Canada Life continue allowing trail commission

Canada Life will continue to facilitate trail commission on its range of onshore and offshore investment bonds. In contrast to other providers turning off trail commission, Canada Life is emphasising its position that an adviser’s remuneration is a matter for them and their clients.

Canada Life has a wide variety of charging options, designed to be flexible and to allow advisers to be paid in the way they and their customers choose. Top-ups and fund changes are able to be made without it impacting on advisers’ existing remuneration.

Nick Harding, Propositions and Marketing Director, Wealth Management and Retirement Income at Canada Life said:

“Ultimately, how advisers are paid is a matter for them and their clients as only they know the level of service being provided. We’re aware that many advisers provide a great amount of work on legacy business with client meetings, complementary advice and on-going reviews. If they and their clients are happy that trail commission is sufficient payment for these services, then that should absolutely be an option available to both parties. Unless the ruling changes on this, this will continue to be the case with our products.

“Everything we have developed in our post-RDR offering has had the overriding objective to provide the most comprehensive range of adviser charging options possible on all of our core products and therefore support advisers as much as we can. This remains the case.”

Derek Bradley, CEO, Panacea Adviser said:

“We have been running a poll on the Panacea website, to our community of 18,000 advisers and paraplanners, looking at the potential impact of the removal of trail commission. Nearly all respondents said it would have a negative impact on their business, whilst 90% said that the ramifications would be catastrophic.

“We are therefore very pleased with Canada Life’s decision to maintain the practice and agree wholly that it is a matter to be discussed between an adviser and their client.”

Canada Life backs future of Onshore Bond market with new product launch

CanInvest Select Account designed with transparency and flexibility in mind

Canada Life is launching a new onshore bond product – the CanInvest Select Account – to capitalise on the market potential it believes exists, demonstrated by the continued interest they see from advisers.

While the onshore bond market has seen a dip post-RDR, adviser research for Canada Life found 60% think onshore bonds remain as valid as they were pre-RDR. According to the survey, the most important elements when considering onshore bonds are product charges (70%) followed by fund choice (66%) and financial strength of the provider (31%).¹

The CanInvest Select Account is tax effective and offers transparency and value for money. It has no entry or exit charges, with the fees limited to a tiered monthly management charge (where the greater the value of the client’s investments the lower the percentage) and separate fund charges. This transparent approach is designed to appeal to advisers, with two thirds of those surveyed indicating a preference for product charges and fund charges to be shown separately

To reward longer term investors, a loyalty bonus is added to the CanInvest Select Account every five years.

Onshore bonds meet the needs of a wide range of investors. This includes those who expect to be paying a lower level of tax when they ultimately take money out of their investment, or whose choice of underlying investment funds makes the bond the most tax effective vehicle when compared to the alternatives.  Annual withdrawals of 5% are available without an immediate tax liability arising and for many advisers bonds are the product of choice when it comes to estate planning which involves the use of trusts.

Fund choice

A carefully selected range of high quality fund choices is available which covers a broad spectrum of asset types and geographies, from single strategy funds to risk profiled multi-asset solutions. The range includes funds managed by the award winning Canada Life Investments team with others managed by some of the biggest and most respected investment companies around the world. This includes exclusive links to Canada Life Investments Global Partner Series² funds provided by sister companies, Putnam, GLC, Mackenzie and Setanta.

Nick Harding, Propositions and Marketing Director, Wealth Management at Canada Life said:

 

“We are firm believers in the role onshore bonds have to play in a professional adviser’s armoury. Onshore bonds are an attractive proposition for a wide range of customers, from those for whom a bond offers the most tax efficient vehicle for their particular circumstances to others who are looking for a straightforward investment solution.

“In developing our new CanInvest Select Account we have listened to what advisers see as most important and have designed a product that will work for them and for their customers. The Select Account offers transparency, flexibility, value-for-money and a wide range of adviser charging options. This is all backed by our commitment to supporting advisers through our acclaimed ican Technical Support and high quality service.”

