Key Features of your European Wealth Bond · Key Features of your European Wealth Bond For UK...

Key Features of your European Wealth BondFor UK customers

The Financial Conduct Authority is a financial services regulator. It requires us, Quilter International Ireland dac, to give you this important information to help you to decide whether our European Wealth Bond is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.

Key Features of your European Wealth Bond2

Please read this document carefullyThe purpose of this Key Features Document is to give you a clear and balanced summary of the information you need to help you make a decision about the European Wealth Bond.Reading financial literature can be daunting, so we try to make our brochures and other documents as clear as possible. If technical expressions are unavoidable, we also include an explanation in plain English.

Please read this Key Features Document in conjunction with your personal Key Features Illustration.

We look forward to welcoming you as an Quilter International customer.

– All references to we, us, our and Quilter International mean Quilter International Ireland dac, who is the provider of the European Wealth Bond.

– Throughout this brochure we will refer to the European Wealth Bond – PRIIPs and the European Wealth Bond – Redemption as the European Wealth Bond.

– The value of investments and the income from them can go down as well as up. You may not get back as much as you invest.

– This document is based on Quilter International’s interpretation of the law and HM Revenue and Customs tax practice as at October 2020. We believe this interpretation is correct, but cannot guarantee it. Tax relief and the tax treatment of investments may change.

Quilter International 3

About Quilter International _____________________________ 4Aims __________________________________________________ 4The European Wealth Bond. and its benefits __________________________________________________ 4Definitions ________________________________________________________________________________ 6

Your commitment ______________________________________ 7What you have to do as the investor __________________________________________________________ 7

Risks _________________________________________________ 8Factors that could affect your policy’s performance _____________________________________________ 8

Trusts ________________________________________________ 9Putting your European Wealth Bond in a trust ________________________________________________ 9

Questions and answers ________________________________ 10Q1. Could the European Wealth Bond be right for me? ________________________________________ 11Q2. Is my money guaranteed? _____________________________________________________________ 11Q3. What might I get back? ________________________________________________________________ 11Q4. Who can make investment decisions? ___________________________________________________ 12Q5. Can I request a change to the discretionary asset manager? _______________________________ 12Q6. Can I request more than one discretionary asset manager? ________________________________ 12Q7. What if I no longer want the investment decisions on my Policy be made by a discretionary asset

manager appointed by Quilter International? ___________________________________________ 12Q8. Who holds the assets linked to my European Wealth Bond? ________________________________ 13Q9. What assets will I be invested in? _______________________________________________________ 13Q10. Can I change assets? __________________________________________________________________ 14Q11. What would happen if I was deemed to have influenced the assets linked to the bond?_________ 14Q12. What are Key Information Documents (KIDs) and

Key Investor Information Documents (KIIDs)? __________________________________________ 14Q13. What currency flexibility does my European Wealth Bond offer? __________________________ 15Q14. How do I pay my adviser and discretionary asset manager? _______________________________ 15Q15. Where can I find out about the charges made by Quilter international for

managing my European Wealth Bond? _________________________________________________ 16Q16. How are fees, charges and withdrawals paid? ____________________________________________ 16Q17. How will I know how my European Wealth Bond is doing? ________________________________ 16Q18. Can I take money out? ________________________________________________________________ 16Q19. How can I make payments to Quilter International? ______________________________________ 17Q20. What happens to my European Wealth Bond when I die, or on the death of

another policyholder/life assured?______________________________________________________ 17Q21. What about tax? ______________________________________________________________________ 18Q22. Can I put my bond into a trust? ________________________________________________________ 19Q23. Can I change my mind and cancel my European Wealth Bond? ____________________________ 19

Restricting the asset range _____________________________ 20Q24. What is a request to restrict the asset range? _____________________________________________20Q25. Once the assets are restricted, can I appoint a discretionary asset manager on an advisory basis,

or a fund adviser (on a discretionary or advisory basis) or make investment decisions myself? 20Q26. How do I pay the fund adviser? _________________________________________________________ 21

Other Information ____________________________________ 22Contact details ____________________________________________________________________________ 22Complaint procedures _____________________________________________________________________ 22About the Policy Terms ____________________________________________________________________ 23Stability and security ______________________________________________________________________ 23Compensation and investor protection ______________________________________________________ 23

Contents at a glance


About Quilter InternationalThe European Wealth Bond is provided by Quilter International Ireland dac (Quilter International), an EU authorised life assurance company. Quilter International is part of Quilter, a leading provider of advice, investments and wealth management both in the UK and internationally, managing £107.4 billion of investments (as at 30 June 2020).

AimsThe European Wealth Bond and its benefitsThe European Wealth Bond is a PRIIP for the purposes of the PRIIPs regulations*. It aims to provide a flexible method of investing your money with the potential for growth over the medium to long-term. It is designed to allow your capital to grow and to offer you the option to take regular, tax-efficient withdrawals.

The European Wealth Bond is an offshore, single premium bond and is designed for clients who wish to have their investment managed by a discretionary asset manager on a full discretionary basis and do not want to actively manage their investment. You provide us with your attitude to risk which acts as a guide for the investment strategy for the bond. The European Wealth Bond is only suitable for UK resident individuals or trustee investors who are 18 years or over and can afford to invest a minimum of £100,000.

For the European Wealth Bond to be taxed in the same way as conventional offshore bonds it is crucial that the policyholder is unable to select and/or influence the assets linked to the bond. This avoids the bond being considered as ‘highly personalised’ and therefore avoids a penal tax charge each year known as a ‘deemed gain’.

To ensure this is the case, the European Wealth Bond must always have the assets linked to it managed by one or more discretionary asset managers.

Another benefit of the European Wealth Bond being managed by a discretionary asset manager is that you are able to benefit from reduced charges (compared to using a discretionary asset manager on a UK product) due to the favourable VAT position in Ireland for such services.

