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Aurora International Pension Plans Pensions to accept accrued UK benefits For Non-UK Residents or those leaving the UK Part of the Pension Range from Concept Group Aurora International Pension Plans The Aurora International Pension Plans have been developed by Concept Group Limited to provide a competitive and flexible solution for individuals who have accrued pension benefits in the UK and are leaving or have already left the UK. Readily portable, Aurora provides asset protection and tax effective planning opportunities in the secure knowledge that assets are ring fenced and held by AA or higher rated custodians or custodians of your choice. Enjoy your choice of investment strategy and Investment Manager or the simplified but cost effective “Lite” Plans. Avoid the requirement to purchase an insurance annuity, and gain the advantage of passing remaining funds to loved ones on death. With the ability to remove your pension assets from the UK inheritance tax regime and the ability to pay pension benefits gross without deduction of Guernsey tax, significant advantages can arise from a transfer to an Aurora Pension Plan. Concept Group Limited specialises in the innovation and development of pension schemes and is a Guernsey licensed fiduciary company regulated by the Guernsey Financial Services Commission. Guernsey is an independent, well regulated and internationally accepted jurisdiction with a framework of legislation and practices that ensures its position in the premier division of offshore financial service centres. English speaking, with a centuries-old tradition of political stability and good governance, Guernsey is in the same time zone as London. Concept Group Limited are not qualified to give legal or tax advice but they can offer introductions to qualified legal and tax advisors/counsels, conversant with International Pensions. Aurora International Pension Plans Outline of Benefits Who May Apply: Aurora is available to all individuals, whatever their nationality, leaving of having left the UK. Tax Benefits: Aurora is not subject to tax in Guernsey* and has no reporting requirements under the European Savings Tax Directive. An Individual who transfers their accrued benefits from their UK Pension Scheme to Aurora will remove their pension fund from the UK tax system permanently and will avoid the risk of these funds being impacted by future changes to UK pension legislation. Contributions There are no limits to the amount or the type of assets that may be placed in the Plan. Employers may also contribute on behalf of the Individual. However, tax advice would need to be obtained on the effects of making such contributions. Fund Size: There are no limits to the value of assets held in the Plan. There are also no formal minimums although fees dictate that at funds sizes less than £100,000 for Aurora Lite and £200,000 for other Plans very careful consideration of the costs and benefits would be required. Investment: The investment choice is wider than under a UK Pension Plan. Using the Libertaï Plans, a Member may appoint themselves as the Investment Manager or may select their own Investment Manager (on a Discretionary or Advisory basis) and custodian. For those without a preference Aurora Lite offers pre-approved investment choices. Non-standard assets may also be held. For more details see Investment Choices. Retirement Age: Aurora has flexibility when taking benefits from the Plan. Drawing your pension: The tax treatment of your pension when you draw it will depend upon the tax regime of the country in which you are resident, your age and the duration elapsed since leaving the UK. Please note that there is no requirement to purchase an insurance annuity and any funds remaining on the death of the individual or last annuitant may be paid to those nominated in accordance with your wishes. Dependent on the individual’s personal circumstances at the time tax planning opportunities may arise. Transfers In: As long as the UK Authorised Pension Scheme has the relevant powers to transfer out to a QROPS then an individual may request a transfer of their accrued benefits to their Plan in Aurora. Transfers Out: Aurora has powers to transfer to other Schemes which generally would also be QROPS. Financial Stability: Guernsey is a premier International finance centre with the highest reputation and standards. Its legislative and fiscal independence continues to deliver political and economic stability on which the Islands mature innovative finance sector can rely. Regulated: The Guernsey characteristics of all the Plans have been approved by the States of Guernsey Income Tax. The Administrators (Concept Group Limited) are regulated in Guernsey by the Guernsey Financial Services Commission in accordance with the Regulation of Fiduciary, Administration Business and Company Directors, etc (Bailiwick of Guernsey) Law, 2000. Registration No: 41012. Aurora Schemes are all Qualifying Recognised Overseas Pension Schemes (“QROPS”) for UK purposes, for Aurora with effect from 24th August 2007 - Reference number: 501350, for Aurora Lite with effect from 15th November 2007 – Reference No: 50155 and for Aurora Libertaï and Libertaï Lite with effect from 18th June 2008 – Reference No: 501940. * Unless Guernsey resident taxpayer in receipt of annuity. This summary is of general nature only and should not be relied upon, nor to be a substitute for professional advice, or used in formulating any business decisions without first seeking such advice. No liability is accepted for any consequences arising from any transactions embarked upon in connection with this summary. The benefits in this summary may vary according to residency and domicile. No warranty regarding the appropriateness of investing in the Aurora International Pension Plans is being given and none of the above comments should be construed as investment or tax advice. You should always take independent investment and tax advice, as your personal circumstances may mean the comments above do not apply. Aurora International Pension Plans Investment choices available by Plan Subject to approval, the Member may pursue bespoke investment strategies with their chosen Investment Manager on a Discretionary or Advisory basis. Aurora The appointment is subject to Trustee’s approval and evidence that the Investment Manager is regulated, professionally qualified and holds full Professional Indemnity Insurance. The Trustee continues to be involved in the investment process. Investment Choices pre-approved by the Trustee:- Aurora Please see appendix attached for current investment options