SIPP Key Features, the key features of Sippdeal Self Invested Personal Pension (SIPP).

Other SIPP Products

The Financial Services Authority is the independent financial services regulator. It requires us, A J Bell Management Limited, to give you this important information to help you to decide whether our Sippdeal e-sipp 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.

Basics Basics

Its aims Its aims

To help you save for your retirement, taking advantage of the generous tax privileges available.
To provide benefits in retirement for you and/or your dependants.
To enable you to transfer your existing pension benefits (with certain exceptions) into a SIPP.
To enable you to direct how you would like your pension savings to be invested in a wide range of different types of investments.
To provide lump sum and pension benefits for your dependants following your death.

Your commitment Your commitment

To pay contributions, either single or regular, within HMRC limits for tax relief, and/or transfer existing pension benefits into your SIPP. There is however no penalty for ceasing contributions or reducing them within the limits set out in 'Are there any minimum contribution levels?' below.
To determine the most suitable investment strategy for you.
To regularly review your contribution levels, investment strategy and benefit levels (under income withdrawal).
You must normally wait until you reach age 50 (55 from April 2010) before taking any benefits.
To comply with the Sippdeal Terms and Conditions and to pay the SIPP Charges set out on our website.
To notify us immediately of any changes to your personal circumstances which might affect your SIPP, including your eligibility for tax relief on your contributions, or to receive benefits.

Risks Risks

Below is a brief summary of some of the risks that you may wish to consider.

Transfers in

By transferring other pension benefits into your SIPP you may be giving up the right to guarantees in the form of benefits, the amount you will receive and also the level of increases that will be applied to your pension in future.

You may be giving up the right to receive a terminal bonus on with-profit pension plans.

A penalty may be applied to your existing pension plan if it is transferred.

We offer an execution-only service and recommend that you seek professional advice from a suitably qualified financial adviser if you are considering transferring existing pension benefits into your SIPP.

Investments

The value of investments can fall as well as rise and is not guaranteed. You may get back less than the amount invested.

Past performance should not be seen as an indication of future performance.

You will be able to deal in a range of investments each of which carries a different level of risk.

If you have a smaller fund, or deal excessively, the value of your SIPP may be eroded and the costs may be disproportionate to the value of your SIPP.

Multiple investments and frequent dealing in small amounts may also result in excessive costs.

We do not make investment recommendations. Any investment information is provided solely to enable you to make your own investment decisions and must not be treated as a solicitation or recommendation to buy, sell or otherwise deal in any particular investment.

Income withdrawal

Taking income withdrawals may erode the capital value of your fund, especially if investment returns are poor and a high level of income is taken; this could result in a lower income than anticipated in future.

If income withdrawals near, or at, the maximum permitted by HMRC are taken, such income withdrawals may not be sustainable. The higher the pension you choose to receive, the higher the probability that your pension may have to reduce in the future.

If you continue income withdrawal after age 75 you must take an income between the minimum and maximum levels specified by HMRC. The maximum income permitted by HMRC will reduce significantly compared to that before age 75. The benefits payable on your death after age 75 will be more restricted and the remaining fund on your death may be subject to significant tax charges, including inheritance tax.

There is no guarantee that annuity rates will improve in the future. If you choose to purchase an annuity, the level of pension you receive when you purchase the annuity may be lower or higher than the pension previously being paid under income withdrawal and/or the annuity you could have purchased previously.

Under income withdrawal you will not receive the benefit of the cross subsidy from the funds of annuitants who have died that you would under an annuity.

General

The tax benefits and governing law for SIPPs may change in the future.

Your benefits are dependent upon a number of factors. Although not a complete list, these factors include future contribution levels, the age at which you commence benefits and external influences such as investment returns, inflation, interest rates, annuity rates and charges.

The investment returns on your fund may be less than those shown in any illustrations you may receive from us, or obtain yourself using our illustration tools.

The SIPP is offered on an execution-only basis without pensions advice. The SIPP and/or the investment services described may not be suitable for you. If you have any doubts about the suitability of the SIPP or you need advice, you must consult a suitably qualified financial adviser.

What is a SIPP?What is a SIPP?

It is a personal pension that allows you to invest in a wide range of investments, including stocks and shares quoted on the UK and a number of overseas stock exchanges; unit trusts, open ended investment companies (OEICs) and other collective investment schemes; and government and fixed interest stocks. (see 'What investments can I deal in?' below)

More information on the range of investments available is described below.

Can I have a SIPP?Can I have a SIPP?

You can have a SIPP regardless of your employment status. You can take out a SIPP if you are:

employed;
self employed;
a pensioner;
a carer;
in full time education; or
unemployed.

A SIPP can be established for a child under the age of 18, by a parent or legal guardian.

What are Stakeholder pensions?What are Stakeholder pensions?

Stakeholder pensions are relatively simple pension plans for which the Government has set minimum standards to be met by providers covering areas such as charges, minimum payment levels and terms and conditions.

Stakeholder pensions are generally available and may meet your needs at least as well as a SIPP. If you are in any doubt about the suitability of a SIPP you should contact a suitably qualified financial adviser.

Can the SIPP be used to contract out of SERPS/ the State Second Pension?Can the SIPP be used to contract out of SERPS/ the State Second Pension?

No.

What are the SIPP charges?What are the SIPP charges?

The SIPP charges are published in the Charges & Rates section of our website.

How do I apply?How do I apply?

You must apply online. We will then send you a pre-completed application form either by e-mail or post, whichever you prefer. You must check this form, sign it and return it to us with any additional documentation e.g. direct debit form or contribution cheque.

If you send a cheque for a contribution with your application form, you will normally be able to deal approximately 5 days after receipt.

If you have any problems applying then please contact us.

Contributions Contributions

Who can pay contributions into my SIPP?Who can pay contributions into my SIPP?

You can pay personal contributions into your SIPP. In addition, contributions can be paid by another person on your behalf (e.g. by your spouse, parent or grandparent).

All contributions paid by you, or on your behalf (except those paid by an employer) are payable net of basic rate income tax (20% for 2008/09). We will reclaim the basic rate income tax from HMRC. As an example, if you pay a net contribution of £800 then we will reclaim £200 from HMRC and credit it to your SIPP cash account.

If you are employed, your employer can also pay contributions into your SIPP. All employer contributions are payable gross.

Single lump sum contributions can be paid by cheque or electronic transfer.

Regular monthly contributions must be paid by direct debit.

Once your SIPP is established you can arrange to pay future single contributions and/or to increase/decrease your regular contributions at any time, subject only to the minimum contribution levels described below.

We will not accept any contributions after you reach age 75.

Are there any minimum contribution levels?Are there any minimum contribution levels?

The minimum single contribution is £1000 (gross). If a transfer payment is to be paid into your SIPP there is no requirement to pay contributions.

What if I am entitled to enhanced protection?What if I am entitled to enhanced protection?

It is very important to note that if you have registered with HMRC for enhanced protection (for pension rights built up before 6 April 2006) the payment of any contribution to your SIPP will lead to the loss of this protection.

Do I get tax relief on my contributions?Do I get tax relief on my contributions?

For each tax year, you will get tax relief on contributions paid by you, or on your behalf, of up to the higher of:

£3,600 (the Basic Amount); and
100% of your UK earnings.

If you do not have any UK earnings you can still pay a contribution of up to £3,600 a year and receive basic rate tax relief (your contribution will be payable net of basic rate income tax i.e. you will pay £2,880).

You will receive tax relief at your highest rate of income tax on all member contributions paid into your SIPP either by you, or on your behalf. We will reclaim basic rate tax for you from HMRC and credit it to your SIPP cash account and you can claim any higher rate relief via self assessment.

Tax relief will be credited to your SIPP cash account after between 6 and 11 weeks, depending upon when your contribution is paid.

If you are paying contributions on behalf of a child, or someone else (e.g. your spouse), then we will still reclaim the basic rate tax from HMRC and credit it into their SIPP cash account. You will not be eligible to claim higher rate tax relief on these contributions.

We will only accept contributions up to the limit for tax relief referred to above. You must tell us within 30 days if you are no longer entitled to tax relief on your contributions.

Any contributions from your employer do not count against the limit for tax relief referred to above. Your employer will normally receive tax relief on the contributions it pays on your behalf and you will not normally be taxed on these contributions.

How can contributions be paid?How can contributions be paid?

Contributions can only be paid by cheque, direct debit or electronic transfer.

If you wish to pay contributions by electronic transfer, please contact us and we will notify you of our requirements.

Can I pay contributions in the form of shares or other investments?Can I pay contributions in the form of shares or other investments?

No.

What is the annual allowance for contributions?What is the annual allowance for contributions?

The annual allowance is the mechanism by which HMRC restrict tax relief on large contributions.

The annual allowance is £235,000 for 2008/09 and will increase each year as set out below:

Year	Allowance
2009/10	£245,000
2010/11	£255,000

It may increase in future years, but this is not guaranteed.

