• No initial charge
• A percentage of your investment buys units in the funds you choose.
The more you invest, the higher the percentage:
Investment Amount = Up to GBP24,999 Percentage = 100%
Investment Amount = GBP25,000 to GBP49,999 Percentage = 101%
Investment Amount = GBP50,000 to GBP99,999 Percentage = 102%
Investment Amount = GBP100,000 to GBP199,999 Percentage = 103%
Investment Amount = GBP200,000+ Percentage = 104%
• FPI charge for managing your policy and the investments.
They take charges in the following ways:
– An establishment charge of 1.6% a year of your initial and any subsequent investment for the first five years following your investment, taken quarterly by cancelling units.
– An administration charge of 1.2% a year out of your unit value over the lifetime of your policy.
– As an early cash-in charge from your unit value (they may take this if you cash in units within five years of making an investment or additional investment).
• FPI express the early cash-in charge as a percentage of the value of units they cancel to make your payment:
Year units cashed in* 0
Early cash-in charge 5%
Year units cashed in* 1
Early cash-in charge 4%
Year units cashed in* 2
Early cash-in charge 3%
Year units cashed in* 3
Early cash-in charge 2%
Year units cashed in* 4
Early cash-in charge 1%
Year units cashed in* 5+
Early cash-in charge 0%
(*Number of complete years in respect of each investment.)
• For each of the first five years of your initial and any subsequent investment, up to 10% of each payment into your policy may be cashed in or taken as withdrawals without incurring this charge.
If you do not use part or all of your 10% allowance, the unused portion will be carried forward to subsequent years.
• If you exceed the allowance when you cash in your policy or take regular withdrawals, the charge we take will be a percentage of the value of units we cancel to pay the additional amount that is above the allowance. The value of units cancelled includes an amount to cover the early cash-in charge.
• If you cash in your policy in full and your investment and any subsequent investment(s) is still within its initial charging period, an early cash-in charge will be taken from the payment equal to any establishment charges which would have been deducted had you not cashed in the policy.
Fund charges
• In addition to the administration charge, each fund has its own annual charge taken out of your unit value over the lifetime of your policy.
The charge will depend on the fund(s) chosen.
Optional Management Authority
• If you want to, under an optional management authority agreement, you can allow your adviser to choose and, if appropriate, switch the funds you invest in.
For this service, you pay your adviser, by regular withdrawals, a percentage of your unit value over the term of your policy, taken by cancelling units on either the policy anniversary or at the end of each policy quarter.
The percentage, which must be agreed between you and your adviser, can be 0.25% a year, 0.5% a year, 0.75% a year, 1% a year, 0.15% a quarter, 0.2% a quarter or 0.25% a quarter.
Tax considerations:
Friends Provident International is a tax-exempt insurance company registered in the Isle of Man.
Consequently, Friends Provident International is not subject to income tax, capital gains tax or corporation tax in the Isle of Man or the UK.
Their funds accumulate free of tax (apart from any withholding tax on investment income, deducted at source in the country of origin).
• Tax rules are subject to change and the extent of your tax liability depends on your country of residence and personal circumstances.
