Aspiration is a flexible single premium product which allows a customer and adviser to agree on an initial charge of between 0.5% and 6% relative to the size of contributions.
It has a minimum initial contribution of $31,250 (€26,585, £20,578), and holders can make additional contributions to the plan before age 61 at a minimum contribution of $1250.
Withdrawals can also be taken from the plan on a non-contractual basis.
Where initial charges on a policy’s initial contribution are above 0.5%, Standard Life will also offer an “extra allocation” – additional notional units of investment choices – at a rate of 3% of the initial contribution.
The product offers six currency options: HKD, USD, EUR, GBP, JPY, and AUD. It has an administration charge of 1.2% per annum of the policy account value, including the value of any extra allocation, and an optional advisory fee of 0%-2% per annum.
The product has been approved under the new Hong Kong Guidance Note 15 (GN15), which was enforced at the beginning of the month with the aim of improving customer treatment throughout Hong Kong.
It set out principles that will shape the design of products in the jurisdiction and any associated remuneration going forward.
Rather than receiving their entire commission up front, an adviser will now receive a portion of their commission at the time of a policy’s purchase, with the remainded being obtained at regular intervals throughout the rest of the policy’s duration, provided certain customer standards are met.
Standard Life said it plans to develop and launch new propositions throughout the remainder of the year.
