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INSTRUCTION TO USER – The following section has been designed for inclusion within a report generated by the PPOL Suitability Report Builder. In the first instance, you will need to use the PPOL Report Builder to create a report including an Introduction section and at least one Pension Review Recommendation section and any other required sections in the usual way. Once you have downloaded the report created via PPOL to Word, simply insert (copy and paste) this section into your report after the Pension Review Recommendation section and before any new recommendation sections. The accompanying Risk Warnings, Notes on Financial Products and Technical Notes are also attached for inclusion within the Appendix.

The text has been colour coded to aid with your understanding. Where the text is highlighted in blue this tends to suggest that the text may not be appropriate in all instances and you may need to delete some or all of it. Where the text is highlighted in red, this will require your input

<USE THE FOLLOWING OPTIONS IN THE PENSION REVIEW RECOMMENDATION SECTION>

I have recommended that you transfer your existing pension benefits to an alternative arrangement for the following reasons:

Although your existing pension will allow you to try and grow your funds via equity type investments you understand there is also the possibility that your funds could fall reducing the potential income available to you at your retirement. You therefore require some certainty to the eventual returns at retirement in the form of a guarantee of income/capital (delete as appropriate), not available with your current provider

Although we understand investments very well, we cannot predict which investments will definitely perform best over the next few years, or indeed know for sure if markets are likely to rise or fall on a year by year basis as the stock markets have become very volatile. For this reason I am recommending you to secure the value of your pension through guarantees not available with your current provider

The strategy currently invested in and available under your pension does not provide you with any certainty of what your retirement income will be, as this will still be dependent on the size of your pension fund and annuity rates at the time you retire.

It was stated that you would like to safe guard your pension funds against market volatility but at the same time you understand that to achieve a greater income than currently being offered your funds need to grow in excess of inflation. The proposed alternative will lock in any capital growth achieved on the anniversary of the plan so increasing the potential income you could achieve

You wish to start drawing benefits from this pension plan and this can best be achieved via an alternative arrangement. My specific recommendations for which can be found in the section that follows.

As detailed earlier in my report, your attitude towards risks was calculated as <INSERT LEVEL> using the <INSERT PROFILING SOFTWARE>. After discussing your immediate and medium term requirements in greater detail and accessing your tolerance to capital loss we reviewed your attitude towards risk and agreed you would be more comfortable at a <INSERT LEVEL> attitude to risk. You appreciate that by reducing your exposure to risk the opportunity for medium to long term growth is likely to be compromised but were happy with the agreed change.

You require access to your Pension Commencement Lump Sum but this is not available with your current plan without purchasing an annuity immediately. You do not currently require any income at this time.

You are looking to retire and thinking about taking your pension income in the next 10 years. You currently have enough pension provision to provide you with the minimum income you

require in retirement and are looking to protect this against fund value losses in the next few years.

<INSERT ADDITIONAL REASONS HERE>

Drawdown with Guarantees Recommendation

I have recommended that you draw benefits from the pension arrangements highlighted in the earlier review section. A summary of all of the options available to you can be found in the Appendix of this report.

Objectives Discussed

Pension Commencement Lump Sum

An individual can take up to 25% of a pension fund as a Pension Commencement Lump Sum (tax free cash payment) irrespective of the type of pension they hold, although it is possible that a member of an occupational pension scheme may have "protected" their entitlement in excess of 25% prior to A Day.

<INCLUDE ONE OF THE FOLLOWING IF FUND IS NOT CRYSTALISED>

You wish to take the maximum Pension Commencement Lump Sum payment. The maximum you are entitled to at this time is £<INSERT>.

You do not require the maximum Pension Commencement Lump Sum payment of £<INSERT> at this time.

You have stated an amount of £<INSERT> would be sufficient to meet your immediate needs and objectives.

Please note that taking any of your Pension Commencement Lump Sum now or in the future will impact on the income level that could be secured or may already have been guaranteed.

I understand you require the Pension Commencement Lump Sum because:

It has been earmarked for immediate capital expenditure <EXPLAIN> The flexibility of accessing the tax free cash and not drawing any of your income reflects

your immediate and medium term objectives It has been earmarked to pay off your mortgage You do not require any additional income at this time <INSERT ADDITIONAL REASONS HERE>

I confirm we have discussed alternative ways of raising this capital and the implications of accessing your pension fund now, I explained that the longer you defer taking your pension income the greater the benefits will be, this is because the sooner you start to draw benefits the sooner your pension fund becomes eroded.

<INCLUDE IF FUND IS ALREADY CRYSTALLISED>

Your pension benefits have already been crystallised and there is no further Pension Commencement Lump Sum payment available at this time.

Income Requirements

You have stated that you do not require an income at this time.

You have stated that you would like to withdraw an income of £<INSERT> per annum

You have stated that you do not require a fixed guaranteed regular income for the rest of your life, and would prefer a flexible income stream which can be altered to reflect your future circumstances and requirements.

You have stated you would like to secure your future income as a precaution against future investment volatility

You have stated you would like to incorporate an annual capital guaranteed growth rate of <INSERT %> providing security and certainty of affairs.

You have stated you would like to provide the opportunity of locking in any future growth on an annual basis providing for a potentially greater income in retirement.

