LegaL & LgegaeneraL & LgeneraL InfLatIon Protected ... · household might buy, including food, heating, household goods and travel costs. Uniquely, RPI also includes housing costs

LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURESLegaL & generaL InfLatIon Protected dePosIt Bond 2

This is an important document. Please keep it safe for future reference.

MaKe InfLatIon WorK for YoU.

KeY featUres and terMs and condItIons• 16% gross/3.01% AER minimum return.

OR

• 100% of any growth in the Retail Prices Index (RPI), if greater.

• The return of your original investment.

• Fixed term of five years.

OFFER OPEN 9 JANUARY 2012 TO 2 MARCH 2012

LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES02

tHe LegaL & generaLInfLatIon Protected dePosIt Bond 2.

In UnPredIctaBLe econoMIc tIMes, it's good to know what to expect from your savings. The Legal & General Inflation Protected Deposit Bond 2 (the plan) is an investment designed to provide a 16% minimum return at the end of five years, whatever happens on the stock market. Or, if there's a dramatic rise in inflation between now and January 2017, your return will match it so, at the very least, your spending power is protected and you'll be able to buy as much with your savings in five years as you can now.

WHat Is tHe LegaL & generaL InfLatIon Protected dePosIt Bond 2?• Has a fixed term of five years.

• Aims to provide a minimum return or if greater a return that matches inflation as measured by the Retail Prices Index.

• Also offers the potential for growth.

• Can be held as a Deposit Plan or an ISA.

WHat WILL I get BacK?The Legal & General Inflation Protected Deposit Bond 2 aims to pay back your original investment at the end of the five year term, plus the greater of:

• a 16% minimum return, OR

• 100% of any growth in the Retail Prices Index.

The growth of the Retail Prices Index will be measured using the level of the index in January 2012 and level of the index in January 2017.

LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES

LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES 03LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES

IMPortantYou may lose some or all of your money if The Royal Bank of Scotland plc or the bank or building society that provides our client bank account is unable to pay back your money. Legal & General is not responsible to you if these firms do not pay what they owe. In these circumstances you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS).

See page 12 for more information about the FSCS.

See page 13 for important information about how your money is held.

WHat Is InfLatIon?Inflation is a rise in the general level of prices for goods and services over a period of time. As the rate of inflation rises, the real value of the pound in your pocket, and the money in your savings account, falls because you can buy less with the same amount. If the rate of inflation is higher than the return on your deposit account it means, even though on paper your savings are growing, they would actually be worth less.

WHat Is tHe retaIL PrIces IndeX?The Legal & General Inflation Protected Deposit Bond 2 uses the Retail Prices Index (RPI) to measure inflation. RPI is a familiar general purpose way of measuring UK inflation available continuously since June 1947.

RPI is calculated by the Office for National Statistics each month by taking a sample of goods and services that a typical household might buy, including food, heating, household goods and travel costs. Uniquely, RPI also includes housing costs such as mortgage interest and Council Tax payments.

HoW does MY PLan WorK?You give us your money (your investment) and we open a plan for you. We will be your Deposit Plan and ISA Manager and your point of contact. We are not a bank or building society so under investment rules we cannot hold your money on deposit. We therefore pass your money on to The Royal Bank of Scotland plc.

• The Royal Bank of Scotland plc holds your money, as Deposit Taker, until the end of the five year term.

• The Royal Bank of Scotland plc passes your original investment plus any returns back to us at the end of five years. This can take up to two working days.

• The money will then be made available to you. We will deal with your request within seven working days from receiving your instructions. Please note that you may not receive payment in your account until several days later.

HoW Long sHoULd I HoLd MY PLan? To benefit from the stated returns you must hold your Legal & General Inflation Protected Deposit Bond 2 until 22 March 2017 – the full five year fixed term.

can I access MY MoneY earLY?If your situation changes, you can take your money out early. If you do, you could get back less than you originally invested, depending on the value of your investment at that time, as determined by The Royal Bank of Scotland plc.

If you take some of your money out, this will affect how much you get back at the end of the fixed term.

Is MY MoneY safe?Once your money is held by The Royal Bank of Scotland plc, the deposit taker for this plan, it has the same security as any other bank or building society account.

04 LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES

contents

KeY featUres of tHe LegaL & generaL InfLatIon Protected dePosIt Bond 2

08

16

23

WHat are KeY featUres?The Financial Services Authority is the independent financial services regulator. It requires us, Legal & General, to give you this important information to help you decide whether the Legal & General Inflation Protected Deposit Bond 2 is right for you. You should read this document carefully together with the Terms and Conditions so that you understand what you are buying, and keep it safe for future reference.

fIndIng oUt MoreThis icon appears when more detailed information is available elsewhere.

IMPortant InforMatIon – YoUr QUestIons ansWered

terMs and condItIons

addendUM

05

05LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES

KeY featUres of tHe LegaL & generaL InfLatIon Protected dePosIt Bond 2

KeY featUres of tHe LegaL & generaL InfLatIon Protected dePosIt Bond 2.The Legal & General Inflation Protected Deposit Bond 2 is designed to offer, at the end of the five year term, the return of your original investment, plus:

• a 16% minimum return, or if greater;

• 100% of any growth in the Retail Prices Index.

This plan can be held as a deposit plan or a cash ISA.

The growth of the Retail Prices Index will be measured using the level of the index in January 2012 and level of the index in January 2017.

You will earn pre investment interest at a fixed rate equivalent to 0.60% gross/AER from the date your payment is treated as cleared until 19 March 2012. This interest will be included in your total investment amount.

The gross rate of interest is the rate payable before the deduction of income tax. AER stands for Annual Equivalent Rate. It shows what the interest rate would be if it was paid once each year. This lets you compare interest rates across different accounts and what return you can expect from your savings over time. Every advertisement for a savings product that quotes an interest rate will contain an AER.


Is tHe LegaL & generaL InfLatIon Protected dePosIt Bond 2 rIgHt for Me?

HoW Is tHe PLan retUrn caLcULated?

tHIs PLan MaY Be rIgHt for YoU If YoU are LooKIng for:• your money to be invested for a fixed term of

five years;

• a known minimum return on your money;

• the potential for a return linked to the Retail Prices Index;

• a deposit based plan or cash ISA (and you have other money set aside for short-term needs/emergencies and any debts you may have);

• a new home for your cash ISA.

tHIs PLan MaY not Be sUItaBLe If YoU are LooKIng for:• access to your money during the fixed term;

• an investment in the stock markets;

• a way to set aside money for emergencies or to cover any debts;

• a return linked to shares.

The return will be dependent on the performance of the Retail Prices Index. At the end of the five year term you will receive either:

• a 16% gross/3.01% AER minimum return, or if greater;

• 100% of any growth in the Retail Prices Index; plus

• the return of your original investment.

