CMI Flexible Funding Scheme
The CMI Flexible Funding Scheme works by allowing single and/or regular premium
payments over the short term, typically 3-5 years, which are then converted into
regular payments over a period of 10 years that are invested into an offshore savings
plan. At the end of the 10 years you choose to use the proceeds of the plan in one
of the following ways:
- as a cash lump sum;
- as a regular income by surrendering individual policies under the plan; or
- you can leave the proceeds invested where they continue to grow until you need it.
If you return to the UK within the 10-year payment period, the offshore savings
plan proportion of the scheme may be replaced by an equivalent plan that qualifies
for special treatment under UK tax law.
Although the plan is no longer open to new investors, we continue to manage this
product for our existing customers. Your CMI Flexible Funding Scheme policy number
will range from N500000A to N599999Z.
If youre looking to take out a new investment, you may wish to read about our CMI Global Investor or CMI Corporate Investor.
Benefits associated with your bond
You can control the tax point by choosing when to take the benefits, which can be
useful if you become a lower rate tax payer or if you have moved to a different
country with a lower tax rate.
If you invest in a bond and you are a UK tax payer, you can currently withdraw up to
5% of your original investment each year for up to 20 years, without triggering a
chargeable event. This can be a tax efficient way of taking an 'income' from your
bond. This benefit is cumulative, so you can carry forward your 5% allowance if you
don't use it each year.
Useful information to help you manage your bond
If you wish to switch you can choose from any of the available funds. For more information
on each fund, please read the fund factsheets and fund guide.
You can switch between the available funds up to 12 times per calendar year free
of charge. Any additional switches are currently charged at 1% of the value of the
units being switched, subject to a minimum charge of 10 and a maximum charge of
250.
The following funds are available under your bond. Please read the fund factsheets
and the fund guide for more information.
Click on any fund to view the fund factsheet.
The following funds are available under your bond. Please read the fund factsheets
and the fund guide for more information.
Click on any fund to view the fund factsheet.
Before choosing an alternative fund or funds, you need to determine your attitude
to risk. Using the table below find the statement in the left hand column which
best describes your attitude to risk; this gives you an idea as to the risk rating
in the right hand column that you can use to select the fund(s) that suit your investment
needs. Please remember that the risk category of each fund is the opinion of Clerical
Medical and may not necessarily match your own perceptions of risk.
Please note: If you switch out of an Offshore With-Profits Fund or a Guaranteed
Growth Fund, a Market Value Adjuster may apply.
The following funds are available under your bond. Please read the fund factsheets
and the fund guide for more information.
Click on any fund to view the fund factsheet.
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You can take regular withdrawals subject to a minimum of 200 ($300 or 300) and
a maximum of 10% of the premium per policy year.
We recommend you discuss the tax implications of taking regular withdrawals from
your bond with your financial adviser.
Please complete and return to us.