One of the benefits of our Collective Investment Account (CIA) is that it can be held as an asset within another investment, such as an offshore bond, a SIPP or a SASS. The investment holding the CIA can be with Quilter, or another provider.
This guide will cover the steps and requirements to apply for a CIA when it is going to be held as an asset within another product.
What you’ll need to get started
- Policy details of the external investment and details of the external provider
- Legal Entity Identifier (LEI) code
- Details of any applicable trustees or relevant contacts
- Investment amount
- Assets being invested into
Steps to set up the CIA when it’s going to be held within an offshore bond (including Quilter International offshore bonds)
Please be aware the following process is suitable for Quilter offshore business. Please speak to a Platform Specialist or Wealth Management Consultant for any other offshore business.
① Add a new individual client to represent the Scheme Provider – this client record will be added during the new business process as an Interested party and this client record can be re-used for any future cases from the same provider
For Quilter International use the details below
- Client Type: Individual
- Title: Mr
- First name: Quilter
- Surname: International
- DOB: 1/1/1900
This will then be added as the interested party in the application.
② Now add another client. This is the product in which the CIA will be held, in other words the offshore bond.
- Select the client type as Corporate and tick Offshore bond
- The corporate name should be entered as:
- The offshore provider
- The product type
- The policy number
- The client’s surname
- Example: ‘Quilter International – Offshore Bond 123abc – Smith’
- Enter the company registration number (for Quilter International this is 24916C)
- Select the relevant other third-party provider i.e. Old Mutual International
③ From this second client record, select to start a quick quote or a new business application.
- Select CIA under account type
- Tick No to withdrawals
- Select the adviser and confirm the advice details
④ In the application journey, enter the remaining client details. Please note that the bond policy within which the CIA is being held is the client and the bond provider’s details should be used. For Quilter International the details are:
- Address: PO Box 159, King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU
- Email: email@example.com
- Phone: input 0
⑤ Confirm and enter the remaining details on this page including the LEI code.
⑥ In the Add Director details add the named individual (Quilter International) as created in step 1.
⑦ Leave the Interested Party blank as this will be confirmed by Quilter, as the application asks you to confirm the name of the offshore provider as under step 2 above.
⑧ When selecting the Decision Maker, select the option for Customer which is the offshore bond.
⑨ Proceed to the contributions page and select a Single Client Payment with Bank Transfer as the payment choice.
⑩ Enter ‘0’ into the Fees field. Old Mutual Wealth is unable to facilitate any adviser fees for CIA assets of a Quilter International bond. If you would like to apply fees, please refer to Quilter International or the external bond provider.
⑪ Proceed to the asset selection page and select the relevant investment options and ensure the percentage allocation adds up to 100%. Confirm the distribution options.
⑫ Review the details that you have entered into the application to ensure they’re correct.
⑬ Click Next to generate the documents, review and tick the declarations then press submit to complete the application.
⑭ The Confirmation Schedule should be provided to the offshore bond provider in addition to any other supporting documents that they might require such as a Collective Investment Account appointment form which allows you to switch assets online.
⑮ Please note that Old Mutual Wealth cannot accept any requests signed by the underlying client. All requests regarding this type of CIA account must go through Quilter International.
Steps to set up the CIA when it’s going to be held within a SIPP/SSAS
This next section describes using the CIA as an asset with an external SIPP or SSAS.
The client of Old Mutual is taken to be the Pension Scheme.
The authorised signatures are taken to be the pension scheme trustees (or those with the necessary permissions)
The interested party is taken to be the person (the underlying client of the pension scheme) - they may also hold other plans with OMW.
Once a SIPP/SSAS has been opened with an external provider, our Collective Investment Account (CIA) is a possibility for investment. Investments into the CIA will be made in the name of the scheme provider. Accounts will usually, but not always, refer to their underlying customer (the ‘member’).
It is important to contact the provider to confirm that the CIA is considered an eligible investment for the scheme before making the application.
Generally, a scheme might use a corporate trustee (a company set up for the sole purpose of acting as a trustee), possibly in combination with individually named trustees. All trustees listed on the CIA are required to sign together on all instructions.
① If no authorised signatory has been set up as a client on the platform already, this will need to be completed before proceeding. This is done via the Add Client option on the platform. If there is more than one signatory these will need to be added after the new business application is completed.
- Please note that to add a Corporate Trustee there is a temporary work around in place which entails creating an ‘individual client’ which we will amend in the background on receipt of a payment.
- This is done by creating an individual client i.e. Mr A J Bell – this client record can be re-used for any future cases from the same provider and being selected as the authorised signatory in the application journey.
② The interested party field in the application is used for recording the details of the underlying client(s) of the pension scheme. If the client has not been set up on the platform already, this will need to be added to the platform as a new client before proceeding.
③ Add a new client record for the specific SIPP Scheme.
④ Select the client type as Pension Scheme and tick the box for a SIPP or SSAS as appropriate.
- Enter the pension scheme name. The naming convention should be confirmed with the provider, but it is usually ‘Scheme Name re: Surname & Plan number’. For example: Scheme Electronics Ltd re: Smith – 12345.
- Enter the PSTR or PSO reference.
- Select the relevant scheme provider as the third-party provider (i.e. James Hay SIPP) to complete the client record.
⑤ From this scheme record, select to start a quick quote or a new business application.
- Select CIA under account type
- Select the adviser and confirm the advice details
⑥ Then enter the remaining details for the Pension Scheme, including the applicable Pension Scheme address, tax reporting country and Legal Entity Identifier code (LEI) code which must be entered. The correspondence address should be that of the Scheme Provider.
⑦ For the authorised signatory, search and select the client record that you previously created in Step 1. This client can be used for any future CIAs in SSAS/SIPP applications you create when using this same third-party provider. The authorised signatory has the legal responsibility and obligation; depending on the scheme type this could be a corporate scheme trustee, individual trustees or SSAS directors, and will be noted by our back- office team.
⑧ When selecting the Decision Maker, select the option for Customer, which is the Pension Scheme. Alternatively, Select Other and Individual then enter the details of the appropriate person.
⑨ Enter the details for the appropriate payments and contributions being made to the plan. Client contributions would represent payments from the SIPP provider.
⑩ Proceed to the asset selection page and select the relevant investment options and ensure the percentage allocation adds up to 100%. Confirm the distribution options.
⑪ Carefully review the summary details of the application, access the necessary documents and, if suitable, tick the declarations and submit the application.
⑫ Information and documents we might need to support your online application are:
- Tax Declaration and COVI for Trust and Corporate Investors
- List of authorised signatories
- Fee Authorisation form signed by trustees (please retain for your records)