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 have resulted in a significant increase in the cost of protection. Although the terms do reflect the fair market price for protection, nevertheless in the extreme situation of recent weeks the suitability of an investment in Riley, relative to a deposit investment, becomes difficult to justify.

The cost of protection is monitored on a regular basis and over recent weeks the cost has remained at consistently high levels and increased yet further in the last 2 weeks. We have therefore taken the decision to withdraw Riley for new business as from 30 October 2008.

We will 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.