reduce that debt and we will not be responsible to you for any tax charges or other losses you incur as a result of this We will not lend your investments or cash to anyone or use them as security for borrowing. 18 Your responsibilities in respect of your investments 18.1 Without limiting your responsibilities set out elsewhere in our terms and conditions, you are solely responsible for your compliance with all laws, regulations and rules which apply to your holding of any investment, including any tax, foreign exchange and capital controls Unless we expressly agree with you otherwise, you are responsible for any reporting or filing requirements that may apply as a result of your country of citizenship, domicile or tax residence. We do not support reduced withholding tax claims under applicable tax treaties on overseas investments and therefore you may suffer higher withholding tax than that applicable under an applicable tax treaty and you may not be able to offset any overseas tax paid against any UK tax liability arising to you. You should speak to your professional advisers if you require further information. 19 Online access 19.1 You can view, manage or transact on your Account online. We will send you your username and single-use password (your Security Details) separately by post, (or by if your open your Account online), when you open your Account. You can also contact us for your username and to set up a new password You must keep your Security Details confidential and secure and not share them with any other person. If you think that your Security Details have been or may have been disclosed to any other person you must inform us as soon as possible or at least within seven (7) days and assist us to remedy any security breach, so that we can protect your Account. If you fail to notify and/or cooperate with us we will not be responsible to you for any loss you may suffer as a result of any unauthorised access to your Account We will accept in good faith all instructions placed using your Security Details as a valid instruction from you and we will be entitled to act on those instructions without further confirmation, unless we have been notified of a security breach If you have a financial adviser registered with us, they may request us to provide them with their own Security Details, which they may use to view your Account. 20 TERMS AND CONDITIONS

21 19.5 We may remove your or your financial adviser s online access where we consider it reasonably necessary to do so; for example, if we have been notified of your death in accordance with clause 27, for security reasons or if you or your financial adviser misuses the service We cannot guarantee that online access is available at all times and may be temporarily unavailable or restricted for administrative or other reasons outside our reasonable control From time to time you may need to download software to access your Account online. We cannot guarantee that any software you download will be suitable for your computer and we cannot accept responsibility for any problems that your computer may suffer as a result We may make changes to our online service, including changes to content and presentation, what you can do online and when it will be available. We will always provide you with as much advance notice as we reasonably can of any changes which are material or substantial We will do all we reasonably can to ensure that online access is secure. However we will only be responsible for any loss or damage resulting from any attack by a third party that may infect your computer equipment, computer programmes, data or other material due to your use of our online service where such loss or damage is a direct result of our fraud, negligence or wilful default of our terms and conditions Our online service is designed to be accessed and used from the UK. If you access your Account online while outside the UK, you are responsible for ensuring that you comply with any local laws applicable to your use of the service. 20 Our charges 20.1 Our charges are set out in our charges schedule which is included within our Key Features Document. We will take any transaction charges involved in buying investments directly from the lump sum or regular contributions to be invested which will reduce the amount to be invested If your ISA or Investment Account is subject to an Annual Account Charge (see the charges schedule in our Key Features Document for details of this) we will collect it from your Cash Account monthly. If there is not enough money in your Cash Account we will take it from the Product Cash which generated the charge. If there is insufficient money in the Product Cash the outstanding charge will remain in the relevant Product Cash as a negative cash balance In addition to our rights set out in clauses 17.9 and 17.10, every six (6) months, normally in June and December, we will select and sell investments within your Account to pay off any outstanding charges or negative balances on your Account. The value of the investments we sell will be the amount you owe us plus an extra five per cent (5%) to take account of any market movements in the value of the investments between the date we give the instruction to sell them and the date we receive the sales proceeds. This may have negative tax consequences for you, so it is important you ensure you always have sufficient cash in your Account to pay our charges. We will not be responsible to you for any tax charges or other losses you incur as a result of our selling any of your investments. You will also have to pay any reasonable costs weincur in selling your investments We may make changes to the level of charges applicable to your Account or introduce new charges where we feel it is reasonable and necessary to do so. This may include, for example: (a) To reflect market conditions and general industry practice. (b) To take account of changes to law, codes or practice, the way we are regulated, or any decisions by a court, ombudsman, regulator or similar body. To reflect increases in the costs in providing our services to you, (e.g. staff and technology costs), including the future costs of planned enhancements to the service we provide. (d) To set an appropriate level of charges for clients who are using different options and services available from us When we increase our charges or introduce new ones we will, unless clause 28.3 applies, give you at least thirty (30) days notice before the changes become effective. See clause 28.4 for your options if you are unhappy with any of the changes we make. 21 Liability and risk 21.1 Subject to our legal and regulatory duties to you and the other provisions of our terms and conditions we will only be responsible to you for any direct loss, injury or damage suffered by you as a direct result of our fraud, negligence, or wilful default of our terms and conditions, or that of any Associate or third party or Nominee Company appointed by us from time to time. An Associate is any company that is part of the J.P. Morgan group of companies We will not be responsible to you for: (a) Any losses suffered by you e.g. loss of opportunity or loss of profit, which are not directly related to the event that caused your loss, whether or not the losses were foreseeable. (b) Any losses suffered by you as a result of any error, corruption, inaccuracy or incompleteness of any information you provide us online. Any losses suffered by you which are caused by our failure to comply with our terms and conditions due to unforeseen circumstances beyond our reasonable control as set out in clause 27, or due to our obligations under applicable law Subject to the