For customers Wealth Management Portfolio Key features of the Wealth Management Portfolio

Transcription

1 For customers Wealth Management Portfolio Key features of the Wealth Management Portfolio The Financial Conduct Authority is a financial services regulator. It requires us, Aegon, to give you this important information to help you to decide whether our Wealth Management Portfolio is right for you. You should read this document carefully so that you understand what you re buying, and then keep it safe for future reference.

2 This document describes the key features of our Wealth Management Portfolio bond. You ll also get a personal illustration, so you can put figures to the benefits you may receive in the future. Please take some time to go through both of these documents and put them somewhere safe you may want to look at them again. This guide refers to our product terms as at July Contents 03 Its aims 03 Your investment 03 Risks 04 Questions and answers 04 What is a Wealth Management Portfolio? 04 Who is eligible? 04 How flexible is it? 04 Can I take money out? 04 Where is my money invested? 05 Can I change my investment choice? 05 What is the cash account? 05 What happens to my Wealth Management Portfolio if I die? 06 Where can I find out about the product charges? 06 Can you facilitate adviser charging? 06 Can I change my mind? 06 What about tax? 07 What might I get back? 07 How will I know how my Wealth Management Portfolio is doing? 08 The European portability option 08 What is the European portability option? 08 When can I make use of it? 08 Are there any investment restrictions? 09 What information will you provide me with when I move? 09 Moving to Spain 10 How to contact us 11 Other information 11 How to complain 11 About us 11 Special risks 11 Time limits 11 Terms and conditions 11 Law 11 Communication 11 Client categorisation 11 Compensation

3 For UK investors: Its aims n To give you tax-efficient growth on your lump sum investments. n To allow you to put together a tailored portfolio of investments. n To give you a tax-efficient way of making withdrawals. And in addition: n To ensure that income tax efficiency is available if you move to France, Italy or Spain through the European portability option. Your investment n You can invest a cash sum of 15,000 or more. n You have to have at least 75,000 in your bond before you can invest it with other investment providers rather than in the range of funds we offer. n Although it has no fixed term, you should view the Wealth Management Portfolio as a medium to long-term investment. n You must keep a minimum investment of 10,000 in the bond, otherwise we reserve the right to cash-in the bond and pay the proceeds to you. n If you re intending to move to Spain, and want to restrict your investment to funds that are Undertakings for Collective Investment in Transferable Securities (UCITS) so your bond can benefit from tax deferral, then the minimum investment amount is 75,000. Risks n Investment performance may go down as well as up. The value of an investment and any income from it can fall as well as rise and isn t guaranteed. You may get back less than the amount originally invested. Some funds, particularly those investing in the stock market or those with alternative investment strategies, carry a higher level of risk than others, and may be subject to sudden and large falls in value or become difficult to convert back to cash. We don t assess the suitability for you or the reliability of these investments. n It s possible that an asset or fund, you or your adviser chooses to invest in, could reduce significantly in value or in some circumstances have no value. n If our custodian bank or another bank we choose became insolvent, assets linked to the cash account could reduce in value or, in some circumstances, have no value. If your custodian bank, investment platform or investment provider became insolvent, assets held in the general account could reduce in value. If either of these happen the value of your bond will reduce or in some cases have no value and you ll not be able to claim under the UK Financial Services Compensation Scheme. n You may get back less than that the amount shown in your personal illustration if, for example: investment growth is less than that assumed in the illustration you withdraw more than shown in the illustration our charges increase above those in the illustration you have to sell assets or funds held in the portfolio to settle deals, pay charges or to meet withdrawals fluctuations in exchange rates affect the performance of the assets and funds you ve chosen n If you decide to cancel and in the time you ve been invested the value of your investment has fallen, you may not receive back the full amount you paid in. n Please note for our Portfolio funds you may not be able to cash in or switch out of any fund investing wholly or partly in direct property when you want to. We may have to delay your payment for up to 12 months if market conditions make it hard for the manager of the fund to sell properties at a fair price. You should also be aware that property funds can experience larger price movements (up or down) than other types of fund, either due to changes in valuations (which are a matter of an independent valuer s opinion rather than fact) or as a result of a change in the valuation basis. 03