You have stated that your income needs will alter when you reach age <INSERT> but your current income requirements are fixed and certain.

Retirement Income Recommendation

I have recommended that you transfer your existing pension benefits into a flexible retirement income pension by way of a Drawdown with a Guarantee for the following reasons:

It accurately reflects your needs, objectives and attitude to risk It keeps your options open because it’s not a lifetime commitment, so it allows you to take

account of changes in your circumstances. However, any flexibility will be entirely dependent on your fund value, which is not guaranteed.

Your retirement needs can be reassessed over time in accordance with future fund values to ensure the most appropriate provider(s) are selected.

It provides the necessary flexibility to tailor the annual income payments you require to suit your needs and circumstances now or in the future

It potentially provides you with greater control over the timing of any future annuity purchase

It provides the potential for greater death benefits than a conventional annuity which is important to you

You will not have to lock your pension into current low annuity rates. Although you should be aware that annuity rates could fall further in the future

You wish to reconsider your position at age <INSERT AGE> because:o your income needs are expected to be greater at that stage owing to you / your

spouse reducing /stopping worko Your income needs are expected to be lower at that stage owing to you / your

spouse starting to receive the state pension /receiving an inheritance /your outgoings falling /releasing equity from your house

o You / your spouse have/has a family history of ill-health but you do not currently qualify for enhanced annuity rates

o Your spouse is currently in poor health and you will be more certain about whether to provide a spouse’s pension

o You are expecting changes in your circumstances e.g. divorce /remarriage/relocation etc.

Although you do not require an income immediately, you do require the pension income to be guaranteed

It provides the opportunity to lock in any future growth on an annual basis increasing the potential income being offered at your chosen retirement date

A guaranteed growth can be obtained by investing in the proposed vehicle that will also increase the income offered in retirement at a set rate. <For guaranteed income recommendations only>

It provides the potential for the residual fund to continue to benefit from tax efficient growth

Your tax free cash entitlement can be taken as a lump sum payment at outset Your current circumstances dictate that you do not require an additional income at this time You favour the idea of your pension fund remaining invested in a tax efficient environment

offering the potential for greater returns than could be obtained from an annuity purchase. You appreciate this means investing in asset backed investments, which can fluctuate in value, and I confirm that you feel comfortable with the associated risk because you wish to add an underlying guarantee

IN RECOMMENDING THE PRODUCT PLEASE BE AWARE OF THE FOLLOWING RISK WARNINGS BELOW ( PLEASE DELETE AS APPLICABALE)

Please note due to being able to guarantee your income at your chosen retirement date the proposed alternative will incur greater costs than being incurred by your existing plan as detailed later in my report, and therefore reduce the impact of any fund growth, but you consider this acceptable for the certainty provided.

The risk level change means your medium term capital gains would more than likely be reduced meaning that your investments are not likely to perform as if you were invested in line with a <INSERT RISK>. You confirmed you understand the reduced opportunity for capital growth but you confirmed you are happier that greater security that will be achieved.

Reducing your risk level compromising the capacity of capital returns, I have detailed later in this report a comparison of how your funds may perform when invested in the two risk levels discussed. Please note the figures are for illustrative purposes and are no means a guarantee of what you would achieve.

<INSERT ADDITIONAL REASONS HERE>

Areas considered when selecting the most appropriate provider to meet a client’s needs and circumstances:

Investment Options and Performance - There is obviously no means to categorically predict future investment performance. Although it should be stressed that past performance is no guarantee of future performance, it can act as a useful guide. Depending on your attitude towards risk we believe comparing the range of investment options available to be extremely important.

<INCLUDE TABLE IF WANTING TO COMPARE THE PROJECTION OF THE EXISTING PLAN WHEN COMPARED TO THE PROPOSED PLAN, OR IF A CHANGE OF RISK HAS BEEN AGREED IT MAY BE WORTH ILLUSTRATING THE REDUCED PROJECTED GROWTH>

<IF RECOMMENDING GUARANTEED INCOME PRODUCT REMOVE BELOW AND COMPARE TO OTHER INCOME OPTIONS SUCH AS ANNUITY AND DRAWDOWN AT INTENDED RETIREMENT AGE>

Projection comparison of existing pension and proposed new policyPolicy Number

Company Name

Existing Pension Proposed Pension5% 7% 9% 5% 7% 9%

Please note the reason for the lower projection return of the proposed alternative is due to the additional cost of the guarantees being chosen.

Financial Strength - It is imperative to select a provider who is financially strong and one that will be able to meet its obligations to policyholders in the future. Often the guarantees on Drawdown plans are underpinned by the provider’s financial strength and longevity.

Charging Structure - The effect of charges is reflected in the reduction in yield or total expense ratio. The reduction in yield where illustrated reflects the deductions for expenses, guarantees, adviser remuneration and other adjustments. The total expense ratio consist primarily of management fees and additional expenses such as trading fees, legal fees, auditor fees and other operational expenses but excludes the adviser fee.

The charges of your existing pension compared to those of the proposed alternative contract are detailed below:

Existing Pension

Company Name – Policy NumberInitial Charge Contract Charge Annual Charge Other Charges

<THE TABLE BELOW IS THE STANDARDISED VERSION POST RDR>

Entry Ongoing Event Exit

Proposed Alternative

Company Name – ProductInitial Charge Contract Charge Annual Charge Other Charges

<THE TABLE BELOW IS THE STANDARDISED VERSION POST RDR>

Entry Ongoing Event Exit

Options Available - It is imperative to select a provider who offers the various options that are required to meet your immediate and long term requirements.

