Terms and Conditions

This is an important document which sets out the terms and conditions of your Penfold Pension and how it will be operated. You should read the whole document. If, having read the document, you have any questions, please contact Penfold, whose contact details are at the end of this document.

1. Key Information about these Terms and the Penfold Pension

1.1 These Terms

1.1.1 These Terms apply to your Penfold Pension and the services we provide to you in relation to your Penfold Pension. We recommend that you read these Terms carefully and that you keep a copy safe for future reference.

1.1.2 Our agreement with you is made up of these Terms, your completed Application, and our Charges Guide.

1.2 About the Scheme

1.2.1 Your Penfold Pension is part of the Scheme known as the Penfold Scheme. The Scheme is a registered pension scheme with HMRC which provides pension and death benefits for you and your dependants and or nominees. When you take out a Penfold Pension, you become a member of the Scheme.

1.2.2 The Penfold Scheme is solely funded by contributions made by its members (whether directly or indirectly, eg. by an employer). The members bear the investment risk (which is spread over a range of investments within the Plan), and member contributions are invested in ‘pooled’ funds, along with the cash from other members. You can choose which one of our Plans to invest in but you cannot direct precisely how your contributions will be invested in specific assets within our Plans.

1.2.3 In these Terms, references to “you” or “your” are to you as a member of the Scheme following acceptance by us of your completed Application and receipt of the first payment into your Penfold Pension. It also, where appropriate, includes your personal representatives after your death and any person who is entitled to receive benefits (other than lump sum benefits) following your death.

1.2.4 The operator and administrator of the Scheme is Penfold Savings Limited (Company Number 11668244), which is authorised and regulated by the Financial Conduct Authority with FCA Registration Number 826097. In these Terms, we refer to Penfold Savings Limited as the Operator.

1.2.5 The trustee of the Scheme is Penfold Trustees Limited (Company Number 13007093). In these Terms, we refer to Penfold Trustees Limited as the Trustee.

1.2.6 References in these Terms to “we”, “us” or “our” are references to both Penfold Savings Limited and Penfold Trustees Limited as appropriate.

1.2.7 As your pension provider we are responsible for all aspects of your pension, including enabling you to sign-up, ensuring that your contributions are invested in your pension, providing you with all necessary legal and regulatory information, handling transfers and withdrawals, claiming tax-relief and providing a suitable default investment proposition in collaboration with investment management partners. An important part of being a pension operator is ensuring that our customers get value for money from their pension. We regularly review the Permitted Investments and Plans that are offered in the Penfold Pension, and engage with the Investment Providers to ensure that they continue to be appropriate for our customers. A key part of this process is choosing the Default Plan, which the majority of our customers invest in. We have worked with BlackRock Life Limited to create a new set of Funds that constitute our Default Plan, the Penfold Plan, which is available to you. We will continue to keep the performance of our Plans under review to ensure that they remain appropriate to our customers and reflect their long-term investment goals.

1.2.8 The custodian of the Life Policy assets is the Bank of New York Mellon (Company number BR00818), is authorised and regulated by the Financial Conduct Authority with FCA Registration Number 122467. There is no separate agreement between you and the Bank of New York Mellon in relation to the Default Plan which is a Life Policy.

1.2.9.The Operator has appointed Seccl Custody Limited to provide custody (except for custody of Life Policy assets - see clause 1.2.7) and associated services to the Scheme. These are set out in more detail at Schedule 1 – Custody Terms and form a separate agreement between you and Seccl Custody Limited. Seccl Custody Limited (Company number 10430958) is authorised and regulated by the Financial Conduct Authority with FCA Registration Number 793200. In these Terms, we refer to Seccl Custody Limited as the Custodian.

1.2.10 The Scheme was set up under a trust deed dated 22 June 2020 and is governed by the trust deed and rules as amended from time to time (referred to in these Terms as the Scheme Rules). From time to time the Operator may make changes to the Scheme Rules or vary the Scheme structure. A current copy of the Scheme Rules is available on request.

1.3 About the Plans and Permitted Investments

1.3.1.  Your Penfold Pension will be invested in your chosen Plan and/or one or more  of your other chosen Permitted Investments offered within the Scheme. Each Plan is invested in one or more different Permitted Investments that meet the risk and return profile of your Plan. You will agree to be automatically invested in the Default Plan when you first join the Penfold Pension, however you are able to choose one of our other Plans at any time.

1.3.2. Each Permitted Investment is issued and/or managed by an Investment Provider, not by the Trustee. For example, Blackrock Life Limited (Company number 02223202), authorised by the Financial Conduct Authority, with FCA Registration Number 202909,  is the Fund Provider of the Life Policy that the Default Plan invests in. You can find out more information about the Investment Providers on the App.

2. Definitions

2.1 In these Terms, the meaning given to defined words in the Scheme Rules shall have the same meaning in these terms and the following words and expressions have the meanings set out below:

“Annual Allowance” means the maximum amount that can be contributed annually to a pension plan and still benefit from tax relief, as specified by HMRC pursuant to the Finance Act;

“Annual Fee” means the total fees charged to you for the Penfold Pension as set out in the Charges Guide. It does not include any transaction costs which may occur when you buy or sell Units, as explained in the Charges Guide;

“Annuity” means an investment or insurance contract, which you may be able to buy with your Penfold Pension, entitling you to a pension income for a fixed term or for each year in retirement;

“App” means the Penfold Pension software which enables you to set up, view the details of, and manage, your Penfold Pension whether accessed via a mobile device or via our Website;

“Application” means the application you complete in relation to your Penfold Pension in the App;

“Assets” means all cash and Permitted Investments that you hold in your Penfold Pension and any part or combination of these;

“Authorised Third Party” means the person authorised by you as the person with whom we will communicate and from whom we can accept instructions that is not registered with the FCA and whom we have agreed can act as your Authorised Third Party;

“Basic amount” means the amount which can be contributed annually to a pension plan irrespective of earnings or employment status.

“Relevant Benefit Crystallisation Event (RBCE)” has the same meaning as in the Finance Act. A RBCE occurs when your Penfold Pension is used to provide a pension or other benefits;

“Business Day” means any day on which banks in the UK are generally open for business, other than a Saturday, a Sunday and public holidays;

“Capped Drawdown” means a way of receiving benefits from some or all of a pension fund but only applicable to individuals who had elected for capped drawdown benefits prior to 6th April 2015. The amount of income that can be withdrawn is capped and reviewed every three years and then annually on attaining age 75. This method of drawdown is not available in your Penfold Pension;

“Charges” means the fees, charges, interest and other expenses, as set out in the Charges Guide;

“Charges Guide” means the document or page on our App that we will make available to you setting out all charges to be paid by you, as varied from time to time;

“Client Reference” means the unique identifier we use to identify each customer, and which is advised to you;

“Contact Us Page” means the Contact us section at the end of these Terms and on the Website which sets out how you communicate with us;

“Conflicts of Interest Policy” means the policy relevant to your Penfold Pension (as amended from time to time) stating how conflicts of interest are managed;

“Contribution” means a cash payment to your Penfold Pension, excluding transfers in from other pension arrangements;

“Crystallised Benefit” means the part of a pension plan that has been used to provide retirement or death benefits in the form of a lump sum payment, via an annuity or income drawdown arrangement.

"Custodian” means the firm appointed by us and the Operator, or an Investment Provider, to deal with and hold the cash or Assets in your Penfold Pension, provide us with related services including cash payment services, asset price and information data and perform client money and asset reconciliation in accordance with the FCA Rules;

“Default Plan” means the Plan identified as such in our App or website.

“FCA” means the Financial Conduct Authority (12 Endeavour Square, London E20 1JN) or any other successor entity regulating the UK financial services industry;

“FCA Rules” means the current rules and guidance of the FCA;

“Finance Act” means the Finance Act 2004 and any regulations made under it, as amended, re-enacted or replaced from time to time;

“Flexi-access drawdown” means a way of receiving benefits from some or all of your pension fund. Normally 25% of the fund being taken can be paid as a tax free Pension Commencement Lump Sum with the remaining fund designated to a “flexi-access drawdown account” from which you can withdraw income, which will be subject to income tax at your marginal rate; When you withdraw income in this way, it will be made net of tax and can be paid at monthly or annual intervals.

“Permitted Investment” means an investment which is any one of the following investment types, which we have agreed may be held within your Penfold Pension, including the investments that makes up one, or other, of our Plans:

• an authorised unit trust scheme, open-ended investment company or recognised scheme (as these expressions are respectively defined in the FCA Rules or in these Terms); or
• another alternative investment fund or similar pooled investment vehicle (a “Collective Investment Scheme”); or
• a fund accessed via a unit linked insurance policy entered into by Penfold Trustees (a “Life Policy”).

“Investment Provider” means the manager or distributor of a Permitted Investment that is a Collective Investment Scheme, and/or the issuer of a Life Policy held within a Plan;

“HMRC” means the Commissioners of His Majesty’s Revenue & Customs;

“Key Features Document” means (as defined in the Regulatory Requirements) the document which sets out the high level aims and features of your Penfold Pension;

“Key Investor Information Document” means the key investment information document or equivalent document for a Fund, including the key information document for any Fund which is a packaged retail and insurance-based investment product or “PRIIP”;

“Lump sum allowance” means the amount of tax-free benefits that can be paid to you during your lifetime;

“Lump sum and death benefit allowance” means the amount of tax-free benefits that can be paid both in lifetime and on death;

“Money Purchase Annual Allowance” means the allowance which applies from the point you first access any pension benefits flexibly and is the maximum amount that can be contributed annually thereafter to money purchase pension schemes and still benefit from tax relief;

“Nominee” means the firm appointed or removed in accordance with the Scheme from time to time, in whose name Assets held through your Penfold Pension will be registered;

“Order” means a confirmed instruction to execute a purchase, sale or other transaction in a Plan for your Penfold Pension given at the time of opening a Penfold Pension or subsequently;

“Plan” means one of the investment options available in your Penfold Pension, and which are specified on our App or, where applicable, are specified in the Key Features Document for the Penfold Pension from time to time and which are made up of one or more Permitted Investments which can be chosen in isolation or as part of a lifestyling strategy like our Default Plan;

“Penfold Pension” means the Personal Pension Account or arrangement you have under the Scheme which provides you with certain benefits available from a registered pension scheme;

“Pension Commencement Lump Sum” means the amount of the pension fund which is taken as a tax free lump sum when you first take your pension benefits. It is often referred to as “tax free cash” and in the Penfold Pension can be taken in conjunction with flexi-access drawdown or annuity purchase;

“Pension Input Period” means the period from 6th April to 5th April each year used to test all your contributions to registered pension schemes against the annual allowances.

