Old Mutual International Ireland European Portfolio Bond

OLD MUTUAL INTERNATIONAL IRELAND EUROPEAN PORTFOLIO BOND REASONS WHY FOR THE INDIVIDUAL INVESTOR

For financial advisers only

This document suggests some of the ‘reasons why’ to invest in this product that you may wish to incorporate within your recommendation letters for your UK resident clients. You will, of course, need to relate these to your clients’ own circumstances. You are responsible for ensuring your recommendations comply with the rules and guidance issued by your regulatory body. Old Mutual International Ireland dac cannot accept any responsibility in this respect. The information provided in this document is not intended to offer advice.

It is based on Old Mutual International Ireland’s interpretation of the relevant law and is correct at the time this document was updated. While we believe this interpretation to be correct, we cannot guarantee it. Old Mutual International Ireland cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained in this article.

All references to Old Mutual International Ireland in this document mean Old Mutual International Ireland dac.

Overleaf you will find a contents page showing the topics that are included in this document; it also includes hyperlinks to each heading for ease of navigation. Contents

What is the Old Mutual International Ireland European Portfolio Bond?

3 Reasons why an Old Mutual International Ireland European Portfolio Bond Simplicity Asset transfer facility (minimum amount £50,000) Share sale facility (UK residents only) Asset choice Investing in a Collective Investment Account* via an Old Mutual International Ireland European Portfolio Bond Future aspirations and objectives Using an existing authorised custodian Appointing a fund adviser Investment flexibility Risk profile Currency Access Asset charges Valuations Trusts

8 Tax planning reasons for an Old Mutual International Ireland European Portfolio Bond Gross roll-up Tax reporting Policy segmentation Capital gains tax Timing 5% tax deferred withdrawal allowance Chargeable events Taxation on chargeable event gains Top-slicing relief Cashing in the policies in your bond when you are not UK resident Time-apportionment relief Assignment

10 Taxation when holding funds on the platform

11 Risk warnings Currency conversions Funds with stocks in specialist sectors Funds with investments in emerging markets Funds with holdings in a different currency Money market funds Property funds Past performance

12 About Old Mutual International Ireland

12 Regulatory stability

12 Policyholder protection

14 Our Awards

of 14 What is the Old Mutual International Ireland European Portfolio Bond?

The Old Mutual International Ireland European Portfolio Bond is an offshore bond which allows you to hold a wide range of investments in one place. Offshore bonds offer greater flexibility for tax planning by allowing you to choose when to take the proceeds, which may or may not be liable to tax.

The Old Mutual International Ireland European Portfolio Bond is automatically issued as a group of 12 policies, but to enhance the future flexibility of the bond you can select a different number of policies when applying to set it up. (See ‘policy segmentation’ later on in this document for further information.)

Life assurance basis

As your Old Mutual International Ireland European Portfolio Bond is a whole of life contract it will have one or more ‘lives assured’, which means the policies will come to an end when the last person(s) whose life is covered by the policies dies. If you, as the owner of the Old Mutual International Ireland European Portfolio Bond, are the only life assured, then on your death a chargeable event would occur. However, by having multiple lives assured you can defer the chargeable event on death as it would occur when the last person who is a life assured dies. Old Mutual International Ireland has a flexible approach to the number of lives assured that can be included at the start of the contract.

The Old Mutual International Ireland European Portfolio Bond includes life assurance cover of 101% of the surrender value. This means that on the death of the last life assured, the person(s) who is entitled to the policy proceeds at the time will receive 101% of the surrender value provided the policies have not already been cashed in. For example, if the life assured is not the same person as the policyholder, then the proceeds will be paid to the policyholder(s). However, if the policyholder and life assured is the same person, and the Old Mutual International Ireland European Portfolio Bond only has one policyholder, then the proceeds will be paid to the legal personal representatives of the policyholder's estate. Reasons why an Old Mutual International Ireland European Portfolio Bond

 Simplicity The European Portfolio Bond is powered by Wealth Interactive, Old Mutual International Ireland’s innovative online wealth management service.

Wealth Interactive provides you with an at-a-glance view of your European Portfolio Bond, and a straightforward, clear and transparent way to access your information.

