RETRACTION - Important fund closure notification affecting Hong Kong resident and/or product specific policyholders - April 2022
10 May 2022
MAY 2022 - PLEASE NOTE THAT THE MIRROR FUND CLOSURES NOTIFIED IN APRIL 2022 (AS PER THE DETAILS AT THE BOTTOM OF THIS NOTIFICATION) ARE NO LONGER PROCEEDING
Retraction of letter issued in April 2022 entitled; Closure of various FPIL Funds (together “the Closing Funds”) to Hong Kong residents and Hong Kong policies (together “Hong Kong investors”)
In April 2022 (as detailed below), we provided a notification advising that we were closing various Friends Provident International (“FPIL”) mirror funds held by Hong Kong specific policies/contracts or Hong Kong resident policyholders (together “Hong Kong investors”) that were not part of our Hong Kong specific fund range. This range only contains funds that are authorised by the Hong Kong Securities and Futures Commission (“SFC”). Policyholders identified as Hong Kong investors, and therefore impacted by the closures, were informed we would be switching their holdings into alternative funds within the Hong Kong specific fund range.
After we issued this notification, additional analysis regarding the re-classification of policies/contracts and policyholders as Hong Kong investors was carried out and a strategic decision was made to cancel the programme of mirror fund switches previously advised in the April 2022 notification, as it is believed that the closure of the Closing Funds to Hong Kong investors is no longer required at this stage.
These policyholders can continue to hold the funds identified as the Closing Funds, and it will not be necessary to switch their holdings into alternative funds within our Hong Kong specific fund range, at this current time. The fund switch actions detailed in our April 2022 notification will therefore not occur, and holdings will remain as currently invested.
We apologise for any inconvenience caused, but hope that policyholders will be pleased that they can continue to retain their selected funds.
A copy of the retraction letter issued in May 2022 can be found opposite for information.
THE ACTION BELOW IS NO LONGER PROCEEDING
AFFECTS HONG KONG RESIDENT POLICYHOLDERS OR THOSE WITH A HONG KONG SPECIFIC PRODUCT INVESTING IN OUR UNIT-LINKED MIRROR FUNDS
We have taken the decision to restrict the fund choices available to policyholders who are either Hong Kong resident or have a Hong Kong specific product (together “Hong Kong investors”), to those funds that are part of our Hong Kong-specific fund range. This fund range contains funds which are authorised by the Hong Kong Securities & Futures Commission (“SFC”) only.
Hong Kong investors with units in the non-SFC authorised funds as detailed in Appendix 1 (the “Closing Funds”) of the policyholder letter, will be switched automatically to an alternative fund in the Hong Kong fund range during July 2022. We have written to all affected Hong Kong investors and/or their appointed advisers, to provide them with advance notice of these changes that are taking place.
The Closing Funds are now closed to Hong Kong investors. No new single or regular contributions will be permitted into the Closing Funds, whether from new or existing Hong Kong investors. Until the Closure Dates, only continuing regular contributions will be permitted into the Closing Funds. These ongoing contributions into the Closing Funds may not be increased from their current level.
When an FPIL fund is closed we select another fund from our internal fund range (the “Default Fund”) to act as an alternative investment for the resulting proceeds being switched out of the Closing Fund and for any future contributions that may be directed into the Closing Fund.
These changes will happen automatically within the policy or contract and policyholders do not need to take any action if they agree with the choice of Default Fund that we have selected.
Policyholders can choose to switch their current holdings in the Closing Fund(s), and/or redirect premiums or contributions, into a different fund in the Hong Kong fund range should they wish. This can be done at any time, however, in order to override the transfer or redirection to the Default Fund that we have selected, alternative instructions must be provided by 3pm UK time two days before the appointed Closure Date.
Further details on the investment choices available within our Hong Kong fund range can be found via the link opposite.
- No FPIL charges will arise from these transactions.
- Where applicable, any future regular premium or contributions into the Closing Funds will also be redirected into the Default Funds from the appointed Closure Date.
Please refer to to Appendix 1 in the Sample policyholder letter opposite for details of the Closing Funds, the Default Fund selected, the Closure Date, and the Deadline for alternative instructions.
Whilst appropriate due diligence has been carried out on the Default Funds we do not accept any liability for the future performance of these, or any other FPIL funds.
We recommend that policyholders seek the advice of their usual adviser before making any investment decisions.