Buyout Bonds

B

Bedlam

Registered User
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277
Two questions on the above please that someone might answer.

1. Does one have to leave the Buyout Bonds with the Company they were placed with day one or is one free to move them around to obtain better charging structures and fund performance.

2. Will the new levy apply to these Bonds

Many Thanks

Bedlam
 
1. You are free to move your buy-out bond to other providers if you wish. However, be aware that you will be probably be hit with another bid/offer charge (from new provider) and possibly early surrender penalty (from existing provider) whenever you transfer

2. the draft legislation doesn't specifically refer to buy-out bonds. This may be because there is no specific legislation covering the product. However, the industry feels that there is no logical explanation for excluding them so it's likely that the bill will included buy-out bonds.
 
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