Terms of Business

Terms of Business Letter

(Incorporating Initial Disclosure Document)

Regulator

The Financial Services and Markets Act 2000 regulates the provision of advice on investment and savings. Research Independent Financial Services Limited are authorised by the Financial Services Authority (FSA) to give such advice.

Services

Research Independent Financial Services Limited are not tied to one company's products and therefore we shall act impartially when giving advice and arranging life assurance, mortgages, pensions, investments in authorised unit trusts, open ended investment companies (OEICs), investment trusts, personal equity plans (PEPs) and individual savings accounts (ISAs). Research Independent Financial Services Limited also provide consultancy, administration and trustee investment services in relation to group and executive pension arrangements, including small self administrated schemes, personal pensions (including advice on whether to contract out of the Second State Pension). Group life, keyman, sickness and disability benefits cover are also arranged but these are not regulated by the FSA.

Statement of Review

When we have arranged any investments for which you have given instructions we will not give you any further advice unless you request it but will be glad at any time to advise you at any time you ask us to do so.

Payments of Services

Research Independent Financial Services Limited normally derive our income from commission paid to us by life assurance companies and the operators of collective investment schemes through which investments are made. We shall tell you the amount of commission payable to us on any such investment. If Research Independent Financial Services Limited receive a commission or other form of benefit from the insurer of a security or from another intermediary we will inform you but we will not tell you the amount unless you ask us to do so. Alternatively if you or we propose to operate on a fee basis we will arrange its basis, frequency and method with you in writing before we carry out any chargeable work. Should we receive commission from any third party in relation to transactions arranged for you, we will offset the amount received against any fees due. You should speak to your local inspector of taxes to determine whether or not the application of commission for your benefit generates a personal tax liability.

Accounting to you

Research Independent Financial Services Limited does not handle clients money. We never handle cash or accept a cheque made out to us unless it is a cheque in settlement of our charges or disbursements for which we have sent you a fee note. Unless in exceptional circumstances we will confirm to you in writing the basis of our reason for recommending the transaction executed on your behalf. Research Independent Financial Services Limited will also make arrangements for all your investments to be registered in your name unless you first instruct us otherwise in writing. We will forward to you all documents showing ownership of your investments as soon as practicable after we receive them; where a number of documents relating to a series of transactions is involved, we will normally hold each document until the series is complete and then forward them to you.

Investment Objectives

Following the issue of this letter any subsequent advice or recommendation offered to you will be based on your stated investment objectives, acceptable level of risk and any restrictions you wish to place on the type of investments or policies you are willing to consider. Details of your stated investment objectives will be included in the suitability letter we will issue to you to confirm our recommendation. Unless confirmed in writing to the contrary we will assume that you do not wish to place any restrictions on the advice we give you.

Risk Warning

You are advised that because investments can fall as well as rise you may not get back the full amount invested. Past performance is not necessarily a guide to future performance.

Right to Withdraw

In the case of a non-packaged product, ISA or PEP recommended we will inform you in writing of any right to withdraw or cancel you may have or if it is the case we will inform you in writing that no such rights will apply.

Unsolicited Real Time Financial Promotion

Research Independent Financial Services Limited shall be entitled to make any unsolicited telephone call or personal visit to you regarding products or services that may be of interest, during working hours, only if we have received your consent to do so as previously indicated. We will not however contact you at times or places when or where you have advised us not to make such contact.

Conflict of Interest & Material Interest

Research Independent Financial Services Limited offer independent financial advice but occasions can arise where we or one of our other customers may have some form of interest in business which we are transacting for you. If we become aware that our interests or those of one of our other customers conflict with your interests we will inform you and obtain your consent before we carry out your instructions.

Complaints Procedure

Research Independent Financial Services Limited maintains an internal complaints procedure. If you should have any cause to complain about the services and advice we have provided please contact the Compliance Officer at Research Independent Financial Services Limited, Ellerbeck House, 71 Woodland Road, Darlington, DL3 7BQ. We promise to deal with your complaint in a fair and objective manner.

If following our subsequent investigation and response you are still not satisfied you may contact the Financial Ombudsman Service. Full details are contained within our internal complaints procedure, which is available to you on request at any time.

Professional Indemnity Insurance

As required by the FSA, Research Independent Financial Services Limited maintains professional indemnity insurance for the protection of our clients in the event of negligence by an employee.

Compensation Arrangements

If you make a valid claim against us and we are unable to meet our liabilities in full you may be entitled to redress from the Financial Services Compensation Scheme (FSCS). Further information is available from the FSA and FSCS. The FSCS also produce an explanatory leaflet 'How we handle your claim for compensation - Deposit & Investment Claims' available from their website or you can order a copy by telephone. Details for the FSCS are: Financial Services Compensation Scheme, 7^th Floor, Lloyds Chambers, Portsoken Street, London, E1 8BN, telephone 020 7892 7300. Website www.fscs.org.uk email enquiries@fscs.org.uk

Data Protection Act 1998 and Disclosure of Personal Data

In the conduct of our business with yourself we will need to collect information about you which we will hold as data controllers under the Data Protection Act 1998. We will use the information to analyse your current and future needs so that we can ensure that any advice is suitable to your particular circumstances.

The FSA requires us to keep records of our business transactions for at least three years; life and pension transactions for six years and indefinitely for pension transfers, opt-outs and FSAVCs. However we will not keep records longer than is necessary. You or your appointed agent have the right to inspect all records, relating to yourself and your transactions through ourselves and where appropriate have it corrected or deleted. All such requests for information must be referred to the Compliance Officer at Research Independent Financial Services Limited.

Where other firms authorised under the FSMA 2000 provide investment business services to Research Independent Financial Services Limited then circumstances may arise which warrant the disclosure of more than just your basic contact details. On these occasions you are aware that sensitive personal information (e.g. health details) held by us may be disclosed on a confidential basis to such authorised companies.

There may also be occasions when the FSA need to look at your personal information and records of transactions held by us, and they may need to contact you directly.

Termination of Terms of Business

You or we may terminate these instructions at any time without penalty. Notice of such termination must be given in writing and will take effect from the date of receipt. Termination is without prejudice to any transactions already initiated that will be completed according to these terms of business unless otherwise agreed in writing. We shall be entitled to remuneration for work undertaken prior to such termination and any feeds that may be outstanding.