Its aims• To provide a tax-efficient method ofsaving for a child (in accordance withShariah criteria) by taking advantage of the Government’s Child Trust Fund (CTF) scheme.• To provide growth over the savings periodof the account, and produce a tax-freelump sum payable to the child at age 18.Your investment• You can open a Shariah Baby Bond®

with the initial contribution the Governmentwill make for your child – the person who is claiming Child Benefit for them willautomatically receive a voucher.• You, and others, can add to thegovernment contribution, but limits apply(see “How much can be paid in to aShariah Baby Bond®?”). You can pay ineither regular monthly payments or one ormore lump sums, or a combination of both.Risk factors• The value of investments held for theShariah Baby Bond® is not guaranteed,and can move up and down. This could bedue, for example, to market fluctuations, orto changes in exchange rates if anyinvestments in foreign companies are held.Such movements are outside our control.• When the Shariah Baby Bond® iscashed-in at age 18, the child may getback less than has been paid in, because:– investment growth could be lower than

originally anticipated

– the tax treatment of CTF accounts ortheir underlying investments (or both)could change.

• The Shariah Baby Bond® belongs to thechild and, other than in exceptionalcircumstances (see Condition 17 of theTerms & Conditions – “Withdrawals”),nobody else can receive any money from it.The money is locked in and the childcannot withdraw any money beforetheir 18th birthday.• Each payment into the Shariah BabyBond® is, legally, a gift to the child, andbecomes the child’s property as soon as itis paid in. The payer cannot change theirmind later on and have their money back.QUESTIONS AND ANSWERSWhat is a CTF account?• A CTF account is a special type of savingsplan that allows you, and others, to save fora child until they reach age 18. All growth inthe value of the account is free from incometax and capital gains tax, and there is nopersonal tax for the child to pay at age 18.• There are two types of CTF account –Stakeholder and Non-Stakeholder. ShariahBaby Bond® is a Stakeholder CTF account.Each child can have only one type of CTFaccount at any time.• There are no restrictions on what moneyfrom a CTF account – either Stakeholder or Non-Stakeholder – can be used for atage 18.• Every child born in the United Kingdom

Key Features of The Children’s Mutual ShariahBaby Bond® Stakeholder Child Trust Fund account(including Terms & Conditions)

This document explains the key features of the Shariah Baby Bond® Stakeholder Child Trust Fund (CTF) account, and contains our CTF Terms & Conditions. It should be read inconjunction with the relevant brochure. Please read it carefully, and keep it in a safe place.

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on or after 1 September 2002 and forwhom Child Benefit is payable, is entitled to a CTF account.• Only one person at a time can giveinstructions to the CTF Account Managerabout how payments into a Shariah BabyBond® are invested. This person is called theRegistered Contact. Please see the Terms &Conditions for a definition of this term.• A Stakeholder CTF account must meetcertain requirements set by government, in particular:– the account must include at least some

exposure to equities (company shares).However, you should remember that theprices of shares, and the income fromthem, can go down as well as up.

– the underlying investments mustrepresent a mixture of assets which is both appropriate and suitable for long-term savings for a child.

– any underlying investments held directly(rather than indirectly – for examplethrough a collective investment scheme)for the CTF account must not be, or include:

• investment trust shares or securities;• collective investment scheme shares,

if these are dual-priced;• with-profits endowment policies or

rights in contracts of insurance in a with-profits fund;

• rights in contracts of insurance whose valueis linked to shares in a dual-priced fund;

• company shares;• company securities whose value could

fall below 80% of their purchase price;• cash in bank or building society deposit

or share accounts whose interest rate ismore than 1% below Bank of Englandbase rate;

• depositary interests in any of the above.

– it must be possible, starting no later thanthe child’s 13th birthday, to graduallymove the underlying investments intolower risk assets to reduce the chance oflosses. This is called ‘lifestyling’.

– the minimum payment amount which theCTF account manager will accept mustnot be more than £10.

– the total regular charges which can bemade by the CTF account managermust not be more than 1.5% a year.

• Although Stakeholder CTF accountsmust meet certain governmentrequirements, this does not mean they willbe suitable for everyone, nor that they areguaranteed to perform well.• A Non–Stakeholder CTF account canoffer a wider range of savings choices,including (either held indirectly or directly) all those listed above as not being availableto be held directly in a Stakeholder CTFaccount. The CTF account manager canoffer lifestyling, but this is not compulsory.There is no limit on how much the CTFaccount manager can charge for Non-Stakeholder CTF accounts; it could be more or less than 1.5% a year.How frequently are Shariah Baby Bond®

Stakeholder CTF accounts valued?• We value all Shariah Baby Bond®

accounts daily. We can change thevaluation frequency, but not more oftenthan once every 12 months. We will tell theRegistered Contact in advance if thevaluation frequency will change.How can money be paid in to a Shariah Baby Bond®?• We accept payment by any of thefollowing:– Direct Debit; Standing Order;

Direct Credit; Cheque– All payments must be made payable to

The Children’s Mutual.

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How much can be paid in to a Shariah Baby Bond®?• Except for the first year, which starts whenthe Shariah Baby Bond® is opened and endsthe day before the child’s next birthday, eachcontribution year starts on the child’s birthdayand ends the day before their next birthday.• The maximum that can be paid in to aShariah Baby Bond® in each contributionyear (excluding any governmentcontributions) is £1,200, equivalent to £100a month. Anyone who wishes to helptowards your child’s financial future can paymoney in, subject to this overall limit.Where are the payments invested?• Shariah Baby Bond® invests initially inaccumulation shares in the SICAV (Societéd’Investissement à Capital Variable) fundbelow. This is an open-ended InvestmentCompany with Variable Capital.• Accumulation shares do not pay out any income, but instead reinvest itautomatically, so increasing their value. Thisis reflected in the pricing of the shares.• Once lifestyling starts, Shariah BabyBond® invests partly in the SICAV fund, andpartly in lower risk assets. See Condition 8of the Terms & Conditions – “Lifestyling” –for an explanation of how lifestyling works.How are the payments invested?• Until the Shariah Baby Bond® has beenopened, no money can be paid in – pleasesee “Can I change my mind, and cananyone paying in to the Shariah BabyBond® change their mind?”• Once the Shariah Baby Bond® has beenopened, and until lifestyling starts, we useeach payment to buy shares in the SICAVfund at the price applicable on the firstvaluation point after we receive the payment.Please see the Terms & Conditions forinformation about valuation points.• Please see Condition 8.4 of the Terms &

Conditions for an explanation of how weinvest money paid in during the period thatlifestyling is in progress.• We will not issue any contract notes orcertificates of title to the shares boughtwith the payment(s). All shares areregistered in the name of the CTF AccountManager. Please see the Terms &Conditions for a definition of this term.What might the child get back?• The table overleaf gives examples ofwhat the child might get back at age 18,disregarding the effects of lifestyling fromage 13. Most CTF account managers usethe same rates of growth for investments,but their charges may vary (subject to amaximum of 1.5% of the account’s valueeach year for stakeholder CTF accounts).The Financial Services Authority’s rates ofgrowth for CTF accounts are 5% (‘thelower rate’), 7% (‘the middle rate’) and 9%(‘the higher rate’) a year. The figures shownare only examples and are not guaranteed– they are not minimum or maximumamounts. The child could get back more orless than this. Don’t forget that inflationwould reduce what could be bought in thefuture with the amounts shown.Can I change the type of CTF account?• The Registered Contact can change aShariah Baby Bond® Stakeholder CTFaccount to a Non-Stakeholder CTF accountoffered by us or another CTF accountmanager at any time. See Condition 14 ofthe Terms & Conditions – “Transfer to aNon-Stakeholder CTF account”.Can regular monthly payments bestopped whenever the payer wishes?• Yes. All money already paid in to theShariah Baby Bond® will remain investeduntil the child reaches age 18.• The payer can start making regularmonthly payments again at any time,subject to the contribution limits.

