Wealthtime Offshore Bond. Questions and Answers.

Offshore Bond.

Is the Offshore Bond appropriate for you?

As part of your Wealthtime Private Client Service, Wealthtime offers access to Offshore Bonds provided by Utmost Limited, Old Mutual International and Canada Life International. Please read your chosen Offshore Bond Terms and Conditions in conjunction with their Key Features. It may be possible for you to invest in other Offshore Bonds through the Wealthtime Private Client Service as long as the Offshore Bond provider is able to comply with our requirements and we with theirs. Again, you will need to study their documentation carefully before making any decisions on suitability.

An Offshore Bond may be appropriate for you if you want the freedom to invest in a range of investments in an offshore environment. You will need to be aged 18 or over and to be resident for tax purposes in the UK. You will also need to have a Financial Adviser. What follows is a general summary of the features of Offshore Bonds and how they work within the Wealthtime Private Client Service. For more detailed information please refer to the Offshore Bond provider’s product literature and terms and conditions.

You should ask your Financial Adviser whether an Offshore Bond is suitable for you. Make sure that you understand any ‘Risks’ shown in Wealthtime's Key Features document and the Key Features document of your Offshore Bond Provider and speak to your Financial Adviser.

What are the Aims of the Offshore Bond?

  • The Offshore Bond aims to offer access to investment expertise from around the world.
  • The Offshore Bond is legally an insurance policy and normally provides either a whole of life assurance policy that pays a guaranteed cash sum on death or a capital redemption policy with no life assured that pays a guaranteed cash sum after 99 years.
  • The Offshore Bond normally allows you to take one-off or regular cash withdrawals if you choose but there may be tax consequences. Please refer to the Offshore Bond provider’s documentation.

What is your Commitment?

  • Before investing in the Offshore Bond you should ensure you understand the concept and risks involved. You will need to discuss these with your Financial Adviser as Offshore Bond providers do not normally allow direct access without a Financial Adviser.
  • You will need to make a single investment to start the Offshore Bond, of at least whatever the Offshore Bond provider requires as a minimum.
  • You should be prepared to maintain the Offshore Bond for the medium to long term.
  • You may make additional investments in the future but these are not compulsory.
  • You need to notify us of any change of address, residence or citizenship.
  • You are the bond holder. It is therefore essential to refer to your chosen Offshore Bond provider’s key features document and their terms and conditions.

What are the Risk Factors?

  • The amount you get back from your investment will depend on the performance of your chosen assets. Please remember that the price of an asset may go down as well as up and will vary from day to day.
  • Past performance is not a guide to future performance.
  • Tax legislation and practice may change in the future. Any changes may affect your tax position.
  • The return on your investment may be lower than that shown in your illustration as supplied by your chosen Offshore Bond provider and the benefits you receive may be less than you hoped for.
  • Your circumstances may change forcing you to cash in your Offshore Bond earlier than you expected, in which case you may get back less than you invested.
  • Any foreign assets will be affected by fluctuations in currency exchange rates.
  • If you arrange to take withdrawals from your Offshore Bond which exceed the investment growth, your investment will be depleted.
  • If you exercise your right to cancel the Offshore Bond within 30 days of receiving your cancellation notice, the amount you will get back will be reduced by any fall in the value of your investment and any external expenses incurred in carrying out the asset transactions.
  • If you or a trustee, if your bond is held under a trust, becomes resident or takes up citizenship in some jurisdictions, the tax treatment and/or reporting of your Offshore Bond may change. For example, under US law your Offshore Bond will not qualify as a life insurance contract and gains made each year will need reporting.
  • Any change in general interest rates could significantly affect the value of your investments.

These Key Features should be read in conjunction with your Offshore Bond Provider’s Terms and Conditions.

What are the permitted investment options?

You can invest in the assets of your choice within your chosen Offshore Bond provider’s current permitted investments list. Offshore Bond providers normally only allow investments in cash and collectives such as UK Authorised Unit Trusts and Open Ended Investment Companies (OEICs). Under the Offshore Bond there is normally the facility to use a Discretionary Investment Manager. Most have an approved list of who they will use.

For a full list of the current permissible investments please refer to the relevant permitted investments list of your chosen Offshore Bond provider or speak to your Financial Adviser.

Your Financial Adviser can assist you in making your investment choices.

Is Wealthtime regulated to give investment advice?

Wealthtime is not authorised to provide any advice on whether your choice of investments is suitable for you, or any guarantee as to the performance of these investments. You and your Financial Adviser are responsible for ensuring any investments made are in accordance with your chosen Offshore Bond provider’s rules.

