Premiere investment bonds and Premiere Europe

• Funds

  Access an almost unlimited range of investment funds. With thousands of funds available you can tailor your client’s portfolio to meet their specific needs and goals.

  Our governance team are on-hand to check that your investment choices meet our acceptance guidelines. We’ll generally accept authorised unit trusts, approved investment trusts, OEICs, REITs and non-UK authorised collective investment schemes. Hedge funds will be considered on an individual basis.

• Cash deposits

  We offer a range of instant access and fixed-term deposit accounts from a wide selection of banks and building societies.

  See our latest cash deposit rates.

• Platforms

  We have agreements with a wide range of platforms to provide fund administration, custody and execution-only services. You can manage all, or part of the investment bond assets through each platform. For extra flexibility, you can also spread the investment across multiple platforms.

  See our list of platforms.

• Discretionary fund managers

  You can appoint a discretionary manager to advise and make investment decisions on your client’s behalf. We have relationships with a wide range of discretionary managers, as well as many boutique and specialist firms. For extra flexibility you can spread the investment across multiple discretionary managers.

  See discretionary fund managers.

• Segregated Portfolio Service

  Our Premiere accounts give you the option to use our Segregated Portfolio Service providing your clients with a wider range of investment opportunities. This service provides access to equities and gilts, so you can benefit from the investment manager’s stock selection expertise.

  This service is only available through an investment manager that we have an agreement with.

  Explore our Segregated Portfolio Service.

Frequently asked questions

• Do owners and lives assured need to be a UK resident?

  For the Premiere Europe Account the policyholder must live in the UK, Channel Islands or the Isle of Man. 

  For the Premiere Account, you don’t need to be a UK resident. Please talk to your account manager to see whether your client’s country of residence is eligible.

  For both accounts, the advice must have been given, and the application form signed, in the UK, Channel Islands or Isle of Man.

• How does the VAT treatment of discretionary management fees differ for the two accounts?

  For the Premiere Europe Account the Irish Revenue Commissioners have confirmed that discretionary fund management services are not chargeable to VAT under the Value Added Tax Consolidation Act 2010 provided that the assets being managed are classed as a pooled fund portfolio bond and not a highly personalised bond. 

  For the Premiere Account, VAT is usually chargeable on discretionary fund management fees. The exact status of VAT depends on the service being provided and to who – you’ll need to make sure you’re satisfied with the final VAT position. 

  Tax rules depend on individual circumstances and may change.

• What’s the difference between life assurance and capital redemption?

  You can choose to set up your Premiere account investment bond on a life assurance or capital redemption basis.

  Life assurance

  With this type of bond, you can choose to insure the lives of up to six people. The death benefit is paid on the death of the last life assured and the bond is closed.

  Capital redemption

  With this option there are no lives assured. Instead, the bond continues for a fixed term of 99 years and, at the end of the term, will pay the higher the value at the time or a guaranteed maturity value.

  Both versions can be surrendered at any time.

• What is the maturity value on the capital redemption option?

  The capital redemption option has a fixed term of 99 years and will pay out a guaranteed maturity value at the end of the term (unless it has been surrendered). There are two maturity value options:

  • The maturity value is 130% of the initial premium, but if you choose this option you’ll only be able to invest in the CLI Sterling Money fund. If the full surrender value on the maturity date is more than 130% of the initial premium, we will pay the higher amount.
  • The maturity value is 20% of the initial premium. If you choose this option, you can enjoy our full range of investment options. If the full surrender value on the maturity date is greater than 20% of the initial premium, we will pay the higher amount.

• Can I pay regular amounts into a Premiere account?

  Yes, you can make regular payments into both accounts. You can make payments (repeat top-ups) of at least £2,500 monthly or yearly.