You can sign in to your own secure online service account and review your policy, including your portfolio of assets, whenever you have access to the internet. You’ll be able to check the latest available facts and figures about your investments and keep up to date with any changes made by your financial adviser.

Wealth Interactive is supported by Old Mutual International Ireland’s large, highly experienced customer service team, their investment administration department and their knowledgeable technical team. So, if you need any help with the system, just call Old Mutual International Ireland.

continued Reasons why an Old Mutual International Ireland European Portfolio Bond (continued)

Wealth Interactive will let you see everything you need to know about your bond, including:  its current value  how your assets have performed since you started  a library of all the correspondence you’ve received from us  a history of the transactions you or your financial adviser have placed Page 3 of 14  access to factsheets for the assets you hold.

Wealth Interactive can help you feel more involved with your investment because you can see how it’s performing and react quickly to any changes. When you discuss your policy with me, you’ll already have all the latest facts at hand.

Wealth Interactive makes your life easier because you can now update your personal details quickly and easily online, as well as approving key transactions electronically and reducing the amount of paperwork you need to sign and file.

You can also view any correspondence between you and Old Mutual International Ireland about your policy in your Wealth Interactive account. I, as your financial adviser, can even request your online approval of transactions such as buying and selling assets – this will speed up the approval process and ensure that transactions happen faster.

You can then sign in to review the transaction and submit or request changes if you wish.

Old Mutual International Ireland also shares important information with me as financial adviser, to help me provide you with the best possible service. Wealth Interactive gives me easy access to data, tools and insight I need to manage your portfolio and help you optimise your wealth. It also provides support and services to help me plan your portfolio of assets and keep it on course to achieve your long-term goals. Altogether, Wealth Interactive will make investing a much more interesting and engaging process for you.

 Asset transfer facility (minimum amount £50,000) You can transfer your existing funds or assets into your Old Mutual International Ireland European Portfolio Bond in order to consolidate and hold them all within one wrapper. The paperwork is simple and kept to a minimum. Please note any asset transfer is subject to Old Mutual International Ireland’s approval.

 Share sale facility Through Old Mutual International Ireland you can take advantage of the share sale service offered by leading stockbroker Charles Stanley. This service offers you a convenient way to sell your quoted shares, fixed interest securities (such as gilts, corporate bonds and eurobonds), unit trusts or open-ended investment companies (OEICS) and reinvest the proceeds in the Old Mutual International Ireland European Portfolio Bond. The service is available at a competitive rate. Additionally, if the amount you are investing into the Old Mutual International Ireland European Portfolio Bond following the share sale is over £25,000, then Old Mutual International Ireland will pay the charges applicable to this service for you.

 Asset choice By investing in an Old Mutual International Ireland European Portfolio Bond you will have almost unlimited access to authorised collective investments around the world, in most major asset classes and currencies. You can link your Old Mutual International Ireland European Portfolio Bond to:

 more than 1,000 funds available on our platform  any external collective investment funds, funds with UCITS status, SICAVs, FCPs, open-ended exchange-traded funds or unit trusts agreed with Old Mutual International Ireland*  bank deposits.

This not only provides greater opportunity to create a portfolio tailored to your individual risk profile and Page 4 of 14 objectives, but also reduces the investment risk associated with this type of investment through the ability to diversify your portfolio of assets.

Please note that all the underlying assets that you link to your European Portfolio Bond to are owned by Old Mutual International Ireland. All the rights relating to these assets belong to Old Mutual International Ireland. However, the value of your Old Mutual International Ireland European Portfolio Bond, which you own, and the amount you get back will be directly linked to the performance of the funds/assets you have chosen.

* You can find more details about the different types of investment in the key features of your Old Mutual International Ireland European Portfolio Bond document.

 Investing in a Collective Investment Account* via an Old Mutual International Ireland European Portfolio Bond We discussed the administrative efficiency and added flexibility of easy switching when holding a Collective Investment Account inside your Old Mutual International Ireland European Portfolio Bond. The online switching facility on the platform (available via myself) provides you with a known cost when you want to change your fund choice on the platform as switching between funds are free of any Old Mutual International Ireland dealing charges when using this facility.