other provisions of our terms and conditions you will be responsible for: (a) All direct losses suffered by you and us because you or your financial adviser have acted fraudulently or have allowed another person to access your Account or your Security Details. (b) All direct losses suffered by you and us as a result of your material breach of our terms and conditions, or if you provide inaccurate, erroneous, misleading or untrue information to us. All reasonable costs, claims, expenses, tax charges, demands and losses whatsoever that we may incur in performing our duties under our terms and conditions, or carrying out our lawful duties and responsibilities to you, except to the extent they arise as a direct result of our fraud, negligence, or wilful default As the value of your investments and the income from them is not guaranteed and can fall as well as rise, we cannot guarantee the performance or profitability of your investments. You may not get back the level of the investment you originally made. 22 Protecting your personal information We take your privacy very seriously and will protect it in accordance with the Data Protection Act 1998 and any other applicable legislation and codes of practice. Our Data Privacy Policy in Annex 1 sets out the purposes for which we will use your personal information, to whom we will disclose it and your rights in relation to it. 23 Communications 23.1 You must provide us with any changes to your postal and/or address or other personal detail changes as soon as they occur so we are able to contact you. TERMS AND CONDITIONS 21

22 23.2 Any communication we send to you or you send to us will be deemed received by you or us (as applicable) when that communication is received on your or our server. Please note that s may not be secure and as such we recommend that you do not send any personal or confidential information by . If you do so, we will not be responsible to you for any loss you may suffer Please note we will not accept any instructions in relation to your Account via We take all reasonable care to ensure all electronic communications and attachments we send to you are free from any known virus or bug. However we cannot always be sure that this will be the case and we will not be responsible to you for any loss you may suffer as a result Any notice or other written communication must be provided to us using the contact details set out in our Key Features Document Any notices received by us will be dealt with as soon as is reasonably possible after they are received. If we send a notice to you we will assume that it has been received by you within five (5) Business Days of posting, unless you live overseas and in which case we will assume that it has been received by you within ten (10) Business Days of posting To the extent that we are allowed to do so by applicable law, we may record and monitor electronic communications (including and telephone) to ensure compliance with our legal and regulatory obligations and internal policies and/or training requirements We will accept any communication that we reasonably believe to have come from you or on your behalf Where we ask you to respond to a communication from us within a certain time frame we will not be responsible for any loss that arises from your failure to do so Where you have authorised us in writing to provide information to a third party about your Account, we will continue to do so until we receive written notice from you to the contrary We will always communicate with you in English. 24 Complaints 24.1 If you are not satisfied with any aspect of the service you have received from us in relation to your Account please write to us at the address given in our Key Features Document. We will deal with your complaint in line with our complaints handling procedure, which is available from us. In any event we will send it to you when we acknowledge your complaint If we do not deal with your complaint to your satisfaction, you can refer the matter to the Financial Ombudsman Service at: The Financial Ombudsman Service Exchange Tower London E14 9SR Telephone: [email protected] Website: 25 Termination and payments to you on the closure of your Account By you 25.1 You can terminate our terms and conditions by contacting us using any of the contact details set out in our Key Features Document If you give us an instruction to sell all of the investments within your Account we may, where we consider it reasonable to do so, treat this as an instruction by you to close your Account. If we do so we may treat any cash balance on your Account which is less than 5 in accordance with clauses 25.7 to By us 25.3 We may terminate these terms and conditions by giving you sixty (60) days written notice of our intention to do so We may terminate our terms and conditions immediately for the following reasons: (a) You have failed to fund your Account for a period of twelve (12) months or more after we initially opened it. (b) You have not given us any documents we need to fulfil our legal or regulatory responsibilities. You are declared bankrupt. (d) You commit a material breach of our terms and conditions or any specific Product terms and conditions and fail to remedy it within thirty (30) days of being asked by us to do so. (e) You fail to make any payments due to us after we notified you of the amount you owe us and have given you a further thirty (30) days to make the required payments. (f) If we reasonably believe you are using or have used your Account for an illegal purpose. (g) You act in a way which we reasonably believe, having carried out appropriate investigation, to be unacceptable, for example: (i) You have provided us with information that is untrue, misleading or incomplete in a material way. (ii) You fail to inform us of any information you become aware of which makes any previous information untrue, incomplete or misleading. (iii) You behave in a way which negatively impacts our reputation or is discourteous to our staff If we terminate our terms and conditions for any of the reasons set out in clause 25.4 you will be responsible to us for all reasonable costs and expenses that we incur in closing your Account. Payments to you on the closure of your Account 25.6 If you or we terminate our terms and conditions and your Account comprises an Investment Account only, we will sell all the investments within your Investment Account and transfer the sales proceeds together with any other cash to your Nominated Bank Account. Please note this may create a tax liability for you. The options available to you if you have an ISA are set out in the ISA Specific Conditions All dividends and other distributions received on the investments you held in your Account will normally be paid to you. However you should be aware that this may take up to four (4) months after you have closed your Account. Amounts of less than 5 may be paid to a registered charity of our choice Any other sums of less than 5 which are received after your Account has closed may be paid to a registered charity of our choice We will treat any money we have tried but were unable to pay you, for example you have not provided us with a current address or you have not cashed a cheque, in accordance with the FCA Rules. 26 In the event of your death 26.1 Your personal representatives must notify us in writing of your death and provide us with either the original or a certified copy of the death certificate, or if they have already obtained the Grant of Representation, an official copy of that document. 22 TERMS AND CONDITIONS

