Investment choice, control and flexibility The NRFM Self-Invested ARF offers the holder the opportunity to manage their retirement funds without the investment restrictions usually found with traditional life assurance products.The self-invested ARF is designed for individuals that are comfortable with making their own investment decisions and have a clear understanding of investment risk.Davy Select is designed for investors who are comfortable making their own investment decisions, without financial advice; this is known as “execution-only”. You should ensure that you fully understand any investment and the associated risks before making a decision to invest.Alternatively, Davy can arrange for you to open a different type of account, where we can advise you in relation to investment decisions, or where we can manage investments on your behalf.ARF investments where holders are over age 60 for the full year of assessment, are currently subject to imputed distribution requirements of 5% or 6% annually depending on the size of the retirement fund. Capital held in an AMRF is not accessible until the holder reaches age 75, however, any investment growth may be withdrawn.Competitive and transparent charges With the imputed distribution requirement on ARFs, keeping management costs down can be as important for safeguarding capital preservation as choosing the right investment strategy.The following require a manual diary to adjust the ARF at FRA: If the NH requests proration of the work deduction, diary the NH’s claim for an adjustment to the ARF in the year following FRA. The diary due date for the above cases is the month of FRA attainment unless there are work deductions for the year of FRA attainment.For cases involving work deductions for the year of FRA attainment, the diary due date is May of the year after attainment of FRA.
For information regarding proration of work deductions, see RS 02501.120 and RS 02501.125.
An Approved Retirement Fund (ARF) is a post retirement contract.
On retirement from a pension contract and following withdrawal of any tax efficient lump sum, the balance pension funds can be invested in an ARF.
All accounts are individually designated in the clients name and the client is a co signatory on their investments and individual bank accounts.
Existing pension assets can be transferred in specie to a NRFM Self-Invested ARF.