The Retail Prices Index (RPI) is a well known measure of the change in prices for goods and services bought by most UK households, which shows inflation. It is compiled by the Office for National Statistics (ONS) and is published on a monthly basis. It uses a ‘shopping basket’ of items that are representative of consumer spending patterns and is reviewed every year to ensure it is up to date. The items in the basket reflect the importance to an average household's budget and unlike other measures also include housing costs. The RPI measures the change in the total cost of the ‘shopping basket’. The inflation figure, known as the rate of inflation, is usually shown as the percentage change between the month the RPI was calculated and the same month a year ago. This Plan measures the change in the RPI over the full five year term rather than the yearly change in prices. Please see table below for more details on how the return is calculated.

For more information about the index you can visit http://www.statistics.gov.uk

We will measure the level of the RPI in January 2012, this is the starting level. We will then compare that to the level of the index in January 2017.

The table below shows what would happen to a £5,000 investment based on various growth levels of the index. These figures do not take into account any pre-investment interest. These levels are examples only and give no guarantee of the index’s performance.

DEPOsIt PlAn AmOunt REcEIvED At thE EnD Of

thE fIvE yEAR tERm*

chAnGE In RPI IsA AmOunt REcEIvED At thE EnD Of thE fIvE

YEAR TERM

GROwth REcEIvED At thE EnD Of thE fIvE yEAR tERm

-10% £5,640 £5,800

0% £5,640 £5,800

10% £5,640 £5,800

15% £5,640 £5,800

30% 30% (RPI return) £6,200 £6,500

* For the deposit plan the amounts received in the above table are shown after the deduction of income tax at the basic rate. A note about United Kingdom income tax: higher rate and additional rate tax payers will have further tax to pay on growth payments in a Deposit Plan, and if you are in receipt of age allowance, the interest could impact on your entitlement. If you pay tax at less the basic rate, you may be able to reclaim some or all of the tax deducted from HM Revenue and Customs.

All information is based on our understanding of current taxation in the United Kingdom, which may be subject to statutory change.

16% (minimum return)




LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES 07

HoW MUcH can I PUt In tHe PLan?

for dePosIt PLansYou can invest a lump sum of £500 or more; there is no maximum amount.

for casH Isa for 2011/2012 taX Year• The minimum you can invest is £500.

• The maximum you can invest is £5,340.

for Isa transfers• The minimum you can invest is £500 from each

ISA Manager.

• There is no maximum transfer amount.

During the offer period you can make as many transfers as you wish, subject to minimum investment limits.

The dates for this current issue are shown below. Once the offer period has closed, you can’t make any more additional investments.

MaXIMUM offer PerIodLegal & General (Portfolio Management Services) Limited may, in exceptional circumstances, close an issue early. This may occur if too little money is received to make the issue viable or because the issue has been over subscribed. If your application is not accepted then your investment will be returned in full.

WHo Is tHe roYaL BanK of scotLand PLc (tHe dePosIt taKer)?

From the start date to the end of the fixed term your money will not be invested with Legal & General. It will be passed to The Royal Bank of Scotland plc, an authorised deposit taker.

The Royal Bank of Scotland plc is rated as 'A', with a stable outlook, by Standard & Poor's, 'A2', with a negative outlook, by Moody's and 'A' with a stable outlook, by Fitch (at the time of publication of this brochure).

See page 14 for more information on these ratings and the credit rating agencies.

WHat cHarges and eXPenses WILL I Have to PaY?

HoW does tHe Pre-InvestMent Interest WorK?

As with other deposit products, there are no charges for you to pay out of your investment. The cost of providing the stated returns for this plan is taken into account in setting those returns.

Any pre-investment interest will be included with your original investment. For deposit plans it will be paid net of UK income tax at the basic rate (currently 20%). For ISAs it will be paid gross. Following receipt of your application, payments by debit card will be treated as cleared after four business days and by cheque after one business day.

PLan terM and IMPortant dates

Offer available: 9 January 2012 to 2 march 2012

start date: 22 march 2012

End of fixed term: 22 march 2017

Deposit and IsA application deadline: 02 march 2012

IsA transfer application deadline: 17 february 2012

08 LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES

IMPortant InforMatIon. YoUr QUestIons ansWered.

We are the Deposit Plan and ISA Manager for a range of fixed term deposits known as Legal & General Deposit Bonds. The Legal & General Inflation Protected Deposit Bond 2 is part of this range.

Where we refer to Legal & General Deposit Bond Plan in this brochure, we are referring to features that are the same in each plan in the range.

Where we refer to Legal & General Inflation Protected Deposit Bond 2, we are covering a feature specific to this plan.


WHY cHoose LegaL & generaL?The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 30 June 2011, we were responsible for investing £370 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.

WHat are tHe rIsK factors?• If the Deposit Taker is unable to pay us what they

owe, you could lose some or all of your money.

• If you have to take out some or all of your money before the end of the fixed term, you may receive back less than you originally invested.

• Under extraordinary circumstances, there might be a delay in returning your money to you at the end of the five years.

See 'Could there be a delay in returning my money to me?' on page 10 to find out more.'

IsA only:• The favourable tax situation of ISAs may not be

maintained.

UsIng YoUr Isa aLLoWanceThere are two types of ISA, a cash ISA and a stocks and shares ISA.

for the 2011/2012 tax year

The maximum investment for a cash ISA is £5,340 and £10,680 for a stocks and shares ISA. These can be held with the same or different managers. The total ISA limit for this tax year is £10,680, but please note that this maximum includes any amount you may hold in a cash ISA. This product is only available as a cash ISA.

IsA transfersThe Legal & General Deposit Bond ISA is available for transfers from cash ISAs taken out in this or previous tax years.

If you hold a cash ISA for this tax year or for a previous tax year, you can transfer it to a Legal & General Inflation Protected Deposit Bond ISA. There is no maximum limit to the amount you can transfer but the minimum is £500 for each ISA Manager. Legal & General will make no charge for receiving such transfers, however, you should check whether your existing manager will charge an exit fee or penalty. You will not benefit from any returns while the transfer is pending. If you start a cash ISA and transfer to a stocks and shares ISA in the same tax year, any amount you have contributed will count towards your stocks and shares allowance. This means any amount of your allowance you have not used, could be invested into a new cash ISA.

IsA transfers to legal & GeneralIf you wish to transfer your current or a previous tax year cash ISA to Legal & General, the minimum transfer amount is £500 from each ISA manager. You will need to complete the relevant section of the application form. Remember, if you are transferring a cash ISA taken out in the current tax year, you must transfer your whole ISA investment, that you have subscribed in this year. Once we have received your transfer form, we will send it to your existing manager who will take it as authority to cash in your investment according to their Terms and Conditions. They will then send the transfer proceeds directly to Legal & General for investment. Your existing manager may charge an exit fee or penalty. Please note that transfer applications must be received two weeks prior to the end of the offer period of the relevant plan.

IsA transfers from legal & GeneralIf you wish to transfer your cash ISA from Legal & General to another manager, we will need notification from them in writing. On receipt of their notification, your investment held within your ISA will be cashed in and the cash value will be transferred to your new manager.