“Personal Representatives” means the individuals who have obtained probate, confirmation or letters of administration on your death; or the individuals who we are reasonably satisfied it is legitimate for us to take instructions from in relation to your estate, where no person has applied for probate, confirmation or letters of administration;

“Privacy Policy” means the policy statement setting out the implementation of the Regulatory Requirements under data protection and privacy applicable to your Penfold Pension (as amended from time to time);

“Qualifying Recognised Overseas Pension Scheme” has the same meaning as in the Finance Act – broadly, an overseas pension scheme that is recognised as eligible to make transfer to or receive transfers from registered pension schemes in the UK;

“Regulatory Requirements” means:

• any obligation that we or, where relevant, another person, has to comply with under any law or regulation (including any tax legislation, rules or guidance made by an applicable regulatory body including the FCA), or as the result of a decision by a court, ombudsman or similar body; or
• any obligation under any industry guidance or codes of practice which we or, where relevant, another person, follows; or
• any other legal or regulatory requirement which is effective in the United Kingdom and to which we must give effect in operating Penfold Pensions;

“Relevant UK earnings” means income derived from a trade, profession or vocation as a self-employed individual or a partner which is chargeable under Part 2 Income Tax (Trading and Other Income) Act 2005 and employment income such as salary, wages, bonus, overtime, commission providing it is chargeable to tax under section 7(2) Income Tax (Earnings and Pensions) Act 2003. Other sources of income may qualify and you should seek specialist advice if necessary;

“Scheme” means the registered pension scheme established by trust deed and rules dated 22 June 2020 known as the Penfold Pension and through which your Penfold Pension is provided and established;

“Scheme Bank Account” means the designated trust bank account maintained by the Custodian through which payments in and out of the Scheme will be made;

“Scheme Rules” means the trust deed and rules (as amended from time to time) which govern the Scheme;

“Security Details” means the personalised information (such as passwords, security questions and answers, personal identification numbers and account number) or the ‘Magic Link” secure authentication email or text message 2FA token that we send to you that apply to your Penfold Pension;

“Personal Pension” means an account or an arrangement under a registered pension scheme under the Finance Act which provides certain benefits available from such a registered pension scheme;

“Taxation of Pensions Act” means the Taxation of Pensions Act 2014 and any regulation made under it, as amended, re-enacted or replaced from time to time;

“Tax Year” means the tax year beginning on 6 April in any year;

“Terms” means these terms and conditions as amended from time to time;

“Uncrystallised Benefits” means the part of a pension fund that has not been used to provide retirement or death benefits in the form of a lump sum payment or via an annuity or income drawdown arrangement;

“Uncrystallised Funds Pension Lump Sum” means a way of receiving benefits from some or all of your pension fund. 25% of the lump sum is tax free with the remainder being subject to income tax at your marginal rate. When we make such payments to you from your Penfold Pension, they will be made net of tax and can be paid at monthly or annual intervals.

“Unit” means a unit or share in a Permitted Investment;

“Website” means www.getpenfold.com or any other internet address which we may tell you about.

3. Advice and Help

3.1 Non-advisory service

3.1.1 It is your choice to open a Penfold Pension. You must make your own decisions as to whether your Penfold Pension and the investment choices you make are suitable for your own individual circumstances.

3.1.2 Our service is execution only. This means that we transmit your instructions or make investments on the basis of those instructions, but we do not give financial advice or investment advice. You should not take anything we say as being a recommendation for a particular product or a way of investing. But, we provide you with tools that are designed to help you decide how much to save.

If you need professional guidance on any of the products mentioned in these Terms or on our App, please speak to a financial services professional specialising in pensions before you make any decisions about your own pension.

3.2 Help available to you

3.2.1 If you are 50 or over there is a free and impartial service called Pension Wise to help you understand what your choices are and how they work. This can be accessed online, over the telephone or face to face - see www.pensionwise.gov.uk or call 0800 138 3944.

3.2.2 It is strongly recommended that prior to accessing your pension benefits you seek advice from a suitably qualified financial adviser or obtain guidance from Pension Wise.

4. Joining the Scheme

4.1 FCA client categorisation

4.1.1 For the purposes of these Terms, we agree to treat you as a retail customer (as defined in the FCA Rules) so that you will have the benefit of the highest level of protection given by the FCA.

4.1.2 You have the right to request to be re-categorised as a professional client (as defined in the FCA Rules) and we may agree to do so if you meet the applicable criteria under Regulatory Requirements and you agree to the changes we need to make to the Terms and the services we provide for you. However, if we agree to it, such re-categorisation may impact the protections afforded to you.

4.2 Joining criteria

4.2.1 Membership of the Scheme is at our discretion.

4.2.2 You may not open a Penfold Pension jointly with anyone else.

4.2.3 You must be 18* years old or over to open a Penfold Pension. If you are 75 years old or over, you may open a Penfold Pension via a pension transfer only. Any contributions made to your Penfold pension after you reach 74 will not have the benefit of any tax relief and we may not permit it.

*If you are 16 years old, or over, you can be enrolled into your employer’s workplace pension but you will not be able to change your fund from the default fund offering until you reach the age of 18.

4.2.4 You must complete the Application set out on the App. If you do not give truthful information, any Penfold Pension opened on the basis of that information may be closed.

4.2.5 You may only open a Penfold Pension if, at the time your Penfold Pension is opened, you:

1. do not have dual tax residence and are resident for tax purposes solely in the United Kingdom;
2. have a permanent address in the United Kingdom; and
3. unless specifically permitted by the Operator, you are not a US person or opening a Penfold Pension on behalf of a US person. For these purposes, a US person is a resident of the United States of America. If you think you may be classed as a US person, please contact us for guidance.
   

4.2.6 If you stop being resident in the United Kingdom for tax purposes or stop having a permanent address in the United Kingdom, you must inform us. We may, at our discretion, continue to hold your Penfold Pension but you may not be able to make further contributions to your Penfold Pension. We may also have to report details of your Penfold Pension to HMRC or other applicable authorities.

4.2.7 Your membership will formally commence from the point at which you receive confirmation from us by email or via the App that your Application has been accepted.

4.2.8 Any applicable fees will be deducted once the first payment into your Penfold Pension clears, irrespective of whether this is a transfer from another scheme or a contribution either from yourself or a third party. Once all such fees have been deducted the balance is available for investment.

4.3 Identity and tax residence checks

4.3.1 Before you open a Penfold Pension and during the course of our relationship, to meet our legal obligations including under anti money laundering regulations, we may ask you for evidence of your identity and tax residence as well as that of the beneficial owner(s) of the Penfold Pension (if different) and anyone controlling or paying for Assets.

4.3.2 We may open your Penfold Pension but we may not accept further instructions from you and we will not be able to return Assets to you until we have been able to satisfy ourselves as to your identity, and the identity of anyone authorised by you to give instructions.

5. Operating your Penfold Pension

5.1 Investing your Penfold Pension

5.1.1 You can use our App to manage and view details of your Penfold Pension. However, it is your responsibility to ensure that you comply with all applicable laws and regulations relating to this. This includes the requirement from HMRC to account for and pay any relevant taxes related to your pension. If you need help understanding your obligations as far as tax is concerned, please contact HMRC.

5.1.2 When you first open your Penfold Pension you will be, with your agreement, placed in the Default Plan. You will be able to select another Plan after your initial sign-up. Subject to any minimum investment amounts,  all subsequent contributions and transfers into your Penfold Pension will be used to buy more Units in your selected Plan.

5.1.3 You are free to change your Plan at any time to one of the other Plans. When you do, the value in the original Plan will be transferred to the new Plan and all contributions after that date will be applied to the new Plan. This is known as a “switch”. A switch will involve the sale of Units in the Permitted Investments that make up your current Plan and the purchase of Units in the Permitted Investments that you have selected or that make up your newly chosen Plan. The sale will normally be placed by the end of the Working Day following receipt of your instructions and the purchase will normally be placed by the end of the Working Day following receipt of the sale proceeds. During the process of switching, your money may not be invested in either Plan.

5.1.4 When you or your employer set up a one-off or regular contribution into your Penfold Pension or you arrange a transfer into your Penfold Pension, this will create a one-off or recurring Order to purchase the corresponding number of Units of your chosen Plan (less any applicable fees), at the next available dealing date after the contribution is applied to your Penfold Pension, provided you have set up the contribution or transfer correctly via our App.

5.1.5 When contributions or transfers are received that have been notified to us through the App, an Order shall be placed as soon as is practical after the monies have cleared to purchase Units in the relevant Permitted Investments.

5.1.6 If an unexpected contribution or transfer is received into your Penfold Pension we will notify you of this as soon as is practical. If we do not receive any confirmation from you within 3 Business Days regarding the origin of the funds (if required) and/or your intentions, we have the right to ask the Custodian to return the cash to the transferee without placing an Order.

5.1.7 You should ensure you are aware of fees and charges applying to your chosen Plan or. Details of these fees and charges are set out in the Charges Guide and in the section of our App where you choose your Plan. It is your responsibility to determine whether any Plan or Permitted Investments (if applicable) are appropriate for you.

5.2 Third parties authorised to act on your behalf

5.2.1 If your Penfold Pension has been opened for you through a third party authorised to act on your behalf (an “Authorised Third Party”), we will treat only you as our customer.

5.2.2 If an attorney or other agent has been appointed by you or on your behalf, we will need proof that they have been properly appointed including, where applicable, evidence that the document appointing them has been appropriately registered, before we will accept them as an Authorised Third Party.

5.2.3 Once we have accepted that the appointment of your Authorised Third Party is valid, we will continue to act on the instructions of that person until we receive notice to our reasonable satisfaction that that person no longer has authority to give us instructions for your Penfold Pension.

5.2.4 You may let us know that we can deal with an Authorised Third Party on your behalf:

1. in your Application; or
2. at any time during the course of our relationship, by completing a third-party authority form.

5.2.5 You will, at all times, remain fully responsible for the operation of your Penfold Pension by any Authorised Third Party.

5.2.6 We will not be able to accept subscription, switch or withdrawal instructions or changes to your personal details from any third party in relation to your Penfold Pension unless that person has been formally appointed to operate your Penfold Pension (for example by power of attorney) and we have accepted them as an Authorised Third Party. We have the right to reject any payment or contributions to your Penfold Pension from any person who is not you, your employer or an Authorised Third Party and/or if we are unable to verify the identity of the payee and the source of the monies.

5.2.7 When we receive instructions from a third party seeking to operate your Penfold Pension, we may, but do not have to, ask for proof of their authority to act and may require them to verify their identity. We will not be responsible for the consequences of any delay in processing the instruction as a result of making any such request.

5.3 Incapacity and Power of Attorney

5.3.1 In the event of your legal incapacity, our relationship will be suspended automatically upon our receipt of written notice unless and until you have granted a power of attorney under which we can continue to act, or another person becomes entitled to act on your behalf. We reserve the right to require proof or further details of your legal incapacity.

5.3.2 When your rights can be exercised by someone else, we will continue to administer the Penfold Pension in accordance with their instructions as an Authorised Third Party until such time as that power is revoked, or until the time of your death.

6. Our App

6.1 Availability

6.1.1 We will make reasonable efforts to make sure that our App and Website are available, but we cannot promise that you will always be able to access them at all times. We may suspend or withdraw or restrict the availability of all or any part of our App where necessary for business and operational reasons, but we will always try to give you notice if this happens. You may also have difficulties accessing our App because of problems with telephone or broadband networks or because you are in an area that does not have adequate mobile telephone coverage. We will not be liable to you if our App is temporarily unavailable for any reason.

6.1.2 If you are unable to use our App, you may still manage your Penfold Pension in any one of the ways we provide for you, as explained in section 19.2.1 of these Terms and using the contact details on the Contact Us Page.

6.1.3 We have the right to suspend your access to the App, at any time, if in our reasonable opinion you have failed to comply with any material provisions of these Terms.

6.2 Intellectual property

6.2.1 We own or licence all intellectual property rights in our App, and in all of the material available on them. This material is protected by copyright laws and treaties around the world and we reserve all rights in respect of this.

6.2.2 You are not allowed to use any of our Intellectual Property except in the course of your normal use of the App under these Terms.

6.3 Security

6.3.1 To access your Penfold Pension, you must use the security details that you set up, including your password and SMS two-factor authentication (2FA) token. It’s important to keep these credentials secure and not share them with anyone.

6.3.2 You must take all reasonable precautions to keep safe and prevent fraudulent use of your Security Details. You must take reasonable care not to disclose, or to allow the disclosure of, your Security Details. Please note we will never ask for your password. You should not respond to any unsolicited emails which look as if they originate from us which ask you to enter your password or personal information. We will never issue emails of this type unless specifically requested by you to do so.

6.3.3 We may rely on any instructions that we receive whilst your Penfold Pension has been activated using your Security Details.

