Riley remains withdrawn from the market.  This affects new business and increments to existing business.

The cost of the protection provided by Riley is a critical component in the construction of the bond. The recent extreme and unprecedented levels of stockmarket volatility in the latter half of 2008 resulted in a significant increase in the cost of protection. Although the terms did reflect the fair market price for protection, the suitability of an investment in Riley, relative to a deposit investment, had become, and still is, difficult to justify.

The cost of protection is monitored on a regular basis.  While market volatility has reduced since 2008, the protection cost has remained high because it is not only volatility but also gilt yields that affect the cost of protection.  The Government's policy of quantative easing has pushed gilt yields down and this has meant the cost of protection has remained high.

We continue to monitor the situation carefully and will seek to re-open the bond to new business once the cost of protection has returned to more normal levels.  It is impossible to say when that will be but we will contact you again in due course.

About Riley

Riley is a life insurance bond for a minimum investment of £10,000. Your clients may not get back the full amount of their investment.