Please note that Old Mutual International Ireland will apply to Old Mutual Wealth Limited to set up a separate account, ie a Collective Investment Account, for your chosen funds. Old Mutual International Ireland will own the Collective Investment Account. However, the value of your Old Mutual International Ireland European Portfolio Bond, which you own, and the amount you get back will be directly linked to the performance of the funds/assets you have chosen to hold inside the Collective Investment Account. Please note if you wish to view a breakdown of all the assets held within your Collective Investment Account you will need to log on to the platform. You can view the total amount held through Wealth Interactive.

* Provided by Old Mutual Wealth Limited. Note to financial adviser: When recommending the client to invest in a Collective Investment Account via an Old Mutual International Ireland European Portfolio Bond, please consider the taxation of funds held on the platform. See ‘taxation when holding funds on the platform’ later in this document.

 Future aspirations and objectives The flexibility to switch between a wide range of assets is particularly important should the performance of the assets chosen not meet your expectations, or alternatively if your attitude to risk changes.

 Using an existing authorised custodian You already have a custodian arrangement in place and by investing in the Old Mutual International Ireland European Portfolio Bond you can continue your existing arrangement within the European Portfolio Bond subject to Old Mutual International Ireland’s approval. Alternatively you can choose to set up a new custodial arrangement, again subject to Old Mutual International Ireland’s approval. continued Reasons why an Old Mutual International Ireland European Portfolio Bond (continued)

 Appointing a fund adviser You already have a fund adviser who looks after your investment portfolio and by investing in the Old Mutual International Ireland European Portfolio Bond you can continue your existing arrangement subject to Old Mutual International Ireland’s approval. Alternatively you can choose to appoint a new fund adviser, again subject to Old Mutual International Ireland’s approval.

As an Old Mutual International Ireland European Portfolio Bond policyholder, you can take advantage of Old Mutual International Ireland’s experience, excellent customer service and specialist administration team. I can also call on Old Mutual International Ireland at any time for technical support, from tax information to administrative issues. Plus we can monitor and manage your European Portfolio Bond through Old Mutual International Ireland’s innovative online service: Wealth Interactive.

If you want, you can nominate an independent fund adviser to work alongside me.

There are two types of fund adviser:

of 14  An advisory fund adviser can guide you both through the process of choosing assets and then manage your portfolio for you. However, all decisions will ultimately be made by you.  You can also go one step further and allow your fund adviser to make decisions on your behalf in line with pre-agreed boundaries. This role is sometimes known as a ‘discretionary manager’.

 Investment flexibility You can request to make an additional investment whenever you want, subject to Old Mutual International Ireland’s approval. The minimum additional premium is £2,500 (US$3,750, €3,750 or other currency equivalent).

 Risk profile When deciding which provider to invest with it is important to consider the investment choice. The flexibility to change your investment strategy or fund manager in the future is important should your investment objectives or risk profile change.

 Currency The Old Mutual International Ireland European Portfolio Bond offers a choice of currencies in which to pay your premiums and denominate your policy currency. You can hold assets in many different currencies, with the added benefit that all your valuations will be summarised in your chosen policy currency. Note to financial adviser: Remember the appropriate risk warnings regarding exchange rate fluctuations. For examples, see the section on risk warnings later on in this document.

 Access With the Old Mutual International Ireland European Portfolio Bond you have easy access to your investment, although see risk warning regarding property funds. One of the most attractive features of a bond is the withdrawal facility. You can set up regular withdrawals and ask for payments to be made on either a monthly, quarterly, half-yearly or yearly basis.

Alternatively you can make one-off withdrawals or cash in your policies at any time by writing to Old Mutual International Ireland at their administration centre or submit these requests online via Wealth Interactive through your secure service account. Note to financial adviser: Please also see information on 5% tax deferred withdrawal allowance. Please see risk warning regarding property funds.

 Asset charges With more traditional structures, if a particular investment is underperforming, changing investment strategy or fund manager may result in exit penalties, a possible tax liability as well as new initial charges on a new asset. An asset dealing charge of £15 (or currency equivalent) may apply each time you buy or sell an asset.