4 Questions and answers What is a Wealth Management Portfolio? It s a single contribution investment bond, issued as a number of identical policies for flexibility and tax efficiency by Aegon Ireland plc which is based in Dublin. It gives you access to our range of investment funds, we call these the Portfolio funds. And if your bond is worth 75,000 or more, you can also invest in a range of assets and funds from other investment providers. Legislation, regulation and company policy exclude you from holding some types of investments in your bond. If we don t exclude an investment this doesn t mean we believe the investment to be suitable for you or reliable. Your financial adviser can advise you on this. The bond can be denominated in sterling, US dollars or euros. If you pay your investment in a currency that isn t the denomination currency of the bond, we ll have to convert this to the denomination currency and the conversion rate will depend on market conditions when we do the conversion. If we need to do a currency conversion, we ll do it as soon as we can at our custodian bank s exchange rate. We ll make a charge for this. You can find further details in the policy conditions booklet. Please speak to your financial adviser if you want a copy of the policy conditions before you take out the bond. If you re planning to move to Spain at any time you need to bear in mind that bonds can be either qualifying or non qualifying there. Please see the Moving to Spain section on page 9 for more information on this and on the specific investment restrictions that will have to apply if you want your bond to be qualifying. You can ask us to appoint an investment adviser to manage your portfolio of investments within the bond, on your behalf. Who is eligible? This bond is available to individuals, corporate investors or trustees. The European portability option feature is only available to individuals. Up to six individuals or the trustees of a trust can set up and own the bond. It can be set up on the lives of up to six people. By setting up the bond on multiple lives, the bond can continue until the last person covered dies. We ll pay out the death benefit on the death of the last person covered, known as the last life assured. 04 How flexible is it? n The bond is normally set up with 10 policies with the flexibility to increase this on request. n You can add additional amounts of 5,000 or more at any time as long as you re living in the in the UK, France, Spain or Italy when you make these additional investments and haven t taken advantage of the European portability option for Spain. n You ve access to the range of assets and funds on offer. n You can take money out of your bond, please see the Can I take money out? section next for more information on this. Can I take money out? You may take money out at any time providing your bond has sufficient value. If you ve chosen for your bond to invest in funds that can only be bought and sold irregularly, you may not be able to get your withdrawal straight away. You can make regular withdrawals monthly, quarterly, half-yearly or yearly, but please bear in mind that if you re moving to France you may need to report each individual withdrawal to the French tax authorities so more frequent withdrawals create a heavier reporting burden for you. We ll make the payment direct to your bank account. The minimum withdrawal is 500. The maximum you may take out depends on the value of your bond at that time. You can find further details on withdrawal limits and how much you need to leave in the bond for it to remain in force in the policy conditions booklet. Please speak to your financial adviser if you want a copy of the policy conditions before you take out the bond. You can also fully cash in your bond, providing it has sufficient value. Remember, if you ve chosen for your bond to invest in funds that can only be bought and sold irregularly, you may not be able to get your money out straight away. Where is my money invested? Along with your financial adviser (or investment adviser), you choose where to invest. The amount we invest for you depends on the charging structure you and your financial adviser also choose. Please see your personal illustration for more details. With our Wealth Management Portfolio you, your financial adviser, or your investment adviser if you asked us to appoint one, select and actively manage your own portfolio of investments to make the most of opportunities in the international investment markets. There s a wide range of assets that you can hold in your bond, including:

