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Flexible Guarantee Bond Series 3 Adviser charging options

The Flexible Guarantee Bond Series 3 can support the following charge types:

Product

Initial charge

Ongoing charges

Ad hoc charges

Flexible Guarantee Bond series 3


Monthly, quarterly, half-yearly & yearly


Initial Adviser charge

The initial adviser charge can be:

  • A £ monetary amount
  • or a percentage of the cheque amount we receive

The initial adviser charge will be taken before the bond is set up. For example, if a client sends us a cheque for £20,000 with instructions to pay an initial adviser charge of £1,000, the bond will be set up for £19,000 (this means that the initial adviser charge will not form part of the 5% tax deferred withdrawal allowance).

The initial adviser charge payment is made when the bond goes live. Any initial adviser charge will be shown in the pre and post sales illustration and in the client’s welcome pack.

Ongoing Adviser charges

Ongoing adviser charges can be:

  • a percentage of fund value (excluding any mutual bonus),
  • percentage of the premium paid into the bond
  • or a £ monetary amount

The payment frequencies available are monthly, quarterly, half yearly or yearly.

Ongoing adviser charges are taken as withdrawals from the bond and will therefore form part of the 5% tax deferred withdrawal allowance.

The payment dates are driven by the start date of the bond and are in arrears – for example if the bond starts on 10/11/13 and monthly payments have been requested – the first payment will be made on 10/12/13.

For changes to ongoing adviser charges an illustration will be sent on receipt of the instruction and the payment will be made when the first charge is paid out. There must be at least 10 working days between receipt and payment set up.

Ad-hoc Adviser charges

An ad-hoc adviser charge can be:

  • a percentage of the fund (excluding any mutual bonus)
  • or a £ monetary amount

The charge is taken as a withdrawal from the bond. It will therefore form part of the 5% tax deferred withdrawal allowance.

Payment is made either when the request is received or at a later specified date, though we operate on a 5 day turnaround. The payment date will be driven by the date the request is received and allowing for the appropriate illustration be to sent to the bond owner/s – for example if the request is received on 1/1/14, the illustration is sent on the 6/1/14 (5 day turnaround), payment will be issued on the 11/1/14.

How to set up adviser charges

The Flexible Guarantee Bond Series 3 application form can be used to request initial and ongoing charges.

For changes to ongoing or ad hoc charges you can request an adviser charge form from our literature.

0800 681 6292

TextDirect: first dial 18001

09:00am - 17:00pm Monday - Friday

We may record and/or monitor calls for training and audit purposes.

Literature

FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK