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Appendix 3

Terms
EEV European embedded value

SIPPs: self-invested personal pensions (SIPPs).

A SIPP is a tax efficient pensions account where you can hold
investments in shares, funds and cash (thus sheltering them
from tax within the account); with the added advantage of tax
relief on your contributions.

The SIPP market now exceeds £50 billion and is expected to
grow even further with the ability to self-invest protected rights.

A SIPP is a self-invested personal pension. It gives you
complete control over your pension savings and where they are
invested. SIPPs are sometimes referred to as wrappers,
because they can hold a range of pension investments tax free,
including cash. Despite the name, you don't have to select the
investments yourself – you can pay someone else to do it for
you.

As the stock market decreases so does SL's income. A lot of the charges they
make on their SIPPs and Wraps are based on the value of the funds they look
after. So if the market declines then so do their income.