Latest from the Media Centre


Skandia International enhances adviser charging options on offshore bonds

Skandia International, part of Old Mutual Wealth, has enhanced the adviser charging options available on its range of offshore bonds. The enhancement means the advice fee no longer needs to be deducted from the annual 5% tax-free withdrawal allowance, leaving more of the allowance for the customer. This is great news for UK advisers and customers who want to use the 5% withdrawal allowance on offshore bonds because customers can benefit from greater tax-free income.

The enhancement follows HMRC’s recent confirmation that, provided certain conditions are met, all advice relating to investments linked to the offshore bond can be considered as advice to the life company and not to the adviser. This means that the advice fee is deemed to be part of the product, and does not impact the annual 5% tax-free withdrawal allowance.

This only applies where the advice relates specifically to investment advice. Skandia International previously used this model on its Discretionary Asset Management service and is now able to roll it out to all advisers offering investment advice.

Rachael Griffin, head of technical marketing at Skandia, comments:

“This enhancement is fantastic news for customers. It means they have more of the annual 5% tax-free allowance to take as withdrawals. We’ve had a great response from advisers to this development as they see this as a real tangible benefit to their customers, and are keen to set up their new offshore bond business in this way.”

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076

Notes to Editors:

Old Mutual Wealth

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK & Italy* and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £119 billion in customer investments (as at 30 September 2016).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £342.7 billion assets under management (as at 30 June 2016).

*Old Mutual Wealth announced the sale of Old Mutual Wealth Italy to Ergo Italia on 9 August 2016. The transaction is pending completion.

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.