Aurora Quantum provided

by Concept Group Limited

New business process guide for financial advisers

Terms of business

All Financial Advisers who have not previously sold Qualifying Recognised Overseas Pension Schemes
QROPS from Concept Group Limited (Concept) must complete Terms of Business and send to Concept
Group. An authorised signatory list should also be provided.

Concept will review the Terms of Business and once accepted the Financial Adviser shall be registered on
Concepts database and a Financial Adviser reference number issued.

The Financial Adviser reference number shall be added to the Terms of Business and a signed copy returned
to the Financial Adviser for their records. The original shall be retained by Concept.

Start of process

The Financial Adviser should obtain an authority letter(s) signed by the prospective client giving both the
Financial Adviser and Concept authority to correspond directly with the existing pension scheme provider(s) in
relation to the prospective clients existing pension scheme(s).

The Financial Adviser should then send the authority letter(s) to the existing scheme provider(s), to request a
transfer value and all other relevant documents required to enable a transfer(s) to a QROPS.

The documents from the scheme will include a discharge form and Lifetime Allowance (LTA) form. They may
also include the following HMRC forms:-

CA1554 - Appropriate Personal Pension/Appropriate Personal Pension Stakeholder Pension request
for earnings details;
CA1881 - Transferring Protected Rights from an Appropriate Personal Pension (APP)/Appropriate
Personal Pension Stakeholder Pension (APPSHP) to an overseas scheme or overseas arrangement;
CA1890 - Termination, change of responsibility to an overseas scheme or overseas arrangement;
CA1895 - Transfer of protected rights.




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Application

The Financial Adviser should then get the client to complete and sign the following documents:
Aurora Quantum application form
Discharge form(s) from the existing pension scheme provider;
All relevant HMRC forms which will be provided from the existing pension scheme provider;
LTA form(s) which will be provided by the existing pension scheme provider;
Royal Skandia bond application form will require completing. The client does NOT need to sign the
application form unless the application is for the Executive Investment Account. Concept Trustees
Limited will need to sign the application form as the applicants.

All above documentation together with the
Client due diligence documents,
The existing pension policy document if applicable including any other relevant certificates (such as
Enhancement or Primary Protection where relevant),
A copy of the authority letter(s) sent to the existing scheme providers should then be forwarded to
Concept and NOT Royal Skandia.

Appointment of investment manager and third party custodian

Within the Aurora Quantum application form is the requirement to appoint an investment manager and if
required advise a fee. An option is also available to appoint a third party custodian and also advise any fee.
The terms of the appointment and any fee are to be agreed between the member and their appointed
investment manager. The member, if acting as the investment manager, may not receive a fee as this may be
construed as a benefit payment.

The member will need to obtain any required policy valuations from their Financial Adviser. Access to on-line
valuations will only be available to their Financial Adviser who can utilise Insite, Royal Skandias on-line facility.
Where the member is acting as the investment manager and transacting direct with Royal Skandia without
adviser support, valuations will be provided by Royal Skandia.

For more details see "How to complete the Aurora Quantum Investment Manager p5 & p6 Appointment guide.

For the avoidance of doubt Concept Trustees Limited or any of their associated companies have no duty to
review the decisions of the investment manager and may not exercise any investment powers other than as
directed by the investment manager, on the death of the member or to pay any liabilities properly chargeable
against the sub-fund.

Transfer process

Whilst the time frame on receiving transfers can vary significantly from each existing scheme provider, from
Concepts past experience in dealing with transfers they find that between one and three months is a realistic
expectant timescale. However, in-specie transfers tend to take considerably longer.

Regular reminders will be issued by Concept to try and ensure an efficient transfer of funds. If a Financial
Adviser requires an update on current progress they should contact Concept directly.

Upon receipt of the transferred funds Concept will complete their paperwork. In order to minimise money
transfer costs, the funds will not be transferred to Royal Skandia until all transfers have been received.
However, where these funds have not been received within one month of receipt of the initial transfer, the
funds, if above 50,000, will be transferred to Royal Skandia for investment. Transfers of over 200,000 will
generally be transferred to Royal Skandia on receipt rather than wait for any further transfer payments.

Please note that due to the current low interest rates no interest will be paid on transfers held on deposit by
Concept. As interest rates vary this situation will be reviewed by Concept.




In-specie transfer of pension assets to the Royal Skandia bond

This will be subject to the agreement by both the existing pension provider and Royal Skandia. If agreed the
Royal Skandia form transferring your assets to your bond/account will need to be completed by Concept and
returned to Royal Skandia to process.

Where benefit payments have commenced or are due within 6 months of the transfer

If benefits are to commence, or funds to be retained to meet benefit payments in the next six months, these
instructions must be made clear at the application stage. Otherwise the whole of the funds received, less
Concepts initial fee and annual trustee fee (calculated from the date of formation to the following 30th J une),
will be forwarded to Royal Skandia for investment into the chosen bond.
Subject to the above, Royal Skandia will pay pension benefits, including the pension commencement lump
sum, directly from the bond to the members nominated bank account on receipt of written authorisation from
Concept and receipt of the members due diligence which Concept will provide. The investment manager takes
responsibility to ensure that funds are available within the bond to allow the benefit payments to be made.
Taking pension benefits within the first few years of setting up the Royal Skandia bond may result in early
encashment charges applying depending on the bond charging structure selected. The effect of these charges
and taking the withdrawals from the Royal Skandia bond should be reflected in the Royal Skandia bond quote
provided. Please ensure that when asking for the bond quote from Royal Skandia that any known future
withdrawals are advised.

It should be noted that all withdrawals are paid gross of any Isle of Man tax.



Further information is available from your Skandia business consultant.




www.royalskandia.com


Skandia International is the offshore and cross-border provider of investment solutions for the Skandia Group.

Calls may be monitored and recorded for training purposes and to avoid misunderstandings.

Royal Skandia Life Assurance Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: Skandia
House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0)1624 655 555 Fax: +44 (0)1624 611 715.
Authorised by the Isle of Man Insurance & Pensions Authority. Authorised and regulated by the Financial Services Authority for
business conducted in the UK. Some of the FSAs rules do not apply to non-UK based insurers. FSA Register number 142309.
www.fsa.gov.uk/pages/register
Skandia House, King Edward Road, Onchan, Isle of Man, IM99 3DJ , British Isles.
Tel: +44 (0)1624 655 456, Fax: +44 (0)1624 655 930.

Skandia International is the registered business name of Royal Skandia Life Assurance Limited (Singapore Branch).
Royal Skandia Life Assurance Limited (Singapore Branch), Level 25, North Tower, One Raffles Quay, Singapore 048583.
Phone: +65 6622 5406 Fax: +65 6622 5400
Registered in Singapore Number T08FC7158E. Authorised by the Monetary Authority of Singapore to conduct life assurance business
in Singapore. Member of the Life Insurance Association of Singapore. Member of the Singapore Finance Dispute Resolution Scheme.
Royal Skandia Life Assurance Limited a member of the Skandia Group of companies. Registered Office/Head Office: Skandia
House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles.

Royal Skandias Hong Kong office: 24th Floor, Henley Building, 5 Queens Road Central, Hong Kong.
Phone: +852 3552 5888 Fax: +852 3552 5889
E-mail: hongkong@royalskandia.com
Royal Skandia Life Assurance Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: Skandia
House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles.
Phone: +44 (0)1624 655 555 Fax: +44 (0)1624 611 715.
Authorised by the Isle of Man Insurance & Pensions Authority.


PDF International/INT10-527/October 2010