Canada Life International Limited voted Best International Life Group (UK)

Canada Life International Limited (CLI) is delighted to announce that it has been voted the Best International Life Group (UK) in the Professional Adviser International Fund & Product Awards 2013.

A panel of industry experts reviewed submissions provided by a number of offshore companies and recognised the strength and depth of the offshore proposition provided by Canada Life’s group of offshore companies.

Headquartered in Castletown for over 26 years, the group has firmly established itself as the leading provider of offshore bonds to the UK market.  In addition to this, April this year saw the launch of a third offshore life company, Canada Life International Assurance Limited, which is based in Dublin and complements CLI and CLI Institutional Limited on the Island.

Canada Life International’s Controlled Access Account also won the Best International Trust & Estate Planning Product award and the group was also highly commended in the category – Best International Adviser Portal.

Commenting on the awards, Sean Christian, Canada Life International’s Managing Director, said:

“With the addition of our Dublin based proposition in April we truly believe we are now the leading offshore bond provider in the UK.  No other company provides advisers with three different legal entity structures to write a bond through, via two jurisdictions, all served by the same first class service proposition.” 

Despite a contraction in the UK offshore bond market, CLI further increased its market share in Q1 2013 to 26% according to figures released by the Association of British Insurers (ABI).  Mr Christian further commented, “It’s particularly pleasing to see all the hard work of our loyal staff being recognised and the ABI statistics once again reconfirm our position as one of the leading providers with more than 1 in every 4 offshore bonds being issued through Canada Life”.

The Professional Adviser Awards recognises Canada Life’s commitment to the adviser community and the:

• strong ratings from the major agencies (for parent company Great-West Lifeco)
• 5 star AKG Annual Review ratings
• award winning and unique service charters which offer peace of mind
• market leading range of flexible adviser charging options
• award winning Canada Life Technical Services Team

Canada Life launches offer on its flexible onshore bond

Canada Life is offering a 50% reduction in its Flexible Investment Bond establishment charge for premiums of £25,000 and over. This special offer runs from 3 June until 6 September 2013. The Flexible Investment Bond features a wide range of adviser charging options, a comprehensive fund range plus award-winning service backed by a published charter and online support.

Peter Towers, Managing Director Wealth Management, Canada Life said:

“Onshore bonds are an attractive solution for many investors, offering broad investment choice and tax deferred income options in a straightforward package. We believe that Canada Life’s Flexible Investment Bond is one of the leading products on the market, plus we offer a variety of adviser charging options to suit each individual adviser firm and their clients.

“With our new promotional offer, the Flexible Investment Bond is now even more competitive and we remain fully committed to supporting advisers through our respected Technical Services Team, our ‘ican’ initiative and our award winning levels of customer service.”

Advisers can obtain product illustrations online with Avelo and Assureweb or through their account manager and from the Canada Life adviser support team on email: adviser.support@canadalife.co.uk or phone: 01707 422927.

– ENDS-

 Notes to editors

	Establishment charges
Investment amount	Flexible Investment Bond Standard terms	Flexible Investment Bond Special offer terms
£25,000 – £49,999	2.0%	1.0%
£50,000 – £199,999	1.5%	0.75%
£200,000 or more	1.0%	0.5%

The figures above apply to individuals aged 80 or less.

The establishment charge can be deducted when the investment is made or deducted in 60 monthly instalments over the first five years.

If deducted when the investment is made the allocation rate is reduced by the establishment charge.

For further information on Canada Life please contact:

Hugh Murphy

The Wriglesworth Consultancy

020 7427 1400

About Canada Life

Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies.

Canada Life Limited, a wholly owned subsidiary of Great-West Lifeco, began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown to become the leading provider of competitively priced group insurance solutions. www.canadalife.co.uk/ifa

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority.  Canada Life International Assurance Limited is authorised and regulated by the Central Bank of Ireland.

