Share with us Prudential Savings-Related Share Option Scheme
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Share with us
Prudential Savings-Related Share Option Scheme
Guide to the 2020 Invitation
Joining the Prudential Savings-Related Share Option Scheme (the “Scheme”) is a popular and easy way
to become a shareholder of Prudential plc (the “Company”) and share in the future potential success.
The Scheme allows you to save up to £500 a month from your net salary, across all savings contracts. You can choose to save
over a three or five-year period, and once this period is complete you can use your accumulated savings to acquire shares in
the Company at the option price.
This price is set at the time of joining at a discount of up to 20 per cent on the average market share price calculated over the
three trading days immediately prior to the invitation period. Whilst every effort has been made to ensure the accuracy of
this document, if there is any conflict between its contents and the Rules of the Scheme or the relevant legislation, the Rules
or legislation take precedence and are legally binding.To apply Scheme features
To join, please read this guide carefully, the Terms & Conditions If you are employed on 28 August 2020, and you are not under notice
applying to the Scheme and the Financial Services Compensation of leaving, then you can apply to join the Scheme until 11:59pm on 15
Scheme (FSCS) Information Sheet, before deciding whether you want September 2020.
to apply. You will be asked to confirm your acceptance of the FSCS
Information Sheet and the Terms & Conditions when making your Monthly A fixed amount between £5 and £500 from your net salary.
savings Deductions are made directly into your personal savings
application. Please note that the FSCS Information Sheet should be account with Yorkshire Building Society.
retained for your records.
Online: www.ybsshareplans.co.uk/prudential
Savings Three or five years
You will need your Personal Identity Number (PIN) which can be term
found on your invitation email sent to your work email address on
Friday 28 August 2020 and your National Insurance number. Choices •E
xercise your option and acquire Prudential shares at the
at option price, and then either hold the shares or sell the
contract shares immediately or
Key dates maturity
•H
ave your savings refunded and not exercise your option
Applications open 28 August 2020 to acquire shares.
For example, you may wish to do this should the market price
Final application date 15 September 2020 – 11:59pm be lower than the option price.
Late applications will not be accepted
Payment You can take a payment holiday for up to twelve months.
Grant of option 22 September 2020 holiday Your right to acquire shares will remain as long as you restart
your payment immediately after your break. As a result, the
First salary deduction November 2020 maturity of your savings contract will be postponed. If you miss
Remember to check your payslip payments for more than twelve months your right to acquire
shares will lapse automatically and you will need to contact YBS
Savings contract starts 1 December 2020 Share Plans for your savings to be returned to you.
2How it works *Examples used are for illustrative purposes only. Share prices
can fall as well as rise, therefore, you should check the price of
For example, if you decided to save £250 per month you would have Prudential plc shares just before deciding whether or not to buy
accumulated savings of £9,000 (36 months x £250) for the three year term the shares. Past share price performance is not necessarily an
and £15,000 (60 months x £250) for the five year term. indication of future performance.
If the Prudential plc share price at invitation was £10.00, then the option Prior to exercise, you can review the Prudential share price which can be
price with a 20 per cent discount would be £8.00 (the actual option price found on the Company’s website (www.prudentialplc.com).
is shown on your invitation letter or email).
To calculate the number of shares you can buy at the end of the savings If the share price is lower than the discounted option price, you
period just take your total savings and divide this by the option price (as per can simply choose to have all your savings returned.
the below table). The following table is an illustration of the value of your Please note that the bonus and early closure interest rate for the
share option in three or five years’ time, if the Prudential plc share price had Savings-Related Share Option Scheme are determined by HM
fallen in value to £8.50, remained the same at £10.00, or had risen to £11.50. Revenue & Customs (HMRC). The bonus rate for the three and five
If you decided to acquire the shares you are under no obligation to hold year Scheme is currently set at zero and the early closure interest
them and can sell them straight away. for all savings contracts is also currently set at zero per cent. If
you joined the plan in previous years those rates are unaffected.
