Type: S32 transfer plan
Minimum premium: No minimum
Minimum-maximum ages: 18-75
Fund links: Choice of 75 funds from the tailored selection plus four multi-manager Elite managed funds and five multi-manager Elite sector funds
Options: Self-investment option providing access to all Inland Revenue permitted investments including commercial property, clustering option
Charges: Initial 150, annual 95, initial 945 for lifetime option plus fund charges
Allocation rate: 100%
Commission: Subject to negotiation with client
Tel: 0845 129 9993
Winterthur has revamped its S32 plan by introducing a clustering option allowing clients to create up to 50 identical policies to protect their tax-free cash allowance before A Day on April 6, 2006.
Origen technical manager Bob Perkins says: In common with other providers who are looking to secure business ahead of and after April 6 2006, Winterthur has updated its S32 offering. As we would expect, it has designed a very flexible product with a wide range of options, including self investment.
Perkins feels the charging structure is modern, flexible and transparent, while the option to take in specie transfers may be of particular interest. Also of interest is the facility to switch between the two plans without incurring penalties, allowing those who want to widen investment choices in the future to do so, he says.
Perkins feels the basic product charges are competitive and thinks the alternative one off lifetime option may be appealing. The product literature is clear, concise and well presented, albeit that the information is not necessary all in one place, he says.
Examining the negative features of the plan he says: There is not much to dislike, based upon what I have seen. However, he feels that w hen dealing with clients for whom there is no urgency in making a decision, IFAs might want to see the full post A-Day offering before making any final recommendations.
He feels the flexibility of the plan may suit post A-Day planning but some features of the new regime may or may not feature in plans effected before April 6, April 2006. Winterthur, in common with other providers, has yet to decide precisely how the rules for pre A-Day contracts will be amended, says Perkins.
Scanning the market for potential competitors Perkins says: There has been a lot of interest in this market in the run up to A-day and several providers have updated their plans. I see the main competitors continuing to change as products are introduced and refined, while regulations are clarified. At present, Clerical Medical, Skandia, GE, AXA will all present Winterthur with some competition.
Suitability to market: Good