23 26.2 Once we have received notification of your death we will stop any regular investment contributions you had in place and will hold any income distributions that would have been paid to your Nominated Bank Account within the relevant Product Cash. We will also send full details of your investments and their valuation as at your death to your personal representatives. If your personal representatives would like us to deal with a third party, for example a solicitor, we will need an instruction signed by all personal representatives before we will do so Normally we will be unable to distribute your investments until your personal representatives provide us with the Grant of Representation. However if the value of your investments meets our small estates criteria we may be able to waive this requirement. Your personal representatives should contact us for more information about this If a joint holder of an Investment Account dies we will treat the surviving joint holders as the only persons with rights to the investments held in the joint Investment Account. We will only act upon and accept instructions from the remaining holder(s) once we have received written notification and the original or a certified copy of the death certificate of the deceased joint account owner If we do not receive the appropriate documentation in the event of your death or the death of the last joint owner of a joint Investment Account and we need to take any action regarding the Account for legal, regulatory or administrative reasons we will take such action as we consider appropriate and will act as far as possible in what we reasonably consider to be your or the last joint owner s best interests. 27 Third party claims In the event of a failure by a third party which materially affects your Account and if you request and we agree, we will pursue on your behalf all appropriate legal remedies against any third party to recover any compensation due to your Account. You will have to pay any costs and expenses we reasonably incur which we will take from your Account. 28 Changing or replacing our terms and conditions 28.1 We may make changes to our terms and conditions for the following valid reasons: (a) Changes to relevant law or regulation, or a decision of the Financial Ombudsman Service. (b) Changes to the way we are taxed (including the requirement to pay any government or regulatory levy), or you and your product are taxed. Changes required by any regulatory or tax authority or industry guidance or codes of practice. (d) Changes in the way investment markets work, including changes in investment/securities dealing or administration which may affect your Account. (e) To make our terms and conditions easier to understand and any other changes that are not detrimental to you. (f) If it becomes impossible or impractical, in our reasonable opinion, to carry out any of our terms and conditions as a result of circumstances beyond our reasonable control. (g) To reflect improvements to our online service that technological, service or propositional enhancements have allowed us to make. (h) To reflect changes to the level of charges applicable to your Account. (i) To reflect changes to the range of investments we make available to you from time to time If we make changes for any of the reasons described in clause 28.1 and we consider them to be material changes, then unless clause 28.3 applies, we will write and tell you about them at least thirty (30) days before a change becomes effective and where this is reasonably possible. If it is not, we will write to at the earliest opportunity after the change has taken place If we make changes to our terms and conditions for any of the reasons described in clause 28.1 and they are outside our control (e.g. changes in legislation) or they are not detrimental to you (e.g. improvements to the service we are able to offer you) the changes will take effect immediately and we will notify you at the next appropriate opportunity If you are unhappy with any of the changes we make, you can at any time within the thirty (30) day notice period close your Account and/or transfer it to another provider without incurring any additional charges. 29 Events outside our reasonable control We will not be liable to you for any failure or delay in performing our obligations under our terms and conditions if such failure or delay is due to any cause outside our reasonable control. Events outside our reasonable control include: (a) Acts of God, fire, earthquake, storm or flood. (b) Explosion, nuclear accident or collision. Sabotage, riot, civil disobedience, strikes, terrorism. (d) Epidemic, national emergency (whether in law or fact), or act of war. (e) Any change to the law or regulation of a governmental or regulatory body. (f) Market conditions affecting the execution or settlement of transactions in respect of your Account. (g) Any targeted network attack or interruption of the Internet or other telecommunications service. (h) Loss of supply of essential services including electrical power and third party services. (i) Any other cause beyond our reasonable control which prevents us administering your Account for a given period of time. 30 Conflicts of interest There may be occasions when there are conflicts between our interests and the duty we owe to you, or a conflict between your interests and the interests of other clients to whom we also owe a duty. In accordance with the FCA Rules we have established a comprehensive conflicts of interest policy to identify and manage such actual or potential conflicts of interest. Please contact us if you would like a copy of our policy. 31 The Financial Services Compensation Scheme 31.1 If you make a valid claim against us in respect of your products and we are unable to meet our liabilities to you, you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS). This depends on the type of investment business and the circumstances of the claim. You can get more information from us or from the FSCS at www. fscs.org.uk or Please note the FSCS does not cover the individual Securities you hold either directly or indirectly e.g. when you invest in a Fund which invests in Securities, and will not provide you with any compensation should the Security s issuer become insolvent. TERMS AND CONDITIONS 23

24 31.3 In the event that a bank which holds client money as described in clause 17.7 becomes insolvent we may be able to make a claim on your behalf, up to a maximum of 85,000. This limit applies to the total money you hold with that bank which means that the money you hold in the client money account they provide would be combined with any other money you hold with them and any other deposit taker which operates under the same Prudential Regulation Authority authorisation. 