CMI Corporate Investor product details
CMI Corporate Investor is explained in full in our product literature. Here are
some of the main details to help give you an understanding of how the product works.
Please click on the options below for more information:
The minimum investments amounts (or currency equivalents) are:
We may review the minimum initial and additional investment amounts from time to
time.
You can make additional investments at any time subject to the minimums shown above.
However, we reserve the right to decline additional investments if the CMI Corporate
Investor is no longer available for new investors.
CMI Corporate Investor can only be denominated in pounds sterling. Your quarterly
statement and charges are shown in the base currency of the bond.
You can invest in assets denominated in other currencies, for example Euro and US
Dollar. Full details of the acceptable currencies are available upon request. Please
remember that currency exchange fluctuations can have an effect on the value of
the investment.
The cash account is a key part of CMI Corporate Investor. It works just like a bank
account and its purpose is to facilitate monetary transactions in and out of the
bond. It is not designed as an investment option. All money paid in or out of CMI
Corporate Investor passes through the cash account, including all new investments,
income received in the form of dividends and proceeds when investments are sold.
All charges, fees and withdrawals are deducted from the cash account balance.
The cash account is automatically set up in the base currency of the bond when the
bond is taken out. Additional cash accounts are available in most major currencies
to allow investment in funds other than in the bond base currency.
It is important to make sure that there is enough money in each cash account to
pay for charges and fees and to cover regular withdrawals. If the cash account goes
overdrawn you may not be able to make new transactions or buy assets and you will
also be charged interest on the overdraft.
When the cash account is in credit it currently earns interest at 2% below the currency
base rate. There is an overdraft facility of £5,000 (US$7,500; €7,500) and debit
interest is currently charged at 4% above the currency base rate.
It is the policyholder’s or the appointed investment adviser‘s responsibility to
manage each cash account to make sure they stay in credit.
Overdrawn accounts usually occur through the deduction of fees and regular withdrawals.
There are several ways to help maintain a credit balance:
- Allocate part of the initial investment to the cash account.
- Choose investments which pay an income.
- Set up a standing instruction to fund the cash account using our
regular dealing facility. This way you can redeem a set amount from one or more
of the underlying investments on a regular basis.
- Sell some assets.
- Make an additional investment.
- Closely monitor and manage cash balances - especially across multiple cash accounts.
- Select the appropriate cash account to fund an investment purchase.
- Pay proceeds from investment sales to other currency cash accounts.
CMI Corporate Investor is a whole of life assurance policy which is available on
a single or multiple life assured basis. The bond can have up to eight individuals
as joint lives assured. The lives assured are not policy owners. Please note that
special conditions may apply if one or more of the lives assured are not in good
health or if the lives assured are aged 64 or over at the start of the bond.
In the event of the death of a life assured, please send us an original death certificate
by post so that we can update our records. We will return the death certificate
to you within 5 working days and notify you of any additional requirements. We are
unable to accept certified copies of a death certificate due to Crown copyright.
If the relevant death triggers a claim (please refer to the event specified on the
policy certificates), please advise us in writing as soon as conveniently possible.
We will then notify you of the documentation needed to process the claim, which
may include the following:
- A copy of Manx Grant of Representation*.
- Completion of our Form of Authority & Discharge by the claimant(s).
*The bond is a Manx asset and CMI Insurance Company Limited therefore requires a
Grant of Representation issued by the Isle of Man Probate Office. Manx Advocates
can make this application if required. We regret that we are unable to recommend
individual firms of Manx Advocates but full details of firms specialising in probate
are available from:
Isle of Man Law Society
27 Hope Street
Douglas
Isle of Man
IM1 1AR
Tel: 01624 662910
Fax: 01624 679232
Email enquiries: enquiries@iomlawsociety.co.im.
Fees for making the application to the Probate Office and procuring the Grant of
Probate or Letters of Administration are likely to be in the region of £175 plus
VAT, although Advocates may reserve the right to charge additional fees. The Advocates
will also require payment of the fee charged by the Isle of Man Government for issuing
the Probate. The fee depends on the size of the Manx estate (see table below). Please
note these fees are subject to change.
The Isle of Man Registry levies a charge of £13.00 for settling and approving a
draft application.
There will also be a small governmental copy charge of £1.20 for a copy grant that
should be added to the appropriate court fee.
You can choose to change the ownership of your bond and assign it to a third party
at any time. We recommend you consult your financial adviser before assigning your
bond to make sure any tax implications are assessed.
If you would like to assign your bond please complete a
draft deed of assignment form. You'll find details on how to complete this
in the left hand margin of the form.
CMI Corporate Investor is set up as a series of identical policies, known as segments,
designed to give you maximum flexibility and the ability to minimise tax liability.
The maximum number of segments is 100 for each investment and the bond is automatically
set up on this basis subject to a minimum investment in each segment of £5,000.
The CMI Corporate Investor offers you the flexibility to choose when to realise
gains. In this way, you can maximise the taxation position of your company by deferring
paying corporation tax until a chargeable event occurs. It may be possible to defer
gains to a year when the company will pay a lower rate of tax. If your company has
trading losses you can also choose to cash in your funds at a time that may allow
investment profits to be offset against trading losses. This gives you a high degree
of control over the timing and amount of any future tax charge.
Please remember that you may be liable to pay tax when benefits are taken from the
bond.
A 'chargeable gain' and therefore a tax liability may arise:
- If the bond is cashed in totally or assigned for money, or money's worth (eg. the
bond is sold or traded to a third party).
- If partial encashments or regular withdrawals in any year exceed 5% of the amount
invested. This amount is cumulative so if a bond owner does not take any withdrawals
in policy years 1-4, they could take 25% in policy year 5 with no immediate tax
liability arising.
- If the cumulative total of partial encashments or regular withdrawals exceeds 100%
of the amount invested.
- On payment of the death benefit.
Profits (gains) from a CMI Corporate Investor may be liable to corporation tax.
CMI Insurance Company Limited does not pay tax on the income and gains from its
funds or other investments held within the CMI Corporate Investor. Some dividends
may be subject to withholding tax in their country of origin and some of the funds
in which CMI Corporate Investor invests may have been liable to tax already.
Please note that CMI Insurance Company Limited is unable to offer taxation advice.
The above information is for guidance for UK resident policyholders only and is
based on our current understanding of the law and HM Revenue & Customs' practice.
Please contact your financial adviser to discuss your tax position and any possible
tax implications before investing in CMI Corporate Investor. You may be charged
for any advice you receive.