Questions & Answers

Proposed scheme for the transfer of the entirety of the Transfer to become effective on 6 November 2017. If business of Kleinwort Benson Bank Limited to SG Kleinwort this date changes we will place a notice confirming the Hambros Bank Limited. effective date of the Transfer on our website at www. kleinwortbenson.com. This questions and answers (Q&As) document provides you with further information in relation to the transfer of your 1.3 Please see Part C (Part VII Banking Business Transfer Kleinwort Benson Bank Limited services and investment and/ Scheme) for further details of the Transfer. or savings account or mortgage or other accounts to SG 2 What is transferring? Kleinwort Hambros Bank Limited and explains any implications which may be of relevance to you. We are proposing to Transfer the entire business of KBBL to Kleinwort Hambros. This will include all clients, all assets If, having read these Q&As, you have any further questions you under our management, all deposits placed with us and any can contact your designated private banker in the usual way or mortgages or loans provided by us. All contracts with external our dedicated team at the address and/or phone numbers set third parties will also transfer; one effect of this is that payment out below. instructions will be unchanged. By phone: 3 Why is KBBL transferring these accounts? UK clients: please call us on 0800 085 7138 The combination of KBBL and Kleinwort Hambros will make Clients calling from overseas: please call us on Kleinwort Hambros one of the largest private banking groups in +44 203 207 7045. the UK and Channel Islands, capitalising on the complementary nature of the two prestigious, relationship-focused, businesses. The lines will be open from 09:00 to 17:00 Monday to Friday The combined expertise, together with the support of the (excluding bank holidays). Societe Generale Group and access to its worldwide network, By post: will make Kleinwort Hambros strongly positioned to grow and deliver a best-in-class service for clients. If writing from within the UK: 4 Why is Kleinwort Hambros acquiring these Freepost KLEINWORT BENSON BANK TRANSFER accounts? If writing from overseas: The transfer of KBBL’s business into Kleinwort Hambros is part Kleinwort Benson Bank Transfer of Societe Generale’s strategy to simplify its group structure 8 St James’s Square and unify its UK and Channel Islands private banking business London SW1Y 4JU under the name of Kleinwort Hambros. Kleinwort Hambros United Kingdom will be a relationship-focused private bank of reference, and a leading private bank in the UK and Channel Islands. By email: [email protected] B. How will the Transfer affect you? For all normal service or account enquiries please contact your To help you understand the impact on your account(s) and designated private banker in the usual way. services, we have divided this section as follows: Part I describes the impact upon all clients and Part II describes the A. Background to the proposed transfer impact upon only certain types of clients. 1 What is happening? Part I – Applicable to all clients of KBBL 1.1 Societe Generale completed its acquisition of Kleinwort Benson Bank Limited (KBBL) in June 2016 and is now 5 Will I be moved to a Kleinwort Hambros product or seeking to integrate KBBL into the SG Hambros Group service? through the transfer of the entire business of KBBL to SG We expect that the combination of our two businesses will Kleinwort Hambros Bank Limited, formerly known as SG provide an opportunity to review and enhance our services Hambros Bank Limited (Kleinwort Hambros). and pricing and we will communicate any changes to you 1.2 This transfer will be executed by way of a banking at that time. Any changes will be subject to the terms of business transfer scheme (Transfer) under Part VII of business in place at the time. Kleinwort Hambros will notify the Financial Services and Markets Act 2000, which you in advance and highlight any changes to the products or will be subject to the approval of the High Court of service being amended. If you have any questions at that time England and Wales (the Court). As long as the Court regarding what is being proposed, then we will discuss them gives approval, and subject to the satisfaction of certain with you in detail. other legal and commercial conditions, we expect