The Old Mutual International Executive Investment Bond is issued in either a single policy or a “cluster of polices” to enable tax planning benefits.
The initial charging term is fixed (based upon the commission and charging structure agreed) at the time of the policy activation.
This cannot be varied or waived; therefore, early encashment of the policy results in a “surrender charge” or “early withdrawal charge” unless you ensure you have a zero commission/cleanly priced version.
The Old Mutual Executive Investment Bond (EIB) Key Features
Unlimited Choice of Funds – via an approved list and the option of open architecture.
However, funds must be approved by OMI, including in-house and external funds and some funds are “mirror funds” which means you are buying a replication of a fund manager’s fund, not the underlying fund, which does lead to price discrepancies and significant underperformance (of the mirror fund) over time.
We note too, that some funds on the platform are unregulated and very high risk.
Minimums - Lump sum minimum of £50,000/$75,000/€75,000
You can make additional lump-sum payments into your policy at any time with a minimum of £2,500. However your will pay any initial fund charges on all contributions.
Payments can be made in a choice of 13 currencies.
Currency - The Old Mutual International (OMI) Executive Bond can be set up a policy in 1 of 7 currencies including Pound sterling (GBP), Euro (EUR), United States dollar (USD) Swiss franc (CHF), Australian dollar (AUD), Hong Kong dollar (HKD) and Japanese yen (JPY).
Eligibility - The Old Mutual International (OMI) Executive Bond is a regular premium, whole of life, life assurance contract issued by Old Mutual International (OMI). It is available to most international investors outside of the main regulated territories such as the UK, the USA and Australia.
Charges - will depend on the type of plan you take out from Old Mutual International as they offer different charging structures largely linked to the amount of commission or earnings being taken by the third party salesman or adviser.
See the FAQ for more details on fees and charges.
Pensions (QROPS and SIPP): If the OMI Executive Bond is used within a QROPS or SIPP then there will be additional set up and ongoing fees for the life of the policy.
It makes no sense to embed the bond within a QROPS or SIPP, other than to generate additional fees for the adviser of salesman.
Early Surrender: a full encashment will result in exit penalties being applied in the early years through surrender charges linked to the term of the policy. In effect this means that on polices the first 5, or more typically 8 – 10, years high surrender charges will be imposed.
These can be eye watering.