HSBC launches Maximum Investment Plan

HSBC has announced it is to launch an open architecture Maximum Investment Plan for sale through IFAs.  The HSBC Maximum Investment Plan (HSBC MIP) is a ten year regular savings plan with life cover, providing investment returns which are not subject to higher rate income tax.  It is designed to help IFAs with long term, tax efficient savings planning for their high net worth clients.

The HSBC MIP, which will launch in January 2011, is fully open architecture, with access to a wide range of funds and transparent charging.  It is available exclusively on the Ascentric platform, and off-platform as the MIP-Select plan.

Key features of the HSBC MIP:

Tax Efficiency - Investment proceeds have no further liability to tax, providing the qualifying conditions are met. Tax is taken within the MIP at rates which vary by the assets held, but which cannot exceed 20% and can be significantly lower.

Open architecture investment - Access to over 2,000 funds.

Flexible IFA remuneration options - Initial, fund-based or a combination of both available.

Policies - A high number of individual policies are available for greater flexibility.

HSBC launched the MIP in response to recent tax changes, which introduced a 50% income tax rate for high earners and restricted pension tax relief.

Antony Champion, Head of Intermediary Sales, HSBC Life, comments: "Many IFAs are seeking new ways to shelter highly paid clients' long term savings from higher rate taxation and find solutions for retirement income planning.  Our MIP provides an excellent alternative for IFAs whose clients have already exhausted traditional tax avenues.

"In addition, the Government's recent announcement about tuition fees will result in many people seeking tax efficient investments for long term education planning. The combination of life cover, protection from higher rate taxes and wide investment choice makes the HSBC MIP an ideal choice for IFAs."

Richard Goodall, Sales & Marketing Director, Ascentric, adds: "With wrap platforms facilitating a range of tax wrappers, the MIP provides a complimentary tax efficient solution alongside our SIPP, ISA and bond wrappers. We are pleased to be working in partnership with such a strong brand and it will undoubtedly have strong appeal with advisers using our platform."