the 2 Questions & Answers 10.3 10.2 10.1 10 banker. usual telephonenumberstocontactyourdesignatedprivate a result oftheTransfer. You cancontinuetocallusonthe Yes. Theway youserviceyouraccount(s)willnotchangeas 9 private bankerintheusualmannerafterTransfer. No. You will continue tobeablecontactyourdesignated 8 7.2 7.1 7 6.3 6.2 6.1 6 during whichKleinwort Hambros willnotbeableto: will notchangeforaperiodafter thedateofTransfer off amountsyouowebetweenthoseaccountsandthat Kleinwort Hambros, thetwobankscannotcurrently set If youcurrently haveaccountswithbothKBBLand on yourmortgage. account couldbeusedtopaythemissedpayments your mortgagepayments,moneyinsavings savings accountandmortgage,ifyoufallbehindwith and conditionsyoucurrently havebothaKBBL example ifaset-off rightisincludedinyourterms overdraft orcredit card) that becomesrepayable. For debt youalsohavewithit(suchasaloan,mortgage, it (suchasinacurrent orsavingsaccount)againsta circumstances, tousemoneyyouhavedepositedwith A set-off rightistheofabank,incertain with bothKBBLandKleinwortHambros. immediately before theTransfer, youhaveaccounts This informationwillonlyberelevant toyouif, my accounts? Will theTransfer affect rightsofset-off between service myaccount/accessmoney? Do Istillcallthesametelephonenumberto banker orPortfolioManager? Will there beachangetomy designated private step inthisongoingplan. communicated induecourse.TheTransfer isthenext system andfurtherdetailsoftheplanwillbe manage allinvestmentsonthesameoperational A planisinplaceforKleinwortHambros toultimately separate statements. reporting willnotbeconsolidatedandyoureceive accounts withbothKBBLandKleinwortHambros, the systems. Thiswillinevitablymeanthat,ifyouhold will continuetooperateondifferent operational by formerclientsofbothKBBLandKleinwortHambros For theinitialperiodafterTransfer, accountsheld Hambros? which were previously withKBBLandKleinwort Will Igetseparatestatementsformyaccounts including onyourbankstatementsandvaluations. For aperiodoftimeyoumaystillseetheKBBLname, accounts willcontinueasbefore. all automatedpaymentscurrently setuponyour Your accountnumber(s)willremain thesameand the Transfer. continue tobeprovided byKleinwortHambros after the servicesprovided toyoucurrently byKBBLwill your accounttomakeandreceive paymentsand will continueasbefore. You willstillbeabletoaccess Your interactionwithyourdesignatedprivatebanker account? Will there beanychangestothewayIaccessmy

12.3 12.2 12.1 12 11.2 11.1 11 10.6 10.5 10.4 (a) (b) to reflect legal or regulatory changes ortomakeyour business inthenormalcourse of business,forexample We mayalsomakefurtherchangestoyourtermsof period. will onlybeimplementedafteran appropriate notice the requirements setout inourtermsofbusinessand to theservicesyoucurrently receive willbesubjectto discontinued, butpleasebeassured thatanychanges be amendedandasmallnumberofproducts maybe class service,someofourexistingcore servicesmay Over time,andaspartofouraimtodeliverbest-in- Hambros clients. your termsintolinewiththoseofexistingKleinwort replaced withnewterms.Your newtermswillbring Transfer yourexistingtermsofbusinesswillbe Under theScheme,onEffective Dateofthe Will mytermsofbusinesschange? between yourKleinwortHambros andKBBLaccounts. further detailonhowtheTransfer willaffect rights terms oftheproposed Transfer (theSummary)for explanatory statementsettingoutasummaryofthe Please refer toparagraphs5and 6intheenclosed the Transfer. Transfer fora periodofthree monthsafterthedateof which are additionaltothose whichexistedpriortothe your KBBLorexistingKleinwortHambros accounts will notbeabletoexercise certain otherrightsover of set-off betweenmyaccounts?”), KleinwortHambros theTransferset-off (seequestion10“Will affect rights KBBL andKleinwortHambros, inadditiontorightsof If before theTransfer, youhaveaccountswithboth KBBL andKleinwortHambros accounts? the Transfer affect anyotherrightsbetweenmy Other thaninrelation to rightsofset-off, will date oftheTransfer. accounts youopenwithKleinwortHambros afterthe increased rightsofset-off willnotapplytoanynew The restriction onKleinwort Hambros exercising its transferred from KBBL. you holdwithKleinwortHambros, includingthose to exercise rightsofset-off betweenallaccounts After theperiodends,KleinwortHambros willbeable promotional period. be three monthsfrom theendofthatfixedtermor the balanceismaintainedforacertainperiod,itwill