6.3.4 You will be responsible for (and we shall be entitled to rely upon) any relevant instruction which is authenticated using your Security Details, unless you establish that the relevant instruction is not an authorised instruction and either:

1. we acted upon the relevant instruction after you had told us, or we otherwise had actual notice, that your Security Details or any other access details in relation to your Penfold Pension had been disclosed to or otherwise obtained by an unauthorised third party or if the safety of these Security Details was in jeopardy; or
2. the unauthorised use of your Security Details or any other access details in relation to your Penfold Pension (and our reliance on the relevant instruction) did not result from your failure to take reasonable care to protect such details or otherwise to comply with your obligations under these Terms.

6.3.5 You should change your Security Details and contact us immediately if you know or suspect that any of your Security Details or any other access details in relation to your Penfold Pension have been disclosed to, or obtained by, an unauthorised third party or if the safety of these Security Details may be in jeopardy.

6.3.6 We will act on any instructions given in accordance with our stated procedures that appear, in our reasonable opinion, to be valid, and have no duty to make any further enquiries in relation to such instructions.

6.4 Risks of online communication

6.4.1 We will take all reasonable measures to make sure that the security of our systems is not compromised. However, there are inherent risks in using an online system. Communications between us through the internet or by phone are not guaranteed to be secure or reliable. We cannot guarantee that they will be free from:

1. technical failure or corruption;
2. error or delay; or
3. misuse, fraudulent use or access by unauthorised persons.

6.4.2 We will not be liable for losses caused as a result of anything that is outside our reasonable control.

6.4.3 We recommend you and any person acting on your behalf use anti-virus software on your computer or any other electronic device that you use to access the App.

7. Contributions

7.1 Making contributions to your Penfold Pension

7.1.1 You or your employer can make contributions by transfer to your Penfold Pension. You can make contributions on a single or regular basis. The Penfold Pension Key Features Document sets out the current provisions for how you may make contributions into your Penfold Pension.

7.1.2 The maximum contribution amount that we accept by Direct Debit payment during the course of a financial year is £60,000. This is either through a one-off payment or a series of contributions adding up to £60,000. If you wish to contribute more than £60,000 during a financial year, and are able to do so (NB: for the current financial year the annual personal pension allowance is £60,000) then you can ‘top-up’ by bank transfer or our Open Banking system.

7.1.3 We will not accept contributions into your Penfold Pension if you are no longer eligible to make contributions to the Scheme.

7.1.4 We may decline to accept any contribution (from you or your employer) into your Penfold Pension if it does not comply with the requirements of the Scheme Rules or the Finance Act or is not a Permitted Investment.

7.1.5 Any contribution to your Penfold Pension will be credited to your Assets and invested in your chosen plan within the time periods required by the Regulatory Requirements.

7.1.6 We may, without your authority, refund a contribution (in whole or part) made in error to your Penfold Pension, subject to restrictions imposed by Regulatory Requirements.

7.1.7 If you make a payment by Direct Debit and seek to clawback this payment, we will disinvest assets from your Penfold pension to cover the amount being reimbursed as well as any tax-relief we may have obtained on your behalf from HMRC. The cash will then be debited from your Penfold pension. If there are insufficient assets in your Penfold pension to cover the reimbursement amount, you will be held personally liable for the outstanding balance and we will contact you to settle the outstanding amounts.

7.1.8 Please note that if you have Enhanced or Fixed Protection (these protect the amount of tax free cash that can be paid to you) then you will lose these tax protections if contributions are made to your Penfold Pension. There is more information in the Key Features Document. Please seek independent financial advice if you think this is relevant to you.

7.2 Tax treatment of contributions

7.2.1 Personal contributions made by you or on your behalf (but not including by your employer) will normally be treated as having been paid net of basic rate tax which we will claim on your behalf from HMRC to the extent that you are due tax relief on the contribution. HMRC may take several months to process the tax reclaim and the money reclaimed is not available for investment until we receive it from HMRC.

You are responsible for informing us by 5 April in the year of assessment in which the event occurred or within 30 days after the event occurred (whichever is the latest), if you are not entitled to tax relief on all or part of your contribution.

As a guide, circumstances where you may not be entitled to tax relief on your contribution are where, at the end of the tax year, your contributions exceed the higher of the basic amount or 100% of your relevant UK earnings.

If you exceed the Annual Allowance or the lower Money Purchase Annual Allowance, which applies once you start drawing benefits flexibly, you may be subject to an annual allowance tax charge. Please check tax rules for applicable tax year for more information.

7.2.2 You are responsible for claiming any tax relief above the basic rate of income tax to which you are entitled, directly from HMRC.

7.2.3 Contributions paid by your employer are treated as being paid gross meaning there will be no further tax relief for us to claim. We will require your employer to complete a contribution schedule which indicates the payments they are committed to making on your behalf. Where payments are not forthcoming we are obliged to notify The Pensions Regulator. Contributions paid by other third parties are treated as having been paid by you for tax purposes.

7.2.4 When completing the application declaration, amongst other things, you are confirming that your contribution is eligible for tax relief. We do not accept personal contributions that are not eligible for tax relief.

7.2.5 If you make contributions to your Penfold Pension which, when combined with contributions to other UK pension schemes, exceed the amount on which you are entitled to tax relief, we may agree to refund the excess contributions to you provided there is sufficient cash in your Penfold Pension to make the refund to you and repay any amounts due to HMRC. Any investment loss or growth in respect of a refunded contribution will be deemed to be outside the Scheme.

7.2.6 If you are liable to an annual allowance tax charge and you qualify and give notice under ‘Scheme Pays’ legislative provisions for your Penfold Pension to pay some or all of the charge to HMRC, you agree that you will only give such notice where there is sufficient cash available in your Penfold Pension to pay the charge. If you do give notice and there is insufficient cash available in your Penfold Pension then the Operator may direct the Trustee to dispose of Units within your Penfold Pension sufficient to pay the charge. You agree and understand that if there is insufficient cash or other assets within your Penfold Pension that you are personally liable to pay the charge and you must pay this to us immediately upon demand.

7.2.7 Your Pension Input Period, as defined by the Finance Act, will start on the first day you make a contribution and will end on the following 5th April. Subsequent periods will then run from 6th April to 5th April in future years.

8. Transfers in from Other Schemes

8.1 Transfer criteria

8.1.1 The Operator may, at its discretion, accept transfers of benefits from other registered pension schemes or Qualifying Recognised Overseas Pension Schemes, subject to the Scheme Rules, and the Finance Act.

8.1.2 For all transfers it is your responsibility to ensure a transfer of pension benefits is in your best interests. Consequently, you should consider taking advice from a suitably qualified financial adviser. Our acceptance of a transfer is in no way an endorsement of the suitability for you of the transfer.

8.1.3 We may decline to accept any transfer into your Penfold Pension if it does not comply with the requirements of the Scheme Rules or the Finance Act or is not cash or a Permitted Investment.

8.1.4 We will not accept transfers of defined benefits or safeguarded rights of any size.

8.1.5 We will only accept a transfer from another pension arrangement that has been used for Flexi-access drawdown if it does not prejudice the Scheme’s status as a registered pension scheme.

8.1.6 Transfer of capped drawdown benefits will only be accepted on the basis that they will immediately be converted to flexi-access drawdown benefits. Acceptance of these Terms will be taken to mean that you have given your nomination for any capped drawdown benefits being transferred to be designated to flexi-access drawdown and understand that if you are not already subject to the Money Purchase Annual Allowance, you will become subject to it when you first receive income via flexi-access drawdown.

8.1.7 Any transfer into your Penfold Pension will be credited to your Assets and invested in your chosen Plan within the time periods required by the Regulatory Requirements.

8.1.8 We may, without your authority, refund a transfer (in whole or part) made in error to your Penfold Pension, subject to restrictions imposed by Regulatory Requirements.

8.1.9 Unless otherwise agreed with the Operator in its complete discretion, we will only accept transfers into your Penfold Pension consisting of cash.

8.1.10 Where you request a cash transfer from an existing pension scheme you take responsibility for arranging disinvestment of any assets held within that scheme. We will not give disinvestment instructions to the existing pension scheme provider and accept no liability for delays in concluding the transfer, or a drop in the value of your pension, as a result of disinvestment decisions taken by the existing pension scheme.

9. Cancellation Rights and Lack of Cleared Cash

9.1 Cancellation rights

9.1.1 When you join the Scheme, receive transfers into your Penfold Pension or commence drawing benefits for the first time, you are entitled to a 30 day cancellation period. This gives you the right to change your mind.

9.1.2 Where investments are made during this 30 day cancellation period, and we receive a valid notice of cancellation signed by you, you will be responsible for subsequently instructing disinvestment. We will not be liable if the amount realised is less than the cost of acquiring the permitted investments and we will be entitled to charge your Penfold Pension an amount to cover our costs. We will notify you of the costs involved. Where costs have been incurred by third parties, the amount incurred by them will be deducted from any amount returned.

9.1.3 Where you decide to exercise your right to cancel in respect of a transfer, we will attempt to pay the cash back to the scheme or arrangement from which the cash has been received. The previous scheme or arrangement may refuse to take back the cash, or may only accept it on revised terms, which are not acceptable to you. In which case you will be responsible for nominating a new UK registered pension scheme to which the cash can be transferred. Any cancellation may also lead to a drop in the value of your pension fund being transferred away from us.

9.1.4 Where you decide to exercise your right to cancel in respect of commencing to draw benefits, it is conditional upon you repaying any payments you have received back into your Penfold Pension.

9.1.5 Where you decide to exercise your right to cancel, we are entitled to retain any fee for setting up your Penfold Pension and income drawdown arrangement, if applicable, but we do not normally do so.

9.2 Cleared Cash

9.2.1 It is only possible to invest cleared cash. There are, however, certain situations where cash is received in respect of a contribution or transfer that subsequently fails to clear once investments have been made. In these circumstances, we may dispose of the assets without consulting you.

9.2.2 We will not be liable if the amount realised is less than the cost of acquiring the assets and we will be entitled to charge your Penfold Pension an amount to cover our costs. We will notify you of the costs involved.

10. Scheme Bank Account and Custody

10.1 Cash

10.1.1 Cash received from or in respect of you, by way of contribution, transfer in or investment income, will be held through your Penfold Pension in accordance with the Regulatory Requirements. Cash payments to your Penfold Pension will be held in the Scheme Bank Account maintained by the Custodian with an approved bank on behalf of the Scheme. The Scheme Bank Account is segregated from the Trustee’s own monies. The Scheme Bank Account is a pooled account so that in the event of a bank’s failure your claim will be for a share of the cash held in the Scheme Bank Account. The Operator is responsible for the selection and monitoring of the chosen bank(s) but is not responsible for any acts, errors, omissions or default on the part of such bank(s).

10.1.2 Interest is paid monthly on cash held on your behalf through your Penfold Pension for customers invested in all of our Plans except for the Sharia Plan. For customers of our Sharia Plan interest payments received on your account balances will be retained by us, and distributed to a charity of our choice.

10.1.3 For interest payments made on historic cash balances (ie. to the 12 months prior to 24 August 2024) we will take a 0.5% administration fee to facilitate the payment. No administration fee will be taken on interest payments after this date.

10.1.4 We review our position on interest from time to time and we will let you know, in advance, of any changes that we make, which may include stopping interest payments to customers or charging a small administration fee for such payments.

10.1.5 Borrowing is not permitted under your Penfold Pension. This includes overdrafts and accounts going overdrawn.

10.2 Assets

10.2.1 Life Policy Assets are held, on behalf of customers in the name of Penfold Trustees by Bank of New York Mellon. These form the underlying investments in the Penfold Plan, which the majority of our customers are invested in.