Options Recommended

<DELETE THE OPTIONS NOT RECOMMENDED>

Guaranteed Minimum Death Benefit Option - (sometimes known as Value Protection or Plan Protection). There is a guaranteed minimum death benefit and the value of the amount that could be payable is whichever is the higher at the time the insurance company is notified of your death, between the fund value and your secure capital value.

Immediate Income Guarantee Option - The immediate guaranteed income provides a known level of income for the life of your policy. Your income amount is known at outset and there is no investment performance risk associated with this option. The amount you receive as an income is based on the amount you invest and your age. You can choose whether or not your guaranteed income is paid for your life only (single life) or continues to be paid to your partner (joint life) after your death.

Guaranteed Maturity Amount - This is the fund value available at the maturity date (if applicable) term) if you are still alive at the maturity date. You must normally use this to transfer to another registered pension scheme, buy an annuity or drawdown plan if you are eligible.

Dependents Benefit - You can choose to provide a proportion of your income to your dependant if you die before the end of the fixed term. Depending on what options you’ve chosen means your dependent could receive an income, a lump sum, or both after you die. Up to 100% of the income that was paid to you may be selected. If you die then the Dependant’s Benefit will start from your death or at the end of any Guarantee Period selected, whichever occurs last. On your death a new calculation of the maximum income available to your dependant based on Government limits applicable at that time is undertaken. These limits may mean that the income payable to your dependant is restricted. The same selected percentage of Dependant’s Benefit is used to determine the value of the Guaranteed Maturity Amount paid, if your dependant survives until the end of the term. For example if you chose a Dependant’s Benefit of half of your income, then half of the Guaranteed Maturity Amount will be paid to them, if you die during the term, but they survive to the end of the term.

Increasing Income - Income can remain level or increase annually typically up to 8.5% p.a. (increasing on the anniversary of the first payment) Income is subject to HMRC income limits which are reviewable every three years or annually from age 75. If income has to be restricted because of the plan indexation exceeding these maximum limits following an income review, then the amount that cannot be paid, plus interest, will normally be added to the Guaranteed Maturity Amount.

Transfer or Conversion Option - If at any time during the term of your plan your circumstances change you can choose to transfer to another pension or annuity product with any other registered pension scheme. In order to be able to transfer your plan, receipt of proof of your change in circumstances is usually required at which point the provider calculates a transfer value which will vary depending on the investment conditions and the remaining term of your plan at the time. It will typically be based on the guaranteed maturity value plus remaining income payments to the end of the term, less the provider’s costs for ending your plan, which could be significantly less than the guaranteed maturity value.

Securing the Capital Value - Securing the capital gives your savings the potential to grow while at the same time protecting the value of your investment. If the market rises, the recommended provider will lock in any investment gains on your chosen review date and create a new, increased

Capital Value for you. If the market falls, the Capital Value remains unchanged so you know you’ll always protect at least the original investment you’ve put in.

<INCLUDE (WHERE APPROPRIATE) IF LOCKING IN ANY GROWTH IS BEING RECOMMENDED>

I have recommended that you Lock-in the gains on an annual basis.

Capturing the gains that your pension fund makes every year will enable the income being withdrawn to benefit from growth. However any growth above <INSERT> won’t be guaranteed (unless it’s locked-in at a future review).

You can lock-in gains that your pension fund has made every year, in which case any growth locked-in will be capped to a maximum of <INSERT>. Your pension fund will still benefit from growth over and above this. However any growth above <INSERT> won’t be guaranteed (unless it’s locked-in at a future review).

Very Important: You will normally only be able to switch out of the Capital/Income Guaranteed Option on or within 30 days of a Fund Value Review date.

Summary of Recommendation

< SELECT APPROPRIATE SENTENCE>

I have recommended the following Drawdown with Guarantees plan after payment of <£INSERT> / your maximum tax free cash entitlement by the receiving scheme for the reasons highlighted below:

I have recommended the following Drawdown with Guarantees plan for the reasons highlighted below:

Ownership Company Plan Name Net Fund Value (£)

Options: <DELETE OR AMEND OPTIONS TO SUIT>

Lock In reviews Dates

Secured Capital Value

Guaranteed Minimum Benefit

Immediate Income Guarantee

Future Income Guarantee

N/A or Year(s) N/A or £ N/A or £ N/A or £ N/A or £

The research tool I have used to review the market place identified <INSERT PROVIDER> as the most suitable and competitive solution for your needs and objectives

The recommended plan offers an immediate income guarantee in line with your requirements

A Guaranteed Maturity Amount (GMA) or Secure Capital Value (SCV) is available at maturity if you or your dependents (where applicable) survive.

The plan provides for the GMA / SCV to be transferred to another pension, be used to purchase an annuity or invested in another drawdown plan subject to continued eligibility.

The plan will allow you to access your fund early and purchase an annuity, or transfer to another product if your circumstances change during the chosen term.

The charging structure of the recommended plan is competitive when compared to similar guaranteed products in the market place. Non-guaranteed products are likely to be substantially cheaper.

