The international Insurance Policy. Kenforth Life Insurance Limited. trusted to deliver...

Transcription

1 The international Insurance Policy Kenforth Life Insurance Limited trusted to deliver...

2 Introduction Sophisticated clients have for many years sought to legally protect their wealth for their families and others. In particular, Trusts have been used in common law jurisdictions. Life assurance is also universally effective. One major difference is that whereas Trusts are essentially equitable arrangements between a settlor, trustee and beneficiary, life assurance is a contractual arrangement, between a Policyholder (owner) and the Life Insurance Company. Usually the Life Insurance Company will invest in assets to meet its contractual liabilities (determined by the value of the assets) at some future point in time, to the Policyholder. A life assurance policy will provide certainty to the investor as the Life Insurance Company is usually well regulated and protected by strict rules relating to solvency and as to who manages the company. Furthermore, the Life Insurance Company is the legal, equitable and beneficial owner of the assets of the policy and the Policyholder has no interest in those assets, nor do they have the power to enjoy those assets or control them indirectly or directly. This makes a life contract a very potent investment structure for the purposes of legal tax deferral, continuity and succession planning. In certain instances, a life assurance policy may be owned by a Trust and in this situation the Trustees would be the Policyholder of the contract.

3 The International Insurance Policy The International Insurance Policy (IIP) from Kenforth has been designed as a single premium whole of life policy meeting the requirements of the laws of the Commonwealth of the Bahamas. The parties to the Policy (contract) are: the Policyholder (any natural or legal person or trustee); the Life Insurance Company - Kenforth Life Insurance Limited; the Lives Assured (multiple) written on a last life basis; and in certain circumstances the Policyholder may appoint a Beneficiary to the policy other than himself. Each policy has a segregated and protected investment account or portfolio, which may be invested in many ways. The IIP will only crystallize or mature in the event of the death of the last life assured and you may appoint a life assured at any time. The death benefit is the value of the underlying assets plus $100, less any outstanding charges which are outlined in this brochure. The death benefit will normally be paid to either the Policyholder or, where appointed, the Beneficiary. A Beneficiary can be changed or revoked at any time by the Policyholder. The IIP can be surrendered either partially or in full, at any time.

4 Investment Options The Policy is designed to be flexible in terms of what investments it may hold and may invest in: investment funds; structured investments; direct investments; fiduciary deposits; and private company shares. All will be subject to the approval (and made under the control) of Kenforth however it is possible for you to: manage your portfolio with assistance from your financial adviser; or appoint a discretionary asset manager to select the investment options according to a pre-determined risk profile. Furthermore, subject to Kenforth s approval a choice of Custodian Banks is also available. There is virtually no limit to the differing options available - please contact your financial adviser or Kenforth for further information.

5 How to apply Complete a simple application form which is available on request through our secure portal; a minimum investment or asset value equivalent of EUR 250,000 or currency equivalent will form the insurance premium or consideration to establish the IIP contract; the application will be subject to Kenforth s KYC and AML requirements which reflect international standards; once accepted by Kenforth a policy document will be issued and a segregated policy account will be opened with the agreed Custodian Bank or investment manager; and an opening statement will be issued to the Policyholder or nominated financial adviser and valuation and communication protocols defined.

