The single premium product is called Summit II and is fully compliant with the Hong Kong Guidance Note 15 (GN15).
It has a minimum initial investment of $15,000 (£10,000) and a minimum additional investment of $10,000.
It has an annual establishment charge of 1.6% of the initial premium and any additional premiums, and an administration charge of 1.2%.
James Tan, managing director, Asia at FPI, said the product combines the benefits of its existing Summit and Zenith products in order to offer more flexibility while maintaining Hong Kong-compliance.
“When we talk about the commission, the indemnity commission ban is changing the structure of commission payments being made to brokers from the traditional ‘upfront-basis’ to an ‘earned-basis’, and with this change the effect is more aligned to customers’ interests,” he added.
Following the enforcement of the Hong Kong Guidance Note 15 (GN15) at the beginning of this year, commission on Insurance Linked Assurance Scheme will be paid through an upfront lump sum percentage, with the remainder being paid in installments, provided certain standards are met.
The Office of the Commissioner of Insurance, who proposed the ban in July last year, said it hoped the actions will prevent the “mis-selling and aggressive selling” of ILAS products driven by the entirely upfront payment of commission.
Earlier this month, Old Mutual and Standard Life also launched Hong Kong-compliant products.
