RL360 PIMS Review

by Adam Fayed on March 1, 2023

While there are many positives associated with RL360 PIMS, there are superior options out there.

If you have an RL360 investment you aren’t happy with, we can also optimize the policy or suggest alternatives.

If you are thinking about getting an RL360 PIMS Plan, make sure you thoroughly grasp the local taxation situation and assess any benefits against the lack of flexibility, access, and costs, which are frequently not stated.

This RL360 PIMS analysis will discuss the benefits and drawbacks of the product as well as giving a detailed evaluation of the features and costs associated with it.

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (helllo@adamfayed.com) or WhatsApp (+44-7393-450-837).

One important consideration is how the plan is structured. RL360 PIMS supports a variety of commission structures, which is important to understand because one consultant may charge significantly less than another for what looks to be the same product but is not.

Depending on the adviser you employ, the RL360 PIMS can be more expensive than a pure platform plan.

Moreover, any purported tax advantages may be overshadowed by fees. For the purpose of offsetting high recurring costs, a commission rebate must be taken.

It does not provide a complete selection of discounted funds, direct shares, or trackers to invest in. Not in the USA, and not in any type of pension planning, do we encourage it.

The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

What Is RL360?

RL360 is an Isle of Man-based insurance company offering international investment, savings and protection products, including the Personal Investment Management Service (PIMS).

The company operates internationally, serving clients across Asia, Africa, the Middle East, South America and the UK.

RL360 is part of International Financial Group Limited (IFGL), which offers investment, savings and protection products to international clients.

What Is Personal Investment Management Service?

RL360 Personal Investment Management Service (PIMS) is a single-premium offshore portfolio bond that allows investors to hold eligible investments within an insurance-based structure.

PIMS offers two investment arrangements: guided architecture and open architecture. It is available in seven policy currencies.

The plan allows investors to allocate a lump sum to eligible investments, including certain existing holdings that RL360 agrees to accept.

PIMS also permits the appointment of a discretionary fund manager or investment adviser and may be held through certain trust arrangements.

The potential tax treatment of PIMS depends on the investor's country of residence and applicable tax rules. Holding investments through an offshore insurance structure does not automatically make returns tax-free or more tax-efficient.

The minimum initial investment is GBP 50,000 or the equivalent in another accepted currency. Eligible existing investments of sufficient value may also be used.

PIMS is generally intended for medium- to long-term investing, typically five to ten years or longer. Investors should consider the charging structure and potential consequences of early withdrawals before committing.

What Are The Key Features Of RL360 PIMS?

RL360 PIMS combines an insurance-based investment structure with a choice of policy currencies, investment arrangements and withdrawal facilities.

Its principal features include:

Seven policy currencies: GBP, EUR, USD, CHF, AUD, HKD and JPY.
Two policy bases: Life assurance and capital redemption.
Minimum initial investment: GBP 50,000 or the equivalent in an accepted currency.
Investment selection: Guided architecture through PIMS Focused or broader eligible investments through PIMS Flexible.
Policy cash accounts: Used to record investment transactions, charges, withdrawals and cash balances.
Online access: Policyholders can view their investments and account information online.
Withdrawals: Regular or one-off withdrawals may be available, subject to policy conditions and applicable charges.
Trading allowance: The product terms referenced in this review provide for ten complimentary transactions, with charges applying to certain additional transactions.

Although RL360 promotes investment choice and flexibility, the practical value of these features depends on the specific.

Who Is Eligible For RL360 PIMS?

As long as they are not subject to any laws that forbid them from making an investment, PIMS is open to individuals, businesses, and trustees. To apply for PIMS, individuals must be at least 18 years old.

RL360 does not accept applications for 85 years or older as the youngest life assured if the policy’s basis is life insurance.

What Are The Two Policy Bases That PIMS Can Be Issued On?

RL360 PIMS can be issued on either a life assurance or capital redemption basis. The distinction affects how the policy operates when an insured person dies or when the policy reaches maturity.