available. Lite As new offerings are approved by the Trustee and become available the appendix will be updated and available for download from www.aurora.gg The Member appoints themselves or an Investment Manager and Custodian on a Discretionary or Advisory basis. Aurora Ideal when an underlying bond is used as custodian or when the Investment Manager wishes to direct investment changes to the custodian Libertaï without repeated reference to the Trustee for approval. This appointment also applies to non-standard assets held through an offshore Company The Member appoints themselves or an Investment Manager and Custodian on a Discretionary or Advisory basis. Libertaï However, you are restricted to one:- Lite Bond or Discretionary Manager or Custody and Execution Account Non-standard assets are not available through this Plan. Non- Standard Assets Non-standard assets may be held as investments in Aurora Plans, but it may be necessary to manage such investments through other structures, relevant tax advice may be required. By way of example:- Private Equity – In a separate, wholly owned offshore Company, Real Estate – In a separate, wholly owned offshore Company. Concept Group Limited does not provide Investment Advice but has appointed an independent Regulated Discretionary Manager to review the pre‐approved investment choices available in Aurora Lite. Aurora International Pension Plans Plan selection matrix OBJECTIVE PREPARED TO ACCEPT PLAN Minimum Cost Aurora Pre-approved investment choices Aurora Lite Restricted to one Bond or Discretionary Minimum Cost with Investment Freedom Manager or Custody and Execution Libertaï Lite Account Member wishes to direct Investment Libertaï decisions themselves Trustee has no responsibility, power or duty or or to review investment decisions Libertaï Lite Unregulated Investment Manager Involvement of trustee in approving Complex and bespoke investment strategy investment manager and investment Aurora involving trustee responsibility decisions Complex and/or bespoke investment Trustee have no responsibility, power or Libertaï strategies minimising trustee involvement duty to review investment decisions Aurora International Pension Plans Payment of Benefits When Notification to HMRC is required Aurora Plans have been accepted as Qualifying Recognised Overseas Pension Schemes by H M Revenue & Customs (HMRC) and therefore are required to notify HMRC of any payment of benefits, including those transfers which are treated under certain provisions as deemed to be making a payment in respect of a relevant member. There are a number of ways in which a payment could be deemed to be made and includes a transfer from Aurora to another plan, dependent on the time elapsed since the individual left the UK. When Notification to HMRC is not required HMRC do not need to be notified if the relevant member is a person to whom the member payment charges set out in the Finance Act 2004 do not apply. The relevant member payment charges do not apply unless the member: • Is resident in the UK when the payment is made (or treated as made), or • Although not resident in the UK at that time, has been resident in the UK earlier in the tax year in which the payment is made (or treated as made) or in any of the five tax years immediately preceding that tax year. Advantages If a relevant member is not resident in the UK when the payment or deemed payment is made and the relevant member has also not been resident for the five years preceding the tax year the payment or deemed payment has been made (paragraph 2 Schedule 34 Finance Act 2004) then no member payment or a deemed payment charge will arise or be reportable to HMRC. Aurora International Pension Plans Charges Aurora Aurora Lite Libertaï Libertaï Lite Formation Fees 0.80% £1,000 0.80% £2,000 Minimum £2,000 - £2,000 - Maximum £10,000 - £10,000 - Transfers from existing providers included Two Two Two Two Annual Trustee Fees 0.65% £1,000 0.65% £2,000 Minimum £2,000 - £2,000 - Maximum £10,000 - £10,000 - Payment of benefits included – per annum Unlimited One Unlimited One Additional Fees Additional Transfer from existing provider £250 £250 £250 £250 Payment of benefits other than annually n/a £500 n/a £500 Transfer to another QROPS provider Transfer Fee 1% 1% 1% 1% Minimum £2,000 £2,000 £2,000 £2,000 Notes:- • Fees detailed on this sheet are exclusive of commission payments shown on the application form. • Formation fees are payable within seven days of receipt of tax relieved transferred funds. • The first year’s Annual Management Fee will be invoiced and taken in advance from establishment of the Plan to the 30th June the following year and annually thereafter. • All fee notes will be settled from funds held, or otherwise must be settled within thirty days of the invoice date. • This fee schedule does not cover special classes of assets. These will be charged on a case by case basis. It may be possible to negotiate such fees in advance • Where the administration of an entity of a specific task is of an unusual nature or is unduly onerous a fee will be charged including all travel expenses. • All bank charges incurred on payments of benefits and investment transactions will be deducted from the payment. • Any cost incurred from third parties maybe charged to the individual Plan, i.e. legal opinions, certificate of good standings, etc. • All retrocession’s received, in negotiating enhanced rates from financial institutions for the provision of banking, Insurance and Investment services and products will be retained by Concept Group Limited. • Fees paid to external advisors are exclusive of these charges. • Concept Group Limited reserves the right to vary the above scales from time to time and undertake to provide the Member with one month’s notice. Aurora International Pension Plan Contact Details For an application form or further information on the Aurora International Pension Plan please contact:- Assured Alliance Limited Asia Distribution Office 102 LT Square, 500 Chengdu Nth Rd, Shanghai, PRC Tel: +8621 6327 0174 Fax: +8621 6327 7621 email@example.com www.assured-alliance.com Concept Group Limited Filton House Clifton Roger Berry St Peter Port Jackie Eley Managing Director Guernsey Fiduciary Director GY1 3HH The information contained herein has been prepared in good faith by Concept Group Limited but has not been independently verified. No representation is made or warranty given as the completeness, accuracy or timeliness of the information. You should always seek independent advice as to the effectiveness of the Plan in light of your own personal circumstances.
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