An Old Mutual International Ireland European Portfolio Bond allows you to postpone paying tax by timing any withdrawals carefully. This is because, as the bond is a life assurance, it is considered a ‘non-income producing asset’ for UK tax purposes.

As long as it’s held by the original owner, the bond is not immediately liable for UK capital gains tax, so you have the freedom to buy and sell different investments as often as you want without creating any immediate personal tax liability.

Old Mutual International Ireland is based in a tax-efficient environment and is not currently liable to income tax, capital gains tax or corporation tax on assets linked to policies they issue, so your investment will be able to grow virtually tax free.

Some of the dividends earned by the assets linked to your bond may be liable for ‘withholding tax’ in their country of origin and therefore only the net value of the dividend will apply to the value of your bond. However, once the dividends form part of the assets linked to your bond they can accumulate tax free. This tax-efficient environment means you can make the best use of your own personal tax allowances. Changing the assets linked to your bond will also be tax free in Ireland.

The Old Mutual International Ireland European Portfolio Bond offers flexibility in switching between fund Page 6 of 14 managers and changing assets, even those of different currencies. A dealing charge of £15 (or currency equivalent) may apply each time you buy or sell an asset. However, the cost of changing assets within the Old Mutual International Ireland European Portfolio Bond when compared to holding funds or assets directly is, generally, significantly cheaper. Note to financial adviser: The Old Mutual International Ireland dealing charge does not apply for funds held on the platform as described earlier in Investing in a Collective Investment Account*via an Old Mutual International Ireland European Portfolio Bond.

 Valuations You will receive detailed quarterly valuation reports outlining your complete portfolio of investments. The valuation report will show any transactions that have taken place since the last quarterly statement, including any withdrawals and charges.

 Trusts An Old Mutual International Ireland European Portfolio Bond is an ideal investment to place into a trust. We have discussed how you can reduce your inheritance tax liability and the fact that Old Mutual International Ireland provides you with access to a number of trusts which may be suitable for you. Note to financial adviser: Further reasons why paragraphs for specific trusts are available on our website.

continued Tax planning reasons for an Old Mutual International Ireland European Portfolio Bond

 Gross roll-up The European Portfolio Bond is provided by Old Mutual International Ireland based in Dublin, Republic of Ireland. The beneficial tax environment of Dublin means that any growth in the assets that you have chosen to link your Old Mutual International Ireland European Portfolio Bond to will roll-up free of any income or capital gains tax. As a result, you will have the potential to benefit from enhanced capital growth over the medium to long term (meaning 5 to 10 years or longer) through gross roll-up. An exception to this is the element of withholding tax on dividends which may have been applied at source that Old Mutual International Ireland cannot recover on your behalf.

Any gains, dividends, rent or interest are taxed at 0% within the fund. Note to financial adviser: If recommending that the client should invest in a Collective Investment Account via an Old Mutual International Ireland European Portfolio Bond, please note wording about the taxation of funds held on the platform. See ‘Taxation when holding funds on the platform’ later in this document.

 Tax reporting The European Portfolio Bond is classed as a ‘non-income’ producing investment, which means that information regarding the bond does not need to be included in your tax return until a chargeable event occurs.

You can change assets within the Old Mutual International Ireland European Portfolio Bond without being subject to a capital gains tax or income tax liability and you will not have any tax reporting requirements unless you take withdrawals or surrender the bond, both of which will trigger a chargeable event.

Any chargeable event gain* made will be reported by Old Mutual International Ireland to you and to HM Revenue & Customs where the gain exceeds 50% of the basic rate income tax threshold. The policyholder will be responsible for submitting tax returns in relation to any chargeable event gains. Old Mutual International Ireland will issue to policyholders the details of any chargeable event gains.

* Please see details for ‘chargeable events’ below.

 Policy segmentation Page 7 of 14 The Old Mutual International Ireland European Portfolio Bond consists of multiple policies within the bond to maximise the UK tax efficiency of your investment when you want to access your money.

