Terms of Business - For clients who receive discounts from Power Robbins for lump sum investments,
regular savings investments or life assurance

Those who advise on life assurance, pensions or unit trusts are EITHER independent advisers OR representatives of one company. Power Robbins is independent and will act on your behalf in arranging life assurance or unit trust products. Because Power Robbins is independent they can arrange investments using the products of different companies.

Power Robbins is authorised and regulated by the Financial Services Authority (FSA) for investment business. We are authorised by the FSA to advise on and arrange life assurances, pensions, personal equity plans & collective investments, and are bound by its rules.

This Terms of Business Letter has been produced especially for Execution Only clients. EXECUTION ONLY means that the investment has been chosen by the investor, who has not required or received any advice. The investor therefore accepts full responsibility for both the merits and the suitability of the investment. Our Investment Discount service is for arranging investments but not for realising, reviewing, cancelling or cashing-in of investments. We will, however, act for transfers of personal equity plans and individual savings accounts, also for re-registrations of holdings into a fund market, where the investment is not realised or cashed in, but transferred to another manager.

Please follow our investment instructions which appear in our brochures, and on our newsletters. Our offers may change from time to time, and should be checked before any investment is made, unless you have recent information from us.

All investments must be made using an application form (including unit trusts). We will not hold on to applications for you in order to exercise our judgement as to the best time to buy into a fund. Applications will be sent straight on to the provider unless you give us clear written instructions otherwise – i.e. to hold the application until you contact us again, or to forward the application on a certain date. Should an application be incorrectly completed or unsigned and the investment manager tells us they will not accept it, we will try to phone you for instructions, otherwise the application form and investment cheque will be returned to you for re-issue.

Please complete and sign an Investment Agreement with each investment (or group of investments sent together). Application forms should be sent via our office, NOT direct to the provider. If a discounted investment is handled by us which is not on our discount list, we will tell you our offer in writing, and your understanding of our offer would be noted on our Investment Agreement form, when investing.

WE DO NOT HANDLE CLIENTS’ MONEY.

We never accept an investment cheque made out to us, nor do we handle cash. All investment cheques must be payable to the insurance company or investment manager, not to us. If we receive an investment cheque mistakenly made payable to ourselves we will return it for re-issue.

Applications will be registered in the name(s) detailed on the application form. Documents of title will usually be sent to you by the investment manager. Documents of title sent via ourselves will be forwarded to you as soon as practicable after receiving them: where a number of documents relating to a series of transactions is involved, we will normally hold them until the series is complete and then forward them. Documents are sent by ordinary post.

We keep records of business transactions for 6 years. You have a right to inspect copies of contract notes, vouchers and entries in our books or computerised records relating to your business. As we treat all our clients’ records as confidential, we reserve the right to give you copies of your records if otherwise we would be allowing access to another client’s records. If you should have any complaint regarding our handling of a discounted investment, please write to The Compliance Officer, Power Robbins, Fileturn House, Church Road, Bookham, Leatherhead, KT23 3JP (tel 01372 457965). We will provide you with a copy of our Complaints Procedure at the time, as well as details of what action you may take if you are not happy with the outcome of any complaint you may make, including details of the Financial Services Ombudsman Service. As an investment discount client you would not have any complaint about any investment’s performance, as decisions on the merits of execution only investments and the suitability of any discounted investment for your own circumstances would have been your own.

We look forward to having an ongoing, and mutually beneficial business relationship with all our clients. However, we do reserve the right to decide not to deal with clients again in the future. We would write and tell the client concerned of this decision if we regretfully, and unusually, had to make it.

Our income is normally commission paid by life assurance companies, individual savings account, personal equity plan and unit trust managers with whom investments are made. A very generous proportion of this commission is paid to you, either by enhancing your investment or by monetary payment. You will receive from the investment/insurance company or from us, information about the commission we receive. If you ask, we will tell you how much the commission was on any other investment we arranged for you. If we receive commission or any other form of benefit from the issuer of a security or another intermediary, we will inform you, and tell you the amount if you ask. We do not normally charge fees but if we proposed to do so, we would tell you in writing what they will be (or how they will be calculated) before carrying out any chargeable transaction.

It is possible, but very unlikely, than an insurance/investment company could require us to return commission to them for an investment following an action of yours (for example late cancellation of a policy, or in very rare circumstances, if you cashed in a policy that had no exit charges, in the early years). If we had already paid you by giving up commission into the investment concerned, or by cashback cheque, you would be deemed, by signing our Investment Agreement, to have agreed to return to us any commission required back by the insurance/investment company, within 4 weeks of our request.

Cashback cheque payments, where applicable, are normally sent out early in the month following our receipt of commission. This is usually about 6 to 8 weeks after investing, but may take longer (for example for investments in “Income & Growth” plans).

If a discounted investment was arranged on indemnity terms we would normally hold any cash back until after the indemnity period. However, we would usually use commission sacrifice to boost your plan or reduce your premium instead (ie a discount, not cash back).

We are obliged to verify the identities and addresses of applicants as required by the UK Prevention of Money Laundering Regulations. Verification of customers’ personal identities and addresses will normally be carried out electronically using an external reference agency. We will request documentary evidence from clients when the required evidence is not available electronically.

Applications for investments and life insurance contracts must be accompanied by one of our Investment Agreement forms, completed and signed by all applicants. These confirm that the applicant/s has read Power Robbins’ terms of business and the investment/insurance company’s literature about the transaction. The Investment Agreement also confirms the financial offer that the applicant/s understands they will receive from Power Robbins, the Execution Only status of the transaction, and the arrangements described in the paragraph above for Power Robbins carrying out our obligations with regard to the prevention of money laundering.

FSA requires us to point out that investors using Execution Only services of Independent Financial Advisers do not receive “Suitability” letters, also that there is no compensation scheme for Execution Only business. Investors transacting Execution Only instructions via Power Robbins do not have cancellation rights.

We are Independent Financial Advisers but it could happen that we, or one of our other customers had an interest in the business that we were transacting for you. If we became aware that our interests or those of another customer conflicted with your interests, we would inform you in writing and obtain your consent before carrying out your instructions.

We maintain professional indemnity insurance. We hope you have found this information helpful, and look forward to giving you continuing service as one of our Investment Discount clients.

P F Power
22/11/2006

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