Contract Shares Example Cost to Example Potential
Therefore, should you decide not to buy the shares at maturity due
term under Prudential buy your Market profit to the share price performance, the return from your sharesave
option plc Share shares at value savings account will be less than that of an ordinary interest
Price in the fixed of your bearing savings account over the same period.
three or Option shares
five years Price
time * What happens when your savings contract matures
When your savings contract matures, you can simply request a refund of
your savings through YBS Share Plans, or you can exercise your option and
three years 1,125 £8.50 £9,000.00 £9,562.50 £562.50
acquire Prudential shares at the option price and you have two choices:
Keep your Prudential shares: you can keep your shares and become
five years 1,875 £8.50 £15,000.00 £15,937.50 £937.50 a shareholder of Prudential. You will receive a share certificate from our
corporate registrar, Equiniti Limited. As a shareholder, you are entitled to
dividends and voting rights. Dividends are usually paid twice a year but
three years 1,125 £10.00 £9,000.00 £11,250.00 £2,250.00 are not guaranteed.
Sell your Prudential shares: at the point of exercise, you can sell your
five years 1,875 £10.00 £15,000.00 £18,750.00 £3,750.00
shares immediately through the Executive Share Dealing Services (ESDS)
team at Equiniti Financial Services Limited, who offer a share dealing
three years 1,125 £11.50 £9,000.00 £12,937.50 £3,937.50 service. Shares are usually sold on a weekly basis after exercise. Before
you instruct to sell, you should check whether you require any share
five years 1,875 £11.50 £15,000.00 £21,562.50 £6,562.50 dealing clearance under the Prudential Securities Dealing Rules.
Further details on these choices will be available in the Maturity Guide
which you will receive just before the end of your savings contract term.
3Taxation information Useful terms and explanations
Keeping Only in exceptional circumstances will income tax be payable Contract The end of the savings contract term. Your savings contract
your when you choose to buy the shares. This may occur if your maturity matures when it reaches the end of the agreed savings
shares employing Company leaves the Group or is taken over and you period. You have six months from the date of the contract
buy shares within three years of the Date of Grant of Options. maturity to exercise your option to acquire Prudential shares.
You can transfer your shares directly into an ISA within 90 days
from the date of exercise without incurring a Capital Gains Tax Equiniti Equiniti Executive Share Dealing Services (ESDS) team at
(CGT) liability on the transfer. Any gain from shares held in an ESDS Equiniti Financial Services Limited, the share dealing service
ISA is exempt from both UK Income Tax and CGT, and there will provider of selling shares resulting from exercise of certain
be no additional tax on dividends received. employee sharesave plans.
Please note that, to transfer your shares into an ISA, you need to
send the share certificate which will be sent to you from Equiniti Equiniti Prudential’s corporate registrar, who are responsible for
Limited, to your ISA provider, along with your online instruction Limited maintaining the shareholder register.
confirmation from YBS Share Plans as supporting evidence that
the shares have been acquired through a HM Revenue & Customs Exercise To exercise your right to acquire Prudential shares at the
(HMRC) approved scheme. of option option price. The exercise period lasts for six months from
the date of the contract maturity.
Selling If you sell your shares, you may be liable to CGT on any gain made. Invitation The period during which employees can apply to join the
your The annual CGT exemption for 2020/21 is £12,300. If the gain on period Scheme, also known as the offer period.
shares the sale of your shares takes you above this exemption (remember to
include any other disposals you have already made in the tax year), Lapsed An option that no longer has any value because it has reached
you may be able to reduce the amount of your CGT liability by: option its expiration date without being exercised. This happens if you
• holding onto some of your shares and selling them in a later tax year; miss more than twelve monthly payments or do not exercise your
• transferring your shares to your spouse or civil partner prior to the option within six months from the date of the contract maturity.
sale (as each individual has an annual exemption); or
• transferring your shares into an ISA. Option The right, but not the obligation, to acquire shares at the end
of your savings contract at the option price, which is set at
the time of the offer.
Tax laws do change though, so don’t forget that the rules may be Option The price at which you can acquire Prudential shares at
different when you decide to sell your shares. If you are still unsure price contract maturity. Up to 20 per cent discount is applied to the
about the tax implications relevant to you, please contact HMRC or average market share price of Prudential shares calculated
over the three trading days immediately prior to the invitation
seek independent financial advice before deciding whether or not to date.
exercise your option and invest in Prudential shares. You can find an
independent financial adviser by visiting www.unbiased.co.uk. Please Savings An arrangement by which you agree to make savings for
note that the information provided in this Guide is general in nature contract a period of three or five years at the time of joining the
Scheme.
and is not intended to constitute tax or other financial advice.
4Frequently asked questions and answers How can I find out how much I am saving towards my savings
contract(s)?