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What are the charges?• We charge 1.5% of the value of theShariah Baby Bond® each year formanaging it and investing the money. Wecalculate charges daily, but only deductthem once a year. For example, if theShariah Baby Bond® is valued at £800throughout the year, this means we deduct£12 that year. If the value is £2,400throughout the year, we deduct £36 thatyear. There are no other regular charges.We take the charges from capital.• We have the right to alter the chargesthat apply at any time. The RegisteredContact will receive notice in writing of any such change at least 90 days beforethe new charges apply. Under currentgovernment regulations, the overall chargefor Shariah Baby Bond® cannot be morethan 1.5% a year.How will charges and expenses affectthe investment?• The tables opposite give examples ofhow the deductions and charges wouldaffect an investment comprising only theinitial government contribution of £250, andan investment combining this contributionwith a regular monthly payment of £25. Theexamples in these tables assume that theinvestment grows at 7% a year (theFinancial Services Authority’s middle rate fortax-efficient products). The figures shownare not guaranteed, and are only shown inorder to demonstrate the effect of chargesand expenses on the investment. Thefigures in the column headed “What thevalue of the account might be” in each of

these tables represent the value that wouldbe available for transfer of the CTF account(for example to a different CTF accountmanager) at the end of each year otherthan year 18, when they represent the valuethe child could get back.Have I been given any advice, and ifso what is the cost?• Nobody has given you any advice aboutShariah Baby Bond®, only information.Therefore, we will not pay anyone inconnection with your application. How does the child withdraw theirmoney?• Shortly before their 18th birthday we willsend them a form to complete, together withinformation about any other investmentproducts we may be offering at the time, andwhich could be suitable for their demandsand needs. Condition 17 of the Terms &Conditions – “Withdrawals” explains how werelease the money if they decide to cash-in.What about tax?• Under current regulations, all investmentsheld in a Shariah Baby Bond® are free fromincome and capital gains taxes for UKresidents, and the child will have no personaltax liability on their 18th birthday providedthey are then resident in the UK. Tax couldbe payable on any income earned or gainsmade by any investments still held in thechild’s name after their 18th birthday, or aftertheir death if this happens before age 18. • The current tax treatment of ShariahBaby Bond® is not guaranteed to continuein future.

Type of payment What the child could get back at age 18 if investments grew at:5% a year 7% a year 9% a year

Initial Government contribution £821 £1,090 £1,440of £250 at birth plus a further £250 at age 7Initial Government contributionof £250 at birth plus a further £8,260 £10,100 £12,400£250 at age 7 plus voluntary regularpayments of £25 a month

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• If at any time the Shariah Baby Bond®

fails to satisfy the CTF Regulations,investments held for it will no longer be freefrom tax. Please see Condition 3 –“Stakeholder CTF accounts” for moreinformation.Can I change my mind, and cananyone paying in to the Shariah BabyBond® change their mind?• If for any reason you decide, in the first14 days after we receive all the necessaryinformation to enable us to open a ShariahBaby Bond® for your child, that you do notwant to go ahead with us, you have theright to change your mind. If you do, youmust tell us of your decision by writing tous at the office address shown under“How to contact us”. We are not allowedto open the Shariah Baby Bond® until this

Effect of deductions for charges – initial Government contribution of £250, plus afurther £250 at age 7At end of year Investment to date

1 £250 £3 £2633 £250 £13 £2925 £250 £25 £32510 £500 £81 £71615 £500 £187 £93118 £500 £279 £1,090

The last line of the table above shows that over 18 years the effect of the total charges and expenses could amount to £279.Putting it another way, this would have the effect of bringing investment growth from 7.0% a year down to 5.4% a year.Inflation would reduce what could be bought with the eventual payout.

Effect of deductions for charges – initial Government contribution of £250, plus afurther £250 at age 7 and also voluntary regular payments of £25 a month

At end of year Investment to date

1 £550 £7 £5723 £1,150 £37 £1,2605 £1,750 £96 £2,04010 £3,500 £424 £4,67015 £5,000 £1,130 £7,80018 £5,900 £1,840 £10,100

The last line of the table above shows that over 18 years the effect of the total charges and expenses could amount to£1,840. Putting it another way, this would have the effect of bringing investment growth from 7.0% a year down to 5.4% ayear. Inflation would reduce what could be bought with the eventual payout.

period has ended. If you have not told usby the end of this period that you havechanged your mind, and provided we havereceived your voucher, we will open theShariah Baby Bond®.• Nobody can pay any money into theShariah Baby Bond® until it is opened.Therefore, if we receive a payment beforethe Shariah Baby Bond® is opened, we willpay the money into an interest bearingclient money account in our name with anappropriate institution authorised under theFinancial Services & Markets Act, 2000. Wewill keep it in this account until the ShariahBaby Bond® is open, or until you tell us thatyou have changed your mind, if thishappens sooner. We will not pay anyinterest on the money while it is held in theclient money account.

Effect of deductionsto date

What the value ofthe account might be

Effect of deductionsto date

What the value ofthe account might be

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• Once the Shariah Baby Bond® has beenopened, any money paid into it belongslegally to the child immediately it is paid in,so we cannot give it back to the payer ifthey should change their mind.How will I and the child know howtheir Shariah Baby Bond® is doing?• The child, care of the RegisteredContact, will receive a statement each year showing:– what the Shariah Baby Bond® was worth

when the previous statement wasissued;

– how much has been paid in, and bywhom, during the year;

– what charges have been taken outduring the year;

– what the Shariah Baby Bond® was worthwhen the statement was prepared.

• At 16 the child can become theRegistered Contact and will receivestatements direct.How to contact us• We can answer your questions, butcannot give you financial advice, onlyinformation about our products. If youneed advice, but don’t have an adviser, wecan give you details of where to go to findindependent financial advice. You mayhave to meet the cost of any advice given.• If you have any questions at any time,you can phone us, or send an email, oryou can write to us.Call us on 0845 608 0045 Monday to Friday 8.00 am to 8.00 pm;Saturday 9.00 am to 1.00 pm.We will record calls for training or security purposes. 24-hour answerphonenumber – 0845 080 1800.Email address –ctf@thechildrensmutual.co.ukOffice address – The Children’s Mutual,PO Box 2067, Gloucester GL4 3YU.

