When the UK left the EU back in 2020, International Bond providers – were able to continue operations exactly as they had been before Brexit. This was due to the Temporary Permissions Regime. This arrangement came to an end on 30 December 2023.
What this means for you:
This change won’t have any impact on the benefits and tax advantages you are currently able to enjoy through your bond.
However, as International bond providers are residents in the EU and rely on their Jersey Category A licences, so the following changes apply from 31 December 2023:
- You will no longer be able to access the Financial Services Compensation Scheme (FSCS)
In the unlikely event that your International bond provider becomes insolvent, you will no longer be able to call on protections that would have previously been available under the FSCS and, right now, there is no equivalent compensation scheme in Ireland.
- You should refer any complaints to the Financial Services and Pensions Ombudsman of Ireland, rather than the UK Financial Ombudsman Service.
If you were to have a complaint against your International bond provider, which couldn’t be resolved within the timeframes set out in their policy conditions, you should refer the matter to the Financial Services and Pensions Ombudsman of Ireland rather than the UK Financial Ombudsman Service.
Although there is currently no indication of the Dublin-based International bond providers experiencing financial difficulties, problems can often appear out of the blue, and clients find out too late to take action.
Apex CB can review your Offshore bond and find out if moving to an alternative regime, such as the Isle of Man, which still retains full UK investor protection could benefit you.
This involves checking whether exit charges and tax could apply on surrender and so requires individual advice. Give us a call to discuss how we can help.