Scottish Equitable International has launched a capital redemption bond based on its Dublin Private Client Portfolio that targets the corporate market.
The plan can be held without interruption over a fixed term of 99 years. This gives companies greater control over when they make withdrawals or cash in the bond, and therefore how much tax they pay on the proceeds. For example, a company could time a withdrawal or encashment to coincide with a period when its taxable profits attract lower corporation tax.
Steve Whalley, product marketing manager at SEI, said: 'Capital redemption bonds are gathering importance in the offshore market. They offer greater flexibility, and are often a more practical option for corporate investors.
'There has been a massive demand from intermediaries for us to launch a product of this type and we are responding to their needs. This new product will enhance the range of products and marketing support we offer intermediaries targeting the corporate market.'
The launch marks the start of its next phase of development for SEI's Dublin base.
David Healy, managing director at SEI, said: 'The corporate market is one of our target segments and this new product is central to our strategy. We are entering an important new development phase, which will enable us to fine tune our product range to meet the emerging needs of the offshore market.'
Minimum investment is £75,000. Charges are 1.8% of premium each year for five years. Standard commission is 5.75%.
The move follows on from previous Dublin launches that includes its 'new generation with profits' and the Dublin Investment Portfolio.
Total sales to the end of July have been more than £250m, up £25m from the previous year. SEI is planning further launches from Dublin during the autumn.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
Follows string of appointments
Follows acquisition of BlackRock's DC platform
‘In the know’
£116.8m of benefits received by customers