OTHER INFORMATION:How to complain• A copy of our complaints procedure isavailable on request.• If you ever need to complain, first eithertelephone us on the number shownabove, or write to us at the address above.If you’re not satisfied with our response,you can complain to:Financial Ombudsman ServiceSouth Quay Plaza, 183 Marsh Wall,London, E14 9SR. (Tel: 0845 080 1800.)Complaining to the Ombudsman does notaffect your legal rights.Law and language• All our dealings with you (and/or theRegistered Contact), both before and afterthe Shariah Baby Bond® is set up, aregoverned by the law of England, and allcommunication will be in English. A court inEngland or Wales will decide on any dispute.• The information contained in thisdocument is provided in respect ofchildren who are United Kingdom residents(including children of Crown employeesserving overseas) only.Compensation• We are covered by the Financial ServicesCompensation Scheme (FSCS). The childmay be entitled to compensation from the scheme if we cannot meet ourobligations. This depends on the type ofbusiness and the circumstances of theclaim. Most types of investment businessare covered for 100% of the first £30,000and 90% of the next £20,000 so themaximum compensation is £48,000.• Further information about compensationscheme arrangements is available from theFSCS. For information about the Scheme,call 020 7892 7300.

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Simplified Prospectus

As Shariah Baby Bond® is a stakeholder CTF account, money paid in is invested overmost of the period of the plan in a fund that holds company shares. The table belowcontains important information about this fund. The information is taken from the fundmanager’s ‘Simplified Prospectus’, which is a document required by European regulations,and therefore includes some details of a technical nature. We have tried to explain, insimple terms, what these mean – see the third column of the table. You can ask us toprovide you with a copy of either the fund manager’s Simplified Prospectus, or their fullProspectus, at any time; however, you should be aware that both documents are complexand include information that does not apply to investing through Shariah Baby Bond®.

Important information about the investment fund

SICAV Fund Scottish Widows Islamic Global Equity Fund

This is one of the funds that we offerfor investment through one or more ofour plans. This is currently the only‘sub-fund’ within the SICAV.

SICAV Scottish Widows InvestmentPartnership Islamic SICAV

This is the overall fund which currentlyonly includes the Islamic Global EquityFund. ‘SICAV’ is an abbreviation for‘Societe d’Investissement à CapitalVariable’.

SICAV Manager Scottish Widows InvestmentPartnership Limited, 10 Fleet Place,London EC4M 7RH

This is the company that manages the fund.

Management Company

Scottish Widows InvestmentPartnership Limited’s main business is providing investment managementand advice.

The role of the investment managerincludes the day-to-day operation ofthe SICAV, such as managing itsinvestments, buying and selling sharesand pricing the shares.

Place of Incorporation

Luxembourg These are the countries whose lawsapply to the operation of the fund.

Custodian State Street Bank Luxembourg SA, 49, Avenue J F Kennedy, L–1855Luxembourg

The role of the Custodian is to act as the appointed caretaker of thefund’s assets.

Auditor Pricewaterhouse Coopers, 400, Route d’Esch, L-1014 Luxembourg

The role of the Auditor is to ensure thatthe fund is operated in accordancewith all relevant laws and regulations.

Fund launch date 21 November 2005 This is the date the SICAV actuallystarted to accept money from investors.

This is the date the particular type ofshares offered for investment throughone or more of our plans (‘accumulationshares’) were first offered to investors.

Share class launchdate

19 December 2005

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InvestmentObjective andInvestment Policy

To give long-term capital growth by investing in aportfolio of equities issued by companies fromaround the world.

Investments will usually only be made in companiesthat are listed within the FTSE Global Islamic Index.Investments outside of this index may be approvedby the Shariah Advisory Board from time to time.

This is the outcome thefund manager aims toproduce for investors,and how it tries toachieve it.

Risk factors • The value of shares and income from them is notguaranteed and can fall as well as rise due to stockmarket and currency movements. Past performanceis not a guide to future performance and when theinvestment is sold (the money is withdrawn from theaccount) the child may get back less than wasoriginally invested. Inflation will, over time, reduce thespending power of the investments.

• The rates of, and any relief from, taxation maychange over time.

• Due to the investment objective and policy of thefund it will not be invested in interest-bearingsecurities, warrants or options, futures and swaps.As a result the managers’ opportunity to makereturns that might otherwise have been available tothe fund is reduced.

• In the event that the fund is issued with warrantsas a result of it holding equities, it will dispose of suchwarrants as soon as practical, which may lead to thefund gaining a disadvantageous price on the disposal.

• The fund will not be able to hedge against foreignexchange risk, thus increasing the currency risk.

• The investment objective and policy of the fundlimit the investments of the fund to those that arelisted within one specific index. This means that thefund’s investments may be concentrated in a lessernumber of equities than a comparable fund of thesame size.

Details of all risks can be found in the fullProspectus of the fund.

Cleansing of InterestCash received

Where the Fund wishes to invest in a companywhich satisfies the Islamic Investment Guidelinesbut either derives some of its income or partlyfinances its operations from non-Islamicallycompatible debt, then it must cleanse all cashreceived by allocating a certain portion to charities.

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Charges AMC 1.5% ‘AMC’ stands for Annual ManagementCharge – this is the yearly charge toeach investor, and is applied to theoverall value of that investor’s holdingin the fund for the year. The yearlycharge we pass on to investors forshares held for Shariah Baby Bond®

cannot be more than 1.5% undercurrent CTF regulations.

Commissionexpenses

The level of equity securities (company shares) trading on the fundis determined by fund managementdecisions and the main impact on thefund is the buying and selling values of the trades. The buying and sellingvalues of securities trades always meet best execution regulations.Commissions are paid to brokers forthese trades. The Fund Manager isauthorised to enter into commissionsharing arrangements with third partiesregarding the use of dealingcommission to purchase/receivegoods and/or services that relate tothe execution of trades or the provisionof research.

Commission is paid by the fund.

Sales Charge The fund manager is entitled to apply a sales charge. This is done to preventexisting shareholders being adverselyaffected by exceptional dealing costs.

There is no difference between thecosts of buying and selling shares inthe fund. This means that theexpenses of buying and selling theunderlying assets of the fund (companyshares and other investments) are metby the fund, which could affect thefund price. This is known as ‘dilution’.To attempt to reduce the effects ofdilution the ACD may charge a ‘salescharge’ on the purchase of shares.

Fund tax The fund is liable to certain taxesunder Luxembourg law.

Investors with shares in the fund heldwithin Shariah Baby Bond® do notsuffer any personal tax or any growthin the value of their holdings. If theaccount holder is not a UK residentwhen they withdraw money fromShariah Baby Bond® (at or after age18), they may have to pay tax on thatpart of the payout which arises frominterest earned while they were notresident in the UK.