5 Questions and answers n approved UK investments trusts n authorised UK unit trusts n open-ended investment companies (OEICs) n certain non-uk collective investment schemes, acceptable under the UK personal portfolio bond tax rules n cash deposits and structured deposits n our Portfolio funds See the Moving to Spain section on page 9 for specific investment restrictions that you can choose to apply from the start date of your bond if you re planning to move to Spain and want your bond to be qualifying. Within our Portfolio funds: n each fund is made up of units n we use your contributions to create units in the funds you choose n the price of a unit in each Portfolio fund depends on the value of the investments You may invest in our Portfolio funds or you can use them to form part of a portfolio it s up to you and your financial adviser (or investment adviser) where you invest your money. We work out the value of this part of your portfolio based on the total number of units you have in each fund. If the unit prices rise or fall, so will the value of this part of your portfolio. Can I change my investment choice? You may buy and sell investments at any time. We won t charge you for any switching within our own Portfolio funds. For all other investments you hold your first 25 deals a year are free, however, you ll pay any charges made by our custodian and/or, by another custodian/investment manager. One deal is one sale or one purchase of a fund or investment. For subsequent deals we ll apply a charge. We review our charges each year. To find out the current charges, contact our Client Relations Team. You can find their contact details on page 10. If a fund manager feels there s a definite trend towards more people selling units in the funds than buying units, they may change their valuation basis to reflect this. They may also, but not necessarily, delay acting on instructions to switch/cash in your investment. You can find more details on this in the policy conditions booklet. You ll receive a copy of the policy conditions booklet once your bond is set up, but if you d like a copy now, please ask your financial adviser. What is the cash account? If you invest with other investment providers, we ll also set up a separate cash account within your bond. We recommend that you hold 5% of your investments in the cash account to cover charges, withdrawals and deals. In certain conditions we ll insist on this as a minimum limit. In some circumstances we ll require you to top up your cash account and we reserve the right to sell assets of the portfolio to do this. Even where this isn t the case, it s your and your investment adviser s responsibility to make sure that there are sufficient funds in this account at all times to cover any liabilities. Where your cash account is in credit, the rate of interest on the cash account is linked to the base rate of the currency of the account. This is reduced by a margin, which we set and which is reviewed every six months. You can find details on our website. We ll calculate interest on the cash account on a daily basis. The rates of interest that we ll apply will be based on the rates of interest available to us. You can ask us for the rates of interest that apply to the cash account at any particular time. We can change the published rates from time to time. You can find the current rates on our website What happens to my Wealth Management Portfolio if I die? The Wealth Management Portfolio is a bond that is made up of multiple life assurance policies. If you re the last or only person covered by the bond we ll pay out a cash sum of 100.1% of the value of each policy. If there are other people covered by the bond it will continue until the death of the last person covered. At this time, we ll pay out 100.1% of the value of each policy. If you alone own the bond when you die the bond will continue under the ownership of, or we ll make the payment to your executors. If you own the bond jointly with another person the bond will continue under the ownership of, or we ll make the payment to that person. If the bond is set up under trust, the bond will continue under the ownership of, or we ll make the payment to, the trustees. A number of trusts are available which may help you minimise your inheritance tax liability. These trusts are for customers who live in the UK only and your financial adviser will be able to explain which of these trusts matches your requirements. 05

6 Questions and answers Where can I find out about the product charges? You can find details of the charges in your personal illustration. We charge for managing and administering your bond. We recover these and any other charges by making deductions from your bond. We may vary these charges where we have a valid reason. If we do vary our charges, we ll write to you to let you know. If you invest with other investment providers, there will be further charges from the underlying investments you and your financial adviser (or investment adviser) choose to invest in. However, we may negotiate reduced charges on these for you. You ll pay charges made by our custodian and/or by another custodian/investment manager. You can contact our Client Relations Team for further information and you can find their contact details on page 10. There may also be charges associated with appointing or changing a custodian/ investment manager. Please contact your financial adviser and/or your investment platform for details. If we need to do a currency conversion, we ll do it as soon as we can at our custodian bank s exchange rate. We ll make a small charge for doing this. You can find out more details in the policy conditions booklet. Please speak to your financial adviser if you want a copy of the policy conditions before you take out the bond. We ll pay/charge interest on the cash account, which we set and review every month. You can contact us to find out the current interest rate(s). Can you facilitate adviser charging? We can faciliate the payment of adviser charges you ve agreed with your financial or investment adviser in relation to your bond if you complete an adviser charge instruction.once the adviser charge(s) have been deducted, we ll hold it as agent for onward payment to your financial and/or investment adviser. This means that, once it has been deducted, it has been paid to your financial and/or investment adviser and we can t change or return it. Where the adviser charge is taken from your bond as a withdrawal across policies, it will count towards your yearly 5% tax-deferred allowance. For more information on the options and the tax consequences, please speak to your financial or investment adviser. Can I change my mind? After you ve invested, we ll send you a notice telling you of your right to change your mind and how to cancel. You ll then have 30 days to cancel your investment. If you decide to cancel, we ll give you your money back. Please remember that this may be less than you invested if the value of the underlying investment has fallen during this time and the amount you get back will always be the lesser of: n the original premium minus any adviser charges we ve been asked to facilitate from the bond as well as the costs we ve incurred in buying and selling your underlying investment; or n the value of the bond If you wish to reclaim the adviser charge on cancellation then you should contact your financial and/or investment adviser. Also, if you ve chosen to link your bond to investments that can t be sold quickly, you may not be able to get your money out straight away. If you don t cancel, your bond will continue. What about tax? The following information is relevant if you live in the UK. If you select the European portability option we ll provide information on the tax regime in the new country you ll be living in when you move. We don t provide tax advice, so we strongly recommend that you seek professional tax advice in the new country you move to. Any growth on or income from the investments within your bond won t be subject to income tax or capital gains tax in Ireland, although some of the income received on the underlying investments may have been taxed at source. So the bond will grow virtually free of tax. Chargeable gains You may be liable for income tax if there s a chargeable gain on your bond. Among other things, this could happen when you cash the bond in or if you withdraw more than the taxdeferred yearly allowance of 5% of the amount invested across all policies. If you don t use your full allowance one year, you can carry the remainder forward for use in following years. The allowance continues until it s used up an amount equal to the amount you ve contributed to your bond. 06

