CMI Portfolio withdrawals

Regular withdrawals

You can set up regular withdrawals from your CMI Portfolio. They can be taken monthly, quarterly, termly, half-yearly or annually so long as the minimum amount taken is £200 (US$300 or €300) for each withdrawal. Withdrawals should not exceed 10% of the original investment for each year.

For UK residents regular withdrawals are treated as withdrawals of capital. We recommend you discuss the tax implications of taking withdrawals with your financial adviser.

Please make sure there are sufficient funds in the cash account to cover withdrawals. You can set up a regular redemption facility to cover your regular withdrawals, subject to certain conditions and minimums. If you change your regular withdrawal please remember to change your regular redemption. Please note: any costs or bank charges will be deducted from the CMI Portfolio cash account.

In order to set up, cancel or amend a regular withdrawal please complete a regular withdrawal form.

Partial surrenders

If you would like to make a partial surrender from your bond, please complete a partial surrender form. There are no limits on the minimum or maximum amount you can take and you can make withdrawals at any time, so long as the value of your portfolio does not fall below the minimum requirement. Please note that during the early years a surrender charge may apply.

We recommend you consult your financial adviser before making a surrender to make sure you understand any personal taxation implications.

You can choose from the following options when making a partial surrender:

1. Encash one or more policy segments in full

If you wish to encash one or more whole policy segments, please return the original policy certificate(s) with your partial surrender form. If you choose this option you will not be able to request a specific amount of money, as the withdrawal amount will be the surrender value of the cancelled segments. Please note there may be a charge for cancelling whole policy segments.

If you would like to encash a specific amount you can either:

2. Encash as many policy segments in full up to the value of the requested withdrawal.

You may cancel whole policy segments and take the balance equally from any remaining segments to make up the requested sum. Please return the original policy certificate(s) with your partial surrender form. Please note there may be a charge when cancelling whole policy segments.

Or you can:

3. Take the withdrawal direct from the policy

Withdraw a specific amount directly from the bond without cancelling any policy segment(s). There is currently no charge for withdrawals under this option.

Notes

Please note that payments can only be made to the bond owner or the trustee, if the policy is held in trust.

If there are not enough funds in the cash account in the same currency as the requested withdrawal, you will need to sell some of the funds in the portfolio to fund the withdrawal. If this applies please complete the relevant section on the partial surrender form. You can fax this direct to our Dealing Department on +44 (0) 1624 662153. Deals can be placed upon receipt of the fax to avoid any further delays, but payment cannot be made until we have received the original instruction and any deals have settled into the cash account. If whole policy segments are surrendered, a proportionate early surrender charge may apply. Please take this into account when specifying an amount to redeem.

If whole policy segments are surrendered please return the original policy certificates with your request. If these are not returned the withdrawal will be taken directly from the bond.

If you have misplaced the original policy certificates, please contact us to request a Lost Policy Indemnity form, which we need to receive before we can surrender of the requested policies.

These notes are for UK resident policyholders’ guidance only and are based on our understanding of the law and HM Revenue & Customs’ practice. The law and HM Revenue & Custom’s practice are subject to change. We recommend you always consult your financial adviser before making an encashment to make sure you understand any personal taxation implications. If you are not UK resident, please obtain tax advice in your country of residence.

Full surrenders

You can make a full surrender of your CMI Portfolio at any time. During the early years an early surrender charge may apply. We recommend you consult your financial adviser before making a surrender to make sure you understand any personal tax implications.

If you would like to surrender your bond, please complete a full surrender form and send it to us with the original policy certificates.

You can fax the full surrender form to us on + 44 (0) 1624 625900 so that the redemptions of the underlying investments can be made without delay. As this will be the final transaction of your CMI Portfolio, we need to be in receipt of the physical monies and contract notes for each of the redemptions before the final surrender proceeds can be calculated. As we are dependent on the third party fund managers or stockbrokers, we are unable to provide an exact timeframe for the completion of the full surrender. Typically proceeds are paid in full within 3-4 weeks of receipt of the client request, however this cannot be guaranteed. If the money is required urgently we can stagger the full surrender payment by releasing proceeds in stages as they are received. If you wish to receive proceeds as soon as possible, please tell us when you send your full surrender form as our standard business practice is to pay the total amount in one payment.

For full surrenders the final amount paid out is the total proceeds for the redemption of all investments, less any outstanding charges (including any applicable early surrender charge), plus any interest accrued since the last quarterly valuation date.

Stock transfers

You can transfer the ownership of the investments held within your CMI Portfolio. This means that the assets are re-registered with the fund manager or the custodian, from the name of CMI Insurance Company Limited into your name. You can do this either as a partial surrender using either option 2 or 3 of the partial surrender form, or by full surrender of the bond. We recommend you discuss the tax implications of transferring stock either by partial or full surrender with your financial adviser.

If you are transferring a unit trust or an OEIC, please contact the relevant fund manager in order to set up an account with them. Please provide the account name and number when you fill in the form, so that we can re-register the funds.

For investment trusts (and equities for non-UK residents) the requirements depend on how the investment is held. The majority are held with CREST through our nominated stockbroker, Capital International Limited . If you would like to re-register an investment held with CREST please send us your CREST account details and your point of contact at CREST so we are able to agree trade and settlement dates. Holdings can also be taken out of CREST and held in certificated form, if required. Please consult your financial adviser if you are unsure of any aspects of stock transfers.

We currently charge a set fee of £25 for each line of stock that is transferred out of a CMI Portfolio. Any third party charges levied by the stockbroker are deducted from the CMI Portfolio cash account.