HSBC Life is making its first move into the IFA market with a new onshore investment bond.
The bond is available to IFAs directly from HSBC next Monday and will be added to the Ascentric platform in the coming months to offer open architecture, with access to around 2,000 funds.
The bond is available in two forms, a fee-based, “select” version or commission-based option called “flexible”.
It offers a multi-life facility where, unless it is cashed in, the investment continues until the death of the last surviving life insured, with up to 10 lives permitted.
HSBC Life senior product manager David Meathrel says: “It is very much an advice-driven product designed specifically for the IFA market.
“It will give them the widest fund choice of any bond on the market.”
Ascentric managing director Hugo Thorman says: “This is a first for HSBC Life as up until now it has not distributed its products via IFAs.
“I have no doubt that the users of the platform and advisers generally will see this product fitting well within a client’s balanced portfolio.”
Investment Quorum chief executive Lee Robertson says: “There are not that many decent onshore life bonds in the market so if HSBC Life is coming in competitively and allowing open architecture, then it may well be a good move.”