I believe the additional features and enhanced flexibility associated with the recommended arrangement more than compensates for any additional charges levied for the guarantees

They have provided us and our clients with an excellent service in the past <INSERT ADDITIONAL REASONS HERE>

Income Benefits

‘Third Way’ retirement options fall under the more flexible Pension Drawdown rules where you can take or withdraw pension income direct from your pension fund without having to purchase an annuity. On 6th April 2011 the Government introduced a new retirement framework of Capped and Flexible Income Drawdown, both of which can be used for retirement planning with guarantees. The income limits within this framework were subsequently amended with effect from 26 th March 2013.

Ordinarily there are limits on the maximum income you can take under a Capped Drawdown plan set by Government Actuary Department (GAD) Rates and this is currently 120% of GAD. Under a Flexible Drawdown plan (subject to meeting the minimum income requirements) there is no limit on the amount of income you can take in any year. You can however tailor your drawdown pension to suit your personal requirements whether taking regular amounts at a set frequency or ad hoc income when required.

Further information regarding Capped and Flexible Income can be found in the appendix of this report.

The limits that apply to your pension income position are detailed as follows:

Critical Yield A at 75

Critical Yield B at 75

Maximum Income

Minimum Income

Comparable Annuity

Protected Rights % % £ £ £Non Protected Rights % % £ £ £

Critical Yield A put simply is the rate of return required by the income drawdown fund to provide and maintain an income at least equal to that which could be provided if an annuity had been taken.

Critical Yield B applies where an income is being withdrawn and illustrates the rate of return required to provide the selected level of income. It is particularly significant if the client is looking to maintain that income throughout the full term of the plan.

Investment Strategy

I have recommended that you invest your available funds as follows:

FundCapital

Guarantee Charge

Income Guarantee

Charge

Product Charge

Annual Management

Charge

Investment Summary %

Reasons for the investment strategy recommended are detailed as follows:

The above reflects your stated risk profile and investment objectives You can change how your plan is invested at any time to suit your investment objectives <INSERT> are the market leading provider of innovative unit linked guarantees. Unit-linked

guarantees are a means of protecting your investments from stock market volatility. All of their unit-linked guarantees are underpinned by <INSERT> financial strength

<INSERT> offer a range of risk-rated portfolios which have been carefully selected and are reviewed on a daily basis to ensure your investment is not only secure, but has the potential to grow, and when used in conjunction with the Secure Capital and Secure Income Options, secure that growth on an annual basis.

Each of the <INSERT> portfolios is specially designed to capture market gains and to better manage market downturns. By switching between cautious assets and more adventurous assets, the <INSERT> Funds / Managed Wealth Portfolios are better able to limit the impact of severe market swings and in doing so, are intended to offer smoother, more consistent returns over time.

Each of the <INSERT> Funds / Managed Wealth Portfolios invests in fixed interest assets such as UK Government Gilts and UK Corporate Bonds, and can also invest in cash equivalents. The fund manager will monitor and change the allocation between equities and cash equivalents in order to avoid large swings in the value of the fund on a day to day basis. Depending upon market conditions, the exposure to equities and cash equivalents will vary, and whilst the portfolios could become heavily invested in cash equivalents, they should not exceed their predefined exposures to equities or fixed interest assets as detailed in the information brochure provided.

<INSERT ADDITIONAL REASONS HERE>

Important Information and Risk Warnings

A detailed explanation of the technical factors relating to the area of advice being provided can be found in the appendix of this report. You can also find the specific risk warning that also relate to the advice being given. An example of the more important are:

Reviews: A pension invested in a complex environment should be reviewed on a regular basis as factors that may affect future decisions are annuity rates, the amount you can withdraw, and your own financial circumstances.

Past Performance: Historical returns are not a reliable guide to future performance. The value of investments within a fund can fall as well as rise.

Charges: I would also stress that charges can affect the performance of your investment and the higher the charges the greater effect this may have on the ongoing performance. In essence, a fund will need to perform better in order to cover any increased charges.

<ADD ANY PRODUCT SPECIFIC RISK WARNINGS NOT ALREADY MENTIONED i.e. Taking income earlier than intended will reduce your maximum income level>

<AMEND CANCELLATION RIGHTS SHOWN BELOW AND / OR REPLACE STANDARD PPOL CANCELLATION WORDING>

Cancellation Rights: You can cancel at any time within 30 days of the date of your first personal quote / application / receipt of cancellation notice. To cancel you need to tell us in writing and return any money paid to you during the 30-day cancellation period. If you do so and the plan is not already set up it will be cancelled and your pension fund will be paid back to your original pension

scheme. If you decide to cancel after your plan starts and the amount invested in your plan has gone down in value only the current value of your investment can be refunded. To calculate the value of the plan, the value of the underlying assets of the plan at the date of cancellation will be used along with actuarial principles, to produce a fair value. This may mean your original pension scheme receives back less than they gave us. If your original pension scheme won’t accept the refund, you can transfer the pension fund to another provider. If you cancel and you’ve already been paid any money (for example as tax-free cash), you will of course have to pay this back before the pension fund is paid back to your original scheme or transfer this to another provider. Once the plan starts and the 30 day cancellation period has ended, you can’t normally cancel your plan or cash it in.