Future flexibilityYou can however request that we change your policy in the future by restricting the asset range. If accepted, you will no longer need to have the investment decisions on your policy managed by a discretionary asset manager on a full discretionary basis.

Restricting the asset range is a permanent change to the way your European Wealth Bond works. It means your policy will never be able to access certain assets again, such as equities.

Please see section titled ‘Restricting the asset range’ on page 20 for more information on the options available to you if your request to restrict the asset range is accepted.

* Details of the PRIIPs regulations are set out in Regulation (EU) No 1286/2014 of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs).


The two European Wealth Bond options are: – The European Wealth Bond – PRIIPs – set up on a life assurance basis.

The European Wealth Bond – PRIIPs is a life assurance contract and has a choice of having one or more lives assured. Where there is one life assured, Quilter International will pay a death benefit of 101% of the surrender value on the death of the sole life assured. Where there is more than one life assured, Quilter International will pay a death benefit of 101% of the surrender value on the death of the last life assured.

– The European Wealth Bond - Redemption – set up on a capital redemption basis. The European Wealth Bond - Redemption does not have any lives assured. It is a capital redemption policy which has a 99 year fixed term. Your bond will continue to the end of the term (the maturity date), unless you fully cash it in before the maturity date. Each policy within the cluster of policies still in force at the maturity date has a guaranteed maturity value of 20% of the initial premium paid, less a percentage which is calculated based on the amount of withdrawals taken from the bond in relation to the surrender value.

The European Wealth Bond may offer the opportunity to take advantage of several tax benefits, including by using trusts to help reduce your inheritance tax (IHT) liability. Your financial adviser will have discussed the tax considerations that are relevant to you.

The European Wealth Bond offers the following benefits:

– It allows you to have the peace of mind that your investment strategy is being managed by one or more professional discretionary asset manager.

– It is designed to be flexible because we know that your circumstances can change over time and you need an investment that can adapt to meet your financial goals throughout your lifetime.

– It gives your discretionary asset manager access to a wide investment universe, including:

– external collective investment funds and unit trusts

– most investment trusts and exchange traded funds

– traded funds

– bank deposits

– structured deposits and notes

– stocks and shares

– fixed interest securities and bonds.

The European Wealth Bond may be suitable for you if:

– you want the value of your bond to be linked to assets managed by one or more professional discretionary asset manager

– you don’t want the responsibility and administrative burden of monitoring and managing the assets linked to your bond value

– you are seeking potential growth, which can be accessed at a time to suit your needs

– you want to benefit from an investment strategy which invests in a range of assets which may include investing in assets wider than those normally allowable under a conventional offshore bond

– you want to combine the requirement for a regular income for example to supplement your pension or for school/university fees and your need to accumulate a capital sum.


DefinitionsPolicy – your European Wealth Bond will consist of a number of policies, known as a cluster of policies, and your premium will be spread equally across the number of policies you choose. The benefit of having more than one policy is to enhance the flexibility from a UK tax point of view when you cash in or withdraw money from your bond. You are able to select how many policies your bond has on your application form. We will automatically issue 250 policies if the box for the number of policies in the application form is blank.

Portfolio Fund – this is the fund we maintain in relation to your Policy. It holds the notional units and unit price representing the value of your Policy at any time. For example, when you pay us a premium, we add units to the portfolio fund and when we pay benefits and some portfolio fund charges from the policy we will cancel units in the portfolio fund. When the value of the assets linked to the portfolio fund increases then the price of the units in the portfolio fund is increased to reflect the change in the value of the assets.

Portfolio Fund Charges – these are the various charges for managing the portfolio fund and your policy as explained in your Policy Terms.

Surrender value – this is the amount of money you receive when you choose to cash in your policy, after any outstanding charges have been deducted.

Transaction account – An account(s) kept by us to simplify buying and selling Assets for your Portfolio Fund. They are also used for payment of benefits and Portfolio Fund and Third-Party Agent Charges.


Your commitmentWhat you have to do as the investorYou should satisfy yourself that you understand the features and risks of investing in the European Wealth Bond so that you can decide whether it is likely to meet your needs and expectations in terms of flexibility, capital growth and taxation planning.

You must invest an initial premium of at least £100,000 (or other currency minimum – ask your financial adviser for details).

Because the European Wealth Bond is designed to be a medium to long-term investment, you should aim to hold it for at least five years.

You will also need to keep us informed of any future change of address or contact details so we can continue to keep in touch with you. Our contact details are on page 22.


You can find out more about the risks in either the European Wealth Bond – PRIIPs Key Information Document or the European Wealth Bond - Redemption Key Information Document.

Your financial adviser will be able to provide you with the relevant document.

RisksFactors that could affect your policy’s performanceAll types of investment involve some risk. The value of your European Wealth Bond may fall as well as rise. You accept this investment risk by taking out this policy. This means that we cannot guarantee the amount you get back when you cash in your policy. It may be less than forecast in your personal Key Features illustration, or less than you invested, for the following reasons:

Wide range of assets – The assets available all have specific objectives and associated risks. For example, if the discretionary

asset manager chooses ‘emerging market’ funds that are invested in parts of the world with less well-established economies, their value could be subject to considerable price changes – known as ‘volatility’.

– It is important that you regularly review your attitude to risk with your financial adviser to ensure your bond performs as you anticipate.

– Where the policy holds investments in a currency different to the one in which it is denominated there may be additional risks because of exchange rate fluctuations.

Charges and withdrawals – The effect of fees and charges may be higher than illustrated. For example, the discretionary asset

manager might decide to change to assets with higher charges than those shown in your Key Features Illustration, or investment management costs may increase in the future.

