Now with an extra 0.5% Renewal Commission and increased online access.
Our Flexible Options Bond is a great investment option for you and your client. With:
- An additional 0.5% Renewal Commission.
- Increased access to Trusts online.
Additional 0.5% Renewal Commission
We're now offering you the option to take up to 0.5% additional Renewal Commission through an explicit charge to the policyholder's fund - the Fund Related Adviser Charge (FRAC). This facility is available in addition to our 0.25% and 0.5% implicit fund based renewal commission options
Clients must agree to this charge and details will be shown in the illustration.
So whatever your business model, the Flexible Options Bond offers you a solution to meet your own business needs while still delivering for your client.
The Fund Related Adviser Charge(FRAC) - Enhanced Commision Structure
- Applies to all Flexible Option Bonds taken out on or after 15 October 2007 and any increments made to these Bonds.
- Commission can be increased in increments of 0.05% to a total of 0.5% additional Renewal Commission.
- Payment of the FRAC will be made at the same time as implicit renewal commission, meaning it will be paid and calculated either: monthly, beginning policy month 13, or annually from the end of policy month 13 onwards.
- Once a policy has been set up on a particular commission basis it must remain on this basis - you can't elect to change it.
- The FRAC is funded by cancelling units under the Bond and the order of unit cancellation will follow our current practice. Please note that the de-allocation of units to pay for the FRAC increases the risk of the fund value being reduced.
- The current default commission options remain the same.
Example Fund Related Adviser Charge:
- 7.0% Initial Commission (IC) and up to 0.5% FRAC through an explicit charge to the fund*
- 5.75% IC plus 0.25% Renewal Commission. Renewal Commission can be increased up to a maximum of 0.75% through a FRAC (i.e. 0.25% + 0.50%)*
- 4.5% IC plus 0.5% Renewal Commission. Renewal Commission can be increased up to a maximum of 1.00% through a FRAC (i.e. 0.50% + 0.5%).*
*Includes the additional Initial Commission of 0.5% which is currently on offer.
Commission Calculator
Our commission calculator allows you to calculate different commission options which can be generated from the flexible menu of choices available to you with the Flexible Options Bond.
New and Improved Online Access
Another improvement to our Flexible Options Bond is increased access to Trusts online to help save you time and make your working life a little easier. You can now access online valuations and content information for Flexible Option Bond policies that are written under trust or assigned to a third party. This online system also allows you to email certain change requests directly to our Client Services Team.