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TER 1.5% ‘TER’ stands for Total Expense Ratio,which is the yearly operating expensesof the fund. This figure helps whencomparing the operating expenses ofdifferent funds. The TER includes, forexample, the AMC and any custodian,registration and audit fees.

PTR 0% ‘PTR’ stands for Portfolio TurnoverRate. This provides an indication ofhow much the fund manager changesthe fund’s investments in a year. Thereis a cost involved in the buying andselling of these investments. Thehigher the PTR, the more changeshave been made, and the higher thecost of dealing paid for by the fundhas been. However, activemanagement may mean thatchanging investments more frequentlyincreases the performance of the fundsufficiently to outweigh the costs.

Share class currencydenomination

UK Sterling All transactions undertaken by theshare class are expressed in £ssterling.

Income accumulated Income accumulated will be investedwithin the fund thereby increasing theprice of the shares.

Most funds offer two types of shares –‘income shares’, which actually payout a regular amount to investors, and‘accumulation shares’, for which allincome earned is automaticallyreinvested to increase the share price.All shares offered for investmentthrough The Children’s Mutual areaccumulation shares.

Price publication The price of shares will normally beavailable on request.

You can track the value of the plan bychecking the price of shareswhenever you wish.

Scottish WidowsInvestmentPartnership IslamicSICAV– other sub-funds

At present there are no other subfunds. Details are included in the fundmanager’s Simplified Prospectus – acopy is available on request.

We only offer the Islamic Global Equity Fund for investment throughShariah Baby Bond®.

Date of SimplifiedProspectus

March 2006 This is the date the fund manager’sSimplified Prospectus was last updated.

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1. Definitions1.1 In these Terms and Conditions, thefollowing words have the meanings given below(unless the context in which they are usedrequires otherwise):

The Children’s Mutual is a trading name ofthe Tunbridge Wells Equitable Group. TheGroup comprises Tunbridge Wells EquitableFriendly Society Limited and Tunbridge WellsEquitable Investments Company Limited.

Child Trust Fund (CTF) the Child Trust Fund savings and investment scheme established bythe Government under the Child Trust FundsAct, 2004.

Contribution Year the first contribution yearstarts on the day the CTF account is openedand ends on the day before the child’s nextbirthday; each subsequent contribution yearstarts on the child’s birthday and ends on theday before their next birthday.

CTF Account Manager Tunbridge WellsEquitable Investments Company Limited(TWEICL), trading as The Children’s Mutual.

Dealing Day means Monday to Friday 9.00 amto 6.00 pm (Central European Time) (except forbank holidays in Luxembourg and other days atthe Fund Manager’s discretion) being a day onwhich the Luxembourg Banks are open fortrading and or any other day which the FundManager in its discretion may decide.

Depositary the appointed caretaker of thefund’s assets.

FSA rules the rules published, from time totime, by the Financial Services Authority (FSA).

HMRC Her Majesty’s Revenue & Customs

Investment Manager the Investment Manageris Scottish Widows Investment PartnershipLimited; registered office: 10 Fleet Place,London EC4M 7RH. The Investment Manager’sresponsibilities include the day-to-day operation

of the SICAV, such as managing itsinvestments, buying and selling shares andpricing the shares.

The Registered Contact the person who is authorised to control the Shariah Baby Bond®

and give instructions as to how the money is to be invested.

The Regulations The Child Trust Funds Regulations 2004.

SICAV SWIP Islamic SICAV. The SICAV is anopen-ended investment company incorporatedunder the laws of the Grand Duchy ofLuxembourg. It is an ‘umbrella company’ which means it is made up of a number ofdifferent funds, each of which has its owninvestment objective.

SICAV fund SWIP Islamic Global Equity Fundwhich is the sub-fund of the SICAV which weoffer for investment for the Shariah Baby Bond®

Stakeholder CTF account.

Stakeholder CTF account a CTF accountwhich meets the Government’s requirements fora Stakeholder CTF account. A child may nothave both a Stakeholder CTF account and aNon-Stakeholder CTF account at the same time.

Valuation Point the price of shares iscalculated at 9.00 am Central European Timeeach dealing day, or such other time of day asthe Investment Manager may decide; this is thevaluation point. Once the Shariah Baby Bond®

is open, the price that will be used for anypurchase or encashment of shares for theShariah Baby Bond® is the price on the firstvaluation point after the CTF Account Managerreceives the payment (where relevant)instruction, and all required paperwork. Inrespect of the voucher, the instruction is thatfrom HMRC to the CTF Account Manager tocredit the Shariah Baby Bond® with the initialGovernment payment; there could be a delayof up to several weeks before receipt of this

Terms & ConditionsThe following pages explain the Terms & Conditions of The Children’s MutualShariah Baby Bond® Stakeholder Child Trust Fund (CTF) account.

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instruction. The address to which all instructionsby the Registered Contact must be sent is: The Children’s Mutual, PO Box 2067,Gloucester GL4 3YU; telephone 0845 608 0045.

Void account a Shariah Baby Bond® accountwhich breaches (does not satisfy) theRegulations, and which HMRC instructs theCTF Account Manager to cancel.

The voucher HMRC will issue a voucherautomatically to the person who is entitled toreceive Child Benefit for the child.

We The Children’s Mutual.

You depending on the context, either a personwho has received a voucher to open a CTFaccount for a child, or the Registered Contact.In respect of money paid into the Shariah BabyBond®, the term ‘you’ also includes any personwho makes such payment(s).

2. The CTF Account Manager2.1 The CTF Account Manager is TunbridgeWells Equitable Investments Company Limited(TWEICL), Brockbourne House, 77 MountEphraim, Tunbridge Wells, Kent TN4 8GN,which is an approved CTF account managerunder the Child Trust Funds Regulations 2004.TWEICL is a wholly owned subsidiary ofTunbridge Wells Equitable Friendly SocietyLimited. It is authorised and regulated by theFinancial Services Authority and a member ofthe Financial Ombudsman Service.

2.2 These Terms and Conditions explain howTWEICL conducts its CTF account business inaccordance with the Regulations.

2.3 An agreement to set up a CTF accountunder these Terms & Conditions will be an‘Initial Service Agreement’ for the purposes ofthe European Distance Marketing Directive2002. This means that, from outset, the CTFAccount Manager is authorised to carry outregular and/or repeated actions (for examplecollecting, receiving and investing paymentsinto the CTF account) in accordance with theRegistered Contact’s instructions. Under suchan agreement no cancellation rights attach toany payment received other than the first.

2.4 In selecting which fund to offer as theunderlying investment vehicle for Shariah BabyBond®, TWEICL took into account the social,ethical and environmental implications of thegeneral type and mix of equities usuallyselected by the Manager, as well as theirpotential for producing capital growth.

2.5 If, at any time, TWEICL ceases to beauthorised as a CTF account manager, it willgive the Registered Contact at least onecalendar month’s notice of this in writing. TheRegistered Contact will then need to transferthe CTF account to another CTF accountmanager, as described in Condition 16 below(“Transfer to another CTF account manager”).