Can the choice of investments be changed?

You can decide how your investment is allocated among the range of assets available and you can switch assets within your chosen Offshore Bond at any time. Your Financial Adviser will normally deal direct with the Offshore Bond provider. We will not pass on instructions.

What might be the return when the Offshore Bond is sold?

This will depend on the amount you invest, the performance of the assets you have chosen over the lifetime of your Offshore Bond, the amount of any charges and any cash withdrawals you may have taken. Your illustration will show you what you might get back.

The amount you receive will depend on the following factors:

  • How much you invested
  • The fund performance
  • Any fees and charges
  • Any withdrawals you have taken
  • The terms and conditions of the investment
  • The terms and conditions of the Offshore Bond.

Can cash be taken out?

You can take some or all of your investment out as cash at any time but there may be tax implications of doing this. Please refer to the Offshore Bond provider’s literature for further details. Please note that there may be a charge made by your Investment Manager/Financial Adviser. Please refer to the Offshore Bond provider’s terms and conditions for any charges that they may apply. You can choose to take regular withdrawals from your Offshore Bond and these can stop or start at any time by giving one month’s notice. You can choose to take a single lump sum withdrawal at any time but you should discuss with your Financial Adviser any tax implications before doing so.

How do I withdraw my money?

If you would like to make a withdrawal your Offshore Bond provider will send you a cheque for the amount of the withdrawal or it can be paid into another account in your name including your Designated Personal Investment Portfolio Bank Account. Please note that payment cannot be made to third parties.

Please also note that we cannot accept responsibility for any tax consequences of such withdrawals, which should be discussed with your professional advisers. Please also refer to your chosen Offshore Bond provider’s product literature.

How will I know what my Offshore Bond is worth?

Every six months we will make available to you a statement of your wealth within your Wealthtime Private Client Service including the value of your Offshore Bond.

Can the Offshore Bond be closed at any time?

You can close your Offshore Bond at any time provided this request is made in writing to Wealthtime. Wealthtime will not apply a charge for closing the Offshore Bond. However, you will need to check with your chosen Offshore Bond provider or the underlying provider of your investment whether they will make a charge to sell assets. You can also contact your Financial Adviser to find this information. There may also be tax consequences.

However if you choose to close your Offshore Bond there will be no death benefit available and the guaranteed maturity value will cease to apply. You will need to contact your Financial Adviser to discuss your options.

What happens at the maturity date? (Capital Redemption Version or on death).

Please refer to your chosen Offshore Bond provider’s product literature.

What are the tax implications of an Offshore Bond?

Please refer to your chosen Offshore Bond provider’s product literature.

Can the Offshore Bond be set up under trust?

Please refer to your chosen Offshore Bond provider’s product literature.

How much is needed to open an Offshore Bond?

You will need to make a single investment to start the Offshore Bond, of at least whatever the Offshore Bond provider requires as a minimum.

Where can more information be found about the Offshore Bond?

For more detailed information on the Offshore Bond please refer to your chosen Offshore Bond provider’s terms and conditions and product literature.

How do fees and charges affect the Offshore Bond?

Your Offshore Bond will be charged in the way described in your chosen Offshore Bond provider’s product literature. The Offshore Bond provider’s administration and investment charges are taken from within your Offshore Bond.

In addition, there is a Fee for administering your Offshore Bond within the Wealthtime Private Client Service. Please refer to the latest Wealthtime Fees Schedule for up to date information.

In addition to these charges and Fees you will need to check whether your Investment Manager and Financial Adviser applies charges for their services. They should be able to supply full details of these charges and confirmation of how they will affect your investment on request.

Can I change my mind?

Your Offshore Bond will be opened when your application is accepted by your chosen provider. As a UK resident, once your chosen provider accepts your application you will be sent a cancellation notice detailing your right to cancel your Offshore Bond. You will be able to cancel your investment during a period which is normally 30 days after concluding the agreement with your chosen provider and receive a refund less any shortfall to reflect any fall in the value of the assets in the interim and any external expenses incurred in carrying out the asset transactions. You will be told of this right in more detail, including when it begins and ends and how to exercise it, in documents that will be sent to you at the relevant time. Your right to cancel will remain unaffected if any event beyond your control makes it impractical for you to communicate the wish to cancel. All decisions regarding your Offshore Bond should be taken with your Financial Adviser.

Can the Offshore Bond be shared with someone else?

