Child Trust Fund Terms and Conditions

Definitions

Throughout the plan documentation there are words and phrases that have special meanings and are shown in italics. Those meanings are given here.

"CTF regulations" means The Child Trust Funds Regulations 2004 as amended from time to time.

"Fund" means each separately identifiable account maintained by us.

"Fund switch" means the cancellation of units in one fund and their allocation instead to an alternative Fund or Funds. The Unit Account Value on the effective day of the fund switch will be the same before and after the fund switch.

"Life Assured" means the child as defined in the CTF regulations.

"Maturity Date" means the child’s 18th birthday.

"Opening Date" means the date from which payments can be accepted into the Plan.

"Plan" means the Forester Life Child Trust Fund that you have applied for and which is evidenced by this document and the Schedule.

"Schedule" means the personal information relating to the Plan

"Subscriber" means you and/or the child, your relatives and friends, local authorities and charities, and any other person.

"Subscription" means an amount in the currency of England which is gifted to the Plan from the Subscriber’s own resources.

"Subscription Year" means that period running from the child’s previous birthday to the day before the next birthday. For the year in which the Plan is opened the Subscription Year starts on the Opening Date and ends on the day before the child’s next birthday.

"Unit Account" on a given date means the units of the Funds that remain allocated to the Plan at the end of the previous day. Any units cancelled before that time for any reason described in this document do not form part of the Unit Account.

"Unit Account Value" effective on a given date means the sum of the units of each Fund of the Unit Account on that date multiplied by the respective unit price effective on that date.

"Voucher" means the HMRC (Her Majersty's Revenue & Customs) document, specifying the amount of the initial Government contribution, which is sent to the person who is entitled to child benefit in respect of the child.

"We" and "Us" mean Forester Life Limited. "Our" has a corresponding meaning.

"You" means the person who opens the Plan on behalf of the child, (or the child if aged 16 years or more) and who can give instructions as to how the money is invested.

"Your" has a corresponding meaning.

Subscriptions

  Subject to the CTF regulations, we will accept regular monthly and/or one off subscriptions to the Plan from you and any other subscriber at any time after the Plan is opened. The minimum subscription is £10. In addition, we will accept Government contributions to the Plan.

  The total amount subscribed to the Plan in any subscription year cannot exceed the maximum subscription limit as specified in the CTF regulations. We will accept subscriptions in date order up to the limit for the subscription year. Government contributions do not count towards the maximum Subscription limit.

  All subscriptions are gifts to the child and, once accepted into the Plan, cannot be repaid to the subscriber.

  Single subscriptions can be made by cheque or direct credit. Monthly subscriptions can be made by direct debit or standing order and are due on the Opening Date and monthly thereafter. The last monthly subscription(s) is/are payable on the subscription due date which precedes the maturity date or the earlier death of the Life Assured.

Optional Changes to Monthly Subscriptions

  Any subscriber may increase or decrease their monthly subscriptions at any time. The minimum monthly increase or decrease is £5 and the maximum is subject to the subscription limit. Monthly subscriptions may not be reduced below the minimum of £10 for a stakeholder Child Trust Fund account.

  Any subscriber may stop their monthly subscriptions at any time. Subscriptions from other subscribers will be unaffected. If monthly subscriptions are stopped they may be restarted at any time subject to the minimum and maximum limits.

  It may be necessary for us to reduce or cease monthly subscriptions from time to time to keep within the maximum subscription limit for the subscription year.

Automatic Increases on Monthly Subscriptions

  Monthly subscriptions from all subscribers will increase automatically on each anniversary of the opening date. The rate of each Automatic Increase in monthly subscriptions will be equal to the proportion by which the Retail Prices Index for the month six months before the month in which the anniversary falls exceeds the Index for the month eighteen months before the month in which the anniversary falls.

  The rate of the increase will be applied to the amount of the monthly subscription from each subscriber, payable on the due date immediately preceding the anniversary, allowing for any subscription changes attributable to Optional Changes. If the increase in the Index for a year is negative, no Automatic Increase will be made on the respective anniversary date and the monthly subscriptions will remain unchanged. If the Retail Prices Index is replaced or discontinued, we will decide which other suitable Index we should use for calculating Automatic Increases. Automatic Increases will be reduced or cancelled if HMRC requirements prevent an Automatic Increase from being made in full.

  Subscribers may request cancellation of the Automatic Increases for their subscriptions subject to 14 days’ written notice. Any subscriber who has previously requested cancellation of Automatic Increases may request their reinstatement at any time. The first Automatic Increase after reinstatement will be made on the following anniversary of the opening date, subject to 14 days written notice. The reinstatement will not take account of any Automatic Increases that would have been made previously but for their earlier cancellation.

