HANSARD INTERNATIONAL

VANTAGE PLATINUM II

Summary

Hansard International has been providing financial products and services to international clients since 1987 from their base on the Isle of Man. 

Hansard International forms part of Hansard Global plc, which has been listed on the London Stock Exchange since 2006. 

 

Hansard International Limited is regulated and supervised by both the Isle of Man Financial Services Authority (IoM FSA) and the Labuan FSA (LFSA).

> Lack of flexibility promotes concept of saving if all contributions are made throughout the term.

> No flexibility of full withdrawal or full access in the early years without penalty. Surrender charges mean you may get back less than your premiums paid.

> Does not provide access to a range of assets and lowest cost funds.

> Opaque and complex charging structure.

> Commonly mis-sold.

Key Features

  • Vantage Platinum II is a unit-linked, regular contribution insurance contract with a fixed term, selected at outset, of between 5 and 35 whole years.

  • The aim of the contract is to benefit from the potential medium to long-term increase of the value of your savings by investing the contributions you make over the contract term into the Hansard International series 2 unit funds (Hansard unit funds) – a range of unit-linked investments that are created, priced and administered by Hansard International.

  • Vantage Platinum II is intended for high-net-worth Malaysia-resident clients who wish to save regularly (for at least five years). 

  • The contract is designed for all regular contributions to be paid at the selected level for the whole term, so you should only commit to a regular contribution level that can be maintained for the full contract term.

  • This is a life assurance contract which must have at least one life assured and may have a second. These cannot be changed once your contract has started.

  • The contract is available in GBP, USD or EUR, and this will determine the currency of contributions and of valuations. Where contributions are made in a different currency to the contract currency, the amount will be converted using the applicable exchange rate.

Charges

The charges of Vantage Platinum II can be summarised below, as stated by Hansard International:

1. Annual Management Charge: The annual management charge is based on the fund value and is charged for the full term of the contract. The charge is applied daily, to all unit types as shown below, and is reflected in the quoted Hansard unit fund price:

Initial Units

Accumulator Units

Bonus Units

1.5% per year

1.5% per year

1.5% per year

Units purchased by the welcome bonus, or by any part of a regular contribution due during the initial period.

Units purchased by any part of a regular contribution due after the initial period, or by additional lump-sum contributions.

Units allocated by the loyalty bonus.

2. Initial Unit Charge: There is an additional charge applied to all initial units, based on the fund value, and is charged for the full term of the contract. The charge is applied daily and is reflected in the quoted Hansard unit fund price:

Initial Units

5.5% per year

Units purchased by the welcome bonus, or by any part of a regular contribution due during the initial period.

3. Service Charge: GBP 60 per year (GBP 5 per month) and GBP 120 per year (GBP 10 per month) for paid-up regular contribution contracts. The service charge is taken on a monthly basis from your accumulator units. If there are not enough accumulator units to deduct the charge then it will be carried forward to the next month.

4. Early Surrender Charge: The charge applied is equivalent to the initial unit annual management charge and the initial unit charge remaining for the number of days between the surrender date and the maturity date. The charges can be summarised below:

Time remaining (years)

25

20

15

10

5

Early Surrender Charge

82.63%

75.34%

65.01%

50.34%

29.53%

5. Fund Administration Costs: A fund administration charge of no greater than 0.25% per year, plus any associated dealing costs, and these will be reviewed each year.

6. Switching Charge: If you request a manually-processed switch, this will be charged at GBP 45 per switch, deducted from your accumulator units. Switching is performed on a bid-price to bid-price basis, which means that there is no extra cost applied during the sale and purchase of Hansard unit funds. You cannot switch units between separate contracts.

These charges can change from time to time and we would recommend checking Hansard International's website for the latest information.

Withdrawals

  • For regular contribution contracts, withdrawals are only permitted after you have made all contributions due in the first two contract years, or the second anniversary if this is later.

  • For additional lump sum contribution contracts, withdrawals may be taken at any time. Withdrawals may only be taken from accumulator units, not from initial units or bonus units, and are subject to you maintaining the minimum accumulator unit value.

  • The minimum withdrawal amount is GBP 150 (or currency equivalent). Hansard does not apply a charge for taking a withdrawal from your contract, but bank transfer costs may apply. If you have selected an additional guaranteed sum assured then this will be reduced by your withdrawal amount.

NOTE:

  • The value of the plan would depend on the investment performance and you may not get back the money you have invested.

Final Verdict

The Vantage Platinum II can have high charges on early access. You may not get back all of your savings with such as plan and there are no guarantees that the portfolio will give you the returns you are expecting, but any attempt to take proceeds early in the plans life, or make it paid up, will result in access penalties or higher charges on the remaining invested funds, or both.

Substantially more cost effective, flexible and less complex options are now available for senior international professionals.

The Hansard Vantage Platinum II is an expensive option. The standard Hansard funds have high ongoing fees when directly compared to a platform.

 

The The Platinum Vantage II pays high up-front commissions to its distributors and it has a successful network of distributing agents throughout the world excluding the main regulated territories. The amount the distributor earns is linked to the length of the policy; the longer the policy term the longer the surrender penalty incurred on early access, the more money the distributor or adviser earns. Many offshore advisers tend to only sell long term (15, 20, 25 year) plans in an attempt to maximise the amount they get paid and may use various sales tactics to make you believe you need a longer term plan.

Himalaya

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