– If you take greater regular withdrawals than originally planned, the value of your European Wealth Bond may be less than shown in your Key Features Illustration.

Tax – Tax rules could change in the future. If HMRC perceive that you or anyone acting on your behalf

have directly or indirectly influenced the choice of assets there could be an adverse tax effect.

Cancellation risk – If you decide to cancel your policy within the 30 day cancellation period, its value could fall over this

time. If so you will get back less than you have invested.

If, at your request, we have facilitated the initial fee for advice given to you by your financial adviser and you decide to cancel your policy we cannot reclaim or refund the fee. The fee agreement is between you and your financial adviser not Quilter International, and it is up to you to reclaim the fee.

The section Your commitment (on page 7) will help you understand how you can reduce some of these risks.


TrustsPutting your European Wealth Bond in a trustYour financial adviser may suggest that you help to safeguard your investment by placing your European Wealth Bond in trust. This can help ensure your wealth is used as you intended during your lifetime and after you die, and may offer some advantages in the future if you are self-employed, get divorced or are means tested (for long-term care provision, for example). A trust can also benefit your family or beneficiaries after your death, by helping to avoid complicated probate issues.

Another important benefit is that you can reduce or even eliminate UK inheritance tax when transferring your wealth. Assets which are not held in trust and are above the nil-rate band (the threshold above which inheritance tax applies, currently £325,000*) and the residence nil-rate band**, could be liable to 40% inheritance tax.

For more information, please go to: www.gov.uk/inheritance-tax.

For further information about Quilter International’s trusts please contact us or your financial adviser for the brochure, A guide to trusts by Quilter International Trust Company (UK domiciles only).** This is based on our current interpretation of UK tax for the current tax year.

** Since 6 April 2017, if you leave your home to direct line descendants, which includes amongst others your children (adopted, fostered and stepchildren) and grandchildren, you could be entitled to the addition of the residence nil-rate band. This is £175,000 from the 2020/21 tax year.

Questions and answers


Q1. Could the European Wealth Bond be right for me?The European Wealth Bond could be right for you if you: – want all the investment decisions to be made by one or more discretionary asset managers

– would like to benefit from investment in a wider choice of assets than is normally permitted within an offshore bond in the UK, including direct equities

– want to invest, individually or jointly, a minimum of £100,000 or currency equivalent over the medium- to long-term, with the aim of achieving growth, bearing in mind that growth is not guaranteed

– are either a UK resident individual aged between 18 and 90, or a trust

– may want to use the bond as part of your tax planning

– may want the option of taking regular withdrawals.

The European Wealth Bond might not be right for you if you: – want to keep control and decide how your money is invested from outset

– have no other savings or investments

– need access to your capital in the short-term

– are not willing and able to accept the risk of potential investment losses.

The European Wealth Bond can be set up to continue after your death, possibly to help with inheritance tax planning. As your attitude to risk and your financial objectives change, you can inform us of changes to your Investment Mandate. If you have any questions about the suitability of this policy or, its features we recommend you speak to your financial adviser.

Q2. Is my money guaranteed?No, the value of your investment in the European Wealth Bond can go down as well as up and you may not get back the amount invested.

Q3. What might I get back?Your personal Key Features Illustration enclosed with this document gives examples of what you might get back. The projections shown are based on a range of assumptions, for example, future growth rates, none of which are guaranteed.

The amount you get back will depend on: – how much you have invested

– how long your premiums have been invested

– the investment performance of the assets managed by the discretionary asset manager

– how much you have previously withdrawn

– the charges on your policy

– the fees paid to your financial adviser

– any tax due when you cash in the policy

– how much you have asked us to withdraw to facilitate payment of fees to your financial adviser or the amount of the discretionary asset manager charge

– your attitude to risk as reflected in your Investment Mandate.

* Details of the PRIIPs regulations are set out in the Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations. (Prior to 1 January 2021 these regulations were set out in Regulation (EU) No 1286/2014 of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products.)


Q4. Who can make investment decisions?One or more discretionary asset manager will be appointed by Quilter International to provide investment services in respect of the assets linked to the portfolio fund for your policy.A discretionary asset manager is an individual or firm that is appointed by Quilter International to manage all of the assets in the portfolio fund linked to your policy.A discretionary asset manager holds regulatory authority to carry out discretionary investment management activities. You are able to request that one or more discretionary asset managers are appointed by completing the relevant section in the application form. Quilter International will make the decision on which discretionary asset manager(s) to appoint. The discretionary asset manager charge is a policy charge, so will not count towards your 5% tax deferred allowance. Please refer to the Policy Terms for further information on Quilter International appointing one or more discretionary asset manager to provide investment services in respect of the assets. Your financial adviser will be able to provide you with a copy of the Policy Terms.

Q5. Can I request a change to the discretionary asset manager? You may request us to change the discretionary asset manager we have appointed, which we will then consider.

Q6. Can I request more than one discretionary asset manager?Yes. You can request for us to appoint up to three discretionary asset managers, as long as the amount managed by each discretionary asset manager meets the minimum amount we require.

Q7. What if I no longer want the investment decisions on my policy be made by a discretionary asset manager appointed by Quilter International?

A key benefit of the European Wealth Bond is the ability of the discretionary asset manager to access a broader range of assets than is normally permitted within an offshore bond. This is only possible if the discretionary asset manager is appointed on a full discretionary basis with no influence from you or your financial adviser.You can however request that we change your policy by restricting the asset range, and if accepted, you will no longer need to have the investment decisions on your policy managed by a discretionary asset manager on a full discretionary basis. Restricting the asset range will result in some permanent changes to the way your European Wealth Bond works. Please see section titled ‘Restricting the asset range’ on page 20.