Life Assurance

One of two configurations is possible for a PIMS life assurance policy:

Single life – There is just one life assured, and when they die, the insurance expires.
Joint life last death – The insurance can cover up to six lives, and it expires when the last life assured dies.

When the plan is approved, the youngest life guaranteed cannot be older than 75 years of age.

What Happens With Life Assurance Upon Death?

The treatment hinges on whether the deceased person was a life assured, the policy owner or both.

1. When the life assured dies

The policy ends when the sole life assured dies or, under a joint life last death arrangement, when the final surviving life assured dies.

RL360 requires formal notification of death and supporting documentation before processing the applicable death benefit.

2. When the policy owner dies but the lives assured remain alive

The policy does not necessarily terminate.

If the policy has joint owners, ownership generally passes to the surviving owner.

Where the deceased was the sole policy owner, ownership is handled through the deceased's estate, subject to the policy terms and applicable succession arrangements.

The death benefit and ownership arrangements should be checked against the specific policy documentation, as the consequences differ depending on who has died.

Capital Redemption

The surrender value will be paid out by RL360 in addition to the guaranteed sum of GBP 100 or the equivalent in other currencies when a capital redemption basis RL360 PIMS plan reaches maturity after 99 years of operation.

What Happens With Capital Redemption Upon Death?

When a plan owner passes away, capital redemption plans do not immediately terminate. The personal representatives of your estate may choose who owns anything.

Ownership can be transferred through the deceased's estate, subject to the applicable legal requirements and RL360's documentation procedures.

The provider must receive the necessary evidence before registering a new policy owner.

What Happens With Capital Redemption Upon Maturity?

Once the duration of the plan, as shown by the Plan Schedule, is complete, RL360 will:

Halt all routine withdrawals and any other scheduled activities;
Sell every investment you have linked to it, and deposit the proceeds into the Plan Basic Currency Cash Account; and
Figure out the plan’s ultimate Maturity Value.

The amount payable will reflect the value of the underlying investments and any applicable charges or adjustments.

What Is The Minimum Contribution To RL360 PIMS?

The minimum initial premium is GBP 50,000, with additional premiums starting at GBP 5,000 or the equivalent in another accepted currency.

Premiums may be paid in currencies accepted by RL360, subject to its current requirements.

What Is The Difference Between PIMS Focused And PIMS Flexible?

PIMS Focused offers a predefined range of investment funds, while PIMS Flexible allows access to a broader selection of assets accepted by RL360.

PIMS Focused, formerly known as PIMS Select, provides funds covering different asset classes, investment strategies, currencies and risk categories.

PIMS Flexible operates on an open-architecture basis, allowing policyholders to hold eligible investments outside the predefined fund selection.

The broader investment access available through PIMS Flexible does not necessarily make it the better option. Investors should compare the permitted assets, associated charges and administrative requirements of both versions.

What Are The Investment Options For RL360 PIMS?

RL360 PIMS provides access to investment funds and, under the Flexible version, other eligible assets approved by the provider.

PIMS Focused has historically offered approximately 1,000 investment funds across different markets and asset classes.

The Focused version generally has a lower charging structure than PIMS Flexible, reflecting its more restricted investment range.

Investors can access fund information, including factsheets, performance data and published fund prices.

However, the number of available funds does not establish their suitability. Fund expenses, diversification, performance and the availability of lower-cost alternatives remain important considerations.

What Are The Risks Of Having An RL360 PIMS Plan?

The main risks of RL360 PIMS include investment losses, ongoing charges, potential surrender costs and restrictions on accessing funds.

You can receive less money back than what you invested since the value of the investments connected to your plan could increase or decrease.

Your plan will bear the loss if the provider of an investment connected to it goes bankrupt or is unable to pay its obligations for any other reason.

Your plan will incur a surrender cost if you cancel it during a time when there is no early surrender fee.

As PIMS is a medium- to long-term investment. Early surrender can result in additional charges, depending on the policy's charging structure.

Even where no specific early surrender penalty applies, investors may recover less than their original contribution if investment growth has not covered the costs incurred.

Regular withdrawals can also reduce the remaining investment value, particularly during periods of weak market performance.