7 Questions and answers If there s a chargeable gain, you ll have to include it in your taxable income. If you qualify for income tax age allowance, in some circumstances, a chargeable gain may increase the tax you pay on your other income. Also, a chargeable gain may affect your entitlement to children s tax credits and other means-tested tax credits and benefits. Your financial adviser can give you more information on chargeable gains and the current tax rates for gains. Inheritance tax If the bond isn t placed in a trust, it will form part of your estate on death and may be liable to inheritance tax. If the bond is placed in a trust, the type of trust and when it was established will decide whether the bond forms part of your estate and the amount liable to inheritance tax. Please ask your financial adviser for more information. Legislation may change and this may affect the tax status of this bond. Any reference to taxation in this document is based on our understanding of current taxation law and practice in Ireland, UK, France, Italy and Spain as at May Our current understanding is that HM Revenue & Customs will recognise that the returns on investment bonds issued by us will be subject to the taxation applicable in Ireland and won t be taxed on the UK standard basis. Please contact your financial adviser for more information. What might I get back? We don t guarantee the amount you get back. What you get back will depend on several factors, such as: n how much you invest n how long you invest for n the performance of the assets and funds you and your adviser choose n any charges we may apply n the amount you withdraw Your personal illustration gives you an indication of what you could get back. How will I know how my Wealth Management Portfolio is doing? We ll send you a statement each year telling you the current value of your bond. Plan view If you use our custodian you can check your investment portfolio(s) online with our Plan View service. This free, fast and easy-to-use tool lets you: n see a valuation and summary of your portfolio n check your portfolio terms and details n change your address details You can access Plan View through our online services. If you re not already registered then visit to sign up. To find out how our Portfolio funds are performing, you can check our prices daily on the fund pages of our aegon-ireland-funds.html. 07

8 The European portability option What is the European portability option? We ve designed the European portability option to help make sure that income tax efficiency is maintained for you when you invest in the bond when a UK resident and subsequently become resident in France, Italy or Spain. It s your responsibility to make sure that you pay the right taxes in whichever country you re tax resident, including income tax on bond gains. It s available to individuals only. To ensure you take advantage of the income tax efficiency achieved by the European portability option, it s your responsibility to tell us when you re moving. If your date of move is in the next three months, you should complete the relevant European portability option section on the main application form. If you don t know the date you re moving yet, or it s more than three months in the future, you need to contact us in advance. Our contact details are in the How to contact us section later in this document. If you move to France, Spain or Italy but don t tell us you want to take advantage of the European portability option you may not receive information from us quickly enough to meet your local income tax compliance obligations. If you take advantage of the European portability option for France there are strict time limits for reporting the taxable element of any withdrawals to the tax authorities. It s your responsibility to make sure you request withdrawals early in the month to allow us to action your request in time and send you the relevant information to meet your tax reporting obligations. Please contact us if postal delays mean that you haven t received the information you need in time so we can see if we can provide the required information in another way. Please note that if you ask us to facilitate adviser charge from your bond, this will be paid at the end of the month. When can I make use of it? It s available to you at any time for as long as you hold your bond. The European portability option is only available if you re moving from the UK to France, Italy or Spain. If you ve moved, for example, from the UK to France and then subsequently move to Italy the European portability option won t apply automatically. In this circumstance you should contact us before you move. It s your responsibility to tell us when you move. We ll provide the taxation information based on the country you tell us you re living in. This information will include: At the point you move: n a checklist detailing any requirements prior to leaving the UK, and on arrival in your new country of residence n a factsheet detailing the tax rules in your new country of residence Ongoing, after you ve moved: n statements of the taxable amount for the country you re moving to n chargeable event certificates for the UK Are there any investment restrictions? There are no extra investment restrictions if you re moving to France or Italy. Your bond will be able to invest in the same assets as you invest in while in the UK. If you re moving to Spain you can have either a qualifying or a non qualifying bond. A qualifying bond benefits from tax deferral, whilst a non qualifying bond is taxed yearly. There are certain restrictions from the point you set up your bond if you re going to be moving to Spain and want your bond to be qualifying so that it benefits from tax deferral. For more information on this, see the Moving to Spain section on the following page. If you take advantage of the European portability option for Italy and intend taking withdrawals, you should do this by taking them across all policies. If you cash in individual policies you ll be liable to tax. 08