Please note, if the request to transfer is received by Legal & General before the end of the fixed term, it will be subject to the conditions as described in ‘Can I cash in my plan before the end of the fixed term?’ on page 10.

If you have invested in your cash ISA in the same tax year in which you wish to transfer your account, you must transfer the entire cash ISA holding. You will not benefit from any returns while the transfer is pending.


WHo can Invest?• You must be aged 18 years or over to apply.

• Deposit plans are not available to US persons.

• ISAs must be held in your name only.

• ISAs are only available to those resident and ordinarily resident in the UK for tax purposes. Details about resident and ordinarily resident are available from your tax office or on HM Revenue & Customs' website.

HoW to aPPLYTo invest in this plan, please complete the application form provided or you can also apply with a Maestro or Visa Debit card by telephone.

All applications must be received by us before the date on the top of the application form.

To help with your own administration, you can choose a reference (called a ‘designation’) to help identify your investments. This may be useful if you want to hold the plan for a specific purpose. Whatever the reason, you’ll remain the owner of any referenced account.

WHat Is tHe reLatIonsHIP BetWeen LegaL & generaL and tHe dePosIt taKer?Legal & General (Portfolio Management Services) Limited is the Plan and ISA Manager for the Legal & General Deposit Bond.

We do not hold your money but will pass it to the Deposit Taker. We will be your Deposit Plan and ISA Manager and point of contact.

HoW Is tHe PLan LInKed to tHe IndeX?Investments will be purchased from financial institutions that provide you with the link to the index. Any growth you receive will be determined by the return of the actual index.

coULd tHere Be a deLaY In retUrnIng MY MoneY to Me?If an Extraordinary Event occurs this will result in circumstances beyond our reasonable control and we may not be able to perform our obligations set out in the Terms and Conditions, this may result in any growth payment due to you being disrupted, adjusted, reduced or delayed.

If an Extraordinary Event occurs:If you are being disadvantaged we’ll let you know as soon as we can, wherever possible.

We will not be liable or responsible for any failure or delay in performing any of our obligations described in the Terms and Conditions.

Please refer to page 23 of these Terms and Conditions for a definition of Extraordinary Event.

WHat docUMentatIon WILL I receIve?Within six days of our receipt of your application we will send you a welcome letter and a notice giving you the right to cancel the plan.

On the start date of the issue, an opening statement will be sent to you giving you details of your plan.

Every 12 months we will send you a statement and a confirmation of your holding. For joint holders of deposit plans, we’ll send all correspondence to the first applicant, in their name only, unless you request otherwise. If you are investing jointly, we’ll need all investors to sign for future transactions.

WHat HaPPens If I Want to canceL?You will receive notice of your right to cancel your plan, and you will then have 14 days in which you can change your mind. You can cancel your plan by simply returning your completed cancellation notice form and you will have your investment returned with any interest earned.

See the ‘Contacts’ section on page 15.

If you decide to cancel an ISA transferred to Legal & General, you will lose the ISA entitlement relating to that transfer and the proceeds will be sent to you.

If you do not exercise your cancellation rights within the 14 day cancellation period then:

• you will remain invested in your chosen Legal & General Deposit Bond Plan; and

• you will be subject to all the risks as detailed in these Key Features and; if held in an ISA;

• you forfeit your right to contribute to any other cash ISA with another manager for the tax year that you make this investment; and

• you will not be able to replace any contributions withdrawn within the same tax year, unless the amount you wish to invest is within your unused ISA allowance.

can I casH In MY PLan Before tHe end of tHe fIXed terM?If your situation changes, you can get your money out early. However if you do, you could get back less than your originally invested. It depends on the current value as determined by the deposit taker. If you do need to take out some or all of your money, you should contact us by the 7th or 20th of each month.


We will deal with your request within five working days of these dates. Please note that you may not receive payment in your account until several days later. You can take out £500 or more, but you must leave at least £500 to keep your ISA open. You can, of course, take all your money and close your ISA.


WHat HaPPens to MY PLan If I dIe?For ISAs or deposit plans held in one name, when we receive proof of death and all other documentation needed to make a payment we will either:a) repay the current value and any applicable interest,

to your personal representatives; or

b) transfer the investment to a named beneficiary(ies), to continue the investment until the end of the fixed term. If this option is chosen, your beneficiary(ies) will receive, and must agree to, the relevant Terms and Conditions.

If you die before the end of the term, and the holding is not retained until that date, your personal representatives may get back less than the original investment, dependent on the current value as determined by the Deposit Taker.

For deposit plans held in joint names, the plan will continue in the name of the survivor.

WHat HaPPens at tHe end of tHe fIXed terM?At the end of the fixed term, the Deposit Taker will pay Legal & General the original investment, plus any applicable returns, within two working days. If you have taken any money out, the amount paid will be reduced accordingly. Around the end of the fixed term, we will write to you outlining the options available to you. You will retain your ISA status whilst we are waiting for your instructions. Once we have received your instructions, we will deal with your request within seven working days from the end of the fixed term or from receipt of your instructions. Please note that you may not receive payment in your account until several days later. We will hold the proceeds of your Plan in an interest bearing client account for at least three months until we receive your instructions. The interest rate on the account is variable and will be notified to you at the end of the fixed term. All interest earned will belong to you. For deposit plans, the interest will be paid net of UK income tax at the basic rate (currently 20%). For ISAs, the interest will be paid gross. If we don't hear from you after three months we may transfer the proceeds to a non-interest bearing account and/or return them to your nominated bank or building society account.

WHat’s MY taX LIaBILItY?The following tax assumptions are based on our understanding of current taxation in the UK and are subject to change. The value of tax advantages will depend on your individual circumstances and where your money is invested. If you need tax or legal advice, please contact a financial adviser.

for Deposit PlansAny income and/or growth will be treated as interest. Any interest paid will be paid net of UK income tax at the basic rate (currently 20%) as required by law. This satisfies the income tax liability for a basic rate taxpayer. Higher rate and additional rate tax payers will have further tax to pay.

If you are in receipt of age allowance, the interest could impact on your entitlement.

If you are a non-tax payer or your taxable income is below the starting rate for savings income, currently £2,560, you may be able to reclaim some or all of the tax deducted from HM Revenue & Customs using the tax voucher that will be provided.

Details about reclaiming tax are available from your tax office or on HM Revenue & Customs’ website.

Any interest payments from the investment will not be subject to capital gains tax. If you are an investor residing abroad, depending on your residency status, you may be liable to pay tax in a country outside the UK. If so, you may be liable to tax on any income or capital gains. If you need advice, you should consult a suitable tax adviser or the tax authorities in the country concerned.

for IsAsUnder current legislation, all cash ISA investments are free of tax. Therefore, any returns will be paid tax free.

If you are an investor residing abroad, depending on your residency status, you may be liable to pay tax in a country outside the UK. If so, you may be liable to tax on any income or capital gains. If you need advice, you should consult a suitable tax adviser or the tax authorities in the country concerned.

Please remember, you must be resident and ordinarily resident in the UK for tax purposes to subscribe to an ISA.