3. Stakeholder CTF accounts3.1 The Shariah Baby Bond® offered by theCTF Account Manager satisfies all theGovernment’s requirements for StakeholderCTF accounts, as set out in the Regulations.See “What is a CTF account?” in the KeyFeatures section above for the maincharacteristics of a Stakeholder CTF account.

3.2 We will endeavour to ensure that ShariahBaby Bond® continues to satisfy the Regulations,but this cannot be guaranteed. In the event that itshould cease to do so, we will notify theRegistered Contact of this at the earliestopportunity. The Registered Contact may theneither switch the account to a Non-StakeholderCTF account (see Condition 14 below – “Transferto a Non-Stakeholder CTF account”), or transferit to another authorised CTF account managerthat does offer a Stakeholder CTF account.

4. Starting a Shariah Baby Bond®

Stakeholder CTF account4.1 The person who receives the voucher mustapply to start a Shariah Baby Bond® by (1)submitting the voucher to us, and (2)completing an application. For informationabout when the Shariah Baby Bond® will startsee “How are the payments invested?” and“Can I change my mind, and can anyonepaying in to the Shariah Baby Bond® changetheir mind?” in the Key Features section above.

4.2 Either this person, or somebody else with

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parental responsibility for the child, mustbecome the Registered Contact (see Condition5 “The Registered Contact” below).

4.3 We will also start a Shariah Baby Bond® fora child if we are instructed to do so by HMRC.

5. The Registered Contact5.1 Only one person may be the RegisteredContact at any time.

5.2 Until the child’s 16th birthday, theRegistered Contact must be a person who hasparental responsibility for the child; this willnormally be a parent or guardian of the child.

5.3 At any time before the child’s 16th birthdaythe current Registered Contact may give uptheir position and, subject to their agreement,another person who has parental responsibilityfor the child may become the RegisteredContact in their place. Both the new RegisteredContact and (other than in exceptionalcircumstances – for example on death) thecurrent Registered Contact must complete theform and declaration we provide.

5.4 The child can become the RegisteredContact on their 16th birthday.

6. Ownership6.1 The Shariah Baby Bond® belongs to thechild as beneficial owner. Beneficial ownership may not be transferred to any other person or organisation.

6.2 All fund shares and other investmentsbought for the Shariah Baby Bond® areregistered in the name of the CTF AccountManager, which also holds all share certificatesand other title documents. Beneficial ownershipof the investments may not be transferred toany other person or organisation, other than theCTF Account Manager.

6.3 The child’s interest in any fund shares orother investments held for the Shariah BabyBond® may only be disposed of through theCTF Account Manager.

6.4 Neither the Shariah Baby Bond®, nor anyinvestment held for it, may be used as securityfor a loan.

6.5 The CTF Account Manager cannot lend theShariah Baby Bond® or any fund shares orother investments held for it to anyone else, orborrow against the security of any investmentsor their title documents.

7. Payments exceeding the voluntarycontribution limit7.1 If any payment we receive or are due torequest by Direct Debit would, when added tothe amounts already paid in during thecontribution year, be more than the £1,200contribution limit allowed, we will:

– if the payment is due to be collected by DirectDebit, reduce the request to such amount as,when paid in to the Shariah Baby Bond®, willnot exceed the contribution limit. We will thenmake no further collections under any DirectDebit Instruction during the contribution year;

– if the payment is made by Standing Order orDirect Credit, retain as much of it as, whenadded to the amounts referred to above,equals the contribution limit, and return thebalance of the payment to the payer’s bankor building society;

– if the payment is made by cheque, return the cheque (uncashed) to the payer or, if we cannot identify the payer, to theRegistered Contact.

8. Lifestyling8.1 Lifestyling means switching the ShariahBaby Bond® investments from higher risk tolower risk assets over a period of time. We dothis in order to limit the chance of the accountlosing value as the child’s 18th birthdayapproaches.

8.2 Unless the Registered Contact has told usotherwise, we will start the lifestyling process onthe valuation point on the child’s 13th birthday,or on the next valuation point after that if thebirthday is not a working day. On that date, we will cash-in the number of fund shares thevalue of which equals 20% of the then totalcurrent value of the Shariah Baby Bond®, anduse the cash-in value to invest in whateverlower risk assets, that meet Shariah

13

requirements, are available to us for StakeholderCTF account investment at that time.

8.3 On the equivalent date in each of the threeyears after that, unless the Registered Contacthas told us otherwise, we will cash-in a furthernumber of fund shares and use the cash-invalue to invest in lower risk assets of the typedescribed in Condition 8.2 above. The numberof fund shares cashed-in shall be such that thetotal proportion of the Shariah Baby Bond®

which is invested in lower risk assets after thisaction is completed shall be 40% after thechild’s 14th birthday, 60% after their 15thbirthday, and 80% after their 16th birthday.

If, immediately before the lifestyling actionsdescribed in this Condition are due to beperformed, the proportion of the Shariah BabyBond® already invested in lower risk assets isequal to or greater than the figure stated in thisCondition, then such actions will not beperformed.

8.4 During the period that lifestyling is inprogress, unless either of Conditions 8.6 or 8.7below applies, we will invest all new paymentsinto the Shariah Baby Bond® partly in fundshares, and partly in lower risk assets (asdescribed in Condition 8.2 above), in the sameproportion as applies to the existing investmentsheld for the Shariah Baby Bond® at the start ofthe contribution year in which the new paymentsare received. For example, if at the start of acontribution year (after the relevant actionsdescribed in either of Conditions 8.2 or 8.3above have been performed) 40% of the ShariahBaby Bond® is invested in SICAV fund sharesand 60% in lower risk assets, then we will invest40% of all new payments received during thatcontribution year in SICAV fund shares, and 60%in lower risk assets.

8.5 Unless the Registered Contact has told usotherwise, we will cash-in the total remainingSICAV fund shares on the valuation point on thechild’s 17th birthday, or on the next valuationpoint after that, if the birthday is not a workingday, and use the cash-in value to invest in lowerrisk assets of the type described in Condition8.2 above.

8.6 At any time after the child’s 13th birthday,and regardless of whether or not lifestyling hasthen commenced, the Registered Contact mayinstruct us to increase the proportion of theShariah Baby Bond® then invested in lower riskassets of the type described in Condition 8.2above. To achieve such increase we will, on thenext valuation point after we receive theinstruction or, if on that valuation point we shallbe taking the action described in Condition 8.3above, the next valuation point after that, cash-in the number of SICAV fund shares the valueof which equals the difference between (1) thatproportion of the Shariah Baby Bond® thenalready invested in lower risk assets and (2) thenew proportion to be so invested as instructedby the Registered Contact, and use the cash-invalue to invest in such lower risk assets.

We will continue to invest new payments intothe Shariah Baby Bond® during the remainderof that contribution year into SICAV fund sharesand lower risk assets in whichever of thefollowing is instructed by the Registered Contact:

– the proportions that applied prior to taking the actions described in this Condition, or

– the proportions that apply after such actionshave been taken (which shall also be the case in the absence of any instruction by theRegistered Contact).