32 Governing law We and you have a have a choice about the law that applies to your Account. We have chosen the law of England and Wales and by opening your Account you agree that your agreement with us will be interpreted by and construed in accordance with the law of England and Wales and that the courts of England and Wales will have exclusive jurisdiction to determine any dispute that arises between us and you. 33 General provisions 33.1 You understand and agree that we prohibit investment by any persons or entities that are acting, directly or indirectly: (a) In contravention of any applicable laws and regulations, including anti-money laundering regulations or conventions. (b) In contravention of European Union and HM Treasury restrictive measures or the highly restrictive country sanctions imposed by the U.S. Treasury Department s Office of Foreign Assets Control (OFAC). On behalf of terrorist or terrorist organisations, including those persons or entities that are included on the List of Specially Designated Nationals and blocked persons maintained by OFAC. Accordingly you understand and agree that we will act in accordance with the requirements of the aforementioned restrictions In performing any services in relation to your Account we may act through our officers, employees or agents, delegate our functions or responsibilities to any person and engage the services of any person, including an Associate. We will satisfy ourselves on a continuing basis that such persons are competent to carry out those functions or responsibilities We may, under certain circumstances need to transfer your product(s) to an Associate or a third party but we will only do so if we believe you will be provided with the same, if not better, level of service as provided by us. We will give you at least thirty (30) days prior written notice of any such transfer unless this is not possible or practicable in the circumstances As part of transferring all or part of our business, we may include the transfer of any client money to another Associate or third party provided the following provisions are met; (a) The amounts will be held by the Associate or third party to whom they are transferred in accordance with the applicable FCA Rules; or (b) If for any reason the amounts transferred are not held in accordance with the applicable FCA Rules, we undertake to have exercised all due skill, care and diligence in assessing whether that Associate or third party will apply adequate measures to protect these amounts. In either case, any transfers of client money amounts will be completed in accordance with the applicable FCA Rules and will require the Associate or third party to return a transferred sum to you as soon as practicable should you request it to If any provision of our terms and conditions is found to be invalid by any court, the invalidity of that provision will not affect the validity of the other provisions of our terms and conditions, which shall remain in full force and effect and will still be applicable to you and us The failure or delay either by us or you to exercise or enforce any rights, or enforce any obligation, under our terms and conditions is not a waiver of those rights nor will it prevent your or our subsequent enforcement of those rights or obligations You must not transfer your rights or obligations under our terms and conditions to anyone else without our prior written consent Our terms and conditions apply to you and us only and may not be relied on by any other person. Section B - J.P. Morgan Self Invested Personal Pension (SIPP) Specific Conditions 1 Introduction The J.P. Morgan Self Invested Personal Pension Scheme (the Scheme) is a pension scheme that has been registered with HM Revenue & Customs (HMRC) in accordance with the relevant pensions and tax legislation. We established the Scheme for the sole purpose of providing pension and cash sum benefits to Scheme members and their beneficiaries. 1.1 We established the Scheme under a special legal arrangement known as a trust. The trust deed and the rules adopted by it govern how the Scheme is operated. We are both the trustee and the administrator of the Scheme. This means that we hold the legal title to the assets within the Scheme for the benefit of Scheme members and their beneficiaries. We are also responsible for ensuring that the day to day running of the Scheme and the payment of benefits under the Scheme are in compliance with the trust and rules and all the relevant legislation. When we open your SIPP you will become a member of the Scheme. Please contact us if you would like a copy of the trust deed and rules. 1.2 Both these J.P. Morgan SIPP Specific Conditions and the General Terms and Conditions apply to your SIPP. If there is any conflict between them, these SIPP Specific Conditions will prevail. If there is any conflict between these SIPP Specific Conditions and the trust deed and rules the trust deed and rules will prevail. 2 Making payments into your SIPP 2.1 You and third parties, including your employer, can make regular and/or single payments into your SIPP at any time. Payments must be in pounds sterling and accompanied with the appropriate completed application form(s) and any other documentation we may reasonably require. 2.2 We may return any payment where we have not been provided with the application form(s)/documentation we require within three (3) Business Days of the payment being received. 2.3 We may refuse to accept any payment, if we think it is reasonable to do so, but once we have accepted a payment we will generally not be able to refund it. 2.4 We will verify the identity of your employer and any other third party who makes payments into your SIPP. See clause 3 of the General Terms and Conditions for more information about our identification requirements. If we cannot verify any third party s identity, we will not accept their payment. 24 TERMS AND CONDITIONS

25 2.5 We may not accept payments into your SIPP if you no longer satisfy our eligibility criteria as set out in clause 4 of the General Terms and Conditions. 3 Claiming tax relief on payments 3.1 Unless you ask us otherwise, if you or any third party, excluding your employer, makes a payment into your SIPP, basic tax relief on that payment is provided at source. This means that you and any third party should deduct an amount equal to basic-rate tax from that payment to calculate the net payment that you need to pay us. We will gross up the amount we receive which means that we will treat it as if it had been paid without the tax deduction, and claim the basic rate tax from HMRC. If you are a higher rate tax payer you can reclaim any additional tax relief that you are entitled to through your selfassessment tax return. 3.2 Your employer s payments are paid gross for tax purposes and we will not reclaim any tax relief on your behalf. 3.3 You will not be eligible for tax relief on any existing pension plans you have and transfer into your SIPP. 3.4 We will claim tax relief on payments made by you and any third party (other than your employer) provided that: (a) You are under age seventy five (75) when we accept the payment. (b) The payments do not exceed the lesser of: (i) One hundred per cent (100%) of your gross relevant UK earnings for the tax year; and (ii) The annual allowance. (See clause 4 for an explanation of the annual allowance). If you have no relevant UK earnings for the tax year you can contribute up to 3,600 gross. 3.5 Your relevant UK earnings are the earnings you receive in a tax year (which is the period from 6th April in one year to 5th April of the next year) and on which you have to pay UK income tax. They include: (a) The income you receive from your employer in a tax year (usually your salary and the value of other benefits you receive which are taxable); (b) If you are self employed the income you receive from your profession, trade or vocation; and The taxable income you receive from any UK furnished holiday letting business. 3.6 You are responsible for ensuring that all payments made to your SIPP are within the allowable limits to qualify for tax relief. If we have to refund payments to you (or any third party) because they exceed the current HMRC limits we will use the money in your SIPP cash facility to pay the refunds to you, any third party and HMRC, including any interest charges it may impose. We will also charge you our reasonable costs incurred in paying the refunds. If you don t have enough money in your SIPP cash facility to pay the refunds and our charges we will raise the money required by selling investments (selected at our discretion) within your SIPP. 3.7 We do not provide tax advice, but from time to time we may provide you with information relating to how your SIPP is taxed. Any information we provide to you is based on our understanding of current tax law and HMRC practice, which may change. You should be aware that changes in law and tax practice or your own financial circumstances could affect your pension or how much tax you have to pay. You are responsible for ensuring that you understand the tax consequences of investing in a SIPP and you should speak to your tax adviser if there is anything you don t understand. 4 Annual Allowance 4.1 HMRC sets an annual allowance on how much you, your employer and any third party can contribute to all your registered pension plans i.e. those pension plans registered with HMRC, without incurring a tax charge. If the total payments exceed the annual allowance you will have to pay an annual allowance charge which is payable at your marginal tax rate and which you pay via your annual tax return. You are responsible for monitoring whether the gross payments to all your registered pension plans remain within the annual allowance and we will have no responsibility to you for any annual allowance charge you have to pay. You can find more information about the annual allowance and annual allowance charge in the Key Features Document for the J.P. Morgan SIPP. 4.2 The annual allowance does not apply to transfer payments into your SIPP or transfers from your SIPP to another registered pension plan. 5 Ownership of the investments within your SIPP 5.1 As trustee of the Scheme we are the legal owners of the investments held within your SIPP. We are also responsible for safeguarding them and we may appoint other companies (known as subcustodians) to safeguard them on our behalf. The investments are held in the name of a Nominee Company and we accept responsibility for the Nominee Company and any subcustodian s acts and omissions in relation to the investments to the same extent that we are responsible for our own acts and omissions as set out in the General Terms and Conditions. 5.2 The investments in your SIPP will generally be held together with other Scheme members SIPP investments in a pooled account. When investments are pooled individual entitlements may not be identifiable by separate certificates, other physical documents of title or equivalent electronic records. This means that if we or the Nominee Company or any subcustodian become insolvent and there is a shortfall that cannot be reconciled, then there is a risk that your SIPP may have to share proportionally in the shortfall with all other members SIPPs. In this situation you, or we, may be able to make a claim under the Financial Service Compensation Scheme. See clause 31 of the General Terms and Conditions and our Key Features Document for more information about the scheme. 5.3 You will not be able to exercise voting rights in respect of the investments held in your SIPP. 6 SIPP cash 6.1 We hold the cash within your SIPP in client accounts with UK banks which are authorised by the Prudential Regulation Authority and covered by the Financial Services Compensation Scheme. The bank accounts are pooled client accounts, which contain the cash holdings for a number of members SIPPs. We hold cash in accordance with the applicable FCA Rules governing the holding of client money. We do not accept responsibility for the default of any bank which holds your SIPP cash and if any bank is unable to meet its financial obligations, your SIPP will share in any shortfall. In this situation we may be able to make a claim under the Financial Services Compensation Scheme on your behalf. 6.2 We pass on all the interest we earn to Scheme members at the end of each month. The amount you receive is based on your daily cash balance, but excludes any cash which is in transit into or out of your SIPP. The interest rate received on the bank accounts is variable. Please contact us or see our website for details of the latest rates. 6.3 If you have to pay us an Annual Account Charge (see the charges schedule in our Key Features Document for details about this) we will take it from Product Cash. If you do not have enough money in Product Cash the outstanding charges will remain as a negative cash TERMS AND CONDITIONS 25

26 balance. Please note we will sell investments within your SIPP in accordance with clause 20.3 of our General Terms and Conditions to pay off any outstanding charges. 7 Choosing when and how to take your benefits 7.1 Subject to clause 7.2 you can: buy an annuity; take a flexi-access drawdown take a uncrystallised pension lump sum take a combination of an annuity or flexi-access pension Please note that these options are not offered within the J.P. Morgan SIPP and if you decide to take your benefits you may need to transfer your SIPP to an alternate provider. 7.2 You can choose to take benefits before age fifty five (55): (a) If we are satisfied, based on the medical evidence provided by a registered medical practitioner acceptable to us that: (i) You are, and will continue to be, medically incapable (either physically or mentally) as a result of injury, sickness, disease or disability of continuing in your current occupation; or (ii) You are suffering serious ill health, i.e. you have a life expectancy of less than twelve (12) months. (b) If your occupation and HMRC rules allow you to take your benefits before age fifty (50). Please contact us or your financial adviser if you think you may be eligible to take your benefits early. 8 Your benefits and tax the lifetime allowance and the lifetime allowance charge 8.1 HMRC sets a lifetime allowance on the total amount that you, your employer and any third party can pay into all your registered pension plans and use to provide benefits without incurring a tax charge, known as the lifetime allowance charge. You can find more information about the lifetime allowance and the lifetime allowance charge in the J.P. Morgan Key Features Document. 8.2 Up to age seventy five (75) we will test your benefits against the lifetime allowance: (a) Each time you take benefits from a new part of your SIPP (only available from an alternate provider unless you are an existing drawdown holder at 6 April 2015). (b) If you die leaving parts of your SIPP from which you did not take benefits and which we use to pay a cash sum to your beneficiaries. See clause 11 for more information about death benefits. If you make a transfer payment to a Qualifying Recognised Overseas Pension Scheme (QROPS). A QROPS is a pension scheme based outside the UK to which HMRC will allow you to transfer money or assets without imposing a tax charge. 8.3 On your seventy fifth (75th) birthday we will test the value of any remaining part of your SIPP which you have not used to take benefits and (in respect of existing drawdown clients) the parts of your SIPP you used for drawdown pension against the lifetime allowance. 8.4 If the value of your SIPP exceeds the lifetime allowance we will deduct the lifetime allowance charge from the part of your SIPP which is being used to take benefits and pay it to HMRC, except where the lifetime allowance charge arises as a consequence of your death, in which case your legal personal representative will be responsible for identifying and calculating any charge due. 8.5 If you fail to disclose to us material information and/or provide us with inaccurate information so that we are unable to calculate correctly whether a lifetime allowance charge is due, we may not be able to report or pay the correct charge to HMRC. If this happens HMRC may pursue you personally in respect of any charge payable and we will have no responsibility to you if it does so. 8.6 If you tell us you have any protection in place to protect the value of your pension plans against the lifetime allowance charge, for example enhanced protection or fixed protection, you must provide us with your protection certificate, if applicable, and any other information we may reasonably require prior to taking your benefits. If you fail to provide us with such a certificate we will assume that no protection applies to your benefits and we will calculate the lifetime allowance charge accordingly. Please contact us or your financial adviser if you think you have protection in place. 