Bonds  

Canada Life unveils capital redemption policies

Canada Life unveils capital redemption policies

Canada Life International has extended the availability of Capital Redemption Bonds (CRB) from both its Isle of Man and Dublin operations.

The bonds offer two maturity options depending on the level of investment flexibility desired by the investor.

With immediate effect capital redemption options are available under the Premiere Europe and Premiere Europe Discounted Trust accounts offered through Canada Life International Assurance (Ireland) DAC in Dublin. 

Article continues after advert

These accounts are designed for someone looking to defer the effect of direct UK taxation on their investment while retaining access to the investment or wishing to take a regular income from the investment.  

A key benefit of a capital redemption bond is the absence of needing to select lives assured parties.

Sean Christian, executive director of Canada Life’s International businesses, said:  “Our market has seen significant provider consolidation recently and this has limited the availability of Capital Redemption Bonds from providers.  

“Traditionally these products have been issued from the Isle of Man and there is extremely limited choice from Dublin providers.  

“We are delighted to fill this gap in the market by today making this option available through our Dublin-based company. 

“The extension of our proposition is good news for estate planners, good news for eligible trusts and good news for our advisers, further demonstrating Canada Life’s long term commitment to the UK market.”

Minesh Patel, managing director of London-based advisers EA Financial Solutions, “Offshore is becoming expensive for providers to run. The number offering these bonds is extremely restricted. It is nice to see Canada Life offering these options.”

emma.hughes@ft.com