9 The European portability option What information will you provide me with when I move? When you set up your bond we ll send you a welcome pack. The information in this pack will include, amongst other information: n a moving abroad checklist this will provide details about what you need to do in connection with your bond before you leave the UK and what you need to do once you ve moved n a tax factsheet this will tell you more about the tax regime in the new country you live Moving to Spain If you re intending to move to Spain now, or at some point in the future, you should read the important information below as if you want your bond to be qualifying certain conditions apply at the point you set up your bond. n If you re moving to Spain, your bond will only be qualifying, which means that you ll get income tax deferral on your bond, if your asset selection is restricted so you can only invest in funds that are Undertakings for Collective Investments in Transferrable Securities (UCITS) or deposits from European Economic Area deposit takers. Your financial adviser will be able to give you more information on what these funds are. n The minimum investment you can make is 75,000 if you want to make this UCITS restriction. However, if the value of your bond subsequently falls below 75,000, there is no requirement to disinvest from UCITS funds. n If you prefer, you can invest in any of the other funds, or fund ranges available through our Wealth Management Portfolio and move to Spain. However, if you do this, your bond won t benefit from tax deferral. It will be taxed yearly under what s known as the imputation regime. Your financial adviser will be able to give you more information on this and the relevant tax issues. n If you ve made additional investments to your bond at any time you won t be able to take advantage of the European portability option for Spain. Also, once you ve taken advantage of this you won t be able to make additional investments to your bond and you d need to take out a new Wealth Management Portfolio. 09

10 How to contact us If you want more information on your bond, please contact us by post, telephone, fax or at: Aegon Client Relations Team IFSC House Custom House Quay Dublin 1 Ireland We may record and monitor any calls to us for security purposes, to help improve our service standards and to resolve any complaints. Please be aware we re not allowed to give any financial advice but we can help with any questions you have about your bond. If you wish to make an additional investment, a one-off withdrawal or fund switch, or to cash in your bond, please contact us through your financial adviser or your investment adviser. Phone: lo-call Fax: client.relations@aegon.ie 10

11 Other information How to complain If you d like a copy of our internal complaint-handling procedures, please ask us. If you ever need to complain, write to us at the address given in the How to contact us section. If you re not satisfied with our response, you can then complain to: Financial Services Ombudsman s Bureau 3rd Floor Lincoln House Lincoln Place Dublin 2 Complaining to the Financial Services Ombudsman s Bureau won t affect your right to take legal action later on. About us We ve been managing money for people throughout Europe for more than 10 years. In that time we ve become a substantial and experienced company, managing just under 4 billion of funds for over 19,000 investors (as at 31 March 2014). Aegon Ireland plc is on the Financial Services Register (No ). Special risks This document highlights the key risks associated with our Wealth Management Portfolio. Time limits We ll let you know of any time limits that may apply and that aren t covered here or in your personal illustration. Law Your Wealth Management Portfolio will be set up under, and governed by, the law of Ireland. Communication Our contract with you is in English and all future communication about it will also be in English. Client categorisation Aegon categorises all of our clients as Retail clients under the Financial Conduct Authority rules for all services and transactions. This helps us to make sure that you receive appropriate disclosure documents from us and that you are made aware of everything you need to know in a timely fashion. Compensation If this product was recommended to you by a financial adviser, you may have a legal right to compensation if it s established that the recommendation was unsuitable when it was made. If Aegon Ireland plc becomes unable to meet its liabilities, a bondholder who was habitually UK resident when the contract started will be covered by the provisions of the Financial Services Compensation Scheme. This depends on the type of business and the circumstances of the claim. Insurance business of this type is generally covered for 100% of the value of the whole claim, without limit. You can get more information about compensation arrangements from the Financial Services Compensation Scheme by calling or visiting fscs.org.uk Once you ve completed the relevant application forms, you must let us know if there are any changes between then and the date your bond starts. Terms and conditions This document only gives you a summary of the main points about your Wealth Management Portfolio. It doesn t include all the definitions, exclusions, terms and conditions. You can find full details in the policy conditions booklet. Please speak to your financial adviser if you want a copy of the policy conditions before you take out the bond. If we change any of the terms and conditions of your Wealth Management Portfolio, we ll write to you to let you know. 11

12 As Lead Partner of British Tennis, Aegon is helping to transform the future of the sport by supporting young talent, national teams and events throughout the country, including the Aegon Championships at The Queen s Club. Find out more at aegontennis.co.uk Aegon is a brand name of Aegon Ireland plc. Aegon Ireland plc, registered office: 2nd Floor, IFSC House, Custom House Quay, Dublin 1, Ireland. Registered in Ireland (No ). Authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. An Aegon company Aegon Ireland plc C DUB /15