The advice provided considered and discounted other options as detailed below:

Moving to More Cautious Funds within the Existing Plan <with a view to obtaining one of the below products when required>

<INSERT REASONS HERE>

Conventional Annuity

The level of risk you agreed to take regarding your pension funds was slightly greater than required to invest in a guaranteed environment for life

You preferred and requested flexibility over the way you manage your retirement benefits You required the potential to pass on a lump sum to your beneficiaries on your death You have other sources of income and did not require a fixed guaranteed income at this time You did not require a Pension Commencement Lump Sum payment at this time You know your circumstances will change in the future <Clarify these> <INSERT ADDITIONAL REASONS HERE>

Unit Linked / With Profit Annuity

You did not wish to take any risk in respect to your retirement benefits You did not require a Pension Commencement Lump Sum payment at this time You wished to take your retirement benefits in the most flexible and tax efficient manner

possible You required the potential to pass on a lump sum to your beneficiaries on your death <INSERT ADDITIONAL REASONS HERE>

Drawdown Pension

You did not wish to take any risk in respect to your retirement benefits You did not require a Pension Commencement Lump Sum payment at this time You wished to take your retirement benefits in the most flexible and tax efficient manner

possible You required the potential to pass on a lump sum to your beneficiaries on your death in the

most tax efficient way possible <INSERT ADDITIONAL REASONS HERE>

Phased / Phased Drawdown Pension

You required the maximum Pension Commencement Lump Sum payment at outset You did not wish to take any risk in respect to your retirement benefits

<INSERT ADDITIONAL REASONS HERE>

Fixed Term Annuity

You required an element of investment risk (backed by guarantees) to provide the opportunity for growth in your income and your fund value not available for this type of plan

You felt there was an Insufficient choice of guarantees available via a Fixed Term Annuity <INSERT ADDITIONAL REASONS HERE>

INSTRUCTION TO USER – The following section concerning charges of the recommended plan or provider will need to be merged with the Important Information (Cost of Services) section produced by the PPOL Suitability Report Builder. Where the text is highlighted in blue this tends to suggest that the text may not be appropriate in all instances. Please delete the charges which are not applicable to the recommended plan or provider. Where the text is highlighted in red, this will require your input.

Important Information

Cost of Services

There are various ways I can be remunerated for my advice and the provision of my services. A summary of the options can be found in our Tariff of Charges document, Services and Costs Disclosure Document (SCDD) or Combined Initial Disclosure Document (CIDD) provided.

We have discussed that my fee can be paid either via the product or directly to me. You have chosen to pay this <INSERT OPTION CHOSEN AND REASON WHY>. Please note that by paying this via the product will reduce the amount that will be guaranteed.

A detailed summary of all the charges associated with the advice provided in this report can be found below:

Proposed Drawdown with Guarantees Plan Charges <INSERT PROVIDER>

Entry Ongoing Event Exit

Entry Charges: One off charges taken before or on investment.

• Advisor Charge: A fee paid to the advisor for advice and services received.

• AC Paid By Provider: The Advisor Charge will be paid by the product provider but deducted from your funds.

AC Paid By Client: The Advisor Charge will be paid by directly by you.

AC Paid By Fund: The Advisor Charge will be paid from the fund.• AC Paid By Cash Account: The Advisor Charge will be paid from the cash account within your investment.

• Commission: A payment made to the advisor directly by the recommended product provider.

• Provider Charge: A charge taken from the premium prior to investment.

• Fund Charge: The difference between the buying and selling prices of units or shares in a dual priced fund - often termed a Bid/Offer spread.

• Regular Premium Charge: A charge taken from each new premium for the term.

Ongoing Charges: Regular charges, typically taken over a year.

• Advisor Charge: A fee paid to the advisor for ongoing advice and services received.

• AC Paid By Provider: The Advisor Charge will be paid by the product provider but deducted from your funds.

• AC Paid By Client: The Advisor Charge will be paid by directly by you.

AC Paid By Fund: The Advisor Charge will be paid from the fund.

AC Paid By Cash Account: The Advisor Charge will be paid from the cash account within your investment.

• Investment Management Fee: Or Annual Management Charge (AMC). A fee levied by the investment firm paid out of the fund for the costs of investment management and fund administration.

• Plan Fee: A set charge typically applied on the plan anniversary to cover provider administration.

Other Fees: Attributable on-going charges to the plan or investment strategy not already mentioned

Event Based Charges: Ad hoc charges related to specific events.

• Advisor Charge: A fee paid to the advisor for specific advice or services.

• AC Paid By Provider: The Advisor Charge will be paid by the product provider but deducted from your funds.

AC Paid By Client: The Advisor Charge will be paid by directly by you

AC Paid By Cash Account: The Advisor Charge will be paid from the cash account within your investment.

AC Paid By Fund: The Advisor Charge will be paid from the fund.• Income Review Fee: A charge levied by the plan provider to review the maximum GAD income drawdown level ahead of the statutory triennial review or transfer in.

• Fund Switch Fee: A charge to sell one fund to buy another.

• Income Withdrawal Charge: A charge levied by the plan provider to commence or maintain income payments from capital.

Other Fees: Attributable specific charges to the plan or investment strategy not already mentioned.

Exit Charges: One off fees taken on termination.

