Friends Provident has launched its Friends Wealth Solutions bond as the provider consolidates its wealth management range.
The bond, which allows customers to make regular withdrawals, requires a minimum investment of £10,000 and offers access to more than 100 funds, including 11 ethical funds.
The provider offers a special offer launch extra allocation rate of 0.5% until 30 June 2008 and a 2.2% loyalty bonus paid in year 10. The bond requires a 1.4% establishment charge taken from the bond in each of the first five years.
The Friends Wealth Solutions bond also offers investors the option of using the Discounted Gift Plan to simplify inheritance tax (IHT) planning for customers aged between 18 and 84 with £50,000 to invest.
Customers with IHT problems can use the Discounted Gift Plan to reduce the size of their estate so their beneficiaries pay less tax. Customers can invest from £50,000 and choose the income they want to take for the rest of their lives. Friends Provident then underwrites the customer and uses a revenue-approved discount factor to reduce the size of taxable estate.
Christine Foyster, head of wealth management marketing at Friends Provident, says: “Our customers know what the discount value is rather than calculating the value of discount after they have died.”
The bond allows advisers the option of either initial commission ot a combination of initial and trail commission. If the adviser opts for the 1% fund based renewal commission (FBRC), with the customer’s agreement, tjhe provider will apply an additional 0.5% annual management charge.
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Joined as head of strategy, multi asset, in June
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