If for any 'pension input period' ending in a tax year, the total of:

contributions to registered pension schemes paid by you, or on your behalf (including any paid by an employer); and
the increase in the value of your benefits under any final salary schemes

exceeds the 'annual allowance', you will have to pay a tax charge of 40% on the excess. A factor of £10 per £1 p.a. of pension will be used to value the increase in benefits under a final salary scheme.

For the purposes of your SIPP, the pension input period will always coincide with the tax year i.e. end on 5 April, unless you notify us that you wish it to end on a different date in any tax year. If you think that you may be affected by the annual allowance you should consult a financial adviser.

There will be no test against the annual allowance in the year in which you take all of your remaining benefits under your SIPP.

What happens if I change jobs or become unemployed?What happens if I change jobs or become unemployed?

You will be able to continue paying contributions, subject only to the limits on the amount of contributions that will receive tax relief as outlined above.

Transfers Transfers

Can I transfer my existing pension benefits into my SIPP?Can I transfer my existing pension benefits into my SIPP?

Yes. You can transfer benefits from any UK registered pension scheme into your SIPP.

Your SIPP cannot however accept any protected rights, or 'contracted-out', benefits. You will need to contact the administrator of the transferring scheme if you are unsure whether this applies.

You can transfer your existing pension benefits into a SIPP even if you have commenced income withdrawal (unsecured pension or alternatively secured pension) under the transferring scheme.

If income withdrawal has commenced under the transferring scheme, the value of those benefits will be held separately from the other benefits under your SIPP and will be subject to the same minimum and maximum income limits and review period as under the transferring scheme.

Please note that you will be responsible for arranging the transfer from the transferring scheme. It may take some time for us to receive the transfer payment from your existing provider.

Can I transfer investments held in another self invested personal pension into my SIPP?Can I transfer investments held in another self invested personal pension into my SIPP?

Yes, although certain investments cannot currently be transferred e.g. property and insurance company bonds, overseas shares and certain UK quoted shares which cannot be settled via CREST.

Any investments transferred 'in-specie' must be an acceptable investment for your SIPP (see 'What investments can I deal in?' below).

Please e-mail us with details of your portfolio of investments under the transferring scheme and we will advise you of our further requirements.

How do I transfer my existing pension benefits into my SIPP?How do I transfer my existing pension benefits into my SIPP?

By completing a Transfer Form and following the instructions set out on the form.

Can I transfer my SIPP to another pension plan?Can I transfer my SIPP to another pension plan?

You can transfer the full value of your SIPP to another UK registered pension scheme, at any time.

The transfer can either be in the form of a cash payment (in which case you will have to sell all of the investments held under your SIPP before the transfer is completed) or by an in-specie transfer of the SIPP assets to the receiving scheme.

The transfer will always be made direct to the trustees or administrator of the receiving scheme.

If the transfer is to an overseas scheme a check against your lifetime allowance must be carried out before the transfer payment is made (see 'How does the lifetime allowance work?' below) and so it is possible that a lifetime allowance charge may apply.

Investments Investments

What investments can I deal in?What investments can I deal in?

You can invest in stocks and shares quoted on the London Stock Exchange, this including exchange traded funds (iShares), shares quoted on AIM and investment trusts. A range of US and euro shares is also available.

You can also invest in unit trusts, open ended investment companies (OEICs), warrants, covered warrants and a range of government stock and fixed interest stock.

You can only buy UK quoted shares that can be settled via CREST. This includes more than 3,000 UK quoted and AIM listed shares, this accounting for approximately 98% of the market.

You will have access to approximately 1,900 unit trusts and OEICs, more than any other UK Fund Supermarket. All initial commission and any specially negotiated discounts on unit trusts and OEICs are passed on to your SIPP.

You can deal in most unit trusts and OEICs online with all other unit trusts and OEICs available via telephone dealing at no extra cost. See Funds List for further details.

What happens if there is a corporate action (e.g. rights issue) for one of my investments?What happens if there is a corporate action (e.g. rights issue) for one of my investments?

Our stockbrokers will write to you to seek your instructions. The onus is on you to ensure that there are cash funds available to cover any corporate actions you wish to take up.

How do I obtain a valuation of my SIPP?How do I obtain a valuation of my SIPP?

You can obtain a valuation of your portfolio 24 hours a day, 365 days a year via our website. An online cash transaction summary is also available.

We will also send you regular statements detailing all transactions on your account.