HoW MUcH WILL anY advIce cost?Legal & General will pay your adviser for any new investment.

Your adviser will give you details of the amount that Legal & General will pay them. The amount will depend on the size of your investment. The cost is already taken into account in calculating the returns stated at the beginning of this brochure. If you are applying direct to Legal & General there is no cost of advice.

HoW do YoU sUPPort advIsers?We provide intermediary firms and advisers with additional benefits that are designed to enhance the quality of their service to you.

These benefits may include some or all of the following: training, software, seminars and marketing materials. Further details of any benefits received from us are available on request from your intermediary firm/adviser.

WHat If I’ve anY doUBt aBoUt tHe sUItaBILItY of tHIs PLan or reQUIre PersonaL advIce?this brochure does not provide personal advice or recommendation. It is important that you only invest in this product if it meets your needs. It will only be suitable if you are prepared to invest your money for a fixed period of time. Your should have separate money set aside for emergencies. Investing in the cash ISA means you cannot invest in another cash ISA in the same tax year. If you do invest in the cash ISA, you will be limiting the amount of investment in equities that can be made through ISAs. Please refer to the beginning of the brochure for further details of the current issue. If you are unsure of the suitability of this plan for your needs, please contact your financial adviser or us for advice. We can only advise on Legal & General's life assurance and investment products.

WHat Is MY cUstoMer categorY?We are required by our regulator (the Financial Services Authority) to categorise our customers to determine the level of investor protection they receive. If you buy products from this brochure you will be treated as a retail client, unless we agree otherwise.

You can choose to be categorised as a professional client or an eligible counterparty, but this means you receive less information about our products and services. Also, you would not be entitled to receive a suitability report or appropriateness assessment where these would be required for retail clients. If you are a professional client or eligible counterparty, you can ask to be categorised as a retail client, although this does not necessarily mean you can refer any complaints to the Financial Ombudsman Service, and you may not be eligible for compensation under the Financial Services Compensation Scheme.

WHY do I need to Prove MY IdentItY?To protect you and us from financial crime, we may need to confirm your identity from time to time. We may do this by using reference agencies to search sources of information about you (an identity search). This will not affect your credit rating. If this identity search fails, we may ask you for documents to confirm your identity. In certain circumstances, we may need to contact you to obtain more information regarding your investment.

MaXIMUM offer PerIodLegal & General (Portfolio Management Services) Limited may in exceptional circumstances, close an issue early. This may occur if too little money is received to make the issue viable or because the issue has been oversubscribed. If your application is not accepted then your investment will be returned in full.

coMPLaIntsIf you wish to complain about any aspect of the service you receive from Legal & General, or would like us to send you a copy of our internal complaints handling procedure, please contact us.


Should you feel that your complaint is not dealt with to your satisfaction, you may be entitled to take the matter up with the:Financial Ombudsman ServiceSouth Quay Plaza183 Marsh WallLondonE14 9SR

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

coMPensatIonThe Financial Services Compensation Scheme (FSCS) is triggered when an authorised deposit taker (such as a bank, building society or credit union) is unable, or likely to be unable, to repay its depositors. Joint account holders are each entitled to claim compensation. The Royal Bank of Scotland plc as both the deposit taker for this plan and the provider of our client money account is covered by the FSCS. Your ability to claim from the FSCS and the amount you may be entitled to will depend on the specific circumstances of your claim. Most depositors, including individuals and small businesses, are covered by the FSCS. The FSCS covers the first £85,000 of each customer’s claim against each bank or building society. Some banks and building societies operate under a number of trading names. The total FSCS compensation claim will include claims against all these trading names.

You can find out more about the FSCS (including amounts and eligibility to claim) by visiting its website www.fscs.org.uk or calling 0800 678 1100.


WHere Is MY MoneY HeLd and HoW secUre Is It?

DuRInG thE fIxED tERmBEFORE THE sTART dATE ANd AftER thE fIxED tERm

Where is my money held?

Is my money secure in the event that the bank/building society holding my money becomes insolvent?

Is my money secure in the event that Legal & General becomes insolvent?

Does my money have the same security as a traditional savings account?

Your money is held on deposit in a client account with a bank or building society. This is currently The Royal Bank of Scotland plc.

Yes, although any investment in this plan will contribute towards your total claim against the bank or building society.

If your total claim for compensation against The Royal Bank of Scotland plc is £85,000 or less, including the money you have put in this Plan, you should get back all of your money. If your claim is more than £85,000 in total, you may lose some or all of the money you hold in this Plan.

The Royal Bank of Scotland plc operates under the trading names of The Royal Bank of Scotland plc, Direct Line, Lombard, the One Account, Child & Co, Drummonds and Holt's. The total FSCS compensation claim will include claims against all these trading names.

Yes – as your funds are held on deposit in the client account they are kept separate from Legal & General’s funds.

Yes.

Your money is held on deposit by The Royal Bank of Scotland plc.

Yes, although any investment in this plan will contribute towards your total claim against The Royal Bank of Scotland plc.

If your total claim for compensation against The Royal Bank of Scotland plc is £85,000 or less, including the money you have put in this Plan, you should get back all of your money. If your claim is more than £85,000 in total, you may lose some or all of the money you hold in this Plan.

The Royal Bank of Scotland plc operates under the trading names of The Royal Bank of Scotland plc, Direct Line, Lombard, the One Account, Child & Co, Drummonds and Holt's. The total FSCS compensation claim will include claims against all these trading names.

Yes – as your funds are held on deposit with The Royal Bank of Scotland plc they are kept separate from Legal & General’s funds.

Yes.


dePosIt PLan, Isa Manager and dePosIt taKer

dePosIt PLan and Isa ManagerLegal & General (Portfolio Management Services) LimitedRegistered office:One Coleman StreetLondon EC2R 5AARegistered in England No. 2457525.

Legal & General (Portfolio Management Services) Limited is authorised and regulated by the Financial Services Authority (FSA). We are on their register under the following number:

Legal & General (Portfolio Management Services) Limited 146786.

You can check this at www.fsa.gov.uk or by contacting them on 0845 606 1234.

dePosIt taKer The Royal Bank of Scotland plc 250 Bishopsgate London EC2M 4AA

Telephone: 020 7627 4700

Registered in Scotland No. 90312.

The Royal Bank of Scotland plc are authorised and regulated by the Financial Services Authority (FSA). They are entered on the FSA register under number 121882.

You can check this at www.fsa.gov.uk or by contacting them on 0845 606 1234.

For further details on The Royal Bank of Scotland Group plc financial performance and shareholder information please visit www.investors.rbs.com

regULatorThe Financial Services Authority25 The North ColonnadeCanary WharfLondon E14 5HS

The Terms and Conditions, which are governed by English law, shall apply as soon as an application is accepted. In the event of any conflict between the Financial Services Authority's regulations and the Terms and Conditions, the former will prevail. The Terms and Conditions and all communications will only be available in English.

