A comprehensive overhaul of offshore and onshore bonds, annuities, protection and estate planning solutions includes the removal of high allocation charging options and the addition of extensive adviser charging facilities.
Neil Jones, Canada Life technical manager, said the impact of the post RDR removal of the ability to offset commission payments to advisers as an expense with the onshore products, including bonds, means that offshore bonds will be relatively less expensive than before. The price of Canada Life’s offshore bonds has always been more than the onshore ones, but the gap will now narrow from the beginning of 2013.
The adviser charging facility is designed to be as flexible as possible and Canada Life plans to support a wide range of options to meet the fee structures agreed between clients and advisers, Jones said.
Specifically, there will be a facility for initial, ongoing and single ad hoc adviser charge deductions from onshore and offshore products. Where possible the enhancements are consistent for both onshore and offshore investments, Canada Life stated.
Canada Life is also publishing a range of detailed guides and sales support aids aimed at advisers which cover their range of onshore and offshore products. There will also be client facing guides to help clients understand the different options available.
There will also be a number of sales support aids available including:
• A published list of the post-RDR products
• Details of the adviser charge options available from each product, and
• A client facing aid explaining the RDR and how it will affect clients. This can be used by advisers to help explain to their clients what has changed and why.
For the active products, Canada Life is able to add an adviser charge to policies set-up pre-RDR and is able to facilitate adviser charges on top-ups to existing policies. There is also the option for a client to set a minimum and maximum ongoing adviser charge as a monetary amount in order to help reduce the effect of an unwanted chargeable gain.
Peter Towers, managing director, wealth management, Canada Life said: “We have worked with advisers and taken on their feedback to provide what we believe is one of the most flexible offerings in the market.
Our suite of post RDR products will provide a broad range of flexible adviser charging options. Our adviser literature is clear and concise and our client facing literature is designed to enable advisers to easily explain the effects of the RDR to them.”