Is there a limit on how long I can keep my SIPP wholly invested in cash?Is there a limit on how long I can keep my SIPP wholly invested in cash?

No.

Is there a limit on how much of my SIPP I can keep in cash?Is there a limit on how much of my SIPP I can keep in cash?

No.

Do I pay tax on any dividends or gains within my portfolio?Do I pay tax on any dividends or gains within my portfolio?

No, as well as getting tax relief on contributions, there is no tax to pay on any dividends or capital gains. Tax deducted at source from dividends cannot, however, be reclaimed.

Are there any restrictions on what I can invest in?Are there any restrictions on what I can invest in?

Yes. Your SIPP cannot invest directly in:

commercial or residential property;
insurance company bonds;
private (unquoted) company shares;
PLUS shares;
personal chattels (e.g. works of art, cars etc.);
loans; or
any activity that could be regarded as trading.

Also, you cannot borrow money under your SIPP for the purpose of investment.

The A J Bell Group does offer another SIPP with a wider range of investments than Sippdeal, including commercial property. If you are interested please visit the A J Bell Group website.

Buying and Selling Investments Buying and Selling Investments

How easy is it to buy and sell investments?How easy is it to buy and sell investments?

Once you have logged into the dealing area of our website, you simply have to choose the investment you wish to buy, or sell.

If you are buying or selling UK (and certain US and euro) quoted shares, exchange traded funds, warrants, government stock or fixed interest stock the market price will appear for you and you have 15 seconds in which to choose to deal or not.

Unit trusts and OEICs are only priced once a day, typically at midday. If you submit your deal before 11:00am (UK Standard Time), you will normally deal at the price calculated on the same day. If you submit your deal after 11:00am (UK Standard Time) you will normally deal at the following day's price. Times vary between fund managers.

Please be aware that dealing in unit trusts and OEICs does not benefit from an automated settlement system (such as CREST) and there may be delays in your valuation reflecting recent purchases or sales of unit trusts or OEICs.

Is there a charge for processing dividends?Is there a charge for processing dividends?

No. These will be credited automatically to your Bank of Scotland SIPP cash account and will be specified separately on your statement.

Can I deal over the telephone?Can I deal over the telephone?

Yes, but in order to keep costs (and therefore your charges) to a minimum we would ask you where possible to submit deals online.

Most unit trusts and OEICs are available to deal online. All other unit trusts and OEICs are available via telephone dealing.

How long before I can invest any sale proceeds?How long before I can invest any sale proceeds?

You can reinvest sale proceeds immediately, except for sale proceeds from unit trusts and OEICs which may take longer.

Standard settlement is three days after dealing (known as T+3). Settlement in unit trusts and OEICs will be five days after dealing (known as T+5).

Sale proceeds and purchase costs will be automatically credited or debited to/from your SIPP cash account held with Bank of Scotland.

Can I place orders outside market hours?Can I place orders outside market hours?

Yes, we have a facility to enable you to place orders outside market hours, which are currently 8.00 am to 4.30 pm.

These orders will be processed as soon as possible after the next market opening, subject to the price limit imposed by you. If an order has not been executed by the close of the market on the day in which the order becomes active, the order will be cancelled.

There is also a limit minding and alert facility.

Is there a restriction on the size of deal?Is there a restriction on the size of deal?

The amount of shares available for any company is adjusted by the market makers and varies depending on the market at any one time.

If you wish to deal in a larger amount of shares than displayed on your screen, you will have the option to refer the deal directly to a dealer who will attempt to place the order manually, at no extra cost.

How do I know the price I have dealt at?How do I know the price I have dealt at?

For UK (and certain US and euro) shares, exchange traded funds, warrants, government stock and fixed interest stock, the dealing price is displayed when you place the order and is held for 15 seconds after which the market may change. The price is confirmed immediately the deal is done.

For unit trusts and OEICs the price will be confirmed on your contract note.

A contract note will be issued to confirm the deal via e-mail.

All investments are registered in the nominee company of our stockbroker, James Brearley & Sons, who are authorised and regulated by the Financial Services Authority.

Member Benefits Member Benefits

Is there a limit on the amount of my benefits?Is there a limit on the amount of my benefits?

There is no limit on the benefits that may be provided for you under your SIPP. However, if the total value of your pension savings, under all registered pension schemes, exceeds the 'lifetime allowance' (£1.65m for 2008/09) then there will be an additional tax charge, called the lifetime allowance charge, on the excess. For more information on the lifetime allowance and the lifetime allowance charge please see 'How does the lifetime allowance work?' below.

