Generali pulls
Vision from
Belgium and
Netherlands
Generali PanEurope (GPE)
has withdrawn its regular
premium Vision product
from sale in Belgium and
the Netherlands following
a “review of market practices”
in both countries.
In a letter to advisers,
Generali said Vision, which
accounts for around 1%
of its total AUM, would
close to new business
on 31 January. The letter
gave assurances the group
would continue to provide
life products and support
for the two countries.
Generali also said it is in
the process of developing
a new unit-linked regular
savings product for both
markets, with launch earmarked
for the third quarter
of this year.
Sam Instone, managing
director of IFA AES
International, said he was
not surprised at the decision
to withdraw Vision.
“Skandia International,
Zurich International Life
and Friends Provident
International have already
withdrawn their own unitlinked
savings plan products
from the European
market so it is not surprising
to see GPE follow suit,”
he said.
Instone added that the
sale of insurance-based
investment products within
Europe from non-EU-domiciled
providers could breach
the rules of the Markets
in Financial Instruments
Directive which may be
the reason for withdrawing
the product.
NEWS
Hong Kong brokers told to
disclose their commission
BY HELEN BURGGRAF
Insurance intermediaries
in Hong Kong have been
warned they should disclose
to clients commission
they receive from insurers,
or risk violating the
Chinese special administrative
region’s Prevention of
Bribery Ordinance (PBO).
The recommendation,
from the Hong
Kong Confederation of
Insurance Brokers (CIB)
to its members, followed
concerns expressed by the
Independent Commission
Against Corruption last
year that the industry’s current
standard practice fell
short of complying with
the ordinance.
Sources familiar with the
new advice warn, though,
that adoption of compliance
disclosure by intermediaries
may be slow. In
part, this may be because
the recommendation that
brokers comply is, for now
at least, only voluntary,
meaning that competitive
pressures and bottom line
considerations could influence
take-up.
The CIB’s recommendation
is also weakened
by the fact it comes from
only one of Hong Kong’s
two insurance industry’s
trade bodies – which also
act as non-statutory regulators.
There are also no
provisions for enforcing
disclosure or handling
complaints by clients in
the event firms do not disclose,
Hong Kong sources
told International Adviser.
The other insurance
regulatory body, the
Professional Insurance
Brokers Association, has
not issued any recommendations
on the subject.
The final word on commission
disclosure may
come when Hong Kong’s
Securities and Futures
Commission (SFC) issues
what is expected to be
a raft of new measures
aimed at protecting retail
investors, including, it is
thought likely, a requirement
for pre-sale disclosure
of all commissions,
fees and “other benefits”
paid by product issuers.
A consultation on the
proposed regulations
closed in December, but
the SFC’s final draft is not
thought imminent.
FPI overhauls its Reserve Advance offshore bond with several improvements
Friends Provident
International has completed
an overhaul of its
Reserve Advance offshore
bond, adding new charging
options and increased
scope for fund rebates,
among other changes.
The product was
“soft launched” for the
UK SIPP providers push for tax changes
BY HELEN BURGGRAF
Efforts by UK SIPP providers
aimed at reducing the
flow of pensions overseas
were revealed last month
when one of the country’s
largest SIPP companies disclosed
almost £500m of UK
pension funds had been
transferred offshore into
QROPS in the two years
after 6 April ’06, known as
A-Day.
AJ Bell said a Freedom of
Information request it made
to HMRC had revealed that
more than three times as
many transfers to QROPS
had occurred during this
two year period than
to alternatively secured
UK market last summer,
replacing FPI’s Isle of Man
domiciled Reserve bond.
However, following market
feedback, a number of
improvements have been
in development.
These include the option
of a single annual policy
charge, pricing based on
ASP transfers vs QROPS transfers
Tax year Alternatively secured pensions Transfers to QROPS
2006/07 1,109 2,535
2007/08 1,211 4,817
Source: FOI request to HMRC by AJ Bell
pensions (ASP).
The figures are particularly
striking because
QROPS schemes may
not be used by UK residents
who have no intention
of moving abroad
permanently.
AJ Bell is among those
seeking a change in the
current 82% tax penalty
applied on death to ASPs,
which it and other pensions
product providers say
is encouraging people to
specific fund choices and
a greater number of fund
rebates and discounts.
Reserve Advance also
allows investment in personalised
assets as well
as funds, includes trusts
options, is open architecture
and has eight currency
choices.
make other arrangements,
including QROPS, rather
than keeping their money
in UK schemes.
News of the efforts to
slow the flow of pensions
overseas came as QROPS
providers in Gibraltar continued
to seek clarity on
what is understood to have
been a breakthrough in
efforts to get HMRC to
recognise their schemes,
as reported on these pages
last month.
Peter Dodds, FPI head
of marketing, said: “The
enhancements very much
bring Reserve Advance up
to speed with the best the
UK market has to offer.”
FPI’s Reserve product,
though no longer sold to
UK investors, continues to
be available overseas.
NEWS
IN BRIEF
Malta, China in MOU
The Malta Financial
Services Authority
and the China
Securities Regulation
Commission have
signed a memorandum
of understanding to
“protect and promote
the development”
of their securities
markets by providing
a framework for
co-operation and
information exchange.
Mirae Sicavs now
available in the EU
Mirae Asset Global
Investments has
registered its
Luxembourg-domiciled
Sicav range, which
focuses on emerging
markets and the Asia-
Pacific region, for
distribution in the
UK, Sweden and the
Netherlands.
Henderson names
Lars Albert
Henderson Global
Investors has named
Lars Albert director of
sales in Germany. He
had been with SEB
Asset Management,
where, as senior client
executive, he focused
on the wholesale
markets in Germany,
Luxembourg and
Austria.
Ferrans named IMA
chairman
Douglas Ferrans,
chairman of Invista
Real Estate Investment
Management, has been
named chairman of
the UK’s Investment
Management Association,
succeeding
Robert Jenkins, who
has joined hedge fund
manager Combinatorics
Capital in New York.
For the current and all
previous editions, with
full news archive, go to
www.international-adviser.com
FEBRUARY 2010 [www.international-adviser.com] INTERNATIONAL ADVISER
3
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