 

Canada Life and iPipeline research reveals customer service dominates adviser focus

Research conducted by iPipeline with leading annuity provider Canada Life Limited, suggests that advisers consider the service they receive from providers in their recommendation decisions as one of the most important factors, second only to the rate available. 

The survey, completed by more than 400 advisers (in Q1 2013) highlights the importance for providers to offer a good experience for both clients and advisers.

58% of advisers thought post sale administration is the most important factor with point of sale literature (51%) being the next most important.

The importance of a smooth and simple process was highlighted by the survey which suggested that 52% of advisers take less than six hours to deal with standard annuity cases. With enhanced or impaired annuities, more than 70% of respondents spend in excess of six hours per case.  In fact almost 40% said they spend more than nine hours on each enhanced case they deal with.

Advisers spend in excess of six hours on the majority of enhanced annuity cases.

 

Richard Priestley, Executive Director, Retirement Income at Canada Life said:

“Canada Life’s focus is to keep the client at the heart of everything we do and we recognise the importance of post sale administration for client and adviser alike. Our aim is to provide a speedy and efficient service for the parts of the process we control.

“On average through March 2013 the time taken to complete annuity purchase from receipt of application to policy documents issued was 15 working days at Canada Life.  In 99% of cases we request the annuity fund from the ceding provider the day we receive the application from the client.  When we receive the funds from the ceding provider we set up the annuity in two days in 98% of cases.

“With annuity rates changing frequently in the market our high service standards gives clients a greater opportunity to secure the income they were initially expecting.

“Our research also shows that, for clients of the advisers surveyed, the financial strength of the annuity provider was the most important factor in choice of provider outside of annuity rate.  Canada Life is rated A+ for financial strength by AM Best¹.”

Mark Wilson, Director of Marketing & Product Management at iPipeline commented:

“The open market ‘OPTIONS’ initiative, has made significant progress in driving down the time taken to move money from one office to the other but we need to see continued improvement to match client and adviser expectations.

“iPipeline are committed to effecting positive change within our industry, including the retirement sector. Our neat range of innovative technology solutions aim to make life easier for customers and in turn their clients. We will continue to work closely with product providers to make it easier to process annuities.”

– ENDS-

Notes to editors

This ‘Post RDR Annuities survey’ was run by iPipeline Ltd for and sponsored by Canada Life

The survey was promoted to Assureweb’s ‘At-retirement’ advisers and ran from 17 February to 1 March 2013

The survey was completed by 436 advisers

¹ Canada Life Assurance Company (which owns 100% of Canada Life Limited)

 

For further information on Canada Life please contact:

Hugh Murphy
The Wriglesworth Consultancy
020 7427 1400

h.murphy@wriglesworth.co

About Canada Life

Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies.

Canada Life Limited, a wholly owned subsidiary of Great-West Lifeco, began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown to become the leading provider of competitively priced group insurance solutions.

Canada Life offers competitive annuity rates together with award winning service. We provide around 350,000 annuities to clients in the UK worth in the region of £12 billion.

www.canadalife.co.uk/ifa

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority.  Canada Life International Assurance Limited is authorised and regulated by the Central Bank of Ireland.

For further information on iPipeline please contact:

Louise Hamilton
Marketing Manager
iPipeline
01242 211 731
lhamilton@ipipeline.com

About iPipeline

Assureweb is now owned by iPipeline, the leader in on-demand marketing, selling and processing solutions for the top insurance providers, distributors and adviser in the US.

iPipeline leads its industry in providing the next-generation suite of sales distribution software to the insurance and financial services markets through its on-demand service. iPipeline’s channel solutions automate activities for CRM, forms distribution and processing, quotes and illustrations, in Good Order e-Applications, agency management, data services, policy delivery and related services, enabling the insurance industry to market, sell, and process faster.