When can I take my benefits?When can I take my benefits?

You can commence benefits, irrespective of whether or not you continue to work, at any time between age 50 (55 if benefits commence after 5 April 2010) and age 75. It may be possible to commence benefits earlier if you are in serious ill-health.

If as part of a block transfer, you transfer pension rights to your SIPP from another registered pension scheme, under which you are entitled to commence benefits earlier than age 50 (i.e. because you are in a specialised occupation for which a lower minimum pension age had previously been agreed by HMRC), you may be able to take benefits from that earlier age.

How do I commence benefits?How do I commence benefits?

You must complete a Benefit Form to tell us how you want those benefits to be paid. The form will also ask you about your available lifetime allowance and any protection you have for benefits built up before 6 April 2006.

Can I have a lump sum?Can I have a lump sum?

Yes. You can have a pension commencement lump sum up to the lower of:

25% of the value of the fund designated to provide your benefits; and
25% of your unused lifetime allowance.

This lump sum is currently payable tax-free.

If you have registered with HMRC for enhanced or primary protection, or have a protected lump sum arising from a block transfer to your SIPP, then you may be entitled to a pension commencement lump sum of more than 25%. We will ask you to provide details of any protected lump sums on the Benefit Form.

You cannot take a pension commencement lump sum with the intention of recycling some, or all of it, either directly, or indirectly, to fund a significant increase in pension contributions. This is because the lump sum will be treated as an unauthorised payment. You would be taxed on the payment at between 40% and 55%. Your pension fund would also be subject to a further tax charge of between 15% and 40% (depending on how much of the tax charge you had paid).

What about pension benefits?What about pension benefits?

When you receive your pension commencement lump sum, the remaining fund will be designated to provide you with a pension in one of two ways:

Unsecured pension

Your unsecured pension fund remains invested and you draw an income from the fund (income withdrawal), up to the maximum level set by HMRC. There is no minimum level of income, so you can elect to receive a "nil" pension, if you wish.

You can choose to take a regular income and/or one-off pension payments to suit your individual circumstances.

The maximum level of annual income is set at 120% of the Government Actuary's Department's (GAD) relevant annuity rate, based on your age and the value of the unsecured pension fund at the date funds are first designated to provide unsecured pension and at each subsequent review.

The maximum income level will be recalculated every five years.

You can elect to have the maximum income level reviewed at each anniversary of the date funds were first designated to provide unsecured pension. You must make the election in advance of the relevant anniversary.

We will not allow the purchase of short term annuities to provide income from your unsecured pension fund.

You can choose to purchase a lifetime annuity with your unsecured pension fund at any time.

Unsecured pension can continue until you reach age 75 by which time you must have secured all of your pension benefits under your SIPP, by either converting your unsecured pension to alternatively secured pension or by the purchase of a lifetime annuity. Alternatively secured pension is a continuation of income withdrawal beyond age 75 (see 'What is alternatively secured pension?' below).

A further lifetime allowance check will be carried out before an unsecured pension fund is:

used to purchase a lifetime annuity before age 75; or
converted to alternatively secured pension at age 75

(unless the unsecured pension commenced before 6 April 2006 and no further funds have been added to that unsecured pension fund on, or after, that date).

The value crystallised for lifetime allowance purposes will be the value of the remaining unsecured pension fund less the amounts previously crystallised and designated to unsecured pension.

It is important to note that any unsecured pension funds transferred in from other registered pension schemes will be kept separate from any other funds held for you under the SIPP and will be subject to their own limits and review periods.

Before selecting unsecured pension you should read the 'Income withdrawal' section under 'Risks' above.

Lifetime annuity

Purchasing a lifetime annuity involves passing the value of your SIPP to an insurance company of your choice who in return will provide you with a regular, taxable, income throughout your life.

The annuity available will depend on the value of your fund and the annuity rates at the date of purchasing the annuity.

The annuity income may increase each year; may be guaranteed for up to ten years (i.e. paid irrespective of whether you are alive) and may continue, normally at a reduced level, to your surviving spouse or dependant.

If an annuity is purchased, you will cease to have any involvement with the investment of your pension fund. This may be a price worth paying if security of income is an important issue.

What is alternatively secured pension?What is alternatively secured pension?

Alternatively secured pension is a continuation of income withdrawal from age 75. As with unsecured pension, your SIPP fund will remain invested and you will be able to choose how much income to withdraw each year between the minimum and maximum limits set by HMRC.

