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					        Draft Suitability Paragraphs – Friendly Bond (With-Profits)

This document is for use by Financial Advisers and is provided for reference and
information only.

The paragraphs below are for possible inclusion in a suitability letter for Financial
Advisers recommending Friendly Bond from The Children’s Mutual.

Paragraphs should be selected, adapted and personalised, as appropriate.
        Introduction

           We have discussed your circumstances and identified that your priority is
            to make long-term regular savings to obtain a lump sum in the future.

           Our discussions included the various long-term savings options available,
            including tax-efficient forms of investment. In order to meet your particular
            needs, I have recommended Friendly Bond - a With-Profits long-term
            savings product from The Children’s Mutual.

           We have agreed to regularly review this investment to help ensure that
            your objectives are achieved.
        Why The Children’s Mutual?

           The Children’s Mutual offers a range of savings plans. Children’s Mutual
            is a brand name of Tunbridge Wells Equitable Group with all the benefits
            of long standing heritage and considerable expertise in the savings
            market.

           The Children’s Mutual (as Tunbridge Wells Equitable) was voted a 5-star
            provider in the 2004 service awards given by Financial Adviser magazine
            in both the Life & Pensions and Investment categories. It was also
            awarded, by the same publication, the unique accolade of Company of the
            Year 2002 and 2003.
        Why Friendly Bond?

           We have discussed the various types of investment options available and
            the level of contribution you wish to make.

           We have discussed and agreed that a Long-Term With-Profits savings
            plan for a term of a fixed number of years would be the most suitable
            product for your needs.

           Friendly Bond is a Long-Term With-Profit savings plan offering the
            features you require. It also includes some life insurance cover on your
            life.

        Tax-free Benefits

           As you have not used your friendly society tax-free allowance, under this
            plan up to the first £25 a month or £270 a year can be saved in a fund
    which is free from Income and Capital Gains taxes. This applies to plans
    taken out under current legislation. The fund receives UK dividend income
    net of corporation tax, but neither the fund nor individual taxpayers can
    reclaim this tax.

   You should remember that these tax benefits are not guaranteed. They
    are subject to legislation, which applies only to UK residents, and may
    change in the future.

   As you intend to contribute (£XXX) (more than £25 a month or £270 a year) a month
    to the plan, The Children’s Mutual will issue two separate plans; one tax-
    free, the other taxable. The taxable fund is subject to income and capital
    gains taxes.

   As the plan is issued as a “qualifing” life assurance, any personal tax
    liability depends on the circumstances in which it pays out. When the plan
    pays out on reaching the end of the savings period, or on the earlier death
    of the person whose life is assured, no personal tax liability will arise.

The Risks Involved

   We have discussed the investment risks involved and your attitude toward
    the level of risk you are willing to take for this investment.

   You wish to adopt a cautious approach to risk on your investment and are
    attracted by the combination of a guaranteed minimum lump sum payout
    at the end of the savings period together with the opportunity for a bonus
    to be added each year. There is also the possibility of a further bonus
    being added when the plan ends.

   All payments are invested in the Tunbridge Wells Equitable Life Fund. This
    fund invests on a range of assets including company shares, bond, gilts
    and cash. The value of the fund can do down as well as up: such
    movements, which are outside the control of The Children’s Mutual, may
    affect the level of bonuses.

   Bonuses are not guaranteed and depend on factors such as the
    performance of the fund over the full savings period. However, once
    added yearly bonuses are guaranteed and cannot be reduced or taken
    away provided that all payments due have been made at the time the plan
    ends. A further final bonus may be added when the plan ends, but this is
    not guaranteed.

Access to Funds

   We have discussed and you accept that this type of plan requires a long-
    term commitment and is not designed to provide access to funds in the
    short-term.

   I have confirmed and you accept that money can only be withdrawn before
    the plan ends if it is cancelled and that this may mean you get back less
    than has been paid in, especially in the early years of the plan.
   I have provided you with a Key Features document and a personalised
    illustration. We have discussed the points covered by these documents
    including the commission/fee we will receive for arranging this investment
    for you.




                                                                     SP/FB (3/2005)

				
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