8.7 If the actions described in either ofConditions 8.2 or 8.3 above have not beenperformed in respect of any of the child’srelevant preceding birthdays, the RegisteredContact can tell us at any subsequent time tostart or restart the lifestyling process. On thenext valuation point after we receive theirinstruction to do this we will cash-in a numberof SICAV fund shares and use the cash-in valueto invest in lower risk assets of the typedescribed in Condition 8.2 above. The numberof SICAV fund shares cashed-in shall be suchthat the total proportion of the Shariah BabyBond® which is invested in lower risk assetsafter these actions have been performed shallbe that which would then be invested in suchassets if such actions had been performed asdescribed in Conditions 8.2 and 8.3 above in

14

respect of each of the child’s precedingbirthdays on and after the 13th.

If the proportion of the Shariah Baby Bond®

already invested in lower risk assets on the dateof receipt of the instruction is equal to or greaterthan the maximum stated in Condition 8.3above (or greater than 20% if the instruction is received after the child’s 13th but before their 14th birthday), then such actions will notbe performed.

When the actions described in this Conditionare perfomed, we will continue to invest newpayments into the Shariah Baby Bond® duringthe remainder of that contribution year intoSICAV fund shares and lower risk assets inwhichever of the following is instructed by the Registered Contact:

– the proportions that applied prior to taking theactions described in this Condition, or

– the proportions that apply after such actions have been taken (which shall also be the case in the absence of any instruction by the Registered Contact).

9. Tax matters9.1 The CTF Account Manager will make allnecessary claims for repayment of income andcapital gains taxes arising on income or gainsgenerated by the fund shares and any otherinvestments held for the Shariah Baby Bond®.

9.2 Please see Condition 13 “Void CTFaccounts” for the tax implications if the ShariahBaby Bond® should be made void.

9.3 All information about tax in these Terms &Conditions, and in the Key Features sectionabove, is based on our understanding of actualand proposed tax rules relating to CTFaccounts, SICAVs and other relevantinvestments as at January 2007. These rules may change in future.

10. Fund management charges and expenses10.1 There is no difference between the costsof buying and selling shares in the SICAV fund.This means that the expenses incurred indealing shares are met by the fund, whichcould affect its total value.

11. Prospectus, simplified prospectus,reports, meetings and voting rights11.1 The Registered Contact may ask us toarrange for them (or the child) to receive a copyof the relevant prospectus or simplifiedprospectus issued by the Investment Managerin respect of the SICAV fund. We will notcharge for providing this.

11.2 The Registered Contact may ask us toarrange for them (or the child) to receive copiesof any yearly or periodic reports and accountsissued by the Investment Manager in respect ofthe SICAV. We may make a reasonable chargefor providing this service. Neither the RegisteredContact, any person paying into the ShariahBaby Bond®, nor the child, will receive any suchreports and accounts automatically.

11.3 The Registered Contact may ask us toarrange for them to attend any meeting ofshareholders in the SICAV fund, but they willnot be able to exercise any voting rights. Wemay make a reasonable charge for providingthis service.

11.4 The CTF Account Manager will notexercise any voting rights on behalf of theRegistered Contact.

12. Liability12.1 We are liable for any act of negligence or knowing default, or omission, on the part of the CTF Account Manager, whether or not it gives rise to a breach of the FSA rules, theRegulations, or these Terms & Conditions (or any of them).

12.2 Neither we, nor the CTF AccountManager, are liable for any loss the child maysuffer due to:

(a) a fall in the value of any SICAV fund sharesor other investments held for the ShariahBaby Bond®, or

(b) a delay in clearing any payment made byany person or (in respect of a transfer) byanother CTF account manager.

12.3 Neither we, nor the CTF AccountManager, accept any responsibility for theShariah Baby Bond® (or for a CTF account

15

transferred from another CTF account manager)until all relevant cleared funds have beenreceived by the CTF Account Manager.Regardless of the method of payment, ifcleared funds are not received within 7 days ofaccepting instructions from a payer, the CTFAccount Manager will be entitled to cancel anytransaction for the purchase of investments forthe Shariah Baby Bond®.

12.4 The Registered Contact agrees toindemnify us, or the CTF Account Manager (asappropriate), against any liability we or it mayincur in connection with the Shariah BabyBond®, other than any liability as described in12.1 above.

13. Void CTF accounts13.1 The CTF Account Manager will void theShariah Baby Bond® CTF account if it is told todo so by HMRC.

13.2 If the CTF Account Manager has to voidthe Shariah Baby Bond®, it will notify theRegistered Contact of this as soon as possibleand cash-in the SICAV fund shares at the priceapplicable on the first valuation point after thedate it receives HMRC’s instructions. If voidingshould happen during the period that lifestylingis in progress, the CTF Account Manager willrealise any other investments held for theShariah Baby Bond® at the same time. As faras is reasonably possible, it will pay theresulting amounts, less any amount it mayreasonably deduct to cover the cost to it ofvoiding the Shariah Baby Bond® (including anytax liability), to the person or persons who hadmade the payments to the Shariah BabyBond®. If the identity of any payer cannot beestablished, the money will be repaid to thechild, care of the Registered Contact.Repayment in respect of the governmentcontribution will be made to HMRC .

13.3 If the CTF account is made void, then anyincome or growth earned by the money paid into it before it was made void will be subject toincome tax or capital gains tax (or both). Anysuch tax due will be payable by the person whomade the payment into the account. If theidentity of any payer cannot be established, any

tax due will be payable by the child (to the extentthat any relevant personal allowance(s) areexceeded) and must be accounted for to HMRCby the Registered Contact on their behalf.

14. Transfer to a Non-Stakeholder CTF account14.1 At any time the Registered Contact caninstruct the CTF Account Manager to transferthe Shariah Baby Bond® Stakeholder CTFaccount to a Non-Stakeholder CTF accountoffered by us or another CTF account manager.The CTF Account Manager will wait 14 daysfrom receipt of the instruction before makingthe transfer, during which period the RegisteredContact will have the right to change their mind.

14.2 The CTF Account Manager will cash-in theSICAV fund shares on the next valuation pointafter expiry of the period of 14 days describedin Condition 14.1 above. If the transfer shouldhappen during the period that lifestyling is inprogress, the CTF Account Manager will alsorealise any other investments held for theShariah Baby Bond® at the same time.

14.3 If the transfer is to a Non-Stakeholder CTFaccount provided by us, the CTF AccountManager will immediately use the cash-in valueof the SICAV fund shares, and the realised valueof any other investments, to purchase shares insuch other fund or funds, and/or other relevantinvestments (if the transfer happens during theperiod that lifestyling is in progress), asinstructed by the Registered Contact.

14.4 The CTF Account Manager does notmake a separate charge for making a transferto a Non-Stakeholder CTF account, but thetransfer value will be treated as a newinvestment and its standard charges for Non-Stakeholder CTF accounts will apply.