All communications from us will normally be by letter or telephone.

credIt ratIng agencIesStandard & Poor’s, Moody’s and Fitch are independent ratings agencies that use their own research and analysis to provide a credit rating for a deposit taker.

Credit ratings can be a useful way to compare the credit risk associated with different product providers and related investments. Credit ratings are assigned by independent companies known as ratings agencies and reviewed regularly. Moody’s rate companies from Aaa (Most Secure/Best) to C (Most Risky/Worst), Standard & Poor’s rate companies from AAA (Most Secure/Best) to D (Most Risky/Worst) and Fitch rate companies from AAA (Most Secure/Best) to D (Most Risky/Worst). These credit ratings are reviewed on a regular basis and are subject to change by these agencies.

A rating outlook indicates the likely rating trend over a one to two year period. It reflects financial or other trends that have not yet reached the level that would trigger the rating agency to change its rating of the product provider, but which may do so of such trends continue. A stable outlook means that the rating is unlikely to change in the short term. A negative outlook means that the rating may be lowered in the near future.

The credit rating is not a recommendation to purchase, sell, or hold a financial obligation, as it does not comment on market price or suitability for a particular investor. It also does not provide assurance that institution cannot fail.


gIvIng notIceLegal & General shall not be bound to act in accordance with the instructions of anyone other than you or your personal representatives.

Any notice given to Legal & General by you must be in writing (or any other method deemed acceptable by Legal & General) and should be sent to, and will only become effective on receipt at, one of the following:

for postal instructions:Legal & General InvestmentsPO Box 6080WolverhamptonWV1 9RB

or

for couriered instructions:Legal & General InvestmentsEDM HouseVillage WayBilstonWolverhamptonWV14 0UJ

or such other address of which you may be notified after acceptance.

Legal & General will acknowledge such notice and comply with it except where we believe that compliance would be impracticable or contrary to any law or rule or regulation.

contactsYou can call us on the telephone number below for general information, buying or queries about your plan.

Customer Services: 0370 050 3350

Lines are open Monday to Friday 8.30am to 6.00pm. We may record and monitor calls. Calls to this number will not exceed your fixed line or mobile phone provider’s national rate and will be included in any inclusive free minute plan or discount scheme you may have with your telephone provider. Call charges will vary between telephone providers. This number may not be available from outside the UK.

You can write to us at this address, if you want/need to obtain information, give us instructions or have any queries or complaints:

Legal & General InvestmentsPO Box 6080WolverhamptonWV1 9RB

This is the end of the Key Features. The rest of the document contains the Terms and Conditions that you should also read.

016 LegaL & generaL InfLatIon Protected dePosIt Bond 2 – TERMS AND CONDITIONS16

terMs and condItIons.

LegaL & generaL InfLatIon Protected dePosIt Bond 2 – TERMS AND CONDITIONS 17

“Early Application Interest” means the interest youwill earn on monies received by us from you with yourApplication before the end of the Plan Opening Period,which is calculated on a daily basis at the rate shownin the relevant Addendum.

“Early withdrawal Adjustment” means an adjustment made to your Plan should you make a withdrawal/transfer/close your Plan before the Maturity Date and which is calculated by the Deposit Taker inaccordance with the relevant Addendum.

“Early withdrawal Amount” means the amount youwill receive should you close your Plan prior to theMaturity Date. Early Withdrawal Amount = Balance(or part there of for a partial withdrawal) – EarlyWithdrawal Adjustment. The remaining Balance willthen be adjusted accordingly.

“Early withdrawal Deadline” means 5.00pm on boththe 7th and 20th day of each month or where this isnot a Business Day, then the previous Business Day.

“Extraordinary Event” means a significant event asdetailed in the relevant Addendum.

“Income Interest” means any interest paid betweenthe Start Date and the Maturity Date as detailed inthe relevant Addendum.

“maturity Date” means the date on which a specificoffering of the Deposit Bond is due to mature, asdetailed in the relevant Addendum.

“maturity Interest” means the interest payable at theMaturity Date as detailed in the relevant Addendumand payable in accordance with Clause 4.

“Plan” means either your Account and/or Deposit Plan.

“Plan Opening Period” means the period during whichwe may accept Applications to make subscriptions intothe Plan or a specific offering of the Deposit Bond asdetailed in the relevant Addendum.

“Related company” means any company whichis a subsidiary or holding company of the AccountManager or which is a subsidiary of any such holdingcompany and for which purposes the expressions‘subsidiary’ and ‘holding company’ have the samemeanings as in section 1159 of the Companies Act 2006.

“start Date” means the date on which your Deposit isinvested by the Plan Manager in the Deposit Accountand your Deposit Bond commences, as detailed in therelevant Addendum.

“terms and conditions” means these terms and thosein any relevant Addendum.

“written” or “in writing” means an instructionincluding your original signature.

“you” means the individual(s) or Trustee or CorporateBody making the application and opening a Plan.

1. defInItIons“Account” means that part of your Plan that is a cashIndividual Savings Account (“ISA”) which includesany cash ISA transferred from an existing cash ISAcontracted under these Generic Terms and Conditionsand any relevant Addendum.

“Account manager, Plan manager, Deposit Planmanager, we, us, or our” means Legal & General(Portfolio Management Services) Limited or suchsuccessors or assignees as we shall notify youunder Clause 14.

“Addendum” means additional Terms and Conditionswhich relate to a specific offering of the Deposit Bondwhich apply with and in addition to these Genericterms and conditions.

“Application” means the properly completedapplication form for investment into your Planand includes an application for an ISA transfer.

“Balance” means a Deposit into this Plan for anyspecific offering of the Deposit Bond as detailedin the relevant Addendum less any withdrawalsand/or adjustments.

“Brochure” means the document describingthe important characteristics of the Plan to whichyour application relates, including its aims andassociated risks.

“Business Day” means a day (other than Saturdayor Sunday) on which commercial banks are openfor business in London.

“Deposit” means the amount you invest in aspecific offering of the Deposit Bond, which is yoursubscription plus any Early Application Interest.

“Deposit Account” means one or more depositaccounts established by the Plan Manager, with theDeposit Taker in respect of the Deposit together withdeposits made by the other investors in an offering.A separate deposit account or deposit accounts willbe established for each offering of the Deposit Bond.

“Deposit Plan” means that part of your Planthat is not an ISA contracted under these GenericTerms and Conditions and any relevant Addendum.

“Deposit taker” means the licensed deposit takerdetailed in the relevant Addendum.

LegaL & generaL InfLatIon Protected dePosIt Bond 2 – TERMS AND CONDITIONS18

4. ManagIng YoUr PLan(a) During the Plan Opening Period your subscription will

be held by the Plan Manager in a designated client money account. The Plan Manager will pay into your Plan the Early Application Interest immediately prior to the Start Date.

(b) The Deposit will be invested by the Plan Manager in the relevant Deposit Account on the Start Date.

(c) The Deposit will be held on deposit by the Deposit Taker in the Deposit Account until the Maturity Date unless terminated earlier in accordance with these Terms and Conditions.