which issubjecttoapromotional rate,provided that money isheldinafixed-termaccountoran months from thedateofTransfer. However, ifyour The periodoftimereferred toabovewillbethree with KleinwortHambros; or owing onanysuchexistingmortgagesorloans transferred from KBBLtorepay orreduce money money depositedinsuchasavingsaccount mortgage orloanwithKleinwortHambros, use if youhaveasavingsaccountwithKBBLand KBBL. owing onamortgageaccounttransferred from Kleinwort Hambros torepay orreduce money use moneyheldinsuchanexistingaccountwith Kleinwort Hambros andamortgagewithKBBL, if youhaveacurrent orsavingsaccountwith 18 17.2 17.1 17 (c) 16.2 16.1 16 (b) terms ofbusinessinplaceonyouraccountatthattime. future changestorateswill bemadeinaccordance withthe Your savings rate willnotbeaffected uponTransfer and 15 (a) Part II–Applicabletospecifictypesofclient provide you. any adverseimpactontheservicesKleinwortHambros will Stock Exchange,howeverwedonotexpectthistohave No. KleinwortHambros isnotamemberoftheLondon 14 13.2 13.1 13 portfolios. offer anevenwiderrangeoffundstobeheldininvestment We expectthatKleinwortHambros willbeinapositionto

management process. will continuetobebasedonarobust investment in theportfolioswillchangebutthosechanges Over time,itisinevitablethattheinstrumentsused and riskappetitepreviously agreed. investment servicestoclientsbasedonthestrategy Transfer. KleinwortHambros willcontinuetodeliver in yourinvestmentportfolio(s)asadirect result ofthe There willbenoimmediate changetotheholdings funds toKleinwortHambros funds? Will anyofmyfundsbetransferred from KBBL Investment managementclients conditions. notified toyouassetoutwithinthe relevant termsand Any changestoyourmortgage/loanratewillbe mortgage/loan account(s). the basissetoutindocumentationforyourKBBL Your mortgage/loan willcontinuetobepayableon Will mymortgage/loanchange? Mortgage/loan clients Will mysavingsratechange? Savings clients Stock Exchange? Is KleinwortHambros amemberoftheLondon defences thatKBBLmayhavehad. against KleinwortHambros whichwillbeentitledtoany period priortotheeffective dateshouldbebrought Any newcomplaintsagainstKBBLrelating tothe be entitledtoanydefencesthatKBBLmayhavehad. to dealwiththecomplaintinplaceofKBBLandwill Hambros. Asaresult KleinwortHambros willcontinue along withtheentire businessofKBBLtoKleinwort All existingcomplaintsagainstKBBLwilltransfer against KBBL? How willtheTransfer affect anycomplaints write toyouseparatelyaboutthechanges. conditions fairer ormore clear. Ifwedothiswill in? Will there beanychangetothefundsIcaninvest question 23. hearing. with advocacyrights)andmake yourobjectionattheCourt result, youcanattend(inperson,orbyalegalrepresentative because youbelievewillbe adverselyaffected asa the publictoattend.Ifyouhave anobjectiontotheTransfer KBBL andKleinwortHambros. Itisalsoopenformembersof The Courthearingwillbeattendedbyrepresentatives of 22 entitled toraisethemasdetailedinquestion23. However, ifyouhaveanyobjectionstotheproposals youare Kleinwort Hambros automaticallyonthedateofTransfer. account ormortgageotheraccountswilltransferto approves theTransfer thenyourinvestmentand/orsavings want raised,youdonotneedtotakeanyaction.IftheCourt you No –unlessyouhaveanyfurtherqueriesorconcerns 21 20.5 20.4 20.3 20.2 20.1 20 C. 19.2 19.1 19 PartVIIBankingBusinessTransfer Scheme Who canattendthehearing? Do Ineedtodoanything? and thePRAfollowingTransfer. to beauthorisedbythePRAandregulated bytheFCA the FCAandPRA.KleinwortHambros willcontinue cease tobeauthorisedbythePRAandregulated by permissions shortlyaftertheEffective Dateandso therefore intendedthatKBBLsurrender itsregulatory no longerbecarryingonanyregulated activities.Itis to conductbankingbusinessandaccordingly itwill Following completionoftheTransfer, KBBLwillcease Transfer onour websiteatwww.kleinwortbenson.com. place anoticeconfirmingtheeffective dateofthe on 6November2017.Ifthisdatechangeswewill conditions, weexpecttheTransfer tobecomeeffective satisfaction ofcertainotherlegalandcommercial If theCourtapproves theTransfer, subjecttothe Court hearingon30October2017. The PRAandtheFCAare entitled toappearatthe PRA andtheFCAinrelation totheproposed Transfer. and thePRA.We are workingcloselywithboththe regulated bytheFinancial Conduct Authority(theFCA) by thePrudentialRegulationAuthority(thePRA)and Both KBBLandKleinwortHambros are authorised