Investment of Subscriptions

  Subscriptions will be invested in the Fund(s) selected for your Plan. The investment objectives of the Fund(s) are set out in the Brochure and Key Features information for our Child Trust Fund Account. Subject to meeting the conditions for a stakeholder Child Trust Fund account, we have discretion as to how the assets of each Fund are invested. Any income arising from the assets of a Fund will be added to the Fund.

  Each Fund is divided into units of equal value. We will increase or reduce the number of units into which a Fund is divided at our discretion, in which case we will transfer in to or out of the Fund an amount of money so that the value of each unit is unaffected.

  We will value each Fund each business day based on the closing prices of the assets for the previous business day, or such other time as we may decide. We will calculate the value of the assets in each Fund on a fair and reasonable basis and in accordance with the CTF regulations.

  We will calculate the value of a unit of each Fund at a valuation by dividing the total value of the Fund calculated at that day’s valuation by the total number of units of the Fund existing at that time. We will then set a price for a unit of the Fund for the purpose of allocating units to Plans and computing the benefits under Plans that are linked to the Fund. It will be equal to the value of a unit of the Fund rounded to the nearest one-tenth of a penny. Unit prices set at a valuation will be effective from the following day.

  We may open new Funds from time to time or close or combine existing Funds if we think this is appropriate. Where we open new Funds, and subject to any conditions or restrictions we may apply, you may request that we redirect future Subscriptions and/ or fund switch existing units, using the unit prices effective on the later of the date you select and the day after we receive your written instructions. Where we close or combine Funds we will redirect future subscriptions and/or fund switch existing units, as we decide are appropriate, using the unit prices on the effective date.

Allocation of Units to the Plan

  On each monthly subscription due date, we will allocate to the Plan units of the Fund(s) using the unit price or prices effective on that date. The total value of the units we allocate at that price will be equal to the monthly subscription due.

  If a monthly subscription is paid after its due date then we reserve the right to allocate units of each Fund selected at the unit price effective on the day on which we receive the monthly subscription rather than at the unit price effective on the subscription due date. If we have allocated units in respect of a monthly subscription that is not paid, those units will be cancelled.

  For each single subscription, Government contribution and Transfer received, we will allocate units to the Plan using the price effective on the later of the day we receive the payment and the opening date. The total value of the units we allocate at that price will be equal to the Subscription received.

  The number of units of a Fund allocated in respect of each payment, and each fund switch, will be rounded down to the next lower 1/100th of a unit.

  If the effective date for any unit cancellations under the Plan is the same day as the effective date for any unit allocations the allocations will take place first.

Lifestyling

  We will maintain a set of lifestyling rules in order to progressively reduce the investment volatility of the Plan as it approaches the maturity date. Unless you provide us with written instruction to opt out of lifestyling, or we provide earlier notification, lifestyling will commence from the child’s 13th birthday and continue until the maturity date.

  The lifestyling rules set out the criteria to be used for determining which Funds subscriptions should be allocated to, and which Funds should have units switched.  A Fund switch will be carried out using the unit prices effective on the day(s) stated in the lifestyling rules. We may amend the lifestyling rules from time to time.

Fees and Charges

  The charges that we will levy are set out in the Key Features information and include management and administration fees. In addition we will make a deduction from each Fund before the Fund is valued, to cover the costs of taxation, dealing charges and any expenses incurred in complying with our legal requirements.

Ownership

  The Plan may only be owned or held as a qualifying investment for a Child Trust Fund and the Plan investments shall be in the beneficial ownership of the child.

  Title to the Plan shall be vested in you and the schedule showing title to the Plan must be held by you. We will only act on your instructions for the management of the Plan and we will require your agreement (or suitable documentation or other evidence in the event of your death, incapacity or replacement by Court order) in a form acceptable to us, in order to replace you.

  When the child attains age 16, ownership will automatically be transferred to the child and from that time we will act on the instructions of the child.

  The Plan, or the rights conferred by the Plan or any share or interest in the Plan or rights respectively cannot be transferred to another person. The Plan cannot be used as security for a loan.

  The Plan, the rights conferred by the Plan and any share or interest in the Plan or rights respectively, are not capable of assignment or assignation (other than that the Plan may be transferred to another Child Trust Fund account) and the rights may vest in the personal representatives of a deceased child.

Annual Statements

  We will prepare and send to you, at least annually, a statement including valuation of the Plan and the amount of all subscriptions and Government contributions received into the Plan since the previous statement date.

Transfers

  On receipt of your written instructions and within any time period you have stipulated (but not less than 10 business days after receipt of Your instructions), we will transfer the Unit Account Value to another Child Trust Fund provider. No subscriptions will be payable on and after the date on which Your request becomes effective.  We do not make any charge for the transfer.

  Before the transfer can take place we will require written authority from the new provider and the return of this document, the schedule and any endorsements issued in connection with your Plan. We will issue you with a Statement of the Plan at the date of transfer. Transfer of the Unit Account Value will release us from all of our obligations under the Plan.

