FPI Premier Advance Review
Friends Provident International (FPI) Premier Advance Review:-
Friends Provident International – FPI – has over 35 years of international experience and is part of the Aviva group which has a heritage that dates back over 300 years.
FPI provide savings, investment and protection products to customers in Asia and the UAE. With offices in Dubai, Hong Kong, Singapore and the Isle of Man, FPI have more than 500 staff worldwide .
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FPI Premier Advance Review
The Friends Provident International (FPI) Premier Advance is an expensive option compared with a pure platform custodian plan and supposed tax benefits can be outweighed by charges and lost through penalties. Those penalties in the first 12 months are extremely high effectively wiping out any money saved in that time.
When considering a Friends Provident International (FPI) Premier Advance then ensure you fully understand the local taxation position and weigh any benefits against its lack of flexibility, access and charges which are often not explained. It does not offer a full range of discounted funds, direct equities or trackers to invest in.
- Widely available and sold
- Offers some tax protection in certain jurisdictions
- If kept running to original planned term then may promote savings concept (but statistics from many other companies show that less than 20% of regular savings plans are maintained to term)
- No flexibility of full withdrawal or full access in the early years without penalty
- Many countries do not recognise any tax concessions
- Commission wipes out all initial investments made making this an extremely expensive option
- Does not provide full access to lowest cost funds and passive trackers
|Policy Currency: The FPI Premier Advance may be denominated in US dollar, GB pound, Hong Kong dollar, Japanese yen, Swedish krona (SEK) or Euro. Benefits will be paid in the plan currency.|
|Why choose the FPI Premier Advance: Leading Fund Houses offer a wide choice of investment funds. You choose from over 100* risk-rated funds covering all the major world markets and investment classes. The funds section contains performance statistics which are updated monthly, fund prices which are updated daily and Fund Fact Sheets on each fund.|
|FPI Premier Advance promotion: What does FPI write about their own FPI Premier Advance? the FPI Premier Advance is an international investment product that offers potential for capital growth over the medium to long term (five years +).It gives you access to the world’s investment markets through unit trusts, investment trusts and open-ended investment companies. The personalised assets version could also include international equities, fixed interest securities, structured notes and deposits. There is also an option to use FPI’s own funds however, these are “Mirror funds” which are a copy of the underlying fund and therefore may give different returns than the underlying fund it is mirrored from.|
|Eligibility: FPI Premier Advance is a regular premium, whole of life, life assurance contract issued by Friends Provident International. It is available to most international investors outside of main regulated territories such as the UK, the U.S.A. and Australia.|
|Minimums: Minimum £300 per month. You can pay additional amounts via a number of different methods including credit card. Payment by credit card into the FPI Premier Advance will result in a charge of between 1% and 1.95% of each payment additional cost.|
An initial charge of 1.5% is taken each quarter from your initial unit holding over the term of the plan.
Annual Policy Charge Structure:
Full details of charges can be found FPI Charging Structures.
|Are FPI Premier Advance charges explicit: By explicit, it means that it is clear to see not only the charges for taking out the plan but also the cost of funds annually, any upfront fund costs, penalties on access, etc. Yes, in the main the FPI Premier Advance charges are clearly shown and any professional should be able to interpret them. We have had feedback from clients though that they find it extremely difficult to interpret charges such as how any early access penalties would be calculated.|
|Surrender of the FPI Premier Advance: Your plan will not have a cash-in value until you have paid at least 12 months’ worth of payments. We understand from clients who have taken out these plans that there are also heavy encashment penalties after 12 months depending on the original term of the policy and when you want to access it. These penalties pay for the commissions earned up front by your salesman.|
Expat Money Expert Assessment of the FPI Premier Advance
We think there are several other better options available, but you may disagree
We are going to repeat the section on surrender, otherwise known as accessing your money when you want or need it! Your FPI Premier Advance plan will not have a cash-in value until you have paid at least 12 months’ worth of payments. We understand from clients who have taken out these plans that there are also heavy encashment penalties after 12 months depending on the original term of the policy and when you want to access it. These penalties pay for the commissions earned up front by your salesman.
Commission (that charge which is paid by a bond provider to a salesman and is often not fully disclosed) plays a big part in the charges that a client will suffer.
The standard FPI Premier Advance funds have high ongoing fees when directly compared to platform or direct offerings from fund houses via the UK or the USA. The FPI Premier Advance can have high charges on early access and an attempt to take proceeds early in the plans life, will result in access penalties or higher charges on the remaining invested funds, or both.
NOTE: Not all distributing agents have regulation or financial qualifications and may not be aware of the other options available.
WARNING: Costs and information is correct as of July 2016. Please refer to a brochure from the company for current up to date information and any changes on costs or information. You should not buy based purely on information contained within this article and EME do not accept liability for purchases. If you have any doubts then please speak with your financial adviser or a representative of the company for further advice.
If the provider improves or amends its terms then EME would like to hear from them to amend the review page accordingly, and providers are encouraged to comment on errors or omissions to ensure that readers have the latest and correct information.