6 The Benefits Kenforth is based in the Commonwealth of the Bahamas, a British territory which is highly stable and provides a protective environment in which to operate. It is highly respectful of the confidentiality of legal persons and their fundamental ability to trade and invest in a manner that is legal and that may result in their ability to legally defer or mitigate taxation charges. Kenforth is not required to deduct any tax at source and thus (other than withholding taxes on income from investments levied by other countries) its investments are able to roll up free of any taxes in the Bahamas. A Policyholder s liability to taxation will depend on their own personal circumstances, residency and domicile and the laws of their home country or countries. We strongly recommend that policyholders seek detailed taxation advice. A Kenforth IIP policy: is outside the scope of the EU savings directive; offers mitigation of Swiss stamp duty on securities transactions; offers possible mitigation and or deferral of income, capital taxes, gift, estate and inheritance taxes; provides confidentiality and respect for privacy; removes the requirement to obtain probate on a group of assets; gives the opportunity to structure assets in a compliant form, for example Sharia compliant; provides the possibility to avoid and structure assets outside of forced heirship provisions; allows Policyholders to take withdrawals either partial or full at any time (subject to certain criteria); provides ease and security of administration; allows access to investment strategies that are highly bespoke to the Policyholder s wishes; may appoint a Beneficiary; may be used as a savings or pension top up; and may be pledged in a back to back transaction up to an agreed amount of the policy value.

7 About Us: Kenforth Life Insurance Limited (Kenforth) is licensed by the Insurance Commission of the Bahamas as an External Insurance Company. Registration number Kenforth is authorised to carry on the following classes of insurance business in the Bahamas Variable Life Insurance; and Variable Annuity. It is a condition that each policy is held in a segregated policy account. Policies may be denominated in the following currencies Assets Surrender Beneficiaries Pledging / Back to Back Duration Restrictions Protection Policy Terms and Conditions Past performance CHF / EUR / USD / GBP All bankable assets At any time No restriction Permitted up to an agreed amount of the IIP NAV Whole of life (last life to die) Kenforth policies are not available to: Residents and Citizens of the USA Residents of the Bahamas Residents of Switzerland Residents of Liechtenstein Policy assets are required to be held in segregated accounts for each policy. There is no exposure to the general trading liabilities of Kenforth or other Policyholders Contains the full terms of the contract and may be obtained from Kenforth Is not a guide to future performance Kenforth does not give investment, legal or tax advise and cannot accept any responsibilty or liability for the taxation implications for any Policyholder in any jurisdiction. Kenforth is not subject to the same regulatory systems that may apply under a Policyholder s own jurisdiction and accordingly rules and regulations that the Policyholder is familiar with may not apply in connection with Kenforth policies.

8 Who is Kenforth? Kenforth was formed in 2008 and is now owned by the SMP Partners Group of Companies. A group with over thirty years experience and success in international financial services. Security Contact Us For further information on the Kenforth IIP please contact your financial adviser or SMP client relationship manager or your discretionary investment adviser or Kenforth directly; Kenforth operates to the highest international standards of Governance, compliance and integrity, in all its dealings. This ensures that assets held in the long term business fund always match its liabilities to its Policyholders. Kenforth s solvency is managed in accordance with the requirements of its regulator, the Insurance Commission of the Bahamas (ICB). Predrag Cukic Director, Business Development SMP Partners SA Bahnhofplatz Zurich, Switzerland Tel Fax Mobile predrag.cukic@smppartners.ch Head Office PO Box N-3026 Winterbotham Place Marlborough and Queen Streets Nassau, The Bahamas Tel (1-242) Fax (1-242) info@kenforthlife.com This solvency is monitored by its Directors and the regulator on a monthly basis. Kenforth is audited by an international firm of Chartered Accountants. Kenforth is run by a Board of Directors who are deemed Fit and Proper by the ICB. Kenforth utilises an industry acknowledged life insurance application and applies business processes and controls which ensure security, confidentiality and efficiency.

9 The information provided in this brochure is intended for guidance only and should not be applied to individual circumstances without professional advice. No liability or responsibility for loss to any person acting, or refraining from action, on the basis of any material in this publication can be accepted by any member of Kenforth Life Insurance Limited or the SMP Partners Group of Companies. Kenforth Life Insurance Limited is licensed by the Insurance Commission of the Bahamas as an External Insurance Company. Kenforth Life Insurance Limited PO Box N-3026 Winterbotham Place Marlborough and Queen Streets Nassau The Bahamas Tel: (1-242) Fax: (1-242)