Q8. Who holds the assets linked to my European Wealth Bond? When you invest in a European Wealth Bond, the underlying assets linked to your policy are owned by Quilter International. We hold those assets with a custodian. Please find below a description of the two types of custodian available:Quilter International’s default custodian – is the professional banker or other organisation, which is authorised by its regulator to provide custodian and depository services, that we normally use to hold our assets.An authorised custodian - is a professional banker or other organisation which is authorised by its regulator to provide custodian and depositary services. You can request we hold our assets with an authorised custodian we have terms of business with, and will always be subject to our approval. Please refer to the Policy Terms for further information on appointing an authorised custodian to hold part or all of the assets. You may request Quilter International appoints, and subject to our approval, up to three authorised custodians, or our default custodian, or a combination of one authorised custodian and our default custodian. It should be noted that the nature of the services of a custodian mean they will not have any influence or say over the investment strategy.If you have requested more than one authorised custodian to hold the assets, you need to select one of them as a lead custodian. Where the assets are held in part by the default custodian, the default custodian will be the lead custodian. We will instruct the lead custodian to sell assets to pay for portfolio bond charges debited to the transaction account held by our default custodian.Please note the minimum investment amount per custodian is £50,000/€75,000 or currency equivalent.

Q9. What assets will I be invested in?The discretionary asset manager can choose from an extensive choice of collective investment funds and assets, including:

– external collective investment funds and unit trusts

– most investment trusts and exchange traded funds

– traded funds

– bank deposits

– structured deposits and notes

– stocks and shares*

– fixed interest securities and bonds.

However, the discretionary asset manager must ensure that the chosen assets are in line with our Investment Guidelines, the Investment Mandate and any restrictions set by the Central Bank of Ireland asset admissibility rules.

Assets that are able to be directly linked to you, such as physical property e.g. houses, wine, cars, etc are not permitted as these are outside the Central Bank of Ireland asset admissibility rules.

When you open your bond we will set up a Transaction Account which is held by us. We set up a Transaction Account so that monies from events such as initial and additional premium investment can be held before it is transferred to the authorised custodian and to receive any payments from the authorised custodian in respect of withdrawals, fees and charges. Where you have elected to use the default custodian we will use the Transaction Account to facilitate the buying and selling of assets. We also deduct fees and charges from the Transaction Account.* Not available if you request to restrict the asset range of your policy. See ‘Restricting the asset range’ section on page 20.


DefinitionsCollective Investments – are arrangements where investors pool their assets and have them professionally managed by an independent manager. Typical examples in the UK are authorised unit trusts and open-ended investment companies (OEICs).

Unit Trusts – are pooled investments created under trust laws. Investors buy and sell units in the fund, based on the buying (‘offer’) and sale (‘bid’) prices set by the investment management firm.

Investment Trust – is a form of collective investment found mostly in the United Kingdom. Investment trusts are closed-end funds and are constituted as public limited companies.

Exchange Traded Fund (ETF) – is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.

Bank Deposits – are made to deposit accounts at a banking institution, such as savings accounts, checking accounts and money market accounts.

Structured Deposits – are term deposits (like a fixed rate bond) with a variable return linked to the performance of an underlying asset (like the UK stockmarket).

Structured Notes – a structured note is a hybrid security that attempts to change its profile by including additional modifying structures. A simple example would be a five-year bond tied together with an option contract. This structure would work to increase the bond’s returns.

Stocks and Shares – Shares are sold by a company to raise money. Shares give the owners an interest in the company and a right to a share in the profits.

Fixed Interest Securities and Bonds – are securities which entitle the holder to interest during their life and repayment of the loan at maturity. They can be issued by companies or governments.

Q10. Can I change assets?Only the discretionary asset manager can change the assets*. You are prohibited from changing or influencing the asset selection to ensure the bond is taxed in the same way as a conventional offshore bond. However you are permitted to inform us of any changes in your attitude to risk via an Investment Mandate which we will consider and may forward to the discretionary asset manager. This facility is available three times in any 12 month period.*If you would like to change assets see Q7 What if I no longer want the investment decisions on my policy be made by a discretionary asset manager appointed by Quilter International?

Q11. What would happen if I was deemed to have influenced the assets linked to the bond?

If HM Revenue and Customs perceive you, or anyone connected to you, have influenced the selection made by the discretionary asset manager (and the assets linked to your policy have not been restricted) this would result in the policy being regarded as a Personal Portfolio Bond. The Personal Portfolio Bond legislation would then impose a tax charge on an artificial deemed gain on the bond on an annual basis.

Q12. What are Key Information Documents (KIDs) and Key Investor Information Documents (KIIDs)?

Key Information Documents and Key Investor Information Documents are issued by the fund manager, to give more comprehensive information about the way each fund works and its investment risks. Key Information Documents (KIDs), have been introduced gradually from January 2018. If no KID is available for a particular fund, the fund manager concerned will provide a Key Investor Information Document (KIID).

Both documents present similar information but are based on two separate pieces of European legislation.


Q13. What currency flexibility does my European Wealth Bond offer?With the European Wealth Bond you can choose which currency you want for policy valuations and premium payments.

– Policy currency – your European Wealth Bond investment can be held in any of the following curriencies: Pound, US dollar, Euro, Australian dollar, Danish krone, Japanese yen, Norwegian krone, Swedish krona, Swiss franc, Singapore dollar, New Zealand dollar, Canadian dollar or Hong Kong dollar. You can choose the currency in which you want your European Wealth Bond valuations to be displayed. This is known as the policy currency. This is also the currency in which the deduction of portfolio fund charges will be made.

