NAVISION 6th of August

1
Presentation of Private Capital Plan
Finland by Anders Bergmann
2
Private Capital Plan - FinlandAgenda

• Product provider
• Objectives
• The product
• Tax advantages
• Leaving Finland
• Contract details
• Summary

3
Product provider Nordea Life Pensions S.A

• SAFE Assurance S.A. established in 1991
• The ultimate owner is Nordea AB, Stockholm
• Part of Asset Management Life Business area
  

Bancassurance products

• Private Capital Plan Spain
• Private Capital Plan France
• Private Capital Plan Finland

4
Objectives

• To provide our clients with an intelligent
  financial
• planning solution

• To provide our clients with as many advantages
  and
• as few limitations within a tax efficient
  capital
• assurance as possible

• To provide our clients with a clear financial
  set-up
• in Finland

5
Private Capital Plan - FinlandProduct

• Single Premium unit-linked bancassurance product

Investment structures

• Minimum initial payment for investment solely
  into
• Nordea 1, SICAV investment funds EUR 100.000

• Minimum initial payment for investment into an
• individual dedicated fund EUR 250.000

6
Investments if individual dedicated fund

• Cash and deposits
• Government Bonds (OECD)
• Bonds traded on a regulated market (OECD)
• Shares traded on a regulated market (OECD)
• Investment funds

7
Assurance elements

• Minimum assurance element 5
• Maturity determined
• Insured persons - above 18 years of age
  (cannot be changed)
• Beneficiaries - free choice (can be changed)

8
Ownership

• The client is the owner of the assurance contract

• Nordea Life Pensions S.A. owns the underlying
  investments

• The value of the contract is the value of the
  underlying investments

9
Potential tax advantages in Finland

• Capital gains tax

• Wealth tax

• Inheritance tax

• Leaving Finland

10
Capital gains tax within the assurance

• No taxation of unrealised capital gains

• No taxation when switching investments within the
  portfolio

11
Capital gains tax in Finland

• No taxation when withdrawing from the initial
  payment

• Capital gains withdrawn from Private Capital Plan
  - Finland
• are taxed at a flat rate - currently 29

Wealth tax in Finland

• No wealth tax is currently levied on the value of
  the Private Capital Plan - Finland

Wealth tax in Finland in year 2003 is 0.9 of
wealth above approx. EUR 185,000
12
Inheritance tax in Finland

• The spouse has a tax exempt amount of 50 of the
  amount paid

• An amount of EUR 35,000 per beneficiary is exempt
  from inheritance tax

Inheritance tax in Finland is levied at
progressive rates from 10 to 48
13
Leaving Finland

• Relocating from Finland will not create any tax
  liability in Finland regarding the Private
  Capital Plan - Finland

14
Contract details

• Minimum initial payment for investment into an
  individual dedicated fund EUR 250,000

• Base currency and payments can take place in all
  major internationally recognised currencies

• Quarterly statements from Nordea Life Pensions
  S.A.

• Charges determined on an individual basis

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Summary of PCP - Finland

• Large degree of flexibility

• Possible to invest through an individual
  dedicated fund

• Potential tax reduction

• Clearly defined tax situation