PruAdviser Online Services will be unavailable from 20:00 on Saturday 28 November until 12:30 on Sunday 29 November for website maintenance. We apologise for any inconvenience caused.
PruAdviser Online Services will be unavailable from 19:00 on Friday 4 December until 23:00 on Sunday 6 December for website maintenance. We apologise for any inconvenience caused.

PRUDENTIAL INTERNATIONAL ASSURANCE PLC

Frequently Asked Questions (FAQs) about Insurance Distribution Directive (IDD) disclosure of costs and charges

The Insurance Distribution Directive (IDD) was transposed via the Insurance Distribution Regulations, 2018 (IDR) in Ireland.

Broadly, the IDD regulates the way in which insurance products are designed and sold by (re)insurance undertakings, intermediaries and ancillary intermediaries. There are also requirements in relation to the ongoing disclosure of costs and related charges to customers and potential customers. This FAQ relates to this part of IDD only, and references below relate to the transposition into Irish Law. 

What are the IDR rules for presale costs and charges disclosure?

Under IDR, product providers or intermediaries who distribute Insurance Based Investment Products (IBIPs) are required to provide details of product/fund costs and related charges and distribution costs and related charges to customers before a contract is signed (presale). 

Presale disclosure of product and fund costs and related charges for an IBIP are adequately met by the provision of a Key Information Document (KID)/Investment Options Document (IOD)/Key Investor Information document (KIID).

It’s worth remembering though that the KID/IOD/KIID does not include details of ‘distribution costs’ e.g. advice charges, an initial platform charge etc. so, you will still need to provide this information separately.

When considering your clients’ long-term information needs, you’ll also need to consider what other information they’ll need, based on their individual circumstances and their investment portfolio. This may mean adding additional information about the market conditions, performance, and so on.

What are the IDR rules for periodic disclosure of costs and charges?

The rules require firms distributing IBIPs, to provide adequate reports on the services provided to and transactions undertaken on behalf of the customer. This includes products in force before the rules came into effect.

  • The IDR requirement for regular disclosure on costs and charges to customers are summarised below. Reports must be provided at least annually.
  • Client reporting requirements apply to IBIPs only, including those already in force.
  • The periodic disclosure should include the total of costs that have been incurred/charged to the client in the relevant reporting period – i.e. actual costs incurred in the previous year. It must include the cost of advice, where relevant, and how the customer may pay for it, and include any third party payments.
  • Costs and related charges shall be provided in an aggregated form that allows the customer to understand the overall cost as well as the cumulative effect on the return of the investment and, where the customer so requests, an itemised breakdown of the costs and charges shall be provided.
  • The information should be provided in a comprehensible form, so that the customers are reasonably able to understand the nature and risks concerning the IBIP offered and, consequently, to take investment decisions on an informed basis.

Where can I get information in order to meet requirements for the periodic disclosures under IDR?

The tables below detail, for the different product types, where information can be sourced to assist in meeting the requirements for periodic disclosures. 

Products open to new business

Product Type Product & Adviser Charges Fund Charges & Costs Other costs

Prudential International Investment Portfolio

(Life & CRO)

Quarterly Statements - Provided after each calendar quarter

Bond specific Contract Schedule

Bond specific Endorsement, if applicable

Key Information Document (KID)

Fast Facts

Statement of Charges (SOC)

External fund managers Key Investor Information Document (KIID)s

Investment Options Document (IOD) 

Contact the Discretionary Financial Manager for detail of their costs
Prudential Onshore Portfolio Bond 

Annual Statements – Provided at Bond Anniversary

Bond specific Contract Schedule

Bond specific Endorsement, if applicable

Key Information Document (KID)

Fast Facts

Statement of Charges (SOC)

External fund managers Key Investor Information Document (KIID)s

Investment Options Document (IOD) 

Contact the platform provider for detail of their costs

Prudential International Investment Bond

 (Life & CRO)

International Prudence Bond

Annual Statements - Provided at Bond Anniversary Bond specific Contract Schedule

Bond specific Endorsement, if applicable

Key Information Document (KID)

Fast Facts

Statement of Charges (SOC)

Bond specific Unit Transaction History

(may be requested)

Fund Guide

Investment Options Document (IOD)

 

Further updates will be provided to this page with sources for the required information. Please remember to check the page periodically for updates. 

The respective asset managers will send cost & charges data to our business partner  at the beginning of the first quarter (2019) in respect for a full 12 month period. In the first year this will be from September 2017 to September 2018.

Below you will find links to the various documents for the products noted above

Prudential International Investment Portfolio Life/CRO

Fast Facts

SOCs
IODs

KID Life version, 1 of each of the charging structures.

Initial
Ongoing
Establishment

KID CRO version, 1 of each of the charging structures.

Initial
Ongoing
Establishment

Prudential International Investment Bond

Fast Facts
SOCs Life
SOCs CRO
KID Life
KID CRO
Fund Guide
IODs

Prudential Onshore Portfolio Bond

Fast Facts
SOCs
KID

Prudential Onshore Portfolio Bond -OWC

Fast Facts
SOCs
KID

International Prudence Bond -  Jersey/Guernsey/Isle of Man

Fast Facts
SOCs Life
SOCs CRO
Fund Guide

Heritage Products (Closed to new business)

Product Type Product & Adviser Charges Fund Charges & Costs Other Costs
Portfolio Bonds

Quarterly Statements - Provided after each calendar quarter

Bond specific Contract Schedule

External fund managers Key Investor Information Document (KIID)s

Bond Contract Conditions

Contact the Discretionary Financial Manager for detail of their costs
International Prudence Bond

Annual Statements - Provided at Bond Anniversary

Bond specific Contract Schedule

Bond specific Unit Transaction History (may be requested)

Fund Guide  

Bond Contract Conditions

Principle & Practices of Financial Management (PPFM)

Section – Determining With-Profits Policy Values

Sub Section: Guarantees & Smoothing

Where performance fees are due to the Fund manager or transaction costs are incurred by the fund, these will impact the performance of the fund.

Building Society Bond

Personal Investment Bond

Annual Statements, if applicable - Provided at Bond Anniversary

Bond specific Contract Schedule

Bond specific Unit Transaction History (may be requested)

Fund Guide

Policy Conditions

Where performance fees are due to the Fund manager or transaction costs are incurred by the fund, these will impact the performance of the fund.
Regular and Single premium Protection Products 

Plan specific contract schedule - Provided at Plan Anniversary

Plan specific Unit Transaction History (may be requested)

Fund Guide

Plan Conditions (Regular Premium)

Bond Contract Conditions (Single Premium)

Where performance fees are due to the Fund manager or transaction costs are incurred by the fund, these will impact the performance of the fund.

Below you will find links to the various documents for the products noted above

International Prudence Bond;

Fund Guide
Principles & Practices of Financial Management (PPFM)


Building Society Bond, Personal Investment Bond, Regular & Single premium Protection Products;

Fund Guide

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.