Private and Confidential
Guy McConnell
BURN Limited
Sovereign Gate
18-20 Kew Road
Richmond
TW9 2NA								

Date: 31 July 2007

Dear Guy,

BURN Investment Scheme

I have received details of your pension arrangements with Aegon and Axa and confirm your options at this time:

Aegon – Rmg Connect

Your pension consists entirely of contributions funded by your employer and (not confirmed) your personal payments whilst you were employed by Rmg Connect. Your investments are managed by Aegon and the performance of underlying investments dictates that amount of income payable to you on retirement. Those investments are held in a personal pension scheme. 

Your investments may be transferred to your SSAS or left in the Rmg scheme. The decision you must take should consider whether you can achieve better returns through another investment route – e.g. commercial premises. If you decide to transfer, your investments will be paid into the Trustee bank account as cash and you may then invest those funds as you see fit. I cannot advise whether from an investment perspective it would be more beneficial to keep investments with Aegon at this time, but you may wish to take independent financial advice on the timing of the transfer bearing in mind recent stock market falls. 

If your funds are left with Aegon they will continue to be managed by them until such time that you transfer your benefits out, or retire and take the cash lump sum and pension. It should be noted that there is no significant difference in calculating the lump sum and pension under a personal pension versus your self administered scheme. 

To transfer, you will need to complete and sign the attached paperwork and return this to me. You will also need to insert the pension scheme bank details on the paperwork; the transfer payment should be paid to the pension scheme account where you hold the chequebook. The transfer value amounts to £21,648.03, I am advised that there is no transfer penalty. 

AXA Sun Life Personal Pension 

This policy operates on an identical basis as your pension with Aegon, the only difference is that the investment manager is Axa Sun Life. Your pension transfer options are therefore the same. 

Given that the investment management of this policy differs, the spread and nature of the funds where your investments are held differs also. The value of your investments with Axa amounts to £26,950.18; however the transfer value (which is the cash equivalent sum that would be paid to your SSAS) amounts to £25,630.43. You would therefore suffer a loss of £1319.75 if you transfer before your retirement date. This penalty may reduce in future years nearer to your retirement date. 

If you wish to transfer you will need to complete the highlighted paperwork and return it to me. I cannot give you investment advice as to whether you should or should not transfer, only the options available to you.  

I have written on similar lines to Julie and below is an extract of my letter to her regarding the matter of pension scheme bank accounts. 

Bank Accounts

Deposit accounts are an unregulated activity for the purposes of the FSA and I can therefore advise in this regard. As stated in my previous email many banks do not offer internet accounts to the corporate/pension market and having spoken with Landisbank (IceSave) I confirm this account is only available to personal customers. Of the banks who offer good interest rates, Anglo Irish Bank are quite strong with a rate of 6.09%, Alliance & Leicester offer 6.03% on their offshore pension reserve account. It would appear from the information provided to us that these are the best instant/7-day notice accounts available at this time for pension scheme accounts. These two companies have historically been used by many small scheme clients for deposit accounts and they appear to continue as the strongest at this time. 

We are arranging a tie up with Bank of Scotland to allow clients to open a cheque account with them through a link via our website on a simplified basis. However, this will not be ready until the autumn. May I therefore suggest that you use your current bankers for the time being; if you have any problems with them, I am happy to assist where possible. 

I am happy to come by next week to run through these pension transfers with the three of you, please let me know if this is preferable. Alternatively, you can reach me in the Office or on my mobile – 0776 9685652. 

Kind regards

Yours sincerely

Gavin McCloskey
For Pension Practitioner .Com