It may also be beneficial should you wish to assign individual policies in the future, or on distribution to your beneficiaries should you place your Old Mutual International Ireland European Portfolio Bond into trust. The default number of policies is 12 though you can chose more or less depending on your requirements. Unless you specify otherwise, your policy will be set up with a cluster of 12 policies. However, this number can be increased or decreased when you initially apply for the bond, subject to the minimum cluster value of £400 (or currency equivalent). For example, if the investment amount is £40,000 the cluster size could be up to 100. This gives you flexibility, for example, when it comes to setting up assignments or when you want to take money out but have already used your 5% tax-deferred allowance.

continued Tax planning reasons for an Old Mutual International Ireland European Portfolio Bond (continued)

 Capital gains tax An offshore bond is not subject to capital gains tax, unless the policy has previously been assigned for money or money’s worth.

Changing assets within an offshore bond is not subject to the capital gains tax 30-day rule*, so will not trigger a taxable event. This is because Old Mutual International Ireland own the underlying assets and are non-UK resident for UK capital gains tax purposes. However, all changes to assets should comply with individual fund manager’s market timing and short-term trading policies or rules, which may prevent frequent or short-term switching. * This rule prevents a shareholder from making a gain or loss on shares they have sold and bought back almost immediately. This applies where you sell shares and then buy back shares of the same class in the same company within 30 days of the sale.

 Timing Offshore bonds offer greater flexibility for income tax planning. You can choose when the proceeds are taken and therefore when to incur a tax assessment, for example by waiting until you are in the basic tax bracket.

 5% tax deferred withdrawal allowance You are able to withdraw up to (and including) 5% each policy year of the amount you have invested without incurring an immediate UK tax liability for 20 years. If you do not use your 5% tax deferred withdrawal allowance in any policy year, you can carry forward any unused allowance to the following year. For example, if you don’t use your 5% tax deferred withdrawal allowance for six years, this means you could withdraw 30% without an immediate liability to UK income tax.

 Chargeable events During the period your Old Mutual International Ireland European Portfolio Bond is in force, there is no personal taxation to pay. However, there are certain ‘chargeable events’ that may trigger a ‘taxable gain’. A chargeable event happens when:

 you take withdrawals from your bond by partially cashing in the policies above your 5% tax deferred withdrawal allowance of (5% of the premiums paid for each policy year)  you fully cash in one or more policies in your bond  you fully cash in all the policies in your bond  the last life assured dies  you assign one or more policies in your bond for consideration or ‘money or money’s worth’.

When a chargeable event happens you will normally be subject to income tax on the gain at the rate applicable to you at that time. However, there may be several ways of reducing this liability:

of 14  Top-slicing relief.  Cashing in the policies in your bond when you are not UK resident.  Time-apportionment relief.

 Taxation on chargeable event gains The Old Mutual International Ireland European Portfolio Bond is taxed under the chargeable event legislation, which means any gain on a chargeable event is assessed to income tax, rather than capital gains tax. You are able to use your personal allowance and the 20%, 40% and 45% tax bands when calculating overall tax liability. Note to financial adviser: You may wish to link in to the paragraphs explaining chargeable events above.

continued Tax planning reasons for an Old Mutual International Ireland European Portfolio Bond (continued)

 Top-slicing relief When you surrender your bond, due to the chargeable gain, you may become a higher rate or additional rate tax payer. Top slicing relief allows you to assess your chargeable gain across the number of complete years the bond has been in force, reducing or removing your liability to higher or additional rate tax.

 Cashing in the policies in your bond when you are not UK resident If you cash in the policies in your bond when you are not a UK resident for income tax purposes, there will be no liability to UK income tax. Investors in bonds subject to income tax may be non-resident for a settled purpose* for as little as one tax-year to remove the need to pay tax on offshore bonds.

Whilst there will be no liability to UK income tax, you may be liable to tax in the country where you are resident. * this will depend on the individual’s circumstances and requires specialist advice.

 Time-apportionment relief If you are UK resident at the time of the chargeable event, but have been UK resident for only part of the period the policies in your bond are in force, the gross amount of any gains will be reduced to a net amount, ie the chargeable gain. This will reflect the number of days you have been resident outside the UK.

