The Financial Services Authority is the independent financial services regulator. It requires us to give you this important information to help you to decide whether the Hornbuckle Mitchell Private Pension is right for you.
Hornbuckle Mitchell’s Private Pension is a Self-invested Personal Pension (SIPP). A SIPP is a type of personal pension that allows you to control where you invest your money.
If you are unsure whether a SIPP or taking an income from a SIPP is suitable for your requirements, you should speak to a Financial Adviser.
Its aims
Hornbuckle Mitchell’s Private Pension is designed to provide you with:
a means to save for your retirement in a tax-privileged manner
the opportunity to invest your funds (including protected rights) in any HMRC permitted investment which does not attract a tax charge
the option of using your funds (including protected rights) for borrowing calculations
the ability to make your own investment decisions, or in conjunction with your Investment Manager or Financial Adviser, even when you are drawing an income
a lump sum and flexible income in retirement
a lump sum, a pension, or both for your spouse or civil partner and or dependants should you die before taking the benefits
the option to take income from your pension without buying an annuity. Income taken before age 75 is known as unsecured pension and income taken from age 75 is known as alternatively secured pension
to give you flexibility over the provisions for your spouse, civil partner and/or dependants upon your death including the availability of a lump sum (taxed if you are drawing an unsecured pension) or to draw taxable income in the event of your death
the option of transferring other registered pension schemes into your Private Pension
Your Commitment
You commit to make at least one single contribution (either a lump sum payment or a transfer, including protected rights, from a previous pension) or regular contributions
You are not required to continue making contributions
You will be required to maintain a minimum cash balance of at least £1,000 in your Private Pension prior to taking an income. You will also be required to maintain sufficient funds to pay the next withdrawal once either an unsecured pension or alternatively secured pension is being paid
You will not be able to draw any benefits until you are at least 50 (increasing to 55 from 6 April 2010)
You, your investment manager or financial adviser will be responsible for ensuring that the assets held within your Private Pension are suitable to meet your needs and
objectives in retirement
You will be required to tell us each year how much you wish to withdraw from your plan, within HMRC limits
You will be required to take your tax-free lump sum at the same time as you designate your fund for income drawdown and before your 75th birthday. HMRC rules will not allow a tax-free lump sum to be paid from age 75
Risk Factors
The level of pension at retirement is not guaranteed and may be lower than illustrated if:
you retire earlier than planned
you stop or reduce any regular contributions being paid
the investment returns are lower than illustrated
you purchase an annuity and the annuity rates are lower than illustrated
the charges increase at a higher rate than illustrated
tax rules or legislation changes in the future
You should be aware of the following risks when you start to draw an income:
High income withdrawals are unlikely to be sustainable
There is no guarantee that your income will be as high as that provided by an annuity
The value of the remaining pension fund may not be enough to maintain income at the same level to that from an annuity bought at the outset
Taking withdrawals may erode the capital value of the fund especially if investment returns are poor and a high level of income is being taken. This could result in a lower income when the annuity is eventually purchased
Annuity rates may be at a worse level when an annuity purchase takes place
The higher the level of income taken, the less you will be able to provide for dependants or to buy an increasing annuity
The level of income that you get froman annuity is based on the average life expectancy of someone of your age and health. A Life Companywhen fixing an annuity ratewill take into account that the funds of those people who die early will remain in a pool to effectively subsidise those who live longer. This is known as ‘mortality gain’. Unsecured Pension and Alternatively Secured Pension does not benefit from any subsidy
The maximum income that can be withdrawn under Alternatively Secured Pension after age 75 is significantly less than the maximum that applies before age 75
The charges to your Private Pension may increase more than
assumed in the illustration(s)
Investment Risks
- Some investments are higher risk than others and you should therefore understand the risk profile of the underlying investments
- The investment performance of the underlying assets may be worse than assumed in the illustration(s). The value of investments can fall as well as rise and are not guaranteed and past performance is not a guide to future returns
- Some investments may be harder to sell than others and you may not be able to sell them when you want to
Taxation Risks
- There will be a delay in recovering basic rate income tax from HM Revenue & Customs during which time the cost of investments may rise
- Tax legislation (or common understanding of it) and tax rates may change and create additional tax liabilities on you or your pension fund
- An unauthorised payment or investment made by the Plan may result in substantial tax charges on you and your pension fund
Further information
Your right to change your mind
You will have 30 days from the day that you receive the Notice of Cancellation in which to change your mind. If you wish to cancel your Private Pension please either complete the
Cancellation Notice or write to us at:
The Compliance Department
The Hornbuckle Mitchell Group plc
Tyman House, 42 Regent Road, Leicester LE1 6YJ
T 0845 345 2555
Law
This contract is governed by the laws of England & Wales and any disputes will be subject to the exclusive jurisdiction of the English Courts.
Language
This contract will be provided to you and concluded in English and all communications between us will be in English.
Complaints
If you are not satisfied with any aspect of our product or service you may wish to register a formal complaint against us. In the event of this please contact:
The Compliance Department
The Hornbuckle Mitchell Group plc
Tyman House, 42 Regent Road, Leicester LE1 6YJ
T 0845 345 2555
Please note that any complaint regarding advice given to you by your Financial Adviser should be referred to them.
If you cannot settle your complaint with us, you can refer your complaint to Financial Ombudsman Service, which is an independent dispute resolution service and can be contacted at:
South Quay Plaza, 183 Marsh Wall, London E14 9SR
T 0845 080 1800
You may also make a complaint to The Pensions Advisory Service (TPAS) and if they are unable to help you, you contact the Pensions Ombudsman. Addresses are available upon
request. A copy of our complaints procedure is available on request. Making a complaint will not affect your legal rights.
Compensation
Hornbuckle Mitchell Group plc is covered by the Financial Services Compensation Scheme (FSCS). Youmay be entitled to compensation from the scheme if we cannot meet our obligations.
This depends on the type of business and the circumstances of the claim. Most types of investment business are covered for 100% of the first £30,000 and 90% of the next £20,000, so the maximum compensation is £48,000. Bank deposit accounts are also covered by the FSCS and their clients are covered for 100%of the first £35,000, subject to a maximum payment to any one depositor of £35,000. Further information about compensation arrangements is available from the Financial Services Compensation Scheme.
About Hornbuckle Mitchell
We are authorised and regulated by the Financial ServicesAuthority. Our FSA register number is 120820. You can check this on the FSA’s Register by visiting the FSA’s website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234.
