HSBC Life (UK) Limited is offering UK companies the opportunity to invest in its HSBC Onshore Investment Bond which was previously only accessible to individuals and trusts.
In a statement on 22 May, it said this was in response to an increasing number of enquiries from advisers as UK companies look to improve investment returns on their surplus cash, as well as aid their tax planning.
The HSBC Onshore Investment Bond offers an open architecture approach providing advisers with the opportunity to choose from over 3,800 investment funds. This gives advisers flexibility and choice so they can deliver the right investment solutions for their corporate clients, the statement said.
An onshore investment bond can provide an alternative to businesses that might hold significant levels of cash in bank accounts, as well as offer the potential to generate better returns.
HSBC Life (UK) Limited does not replicate funds offered by external fund managers. It enables investment in the funds directly, ensuring consistency of approach across the investment solutions that advisers recommend to their clients.
Mark Lambert, head of onshore bond distribution, HSBC Life (UK) Limited, said: “Companies can face similar challenges to individuals in relation to the excess capital that they have available. The potential to improve investment returns and to optimise tax planning through investment in an Onshore Bond is something we expect will generate significant interest amongst advisers’ corporate clients.
“Advisers have made it clear to us that there is an increasing demand from clients for onshore investment bonds, and we have significant growth ambitions in the onshore investment bond market. Our priority is to offer advisers and their clients – including companies – investment choice, transparency and value supported by the highest levels of service.”
The minimum investment by a limited company into the HSBC Life Onshore Investment Bond is £15,000.
HSBC further highlighted that the bond is not designed for limited companies which are not UK tax residents.