For alternatively secured pension, the minimum income which must be taken each year is 55% of the GAD relevant annuity rate for a 75 year old. The maximum income that can be withdrawn is 90% of the GAD relevant annuity rate for a 75 year old.

The minimum and maximum income levels are reviewed annually based on the value of the fund at the review date but using the GAD relevant annuity rate for a 75 year old, regardless of your age at the time.

You can choose to purchase a lifetime annuity with your alternatively secured pension fund at any time.

Before selecting alternatively secured pension you should read the 'Income withdrawal' section under 'Risks' above.

Do I pay tax on pension payments?Do I pay tax on pension payments?

All pensions paid to you will be subject to income tax under PAYE. We will deduct the tax due before paying your pension and will account for it to HMRC.

If a lifetime annuity has been purchased, the insurance company will be responsible for the payment of income tax.

How does the lifetime allowance work?How does the lifetime allowance work?

The Government has set the standard lifetime allowance at £1.65m for 2008/09 and it will increase as follows:

Year	Allowance
2009/10	£1.75m
2010/11	£1.8m

It may increase in future years, but this is not guaranteed.

Each time new benefits commence ("crystallise") a portion of your lifetime allowance is used up.

Once you have used up your lifetime allowance, any benefits paid above the allowance will be subject to the lifetime allowance charge. If excess funds are used to provide a taxable pension, the lifetime allowance charge is 25% of the excess above the lifetime allowance. Alternatively if excess funds are paid as a lump sum, called a lifetime allowance excess lump sum, the lifetime allowance charge is 55%. We will deduct this tax charge from your fund and pay it to HMRC before paying your benefits.

If you have built up substantial pension savings before 6 April 2006 and have registered for enhanced and/or primary protection ('transitional protection') with HMRC then this may reduce, or eliminate, any lifetime allowance charge that would otherwise be payable.

Death Benefits Death Benefits

What happens if I die before age 75?What happens if I die before age 75?

Uncrystallised funds

The scheme administrator will decide who will receive benefits and the form of the benefits, in its absolute discretion. However, it will take into account any wishes you have expressed through the completion of a death benefit nomination. You may complete a new nomination at any time.

Death benefits will normally be paid as a lump sum but pensions may be provided for a spouse and/or dependant, either under income withdrawal or by annuity purchase.

Lump sum payments on death are normally free of any inheritance tax but we cannot guarantee that this will be the case. You must consult a financial adviser if you are unsure.

Unsecured pension funds

The scheme administrator will decide who will receive benefits and the form of the benefits, in its absolute discretion. However, it will take into account any wishes you have expressed through the completion of a death benefit nomination.

The value of your fund can be used to pay benefits in the form of:

a lump sum, subject to deduction of a 35% tax charge; and/or
a pension for your spouse and/or dependant, either by way of an annuity purchase or under income withdrawal.

Lifetime annuity

If you die after an annuity has been purchased then the benefits payable, if any, will be determined by the terms of the annuity contract.

What happens if I die after age 75?What happens if I die after age 75?

Alternatively Secured Pension

If your pension is being paid under alternatively secured pension then the full value of your alternatively secured pension fund will be applied to provide pension benefits for your surviving spouse or dependants, either in the form of income withdrawal, or through the purchase of an annuity.

The scheme administrator will decide who the pension will be paid to but will take into account any wishes you have expressed by completing a nomination.

If you do not leave a surviving spouse, or dependant, then the value of your fund may be paid to a charity nominated by you for this purpose. Again, you can complete a nomination to indicate which charity you would wish to receive benefits.

Any funds paid to a charity, or paid out in pension benefits to your spouse, or dependants, will be exempt from inheritance tax (IHT).

If on your death you have no dependants and have not nominated a charity to receive any remaining fund, then the scheme administrator may be able to pay a lump sum to your family or other beneficiaries. This payment will be an "unauthorised payment" and will be subject to very significant tax charges, including IHT.

We will deduct any IHT and any taxes payable by the scheme from your fund and pay them to HMRC before paying any death benefits. Any other tax charges will be payable by the recipient.

If you are considering ASP, you should consult a suitably qualified financial adviser for more information on the benefits that can be paid on your death and the tax charges payable.

Lifetime Annuity

If you have purchased an annuity then the benefits payable, if any, will be determined by the terms of the annuity contract.

Miscellaneous Miscellaneous

Your right to change your mind Your right to change your mind

You have a legal right to cancel your SIPP, if you change your mind. You will have 30 days from the date that you receive our letter confirming the establishment of your SIPP to cancel, if you wish.

