Scottish Equitable International is targeting IFAs advising the corporate market with the capital redemption bond.
The bond is the latest in a series of Dublin-based products from ScotEq International since August 2002.
SEI says the bond structure makes it popular with corporate investors because, with no lives assured, there is no compulsion to take benefits on the death of an individual. The plan can be held without interruption over a fixed term of 99 years.
This allows companies greater control over when they make withdrawals or cash in the bond, which affects how much tax they pay on the proceeds. A company could decide to time its withdrawals or encashment to coincide with a period when its taxable profits attract lower corporation tax.
Minimum investment is £75,000. Charges are 1.8 per cent of premiums each year for five years. Commission is 5.75 per cent.
International managing director David Healy says: “It is becoming clear that IFAs love the Dublin story and our Dublin base has certainly proved to be an outstanding move for Scottish Equitable International.
“The corporate market is one of our target segments and this new product is central to our strategy. We are now entering an important new development phase which will enable us to fine-tune our product range to meet the emerging needs of the offshore market.”