– Premium currency – if the currency you choose to make your investment into the policy (the premium currency) is other than the policy currency, you should be aware that we will notionally convert your premium into your chosen policy currency. This means we will not physically convert the premium itself, just apply the converted amount to your policy. This currency conversion could expose you to exchange rate fluctuations. Any conversion that we make will be based on the closing market mid-rate* provided to us by a third-party currency rate provider on the date we receive your investment payment to our bank account. The converted premium will be the amount which is shown in your policy schedules.* All currencies have a market rate. Any provider dealing with currencies will independently set different ‘buy’ and ‘sell’ rates, which

include overheads and profit margins. The market midrate is derived from the midpoint between ‘buy’ and ‘sell’ rates used in the global markets.

Q14. How do I pay my adviser and discretionary asset manager?Any fee your adviser charges for advice must be agreed with you in advance, to make sure you know exactly what you’re going to pay and are happy that it’s fair and reasonable based on the service and advice provided. This fee is agreed between you and your adviser.

Financial adviser advice feesYou can pay your adviser’s fee in a number of ways. You can pay it directly to your adviser, for example by cheque, keeping it completely separate from your policy. Alternatively, you can ask Quilter International to facilitate the fee payment by making a withdrawal from the policy that’s equivalent to the fee, which will then be paid to your adviser.

If you decide on this route, there are a number of options which can be used on their own or in combination with each other:

Initial fee from your payment before it is invested as a premium in the policy: you can ask Quilter International to pay a fixed monetary amount or a percentage of the initial investment we receive from you to pay to your financial adviser.

Initial fee taken as a withdrawal from your policy once we have accepted your application for the policy: you can ask Quilter International to make a one off withdrawal from your policy equal to a fixed monetary amount or percentage of the premium invested in the policy.

These initial fees can also apply to advice for top ups where the fee can be paid either before or after the top up is accepted by us. If you ask us to pay a fee after the policy or top up is accepted we will treat this as a withdrawal.

Ongoing service fee: you can also ask Quilter International to make a regular withdrawal for ongoing fees of a fixed monetary amount or an annual percentage of the value of the portfolio fund linked to your policy to pay a regular fee to your financial adviser for ongoing advice. This regular withdrawal for ongoing fees is payable quarterly in arrears.

Ad hoc fee: you can also ask Quilter International to pay a one off withdrawal to your financial adviser to pay an ad hoc fee. This must be a monetary amount.


Discretionary asset manager chargeThe charge is a % a year of the value of the portfolio fund or an agreed monetary amount to be taken quarterly as stated in the application form or appointment form.

A separate charge will apply for each discretionary asset manager appointed. Please refer to your Policy Terms for further information on the discretionary asset manager charge.

Q15. Where can I find out about the charges made by Quilter International for managing my European Wealth Bond?

Your personal Key Features Illustration provides details of the charges made by Quilter International for managing your European Wealth Bond, how the charges are taken, and the effect they could have on the value of your European Wealth Bond.

Full details about the charges that may apply to your European Wealth Bond will be confirmed in the Policy Terms which will be sent to you, together with your policy documents, after your bond has started.

There are two possible types of deductions from your policy that you should be aware of:

Quilter International portfolio fund chargesThere are a number of charges that we may deduct from your policy, for example to cover administration and management of your policy and the portfolio fund, and any asset dealing charges. Any funds that the discretionary asset manager invests in will also charge an annual management charge. The cost of this varies from fund to fund. You can find a description of all the charges in the Policy Terms. Your financial adviser will be able to provide you with a copy of the Policy Terms.

Paying for third party and other chargesYou may incur some additional charges due to the nature of this investment, such as bank charges, and telegraphic transfer charges. Your financial adviser will provide details and explanations of all the charges.

Q16. How are fees, charges and withdrawals paid?We will pay these amounts from the Transaction Account as they fall due. Where a discretionary asset manager is appointed by us we will invoice the authorised custodian for payment.

Please refer to the Policy Terms for further information on meeting the cost of charges and funding regular withdrawals and regular withdrawals for ongoing fees. Your financial adviser will be able to provide you with a copy of the Policy Terms.

Q17. How will I know how my European Wealth Bond is doing?We will send you quarterly statements which will show the value of your European Wealth Bond as at each quarter end date. The value of your bond will depend on the performance of the underlying assets linked to your policy.

Q18. Can I take money out?The European Wealth Bond gives you the flexibility to access your capital – subject to a minimum regular withdrawal amount of £400 and £1,000 for a one off payment provided that the amount in your policy can sustain both the withdrawals and the charges involved. Any withdrawals made to pay for advice fees are exempt from this monetary limit. Please see question 14 for further information on fees.

You can withdraw up to 5% of the original premium (plus any additional premiums) each policy year without any immediate UK tax liability. This allowance will be reduced by the amount of any withdrawals made to pay fees to your financial adviser. If you don’t use this allowance in a specific policy year, it can be carried over to the next policy year, so you could withdraw 10% tax deferred for example, and so on.

No policy encashment charges apply to this product. If the value of your policy falls below the minimum value for maintaining a policy (currently £10,000), we may decide to surrender it unless you agree to make a further premium to top up your investment which is subject to our acceptance.


Regular withdrawalsYou can use your policy to create a regular ‘income’ stream; either yearly, half-yearly, every four months, quarterly, bi-monthly or monthly.

Please refer to the Policy Terms for further information on taking money out of your policy. Your financial adviser will be able to provide you with a copy of the Policy Terms.

One-off withdrawals (part surrenders)As long as you leave the minimum amount in your policy, you can normally withdraw any amount you want (subject to a minimum of £1,000) at any stage by making a request to us.

However, please remember that the European Wealth Bond is designed for medium- to long-term investment, so taking money out of your policy in the early years can dramatically reduce its potential.

You should ask your financial adviser about the tax and financial planning implications before you commit to withdrawals or surrendering individual policies.

Surrendering individual policiesAs an alternative to making one-off withdrawals across all of the policies, you could request to fully cash in one or more individual policies and receive the surrender proceeds.

If you fully cash in individual policies we will pay you the surrender value which reflects the deduction after any outstanding charges for those individual policies.

These withdrawals are not subject to the 5% tax deferred allowance, but if there is a gain (total amount paid out including all the previous withdrawals is more than the total investment made to the policy and any tax paid on withdrawals above the 5% tax deferred allowance), you may be liable to income tax on the gain.

Q19. How can I make payments to Quilter International?You can make your payment by electronic bank transfer in most major currencies. When you make an electronic bank transfer you can find full information on the banking details in the application form which your financial adviser can give to you.

You can add to your investment whenever you like (subject to our acceptance) by making further payments of at least £5,000 (or other currency minimum – ask your financial adviser for details). Please contact your financial adviser or write to us at our Administration Centre address after your policy has been set up if you wish to add to your investment.

Q20. What happens to my European Wealth Bond when I die, or on the death of another policyholder/life assured?

European Wealth Bond – PRIIPsIf you choose the European Wealth Bond – PRIIPs, when the sole life assured or the last person whose life is assured dies, we will pay out a death benefit of 101% of the surrender value of your policy. (So, if the surrender value of your policy on notification to us of death is £200,000, for example, the total amount paid out will be £202,000.)

The treatment of your policy when a death occurs depends on whether there are surviving policyholders (which includes trustees of a trust) and/or lives assured. Note that policyholders are the owners of the policy whereas lives assured are the people whose lives are covered in the insurance contract. Therefore, the insurance contract will end when the last life assured dies. Different scenarios are explained below:

A policyholder has died and at least one policyholder is still alive

– If at least one life assured is still alive, the bond will continue and will automatically transfer to the surviving policyholder(s) or trustees where a trust has been used.

– If all lives assured have died, the bond will come to an end. The death benefit will be payable to the surviving policyholder(s) or trustees where a trust has been used.


The last policyholder has died

– If at least one life assured is still alive, the bond will continue and ownership will be transferred to the legal personal representatives of the deceased policyholder’s estate. If a trust has been used and the last trustee has died then the legal personal representative of the last trustee will appoint a replacement trustee and the bond will continue to be owned by the trustees.

– If all lives assured have died, the bond will come to an end and the death benefit will be payable to the deceased policyholder’s legal personal representatives. If the bond is subject to a trust, the death benefit will be payable to the trustees of the trust (once appointed by the legal personal representative of the last trustee).

European Wealth Bond – RedemptionThe treatment of your policy when a death occurs depends on whether there are surviving policyholders (including trustees of a trust).

If a policyholder has died and at least one policyholder is still alive – the bond will continue and will automatically transfer to the surviving policyholder(s) or trustees of the trust where a trust has been used.

If the last policyholder has died – the bond will continue until the end of the 99-year term. Ownership of the bond will pass to one of the following parties:

– If the bond is subject to a trust, then the legal personal representatives of the deceased trustee will appoint a replacement trustee and the bond will continue to be owned by the trustees of the trust.

– In all other cases, ownership will be transferred to the legal personal representatives of the deceased policyholder’s estate.

They can then choose whether to:

– keep the bond and appoint a beneficiary to become the policyholder by executing a deed of assignment, or

– encash the bond to pay the proceeds to your estate’s beneficiaries.

Q21. What about tax?The following information is based on our understanding of the current UK tax legislation although tax treatment will depend on your country of residence when you cash in your bond. The tax position of your bond may change in the future. You may be subject to additional taxes or costs which are not accounted for within the contract. Please contact your financial adviser for advice about tax liabilities.

Personal taxThe following applies if you are a UK taxpayer. If you are not a UK taxpayer then you need to take advice about tax from your financial adviser.

– You will not normally have to pay capital gains tax in connection with your policy.

– You may withdraw up to 5% of your original premium (plus any additional premiums) each policy year for up to 20 years without any immediate liability to income tax.

– If you don’t use this allowance in a specific policy year, it can be carried over to the next policy year, so you could withdraw 10% tax deferred for example, and so on.

– If you withdraw more than the cumulative 5% tax deferred allowance, you may be liable to income tax on the excess (known as an excess gain)*.

– If you request that we facilitate payment of regular withdrawals for ongoing fees this will be a part surrender and form part of your 5% tax deferred allowance.

– Where the discretionary asset manager is appointed by us, the discretionary asset manager charge will not form part of your 5% tax deferred allowance.

– When you finally cash in your policy, you may have to pay income tax on any gain you have made.

– Any gain made could also affect your entitlement to children’s tax credit*.


– If you have chosen the life assurance option, your policy is treated for tax purposes as though you had fully cashed it in just before the death of the sole life assured or the last life assured.

– If you have set up your policy under trust it will be treated accordingly for tax purposes.

– The discretionary asset manager charges are currently exempt from VAT.* The tax position of your policy may change in the future. Please refer to your financial adviser for advice about tax liabilities.

Tax on policies under trustAn appropriate trust can offer a means of holding and managing assets such as your policy for people who may not be ready or able to manage it for themselves. A trust may also be useful for tax planning purposes. Used in conjunction with a will, it can also ensure that your assets are passed on in accordance with your wishes after you die.

If your policy is placed under trust and you subsequently fully or partially encash it there may be a potential income tax liability which could be assessible on you as the settlor, the trustees or the beneficiaries. Any liability to income tax will depend on several factors, including the type of trust and when the policy is cashed in by the trustees. We strongly recommend that you speak to your financial adviser before making any decisions regarding trusts.

Tax on fundsThe funds and assets in which your policy are invested are not currently liable to taxes in Ireland, where Quilter International Ireland dac is based. However, investment income building up in any fund/asset may be subject to a tax deduction in the country where the income was produced.