The chargeable gain is calculated as follows, looking at the period from the Old Mutual International Ireland European Portfolio Bond’s commencement date to the date the gain arises under the policy or policies concerned within the bond. Number of days you have been resident in the UK Gross gain x Number of days the policies have been in force = Chargeable gain

(Time-apportionment relief does not apply if the policy or policies within your bond are or have been subject to a trust.)

 Assignment It is possible to assign one or more policies in your bond. This can be to another individual, trustees or company. Provided this is not for consideration or ‘money or money’s worth’ a chargeable event will not occur, so there is no tax liability. The new legal owner of the policy/policies will be the person you assigned the policies to. If they cashed in the policies they would be liable to tax at their highest marginal rate on any chargeable gain.

Although there is no liability to income tax you should consider any inheritance tax implications.

Taxation when holding funds on the platform

If you have recommended your client to invest in a Collective Investment Account via an Old Mutual International Ireland European Portfolio Bond, please note the following:

As I have explained to you, there is a key difference in terms of taxation of the funds when holding them via the platform through the Old Mutual International Ireland European Portfolio Bond. The key difference is the taxation of the underlying funds that you can select on the platform. Through the Collective Investment Page 9 of 14 Account you can access UK domiciled and some non-UK domiciled funds to help meet your investment objectives. However, it’s important to note that Old Mutual International Ireland is not able to (where applicable) reclaim any tax paid from funds held on the platform. Therefore, in such instances, the returns could be less if you hold these funds on the platform instead of investing in external funds directly through an Old Mutual International Ireland European Portfolio Bond.

continued Risk warnings

Risk warnings are an essential part of any financial promotion. The risk warnings below should be seen as example text that can be adapted to meet particular circumstances.

 Currency conversions If you choose a policy currency* other than that in which you make your investment, ie the premium you pay to Old Mutual International Ireland, then Old Mutual International Ireland will credit the premium to a transaction account in the currency in which you have paid your premium. You should be aware that Old Mutual International Ireland will notionally convert the premium amount into your chosen policy currency. This means Old Mutual International Ireland will not physically convert the premium amount; just apply the converted amount to your Old Mutual International Ireland European Portfolio Bond. This currency conversion could expose you to exchange rate fluctuations. Any conversion made will be based on the closing ‘market mid-rate’** provided to Old Mutual International Ireland by a third-party currency rate provider on the working day before Old Mutual International Ireland applies your premium amount to your European Portfolio Bond. The converted premium amount will be the amount which is shown in your policy schedules.

If additional currency conversions are required as a result of transactions within your European Portfolio Bond (for example, when you buy assets in a currency other than your chosen policy currency or when Old Mutual International Ireland deduct European Portfolio Bond charges shown as a fixed amount in pound sterling***), you should be aware that delays may occur. Please refer to the Policy Terms and Conditions for further details on this and for any charges which may apply.

* This is the currency that your valuations will be summarised in. It is also the currency in which the deduction of most Old Mutual International Ireland European Portfolio Bond charges will be made. ** All currencies have a market rate. Any provider dealing with currencies will independently set different ‘buy’ and ‘sell’ rates, these include overheads and profit margins. The market mid-rate is derived from the mid-point between the ‘buy’ and ‘sell’ rates used in the global markets. *** Any charges shown as a fixed amount in pound sterling in your charges schedule (issued together with your policy schedule(s) and Policy Terms and Conditions) will, if your policy currency is not the pound sterling, be converted and deducted in your selected policy currency as stated above.

 Funds with stocks in specialist sectors Investments held by some specialist funds, including emerging markets, technology and smaller companies funds, tend to be volatile and the fund prices could move sharply up or down at times. They can also be difficult to sell at times, which can make it difficult to sell or switch from these funds.

 Funds with investments in emerging markets Investments held in emerging markets are usually considered to carry a greater degree of risk relating to dealing, settlement, custody practices and volatility than investment in established markets.

 Funds with holdings in a different currency The fund holds investments in a different currency to the fund, so fund prices will rise and fall purely because of exchange rate fluctuations.

