Notification on Navigator Cash Account - Maximum Balance

Notification on Navigator Cash Account - Maximum Balance

Following our recent consultation with MAS, we wish to highlight that a maximum balance will be applied to the aggregate of the balances in each Navigator Cash Account under your Navigator Investment Cash/SRS Plan(s) (the "Maximum Balance"). The Maximum Balance is set at S$35,000 with effect from 8 August 2007. This will apply to any new Navigator Investment Plan: Cash/SRS, or Navigator Investment Plan (Plus): Cash/SRS that you have or will be opening with Navigator after 30 June 2007.

The Maximum Balance is applicable for joint accounts as well. Your jointly-owned plan account (whether a non-minor joint account or a joint minor account) will have a separate Maximum Balance from your individually-owned account. However, if you own more than one joint account with the same account holders, these will be aggregated together. For example, Mary's individual account will have a Maximum Balance of S$35,000. Her joint account with John will have a separate Maximum Balance of another S$35,000. However, if Mary and John have more than one joint account, all of their joint accounts will be aggregated together and the combined total should not exceed S$35,000.

Navigator will be reviewing the cash balances in your Navigator Cash Account(s) on 8 August 2007 and thereafter on every 1st working day of the month. If you wish to invest your excess cash balances (exceeding the Maximum Balance) into the investment funds available on the Navigator platform, we strongly encourage you to contact your Financial Adviser to switch out the excess cash balance before 31 July 2007 and thereafter, before the 1st of every subsequent month, as needed. This is particularly so if any of your above plan(s) are under the Deferred Entry Fee Option to avoid being charged the exit fee on the amount withdrawn.

Following our review, if the aggregate balance in your Cash Account(s) exceeds the Maximum Balance, we will proceed to automatically refund you any amount in excess of the Maximum Balance within 2 weeks from the review date. If you have nominated a bank account for your Navigator Investment Plan(s), Navigator will credit the refund amount into your nominated bank account. Otherwise, Navigator will send a cheque to your last known address in our records. In the case of SRS monies, Navigator will credit your SRS Account with the relevant SRS Operator. A withdrawal notification will also be sent to inform you of the refund.

The revised terms and conditions applicable to Navigator Investment Account and Navigator Investment Plan(s) are set out in the Addendum attached to the revised Navigator Investment Plan - Cash/SRS Terms and Conditions. We strongly encourage investors to read them. The Addendum should be read together with the existing terms and conditions applicable to Navigator Investment Account and Navigator Investment Plan(s).