10.2.2 Assets, that are not Life Policy Assets,  are held as prescribed by the Scheme Rules and Regulatory Requirements. The Operator has appointed an independent Custodian to deal and hold the Assets, in your Penfold Pension, provide cash payment services, asset price and information data and perform client money and asset reconciliation in accordance with Regulatory Requirements. The details are set out in Schedule 1 – Custody Terms. Ownership of the Assets in your Penfold Pension is held by the Custodian in the name of the Trustee, or in their nominee or a nominee controlled by them.

10.2.3 Records of all of your investments and assets in your Penfold Pension will be retained.

11. Investments Held in your Penfold Pension

11.1  Investments

11.1.1 You may only hold cash or invest your Penfold Pension in one of our Plans made available to you. The current Plans are set out on our App. You cannot choose which underlying funds to invest in within the Plan, or to change those underlying funds. Penfold Pension is not a Self Invested Personal Pension.

11.1.2 The underlying investments of each of our Plans will be pooled with the investments of other customers invested in that Plan. For investments in the Penfold Plan you will not have a direct beneficial right to any of the underlying investments. Instead the Trustees will hold the rights under the relevant long term insurance policy, and you will be entitled to get the sale proceeds representing the specified number of units in the underlying policy representing your Penfold Plan investment.

11.1.3 For all of our Plans the permitted investments are pooled so that your holding will not be individually identifiable at the level of the Investment Provider.

11.1.4 We may change the Plans that are available in the Penfold Pension. We may also choose to change the Permitted Investments that make up Your Plan.  You can use the App to see the investments that make up each Plan.

11.1.5 If we change the Plans or Permitted Investments we will give you at least 30 days’ written notice of the change. We will explain the changes and what this will mean for you and your pension. We may move you to the new Plan, give you the opportunity to remain in your current Plan (if still available), switch to another Plan or transfer all or part of your Assets out of your Penfold Pension at no cost to you.

11.1.6 There may be occasions when we are not able to give you at least 30 days, or  any, advance notice, for example when the change is:

1. required immediately to comply with Regulatory Requirements;
2. as a consequence of circumstances outside our control;
3. required immediately in order to protect your interests; and
4. for customers joining during a 30 day notice period. These customers will be moved to the new Plan at the end of the notice period.

If any such change affects your Penfold Pension, we will notify you via our App or email of the change and the options available to you.

11.1.7 The Plan you are invested in may have its own charges which include initial charges, ongoing charges and dilution levies. We are not responsible for telling you about these charges. However, they may be available in the regulatory documentation relating to the relevant Plan.

11.1.8 You cannot use the Assets held in your Penfold Pension as security for a loan.

11.1.9 Where appropriate and as required, you authorise the Operator to accept the terms and conditions of Investment Providers on your behalf.

11.2 Operator’s discretion

11.2.1 We will only act in accordance with directions from you, other than where the following sub-clauses apply, in which case the Operator has discretion to direct the Trustee to dispose of investments without consultation with you or without obtaining your prior agreement:

1. where in our opinion, continued retention of an investment would or may be unlawful;
2. where, in our opinion, the continued retention of the investment would or may impose tax or other costs which your Penfold Pension may not be able to meet;
3. the investment needs to be disposed of to meet any tax liability or other liabilities or costs (including our own incurred in the administration of your Penfold Pension);
4. the investment is no longer a Permitted Investment;
5. to comply with a court order; or
6. to pay out death benefits.

11.3 Income and dividends

11.3.1 You agree that any income and dividends received from the Assets in your Penfold Pension will be retained in your Penfold Pension and invested in your chosen Plan and you will be notified as such online via our App.

11.3.2 If you give us a sale instruction for a Unit with the benefit of a dividend which is then paid but to which you are not entitled (i.e. you sell ‘Cum dividend’), that dividend will be paid into your Penfold Pension unless it is used by us to offset amounts you owe us against any amounts we hold for you or which are due from us to you.

11.3.3 We will allocate any income to your Penfold Pension within 10 Business Days after we receive it.

11.3.4 Where we receive income from the Units held within a Plan in a currency other than pounds Sterling, we will convert it into pounds Sterling and will allocate the converted money to your Penfold Pension in pounds Sterling on the day we receive it.

11.3.5 If your Penfold Pension is transferred elsewhere we will send any income that we subsequently receive that relates to your Penfold Pension to your new registered pension scheme, unless it cannot accept them in which case it will be transferred or paid to any other scheme or arrangement or charity as may be permitted under the Scheme Rules and Regulatory Requirements.

12. Investment Instructions and Dealing

12.1 Orders

12.1.1 You may use our App to give us instructions on how you wish to invest your Penfold Pension. Orders to deal in Units are normally routed to the appropriate Investment Provider for execution at the next available dealing date for that Permitted Investment. You therefore consent to Orders being executed outside a trading venue. Orders may be aggregated with other customer orders and bulked prior to executing with the Investment Provider.

12.1.2 The purchase price for any Order is determined at the next valuation point for the relevant Permitted Investment (this is usually calculated by reference to a specific time on the next Working Day). There may be a delay for your Account to be updated.

12.1.3 You must make sure that instructions that you or an Authorised Third Party give us are complete, accurate, clear and unambiguous. You are responsible for the settlement of all Orders facilitated by us in accordance with instructions. We may delay or refuse to execute your instructions if your instructions are unclear or ambiguous, or if we have not received any information or documents we may have asked for, or where appropriate, the documents are not fully and correctly completed by you. We will try to contact you to obtain clarification but we will not be liable for any losses that you or any third party may incur as a result.

12.1.4 We may delay, or refuse to arrange to execute your Order if:

1. we have reasonable cause to believe that the proposed transaction may constitute market abuse or market timing, or we otherwise have reasonable cause to be concerned that the placing of the Order may breach Regulatory Requirements;
2. we have reasonable cause to suspect that the Order was not placed by you or someone that we have agreed may operate your Penfold Pension on your behalf/ that the Order has been placed fraudulently;
3. we believe that you do not have a legal right or authority to deal in the Units;
4. your Order does not meet the minimum investment criteria for the Units that you want to buy;
5. the current criteria set for us to process an Order on our App have not been met; or
6. extreme market conditions exist, and we have stopped taking trades in either one Permitted Investment or investments in general.

12.1.5 We will tell you if we have had to delay or are unable to execute your Order (unless we are prevented from doing so because of Regulatory Requirements).

12.1.6 We will tell you if we are unable to process your Order through the App. You can place the Order using the contact details set out in the Contact Us Page or in section 19.2.1 of these Terms.

12.1.7 You agree that if at any stage it is determined that your Penfold Pension has been allocated Units in error, you will notify us as soon as you become aware of this fact and otherwise upon you notifying us or our notifying you, you shall take all reasonable steps as requested by us to assist us with correcting the error in Unit allocation (including your executing any necessary agreement, notices, declarations or deeds) as soon as possible.

12.2 Order confirmation

12.2.1 Contract notes will be issued no later than the first Business Day after the transaction, or if applicable, after we receive price confirmation from the Investment Provider and our system being updated.

12.2.2 Contract notes will be available to view online on your account page on our App.

12.2.3 The contract note will detail the amount debited or credited to your Penfold Pension. You must check that the information on the contract note is correct and tell us as soon as possible if it is not.

12.3 Settlement of Orders

12.3.1 If there are delays beyond our control in the settlement of a transaction, we can delay settlement of any subsequent sale or purchase until the first transaction has settled and been delivered.

12.3.2 Your contract note will confirm the relevant settlement date for the transaction.

12.3.3 Your Penfold Pension will be debited immediately on the trade date for purchases and so you must have cleared cash available in your Penfold Pension at the time you instruct us to deal. In all other cases you must ensure that cleared cash is available in your Penfold Pension on or before settlement day of a purchase order unless agreed otherwise with you, if not no purchase will be made.

12.4 Cancelling your Orders

12.4.1 Once we have received an Order from you and acted on it, you will not be able to change that instruction.

12.4.2 If you tell us that you wish to cancel an Order, we will use reasonable efforts to halt the execution of the transaction. However, we will not be liable for the financial consequences to you, if we are unable to stop the execution of the Order (for example if your Order has already been transmitted to a third party for execution).

12.4.3 We may cancel any duplicate or repeated instruction you give to us where the circumstances indicate that your intended transaction has been split into smaller Orders to take advantage of any market limitations or restrictions.

12.5 Conflicts of interest

12.5.1 Because of the complex nature of our business, circumstances may exist which give rise to a conflict between our respective interests or between you and another customer.

12.5.2 To make sure that we take these into account when we execute your Order and otherwise deal with you under these Terms, we have implemented a Conflicts of Interest Policy. This explains how conflicts of interest can arise and the arrangements we have for managing them. Where a conflict arises, we will ensure that you are not treated any less fairly than if such a conflict had not arisen.

12.5.3 We will comply with our Conflicts of Interest Policy in carrying out our duties to you under these Terms. Our Conflicts of Interest Policy is available on demand.

13. Transferring Out

13.1 Transferring out criteria

13.1.1 The Operator on behalf of the Trustee may transfer the value of your pension fund to another UK registered pension scheme.  If you meet the statutory criteria then the Operator must give effect to the transfer you have requested, and in other circumstances the Operator and Trustee have a discretion to allow your transfer request.

13.1.2 The transfer will be done as soon as practicable following your request and we will not charge you any penalty. The value of your transferred pension pot may be lower than at the time when you instructed the transfer. This is due to market movements over which we do not have any control.

You will still be liable for any accrued administration fees and tax charges, which will be levied prior to transfer together with any costs incurred in disposing of your Assets. The transfer will be made subject to current legislation and HMRC rules.

13.1.3 We will only transfer benefits in accordance with these Terms if we are satisfied as to each of the following:

1. we have proper authority to make the transfer;
2. we are in receipt of all the necessary documentation;
3. we have received all the fees due to us;
4. all liabilities and costs have been satisfied by your Penfold Pension; and
5. making the transfer is not likely to prejudice any protected benefits, or be unlawful or be made to an unrecognised or unregistered scheme or be made to a scheme suspected of being involved in a scam or pensions liberation.

13.1.4 We do not accept liability in respect of delays in completing the transfer due to carrying out all reasonable checks in accordance with the provisions of this Transferring Out section, nor where we refuse to transfer due to our findings.

13.2 Transferring out process

13.2.1 In some circumstances it may be necessary for us to delay the transfer of benefits, particularly where the Custodian or the Investment Provider(s) are unable to realise or transfer some of the investment. Such circumstances could lead to you having to defer transferring or taking benefits. We will advise you where this is likely to be the case.

13.2.2 Where you instruct us to transfer your Penfold Pension in-specie (as an asset transfer rather than cash) we will at our discretion instruct the Custodian to liaise with your new pension provider and they will proceed on this basis subject to receiving confirmation that the new custodian(s) are prepared to hold the investments you have requested to be transferred in-specie. The Operator does not accept any liability in respect of delays in the completion of your transfer arising as a result of delays in the re-registration process.

13.2.3 Where you instruct us to transfer your Penfold Pension in the form of cash, the Custodian will provide disinvestment instructions to the Investment Provider(s). The Operator does not accept any liability in respect of delays in the completion of your transfer arising as a result of delays in the disinvestment process.

13.3 Removing an Investment

13.3.1 You may only remove an Asset from your Penfold Pension for a purpose that is permitted under the Scheme Rules, and if the Operator agrees and you are prepared to meet the costs of any such payment specifically if the payment would be an unauthorised payment under the Regulatory Requirements.

14. Payment of Benefits

14.1 Taking benefits

14.1.1 Penfold Pension benefits are the benefits you are entitled to take through the Penfold Pension. These should not be confused with transfers out of the Penfold Pension to another registered pension scheme (where you move your monies to another arrangement). The types of benefits available from the Penfold Pension are subject to the Scheme Rules from time to time, but in summary are:

1. A Pension Commencement Lump Sum;
2. A Pension Commencement Excess Lump Sum;
3. The purchase of an Annuity with an insurer;
4. Flexi-access drawdown;
5. An Uncrystallised Funds Lump Sum.
6. For more information about the benefit options please read the Penfold Pension Key Features Document.