With headquarters in Exton, Pennsylvania, iPipeline has locations in Atlanta, Charlotte, Danville, Milwaukee, Salt Lake City, Tokyo, UK, and Vancouver.

Visit us at www.ipipeline.com/uk

Canada Life expands its offshore bond offering to UK investors with the launch of a new company in Ireland

Canada Life has announced the launch of Canada Life International Assurance Limited (CLIA), a new Dublin based life company designed to provide additional offshore tax-efficient solutions for UK investors.

The new company is a sister operation to Canada Life’s existing offshore operations, Canada Life International Limited (CLI) and CLI Institutional Limited (CLII) which are both based in the Isle of Man.  CLIA has the same parent company in Great-West Lifeco and therefore also benefits from the financial strength and security this brings.

Sean Christian, Managing Director, CLI & CLII, commenting on the launch of the company, said:

“Our existing offshore proposition is built on providing advisers with flexible, innovative products, high quality service and a wide range of investment solutions. We have successfully gained the reputation over the last 25 years in the offshore bond market as not only establishing ourselves as a leading provider but also as the provider that offers the broadest range of choice to advisers and investors.  Our products are linked to 23 platforms and 11 back-office systems rather than being restricted to one in-house platform. Our Estate Planning suite of products is undoubtedly the widest range in the market. This was recognised in the International Adviser offshore awards with CLI winning the Best Overall UK Product Range in 2010 and 2011.  Up until now though we have not been able to offer advisers and their clients a jurisdictional choice of where they take their offshore bond from.  The launch of CLIA out of Dublin, addresses this requirement and allows the Canada Life group to offer a complete end to end package of choice to the market.”

Canada Life has also announced that Mark Armstrong will lead the operation as Managing Director of CLIA.  Mr Armstrong was previously Head of Operations at CLI and will continue to report to Mr Christian in his new role.

Mark Armstrong said:

“Advisers and their clients are looking for a wide range of offshore investment solutions including a choice of Isle of Man and European bonds from providers with strong financial backing and with a long pedigree in this market.  We are delighted to offer the Premiere Europe Account which is based on our award winning and popular Isle of Man Premiere Account offered by CLI. The Premiere Europe Account (and a discounted trust version) will be backed by published service standards as shown in our investment and estate planning service charter, a feature of our offering that has been valued by advisers for many years and which underpins our commitment to offer an unrivalled level of customer service.”

The international operation of Canada Life has witnessed significant growth since its inception in the Isle of Man in 1987.  In 2011 the group reported a record year for new business, in excess of £1.2bn of premium, giving it a market share of over 20% and total assets under administration of £8.0bn (CLI and CLII combined) as at 31 December 2012.

 

– ENDS-

For further information on Canada Life International Limited please contact:                         

For further information on Canada Life International please contact:              

Hugh Murphy

The Wriglesworth Consultancy

020 7427 1400

About Canada Life International Limited (CLI)

Canada Life International Limited is part of the Great West Lifeco Inc group of companies. CLI was established in 1987 and is based on the Isle of Man, a jurisdiction recognised for its stable government, strong regulatory controls and policyholder protection measures. CLI continues to receive exceptional ratings from specialist, independent agencies in relation to financial strength, unit-linked business and commitment to service.

Since formation in 1987, CLI has continually developed expertise in providing wealth management solutions for UK and International clients alike. The combined assets under administration for CLI and its subsidiary, CLI Institutional Limited, are £8.0bn (as at 31 December 2012).

The company employs 135 people at its headquarters in Castletown and has witnessed phenomenal growth in recent years, with assets under administration growing by over 500% since 2002.

Canada Life group consists of Canada Life Limited, Canada Life Investments (both authorised and regulated by the Financial Services Authority), Canada Life International Limited and CLI Institutional Limited, (Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority). All promotional material produced is approved by Canada Life Limited.

