Product Profile of the Month
February 2010
Product Provider - La Mondiale Europartner
Product Name - Bond 4 European Mobility
Single or Regular Premium - Single Premium
Target Audience - UK expats in France & Spain, UK & non UK nationals in UK (US nationals excluded)
Jurisdiction of Product Provider - Luxembourg
Website link - www.lamondiale.lu
Product Description*:
The Bond 4 European Mobility is a single investment, unit linked whole of life insurance policy, designed to remain locally compliant should the client move within UK, France, Portugal, Italy and Spain (additional EU countries will be added). Offers an open architecture, multi-currency solution for clients seeking a compliant cross-border investment product.
Benefits:
- Luxembourg, offers unrivalled policyholder protection via a tripartite agreement offering complete segregation of clients' assets from either the creditors of the insurance company or any of its custodian banks.
- Cross-border compliant means client is able to move between UK, France, Italy, Portugal and Spain secure in the knowledge that their investment solution will remain locally compliant.
- Multi-currency allows clients to invest in several currencies within the same contract.
- Open architecture enables IFA’s to add the funds they wish their clients to invest in, to the administration platform.
- Access to the AG2R La Mondiale Sterling and Euro Guaranteed Return funds
- Transparent charging structure:
- Initial Charge
Less than £500,000 0.50% Between £500,000 - £1,000,000 0.40% Over £1,000,000 0.30% - Annual Administration Charge
Less than £500,000 0.50% Between £500,000 - £1,000,000 0.40% Over £1,000,000 0.35% - For Guaranteed Funds the annual administration charge is always 0.50 %
- Minimum investment is £10,000 or alternative currency equivalent.
- Comprehensive online support allows access to online policy valuations, past performance, transaction history and illustrations.
- Dedicated Luxembourg based support team, with experience in their respective markets, deal with the different countries and are able to offer compliant, multi-lingual support. Freephone from UK 0808 234 6607
Risks
- If client cashes in the bond early, or requests withdrawals that exceed the growth, they may get less back than they paid in.
- The value of fund units can go down as well as up and investment growth cannot be guaranteed.
- The product allows investments in different currencies, therefore there are additional risks due to exchange rate fluctuations.
Tax efficient growth:
- La Mondiale Europartner is based in Luxembourg, and it is not currently liable to any form of tax in respect of the income and gains on policyholder funds. This means that, with the exception of certain investment income that may be subject to a tax deduction in its country of origin, the Bond 4 European Mobility will grow tax-free. Clients should check with their adviser what their taxation position is in relation to any withdrawals made in their country of residence.
Luxembourg Policyholder Protection:
- Luxembourg, offers investor protection by means of “ring-fencing” the clients assets from the insurance company. This enables Luxembourg to offer unrivalled investor protection in Europe via a regulatory regime referred to as the “tripartite agreement”.
The Luxembourg tripartite agreement offers complete segregation of clients' assets from either the creditors of the insurance company or any of its custodian banks. All assets must be held by a custodian bank approved by the regulator - the Commissariat Aux Assurances (CAA). This ensures the segregation of policyholder assets from corporate assets, and prevents exposure to the insurance company’s credit risk. The custodian bank must also hold all these assets in separate custodian accounts, so they do not form part of the bank's balance sheet and therefore are not exposed to its credit risk. The CAA performs quarterly audits on insurance company accounts in addition to making ad hoc visits. It has binding legal authority over both the custodian bank and the insurance company. The CAA’s principal objective is the protection of client assets.
For further information please contact your Independent Financial Adviser. Alternatively, visit La Mondiale Europartner’s website – www.lamondiale.lu.
*As provided by Product Provider.