  You may transfer the amount of a Child Trust Fund held with another provider to us, which we will manage under these Terms and Conditions. The transfer must be made in a manner acceptable to us.

Benefits

  Benefits are payable only on the child reaching their 18th birthday or on earlier death or sufferance of a terminal illness.

  On survival of the Life Assured to the maturity date (and unless the Life Assured directs otherwise), we will pay the Unit Account Value to the Life Assured effective on that date.

  On the earlier death of the Life Assured, we will pay 101% of the Unit Account Value effective on the day after we receive notice and evidence, satisfactory to us, of that event. Payment will be made to the child’s legal personal representatives.

  In exceptional circumstances payment of benefit may be made in the event that a terminal illness is suffered by the Life Assured. Payment will only be made following receipt of written authority from the HMRC and in accordance with the CTF regulations.

  Before we make any payment, we will require the return of this document, the schedule and any endorsements issued in connection with the Plan, and evidence satisfactory to us of the entitlement to the benefits of the person or persons claiming payment. All payments are due in the currency of England at our Registered Office. Payment of benefit will release us from all of our obligations under the Plan.

Cancellation

  If you wish to cancel the Plan you must complete and return the Notice of your right to cancel, issued with this document, within 30 days from the date of receipt, and we will return your voucher to you.

  The Plan will not be opened until expiry of this cancellation period. Any subscriptions due to the Plan will be held in a non-interest bearing account until the Plan is opened or, if you exercise your cancellation right, until we receive instructions from you for the reinvestment or return to you of any subscriptions received.

Withdrawal and Termination

  Withdrawals may not be made from the Plan. All payments are locked in until the benefits become payable at the child’s 18th birthday or on earlier death, or sufferance of a terminal illness by, the Life Assured.

  We will inform you if, by reason of any failure to satisfy the provisions of the CTF regulations, the Plan has, or will become void. We will terminate the Plan if it becomes void under the CTF regulations and will pay to you and any other subscribers as applies the balance of the Unit Account Value reduced by such amount of tax and Government contributions including income and gains on those contributions, as we are obliged to account for under those Regulations. This will release us from all of our obligations under the Plan.

  The proceeds from the termination of the Plan or the partial surrender of the rights conferred by the Plan cannot be paid to the child whilst the Plan is held in the Child Trust Fund.

Disputes

  We take the concerns of our Planholders very seriously. If at anytime you do have any comments or wish to make a complaint, please write to the Customer Relations Officer at Foresters, Foresters House, Cromwell Avenue, Bromley, Kent, BR2 9BF.

  In the unlikely event that your complaint cannot be resolved to your satisfaction, you can write to the Financial Ombudsman Service (FOS), South Quay Plaza, 183, Marsh Wall, London, E14 9SR (telephone 0845 080 1800)

  The existence of the FOS or this complaints procedure does not prejudice your right to take legal action.

Data Protection

  We will record the personal information contained in your application on computer and use it to assess your application and to administer your policy. The information may be used for fraud prevention or money laundering prevention.

  We may share your information with organisations who are our business partners. We, or they may, contact you by mail, telephone, SMS, fax or e-mail to let you know about any goods, services or promotions, which may be of interest to you. If you do not wish to receive such information please write to our Data Protection Officer, Foresters House, Cromwell Avenue, Bromley BR2 9BF.

  By applying for this Plan you consent to our processing your sensitive personal data, such as health data, for the above purposes. You have a right to ask for a copy of your information (for which we may make a small charge) and to correct any inaccuracies. When you give us personal information about another person we will assume that they have appointed you to act for them and have consented to the processing of their personal data, including sensitive personal data.

General

  This document and the schedule contain all the Terms and Conditions of the Plan. We will not be liable for any condition, claim, statement, warranty or representation, whether express or implied, and whether collateral to this agreement or not, which differs from these Terms and Conditions.

  No term or condition in this document or the schedule can be modified or waived (unless this document expressly provides that it can be) except by an endorsement issued by us from our registered office and signed by one of our authorised officials.

  We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities under these Terms and Conditions is competent to carry out those functions and responsibilities.

  Any requests made in connection with these Terms and Conditions must be made in writing and delivered to us at our registered office at Foresters House, Cromwell Avenue, Bromley BR2 9BF. We will use certain procedures and forms when any change to Your Plan or any payment is to be made. We will only make changes when all normal procedures have been complied with.

  We will retain all the charges and deductions described in this document for our own use and benefit.

  Your Account complies with the HM Revenue & Customs requirements for a stakeholder Child Trust Fund. You authorise us to provide the HMRC with relevant information about Your Plan and its investments.

  We are authorised and regulated by the Financial Services Authority.

  We will send any notices or other correspondence to the address that you have given to us in your application form, or to a new permanent residential address provided you have advised us of it in writing.

  We will update our literature from time to time.

  We will always communicate with you using the English language.