General
Please contact the YBS Share Plans Helpline on 0345 166 9221. They
Can I change my monthly savings amount at any time? will be able to assist you with any account queries. Please have your
No, the monthly savings amount and contract term is fixed at the account number or National Insurance number to hand. Alternatively,
point of joining the Scheme. more information on your account is available online. You can access
your account by visiting www.ybsshareplans.co.uk/prudential and
What can I do if my circumstances have changed and I can’t clicking on ‘Login’, using the details supplied following registration or
afford to carry on with the monthly savings? application.
You can take a payment holiday for up to twelve months. Your
Can I transfer my share option to my spouse or family member?
right to acquire shares at contract maturity will remain as long as
you restart your monthly payment immediately after your break. Your share option is not transferable. However, once you have
Your contract maturity is postponed by a month for every monthly exercised your option and acquired shares, you can then transfer
payment you miss. If you miss more than twelve monthly payments, some or all of your shares to your spouse or civil partner.
then your option to acquire shares will lapse automatically.
Is there a list of option prices that I can refer to?
If a payment holiday is not a viable choice for you, you can leave
A list of historic option prices is available on the intranet. Alternatively,
the Scheme at any time and have the savings you have made so far
you can find the option price for your share option on your option
refunded, but your option to acquire shares will lapse automatically.
certificate. If you are unable to find your option certificate you can
To do this please call the YBS Share Plans Helpline on 0345 166
contact the YBS Share Plans Helpline on 0345 166 9221.
9221 and a representative will arrange to issue you with a cheque.
In addition, you will need to contact Workday to stop your monthly
contribution.
5Monthly savings limit
Who sets the monthly savings limit?
The monthly savings limit is pre-determined by HMRC. The minimum 1. You can continue to make monthly payments from your sick
monthly amount you can save is £5 and the maximum you can save is pay or maternity/paternity pay;
£500 across all savings contracts. 2. Y
ou can take a payment holiday of up to twelve months. If you
I have a savings contract about to mature in December 2020, restart your monthly payment immediately after your payment
will the monthly savings amount for that savings contract be holiday then you will have the choice to acquire shares at the
available to me for the 2020 offer? contract maturity. Your contract maturity is postponed by a
month for every monthly payment you miss. If you miss more
If you have a savings contract that is maturing in December 2020, your than twelve monthly payments, your option to acquire shares
monthly savings amount for that contract can be used towards the will automatically lapse;
2020 offer, providing your maturity date is not deferred.
3. If you are on maternity or paternity leave you can contact the
YBS Share Plans Helpline on 0345 166 9221 and arrange to set
Can I pay my Sharesave deductions direct from my bank, rather
up a standing order to save directly with YBS so that you can
than through my payroll department?
keep up with your monthly savings; or
Deductions for your Sharesave account have to be made via payroll.
4. Y
ou can leave the Scheme and have your savings refunded.
If, however you are on maternity leave, parental or adoption leave, a
Please contact the YBS Share Plans Helpline on 0345 166 9221
reservist called up for military service, long-term sick, secondment
and a representative will be able to assist you further.
or sabbatical leave, you may arrange to pay your deductions direct to
YBS Share Plans. Please call the YBS Share Plans Helpline on
0345 166 9221 to arrange this. Going on international assignment
What happens to my share option(s) if I am going on
Sick or maternity/paternity leave international assignment?
What happens if I am on sick leave or about to start my We will have to advise you according to the nature of your assignment
maternity/paternity leave? and your tax status. Most employees who go on assignments can
continue to make monthly payments, but you are advised to get in
You need to contact your HR representative and Workday to
touch with your HR representative, YBS Share Plans and the Share
notify them that your circumstances have changed.
Plans Team at Share.SchemesProvider@prudentialplc.com so we can
You will have four choices:
assist you further.
6Contract Maturity and Exercise of Option leave the Company. During this period, you can carry on saving privately
with YBS Share Plans and then exercise your share option before your
Can I exercise my option at any time? six-month period is finished. The number of shares under option will be
No. You have six months from the date of your contract maturity to prorated based on the accumulated savings you have made at the end of
exercise your option to acquire shares. If you do not exercise within this period.
the six-month period, your option will lapse automatically. Your If you fail to exercise your share option within the six-month period
savings will be refunded to you on request. Please visit following your leaving date, your option to acquire shares will lapse
www.ybsshareplans.co.uk/prudential and log in your account to automatically and your savings will be refunded to you on request.
close your account and have your balance paid directly to your bank Please contact the YBS Share Plans Helpline on 0345 166 9221 and a
account. representative will arrange to issue you with a cheque.
