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HSBC Life Onshore Investment Bond now available to UK companies

HSBC Life (UK) Limited is offering UK companies the opportunity to invest in its HSBC Life Onshore Investment Bond which was previously only accessible to individuals and trusts. This development is in response to an increasing number of enquiries from advisers as UK companies look to improve investment returns on their surplus cash, as well as aid their tax planning.

The HSBC Life Onshore Investment Bond offers an open architecture approach providing advisers with the opportunity to choose from over 3,800 investment funds. This gives advisers flexibility and choice so they can deliver the right investment solutions for their corporate clients.

An onshore investment bond can provide an alternative to businesses that might hold significant levels of cash in bank accounts, as well as offer the potential to generate better returns.

HSBC Life (UK) Limited does not replicate funds offered by external fund managers. It enables investment in the funds directly, ensuring consistency of approach across the investment solutions that advisers recommend to their clients.

Mark Lambert, Head of Onshore Bond Distribution, HSBC Life (UK) Limited, said: “Companies can face similar challenges to individuals in relation to the excess capital that they have available. The potential to improve investment returns and to optimise tax planning through investment in an Onshore Bond is something we expect will generate significant interest amongst advisers’ corporate clients. Advisers have made it clear to us that there is an increasing demand from clients for onshore investment bonds, and we have significant growth ambitions in the onshore investment bond market. Our priority is to offer advisers and their clients – including companies – investment choice, transparency and value supported by the highest levels of service”.

Notes to Editors:

  • The HSBC Life Onshore Investment Bond is not designed for limited companies which are not UK tax residents.
  • The suitability of the Bond for a limited company will depend on the accounting basis adopted by the company.
  • The value of investments can fall as well as rise and your client may not get back what they invested – for some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.
  • HSBC Life (UK) Limited cannot be held responsible for the investment performance of its Bond.
  • The value of any tax benefits described depends on your client’s individual circumstances.
  • Tax rules and rates may change in the future and HSBC Life (UK) Limited cannot be held responsible for any future changes in legislation.
  • The minimum investment by a limited company into the HSBC Life Onshore Investment Bond is £15,000
  • A minimum amount of cash should remain in the Bond’s cash account at all times, to cover fees and charges.
  • Investments should be seen as medium to long-term (at least five years), as cashing in early could mean your client gets back less than was originally invested.
  • The Bond will be divided into a number of separate, identical policies.
  • The company chooses the number of policies to hold, subject to a maximum of 1,200 policies with at least £1,000 in each.
  • Withdrawals are subject to a minimum £100 per payment, and maximum 10% yearly of the initial investment.
  • With a partial surrender, the remaining Bond must have an investment value of at least £2,000.
  • Fund managers may impose minimum trade sizes limiting the number of funds to select.

Media enquiries to:

HSBC Life (UK) Limited

Ellis Ford                                                                     ellis.ford@hsbc.com

Citigate Dewe Rogerson
Seb Zickus                                +44 (0)20 7025 6494     seb.zickus@citigatedewerogerson.com

About HSBC Life (UK) Limited

HSBC Life (UK) Limited is part of the HSBC Group, one of the world’s largest banking and financial services organisations. HSBC Group serve more than 40 million customers worldwide through a network that covers 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. We aim to be present where the growth is, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

HSBC Life (UK) Limited was founded in the UK in 1988 and offers insurance services to meet protection and investment management needs. Our services and solutions are available through HSBC banking channels and selected third parties, including financial advisers and aggregators. For more information on HSBC Life (UK) Limited range of services go to  https://www.life.hsbc.co.uk/and for more information on HSBC please go to https://www.hsbc.com

About HSBC Life

HSBC Life is the insurance business of the HSBC Group. We manufacture life and health insurance products in Hong Kong, mainland China, Singapore, India*, France, UK, Malta, Mexico, and Argentina. HSBC Life offers a range of insurance products to meet the protection, education, retirement, wealth growth and legacy planning needs of our customers. Our services and products are available through HSBC banking channels, selected third parties, including financial advisers and aggregators. *Through our joint venture, Canara HSBC OBC Life Insurance.

HSBC Holdings plc HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,001bn at 31 March 2024, HSBC is one of the world’s largest banking and financial services organisations