14.1.2 You should determine whether or not the benefit options we offer are suitable for you before you agree to sign up to them. Any pension options are available through our App and we provide specific details on how these options work.

14.1.3 We will send you an illustration every year of what you may receive when you take your pension benefits. If you have received income from your Penfold Pension, in a tax year, we will send to your annual illustration which shows you the likely effect of future withdrawals.

14.1.4 Benefits can be paid on you attaining the normal minimum pension age of 55, but may be paid earlier if ill health conditions are met. Benefit payments will be made to a UK bank account held in your name. Alternative banking arrangements will only be allowed at our discretion.

14.1.5 All payments are conditional on there being sufficient cash available in your Penfold Pension. Disinvestment instructions will be given by the Custodian to the Investment Provider(s) where necessary to meet your benefit requirements. Any instruction to pay an income must be received by us sufficiently in advance in order to allow us to process the payment.

14.1.6 You, or we at our discretion, may at any time use your Penfold Pension to purchase benefits by way of an appropriate policy or contract with an insurance company.

14.1.7 Where you first take benefits flexibly any contributions you make to a money purchase pension scheme thereafter will be subject to the Money Purchase Annual Allowance.

14.2 We will not pay benefits in accordance with these Terms unless we are satisfied as to each of the following:

14.2.1 we have proper authority to pay the benefits;

14.2.2 we are in receipt of all the necessary documentation;

14.2.3 we have received all the fees due to us;

14.2.4 all liabilities and costs have been satisfied by your Penfold Pension; and

14.2.5 all outstanding transfers have been received by your Penfold Pension.

14.2.6 Flexi-access drawdown You may instruct us to designate some or all of your Penfold Pension to Flexi-access drawdown, subject to the Scheme Rules. When you give us your instructions you must tell us when you wish income withdrawal to start and the amount of income to be paid to you. You may give us instructions about which Assets you wish to use or sell to fund that income withdrawal. If you do not tell us which Assets you wish us to use, we will use cash first and then sell your Units proportionally.

14.2.7 When Flexi-access drawdown is requested, we will:

1. value the Assets you have told us you wish to use for Flexi-access drawdown as per HMRC regulations;
2. deduct applicable Charges;
3. pay the income withdrawal to you (if applicable) in accordance with your instructions but subject to the provisions of the Scheme Rules and the provisions of the Finance Act and the Taxation of Pensions Act; and
4. tell you of the maximum amount (if relevant) which can be used for Flexi-access drawdown.

14.2.8 We will value the Assets you have set aside for Flexi-access drawdown as and when required by the Scheme Rules, the Finance Act and the Taxation of Pensions Act and advise you of the maximum amount of income which can be taken.

14.3 Death benefits

14.3.1 When you open your Penfold Pension and at any time whilst your Penfold Pension is open, you are encouraged to give your wishes about what you would like us to do with your Penfold Pension on your death and who you would like to benefit. You can do this in the ‘Expression of Wish’ form. What will actually happen with your Penfold Pension will be at the Trustee and Operator’s discretion, but this decision is made after careful consideration of your wishes, and circumstances made known after your death, and in the context of Regulatory Requirements and the Scheme Rules.

If you have not given us an Expression of Wish we will make decisions on the payment of death benefits from your Penfold Pension which we consider to be appropriate to the circumstances that are made known to us and that are permitted by the Scheme Rules, the Finance Act and the Taxation of Pensions Act.

14.3.2 If you bought an annuity before your death, the terms of that annuity will determine what will happen on your death and the annuity provider will give effect to the provisions of the annuity for your death

14.3.3 On your death your Penfold Pension (not used for an annuity) may be used to provide your beneficiaries, selected as described above, with their own lump sum or drawdown or used to buy them an annuity, in accordance with the Scheme Rules. You may need to have nominated a beneficiary to receive the benefit in a particular way. If death occurs before your 75th birthday then the death benefit payments will generally not be subject to tax unless the benefits are in excess of the lump sum or lump sum and death benefit allowances or the death benefits have not been settled within the two years of notification of your death. If death occurs on or after your 75th birthday then the death benefits are generally subject to tax at the recipient’s marginal rate of income tax. We will value Assets in your Penfold Pension following your death using a “quarter up” valuation, as set out in the Regulatory Requirements, being the lowest price available plus a quarter of the difference between the lowest price and the highest price available for any Asset as at the end of the day.

14.3.4 We will arrange to implement any instructions you have given to provide pension benefits to any person nominated by you in respect of unvested assets in your Penfold Pension on your death, subject to the Scheme Rules and the discretion of the Operator.

14.3.5 Subject to the Scheme Rules and the payment of our Charges, we may accept instructions from your Personal Representatives, or any person entitled to benefit from your Penfold Pension after your death, to defer buying an annuity or paying other death benefits or starting income withdrawal under Flexi-access drawdown. Disinvestment will take place as soon as we receive a certified copy of your death certificate.

14.4 Payments or transfers on death

14.4.1 Your Personal Representatives should tell us about your death as soon as possible and let us have any documents that we reasonably request to evidence their authority to deal with your affairs before we will accept instructions from them in relation to your Penfold Pension.

14.3.2 These Terms including any Charges payable will continue to bind your personal representatives until your Penfold Pension is closed.

14.5 Unclaimed Assets

14.5.1 In certain limited circumstances unclaimed Assets may be realised and transferred to charity.

14.5.2 We will maintain records of dealings with unclaimed Assets which are paid away.

15. Valuations and Reporting

15.1 The App

15.1.1 You can use the App to access details of your Penfold Pension and see certain information about Penfold, our services and your Penfold Pension.

15.1.2 The details available on the App includes the value of your Penfold Pension, the Plan you have chosen, the details of any changes in the value of your Penfold Pension over time, the total value of your pension contributions, the details of the payment plan you have chosen and how much you have decided to contribute, an estimate of the potential future value of your Penfold Pension and information about the different ways in which your pension is currently invested.

15.2 Pensions statements and illustrations

15.2.1 Once a year we are required to send you a `Statutory Money Purchase Illustration’ based on the current value of your Penfold Pension. It will provide you with an estimate of what your Penfold Pension may be worth in today’s terms by the time you reach your selected retirement age.

15.2.2 If your contributions exceed the Annual Allowance or Money Purchase Annual Allowance, if applicable, we are required to send you a Pension Savings Statement. You are required to use the information in the statement to report the excess contribution to HMRC who will then levy the appropriate tax charge on you.

15.2.3 If the first time you flexibly access any benefits from any pension arrangements you may have is through your Penfold Pension, you must inform us of this and we will provide you with a Flexible Access Statement giving you information as to what you should do next. If you flexibly access benefits for the first time via another pension arrangement you must tell us within 91 days and provide the date it occurred.

15.2.4 When you draw any benefits from Penfold we will provide you with a Relevant Benefit Crystallisation Event statement setting out the remaining value of your lump sum and lump sum and death benefit allowance.

15.2.5 We will provide all of the above documents to you via the App unless otherwise advised.

15.2.6 Please review any such documents on receipt and advise us as soon as possible if you notice any discrepancies with your own records.

15.3 Reporting and valuation of transactions

15.3.1 We will procure for you a contract note confirming details of your trades which will be available to you electronically via our App. We will physically send these to you only if required to do so in accordance with Regulatory Requirements.

15.3.2 We will procure for you a transaction and valuation report in accordance with Regulatory Requirements and will notify you by email or via our App when each report is available in your Penfold Pension online account.

15.3.3 We will arrange to value your Penfold Pension Assets:

1. for regular reporting purposes;
2. if you ask us to do so (an additional fee will be charged for this as set out in our Charges Guide);
3. when we are told about your death with effect from your date of death; or
4. to facilitate the closure of your Penfold Pension; or
5. in line with HMRC guidance where a Relevant Benefit Crystallisation Event occurs.

15.3.4 The value will be set by the latest price published by the relevant Investment Provider(s). The value that you will see online is illustrative only and does not reflect what you may get if you decide to sell all of your Assets.

15.3.5 The value of the Assets that you hold in your Penfold Pension and which you can see online will be the price at close of business on the previous Business Day.

15.3.6 If you ask us, we may procure for you paper copy statements, reports or ad hoc valuations. We will charge for this as set out in our Charges Guide.

15.3.7 You must monitor the reports that we send or make available to you about your Penfold Pension and tell us immediately if you notice:

1. any error or omission in any contract note or other report that we send or make available in relation to your Penfold Pension;
2. you have not received confirmation of a trade that you are expecting; and/or
3. there have been any unexpected transactions.

15.3.8 We may not be able to take any action to correct any problems if we are not told of a concern within 6 months of the report being issued to you.

15.4 Information that we provide to you

15.4.1 You may download or print individual sections of the App and information from websites linked to it strictly for use in relation to your Penfold Pension, provided that you keep intact all copyright and proprietary notices but you must not reproduce or distribute any material without our consent. Please read our Website’s terms of use available at https://getpenfold.com/legal.

15.4.2 Any news, prices and other information that we give you is provided solely to help you make your own investment decisions and is not a personal recommendation or financial advice. It is also not an offer by us to buy, sell or otherwise deal in any particular investment.

15.4.3 When we provide market information, we use sources we believe to be reliable. If we use an independent information provider to provide that market information, we will use all reasonable care to make sure that the provider is suitable, but, because we have no control over the information sources, we cannot guarantee that the market information is accurate, complete or timely, or that it will always be available to you.

15.4.4 Market information is not necessarily available to you through all of our communication channels. You should satisfy yourself that market information is reliable before you make any decisions or take any actions based on it. We are not responsible for any decision or action you take or any loss you or anybody else may suffer as a result of your decision or action.

15.4.5 We are not responsible for the contents of any information that we send to you that has been prepared by a third party (for example an Investment Provider).

16. Liability and our Rights against You

16.1 Our liability to you

16.1.1 Under these Terms we will only be liable to you, the holder of the Penfold Pension. We will not be liable under these Terms to any Authorised Third Party or any other third party.

16.1.2 We are not responsible for any losses you suffer in relation to these Terms or your Penfold Pension, unless these losses arise because:

1. we are negligent or fraudulent;
2. we knowingly or recklessly fail to comply with the Regulatory Requirements or these Terms, or otherwise materially breach the FCA Rules or these Terms;
3. we have failed to transmit your instructions so that any of your Assets held by our Nominee are not adequately protected; or
4. we have failed to exercise due skill, care and diligence in selecting an Investment Provider, selecting or retaining a bank, settlement agent or custodian.

16.1.3 We are not responsible for the default, insolvency or other failure by a third party bank or settlement agent, clearing agent, depository, clearing or settlement system or any participant in one of them, or any Investment Provider or Investment Provider’s agent with whom any Order that you give us is placed; but where we have not correctly executed any instructions that you have given us in accordance with these Terms, we will restore your Penfold Pension to the condition it would have been in had the correct transaction taken place or the incorrect transaction not taken place. Once we have done so, we will have no further liability to you in respect of that transaction.

16.1.4 We will not be responsible in any circumstances for any loss that you suffer because:

1. the value of your Plan goes down;
2. of circumstances outside our reasonable control, including but not limited to, delays in executing your Orders, changes in market conditions (including price fluctuations) before your Order is executed and any change in the law;
3. we are unable to execute any instruction because of a breakdown in communication between us and an Investment Provider;
4. it arises from circumstances that we could not have reasonably anticipated when you gave us your instructions;
5. of any delay which occurs whilst we verify your identity (or the identity of anyone acting on your behalf) or your instructions;
6. we have, in good faith, acted on instructions that appear to be valid and given in accordance with our stated procedures;
7. our systems are unavailable (unless this arises as a result of our negligence);
8. you have provided us with inaccurate or ambiguous information;
9. you have failed to provide us with any information which we require; or
10. of any error in data transmission.