14.5 If the transfer is to a Non-Stakeholder CTFaccount provided by another CTF accountmanager, the CTF Account Manager will takethe action described in Condition 16.3 below.

15. Transfer from another CTF account manager15.1 At any time the CTF Account Manager willaccept a transfer from another authorised CTF

16

account manager of an amount equal to thevalue of a CTF account held with that CTFaccount manager.

15.2 The CTF Account Manager will onlyaccept transfers from another CTF accountmanager in the form of cash.

15.3 The Registered Contact must complete thetransfer application form we provide. The CTFAccount Manager will wait 14 days from receiptof this form before applying to the existing CTFaccount manager to transfer the value of the CTFaccount, during which period the RegisteredContact will have the right to change their mind.

15.4 The CTF Account Manager does notmake a charge for accepting a transfer fromanother CTF account manager.

16. Transfer to another CTF account manager16.1 At any time the Registered Contact canask the CTF Account Manager to transfer toanother authorised CTF account managerwhich has agreed to accept the transfer, anamount equal to the then total current value ofthe Shariah Baby Bond®.

16.2 The CTF Account Manager will only maketransfers to another CTF account manager inthe form of cash.

16.3 In order to make the transfer the CTFAccount Manager will cash-in all SICAV fundshares at the price on the first valuation pointafter either (1) it receives the instruction totransfer or (2) all payments into the ShariahBaby Bond® (other than governmentcontributions) have been cleared, whichever isthe later, or, if the Registered Contact instructstransfer by a later date, the last valuation pointbefore that date. If the transfer should happenduring the period that lifestyling is in progress,the CTF Account Manager will realise any otherinvestments held for the Shariah Baby Bond® atthe same time. The CTF Account Manager willpay the total resulting amount to the new CTFaccount manager.

16.4 The CTF Account Manager does notmake a charge for making a transfer to anotherCTF account manager.

17. Withdrawals17.1 Except as explained in Conditions 17.4and 17.6 below, nobody may make anywithdrawals from the Shariah Baby Bond®

before the child has reached age 18. On their18th birthday, the child may withdraw the totalvalue of their Shariah Baby Bond®. They willhave no tax to pay on the amount withdrawn.Any amount not withdrawn may be reinvestedin any suitable product (other than a CTFaccount) then offered by us, or by any otherprovider, but future income and growth may notbe tax-free.

17.2 On withdrawal the CTF Account Managerwill realise all investments held for the ShariahBaby Bond® at that time, and pay the resultingamount to the child. If any SICAV fund sharesare still held for the Shariah Baby Bond®, theCTF Account Manager will cash-in such sharesat the price applicable on the valuation point onthe child’s 18th birthday, or on the nextvaluation point after that if the birthday is not aworking day. We will make payment by chequedrawn in the child’s favour, or by direct credit toa UK bank account in their name. We mayrequest production of evidence of their identityas required by international anti-moneylaundering regulations.

17.3 If any money is not withdrawn by the childon their 18th birthday, we will close their ShariahBaby Bond® and realise all investments held forit at that time as described in Condition 17.2above. We will place the cash-in value of theShariah Baby Bond® in an interest bearing clientmoney account in our name with an appropriateinstitution authorised under the Financial Services& Markets Act, 2000. Any interest earned by themoney after then will be taxable. Tax must beaccounted for by the child to HMRC. We will notpay any interest on the money while it is held inthe client money account.

17.4 Should the child become terminally ill atany time before their 18th birthday, withdrawalsfrom the Shariah Baby Bond® by a person withparental responsibility for the child (or by thechild themself if aged 16 or over) may bepermitted by HMRC. Application for permission

17

to make such withdrawals must be madedirectly to HMRC by the Registered Contact.For this purpose, ‘terminally ill’ means that thechild suffers from a progressive disease ofwhich they can reasonably be expected tosurvive for no longer than 6 months.

17.5 Upon receiving permission from HMRC,the CTF Account Manager will allow thewithdrawal of any amount, or series ofamounts, requested on behalf of the child (orby the child if aged 16 or over). In order toeffect each withdrawal the CTF AccountManager will cash-in such number of SICAVfund shares as is necessary, at the price on thefirst valuation point after either (1) it receives theinstruction to withdraw or (2) all payments intothe Shariah Baby Bond® (other thangovernment contributions) have been cleared,whichever is the later, or, if the RegisteredContact instructs withdrawal by a later date, thelast valuation point before that date, to producethe requested withdrawal amount. If thewithdrawal should happen during the periodthat lifestyling is in progress, the CTF AccountManager will, if necessary, also realise at thesame time such other investments held for theShariah Baby Bond® as is required to producethe requested withdrawal amount. The CTFAccount Manager will pay the total resultingamount to the Registered Contact (or to thechild themself if aged 16 or over). The CTFAccount Manager will maintain the ShariahBaby Bond® in force until the child’s 18thbirthday, regardless of its residual value after thewithdrawal(s) have been made. New paymentsmay continue to be made into the ShariahBaby Bond®, subject to the limits shown in theKey Features section above, under “How muchcan be paid in to a Shariah Baby Bond®?”

17.6 The CTF Account Manager may makewithdrawals from the CTF account in respect ofits charges. See “What are the charges?” in theKey Features section above.

18. Death of the child18.1 If the child should die before they reachage 18, the Shariah Baby Bond® will end. The

value of the account as at the date of death willpass to the child’s estate and form part of thatestate for inheritance tax (IHT) purposes.

18.2 Before the CTF Account Manager can payout the value of the Shariah Baby Bond® to thechild’s personal representative(s), they will haveto provide (at their own expense) documentaryevidence of the child’s death and of theirentitlement to claim payment. The originalRegistrar’s copy Death Certificate will normallybe sufficient, unless the child was old enoughto make a will and had done so, when a copyof the will (or Grant of Probate) will also normallybe required.

18.3 The CTF Account Manager will cash-in all SICAV fund shares held for the Shariah BabyBond® at the price applicable on the firstvaluation point after receiving evidence of thechild’s death. If death should happen during the period that lifestyling is in progress, the CTFAccount Manager will realise any otherinvestments held for the Shariah Baby Bond® atthe same time. The CTF Account Manager will pay the resulting amount into an interestbearing account with an appropriate institutionauthorised under the Financial Services &Markets Act 2000. It will pay the amount due to the child’s personal representative(s) when it has received the documentary evidencereferred to in Condition 18.2 above. It will notpay any interest on the money while it is held in the client money account.

18.4 All growth in the value of the investmentsheld for the Shariah Baby Bond® up to andincluding the date of the child’s death will befree from tax. Any income or growth arisingafter the date of the child’s death, but beforethe CTF Account Manager can pay out thevalue of the Shariah Baby Bond® to the child’spersonal representative(s), will be subject to tax.The CTF Account Manager will deduct such taxfrom the amount it pays them and account forit to HMRC.