9 Taking benefits 9.1 We will require you to provide us with certain information and documents before we can pay any benefits to you or your nominated beneficiaries. We will tell you what these are at the time you apply for benefits and you agree that we will have no obligation to you to pay benefits until we have received such information and/or documents. 9.2 Where we receive distributions arising from investments held within your SIPP and we have either used the full value of your SIPP to provide you with an annuity or we have transferred your SIPP to another pension provider, we will pass on the distributions to either your selected annuity or new pension provider. If your annuity provider or new pension provider will not accept the payment we may donate the amount to a registered charity of our choice. If you have a J.P. Morgan Drawdown Pension we will apply the distributions to it. Taking a payment from your SIPP not available within the J.P. Morgan SIPP 9.3 You can receive all of your benefits as a cash sum (although you may have to pay tax on this): (a) If you are suffering from serious ill health (see clause 7.2 (a) (ii)); or (b) If the drawdown pension or annuity payable from your SIPP would be payable in accordance with HMRC s triviality rules. The triviality rules allow you take your benefits within all your registered pension plans as a cash sum provided the value of those rights does not exceed the limit set by HMRC from time to time. Please contact us or your financial adviser if you think the triviality rules apply to you. 9.4 If you use a tax-free cash sum from any registered pension plans to make payments to your SIPP (known as recycling ) you will be responsible to us for any tax charges, penalties or any other costs we incur and we will be entitled to take these costs from your SIPP or any other part of your Account. Please contact us or your financial adviser for more information about recycling. Buying an annuity not available within the J.P. Morgan SIPP 9.5 As explained in clause 7 you can choose to use some or all of your SIPP to buy an annuity from your chosen annuity provider. This is known as your open market option. We will buy the annuity for you as soon as we reasonably can but we can only do so after all the necessary administrative steps have been completed. This includes: making sure your chosen annuity complies with the trust deed and rules; you or your financial adviser providing us with all the documents we need to arrange the purchase; receiving the sales proceeds of the investments we have to sell within your SIPP to pay for the annuity; and satisfying any requirements imposed by the annuity provider. Most of these matters are beyond our control and we will not be responsible to you for any loss you suffer as a result of 26 TERMS AND CONDITIONS

27 a delay in buying your annuity. We will accept responsibility if the delay is a direct result of our fraud, negligence or wilful default. Taking a drawdown pension available to existing J.P. Morgan SIPP Drawdown Clients 9.6 We will calculate the maximum income you can take from each drawdown pension in each Pension Year in accordance with the prevailing HMRC rules. A Pension Year is the twelve (12) month period during which we pay you an income from your drawdown pension(s). It begins on the date you wish to start taking an income and is calculated separately for each drawdown pension within your SIPP. The Pension Year for any drawdown pension you transfer into your SIPP is normally set by the transferring pension provider. 9.7 You do not have to take any income from your drawdown pension in any Pension Year, but you cannot take any income to which you were entitled in a Pension Year but did not, in a subsequent Pension Year. 9.8 We will pay your income from cash held within your SIPP cash facility. If you do not have enough cash to fund your income payments you must tell us which investments within your drawdown pension you want us to sell to fund your income payment. If you don t tell us we may be unable to pay any income to you. 9.9 You can ask us to pay you an income less than your maximum income entitlement. You can also change the income amount and date (1st or 16th) you want your income paid, provided that you do so at least ten (10) Business Days before the date the change is due to take effect. You can also ask us to pay you a one off amount but you will not be able to take a one off payment within ten (10) Business Days of your Pension Year end date. We may also refuse to pay a one-off amount where we believe that it is necessary to do so to ensure the cost effective administration of the Scheme We will pay your drawdown pension income through the PAYE system. We will send you a payslip in respect of each payment month and a P60 at the end of each tax year. 10 Reviewing your drawdown pension income 10.1 Until you reach age seventy five (75) we will review the maximum income you can take from each drawdown pension within your SIPP at the end of every 3rd Pension Year (the Review Date). After each review we will tell you your new maximum income limit, which could be higher or lower than the previous maximum income We will carry out the review within thirty (30) days of the Review Date but you can ask us to use a specific date within the thirty (30) day period to carry out the review Until you reach age seventy five (75) you can also ask us to conduct a review at the end of each Pension Year, provided that you ask us at least ten (10) Business Days before the end of the Pension Year We will also carry out a review of your maximum income entitlement if any of the following events occur: (a) If you use part of a drawdown pension to buy an annuity before age seventy five (75). (b) If you become subject to a pension sharing order, which is a court order which requires you to provide your ex-spouse or civil partner with a share of your pension benefits on divorce or dissolution of your civil partnership. After you reach age seventy five (75) in which case we will recalculate you maximum income entitlement annually. In the event of (a) and the revised maximum income limit will apply from the start of the next Pension Year and in respect of (b) the new maximum will apply immediately if it is higher than your previous maximum income entitlement If your maximum income has increased after any review you can ask us to: (a) Continue to pay you the same level of income (provided it is still less than your maximum income entitlement); or (b) Increase your income payments up to your new maximum income entitlement. If you are drawing the maximum income entitlement and it is reduced after any review we will reduce your income to your new maximum income level. 