16.1.5 If we cannot perform our obligations by reason of any circumstances beyond our reasonable control, we will take such steps as are reasonable and practicable in the circumstances with a view to minimising the effect of the event on our clients.

16.1.6 We will not be liable to you for loss of business, contracts, profits, anticipated profits or anticipated savings however caused.

16.1.7 We do not exclude or restrict liability in any circumstances where liability cannot lawfully be excluded or restricted.

16.2 Your liability to us

16.2.1 You will be liable:

1. for any Charges reasonably and properly incurred under these Terms or as a consequence of your breach of these Terms;
2. for the results of any error on your part even though we may, in our discretion, try to remedy the error;
3. for any loss caused to us as a result of any false or incorrect information provided to us by yourself (or a person authorised to act on your behalf), or improper use of the Debit Direct guarantee scheme (or any other payment method) by yourself; and
4. for the results of any instruction being unclear or ambiguous.

16.2.2 You will not be liable for claims, demands, liabilities, losses, expenses or costs (including costs of any third party) that we bear as a result of a breach of our obligations to you (including breach of FCA Rules) or of our negligence, wilful default or fraud.

16.3 Our rights if you do not comply with these Terms (including our right to sell your investments)

16.3.1 If you do not pay money due to us you will be in breach of these Terms and we may keep any Assets that we are holding for you as security against payment of a debt owed by you and to apply it to the repayment of that debt when due.

16.3.2 We may charge you interest on any money that you owe us at a rate of 2% above the prevailing Bank of England variable base rate, calculated on a daily basis from the date the money becomes due until full payment has been received by us.

16.3.3 If you do not pay money due to us we may combine all or any credit balances on any Penfold Pensions that you hold with us, and may use the credit balances to reduce any sums you owe to us (this is called a right of set-off).

16.3.4 If you do not have enough cash in your Penfold Pensions to pay the sums due to us and do not pay any balance due to us when we ask you, we may keep or sell some or all of your Assets to settle the sums due at our discretion.

16.3.5 If we choose to sell your Units in your chosen Plan or other Permitted Investments in these circumstances, we will sell them in accordance with the Terms.

16.3.6 The net proceeds of any sale, after deduction of our Charges, will be used to reduce your liabilities. You may keep any money that is left after that.

16.3.7 If the proceeds of sale are not enough to cover the amount you owe us, you are still liable for the shortfall and must pay this to us immediately upon demand.

17. Taxation

17.1 When you make a personal contribution to your Penfold Pension you may be entitled to tax relief on that contribution, subject to the limits prescribed by the Finance Act and current legislation. You are responsible for making sure that all contributions are within allowable limits for tax relief. Where you exceed these limits, or if for any other reason tax relief is not available on your contribution, we may deduct from your Penfold Pension a sufficient amount to account for the excess tax relief and repay it to HMRC. You are required to inform us where you believe you may have contributed more than the limit.

17.2 If you provide us with the necessary information, we will arrange a claim for tax relief at the basic rate of income tax on your behalf. If you are a higher rate taxpayer, you will be responsible for reclaiming any higher rate tax relief on your contributions.

17.3 We will only refund a pension contribution at our discretion and if HMRC rules permit.

17.4 We will not make a claim for tax relief on your behalf if your employer operates a salary sacrifice (sometimes known as “salary exchange”) arrangement in respect of Contributions to your Penfold Pension, except in the normal way for contributions paid by you. We do not prepare any documentation for such arrangements.

17.5 If we have to pay any tax liability that you incur on your behalf, we may recover these costs from you. We may also be liable from time to time to other tax charges, including a scheme sanction charge in relation to your Penfold Pension if a tax chargeable payment is made. Where such tax charges are incurred, other than through any fraud, negligence or breach of regulatory duty on our part, you agree to us deducting the necessary amounts from your Penfold Pension to meet the tax charges due. Where your Penfold Pension is unable to meet the payment of the tax charge, we may require you to pay us the amounts due.

17.6 You will be liable for all other taxes that are personal to you in respect of your Penfold Pension, Assets and transactions through your Penfold Pension. Your tax liability depends on your personal circumstances and may be subject to change in the future.

17.7 We will stop acting on your instructions until applicable taxes and duties along with any applicable third-party charges are paid by you.

17.8 We are obliged under UK legislation, agreements and tax treaties with worldwide jurisdictions to provide information on our clients and about you as the beneficial owners of your Assets and to levy the appropriate rate of withholding tax. We will endeavour to collect income on your behalf under the appropriate rate of withholding tax, provided that we have the appropriate documentation from you.

18. Fees, Charges and Expenses

18.1 Using our online resources to learn more about pensions and how you can use them is free.

18.2 Our Charges Guide sets out in detail what you will have to pay for your Penfold Pension and to use our App. It is important that you make sure that there is enough cash in your Penfold Pension at all times to cover any Charges that you incur. If you do not, we have the right to sell your Assets without giving you prior notice.

18.3 You will be charged an Annual Fee, as set out in the Charges Guide, for your Penfold Pension. For customers in the Default Plan (and those who have selected a specific risk level from the Default Plan), all of this fee will be taken directly from your Penfold Pension. For those customers who have chosen a different Plan, a portion of the Annual Fee, related to the investment management of the underlying Permitted Investments within your chosen Plan, may be taken directly from those Permitted Investment by the Investment Provider. Details of how the fees are taken are set out in the Charges Guide.

18.4 The following Penfold services are provided at no additional cost to you:

• Setting up your Penfold account;
• Locating your previous pensions;
• Consolidating your pensions;
• Withdrawals;
• 30 day cancellation;
• Free transfers out at any point;
• Changing your Pension Plans;
• Pension splitting on divorce;
• Payment of Pension death benefits;
• Payment of Pension ill/serious-health benefits;
• Provision of contract Notes.

18.5 Taxes and duties may be imposed by the government or other bodies on the provision of your Penfold Pension. We will tell you whether these taxes and duties will be included in our Charges or are detailed separately. You may have to pay them even if your Penfold Pension is designed to take advantage of other relief or exemptions.

19. Information, Communication and Notices

19.1 Information

19.1.1 We require you to provide us with all accurate information that we may reasonably require in order to administer your Penfold Pension and fulfil our obligations under these Terms.

19.2 Method of communication

19.2.1 Unless otherwise specified in these Terms, your communications (including instructions) to us for the purpose of these Terms should be given through our App, or via email to hello@getpenfold.com. Legal notices should be sent to hello@getpenfold.com.

19.2.2 We will normally communicate with you online including via the App and by email and you expressly consent to this means of communication. We may also choose to contact you by telephone. We may telephone you at any reasonable time to discuss your Penfold Pension without having been expressly invited by you to do so. Either way we will communicate with you using the most recent contact details that you have given us, and we hold on our records.

19.2.3 If we need to communicate with you by post, we will communicate with you by post using the most recent postal address that you have given us unless you tell us otherwise by contacting us directly.

19.2.4 If we make material changes to these Terms, we may send you notice by email or by post.

19.3 Notices

19.3.1 All correspondence and notices sent by us shall be deemed to be received by you when despatched if sent electronically, for example by email or uploaded to your documents section in your Penfold Pension account, or 2 Business Days after posting if sent by first class post to addresses within the UK, or 4 Business Days if sent by second class post to addresses within the UK, airmail post to addresses outside the UK. However, the Terms will not apply to any correspondence or notice if:

1. such correspondence or notice is returned to us undelivered; or
2. you establish that you did not receive it at your address within the relevant period or at all; and
3. any such delay or failure in receipt was not a result of your omission to inform us of a change of your address in accordance with your obligation to do so under these Terms.

19.3.2 Where, in these Terms, a period of notice is to be given to you, that period of notice will be calculated from the date on which the notice was sent to you. The exception to this is the cancellation notice, for which the period of notice commences from the date you can reasonably be assumed to have received it.

19.3.3 We will make reasonable efforts to contact you using the contact details that you give us but if our emails bounce or our correspondence is returned marked, “gone away” or your phone number is no longer active we will not send any further communications to that address.

19.3.4 We will take reasonable steps to try to contact you to get your new details, but we do not have to send further communications until you provide us with correct details. The Terms provide further information on the action we may take if your Penfold Pension contains unclaimed Assets.

19.3.5 You must tell us without delay if your or their contact details change.

19.4 Recording communications between us

19.4.1 You agree we may record and/or monitor telephone conversations, email or other communications between us to comply with applicable Regulatory Requirements, to record instructions that you give us and for training or research purposes. These records form part of the information that we hold about you and will be handled in accordance with the Regulatory Requirements and related Policies.

19.5 Communicating with third parties

19.5.1 If agreed with you, we will send copies of communications to your agent, attorney, delegate, employer or any other third party nominated by you, including any Authorised Third Party. This may incur an additional Charge (as set out in our Charges Guide).

20. Data Protection

20.1 Before we can offer you a Penfold Pension, you will need to provide certain information to us about you, your background and your consent to us using this information to offer pension products to you. We will always use your personal data in accordance with our Privacy Policy.

20.2 We are committed to protecting and respecting your privacy. Our Privacy Policy is to let you know:

• How and why we collect personal information;
• What we do with it;
• When and why we share it with other organisations;
• How long we keep it; and
• The rights and choices you have with regard to your personal information.

21. Events beyond our Control

21.1 We may be unable, wholly or in part, to carry out some or all of our obligations in relation to your Penfold Pension due to circumstances or events beyond our reasonable control. In this event, we will inform you promptly of the circumstances or event and the probable extent to which we will be unable to perform or be delayed in performing the relevant obligation(s).

21.2 For the purposes of these Terms, circumstances or events beyond our reasonable control includes:

21.2.1 nationalisation, expropriation, imposition by any governmental or quasi-governmental authority of currency restrictions, exchange controls or other charges or restraints affecting your Penfold Pension or your Assets;

21.2.2 acts of war (declared or undeclared), terrorism, insurrection, revolution, civil disturbance, riot, blockade or other disturbance;

21.2.3 strikes, lockouts, other industrial action or other interferences with work;

21.2.4 failure or disruption of any relevant stock exchange, including depositories, settlement systems or markets;

21.2.5 widespread failure or disruption of computer systems, including electronic mail systems; and

21.2.6 earthquake, storms, floods, lightning, fire, explosions or similar natural events.

21.3 To the extent permissible under Regulatory Requirements, we will not be responsible for any loss or damage suffered by you as a result of our being unable to perform our obligations under these Terms by reason of any such circumstances or events beyond our reasonable control. We will use reasonable endeavours to minimise any such loss or damage to you.

21.4 If we are prevented from performing all or substantially all of our obligations under these Terms by any such circumstances or events beyond our reasonable control for a continuous period of 30 days or more then you shall be entitled, if you wish, to terminate these Terms immediately by giving us written notice.

22. Termination, Suspension and Closure

22.1 These Terms, as varied from time to time, will continue until your membership of the Scheme ceases. Provisions relating to Termination, Suspicion and Closure are set out as below and remain subject to the Scheme Rules from time to time.

22.2 A Penfold Pension cannot be closed other than by:

22.2.1 exercise of your cancellation rights on opening a Penfold Pension (see Cancellation Rights section);

22.2.2 a transfer to another registered pension scheme or Qualifying Overseas Registered Pension Scheme (see Transferring Out section);

22.2.3 you having exercised such other options as are permitted under the Regulatory Requirements;

22.2.4 your death;

22.2.5 your Penfold Pension having a zero value as you have withdrawn all money available through Income Withdrawal; or

22.2.6 your Penfold Pension having no value, and we contact you prior to closure to make you aware.

22.3 Closure by you

22.3.1 Subject to Regulatory Requirements, you may tell us that you want to close your Penfold Pension. You can do this at any time by giving us prior notice in writing. Your Penfold Pension will end once we have processed all outstanding Orders and payments due on your Penfold Pension and we have transferred any Assets remaining in your Penfold Pension to another registered pension scheme or Qualifying Recognised Overseas Pension Scheme or all your Penfold Pension assets have been used in providing you with retirement benefits before closure or you have exercised such other options as are permitted under the Regulatory Requirements.

22.3.2 In each case our Charges will continue to be due until your Penfold Pension no longer has any Assets in it. To complete the closure instruction, you will need to give us an instruction through the App.

22.4 Dormant Penfold Pensions

22.4.1 If your Penfold Pension becomes dormant we will treat it as a paid up Penfold Pension (one to which we anticipate no contributions to be made to) which will be held until we receive further instructions from you or your Personal Representatives.

22.5 Suspension or closure by us

22.5.1 We may close your Penfold Pension at any time by giving you 90 days’ prior notice in writing.

22.5.2 We may suspend or close your Penfold Pension and end these Terms immediately by giving you written notice if:

1. the law requires us to do so or we are unable to meet our obligations;
2. for a period of more than 6 months there are no Assets in your Penfold Pension;
3. we are not provided with satisfactory evidence of your identity and so cannot complete our anti-money laundering checks;
4. you do not comply with these Terms in a material way;
5. there is any concern as to who owns the Assets in your Penfold Pension;
6. you do not pay sums due under these Terms;
7. after making reasonable efforts to do so we cannot contact you using the details that you have given us;
8. you are using your Penfold Pension for an illegal purpose or for market timing or similar activity;
9. you are using your Penfold Pension to provide business services to another person; and/or
10. you give us, or we become aware that you have given us false, or inaccurate, information, but for which, we would not have opened a Penfold Pension for you, or because of which we are no longer able to offer you a Penfold Pension.

22.5.3 Where the circumstances relate to the conduct of your Penfold Pension or communications with us, we may suspend or close your Penfold Pension if any of these circumstances apply to anyone authorised to communicate with us on your behalf.

22.6 Effect of closure

22.6.1 When notice of closure has been served:

1. we will continue to execute any current instructions that you or an Authorised Third Party has given us, but we will no longer accept new instructions; and
2. you must settle all Charges and sums due in respect of any unsettled transactions that are due to us or as a result of the closure of the Penfold Pension.

22.6.2 Once all outstanding transactions have been settled, we will:

1. deduct from the Penfold Pension balance any sums that are due to us from you including any sums that you owe us in relation to any other accounts that you hold with us (we may sell any Assets within your Penfold Pension to meet any Charges due to us if there is not enough cash in your Penfold Pension); and
2. we will then forward any Assets in the Penfold Pension to such other registered pension scheme or Qualifying Recognised Overseas Pension Scheme account or accounts in your name, or as you direct consistent with the options available under the current Regulatory Requirements (unless we are prevented from doing so by any Regulatory Requirements).

22.6.3 Once any Assets remaining in your Penfold Pension have been transferred in accordance with these Terms, you agree that this shall constitute a discharge of our obligation to make further payments to you. For the avoidance of doubt, this discharge shall not act so as to prevent you from bringing any claim for any act or omission by us.

22.6.4 Closure of your Penfold Pension will not affect any legal rights or obligations that have already arisen.

23. Variation

23.1 We may vary these Terms and our Charges at any time if we have a valid reason to do so. We consider the following to be valid reasons:

23.1.1 to respond proportionately to changes in Regulatory Requirements;

23.1.2 to reflect any changes made to the Scheme Rules:

23.1.3 to comply with any decision or recommendation of a legal body or legal decision;

23.1.4 to reflect good industry practice or changes in the operation of the markets;

23.1.5 as a result of changes to our systems and processes and the way our business operates, or any changes to or affecting any third parties with whom we engage whilst providing your Penfold Pension;

23.1.6 to remedy obvious errors; or

23.1.7 to proportionately reflect legitimate cost increases in, or restructures of, the Penfold Pension and how we operate it.

23.2 If we vary these Terms to your disadvantage or vary our Charges for a reason that is not specified in these Terms, we will give you 30 days’ prior notice in writing, except in the case of changes that we have to make for the purposes of complying with Regulatory Requirements, when we may vary these Terms with immediate effect.

23.3 Whenever we give you notice of a material amendment that is to your disadvantage, you will be able to close your Penfold Pension during the notice period specified in accordance with your current Terms. If you do not do this, you will be deemed to have accepted the change.

24. Complaints

24.1 You can address any complaints about our services by email or in writing, to the Chief Operating Officer, at the address shown in the ‘Information, communication and notices’ section above. The complaint will be dealt with in line with our complaints procedure, a copy of which is available on our App and on request.

24.2 If the matter is not dealt with to your satisfaction, you can refer your complaint to:

The Pensions Ombudsman10 South ColonnadeCanary Wharf E14 4PU Telephone number: 0800 917 4487www.pensions-ombudsman.org.uk

Or alternatively to:

The Financial Ombudsman ServiceExchange TowerLondonE14 9SRTelephone number: 0800 023 4567www.financial-ombudsman.org.uk 

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

25. Compensation

25.1 Your Penfold Pension is covered by the Financial Services Compensation Scheme (FSCS).

25.2 Each Plan is made up of other investments as you can see in your App.  If the Investment Provider of one of these underlying investments, or any other Permitted Investment that you have chosen were to fail, then:

(i) if  it is the Investment Provider of a Life Policy , such as the one that the Default Plan invests in, then the Trustee as policyholder of the Life Policy would pursue the claim against the Investment Provider on your behalf. If the FSCS were to accept the claim, then the value of the Life Policy would be protected at 100% with no upper limit, and we would pass this protection on to you;

(ii) if it is a Collective Investment Scheme, we would not expect this to affect you or your Plan’s Units as the Collective Investment Scheme’s assets would be held separately from the Investment  Provider’s assets;

25.3 If we cease trading or become insolvent, the amount of compensation that you may be entitled to receive under the FSCS depends on the type of business being carried out and the circumstances of the claim. Most types of investment business are covered, as at the date of our Terms, up to £85,000 for any one claimant. These limits may change from time to time. This means that if we are unable to meet our obligations to you, and the FSCS accepts your claim, we would expect your Penfold Pension to be covered by the FSCS protection up to a maximum of £85,000. Please note that compensation limits apply to your total holdings with an organisation in relation to each category of claim and therefore each limit includes all the investments or all the cash that you hold across your accounts with one organisation.

25.4 Please note that the FSCS does not protect against market volatility. In addition, compensation arrangements in overseas jurisdictions may differ to those in the UK.

25.5 Further information on the FSCS is available on their website www.fscs.org.uk

26. Other Important Terms

26.1 Transferring rights and obligations

26.1.1 We may delegate the performance of our obligations under these Terms to a third party. Before doing so we will take reasonable care to make sure that the third party will competently perform the obligations delegated, we will monitor the performance of the third party’s activities and will remain responsible for the obligations delegated.

26.1.2 We may also transfer all or part of our rights and obligations under these Terms to a third party. We do not need your consent to do this but will only do so if we receive undertakings from that third party that you will be no less favourably treated than before the transfer was effected.

26.1.3 You may not assign or otherwise transfer any of your rights or obligations under the agreement to anyone else unless we have given you our prior written consent.

26.2 Legal/Tax/ Investment matters

26.2.1 We will not provide you with legal, tax or investment advice and recommend that you obtain your own independent advice.

26.3 Nobody else has any rights under these Terms

26.3.1 These Terms are between you and us. No other person shall have any rights to enforce any of their terms.

26.4 If a court finds part of these Terms illegal, the rest will continue in force

26.4.1 Each of the paragraphs of these Terms operates separately. If any court or relevant authority decides that any of them are unlawful, the remaining paragraphs will remain in full force and effect.

26.5 Even if we delay in enforcing any of these Terms, we can still enforce it later

26.5.1 If we do not insist immediately that you do anything you are required to do under these Terms, or if we delay in taking steps against you in respect of your breaking these Terms, that will not mean that you do not have to do those things and it will not prevent us taking steps against you at a later date. For example, if you miss a payment and we do not chase you, but we continue to provide the products, we can still require you to make the payment at a later date.

26.6 Regulatory Compliance

26.6.1 We conform to the Regulatory Requirements as they apply to us in the UK.

26.7 Which laws apply to these Terms and where you may bring legal proceedings

26.7.1 These Terms are governed by English law and you can bring legal proceedings in respect of these Terms in the courts of England and Wales.

26.7.2 If you live in Scotland, you can bring legal proceedings in respect of these Terms in either the Scottish courts or the courts of England and Wales.

26.7.3 If you live in Northern Ireland, you can bring legal proceedings in respect of these Terms in either the Northern Irish courts or the courts of England and Wales.

27. Risk Warnings

27.1 Your Penfold Pension is used for investment purposes. As we provide an execution only service, we do not provide any financial advice or make recommendations which means that any decision is made by you or on the advice of a financial adviser which you have appointed. If you are in any doubt you should consult a professional financial adviser.

27.2 With all investments your capital is at risk and the value of your investments and the income deriving from it can go down as well as up. You may get back less than the amount you originally invested.

27.3 All investments carry an element of risk. There are general risks that apply to all investments and some which are specific to an individual fund or type of investment. Listed below is important information about the risks of investing, please note that this is not an exhaustive list of all the risks associated with any particular investment. You 27.4 should read the relevant Penfold Pension Key Features Document and Charges Guide and the Key Investor Information Document (KIID), Key Information Document (KID) or Prospectus for any Permitted Investment you wish to invest in as these will contain important information that could influence your decision.

27.5 Laws and tax rules may change in the future without notice. This information takes no account of your personal circumstances which may have an impact on tax treatment.

27.6 Past performance is not a guide to future performance. Future returns are not guaranteed. What you receive when you sell your investments is not guaranteed, it depends on how your investment performs and the charges applied.

27.7 Foreign markets involve different risks from the UK market.

27.8 Investments in emerging markets or less developed countries may have less regulatory control and less supervision of their financial markets, and consequently less investor protection.

27.9 Transaction costs, commissions and local taxes may be higher than in more developed financial markets. This may all mean your money is at greater risk. Investments which are denominated in a currency other than Sterling may be affected by movements in exchange rates. Consequently, the value of an investment may rise or fall in line with exchange rates.

27.10 Investments may be adversely affected by changes in interest rates and expectations of inflation. They may be subject to credit, liquidity and duration risks. Adverse changes in the financial position of an issuer to repay their debt or have their credit rating reduced. Generally, the higher perceived credit risk of the issuer, the higher the rate of interest.

27.11 Illiquid securities can take a lot longer to sell than other types of investment so you may not be able to sell when you want to. Illiquid securities, like equities, can rise or fall sharply at any time.

You can find links to these Terms, the Key Features Document, and the Charges Guide at getpenfold.com/terms.

Schedule 1 – Custody Terms

BACKGROUND

1.1 Penfold Savings Limited, (the operator of the Penfold Scheme) (“Penfold”), has appointed Seccl Custody Limited ("Seccl") as the Custodian to provide: (a) the custody services described in this schedule; (b) cash payment services, asset price and information data; and (c) client money and asset reconciliation in accordance with the client asset sourcebook (“CASS”) of the FCA Rules (the “Custody Terms”). Seccl is authorised and regulated by the Financial Conduct Authority of 12 Endeavour Square, London, E20 1JN, registration number 793200, to arrange, safeguard and administer custody of cash and assets

1.2 Seccl is registered in England, registration number 10430958. To contact Seccl, you can write to 20 Manvers Street, Bath, BA1 1JW.