19. Schemes of arrangement19.1 If shares within the fund held for theShariah Baby Bond® are subject to a scheme of

18

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arrangement, the holding will continue into thesuccessor SICAV unless the CTF AccountManager does not offer the successor SICAVfor Shariah Baby Bond® Stakeholder CTFaccount investment. In this event the CTFAccount Manager will require the RegisteredContact to switch the holding to another SICAVor other collective investment scheme that itdoes offer for Shariah Baby Bond® StakeholderCTF account investment, or to transfer thevalue of the Shariah Baby Bond® to anotherauthorised CTF account manager.

20. Data Protection20.1 The Data Protection Act 1998 regulatesthe way we can use data we have collectedfrom anyone, and requires that we obtain theirconsent before we can use their personal data.The Registered Contact gives this consent inrespect of both themself and the child bymaking the declaration in the application.Consent covers all members of the Group andtheir agents or administrators, and any otherorganisations associated with the Group intrading under The Children’s Mutual name, andalso (for marketing purposes only) selected thirdparties.

20.2 We use personal data solely for thepurposes of setting up and administering anyinvestments with us, or with any member of theGroup, and for business analysis purposes, and

for the prevention of fraud, and to send detailsof other goods and services we can offer orpromote (unless you have indicated that you donot wish to receive such material).

21. Rights of third parties21.1 Neither the Registered Contact, nor anyperson making payments into the Shariah BabyBond® for, or on behalf of, the child, will obtainany rights under the Contracts (Rights of ThirdParties) Act, 1999 to the Shariah Baby Bond®

or to any of the investments held for it.

22. Changing these Conditions22.1 Subject to the FSA rules and theRegulations, and to giving the RegisteredContact written notice at least 30 daysbeforehand, the CTF Account Manager has theright to change, or add to, these Terms &Conditions at any time.

22.2 The purpose of any change will be to:

(a) make the Terms & Conditions fairer, or easierto understand, or

(b) correct any mistake or omission, or

(c) give effect to any change to the FSA rules orthe Regulations (or both), or

(d) reflect new practices or developments, or

(e) reflect operational changes, orfor any other valid reason.

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The Shariah Advisory Board

Sheikh Nizam

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Professor of Tafsir,

Hadith and Fiqh.

Dr Muhammed

Imran Ashraf

Usmani

Islamic

jurisprudence

expert and author.

Mufti Abdul Kadir

Barkatulla

Imam, North

Finchley Mosque.

Mufti Muhammad

Nurullah Shikder

Imam, Tunbridge

Wells Mosque.

2

Introducing the only Child Trust Fund that respects Islamic law

The Child Trust Fund (CTF) is a wonderful savings opportunity foryour child. The question is, how do you help them make the mostof this compulsory Government scheme and still remain true toyour Muslim faith?

The good news is that you now have a choice that will enable yourchild’s savings to grow, without compromise. It’s called ShariahBaby Bond® and it is entirely in keeping with Islamic law.

A responsible way to save

Shariah Baby Bond® has been created by The Children’s Mutual,the only organisation in the UK that specialises exclusively inchildren’s savings, with over 50 years’ experience of helping peoplesave for their children.

We have combined our expertise with Scottish Widows InvestmentPartnership, supported by the knowledge and understanding ofthe Shariah Advisory Board, to create the first and only ShariahCTF account. Now you have a CTF choice that can help your childprosper, but not at the expense of your beliefs. And if you alreadyhave a CTF account, it’s free and simple to switch.

It’s easy to arrange

Read on and you will discover why the decision you make now is so important, and how The Children’s Mutual can help. Thensimply call us on 0845 608 0045 (lines are open Monday toFriday 8am to 8pm and Saturday 9am to 1pm), visit our website at www.thechildrensmutual.co.uk or complete and return theapplication form enclosed. We can help you give your child thefinancial head start they deserve.

Yours faithfully

David WhiteChief Executive 19

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The Children’s Mutual, PO Box 2067, Gloucester GL4 3YU.Tel: 0845 077 1899 Fax: 0845 609 0073Email: mail@thechildrensmutual.co.uk Website: www.thechildrensmutual.co.ukThe Children’s Mutual is a trading name of the Tunbridge Wells Equitable Group, which includes Tunbridge Wells EquitableInvestments Company Limited, registered in England under the Companies Act 1985, registered no. 4315370, FSA registered no. 208027.Authorised and regulated by the Financial Services Authority and members of the Financial Ombudsman Service. Registered Office:Brockbourne House, 77 Mount Ephraim, Tunbridge Wells, Kent TN4 8GN.

32 33 HSE-KF-0026-0307

Checklist How do I get started?

Once you’ve decided to open a Shariah Baby Bond® withyour child’s CTF voucher, it’s easy to sort out. Simply choosewhichever way suits you best:

• call us on 0845 608 0045 quoting SCB3636 (lines areopen Monday to Friday 8am to 8pm, and Saturday 9amto 1pm) and you can apply for your child’s Shariah BabyBond® account there and then

• visit our website www.thechildrensmutual.co.uk andyou can apply for Shariah Baby Bond® securely on-line

• or fill in and return the enclosed application form.

Whichever way you choose to apply you must send us theoriginal voucher.

XX

X

Please note• Data Protection Act 1998 (the Act)

The information on this form will be used to process the application, to administer the CTF account once it has been set up and for marketing analysis purposes. This information will be available to members of the Tunbridge Wells Equitable Group, their associates and agents and (for marketing purposes only) selected third parties, but will not be passed to any other party without your consent, unless we are required to do so by law or regulation. It may also be shared with other financial services companies to help fraud prevention. The data may be used to provide you, or the child, with details of other products or services. If you do not wish to receive these, please cross the box(es) below as appropriate.Please do not provide details of other products/services to me to the child .

The Act confers rights of access to information we hold. Details are available on request.

If you would like to receive further product information offers via email, please cross this box .

• Money Laundering and Fraud PreventionInternational regulations require that we sometimes check certain details about customers. To do thiswe may use an agency to carry out a search to verify a customer’s identity. The details on theapplication form may be used by the agency to check against other databases (public or otherwise)that are available. The details may also be used in the future to help other organisations to verify thecustomer’s identity and confidential records would be retained. By signing the application form as theRegistered Contact, you give us authority to do this.

Please remember! Whichever way you choose to open your child’sShariah Baby Bond® account, you MUST send in your voucher beforewe can go ahead.

However, if you are not sure whether Shariah Baby Bond® is suitablefor your current needs, you should seek financial advice. There may bea charge for any advice given.

Have you read and understood the Key Features? They contain fulldetails about Shariah Baby Bond®. For detailed information aboutthe fund, please call 0845 608 0045 (lines are open Monday toFriday 8am to 8pm and Saturday 9am to 1pm).

Have you enclosed your CTF voucher and written the vouchernumber clearly on the application form? You can fold the voucher if necessary.

If you’re making additional payments have you selected the amount? (see step 4)

Has the Registered Contact signed and dated the application? (see step 5)

If you are making regular monthly payments, has the Direct DebitInstruction been fully completed, signed and dated?

Shariah Baby Bond®

– now you have a choice

Shariah Baby Bond®

FREE£20 worth of

Mothercare vouchers!See page 9

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