11 Paying benefits following your death 11.1 When you die we will use the funds in your SIPP to provide benefits to your nominated beneficiaries. Death benefits may be payable as a cash lump sum, known as lump sum death benefit, as an annuity or in the form of the flexible retirement options with an alternative provider. Your beneficiaries 11.2 The categories of eligible beneficiaries to whom we can pay benefits are set out below. We have a discretion in deciding which beneficiaries will receive benefits and how much they will receive, but we will always take account of your written wishes to us as to whom you would like us to pay benefits. You can do this by completing the nomination of beneficiaries section in our SIPP application form at the time you apply to open an SIPP or by completing a beneficiary form which you can get at any time from us. The eligible beneficiaries are: (a) Your dependants. Your dependants are, as at the date of your death: (i) Your spouse or civil partner. (ii) Any child of yours who is under age 23 or is in our opinion financially dependant on you. (iii) Any other individual who is financially dependent on you. (b) Your grandparents, their descendants and spouses. An individual entitled to an interest in your estate. (d) Any charity, persons or unincorporated associations you have told us in writing you would like us to pay benefits. (e) Other persons or trusts we believe you would have wished to be considered as beneficiaries. Death benefits 11.3 The death benefit options available vary depending on: (a) The relationship to you of the person receiving the benefits. (b) Your age when you die Once we have decided which of your nominated beneficiaries will receive benefits, the relevant dependant(s) can choose to use their portion of the drawdown pension fund to: (a) (b) Take a cash sum, less a tax charge (see clause 12 below); A scheme offering the pension flexibility options; or Buy an annuity. Please note that if you have not told us which beneficiaries you want us to pay benefits to (see clause 11.2), or if the nominated beneficiaries you nominated die before you, we will decide which dependants will receive benefits. TERMS AND CONDITIONS 27

28 12 Cash sum 12.1 If we decide to pay a cash sum to a beneficiary we will pay it as follows: (a) Free of any tax charge if you die before you reach age seventy five (75). (b) Net of a 45% tax charge if you die over age seventy five (75) If we pay a cash sum to a charity nominated by you, that cash sum will not be subject to the tax charge. 13 Transfers Transfers-in 13.1 We may accept transfers-in of pension funds from other registered pension plans acceptable to us into your SIPP. We will accept transfers-in in cash and 'in-specie, i.e. you can transfer in your investments in their current form without having to sell them first. We are not able to accept any of the following transfers-in: (a) Pensions from which you have you have delayed taking benefits, known as deferred annuities and pensions with any guaranteed benefits. (b) Transfers that are subject to a pension earmarking order, i.e. a court order that would require us to pay part of your transferred plan s pension benefits to a previous spouse/civil partner. Transfers from a Qualifying Recognised Overseas Pension Scheme (QROPS). (A QROPS is explained in clause 8.2 ). Please contact us or your financial adviser before you consider any transfer in We will use any transfer value of your rights in another pension plan to provide you with benefits in accordance with the trust and rules. Transfers-out 13.3 You can ask us to transfer your SIPP to another registered pension plan or to a QROPS If you ask us to transfer any part of your SIPP from which you are not taking a drawdown pension we may refuse to carry out the transfer if, in our reasonable opinion as scheme administrator, it would not be cost effective for us to process the transfer or to administer the part of your SIPP that is left behind If you ask us to transfer out any drawdown pension within your SIPP we will only transfer out the whole of the drawdown pension, except where we are required to carry out a partial transfer to comply with a court order We will make transfers-out in cash and/or by transferring your investments in their current form and any transfer payable will be the aggregate value your drawdown pension less any applicable fees and charges. 15 Unauthorised payments 15.1 We will only ever be required to make payments from your SIPP which HMRC considers are authorised payments, such as paying you benefits within the limits provided by legislation. If you receive any unauthorised payments this may result in you having to pay a tax charge We may also incur other liabilities imposed by HMRC, for example a scheme sanctions charge, which the Scheme has to pay if it makes an unauthorised payment. If we incur any such liabilities we will be entitled to deduct the amount from your SIPP or claim it from you personally. However we will not do so if and to the extent that the liability is incurred as a result of our fraud, negligence or wilful default. 16 Transfer of rights The benefits payable under your SIPP may not be surrendered, changed for other benefits or transferred to anyone else, except as described in these SIPP Specific Conditions. 17 Term and Termination These SIPP Specific Conditions will remain in full force until they are terminated: (a) By you transferring out all the assets within your SIPP to another registered pension plan. (b) On the winding-up of the Scheme in accordance with the trust and rules. On all assets within your SIPP being exhausted. (d) By you buying a pension using all the assets in your SIPP (or where applicable a dependant(s) doing so after your death). (e) By your death (or where applicable the death of any dependant(s) who is entitled to benefits under these SIPP Specific Conditions after your death). 18 After termination Termination of these SIPP Specific Conditions (or any part of them) will not affect: (a) The completion of transactions already begun. (b) The completion of obligations clearly intended to survive termination. Transactions necessary to terminate your SIPP. (d) Our production of any statements or documents that we have to provide in such circumstances (whether to you or to any third party). 14 Keeping you informed We will provide you with the following statements and illustrations relating to your SIPP: (a) A six monthly statement. (b) A statutory money purchase illustration. A pension savings statement. (d) An annual drawdown pension illustration, if applicable. 28 TERMS AND CONDITIONS

29 Annex 1 - Data Privacy Policy 1 Protecting your privacy is of vital importance to us. We have developed a privacy policy to help ensure your personal information remains secure at all times. 2 J.P. Morgan Trustee & Administration Services Limited is responsible for deciding how your personal information is used. We are registered with the Information Commission s Office, the independent body responsible for data protection, and you can find details of our registration in the register of data controllers at 3 The personal information, including sensitive personal information supplied by individuals when applying for our services may be held and processed for the purposes of: (a) Administering relationships and related services. (b) Operational purposes and statistical analysis (including behaviour analysis). Conducting market or customer satisfaction research. (d) Providing individuals with information concerning products and services which we believe will be of interest. (e) Compliance with any requirement of law, regulation, associations, voluntary codes we decide to adopt, or good practice, anywhere in the world. (f) (g) Confirming and verifying an individual s identity (this may involve the use of a credit reference agency or other third parties acting as our agents) and to conduct due diligence. We may also screen against publicly available government and/or law