Consolidation of the Scottish Provident International Life Assurance Internal Fund Ranges
On 5 November 2026, we are making changes to a sub-set of the Scottish Provident International Life Assurance ("SPILA") Internal Funds that will impact our International Investor's Choice product.
In accordance with policy terms and conditions, we are making changes to the fund range available to policyholders who have an International Investor's Choice policy. We are intending to close the SPILA internal sub-funds they currently invest in and transfer their unit holdings into the equivalent, corresponding fund variant in our main SPILA Internal Fund Range, in order to consolidate the ranges.
Background to the consolidation
We operate different SPILA fund ranges for different product ranges. The variants of the SPILA Internal Funds for International Investor's Choice, which have a suffix of IIC, IIC2, PIC or PIC2 at the end of the fund name (the “IIC SPILA Internal Fund Range”), are sub-funds of the main SPILA Internal Fund Range. These were launched exclusively for our International Investor's Choice product to cater for the way product charges were deducted through the daily bid price of Initial Units created during the Initial Investment Period, within the first few years of policy commencement. Upon policy maturity, Initial units are converted to Accumulation Units.
The daily bid prices used to value Accumulation Units for funds held in International Investor's Choice policies are the same for each corresponding fund in the main SPILA Internal Fund Range, which is available to other products. Therefore, as all International Investor's Choice policyholders have completed their contribution term, reaching maturity status on their policy and now only hold Accumulation Units in their policy, we are consolidating the fund ranges.
When will the consolidation happen?
On 5 November 2026 (the “Effective Switch Date”), Accumulation Units in any IIC SPILA Internal Fund Range funds will be transferred into Accumulation Units of the corresponding fund in the main SPILA Internal Fund Range fund. This transaction will be processed as a switch on impacted policies for each fund held and will be available to view after the Effective Switch Date via the policy transaction screen on our Online Service Centre.
A list of the closing IIC SPILA Internal Fund Range funds and the receiving corresponding funds in the main SPILA Internal Fund Range can be found in the Appendix in our sample policyholder letter opposite. The letter has been sent to impacted policyholders primarily by eshot if we hold a valid email address for them, otherwise by post where we hold a valid correspondence address. Servicing advisers are also being notified.
Will the switches have a negative impact on policy values?
No, the switches will not have a negative impact on policy values. Because the IIC funds have the same Accumulation Units bid price as the corresponding funds in the main SPILA Internal Fund Range, unit holdings switched out will have the same value as unit holdings switched into the corresponding receiving funds.
Charges for each corresponding fund within the two fund ranges are the same. No additional charges, including switching charges, will occur as a result of the switches to the main SPILA Internal Fund Range.
Policyholders do not need to take any action as these changes will take place automatically in their policy.
Fund choices and additional contributions options with effect from 24 September 2026
We have closed the IIC, IIC2, PIC and PIC2 fund variants to switches in with immediate effect. Should policyholders wish to instruct a switch between funds on their policy, they will now be switching into and between the fund variants from the main SPILA Internal Fund Range. Note that the Series 2 funds will not be available for selection as these are exclusive to specific products.
Please also note that from 24 September 2026, we will no longer be able to accept any single premium additional investment on International Investor's Choice policies, or the restarting of regular contributions. As policies are whole of life, policyholders can continue to leave their policy invested in its matured status if they do not wish to surrender their policy at this stage.
Impacted policyholders are being notified of the above changes primarily by eshot if we hold a valid email address for them, otherwise by post where we hold a valid correspondence address. Servicing advisers are also being informed. Please view the sample policyholder letter opposite for full details.