1.3 Terms not defined in these Custody Terms have the meaning set out in the Terms & Conditions or the FCA Rules

2. SYSTEM OPERATION - APPLYING AND TRANSACTING

2.1 Seccl is authorised to ensure that the custody of the Cash and Assets of the Penfold Scheme are kept safe in accordance with Applicable Law. Seccl does not provide custody services in respect of Life Policy Assets and accordingly Seccl does not hold these assets in accordance with CASS. Life Policy Assets will be owned legally and/or beneficially by the provider of such Life Policy Assets (“Life Policy Provider”) and the Life Policy Provider is responsible for the operation and administration of such assets in accordance with Applicable Law and the Life Policy Asset Terms and Conditions. Seccl will carry out investment instructions, cash payment services and provide asset price information in respect of Life Policy Assets in accordance with the service agreement between Seccl and Penfold.

2.2 Any deposits or withdrawals of Cash or instructions to buy, sell or transfer Assets, will be recorded and managed in accordance with the FCA Rules. Seccl will ensure any investment instructions arranged by Penfold are completed in accordance with the agreement between Seccl and Penfold.

2.3 All Cash will be held with an approved bank in a designated client money statutory trust account. The account is held separately from any monies held by Seccl.

2.4 Assets (excluding Life Policy Assets) will be registered to Digital Custody Nominees Limited ("Nominee") which is a wholly owned subsidiary company of Seccl. This arrangement safeguards and segregates the Assets from those of Seccl. Seccl is responsible for the Nominee.

2.5 The Cash and Assets (excluding Life Policy Assets) will be held in a pooled arrangement. This means that Seccl will have records that identify your entitlement to Assets in the Penfold Scheme. For operational and servicing purposes it is more efficient for Seccl to administer the investments on a pooled basis

2.6 Where Assets are held in an “omnibus account”, the legal title to these Assets will be in the name of the Nominee together with Assets held for other Clients. This means that Assets (excluding Life Policy Assets) held for the Penfold Scheme will not be separately identifiable within the Nominee’s account, only in Seccl’s books and records, as UK - 630451383.7 86 described at Clause 2.5 above. In the event of a default in relation to Assets held in an omnibus account, you may not receive your full entitlement if there is any irreconcilable shortfall in investments and may share with other Clients in the shortfall in proportion to your original share. There may also be a delay in receiving entitlement to such investments.

2.7 Where Cash is held in a pooled account together with money from other Clients, you, Penfold and/or the Trustee will not have a claim against a specific amount in a specific account. In the event that any bank with which Seccl has deposited the client money was to fail, you, Penfold and/or Trustee of the Penfold Scheme may not receive their full entitlement and may share in the shortfall with other Clients in proportion to their original share.

2.8 Seccl will have instances where it needs to appoint third-party nominees or sub custodians to maintain the custody services offered. By agreeing to these Custody Terms, you and Penfold authorises Seccl to do this.

2.9 Seccl will use reasonable care and due diligence to perform its duties as Custodian.

2.10 Where Seccl receives income from the Assets (excluding Life Policy Assets), for example through dividend payments or fund distributions, Seccl will reconcile and credit these to the relevant Investment account(s). All overseas dividends are processed with standard rate withholding tax as applicable for the overseas territory.

2.11 As “Corporate Action” events arise (i.e. something that will bring about a change in the investments held under these terms, such as rights issues, stock splits, mergers and name changes), Seccl will inform Penfold where actions are applicable to your Assets (excluding Life Policy Assets).

2.12 Seccl will facilitate the transfer of Cash and Assets in accordance with Penfold’s instructions in line with the agreement between SCL and Penfold.

3. CASH PROCESSES

3.1 Any Cash deposits or income will be credited to your respective account once identified and reconciled by Seccl.

3.2 Seccl will pay any and all interest net of any amounts retained by Penfold according to Penfold’s agreement with Seccl. Interest is accrued daily and paid monthly in the month immediately following that for which it was accrued. Interest is calculated on cleared Cash balances. Interest which accrues on client money accounts will not be treated as client money until it is applied each month.

3.3 Where interest cannot be distributed due to rounding differences, the unallocated interest will be paid to a registered charity chosen by Seccl.

3.4 Seccl may use a combination of instant access, notice and unbreakable term deposit accounts to diversify the way it holds client money, where notice periods or unbreakable terms may be up to 95 days in accordance with the FCA Rules. In extraordinary circumstances, there may be a delay in receiving any withdrawals.

4. SETTLEMENT

4.1 Settlement of Assets (excluding Life Policy Assets) will be in line with market best practice, as set out in the Seccl Order Execution Policy.

4.2 For Model Portfolio and switch orders, Seccl will place a buy order after the sell UK - 630451383.7 87 instruction is confirmed by the Fund manager or the market. Seccl may delay the purchase of ETI orders if the intended Settlement date on the sale of a Fund is a day or more beyond that of the ETI order.

5. ADVISER FEES & CHARGES

5.1 Where Adviser Charges are to be deducted from your relevant account, Seccl will process Adviser Charges in line with instructions we receive from Penfold and/or Advisers linked to your relevant account. We will treat instructions from the authorized Adviser as having been fully authorized by Penfold.

5.2 If the relevant account from which Adviser Charges and/or DFM Charges are being taken no longer has sufficient value to pay these Adviser Charges or DFM Charges, Seccl reserves the right not to pay these Charges. You will still be responsible for paying those Charges to the Adviser or DFM.

6. LIENS

6.1 Seccl reserves the right to enforce the right of liens (a right for us to hold on to Assets in our possession pending payment of a debt it is owed) over the Assets in specific circumstances and where agreed with Penfold.

7. COMMUNICATIONS

7.1 All communication with you will be in English through the Penfold App.

7.2 Seccl will provide quarterly statements monthly and contract notes, which will detail the buys or sells instructed on your account. It is your responsibility to read this information and to notify Penfold of any errors or omissions in respect of the accuracy of these documents.

8.  COMPLAINTS

8.1 Seccl has its own complaints policy. If you want to complain, please contact Penfold first. If the complaint relates to services provided by Seccl, please provide Penfold with all necessary information to resolve the complaint. Penfold may ask Seccl to take control or assist with the complaint if reasonably necessary.

8.2  If you would rather contact Seccl directly, please contact Seccl by email at support@seccl.tech or by post to The Compliance Officer, 20 Manvers Street, Bath, BA1 1JW.

8.3 If your complaint is not satisfactorily resolved or fails to be resolved within eight weeks of receiving the complaint, you can also direct your complaint to the Financial Ombudsman Service at:

• Exchange Tower, London E14 9SR;
• Telephone: 0800 023 4567 or 0300 123 9 123;
• email: complaint.info@financial-ombudsman.org.uk; and
• website: www.financial-ombudsman.org.uk.

9. REMUNERATION

9.1 Penfold pays Seccl for custody services.

10.     CONFLICTS OF INTEREST

10.1 Seccl maintain a Conflicts of Interest Policy independent of Penfold. It is available by contacting Seccl or Penfold.

11. FORCE MAJEURE EVENT

11.1 To the extent permissible under Applicable Law, neither Penfold nor Seccl shall be responsible for any loss or damage suffered by the other by reason of any natural and unavoidable catastrophes that interrupt the expected course of events and restrict Penfold or Seccl from fulfilling obligations under these Custody Terms. If such loss, damage or failure is, or may occur, due to such an event, each party will use reasonable endeavours to minimise the effects and will notify the other.

12. DATA PROTECTION

12.1 In providing the services set out in this Schedule, Seccl will have access to the data you provide. In the service agreement between Penfold and Seccl, both parties are joint data controllers and have independent privacy policies that summarise how your personal information will be used and with whom it is shared.

12.2 Seccl will use your details for regulatory reporting purposes and will not use or share your information for marketing purposes.

12.3 Seccl will retain Client data and relevant communications for a period of at least seven (7) years from the date your account is closed to the extent required by applicable law.

13.  USE OF THIRD PARTIES

13.1 To provide custody services Seccl will use the services of third-party service providers.

13.2 Examples include the provision of: data and price feeds of assets, the execution of trading instructions, clearing and Settlement services, banking services, client verification, regulatory reporting, card payment services and the facilitation of automated transfer instructions.

13.3 Where services are provided by a third party, Seccl will use reasonable care and due diligence in selecting them and monitoring their performance. Except in relation to the services of the Nominee under clause 2.4, Seccl does not guarantee proper performance by the third party and will not itself be responsible if a third-party provider fails to meet its obligations. If the third party defaults or becomes insolvent, Seccl will attempt to recover any losses the Third-Party Product Provider has suffered. However, if the third party cannot repay its creditors any shortfall may have to be shared proportionally among them, including the Third-Party Product Provider and other Clients, and the Third-Party Product Provider may lose some or all of their Cash or Assets. This may include circumstances where it is not possible under the relevant national law and the arrangements for the registration of legal title to the Assets to identify the Client Assets from the assets of the third-party firm. In this situation, the Third-Party Product Provider will not necessarily be entitled to compensation from Seccl and may seek recompense from the FSCS.

14. ACCOUNT CLOSURE

14.1 Where an Investment Account has been closed, Seccl may pay away residual balances below £10 remaining on your Platform Account to a registered charity chosen by Seccl in line with FCA rules.

15. TERMINATION

15.1 Seccl may terminate the Custody Terms at any time by giving Penfold three months written notice (subject to Applicable Law).

15.2 Seccl may also terminate the Custody Terms with immediate effect by written notice if required to do so by Applicable Law or on instructions from Penfold.

15.3 In this event, Penfold will instruct Seccl where to transfer the Client Assets and Cash. Seccl will transfer the Client Assets and Cash in accordance with the relevant instruction or otherwise directly to Penfold. The Custody Terms will continue to apply until the transfer is complete.

16. SEVERABILITY

16.1 If any part of the Custody Terms is declared unenforceable or invalid, the remainder will continue to be valid and enforceable.

17. NOTICES OF CHANGE/VARIATIONS

17.1 Seccl may change these Custody Terms in whole or in part. Seccl can do this for the reasons stated in our change control policy, a version of which is available from Seccl.

18. GOVERNING LAW

18.1 The Custody Terms and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with them or their subject matter or formation shall be governed by and construed in accordance with the law of England and Wales.

18.2 You agree that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with these Custody Terms or their subject matter or formation.

19. LIABILITY

19..1 Seccl will use all reasonable skill, care and diligence in acting as Custodian. Seccl will be liable to Penfold for any direct loss that is the result of negligence or failure by Seccl to account for Cash or Assets in Investment Accounts or through a breach of FCA Rules, unless any such failure is the result of the acts or omissions of you or Penfold, or the Trustee.

19.2 Nothing in these Custody Terms shall be read as excluding or restricting any liability Seccl may have for death or personal injury or any duty or liability it may have under the FCA Rules or regulatory system.

19.3 Seccl will not be liable for the following:

• loss of business, goodwill, opportunity or profit; or
• any special, consequential or indirect loss whatsoever;
• as a result of us doing (or not doing) anything in reliance upon an instruction given (or which we reasonably believe to have been given) by you, Penfold or your Adviser;
• as a result of your or Penfold’s decisions relating to the choice, purchase, retention and sale of any Assets in your account(s);
• from the default of any bank, fund manager or provider which holds your, Penfold’s or the Trustee’s Cash and Assets (except as required under the FCA Rules);
• from the performance of any Assets;
• the operation or administration of Life Policy Assets;  the acts or omissions of providers of Life Policy Assets;
• from any tax liabilities or charges that are incurred in relation to your account(s) and/ or the Assets held within it; or
• from any instruction sent by you, Penfold, your Adviser that is not received by Seccl, unless we do not receive it due to a fault or omission on our part.

19.4 You accept and acknowledge that the internet and the telecommunication systems may be subject to interruption or failure through no fault of ours.