Cancellation rights will also apply to any additional transfer payments received. You will have 30 days from the date that you receive our letter acknowledging the transfer to exercise your right to cancel.

You may exercise your right to cancel by writing to us at:

A J Bell Management Limited
Trafford House
Chester Road
Manchester M32 0RS

Fax No: 0870 240 0513

or by e-mail at enquiry@sippdeal.co.uk

quoting your name and SIPP reference number.

You must state whether you wish to cancel your SIPP, or whether you only wish to cancel a specific transfer. We will acknowledge your notification and confirm what additional information, if any, is required.

Effects of cancellation

If you do cancel your SIPP then we will repay any contributions we have received to the person who paid them.

If you cancel after a transfer payment has been paid to your SIPP we will attempt to repay the amount received to the transferring scheme. However, the transferring scheme may refuse to accept the repayment, or only accept it on different terms to those applying prior to the transfer, in which case we will require your instructions on whether to pay the amount to another registered pension scheme. If we have not received your instructions within the 30 day period we reserve the right to take reasonable administration charges from your SIPP until such time as we are able to make the transfer to another registered pension scheme.

If you do not exercise any of the cancellation rights covered above you will not be able to cancel your SIPP, or any relevant transfer at a later date. You will, however, be able to transfer your benefits to another registered pension scheme or, if applicable, purchase an annuity.

Lapsing your cancellation rights

You will not normally be able to make any investment until the 30 day cancellation period has ended. However, if you wish to make an investment within this period you can choose to lapse your cancellation rights. If you do lapse your cancellation rights then you will not be able to cancel your SIPP and have a refund of contributions, or have the transfer payment repaid to the transferring scheme, after the effective date of the lapse of your rights.

You may lapse your cancellation rights by giving us notice in writing to the address shown above, or by giving instructions to make an investment within the 30 day cancellation period. Please consider carefully before giving us any such investment instructions because by doing so you will be lapsing your cancellation rights and you will not be able to cancel your SIPP after those instructions have been received.

Cancelling USP or ASP

On the first occasion that you choose to take unsecured pension (USP) or alternatively secured pension (ASP) you will have the right to cancel the option within 30 days of the date that you crystallise benefits (USP) or your 75th birthday (ASP).

If you do cancel you will have to return any pension commencement lump sum or income that has already been paid to you. For ASP you will then have to purchase an annuity or transfer the fund to another pension provider.

What is the Sippdeal e-sipp?What is the Sippdeal e-sipp?

If you establish a SIPP you will become a member of the Sippdeal e-sipp, a personal pension scheme registered with HM Revenue & Customs (HMRC) under Chapter 2 of Part 4 of Finance Act 2004.

The scheme is governed by a trust deed and rules, as amended from time to time. This Key Features document summarises the main provisions of the rules and of the HMRC regulations that apply to registered pension schemes. However, in the event of any discrepancy between the Key Features and the trust deed and rules the trust deed and rules will prevail. A copy of our Scheme Rules can be downloaded from our website as a PDF file.

Please read these Key Features and the Sippdeal Terms and Conditions carefully before completing the application form.

Will you pay any benefits not described above?Will you pay any benefits not described above?

These Key Features describe the main forms of authorised payments that can be paid by a registered pension scheme. We cannot be compelled to make any payment that is not authorised by Finance Act 2004.

We are required to report any unauthorised payments to HMRC. If an unauthorised payment is made, then you, or the person who receives the payment, will be subject to an additional tax charge of between 40% and 55% of the payment. Your SIPP will also be subject to a further tax charge of between 15% and 40% of the payment, depending on the amount of the tax charge that you have paid. In extreme circumstances, HMRC may de-register the SIPP in which case a further tax charge of 40% of the value of the SIPP will be payable to HMRC.

How secure is my money?How secure is my money?

A J Bell Management Limited is the Scheme Administrator of the Sippdeal e-sipp and is responsible for the day to day administration and management of the scheme. Sippdeal Trustees Limited, a wholly owned subsidiary of A J Bell Management Limited, is the trustee of the scheme.

A J Bell Management Limited is part of the A J Bell Group, one of the UK's leading SIPP administrators with assets under trusteeship exceeding £5bn.

A J Bell Management Limited is authorised and regulated by the Financial Services Authority. Sippdeal Trustees Limited does not conduct any regulated activities and is, therefore, not regulated.