(d) Any Income Interest is paid as detailed in the relevant Addendum. The income will be paid into the bank or building society account as detailed in your Application or any account held by you that you subsequently inform us about in Writing.

(e) By the end of the second Business Day after the Maturity Date the Account Manager will pay the Balance plus Maturity Interest into your Plan less any deduction for tax as detailed in Clause 10.

for Deposit Plans: Around the Maturity Date, we will write to you outlining the options available to you. We will hold the proceeds of your Deposit Plan in an interest-bearing client account for a reasonable period until we receive your instructions. All interest earned will belong to you.If we do not hear from you within a reasonable time, we will return the proceeds of your Deposit Plan to your nominated bank or building society account.

for Accounts: Around the Maturity Date, we will write to you outlining the options available to you. We will hold the proceeds of your Account in an interest-bearing client account for a reasonable period until we receive your instructions. All interest earned will belong to you. If we do not hear from you within a reasonable time, we reserve the right to transfer the proceeds of your Account to a non interest-bearing account and/or return the proceeds of your Account to your nominated bank or building society account.

(f) The Plan Manager will be responsible for administering all subscriptions and repayments under your Plan, including any early withdrawal.

(g) We will send you a statement for your Plan yearly. Details of the exact statement dates are available on request from the address in Clause 19. Please note that there is no annual report or accounts (or any other information issued other than your statement). There are no shareholders’, securities holders’ or unit holders’ mailing or voting rights applicable to your Plan.

2. IntrodUctIonThese Terms and Conditions apply to your Plan.

(a) You should read these terms along with the other information contained in our literature including the Brochure and the Application.

(b) The Plan Manager is authorised and regulated by the Financial Services Authority.

(c) Under these Terms and Conditions (and any relevant Addendum), the Plan Manager deals with your deposit as bare trustee. This means that whilst the Plan Manager is the legal owner of the Deposit Account and the deposits of all investors held in the Deposit Account, the money is held for the absolute benefit of you and other investors.

(d) The Deposit Taker is authorised and regulated by the Financial Services Authority to accept deposits.

3. InvestIng In YoUr PLan(a) We may accept a duly completed Application and

payment from you, or in the case of an ISA transfer the payment from the other ISA manager, subject to these Terms and Conditions. We reserve the right to reject an Application if our requirements are not met.

(b) Providing your Application has been accepted then the Deposit will be invested in the relevant Deposit Account on the Start Date subject to the clearance of funds. It will be opened in accordance with the details set out in your Application.

(c) You may only invest by lump sum payment. Acceptable payment methods are detailed in your Application.

(d) Details of the minimum and maximum investment amounts are provided in the Brochure. There is no maximum amount for transfers from existing cash ISAs.

(e) Where an Application is made for an Account other than in Writing, the Plan Manager will make a written declaration confirming all the details provided by you in the Application and send a copy to you. You will have 30 days to notify any corrections to the Account Manager from the date the copy declaration is sent to you. Any revised declaration will take effect from the date of the original declaration by the Account Manager on your behalf. If a revised declaration is received after 30 days have elapsed, that declaration will only take effect from the date it is received at the address in Clause 19. Faxed or email Applications will not be accepted unless by prior agreement with the Plan Manager.

(f) If, 30 days after acceptance, we are still waiting to receive any information reasonably required to verify your identity, we will assume that the Plan is to be closed. As a result the Deposit will be withdrawn on the first Early Withdrawal Deadline after the expiry of the 30 day period and you will receive the Early Withdrawal Amount on the date of the withdrawal. Payments will normally be returned to the original source of the contribution. If this relates to an ISA, your annual ISA entitlement relating to any ISA contribution will be lost.


6. casH HeLd(a) Except when stated in these Terms and Conditions,

interest will not be paid on any money held by us on your behalf that is not invested in the Deposit Account.

(b) All money belonging to clients is held in a separate client account, which is identified as a trust account. All clients’ money is segregated from the funds belonging to the Plan Manager. We will hold money we receive from you for investment in our client account until we make payment to the Deposit Taker to be invested in the Deposit Account.

7. tItLe(a) The deposit made by the Plan Manager with the

Deposit Taker in respect of the Deposit Account will be held for you together with other investors in the Deposit Account on trust in the name of the Plan Manager.

(b) The deposit may not be used as security to borrow money.

(c) Although your investment will be recorded and separately identified by the Plan Manager, your entitlement may not be identifiable by separate documents or certificates of title. Therefore in the event of default by the Deposit Taker or the Plan Manager, any shortfall may be shared pro rata among all investors affected.

(d) During the continuance of your Plan, you will remain the beneficial owner of a proportion of the Deposit Account that relates to the Deposit and of any cash held on your behalf by us before the Start Date or after the Maturity Date.

8. earLY WItHdraWaL, PLan cLosUre and transfers oUt

(a) You may withdraw all or part of your investment from any specific offering under the Deposit Bond or completely close your Plan by giving notice to that effect to the Plan Manager.

The notice must be in Writing. You must be aware that the amount you will receive on withdrawal before the Maturity Date may be considerably less than the amount of the Deposit. Any partial withdrawal instruction must make it clear whether a particular amount, net of the withdrawal adjustment, is required, or a set proportion of the original Deposit.

(b) You may transfer all or part of your Account relating to any specific offering under the Deposit Bond before the Maturity Date, as permitted by the ISA Regulations, to another ISA manager. We can take up to 30 days to process this transfer. You must be aware that the amount you will receive on transfer before the Maturity Date may be considerably less than the amount of the Deposit.

(h) If an Extraordinary Event occurs, the details given in the relevant Addendum and/or fund that the Plan is linked to may be subject to change.

(i) The Account Manager will tell you if your Account has, or will become void because they have failed to satisfy the provisions of the ISA regulations.

Investments by Pension scheme trustees(j) Where a pension scheme trustee (“First Trustee”)

purchases a Deposit Plan and the scheme member subsequently transfers to another pension scheme (“Second Scheme”), we will seek to allow the transfer of the Deposit Plan from the First Trustee to the trustee of the Second Scheme by means of a simple re-registration agreement. This agreement will allow the First Trustee to relinquish all interests in the Deposit Plan and for the Plan Manager to allow the Deposit Plan to be re-registered in the name of the trustee of the Second Scheme who will take over the Deposit Plan on exactly the same terms as the First Trustee. The terms of the original investment cannot be changed in any way on transfer.

5. canceLLatIon(a) You may withdraw your application for the Plan in

writing at any time up to and including the Start Date and receive a full refund of your subscription with any early application interest. We will make payment by direct credit.

(b) Alternatively, you can cancel your Plan within 14 days of receiving your cancellation notice which will be issued following receipt of your Application and subscription. We will terminate your Plan as detailed in (a) above. Your Plan will continue if we do not receive your cancellation notice within the 14 days.

(c) If you exercise the right to cancel an ISA transfer, you will permanently lose your ISA entitlement relating to that transfer.