You may be able to share ownership of your Offshore Bond with someone else subject to what your chosen Offshore Bond provider will allow. However, if the investment is an investment of Trust assets, all Trust assets will be owned by the trustees of that Trust. In addition, if the investment is an investment of Corporate assets, the company will own the assets on behalf of its shareholders.

Which legal jurisdiction applies?

Please refer to your chosen Offshore Bond provider’s terms and conditions to establish which legal jurisdiction applies to your Offshore Bond.

Can I claim compensation?

Your Offshore Bond Product will not be covered by the Financial Services Compensation Scheme but may be covered by the relevant offshore Compensation Scheme.

Please refer to your chosen Offshore Bond provider’s product literature and terms and conditions or contact them for further details.

How will you use my Personal Information?

Information supplied to us in connection with your Offshore Bond will be held in both electronic and paper records.

We will only use your data in accordance with your permissions on the Wealthtime Private Client Service Application Form and any other permissions you may subsequently give. All data will be held and used or disclosed by us subject to the Data Protection Act 1998 as amended and re-enacted.

For your chosen Offshore Bond provider, please refer to their own terms and conditions in respect of Data Protection.

You have the right to see certain information held for which a fee may be charged. You should make your request in writing to the address shown in the Contact Us section.

We may also give essential information about your account to others if necessary for regulatory purposes and to run your account, this may include, for example, Barclays, your Discretionary Investment Manager, your investment fund manager, your chosen Execution Only Stockbroker, your Financial Adviser, and your Financial Adviser’s network head office if Adviser Charge payments to your Financial Adviser are paid in this way. Information about you will be kept after your account is closed.

What if I have a complaint?

Wealthtime is authorised and regulated by the Financial Conduct Authority and as such is bound by its rules. If you have a complaint about the Wealthtime Service you should write to Mr Colin McCarthy at Wealthtime Limited, The Oak House, Barford Lane, Downton, Salisbury, Wiltshire. SP5 3QA.

If the complaint is not dealt with to your satisfaction then the matter may be referred to the Financial Ombudsman Service at Exchange Tower, London, E14 9SR. (Telephone: 0800 023 4 567).

Any such action will not affect your right to take legal action. For more information, you will find our Complaints Leaflet in the Literature Library.

In respect of the Offshore Bond provider, please refer to their website for details of their complaints procedure.

Any complaint regarding the advice given to you by your Financial Adviser should be referred to them for review under their own complaints process, details of which should already have been provided by them.

Important Notes

The information in these Key Features is not intended to constitute legal and/or tax advice. You should discuss the suitability of your investments with your Financial Adviser and must read the terms and conditions of your chosen Offshore Bond provider which will override these Key Features where different.

The Offshore Bond will be subject to a Letter of Instruction signed by you to enable us to administer the Offshore Bond within the Wealthtime Private Client Service.

The valuation of your Offshore Bond will be displayed on the Wealthtime website at www.wealthtime.co.uk by logging onto the Wealthtime Online Service but please note this will only be as accurate as the information we are supplied by your chosen Offshore Bond provider.

Wealthtime has no legal connection with any Offshore Bond provider and is unable to accept any liability for any matters other than those arising from its own administration. Both Wealthtime and your chosen Offshore Bond provider have the right to return an application for an Offshore Bond, including any monies, until the full application requirements are met.

Your rights as an Offshore Bond Policyholder are set out in your chosen Offshore Bond provider’s terms and conditions. These may be subject to change in the future.

If you purchase an Offshore Bond and later cease to be resident in the UK, your Offshore Bond may no longer be held within the Wealthtime Private Client Service. We reserve the right, therefore, in these circumstances to require your Offshore Bond to operate outside of the Wealthtime Private Client Service.

Whilst the Offshore Bond is within the Wealthtime Private Client Service it will only be permitted for:

a) Individuals who are resident in the UK.
b) Trusts where the sole or majority of trustees are resident in the UK.
c) Companies resident in the UK.

Please note these Key Features should be read in conjunction with your Offshore Bond Provider’s Key Features and Terms and Conditions.

The Wealthtime Private Client Service is administered by Wealthtime Limited, which is authorised and regulated by the Financial Conduct Authority.
Wealthtime recommends that before making a decision regarding this service and the investments you should contact your Financial Adviser.

Wealthtime Limited, The Oak House, Barford Lane, Downton, Salisbury, Wiltshire SP5 3QA T: 01725 512925 E: admin@wealthtime.co.uk

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