Is Your RL360 PIMS Plan Still Working for You?

Your fund choices, ongoing charges and access to your money can affect your investment experience. Find out whether your current arrangements are worth reviewing.

Discuss Your Portfolio

What Charges And Fees To Expect From RL360 PIMS?

RL360 PIMS charges can include establishment fees, ongoing administration and servicing charges, transaction costs and investment adviser fees.

Investors may be able to pay certain establishment costs upfront or spread them over several years. These arrangements can affect both the amount initially invested and the cost of withdrawing money early.

Upfront Charge

You may choose to pay the entire establishment fee upfront when you choose the upfront charge option.

The amount you have available to invest if you choose this option will be less than the amount you have paid since RL360 will deduct the whole setup price from your first lump sum payment.

In the event that you select this option, RL360 will apply 100% of your money, less the upfront fee, to your plan. An early exit fee would not be imposed in this situation.

Establishment Charge

The establishment fee might be spread out over 5, 8, or 10 years. The setup charge was created to cover the costs associated with setting up your plan, including paying any commissions owed to your financial advisor.

Servicing Charge

Your plan will be charged a USD140 quarterly service fee as long as it is in effect. The maintenance fee, which rises annually in accordance with inflation to pay the plan’s related operating expenses, is levied.

Dealing and Custody Charge

The firm will assume responsibility if you choose not to designate a discretionary manager or investing platform.

They will provide you 10 deals for free, but after that, they will charge you USD28 for each additional deal. Moreover, they will charge you a custody fee of USD56 to cover the expense of keeping your possessions.

Percentage Administration Charge

This is calculated as a portion of your premium, or the current plan value, whichever is larger, throughout the course of your policy. You have a choice of 8 or 10 years, and there will be an early surrender cost.

Flat Administration Charge

In accordance with the Isle of Man Retail Price Index, information about which may be acquired by contacting RL360, the flat administration price is a set sum that is applied for the duration of your plan and rises annually. The fee is still being collected as long as the plan is in effect.

Stockbroker Fees

If a chosen asset necessitates it, a stockbroker may be required to purchase or sell the asset; any brokerage costs will be taken from the PIMS cash account.

On request, RL360 will provide the most recent brokerage costs. The brokerage fees charged by RL360 do not apply in cases where your plan has designated a discretionary manager or investment platform.

About their brokerage costs, you could inquire with your discretionary manager or investing platform.

Investment Adviser Fees

The PIMS cash account can be used to pay an investment adviser’s fees if you decide to do so.

It is possible to request an investment adviser charge of up to 1.50% of the plan value, payable every quarter. Depending on additional costs, the amount accessible can be less than this.

Understanding the Costs and Implications of the RL360 PIMS Plan for Offshore Investors

The RL360 PIMS Plan resembles several others on the offshore market. The RL360 PIMS Plan may end up being more expensive than a pure platform plan in the wrong hands, such as those of an inept or unreliable salesperson.

Whether directly compared to platforms or direct offerings from fund companies via the UK or the USA, the typical RL360 PIMS Plan funds have substantial recurring costs. Early access fees under the RL360 PIMS Plan may be quite expensive.

With an RL360 PIMS Plan, you may not get all of your money back, and there are no assurance that the portfolio will produce the returns you expect. However, if the charging structure is based on your adviser’s maximum commission earnings, any attempt to withdraw money from the plan before it has fully matured will incur penalties.

The commission received will really have a negative effect for years since the fees are imposed annually in arrears, which lowers fund performance.

Some people, however, want to purposefully lock-up their money; they need assistance in making disciplined selections and comprehend that they cannot get hold of their plan unless they pay the surrender fee first.

Potential investors must compare the advantages of locking up their assets against the inability to access such assets early without incurring surrender fees.

The adviser has the option under the RL360 PIMS Plan to bill a fee rather than a commission to the customer.

If this alternative were taken, the performance of the total investment may benefit significantly since the decreased charges that would arise would have less of an influence on the portfolio’s growth. It is not usually provided, so ask your adviser for further information.

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