 

 

Adviser research highlights the popularity of whole of life plans for IHT planning purposes

Canada Life International Limited (CLI) has just completed a survey of professional advisers and their findings highlight the popularity and versatile nature of whole of life (WoL) plans. The research shows that 54% of respondents regularly recommend WoL plans for estate/inheritance tax planning to their clients and that a further 36% of advisers present WoL plans as part of their overall estate planning recommendations.

Neil Jones, Technical Projects Manager – Canada Life said:

“The survey highlights that whole of life plans have a multitude of purposes which include inheritance tax (IHT) planning, family protection and in some instances, business protection. A WoL plan is a simple and effective estate planning solution for those individuals who may be asset rich but cash poor. As a provider of a range of flexible onshore and offshore estate planning solutions, we provide daily support to professional advisers who have clients with a range of income and estate planning needs. Some clients have an urgent need for an effective inheritance tax solution but their assets are tied-up in a number of ways (such as in their main family home, various business interests, other long term investments and so on). Flexible multi-purpose WoL plans such as Canada Life International Limited’s Flexible Life Plan (FLP) provide both a cost-effective and long term estate planning solution when they are combined with a trust.”

CLI provides a series of services to help advisers and their clients through the application and underwriting processes which include pro-active case management support, high non medical limits and technical support on the different trust options.

The FLP won the Best Protection Product (UK) in the International Life Awards for the last four years (2009 to 2012) and is backed by CLI’s innovative and award winning FLP service charter.

– ENDS-

Notes to editors

The online survey ran from 22 March to 15 April 2013.

For further information on Canada Life International Limited please contact:

Hugh Murphy

The Wriglesworth Consultancy

020 7427 1400

About Canada Life International Limited (CLI)

Canada Life International Limited is part of the Great West Lifeco Inc group of companies. CLI was established in 1987 and is based on the Isle of Man, a jurisdiction recognised for its stable government, strong regulatory controls and policyholder protection measures. CLI continues to receive exceptional ratings from specialist, independent agencies in relation to financial strength, unit-linked business and commitment to service.

Since formation in 1987, CLI has continually developed expertise in providing wealth management solutions for UK and International clients alike. The combined assets under administration for CLI and its subsidiary, CLI Institutional Limited, are £8.0bn (as at 31 December 2012).

The company employs over 120 people at its headquarters in Castletown and has witnessed phenomenal growth in recent years, with assets under administration growing by over 500% since 2002.

Canada Life group consists of Canada Life Limited, Canada Life Investments (both authorised and regulated by the Financial Services Authority), Canada Life International Limited and CLI Institutional Limited, (Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority). All promotional material produced is approved by Canada Life Limited.

 

Canada Life International links with Aegon Retirement Choices (ARC) platform

Canada Life International Limited (CLI) and Aegon are pleased to announce that CLI’s full suite of open architecture investment and inheritance tax bonds are now available through the Aegon Retirement Choices (ARC) platform.

Mario Ricciardi, Executive Director – Investments, Canada Life International Limited commented:

“We are very pleased to confirm the link with the ARC platform bringing together an extremely innovative adviser service with CLI’s award winning product range. In a time of change in the market it is exciting to create a link which brings together a level of understanding in the Wealth Management / Platform space that combines robust technology with adviser support which is second to none in the adviser community.

“Post RDR many adviser firms are reviewing their investment strategies for clients and looking at the benefits offered by different platforms. We believe that adviser firms will choose the platform(s) which most closely match their clients’ needs. Our strategy is to make our products available on those platforms which our clients value.”

Full details of the CLI product range is available at www.canadalifeint.com or by emailing CLI’s Adviser Support Team at advisersupport@canadalifeint.com.