enforcement agency sanctions lists. Obtaining your new address, in the cases where your contact details are not accurate or up-to-date (this may involve the use of service providers acting as our agents) (h) The detection, investigation and prevention of fraud and other crimes or malpractice. (i) For the purposes of, or in connection with, any legal proceedings (including prospective legal proceedings), for obtaining legal advice or for establishing, exercising or defending legal rights. (b) To actual or potential purchasers of parts of our business, and their respective advisers and insurers, and in relation to the transfer of our contractual rights and/or obligations. If we or any person to whom we disclose personal information otherwise have a right or duty to disclose the personal information, or are allowed or compelled by law to do so. For example, financial institutions and payments and messaging service providers may from time to time be required, under subpoena or otherwise, to provide certain transaction information to authorities or other official bodies, whether located in the European Union or overseas, to assist in the prevention of terrorism, money laundering and other crimes. 5 Personal information may be processed and disclosed as described above in any country in which we conduct business or have a service provider. This may include some countries that do not provide the same statutory protection for personal information as the EU Data Protection Directive and implementing legislation. 6 We and other companies in the J.P. Morgan Group may contact individuals by mail, , SMS, telephone and other electronic means to provide information on products and services that we believe will be of interest, unless an individual objects to receiving such information. 7 To the extent permitted by applicable law, we may record and monitor electronic communications (including and telephone) to ensure compliance with our legal and regulatory obligations and internal policies and for the purposes outlined above. 8 Individuals about whom we process personal information may request a copy of the personal information held in relation to them by us. We may, where allowed by law, charge a fee for this. If any personal information is found to be wrong, the individual concerned has the right to ask us to amend, update or delete it, as appropriate. In some circumstances individuals also have a right to object to the processing of their personal information. 9 This Privacy Policy as updated or amended from time to time can be read by going to the privacy link at 4 The personal information may be disclosed: (a) To any organisation in our group of companies, their agents, auditors, service providers, regulators, governmental or law enforcement agencies or any person we reasonably think helpful for the processing purposes outlined above. TERMS AND CONDITIONS 29

30 Annex 2 - Order Execution Policy 1 Introduction 1.1 We have put in place procedures to ensure we get the best possible result for you when we carry out any instructions to buy or sell investments on your behalf. This Order Execution Policy summarises these procedures. 1.2 Please note that if you give us a specific dealing instruction to buy or sell an investment in a particular way it may prevent us from following this policy to the extent that we accept and follow your instruction when executing the order or a specific part of it. 1.3 We are required to obtain your prior consent to this policy and you will be deemed to consent to it by agreeing to our terms and conditions. 2 Order execution factors 2.1 In achieving the best results for you we take into account a number of factors including: the price and nature of the investment; all the costs involved; speed and likelihood of successfully carrying out your instruction; the size of your order; and any other considerations relevant to carrying out your instruction. 2.2 In deciding how much importance we should attach to the factors mentioned above we have to consider: the fact that you are a retail client; the characteristics of your instructions and the investment to which it relates; and the characteristics of the possible execution venues. 2.3 Normally when we execute an instruction on your behalf the best possible result will be determined by the total consideration paid by you, i.e. the price of the investment and all the costs related to executing your instruction. However there may be other times when we treat other factors as having higher priority. 2.4 In particular, we will aggregate all dealing instructions of the types described in clause of our terms and conditions. We believe that aggregating these types of dealing instructions will result in us getting the best overall result for you particularly with regard to overall dealing costs. However you should be aware that in some circumstances this may work to your disadvantage. 3 Choosing a venue 3.1 When deciding the venue with which we will execute your Instruction in relation to a particular investment or to which we will transmit it for execution, we will consider the following: the general prices available; depth of liquidity; the speed and cost of carrying out your Instruction including the quality and cost of clearing and settlement; and the creditworthiness of the counterparties or central counterparty. 3.2 We have set out below the venues we currently use and which we believe enables us to obtain on a consistent basis the bet possible results for our clients: (a) For Funds we will always deal with the Fund transfer agent (the person appointed by the Fund manager to issue and chancel shares/units in the Fund). (b) For Securities we currently use Winterflood Securities Limited. When we carry out your instruction using Winterflood Securities Limited we buy or sell investments from or to them rather than using a regulated market or a multilateral trading facility (MTF). 4 Receiving and sending your orders 4.1 We may send your order to a broker for them to execute instead of executing it ourselves. If we do, we will take into account the factors set out in clause 2 above to make sure we get the best result for you. 4.2 Normally the most important factors will be the price of the investment and all the costs associated with your dealing instruction. However we will not have to take into account the factors mentioned in clause 2 if we are following your explicit instructions when placing an order with a broker. 4.3 In choosing a broker we will consider the broker s reputation and order execution arrangements. Currently if we decide to send your order to a broker we will use Charles Stanley & Co. Limited for all investments. 5 Monitoring and reviewing this policy 5.1 We will monitor the effectiveness of our order execution arrangements and this policy. In particular, we will assess, on a regular basis, whether the execution venues we have chosen continue to get the best possible results for you. 5.2 We will review this policy and our order execution arrangements every year, or whenever there is a significant change that affects our ability to continue to get the best possible results for the execution of your orders on a consistent basis using the venues we have chosen. 5.3 We will inform you about any significant changes to our execution arrangements or to this policy. 30 TERMS AND CONDITIONS

31 NEXT STEPS Investor Services Financial Advisers Helpline Address J.P. Morgan Asset Management Client Administration Centre 60 Victoria Embankment London EC4Y 0JH JPMorgan Asset Management Marketing Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No Registered Office: 25 Bank Street, Canary Wharf, London E14 5JP. GB H /15