• Exit Charge: Applicable under the plan or investment rules following early sale, surrender, encashment or transfer.

• Market Value Adjustment (MVA) Charge: A penalty which may be applied to a with-profit fund on early surrender.

Our Service Proposition

My company offers a number of service propositions which govern the type of service and the regularity of contact and reviews you will experience as well as any on-going costs you can expect to incur. Full details of these propositions have already been discussed and provided. I confirm that you have elected for the following service:

<INSERT LEVEL OF SERVICE ELECTED FOR WITH BRIEF SUMMARY AS TO WHY THIS IS SUITABLE FOR A GUARANTEED PRODUCT>

Regular Reviews

It is important that we regularly review your financial arrangements as your circumstances and attitude to risk will almost certainly change over time. I can confirm during our meeting we agreed the following:

I have agreed to contact you on an annual basis to carry out a financial check-up. <INSERT ADDITIONAL REASONS HERE>

If you wish to review or amend the services you are receiving from us, the service level can be changed or stopped at any time, as can my ongoing fee.

Financial Services Compensation Scheme (‘FSCS’)

The FSCS was set up under the Financial Services and Markets Act 2000 and exists to protect clients of FCA authorised firms and covers deposits, insurance and investments. The scheme can pay compensation to clients who have lost money as a result of their dealings with FCA authorised firms that are unable to pay claims against them, usually because they are insolvent or have stopped trading.

The limit of protection varies between different types of products. For life assurance and non-compulsory insurance (e.g. home and general) the compensation level is 90% of the claim with no upper limit. For investments and mortgages the limit is £50,000 per person per firm. The maximum level of compensation on deposit based accounts increased to £85,000 per person per firm from 31st December 2010.

Aspects of Your Financial Affairs Not Addressed But Deemed Important

I practice a comprehensive approach to financial planning. To this end, I would like to draw your attention to the following. If on further consideration you wish to discuss any of the below in more detail please do not hesitate to contact me.

Inheritance Tax Planning

You did not consider this a priority at the current time

Protection

You did not consider this a priority at the current time

Wills and Lasting Power of Attorney

• I understand you have not made a Will. To this end your estate would be subject to the laws of intestacy. This is unlikely to result in your estate being distributed in accordance with your wishes. I would recommend that you contact your solicitor to write a Will as a matter of urgency or if you wish me to put you in touch with an expert in this field, please let me know and I shall pass on your details immediately.

You already have a will and have confirmed that it is up to date.

Mortgage Repayment

Insert reasons if applicable.

Risk Warnings – Drawdown with Guarantees

In addition to the risks shown below, I recommend you read carefully the section entitled “risk factors” in the Key Features Document provided which highlights any possible disadvantages of affecting this plan.

Recommendations are based on our understanding of current tax legislation, which may be subject to change and review.

For a full explanation of the charges and how they affect your plan, please refer to your personalised illustration and the Key Features Documents.

The figures on any quotations provided are for illustration purposes only and are not guaranteed unless stated otherwise.

The value of the investment is determined by the value of the units, the price of which can fall as well as rise. What you get back is not guaranteed unless you have included a capital guarantee.

Although your circumstances may change after you choose the benefits that suit you, once accepted, the terms and conditions may not be able to be altered or may incur new charges to alter.

Where a maturity amount may be guaranteed at the end of your selected term, the income you can buy from it at this time is not. Annuity rates and maximum drawdown rates could be higher or lower in the future so the income available at maturity could be higher or lower than the amount a lifetime annuity would provide if you bought one now.

You may not have made adequate provision for your dependent(s). The contract (and therefore payments) will cease upon your death unless you have selected

the joint life option and / or the guarantee option / or named your beneficiaries The value of your investment may be eroded by the effect of inflation over time. To obtain the benefit of equity investing, a medium term view is advisable (i.e. a minimum of

5 years). Minimum terms may apply in excess of this in order to benefit from the guarantees associated with third way plans. These may differ between providers and would be in accordance with your risk tolerance and fund choice.

Tax free cash and pension benefits are designed to supplement your income in retirement. By taking the tax free cash early, it will not be available at a later stage.

Any transaction requested under the plan may be delayed by the provider for up to six months; this includes for surrenders, transfers or the withdrawal of benefits.

This retirement option is a crystallization event which means the value of your pension will be assessed against the lifetime limit and the excess could be subject to a recovery charge of up to 55%.

Past performance is no guarantee of future returns. It is important to remember your income is not guaranteed unless a guaranteed income

option is selected. The income from a drawdown pension is dependent on the current Government Actuary

Department rates. The rates will vary with interest rates and age. The maximum withdrawal under capped drawdown must be reviewed at least every three

years, until the end of the drawdown pension year in which the individual reaches age 75, and every year thereafter. This could result in the level of income you receive being reduced in the future.

High income withdrawals are likely to erode the capital value of your pension fund and may not be sustainable. This could result in a lower income if an annuity is eventually purchased.

You should weigh up the flexibility of withdrawing income against the certainty of buying an lifetime annuity which pays you a guaranteed amount for the rest of your life.

The fund available to buy an annuity may be lower than illustrated. This could happen for a number of reasons, for example if:

o Investment growth is lower than illustrated.o Charges increase above those shown on the illustration.o Any guarantees are withdrawn or amended

Any annuity bought in the future will depend on interest rates at that time and the investment performance of your plan. No guarantee can be made that annuity rates will be better at that time.