Q22. Can I put my bond into a trust?Yes, it is possible to place your bond into a trust. If you put your bond in a trust, the trust conditions will need to be followed by the trustees when making changes to the bond. Details of how the trusts work can be found in the relevant trust literature and in the trust documents. It is important for trustees to ensure that any changes they make to the bond do not breach the trust conditions. For Discounted Gift Trusts to be effective for inheritance tax planning, the settlor(s) and their spouse or civil partner must not be lives assured under the European Wealth Bond – PRIIPs. We strongly recommend that you speak to your financial adviser before making any decisions regarding trusts.

Q23. Can I change my mind and cancel my European Wealth Bond?Yes. When we notify you that your application for the European Wealth Bond has been accepted and send you the appropriate documentation, we will remind you that you have 30 days to change your mind and cancel your contract. You can do this by writing to the Administration Centre at the address shown in contact details on page 22.

If you decide to cancel, we will give you your money back. However, if the value of your investment has fallen in the meantime, you may not get back the full amount you paid in. You should be aware that this reduction could be substantial if the assets the discretionary asset manager has chosen have a medium or high level of volatility or risk, or non-refundable charges. The description of the assets will give details if this applies. In cases where the asset selected is not redeemable for a period, we may not be able to return that part of your premium until the end of that period. Please note that assets are priced on a weekly or less frequent basis, and certain assets also have cut off times for dealing, so the discretionary asset manager may not be able to disinvest as quickly as you would like during periods of market volatility. This therefore could potentially cause delays in you receiving your money back. Please discuss this with your financial adviser if this is an area of concern for you. Any Quilter International charges will be refunded in full.

If, at your request, we have facilitated the initial fee for advice given to you by your financial adviser and you decide to cancel your contract we cannot reclaim or refund the fee. The fee agreement is between you and your financial adviser, not Quilter International and it is up to you to reclaim the fee.


Restricting the asset rangeYou can request that we change your policy in the future by restricting the asset range. If accepted, you will no longer need to have the investment decisions on your policy managed by a discretionary asset manager on a full discretionary basis.

This section will explain the process of requesting the asset range on your bond is restricted, and provide more detail on the options available to you thereafter.

Q24. What is a request to restrict the asset range? You may request that Quilter International Ireland restricts the asset range in your European Wealth Bond to assets which fall within Section 520 of the UK Income Tax (Trading and Other Income Act) 2005 or successor legislation. If we agree to restrict the asset range, any assets that fall outside the new restricted asset range will need to be sold, and your policy will no longer being able to hold certain asset classes, such as equities.

If we agree to your request, the asset restriction is irreversible, so please ensure you have spoken with your financial adviser before making this request.

To make this request, please complete the form titled ‘Request for Quilter International Ireland to Restrict Assets’.

DefinitionsPermissible Assets are Assets which fall within section 520 of the UK Income Tax (Trading and Other Income Act) 2005 or successor legislation.

Non-Permissible Assets are Assets which do not fall within section 520 of the UK Income Tax (Trading and Other Income Act) 2005 or successor legislation.

Q25. Once the assets are restricted, can I request you appoint a discretionary asset manager on an advisory basis, or a fund adviser (on a discretionary or advisory basis) or make investment decisions myself?Yes. Once you have recieved confirmation from Quilter International that (1) we have accepted your requested to restrict the assets; (2) Quilter International have instructed the discretionary asset manager(s) to sell any non permissible assets (3) the proceeds have been credited to the relevent transaction account (4) this being the date that the amendments in Appendix 1 in Part C of the Policy Terms apply from to allow the following:

Fund adviser:

A fund adviser is an individual or firm that you appoint to manage some or all of the assets in the portfolio fund linked to your policy. There are two types of fund adviser:

– An advisory fund adviser can help guide you through the process of choosing assets and then manage the relevant assets in the portfolio fund linked to your policy for you. However, all decisions will ultimately be made by you.

– You can also go one step further and allow your fund adviser to make decisions on your behalf in line with pre-agreed boundaries (provided they have the necessary regulatory permissions). This role is known as a ‘discretionary fund adviser’.


Terms of business will normally need to be agreed between you and the fund adviser and any fees for such a service are personal to you and will not be deemed a portfolio fund charge. If you request that we facilitate payment of a fee to your fund adviser, this will be a part surrender or regular withdrawal and form part of your 5% tax deferred allowance. Please refer to the Policy Terms for more information on appointing a fund adviser.

Discretionary asset manager appointed by Quilter International on an advisory basis:

A discretionary asset manager on an advisory basis means the discretionary asset manager holds the regulatory authority to advise on investments but Quilter International is making the investment decisions. The discretionary asset manager must obtain your agreement to the investment recommendation they are providing to Quilter International before they submit any instruction to us or the dealing desk of the authorised custodian.

Q26. How do I pay the fund adviser?There are a number of fee payment options which can be used on their own or in combination with each other:

– Fund adviser fee: you can ask Quilter International to make a regular withdrawal for ongoing fees for a fixed monetary amount or an annual percentage of the assets held in the portfolio fund linked to your policy in order to pay a regular fee to the fund adviser you have appointed to manage those assets. You can request a fund adviser fee for each fund adviser you have appointed in respect of the assets they are appointed to manage for you. This regular withdrawal for ongoing fees is payable quarterly in arrears.

– Ad hoc fee: you can ask Quilter International to pay a one-off withdrawal to your fund adviser to pay an ad hoc fee. This must be expressed as a monetary amount.

– Dealing advice fee: (only available where some or all of the assets linked to your policy are held with Quilter International’s default custodian): you can ask Quilter International to pay a dealing advice fee that will be a fixed percentage of the value of the assets held with our default custodian on the purchase date of a qualifying transaction. Fees are payable quarterly in arrears to your fund adviser for ongoing investment services provided.