Bank of Scotland is the provider/establisher of the Sippdeal e-sipp. The Bank will satisfy any statutory obligations that it may have from time to time, as provider/establisher of the Sippdeal e-sipp.

The investment dealing service is provided by James Brearley & Sons Limited, on behalf of A J Bell Management Limited.

All investments are held in the James Brearley & Sons nominee account. All uninvested cash is held in a James Brearley & Sons individual nominee SIPP cash account with Bank of Scotland. This is established practice in the stockbroking industry, a nominee facility eliminates the delays and expense associated with a paper based dealing system. The nominee account is managed in accordance with procedures approved by the Financial Services Authority including a monthly reconciliation of all shareholdings. You will receive regular statements.

James Brearley & Sons have been established since 1919 and are Members of the London Stock Exchange. James Brearley & Sons are regulated by the Financial Services Authority.

At no stage are your shares or cash exposed to the credit risk of A J Bell Management Limited, Sippdeal Trustees Limited or James Brearley & Sons.

Are there any compensation arrangements covering my SIPP?Are there any compensation arrangements covering my SIPP?

Yes. The Financial Services Compensation Scheme (FSCS) has been set up to deal with compensation, if firms are unable to meet claims made against them.

The amount of compensation available under the FSCS depends on the type of business and the circumstances of the claim. Further information about the compensation arrangements is available from the Financial Services Compensation Scheme (www.fscs.org.uk).

Can I give authority to someone else to operate my SIPP?Can I give authority to someone else to operate my SIPP?

Yes. A copy of our Authority Form can be downloaded from our website as a PDF file.

Can I see a copy of the terms and conditions?Can I see a copy of the terms and conditions?

A copy of our Terms and Conditions can be downloaded from our website as a PDF file. You must read them carefully before signing your application form.

Can Sippdeal provide me with advice?Can Sippdeal provide me with advice?

Sippdeal, A J Bell Management Limited and Sippdeal Trustees Limited cannot provide any advice in relation to:

The suitability of a SIPP in your circumstances;
The level of contributions you can, or should, pay;
Whether you should transfer existing pension benefits into your SIPP;
Which stocks and shares to buy/sell;
Whether to buy an annuity or elect for income withdrawal;
Whether, or not, you should apply for transitional protection for pension rights built up before 6 April 2006; or
Tax or financial services related matters.

If you need any advice then you must contact a financial adviser. Your adviser will give you details about the cost of advice.

Can I download Sippdeal forms?Can I download Sippdeal forms?

Yes, the following forms can be downloaded in PDF format from our website.

To view and print a PDF file requires Adobe Acrobat Reader ®. A free copy of this can be downloaded from Adobe.

Are there any independent booklets available?Are there any independent booklets available?

Yes, the HM Revenue & Customs have produced a number of booklets that can be viewed or downloaded from the HM Revenue & Customs' website.

www.hmrc.gov.uk/manuals/rpsmmanual/ - HM Revenue & Customs Registered Pension Schemes Manual - This is a detailed guide to registered pension schemes.

www.hmrc.gov.uk/pensionschemes/individuals.pdf - HM Revenue & Customs factsheet 'Pensions Simplification and You'.

To view and print a PDF file requires Adobe Acrobat Reader ®. A free copy of this can be downloaded from Adobe.

What if I have any further questions?What if I have any further questions?

You must contact us at the address shown below or via our website.

What if I have a complaint?What if I have a complaint?

Please write to the Compliance Officer in the first instance at:

A J Bell Management Limited
Trafford House
Chester Road
Manchester
M32 0RS

If you are not satisfied with our response, you may refer your complaint to the Pensions Ombudsman, if your complaint concerns the administration of your SIPP.

Help is also available from The Pensions Advisory Service (TPAS) who can advise you on how to complain and may be able to sort the matter out, without the need for the Ombudsman to get involved. The address for both the Pensions Ombudsman and TPAS is as follows:

11 Belgrave Road
London
SW1V 1RB
Tel: 0845 601 2923

All other complaints may be referred to:

The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR
Tel: 0845 080 1800

Making a complaint will not affect your right to take legal proceedings.

Important Important

The information contained in this Key Features document is provided based on our understanding of current law, practice and taxation which may be subject to change.

Full details of the legally binding contract between you and A J Bell Management Limited are included in the SIPP Terms and Conditions.

The law of England and Wales will apply in all legal disputes.

If you would like a copy of this or any other item of our literature in large print, Braille or in audio format, please contact us on 0870 240 0512 or by e-mail: enquiry@sippdeal.co.uk

All of our literature and future communication to you will be in English.