Actuarial research indicates that individuals are living longer and this is predicted to mean that annuity rates will fall in the future and are likely to be less than they are now.

If you purchase an annuity you may benefit from a cross subsidy from those annuitants that die relatively early. This cross subsidy is not present with drawdown pension. Therefore a higher investment return will be required to provide a comparable income.

The combined effect of mortality drag and the on-going charges on drawdown pension means that in order to produce the same income as a conventional annuity, the underlying assets must grow faster and this could be restricted if guarantees to capital are selected.

If you start to take benefits earlier than you originally intended, the level of the benefits you can take may be lower than expected and may not meet your needs in retirement.

When undertaking a transfer with an existing Pre April 6th 2011 income review date, your current income limit will remain until expiry of the original five year review period and may result in a rise or fall in the level of income paid to you.

When undertaking a pension transfer between two companies, there may be a period of a few days where your funds are not invested. Your fund could materially suffer as a result of any movements in the market during this time.

If you transfer your retirement fund prior to the end of your selected guarantee term, you may lose some or all of the benefit of the guarantees.

The Cancellation Rights include the provision that the companies from which the funds have been transferred are not obliged to take them back.

Where a property fund has been recommended the value of the fund is based on the valuer’s opinion rather than fact. You should be aware property and land can be difficult to sell – so you may not be able to cash-in this investment when you want to. In extreme market conditions the fund manager may have to delay acting on your instructions to sell your investment.

An investment in corporate bonds is generally less secure than an investment in Government bonds due to the greater possibility of default.

Where a fund invests in overseas markets, changes in currency exchange rates mean that the value of the investment can go up or down.

Notes on Financial Products

Third Way Drawdown Plan

Against a background of increased volatility in stock markets, perceived poor rates being offered for Conventional Lifetime Annuities, concerns over future inflation and the fact that people are now living longer, the retirement market was in need of a new type of product. These new plans are commonly known as ‘Third Way’ products and they are already very popular in the US and Japan. Essentially they fit in between a Lifetime Annuity and a Drawdown Pension plan as they offer the chance to participate in stock market growth but with guarantees attached to either income, capital or both.

Third Way products add a new dimension to retirement planning, by combining the advantages of fixed annuities with the flexibility of income drawdown. Third Way retirement planning will allow you to stay in complete control of your retirement terms, whether you phase retirement, live off a Pension Commencement Lump Sum while deferring income, or protect your fund while staying invested to make the most of future investment gains.

Drawdown Pension with Guarantees

This retirement income option is structured as a Drawdown Pension plan but with the option to apply a guarantee to the initial investment so that your fund value will never fall below what you originally paid into the plan. Some plans also allow all or a portion of any growth in the plan’s value to be locked in and a new minimum guaranteed level is then set. Finally, the option to select a guaranteed level of income is also commonly available.

You can choose to immediately take a tax-free cash lump sum and then, instead of buying an annuity, leave the remainder of the fund invested in a tax-efficient environment. The Drawdown with guarantees option can be considered as a lower risk alternative to conventional Drawdown, as both the level of income for the term of the plan and the final value are known from outset.

Because A Third Way retirement option like this does not provide a guaranteed lifetime income via an annuity, it falls within Drawdown rules, which means that you can select the level of income you wish to take up to the maximum allowed, which is currently 120% of GAD. There is always a direct correlation between the level of income selected and the maturity value when guarantees are present, so it is possible to find an acceptable balance between current and future income needs. This solution will not necessarily provide more income overall than a lifetime annuity, but it does offer more options.

If the income is not guaranteed it may vary between set limits, and will be reviewed at some point between 1 year and generally 5 years depending on the product chosen. The range of income typically can be anything between nil and 120% of the income that could be paid by a single life annuity and will be based in the main on your fund size, age, and assumed investment returns and your expected longevity. The maximum limit is broadly equal to 120% of a single life annuity that you could have purchased at that point. Where a guaranteed level of income is chosen this tends to be a fixed amount although increases or additional withdrawals may be possible providing overall income remains within HMRC limits.

Taxation

These plans remain registered pension schemes which means as a pension it has some tax advantages over other types of investment notably you can receive tax relief on your contributions, the funds grow free of most taxes, you can receive a tax free PCLS and your pension fund will not usually be subject to inheritance tax.

HMRC sets two limits to these tax advantages. Firstly, an annual allowance which restricts tax relief on contributions in a year and secondly, a lifetime allowance which restricts the value of benefits you can take in your lifetime. These allowances are currently set at £50,000 and £1.5 million respectively.

The income paid to you and your dependant will normally be taxed under the Pay As You Earn (PAYE) system. This is similar to tax on employment income. If the Government changes the tax treatment of these plans the income paid to you and your dependant may alter.

If a lump sum as a result of your death or your dependant’s death is paid, to an individual, your estate or your dependant’s estate, a 55% tax charge will be deducted on the lump sum death benefit. Your dependent may tell us to use the lump sum to provide a dependant’s income. This income would however also be taxed under the PAYE system.

Tax treatment depends on your personal circumstances. Any references to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.