Other InformationContact detailsIf you need any further information about this product, please contact your financial adviser in the first instance. If you wish to contact our Administration Centre directly, you can do so in the following ways:

Phone: +353 (0) 1 479 3900

Fax: +353 (0) 1 475 1020

By writing to our Quilter International Ireland dacAdministration King Edward Bay HouseCentre at: King Edward Road Onchan Isle of Man IM99 1NU

Complaint proceduresCustomer satisfaction is very important to us at Quilter International, but if you do have any cause to complain about the service provided, either by your financial adviser or by Quilter International, you should proceed as shown below.

If your complaint is about the advice you have been given, such as the underlying investment options, or the way in which a product was sold to you, you should contact your financial adviser in the first instance.

You can also write to our complaints team at this address:

Quilter International Ireland dac Hambleden House 19-26 Lower Pembroke Street Dublin 2 D02 WV96 Ireland

Tel: +353 (0)1479 3900. Email: [email protected]

What if you are not satisfied with the outcome?

If the complaint isn’t resolved satisfactorily, or within a period of two months starting on the date when the complaint was received, then you can contact the Financial Services and Pensions Ombudsman using the contact details below.

Financial Services and Pensions Ombudsman Lincoln House Lincoln Place, Dublin 2 D02 VH29 Ireland

Tel: +353 (0)1567 7000 Email: [email protected] Website: www.fspo.ie


About the Policy TermsThis Key Features Document gives a summary of our European Wealth Bond. It does not include all the definitions, exclusions, or Policy Terms.

A copy of the relevant Policy Terms and our customer brochure is available on our website, alternatively you can speak to your financial adviser.

We reserve the right to amend certain contractual terms, some without prior notice, as explained in the Policy Terms.

If we do so we will let you know in writing and you may, if you wish, cash in your policy.

Unless the front page of the application form indicates otherwise, the contract you are applying for will be subject to the law of England and Wales. If your application is accepted, we will send you the Policy Terms confirming the law applying to the contract. You can also obtain a copy of the Policy Terms from your financial adviser.

All our literature and future communications to you will be in English.

We provide all disclosure documents in accordance with the pre-contract disclosure requirements applying in the United Kingdom.

Stability and securityThe European Wealth Bond is designed to give your investment every opportunity for growth in a secure and cost efficient environment.

Quilter International’s presence in the European city of Dublin means you can be confident that your investment has regulatory protection. Ireland is a full member of the European Union and has strict money laundering legislation which complies with the EU standards.

Ireland has a well established and rigorous life insurance regulatory system, which has enabled life insurance companies to be well positioned to operate even in turbulent economic times. As part of this regulation Quilter International is required to prepare and publish a Solvency and Financial Condition Report (SFCR) each year for the Irish Regulator under the Solvency II regulations. This report details the financial position of the organisation and will enable a comparison with other life assurance firms’ financial positions. You can access this document from our website.

Quilter International is regulated by the Central Bank of Ireland, which has supervisory responsibility for the life insurance industry. All life insurance companies licensed in Ireland are subject to Irish Regulation which comply with EU standards.

Investor protectionPolicyholder protection schemes are regarded as a safety net for policyholders of a life assurance company and allow policyholders to claim for compensation in the unlikely event the life assurance company becomes insolvent. The rules governing schemes and specific rights for each policyholder vary from one jurisdiction to another and in some jurisdictions there is no scheme at all.

In Ireland there is no formal investor protection scheme. However, there are a number of regulatory measures in place to protect the policyholders of an Irish life assurance company.

Quilter International only writes unit-linked business and therefore there is always a close link between the value of the company’s assets and the liabilities to its policyholders. Assets linked to Quilter International policies are segregated from Quilter International’s business assets in order to comply with Irish legislation.

https://www.quilterinternational.com/syssiteassets/documents/report/qii-solvency-and-financial-condition-report.pdf/


The value of your European Wealth Bond is linked to the value of bank deposits and investments generally managed by third parties such as banks and fund managers. In the event that the provider of an asset, including bank deposits, fails, compensation will depend on the scheme in place where that provider is registered. You should be aware that any compensation arrangements are likely to relate only to Quilter International’s aggregate holdings across all affected policies rather than to individual investors. As a result you may not benefit from any scheme.

Full details are available from Quilter International on request or please refer to the Quilter International Ireland Investor Protection document.

As you are invested into funds or bank deposits through a European Wealth Bond you are unlikely to be eligible for any compensation schemes which may apply to individuals investing directly. If this is a concern, please discuss this with your financial adviser so you are aware of the possible risks.

Quilter International Ireland dac, which provides the European Wealth Bond, is regulated by the Central Bank of Ireland.

Quilter International products are available only through professional financial advisers.

Quilter International Ireland dac is a provider of long-term life assurance.

This document was last updated in December 2020. Please confirm with your financial adviser that this is the most up-to-date document for your product or servicing needs.

https://www.quilterinternational.com/siteassets/documents/Sales-aid/8314_Ireland_Investor_protection.pdf

11702/INT20-2088/December 2020

www.quilterinternational.comQuilter International Ireland dac is regulated by the Central Bank of Ireland, Registered No 309649. Registered and Head Office address: Hambleden House, 19-26 Lower Pembroke Street, Dublin 2, D02 WV96, Ireland. VAT number for Quilter International Ireland dac is 6329649S. Administration Centre for correspondence: King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Tel: +44 (0)1624 655 555 Fax: +44 (0)1624 653400.

Quilter International is registered in Ireland as a business name of Quilter International Ireland dac.

All promotional material is approved by Old Mutual Wealth Limited. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority. Financial Services register number 165359.

The rules made under the Financial Services and Markets Act 2000 (as amended) for the protection of retail clients in the UK do not apply.

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