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Enhancements to the Collective Investment Bond

Date: 18 May 2021

Flexibility and greater control

We have made several enhancements to the Collective Investment Bond (CIB) to give your clients more flexibility and give you greater control.

  • Improved access to bond information.
  • Manage assigned assets separately, giving you more control.
  • Run a combination of model portfolios, loose assets or discretionary portfolios within the same bond.
  • Instruct and amend withdrawals online, payable from the 1st to the 28th of the month.

The CIB has a structure of 1,000 life assurance policies, with the additional option to add capital protected death benefit at outset.

What can you invest in?

  • The CIB provides access to a wide range of over 2,100 OEICs and unit trusts.
  • Unlike our other products, exchange traded instruments are not available for this product.
  • Whilst transactional cash will be used to fund fees and charges, it will not be possible to select cash as an investible asset within the bond. Other cash funds, for example Blackrock Cash, are available.

New functionalities

Improved assignment functionality

If you wish to assign individual segments within a bond you can manage the investment strategy of the assigned policies separately in their own sub account and you can charge fees specific to the sub account, giving you more control.

When a bond is set up it is given an account number and a ‘Bond ID’. When a policy is assigned, the assigned segments will be given their own sub account number, but will retain the overall Bond ID to ensure a common reference for all associated bonds.

Online Bond withdrawals

You can instruct and manage withdrawals online, without any need for signed paper forms, saving you time.

  • You can withdraw up to a maximum of £50,000 online.
  • The CIB must be held in the customer’s sole name, not jointly held or in the name of a company or trust.
  • The proceeds must be paid into a verified bank account.

Please note: Bonds that were set up on our previous platform, where segments were previously assigned, were not separated into different sub accounts and all segments from the original bond will need to be managed as one.

One-off withdrawals

Better access to the information you need

A new feature of the CIB is the bond details screen, giving you better access to the information you need, without you having to spend time calling us.

The new screen shows you:

  • the current number of live policies on the bond
  • the amount invested in the bond
  • total withdrawals
  • whether there has been a previous chargeable event since the migration to our new technology platform
  • If an assignment has taken place, this will show the date the assignment took place.

You may also see a data item confirming whether we are calculating chargeable events manually or not. Where this is set to 'yes', we are manually checking our system calculations prior to certificates being issued to ensure accuracy. This ‘yes’ marker also suppresses the tax deferred allowance value on this screen. This ensures we do not provide you with an incorrect value whilst we are validating the data.

CIB charges

The way the Quilter Product Charge, Capital Protected Death Benefit Charge and Adviser ongoing servicing fee are calculated and deducted is changing.

  • The Product Charge, Capital Protected Death Benefit Charge and Adviser ongoing servicing fee will now be calculated and accrued daily based on the value each day. The total of the accrued daily charges is deducted monthly on the charge date.
  • If the client closes the account, any accrued charges which have not yet been taken will be deducted from the closure proceeds. The accrued charges will be shown on valuation statements.

 

Phased investment

Phased investment continues to be available for the bond. It allows lump sum contributions to be made into Blackrock Cash, and can be automatically switched into a chosen fund, funds or model portfolio, each month over a selected period. This provides a greater range of options to customers and advisers for managing their investments held with Quilter.

  • The default cash option for the CIB is BlackRock Cash and phased into the selected assets over a period of 3, 6 or 12 months.

 

Trusts and the CIB

We continue to offer a wide range of trusts that can be used with the bond. To find out the steps you need to follow to successfully submit a bond application, see our easy to follow application guide, which also includes details on how you can set a bond up under an existing trust.

Further support

Step-by-step training

View our ‘how do I’ video guides on how to use the platform, manage your clients’ investments and create reports.

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Platform support

Get instant access to online resources such as training videos and Q&As that will help with your daily tasks.

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