Technical Notes – Third Way Pensions

These new products can provide a halfway house between a Lifetime Annuity and a Drawdown Pension. They offer the flexibility and exposure to investment growth, like a Drawdown Pension and the ability to build in an income guarantee like a Lifetime Annuity. The ‘third way’ concept aims to offer the ‘best of both worlds.

Third way products remain relatively new in the UK and the terminology used is not always consistent. For example, you may also see these products described as ‘fixed annuity’ or variable annuity’ or a ‘drawdown with a guarantee.’ Although the term ‘variable annuity’ suggests that the product is a lifetime annuity, this is not always the case as it could be a Drawdown Pension. There is no ‘level playing field’ to compare like with like and each product may be slightly different.

Drawdown Pension ‘Third Way’ Products

A conventional drawdown pension offers flexibility and investment potential. Here, you invest in pension investment funds and these must deliver returns good enough to provide the income payments you need in the future. In very simple terms, a Drawdown Pension ‘Third Way’ product is a Drawdown Pension with a guarantee attached to it. This will typically provide a guarantee on the level of income you receive, regardless of the investment performance. The level of guaranteed annual income varies from product to product, and can be influenced by factors like your age. For example, for a 60 year old an income of 4% of the original investment may be offered, but for a 70 year old it could be 5%.

There are different product providers operating in this retirement option market place often with different approaches. Some products will offer to ‘lock-in’ future fund growth and re-set the level of guaranteed income at regular intervals should the fund value increase. The period at which lock-ins are considered can vary from product to product. For example one product may look to lock-in any growth at each anniversary; another could be every third anniversary. Other products will allow you to guarantee a level of income for both you and your spouse or civil partner, payable until the later death.

Annuity ‘Third Way’ Products

An annuity pays you an income for the rest of your life. You can buy an annuity with the insurance company of your choice. This is called the ‘Open Market Option.’ There are different types of annuities however and for Third Way pensions, a ‘Flexible Annuity’ is important. This is in fact an investment-linked annuity which satisfies three important conditions, shown below. A ‘Third Way’ product using a flexible annuity will provide a guaranteed level of income, regardless of investment performance for a variety of terms. The level of income that is guaranteed varies from product to product, and can be influenced by factors such as your age. The three important conditions are:

The annuity must be investment-linked. Investment linked annuities offer the same types of pension as conventional annuities but the annual pension income can go up or down. There are two types of investment linked annuity, with-profits annuities and unit-linked annuities. The guarantees are more often associated with the unit-linked versions.

At least once every three years the insurance company that sold you the annuity must conduct a review. The review covers the value of your retirement fund’s assets applied to the annuity.

At the review, the maximum and minimum amount of income that may be drawn in each year until the next review must be determined. This will be between 0% and 120% of the relevant GAD rates using the fund available for purchase.

On Death

Under ‘third way’ products, certain guarantees may be available.

Under a Drawdown Pension ‘Third Way’ product, a guarantee can be provided in relation to the value of the fund when you die. For example, the product may guarantee to provide the higher of the original investment amount or the fund value at your death. Other more sophisticated options available include an increasing guaranteed value on death that locks in any growth at regular intervals. Under the conventional Drawdown Pension option, a return on death is typically a return of the fund value at that point less a 55% tax charge. Any dependents may also have the option to buy a lifetime annuity with the fund or to continue taking a Drawdown Pension

Under an Annuity ‘Third Way’ product, a guarantee can be provided in relation to the amount available on death to provide an annuity protection lump sum and/or the amount available to provide a dependant’s annuity. Under the annuity option, a return on death is typically a return of the original purchase price less withdrawals and less a tax charge of 55%.

Delaying Annuity Purchase - Things to Consider

Gender Based Annuities

On the 1st March 2011, the European Court of Justice ruled that in the insurance services sector, gender-based annuity rates will be ruled discriminatory with effect from 21 December 2012.

Solvency II

New Solvency II rules come into force on 1 January 2014, for new annuities set up from this date. The rules are designed to make sure all providers can meet their financial obligations to their customers. In short, annuity providers are being asked to hold greatly increased capital reserves and the effect of setting aside further capital would translate into lower annuity rates for all annuitants. Solvency II also introduces a 'stress test' for mortality risk, meaning providers need to hold greater reserves in case their annuity book lives substantially longer, on average, than expected. Conventional annuity rates in the open market research will become increasingly important for retirees who opt for this secured form of lifetime income.

Other Product Options

Under Drawdown Pension ‘Third Way’ products, you have the option to transfer your fund to another provider’s Drawdown Pension product. Alternatively, you could use the fund to buy a conventional lifetime annuity with your current provider, or with another provider through the ‘Open Market Option’.

For an Annuity ‘third way’ product you have the option to take out an additional short term annuity, convert your annuity into a conventional lifetime annuity with your provider or switch to a drawdown pension. Certain providers will offer an early exit facility for a fixed term annuity so that a lifetime enhanced annuity can be secured.

Investment Limitations

When accessing guarantees, there are normally restrictions on the funds you can invest in and the overall exposure you can have to equity-based investments. This means you may experience lower growth than if you had access to more equity investments.

Guarantee Cost and Security

The cost of the guarantee should be carefully considered. In addition, if the provider of the guarantee failed, the guaranteed element could be lost. However, depending on the circumstances you could be entitled to compensation under the Financial Services Compensation Scheme.