hearing date. also updateourwebsitewithdetailsofthenew considered?”) withdetailsofthenewdate.We will (see question23“HowcanIensure myviewsare anyone whohascontactedustoregister anobjection If thisdateischangedforanyreason, wewillwriteto London, EC4A1NL. Royal CourtsofJustice,7RollsBuilding,FetterLane, take placeon30October2017attheRollsBuilding, The Courthearingtoapprove theTransfer isdueto What happensnext? be communicatedtoclientsinadvance. Any future changetothenomineecompanyusedwill KBBL willchange. we donotanticipatethatthecurrent nomineeusedby assets through anomineecompany. Intheinitialperiod Kleinwort Hambros willcontinuetoholdinvestment are held? Will there beanychangetohowmyinvestments For further details of how to do this please see For furtherdetailsofhowtodo thispleasesee

3 Questions & Answers 4 Questions & Answers 24 23.4 23.3 23.2 23.1 23 25 D. my viewsare considered?”). will beatyourowncost(seequestion23“HowcanIensure appear attheCourthearingforapproval oftheTransfer this However, ifyou instructabarristerorsolicitoradvocateto No, thetransferofyouraccount(s)willnotcostyouanything. 25.2 25.1

Financial ServicesCompensationScheme(FSCS) attending theCourthearing. not prevent anypersonwhowishes todosofrom A failure togivewrittennotice inadvancedoes intend toattendtheCourthearingornot. person makingsuchrepresentations hasindicatedthey representations received, regardless ofwhetherthe provide thePRAandFCA withcopiesofanysuch hearing. Inaddition,KBBLandKleinwortHambros will to addressraisedinadvanceoftheCourt anyconcerns any changestotheCourthearingand,where possible, KBBL andKleinwortHambros toprovide notificationof preferably before 25October2017.Thiswillenable set outintheseQ&Asstatingyourreasons and these detailsinwritingtotheaddress oremailaddress be represented attheCourthearing.Pleaseprovide representation ordetailsofyourintentiontoattend us withdetailsofyourobjectionandwritten If youwishtotakeanyfurtheraction,pleaseprovide anyone else. account whethertheTransfer adverselyaffects youor its approval totheTransfer, theCourtwilltakeinto on yourbehalf.Whenconsideringwhethertogive appear attheCourthearingandmakerepresentations a barristerorsolicitoradvocate,atyourowncost,to are raisedattheCourthearing.You mayalsoinstruct at thehearing,andwewillensure thatyourobjections You canwritetousevenifyouare notgoingtoappear attend theCourthearingforapproval oftheTransfer. Transfer youhavetherighttoobjectTransfer and If youbelievethatmaybeadverselyaffected bythe at theendoftheseQ&As. been answered, pleasecallusonthenumbersshown If youhaveanyfurtherquestionswhichnotyet How canIensure myviewsare considered? anything? Will thePartVIITransfer Schemecostme circumstances arisewhere youare entitledto make you haveseparateprotection undertheFSCS.If business withbothKBBLand Kleinwort Hambros covered bytheFSCS,similarlyifyouhaveinvestment deposited withbothKBBLand KleinwortHambros is with bothKBBLandKleinwort Hambros, yourmoney are aneligibledepositorandhavemoneydeposited As setoutintheenclosedletter, atpresent, ifyou business forupto£50,000perfirm. also benefitfrom protection in respect ofinvestment money depositedwithit.Someeligibleclientsmay protected ifthedeposittakerbecomesunabletorepay deposited withanFCAauthoriseddeposittakerwillbe Act) withassurancethatupto£85,000ofmoney company” criteriasetoutintherelevant Companies includes companies,aslongtheymeetthe“small private individualsandsmallbusinesses(which The FSCSprovides eligibledepositors,including Will Ibeeligibleforcompensationfrom theFSCS? www.kleinwortbenson.com. websites www.kleinworthambros.com and We willconfirmthe Transfer withanannouncementonour 27 E. you withfinancialadvicein relation tothesechanges. neither KBBLnorKleinwortHambros willbeabletoprovide No. We cantalkyouthrough theoptionsavailable,but 26 25.7 25.6 25.5 25.4 25.3 Furtherinformation happened? How willIknowwhentheTransfer has are protected undertheFSCS? the impactofchangestohowmydeposits Can youprovide financialadvicein relation to for bothprivateindividualsandsmallbusinesses. 