(d) Cancellation payments will be returned to the original source of subscription unless either of the following apply:

(i) you have requested that any cancellation payment be made directly back to you; or

(ii) the company that sent the funds originally is unable or unwilling to accept the cancellation payment on your behalf.

In these circumstances we will not be able to return cancellations to the original source of subscription and the cancellation payment will be returned to you and will no longer form part of your ISA.


9. deatHFor Deposit Plans held in more than one name, the Deposit Plan will continue in the name(s) of the surviving investors.

(a) In the event of your death as a single named investor, before the Maturity Date, and following receipt of the evidence we require, your personal representatives may elect to either close your Plan (and receive the Early Withdrawal Amount) or transfer your Plan into the name of the personal representatives or a beneficiary of your estate.

Any Account will, in accordance with the ISA Regulations, terminate. If a transfer to your personal representative or beneficiary has been requested, we will open a Deposit Plan in the name of your personal representative or beneficiary with the proceeds of your Plan.

(b) Receipt of the evidence required to enable the Plan Manager to make payment must be received by the Plan Manager by the Early Withdrawal Deadline in order for the Account to be closed on the next Business Day. If such evidence is received after this point the Account will be closed on the Business Day following the next Early Withdrawal Deadline.

(c) If your Plan closes prior to the Maturity Date, the Plan Manager will request the Deposit Taker to pay the Early Withdrawal Amount from the relevant Deposit Account.

(d) The Plan Manager will pay the Early Withdrawal Amount to your personal representatives within five Business Days of the closure of your Plan.

These Terms and Conditions are binding on your personal representatives.

10. taX(a) In respect of a Deposit Plan, unless (c) below applies,

any Early Application Interest, Income Interest and Maturity Interest will be paid after the deduction of income tax at the basic rate of UK Income Tax (currently 20%) and each will form part of your taxable income in the tax year in which they are paid.

(b) The deduction satisfies the UK Income Tax liability for a basic rate tax payer. Higher rate and additional rate tax payers will have further tax to pay and if you are in receipt of age allowance the payments could impact your entitlement. If you pay tax at less than the basic rate, you may be able to reclaim some or all of the tax deducted from HM Revenue & Customs by using the tax voucher we will issue with your payment. We cannot pay interest gross to individuals eligible to complete a form R85.

(c) No tax is currently payable on any Early Application Interest, Income Interest and Maturity Interest arising from investments held in an Account or for a pension scheme and certain other corporate and trustee investments in a Deposit Plan where we have evidence that interest can be paid gross.

(d) Any tax is deducted by the Deposit Taker.

(e) Please note that tax law is subject to change.

(c) Notice of withdrawal, transfer or closure must be received by the Plan Manager by the Early Withdrawal Deadline in order for a transfer, withdrawal or closure to be made on the following Business Day. Requests received after this point will be actioned on the Business Day following the next Early Withdrawal Deadline.

(d) The minimum partial withdrawal or transfer is £500 provided a value of at least £500 remains invested in the Plan.

(e) If your transfer or withdrawal is made or the Plan closed prior to the Maturity Date, the Plan Manager will request the Deposit Taker to pay the Early Withdrawal Amount from the Deposit Account.

(f) For any withdrawal, the Plan Manager will pay the Early Withdrawal Amount to you within 10 Business Days of the withdrawal from or closure of your Plan. Payments will be paid into the bank or building society account as detailed in your Application or any account held by you that you subsequently inform us about in Writing.

(g) For any transfer in relation to an Account, the Account Manager will pay the Early Withdrawal Amount directly to the new ISA manager.

(h) In certain circumstances we may no longer be able or willing to act as Plan Manager. Such circumstances will be as follows:

(i) HMRC removes its approval for us to act as Plan Manager;

(ii) We are no longer qualified to act as Plan Manager due to a change in applicable law or regulation.

(iii) We voluntarily cease to be Plan Manager (in which case we will give you no less than 30 days notice of our intention to cease acting as Plan Manager).

In the event that we can no longer act as Plan Manager we will write to you to let you know how this change will affect the way your investment is managed.

(i) Your Account will become void in the following circumstances:

(i) There is a change to the ISA Regulations which causes us to be unable to continue to offer the Account.

(ii) HMRC policy changes; (iii) Subscription levels are breached; (iv) If you become a US resident; (v) The Account is no longer eligible under ISA rules; (vi) We do not receive a valid application form; (vii) You have subscribed to two or more ISAs of

the same type in the same tax year, thereby breaching subscription limits;

(viii) An error occurs in the event of your death; (ix) The balance of the Account falls below the

minimum subscription amount.

If any of the above circumstances arise we will do our best to give you as much notice as possible that your account will become void. We will also write to you to explain what will happen to your account and the options available to you.


14. assIgnMentWe may appoint another company to be the Plan Manager of your Plan under these Terms and Conditions providing one month’s notice has been given to you.

15. dIscLosUre of InforMatIonThe Plan Manager may disclose any information arising in connection with a transaction under these Terms and Conditions to any relevant authority or as required by such authority (whether or not required under any applicable law or other regulation). If the Plan Manager makes any such disclosure it shall not be liable for that disclosure if it was made by the Plan Manager acting reasonably and in good faith.

16. LIaBILItIes(a) The Plan Manager nor any Related Company shall not

be responsible for any loss incurred except as a result of our fraud, negligence or breach of contract.

(b) In the event of any failure, interruption or delay in the performance of its obligations resulting from any breakdown, failure or malfunction of any telecommunications or computer services or systems, or any event not reasonably within its control, neither the Plan Manager nor any Related Company shall be liable or have any responsibility of any kind for any loss or damage you incur or suffer as a result.

17. cHanges to tHe terMs(a) We may make fair and reasonable changes to these

terms at any time by giving you at least 30 days prior written notice (or for changes to our charges at least 90 days notice) provided that such variations or changes are permitted under the Financial Services Authority Handbook. We’ll only make changes for good reasons as follows:

(i) to make our terms clearer or more favourable to you

(ii) to reflect legitimate increases or reductions in the cost of providing the Deposit Bond to you, which include:

(iii) changes to the basis of taxation applicable to the Deposit Bond or to us in connection with the plan

(iv) costs associated with changes in staff, support services, technology or systems,

(v) the costs associated with investing in your selected funds

(vi) to comply with applicable law, regulation, judgment of any court, regulator or ombudsman or any regulatory guidance or codes

(vii) to reflect a change in our corporate structure that doesn’t have an unfavourable impact on your plan but which does require us to make certain changes to the terms of the plan and doesn’t result in us closing the Deposit Bond.

11. reMUneratIonWe will be paid a maximum of 4.5% of the Deposit amount by the Deposit Taker or by a company in the same group as the Deposit Taker and this has affected the terms available from the Deposit Taker which in turn is reflected in the terms available for your Plan. This will have no effect on the amounts due to you under Clause 4 or Clause 8 of these Terms and Conditions. This remuneration to us will be used to meet distribution costs (including commission paid to the financial adviser who has introduced you to us) as well as our ongoing expenses. You should inform us of any change in your adviser to enable us to keep our records up to date.

