Provider Scottish Mutual Assurance Product Tailored Flexible Trustee Investment Plan Produ...
Scottish Mutual Assurance
Tailored Flexible Trustee Investment Plan
Product distributed through IFAs
Commission basis of this product option
Availability of plan
This product is a non-earmarked investment vehicle for the trustees of Self Invested Personal Pension Schemes (SIPPS) and occupational pension schemes, in particular Small Self Administered Schemes (SSASs).
Min/max term for tranche
The FTIP will be open ended with no set term.
Minimum initial investment accepted (£)
Premiums can be paid at any time; one-off single premiums, recurring single premiums paid on a regular basis and ad hoc additional single premiums.
All premiums will be paid into one policy, ie there will be no need to set up a separate policy every time a premium is paid
The minimum initial single premium is £10,000.
Premiums will be collected by variable direct debit, cheque or by telex transfer
Share exchange will also be possible.
Minimum additional investment accepted (£)
The minimum additional single premium is £2,500.
Regular premiums accepted
Where there is a commitment to pay premiums on a regular basis the minimum regular premium will be the equivalent of £500 per month.
Regular premiums can be paid monthly, quarterly, half-yearly and annually.
There is no service charge.
One-off installation fee (£)
There is no installation fee.
Initial charge incorporated in the bid/offer spread
There is no bid/offer spread. Units will be bought and sold at the bid price.
Annual fund management charge for internal fund links (%pa)
The standard management charge will be 0.6% per annum on all pooled funds apart from the UK Tracker Fund which will be 0.5% per annum. This will be calculated and accrued daily. It will then be taken by cancelling units monthly in arrears.
The standard management charge will apply to all policies with a unit value - not transfer value - up to £500,000. A reduced management charge will apply to the whole policy as the policy unit value increases as follows:
Policy unit value Management charge pa
£499,999 or less 0.60%
£500,000 to £999,999 0.55%
£1,000,000 and above 0.50%
The management charge will depend on the policy's unit value that in turn will depend on the premiums paid, fund performance and withdrawals.
This means that a policy can move up or down the management charge bands.
The UK Tracker fund's management charge will be fixed at 0.5% per annum.
Early surrender charge
There is no surrender charge.
Allocation rates (%)
The allocation rate is 100% throughout.
Number of fund links available
There are 16 unitised fund links available in total.
UK Equity Fund
Corporate Bond Fund
North American Fund
Far Eastern Fund
Long Gilt Fund
Index Linked Gilt Fund
Gilt and Fixed Interest Fund
UK Index Tracker Fund
External Fund Links available
External fund links are not available.
Unitised with-profits fund available
A new pooled With-Profit Fund is available. The bonus rate will allow for the fact that there will be no management charge built into the unit price.
There will be a monetary limit on MVA free withdrawals in any policy year. In any year, it will be determined by applying the (appropriate) last declared bonus rate to the With-Profits unit value ' not transfer value ' at the commencement of that policy year.
Once the aggregate withdrawn in a policy year equals this monetary limit all subsequent withdrawals will be subject to a MVA, if applicable.
This monetary limit will be calculated at the start of each policy year.
If a premium is paid during the policy year the limit will be revised based on the size of the premium paid.
This monetary limit will still apply even if withdrawals are expressed as a percentage of the unit value.
It will not be possible to carry forward unused MVA free withdrawal entitlement from previous policy years.
Terminal bonus may be payable on withdrawals, despite the absence of an MVA on withdrawals up to a specified limit.
Equity linked funds with a guarantee available
Controlled Risk Managed 95% and 100% Guaranteed Fund
Number of free switches per year
The whole part of an FTIP invested in a particular fund can be switched to another fund.
Partial switches out of a fund are allowed with no limits on the amount being switched or the amount remaining invested in the fund.
There are no restrictions on the timing of switches to and from the With-Profit Fund.
If applicable, a switch from the With-Profit Fund will be subject to a MVA or qualify for terminal bonus.
There is no administration charge on switching.
Minimum residual fund after switching (£)
There are no limits on the amount remaining invested in the fund after switching.
Options available on the plan
Withdrawals by unit cancellation can be made at any time and will be treated as a partial transfer.
A regular withdrawal facility may be set up. Regular withdrawals can be made monthly, quarterly, half-yearly or annually. Regular withdrawals are likely to be used for income drawdown.
Regular withdrawals can either be expressed as a fixed monetary amount or as a monetary amount based on a fixed percentage of a policy's unit value ' not transfer value ' at the time the withdrawal is made. It will be possible to change the form and amount of regular withdrawal at any time.
There will be no limit on the level of withdrawal that can be made in any policy year although, where applicable, there will be a limit on the level of withdrawal that can be taken free of backend charges and free of any MVA.
A policy year will be determined by the first premium that is paid to an FTIP policy.
Regular and ad hoc withdrawals will normally be taken by cancelling units across all funds. It will also be possible to take withdrawals from specific funds in a stated proportion.
Units will usually be cancelled on a 'last in, first out' basis.
If withdrawals are on a 'last in, first out' basis then this will maximise the benefit to the FTIP policyholder of withdrawals being free of backend charges and MVAs within specified limits. The backend charge applied to withdrawals in excess of the limit will however be maximised, and MVAs will more likely be applied.
Share exchange will also be possible.
Alternative commission shapes available
It will be possible to build premium-based commission into the Tailored FTIP in return for a one-for-one reduction in the allocation rate subject to a maximum of 6%, in steps of 0.05%.
Indemnified premium-based commission
If a regular premium is being paid ' on either version ' it will be possible to indemnify the premium-based commission.
A regular premium is defined as a premium paid on a monthly, quarterly or half-yearly basis. Annual, single and ad-hoc premiums will be treated as recurring single premiums.
Direct fund-based commission
On either version, it will be possible to add direct fund-based commission by unit cancellation. It will however be paid on the policy anniversary as defined above rather than on the anniversary of each premium.
Any rate will be available between 0% and 1% in steps of 0.05%.
Direct fund-based commission will be expressed as a percentage of the policy unit value ignoring any MVA or terminal bonus, if applicable.
No MVA, terminal bonus or backend charge will apply on cancelling units to pay direct fund-based commission.
It will not be possible to mix indirect and direct fund-based commission.
£92bn transferred since 2015
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