7741 4100toobtainfulldetailsoftheeligibilitycriteria www.fscs.org.uk orcall08006781100OR+44(0)20 numbers shownattheendoftheseQ&Asorvisit if youare eligiblepleaseeither contactusonthe If youneedfurtherinformationtohelpunderstand change inprotection. the different optionsavailabletoyouinrelation tothis numbers attheendoftheseQ&As.We willexplain our dedicatedteamattheaddress and/orphone designated privatebankerintheusualway, orthrough that isprovided toyou,please contactusviayour on yourcashdepositsandthestatutoryprotection If youare abouttheimpactofTransfer concerned (including lossofaccruedinterest). client willbefree from penalty, fee,noticeorcharge borrowings. Anyamounts withdrawn byaneligible eligible clientorassecurityforthatclient’s security forservicesthatare beingprovided tothat than amountsthataneligibleclienthasdepositedas of three monthsafterthedate oftheTransfer other from thedateofreceipt ofthisletteruntiltheexpiry amounts heldwitheitherKleinwortHambros orKBBL of theTransfer willbepermittedtowithdrawany both KBBLandKleinwortHambros priortothedate All eligibleclientswhohavedepositaccountswith not toeachseparateaccount. bank, includingtheirshare ofanyjointaccount,and amount inalltheeligibledepositor’s accountswiththe £170,000). The£85,000limitrelates tothecombined the FSCSwouldbe£85,000each(makingatotalof the maximumamountthatcouldbeclaimedunder so, forajointaccountheldbytwoeligibledepositors, having aclaimundertheFSCSinrespect oftheirshare For jointaccounts,eachaccountholderistreated as for investmentbusinessanindividualorentity. reduce to£85,000inrespect ofdepositsand£50,000 your maximumcompensationfrom theFSCSwill deposit takerunderFSCSrules.Thiswillmeanthat be heldbyasinglefirmwhichisonlyonequalifying account(s) toKleinwortHambros, yourdeposit(s)will However, followingtheTransfer ofyourKBBL investment business). Hambros and£50,000inrespect ofeachfirmfor money depositedwitheachofKBBLandKleinwort (the aggregate ofamaximum£85,000forthe £100,000 forinvestmentbusinessundertheFSCS to amaximumof£170,000fordepositsandup a claimagainstboth,youcouldcurrently claimup

29.2 overseas. your serviceprovider forthecost ofcallingthisnumberfrom may vary. Ifyou are callingfrom abroad, pleasecheckwith from UKlandlinesare free. Thecostsfrom mobilephones Calls maybemonitored orrecorded. Callsto0800numbers your designatedprivatebankerintheusualway. For allnormalserviceoraccountenquiriespleasecontact [email protected] By email: United Kingdom London SW1Y4JU 8 StJames’s Square Kleinwort BensonBankTransfer If writingfrom overseas: Freepost BENSONBANKTRANSFER KLEINWORT If writingfrom withintheUK: By post: (excluding bankholidays). The lineswillbeopenfrom 09:00to17:00MondayFriday +44 2032077045. Clients callingfrom overseas:pleasecalluson UK clients:pleasecalluson08000857138. By phone: 29.1 29 set outbelow. our dedicatedteamattheaddress and/orphonenumbers document bycontactingyourdesignatedprivatebankeror question 29.You canalsorequest afullcopyofthescheme en/bank-transfer/, orbyrequest inwritingtotheaddress in overseas), byvisitinghttps://www.kleinwortbenson.com/ 7138 (UKclients)or+442032077045(clientscallingfrom is alsoavailablefree ofchargebycallinguson0800085 enclosed Summary. Afullcopyoftheschemedocument You canfindmore informationaboutthe Transfer inthe 28 as setoutintheseQ&As. kleinwortbenson.com orpostanyletterstoouraddress and forward acopyoftheemailtobanktransfer@ receive anysuchrequest, donotfollowtheinstructions containing alinkaskingforsuchinformation.Ifyou confidential orpersonalsecurityinformation,emails will neversendyouanemailorletteraskingforyour Please beaware offraudulent communications.We address and/orphonenumberssetoutbelow. banker intheusualwayorourdedicatedteamat questions youcancontactyourdesignatedprivate If, havingread theseQ&As,youhaveanyfurther How doIgetintouch? Where canIobtainfurtherinformation?

5 Questions & Answers (overseas clients). (UK clients)or+442032077045 on request bycalling0800 0857138 available inlargeprintoronaudiotape documents relating tothe Transfer, are Copies oftheseQ&As,andallthe and Wales under number 2056420 and its registered address is 14 St. George Street, London W1S 1FE. Telephone calls may be recorded. be may W1S calls 1FE. London Telephone Street, 14 is George St. address England in registered its and incorporated 2056420 is 119269. is number company The number under Wales and reference firm The Authority. Regulation and Prudential Authority the and Regulation Authority Prudential Conduct the by Financial authorised the by is which regulated Limited, Bank Benson Kleinwort of names brand the are Hambros Kleinwort and Benson Kleinwort information Important

KH168 15.08.2017