Who can tell me when is the best time to sell shares? If you leave for any reason other than those specified in this section you
will lose your right to exercise your share option. Your savings will then
YBS Share Plans, Equiniti Limited and Prudential and its affiliates are
be refunded to you on request. Please visit www.ybsshareplans.co.uk/
not authorised to advise you on the sale of your shares. If you are in
prudential and log in your account to close your account and have your
any doubt or unsure about what to do, please seek advice from an
balance paid directly to your bank account.
independent financial adviser.
Please remember the share price can go down in value as well as Am I allowed to exercise my option if I am serving my notice period?
up. It is your responsibility to decide whether or not to exercise Yes. You can exercise your option under a matured savings contract as
your option to acquire Prudential shares in 2023 or 2025. Prior to long as you are still employed by Prudential on the day you exercise your
exercise, you can review the Prudential share price, which can be option.
found on the Company’s website (www.prudentialplc.com).
What happens to my share option if I die?
Leaving the Company The executor of your estate will take over your share option and the right
to acquire Prudential shares. The executor will have 12 months from the
What happens to my share option and my savings if I leave the
date of death to exercise the option if you die before your savings contract
Company?
reaches maturity.
If you leave through injury, disability, redundancy, retirement, a
If your savings contract has already matured at the time of death, the
change of control, or transfer of employment to which the Transfer
executor will have 12 months from the date of maturity to exercise the
of Undertakings (Protection of Employment) Regulations 2006 apply,
option.
you have six months to exercise your share option from the date you
7Additional information
Calls to 03 numbers are charged at the same standard network rate as 01 or 02 landline
Is there anything else I should bear in mind? numbers, even when calling from a mobile. YBS Share Plans Helpline is open from
Yes, please ensure your contact details including your postal Monday to Friday 9.00am to 5.00pm and on Saturday 9.00am to 1.00pm, excluding
public holidays in England & Wales. All communications with YBS may be monitored/
address with Workday and YBS Share Plans are up to date
recorded to improve the quality of their service and for your protection and security.
so they can send you communications about your savings
contract(s). The Financial Services Compensation Scheme (FSCS)
When you apply online, your online account will be Important information about compensation arrangements
automatically activated if it was not previously activated. Your eligible deposits with Yorkshire Building Society are protected up to a total of
£85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee
You should also bear in mind that the Guide to Invitation scheme.
contains only a brief outline of the Scheme Rules. If there This limit is applied to the total of any deposits you have with the following: Yorkshire
is any conflict between its contents and the Scheme Rules Building Society, Chelsea Building Society, Norwich & Peterborough Building Society
or the relevant legislation, the Rules or legislation take and Egg. Offset deposits through YBS’s subsidiary Accord Mortgages Limited are
precedence and are legally binding. held by Yorkshire Building Society on behalf of Accord. Any total deposits you hold
above the £85,000 limit between these brands are unlikely to be covered. For further
If you are unsure about whether to take part in the information please see section VI of the Sharesave Terms and Conditions.
Scheme, you can seek advice from an independent Yorkshire Building Society is a member of the Financial Ombudsman Service. Further
financial adviser. Prudential, its subsidiaries and its details are available on request from the Society.
affiliates, take no responsibility for the cost of any YBS Share Plans is part of Yorkshire Building Society
legal or tax advice or any tax liability arising from your YBS Share Plans, Yorkshire House, Yorkshire Drive, Bradford, BD5 8LJ.
participation in the Scheme. Tel: 0345 1200 300. Fax: 01274 357950. ybsshareplans.co.uk
Yorkshire Building Society provides Share Plan trustee and administration services, including
deposit taking, all of which are subject to English law, with deposit taking being regulated
by the Financial Conduct Authority. The provision of share plan trustee and administration
services is not regulated by the Financial Conduct Authority. We are not responsible for
Share Plan deposits held by local savings carriers outside the UK.
Yorkshire Building Society is a member of the Building Societies Association and is
authorised by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority and the Prudential Regulation Authority. Yorkshire Building Society
is entered in the Financial Services Register and its registration number is 106085.
Head Office: Yorkshire House, Yorkshire Drive, Bradford, BD5 8LJ.
8 YBM 7081 11 08 20You can also read