 

– ENDS-

 

Notes to editors

The following CLI products are now available on the ARC platform:

Premiere Account

Premiere Discounted Trust Account

Wealth Preservation Account

Controlled Access Account

Inheritance Planning Account

 

For further information on Canada Life International Limited please contact:

Hugh Murphy

The Wriglesworth Consultancy

020 7427 1400

About Canada Life International Limited (CLI)

Canada Life International Limited is part of the Great West Lifeco Inc group of companies. CLI was established in 1987 and is based on the Isle of Man, a jurisdiction recognised for its stable government, strong regulatory controls and policyholder protection measures. CLI continues to receive exceptional ratings from specialist, independent agencies in relation to financial strength, unit-linked business and commitment to service.

Since formation in 1987, CLI has continually developed expertise in providing wealth management solutions for UK and International clients alike. The combined assets under administration for CLI and its subsidiary, CLI Institutional Limited, are £8.0bn (as at 31 December 2012).

The company employs over 120 people at its headquarters in Castletown and has witnessed phenomenal growth in recent years, with assets under administration growing by over 500% since 2002.

Canada Life group consists of Canada Life Limited, Canada Life Investments (both authorised and regulated by the Financial Services Authority), Canada Life International Limited and CLI Institutional Limited, (Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority). All promotional material produced is approved by Canada Life Limited.

The big IHT freeze: thaw it with Rysaffe

The government has announced that the inheritance tax (IHT) nil rate band will now be frozen at £325,000 until April 2019.

In the Autumn Statement, it had been announced that it was only being frozen until April 2015 and then increasing by 1% to £329,000.
This turnaround is designed to raise £1 billion more tax to pay for the government’s funding of long-term care costs.

This will mean many thousands more estates will pay IHT and could cause more trustees of existing trusts to pay IHT.

The freezing of the nil rate band means that as people get wealthier, through investments and property growing in value, more estates will be subject to IHT for the first time and other estates will suffer a higher IHT bill.

Those people who have actually done something about the IHT problem and have set up discretionary trusts will find that there is more likelihood that those trusts will be worth more than the nil rate band on a ten-yearly anniversary. This means that their trustees will have to pay 6% IHT on the excess amount.

For anyone who is concerned about a large chunk of their estate being left to the taxman rather than their family on death, trusts can still be the answer to the IHT problem. But how to alleviate the IHT problem?

The answer could be to use the ‘Rysaffe principle’. This is a strategy that follows a precedent set in a court case – Inland Revenue v Rysaffe Trustee Company (CI) Ltd [2003].

It is a very simple strategy and involves not setting up one trust, but a series of trusts on separate days. Whilst this increases the paperwork and administration, that can be more than offset by tax savings.

Overall, like previous government changes to IHT, you can still save IHT – it’s just that there is a little more work involved.

Canada Life is now open for RDR business

Canada Life is delighted to announce that it is now providing illustrations and accepting new business on an RDR basis across its core range of retirement income and onshore and offshore investment solutions.

Recognising that advisers and their clients are looking for a tailor made solution, Canada Life is offering a very flexible suite of adviser charging options and will facilitate initial, ongoing and ad hoc charges in both percentage and monetary terms.

The company has also amended its product designs where necessary to meet RDR requirements, but will continue to offer its existing products and commission options until the end of the year.

Peter Towers, Managing Director, Wealth Management, Canada Life said:

“Canada Life can now provide advisers with access to both onshore and offshore RDR compliant products with a variety of adviser charging options to suit each individual intermediary business and their clients. We believe we have one of the most flexible offerings on the market which has been developed following extensive research and discussion with advisers.

“As well as providing first class products, we remain fully committed to delivering high quality support to advisers through our respected Technical Services Team, our ‘ican’ initiative and our award winning levels of customer service.”

Richard Priestley, Executive Director, Retirement Income at Canada Life said:

“This year we have had the twin challenges of RDR and Gender Equalisation legislation and we are delighted to be able now to provide quotations on all of our annuity products that are RDR compliant well ahead of the deadline.  Our gender neutral pricing will be introduced on quotes from 6 December.

“With these changes we are well placed to support a range of distribution models going forward both advised and non advised.”