 Money market funds The fund invests in money-market assets, including deposits with banks and other financial institutions. The yield on the fund will fluctuate as interest rates change. There is a possibility of default, reducing capital values.

 Property funds The value of property is generally a matter of a valuer’s opinion rather than fact. In addition, property investments may not be readily saleable, which could lead to constraints on your ability to sell or switch from the fund.

 Past performance Past performance is not a guide to the future. Page 10 of 14 About Old Mutual International Ireland

The provider of the European Portfolio Investment Bond is Old Mutual International Ireland dac, an EU authorised life assurance company within Old Mutual International. Old Mutual International, part of the wealth management business of the Old Mutual plc, is the international group of companies which provides offshore and cross border investment solutions.

Old Mutual International operates in 33 countries with a balanced portfolio of businesses providing asset management, life assurance, banking and general insurance services. As a FTSE 100 company, Old Mutual plc is one of the 100 largest companies listed on the London Stock Exchange and the combined group has funds under management in excess of £327.903.8 billion*. *Source: Old Mutual, 31 December 2015 Regulatory stability

Old Mutual International is the collective name for the offshore and cross-border providers of investment solutions within the Old Mutual Wealth Group. Old Mutual International Ireland’s presence in the European city of Dublin means you can be confident that your interests will be protected. Ireland is a full member of the European Union and has strict money laundering legislation which complies with the EU standards.

Ireland has a well-established and rigorous life insurance company regulatory system, which has enabled life insurance companies to be well positioned to operate even in turbulent economic times. Old Mutual International Ireland is regulated by the Central Bank of Ireland, which has direct responsibility for the life insurance industry. All life insurance companies licensed in Ireland are subject to Irish Regulation which comply with EU standards.

Policyholder protection

Old Mutual International Ireland is a subsidiary of Old Mutual Plc which is listed on the UK Stock Exchange FTSE 100.

Investor protection schemes are regarded as a safety net for the policyholders and allow policyholders to claim compensation in the unlikely event the life company becomes insolvent. The rules governing such schemes and specific rights for each policyholder vary from one jurisdiction to another.

In Ireland there is no formal investor protection scheme. However, there are a number of regulatory measures in place to protect the policyholders of an Irish life assurance company.

Protection of Old Mutual International Ireland assets

Assets linked to Old Mutual International Ireland dac’s policies are segregated from Old Mutual International Ireland dac’s business assets, the segregated assets are called the Long Term Business Fund (‘LTBF’). This means that the assets held in the LTBF must only be applied for the purposes of meeting liabilities of the policies issued by Old Mutual International Ireland dac. The Head of Actuarial function has a statutory duty to protect the interests of the policyholders generally.

continued Policyholder protection (continued)

Old Mutual International Ireland dac currently writes only unit-linked business, where the policyholder selects the underlying assets of the policy. Therefore, there is always a close link between the value of the company’s assets and the liabilities to its policyholders so that Old Mutual International Ireland dac can meet its obligation to pay encashment proceeds from the policy. The nature of the single product type means Old Mutual International Ireland dac policyholders cannot be exposed to risks of other business lines, for example, investment guarantees or protection business. Page 11 of 14 The EU does not currently have any legislation governing investor compensation schemes for European insurers. The Insurers (Reorganisation and Winding Up) Directive 2001 does provide specific guidance around policyholder assets, in the event of an insurer becoming insolvent. Policyholders’ liabilities must be paid ahead of any other creditors of the insurer. Whilst this Directive is not a form of investor protection in the EU, it does give policyholders some comfort in the unlikely event of the insolvency of an insurer occurring, because the policyholder will be treated as a preferential creditor, the only exception being the cost incurred when winding up the company.

Old Mutual International Ireland Policyholders who were habitually resident in the UK, at the time of applying for an Old Mutual International Ireland dac policy; and provided the policy commenced on or after the 1 December 2001 are believed to be covered by the UK Financial Services Compensation Scheme.

Investor protection schemes do not cover the investment risk the policyholder chooses to take in respect of their policy. These risks vary depending on the type of asset selected and can also include, for example, currency fluctuations, counterparty and emerging market risks.

Policyholders can elect to change the underlying assets, within their policy, to reflect their current risk appetite. The value of your policyholder’s investments will fluctuate daily and Old Mutual International dac cannot guarantee the amount the client will receive as a return on the investment.

Old Mutual International Ireland dac Policyholders who were habitually resident in the UK, at the time of applying for an Old Mutual International Ireland dac policy; and provided the policy commenced on or after the 1 December 2001 are believed to be covered by the UK Financial Services Compensation Scheme (FSCS).

The value of your Old Mutual International Ireland European Portfolio Bond is linked to the value of bank deposits and investments generally managed by third parties such as banks and fund managers. In the event that the provider of an asset, including bank deposits, fails, compensation will depend on the scheme in place where that provider is registered. You should be aware that any compensation arrangements are likely to relate only to Old Mutual International Ireland’s aggregate holdings across all affected policies rather than to individual investors. As a result you may not benefit from any scheme.

Full details are available from Old Mutual International Ireland on request. As you are invested into funds/assets through a European Portfolio Bond you are unlikely to be eligible for any compensation schemes which may apply to individuals investing directly. If this is a concern, please discuss this with me so you are aware of the possible risks.

Our Awards

of 14 We’re proud of our achievements and are grateful for the awards we’ve received. These awards recognise the quality of our products, service and expertise, and further strengthen our reputation for providing market- leading financial solutions and excellent support. Our most recent awards* include:

International Fund & Product Awards

2015 Best International Life Group – Winner Best Interational Portfolio Bond – Winner Best International Savings Plan – Highly Commended 2014 Best International Adviser Portal - Winner Best International Life Group - Highly Commended Best International Protection Product - Highly Commended Best International Savings Plan - Highly Commended Best International Structured Product Provider - Highly Commended 2013 Best International Life Group – Winner Best International Portfolio Bond – Winner Best Trust/Estate Planning Product – Highly Commended Best International Protection Plan – Highly Commended Best International Savings Plan – Highly Commended 2012 Best International Life Group - Winner Best Service Initiative – Winner Best International Life Product – Highly Commended

International Adviser Life Awards

2015 Best Adviser support/ customer service (Europe) – Winner Best regular premium investment product (Europe) – Winner Best trust/ estate planning (Europe, Middle East, Hong Kong) – Winner Best single premium investment product (Singapore) – Winner 2014 Best Online Proposition (UK Offshore, Europe) - Winner Best New Product (Hong Kong) - Winner Best Single Premium Investment Product (Singapore) - Winner Best for Adviser Support/ Customer Service (Europe) - Winner Best Regular Premium Investment Product (Europe) - Winner 2013 Best Online Proposition (UK Offshore, Europe, Singapore, Middle East) - Winner Best New Product (UK Offshore, Singapore) - Winner Best Overall Product Range (Middle East, Europe, UK Offshore) - Winner Best Trust/Estate Planning Product (Middle East, Europe,Hong Kong) - Winner Best Single Premium Investment Product (Singapore) – Winner Best Regular Premium Investment Product (Europe, Middle East) - Winner Best Adviser Support/Customer Service (Europe) - Winner 2012 Best Online Proposition (UK Offshore, Asia) - Winner Best Overall Product Range (UK Offshore, Europe) - Winner Best Trust/Estate Planning Product (Middle East, Asia, Europe, UK Offshore) - Winner Best Single Premium Investment Product (Asia, UK Offshore) – Winner

* Accolades for 2014 or earlier were awarded to us as Skandia International (our former name).

of 14 www.oldmutualinternational.com

Calls may be monitored and recorded for training purposes and to avoid misunderstandings Old Mutual International Ireland dac is regulated by the Central Bank of Ireland. Registered No 309649 Administration Centre for correspondence: King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU Tel: +353(0)1 479 3900 Fax: +353(0)1 475 1020 Head Office Address: Hambleden House, 19-26 Lower Pembroke Street, Dublin 2, Ireland. VAT number for Old Mutual International Ireland dac is 6329649S Registered Office: Arthur Cox Building, Earlsfort Terrace, Dublin 2, Ireland. Old Mutual International is registered in Ireland as a business name of Old Mutual International Ireland dac

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