12. confLIcts of InterestDuring your investment conflicts of interest may arise between you and us, our employees, our associated companies or our representatives. To ensure we treat investors consistently and fairly, we are required to have a policy on how to identify and manage these conflicts.

A summary of our policy is detailed below. A copy of the full policy is available on request from the address in Clause 19.

We:(a) will consider the interests of all of our customers and

treat them fairly;

(b) will manage conflicts of interest fairly to ensure that all customers are treated consistently and to prevent any conflict of interest from giving rise to a material risk of damage to the interests of our customers;

(c) have in place procedures to ensure that staff identify and report any new conflicts;

(d) will keep a written record of any conflicts or potential conflicts;

(e) if appropriate, will disclose any relevant conflict to a customer before undertaking business with that customer;

(f) will carry out an annual review to identify any new conflicts; and

(g) will ensure new business developments identify any new conflicts of interest.

This policy applies to any company to whom we delegate any of our functions.

13. deLegatIonWe may delegate any of our duties under these Terms and Conditions to any Related Company or other agent and may provide them with information about you and your Plan. However, we will remain liable to you for the performance of any delegated matters. We shall satisfy ourselves that any person to whom we delegate any of our functions under these Terms and Conditions is competent to carry out those functions.


20. coMPLaInts and PoLIcIesWe have a procedure for handling any complaints relating to the operation of your Account, a copy of which is available on request at the address in Clause 19. In the event you are not satisfied, you also have a right of complaint direct to the Financial Ombudsman Service.

Should your complaint relate to any aspect of the service that is provided by the Deposit Taker, we will refer your complaint to the Deposit Taker to deal with.

You can also request copies of the following policies:a) Investments held in joint names;

b) Investments from Overseas;

c) Locating customers without an address.

21. InforMIng Us of cHangesYou agree to inform us, without delay, of any change in your circumstances or status, including in particular any change of address, name, bank account or residency status. Where we do not have an up to date address for you, we may make enquiries to identify your new address and reclaim the cost of tracing.

To this end, we may need to share your details with trusted external parties.

22. tHIrd PartIesOur relationship is with you and we will not recognise the interest or claim of any other person unless we are required to do so by law.

23. LaW and JUrIsdIctIon(a) This document is based on our understanding of

current English law and HM Revenue & Customs practice, both of which may change in the future.

(b) These Terms and Conditions will be governed by and construed in accordance with laws of England.

(c) We will always communicate with you in English.

(d) All communications from us will normally be by letter or telephone.

24. entIre terMsThese Terms and Conditions, any relevant addenda, the Brochure and the completed Application constitute the entire terms on which the Plan is provided to you.

(viii) to provide for the introduction of new or improved systems, methods of operation, services or facilities;

(ix) to correct any mistake that may be discovered in due course;

(x) to reflect an Extraordinary Event (as further detailed in clause [4 (h)]).

If you are unhappy with any change that we make to these terms you can exit the Deposit Bond.

(b) The amendments listed in Clause 17 (a) (i) to (x) will only be made if the overall effect of the amendments mean that you receive comparable terms and returns for the Plan under the revised Terms and Conditions.

18. WHY do I need to Prove MY IdentItY?

To protect you and us from financial crime, we may need to confirm your identity from time to time. We may do this by using reference agencies to search sources of information about you (an identity search).

This will not affect your credit rating. If this identity search fails, we may ask you for documents to confirm your identity.

In certain circumstances, we may need to contact you to obtain more information regarding your investment.

19. notIces or reQUests(a) We will send any notices or other correspondence

to the address you have given us in your application form, or to a new permanent residential address of yours provided you have notified us in Writing of the change.

(b) You should send any notices, instructions, or requests for further information, to us at:

for postal instructions:Legal & General InvestmentsPO Box 6080WolverhamptonWV1 9RB

or

for couriered instructions:Legal & General InvestmentsEDM HouseVillage WayBilstonWolverhamptonWV14 0UJ

We will notify you, if by failure to satisfy the provisions of the ISA Regulations, your Account has, or will, become void.


“AER” means the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.

“Deposit taker” means The Royal Bank of Scotland plc or its successors or assignees.

“Early Application Interest” means a fixed rate equivalent to 0.60% per annum gross/AER paid until 19 March 2012.

“Early withdrawal Adjustment” means an amount calculated by the Deposit Taker by reference to the Balance, subject to an adjustment determined at the relevant time based on the prevailing market conditions, such as, but not limited to, interest rates and the level of RPI.

“Extraordinary Event” means a significant event which is out of our control. Such events include the following:

• Strikes, lockouts or other industrial action;

• Civil commotion, riot, invasion, terrorist attack or threat of terrorist attack, war (whether declared or not) or threat or preparation for war;

• Fire, explosion, storm, flood, earthquake, subsidence, epidemic or other natural disaster;

• Restrictions imposed by legislation, regulation or other governmental initiative that are not as a result of our misconduct;

• Recession or significant economic collapse of a market, company or country that results in a large and sustained reduction in the value of assets;

• Failure of transport networks or other external utilities (for example telecommunications networks, water or power) leading to unavoidable disruption;

• A fundamental change to the formula or method of calculation of the RPI (or any underlying index);

• The suspension, limitation or material disruption of trading on any of the underlying exchanges;

• The underlying exchanges on which the RPI is based failing to open for trading or closing early;

• The announcement that the publication of the RPI (or any underlying index) is to cease;

• The RPI is replaced by another index; or

• The level of RPI is not calculated or published.

“Income Interest” is nil.

“maturity Date” means 22 March 2017.

“maturity Interest” means 16% gross/3.01% AER or 100% of the growth in the RPI, whichever is greatest at the end of the fixed term of five years.

The growth of the RPI will be measured between the January 2012 Retail Price Index Level and the January 2017 Retail Price Index Level.

“Plan Opening Period” means 9 January 2012 to 2 March 2012.

“RPI” means the Retail Prices Index is compiled by the Office for National Statistics (ONS) and is published on a monthly basis. If the RPI Index shall be materially changed or discontinued, Legal & General may (to the extent permitted by law) replace the RPI Index with whichever index the UK Government nominates as a replacement or substitute index to the RPI Index. In addition, for the avoidance of doubt, the Consumer Prices Index may be substituted for the RPI Index should the RPI Index be materially changed or discontinued.

“start Date” means 22 March 2012.

addendUMLegal & General Inflation Protected Deposit Bond 2.

LegaL & generaL InfLatIon Protected dePosIt Bond 2 – KEY FEATURES

Legal & general (Portfolio Management services) Limited Registered in England No. 2457525 registered office: One Coleman Street, London EC2R 5AAThis is also where our head office is in the UK.

We are authorised and regulated by the Financial Services Authority.

Q33865(v2) print date: 12/11 approval number: H126078 expiry date: 26/10/12

www.legalandgeneral.com

Documents

LegaL & LgegaeneraL & LgeneraL InfLatIon Protected ... · household might buy, including food, heating, household goods and travel costs. Uniquely, RPI also includes housing costs