Reserve is Friends Provident International’s portfolio bond. It holds a wide range of assets inside an offshore wrapper, with a choice of two charging structures, and is aimed at larger investments from GBP 50,000. This page explains how Reserve works, what the two charging structures cost, what early cash-in means and what UK expats should check, particularly if they might return to the UK.
It is general information for UK expats, not personal advice. The figures come from FPI’s Reserve key features document (RES09a, 08/21) and its Reserve charging structures document, which on the copy we read carried an as-at date of 1 October 2026. Rates change, so check everything against your own illustration.
This guide sits under our section on offshore investment bonds for expats. For a fund-based alternative, see our RL360 Oracle review.
FPI Reserve at a glance
| Feature | Summary |
|---|---|
| Provider | Friends Provident International Limited, Isle of Man |
| Type | International lump sum investment policy, whole of life |
| Status | Listed as current in FPI’s literature. |
| Minimum investment | GBP 50,000 or currency equivalent, rising to GBP 100,000 to 150,000 on some variants |
| Currencies | GBP, USD, EUR, HKD, CHF, AUD, SEK and JPY |
| Holding period | Recommended at least five years |
| Charging structures | Establishment charge structure or annual policy charge structure |
| Death benefit | 101% of the cash-in value, or the cash-in value plus GBP 10,000 if lower |
| Compensation | Isle of Man scheme, up to 90% of the liability |
What is FPI Reserve?
Reserve is a lump sum policy, issued on a whole-of-life basis, that lets you hold a portfolio of assets inside an Isle of Man life company. You can hold it alone or with up to ten lives, and it pays out on the last survivor’s death. The assets are held in a General Transaction Account, which is where charges are taken and cash is held. A financial adviser, an external investment manager or a discretionary fund manager can be appointed to run the portfolio.
Reserve is a portfolio bond, so it can hold individual shares and other assets. If you only need access to funds, a fund-based bond such as RL360 Oracle may be cheaper and simpler.
Who it may suit, and who it may not
It may suit you if:
- You have at least GBP 50,000 to GBP 100,000 to invest and want a broad range of assets in one wrapper.
- You want a discretionary manager or adviser to run a portfolio inside the bond.
- You intend to hold for five years or more, to see out the charging period.
It may not suit you if:
- You may need the money back within the establishment or initial charge period.
- You could become UK resident, where a personal portfolio bond can face an annual tax charge.
- You want a simple fund-only product.
What Reserve can hold
Permitted assets include equities and fixed-interest securities, UK authorised or overseas unit trusts and OEICs, investment trusts, REITs, hedge funds, funds of hedge funds, exchange traded funds, structured notes and deposits, and cash. Not normally accepted are shares in FPI group companies, commodities, real property, futures and options, precious metals, UK National Savings products, US mutual funds (unless discretionary-managed) and mirror funds.
The two charging structures
You choose one structure at the start, and it applies to additional premiums. The rates below are from FPI’s charging structures document, and your adviser’s illustration will confirm the exact charges for your policy.
1. Establishment charge structure
An establishment charge is taken as a percentage of the amount invested, either upfront or spread over five, eight or ten years. There is no initial charge.
| Premium from | Day one | 5 years (a year) | 8 years (a year) | 10 years (a year) |
|---|---|---|---|---|
| GBP 50,000 | 8.5% | 1.90% | 1.25% | 1.00% |
| GBP 1,000,000 | 8.0% | 1.86% | 1.21% | 1.00% |
A fixed administration charge of GBP 146 or USD 194.60 is taken quarterly for the life of the policy. If you cash in during an establishment charge period, the outstanding establishment charges apply, except on the day-one option.
2. Annual policy charge structure
An annual policy charge is taken quarterly as a percentage of the higher of the policy value or the total premium paid. It falls as the investment grows.
| Total premium from | Annual policy charge |
|---|---|
| GBP 100,000 | 0.35% |
| GBP 500,000 | 0.25% |
| GBP 1,000,000 | 0.20% |
| GBP 1,500,000 | 0.15% |
This structure also has an initial charge: 7% upfront, or 1.506% a year over five years, on premiums from GBP 100,000. The administration charge is GBP 146 or USD 194.60 a quarter on initial premiums from GBP 100,000, and nil from GBP 500,000. Outstanding initial charges apply if you cash in during the initial charge period.
Other charges, both structures
| Charge | Rate |
|---|---|
| Dealing charge | GBP 44 or USD 58.70 per sale or purchase, taken quarterly. Not charged when a discretionary manager is appointed |
| Asset exchange charge | GBP 100 or USD 135.10 per asset used to make a payment |
| Ad hoc charge | GBP 213 or USD 284 per policy alteration |
| Adviser and manager fees | Agreed with you, as a fixed quarterly fee or a percentage, paid by regular withdrawals |
| Fund and stockbroker costs | Underlying fund charges, custody and stockbroker fees |
Fixed sterling and dollar charges rise each year with the Isle of Man retail price index. If the General Transaction Account is overdrawn, interest is charged.
Which structure is better?
It depends on how long you hold and how much you invest. The establishment structure front-loads the cost, so it punishes early exit but leaves a modest ongoing charge. The annual policy charge structure has lower fixed costs on very large investments but carries an ongoing percentage that does not fall when markets fall. Ask your adviser to show both over 5, 10 and 20 years on your actual amount.
Withdrawals, cash-in and death benefit
Full cash-in. Allowed at any time, with the early cash-in charges described above.
Partial withdrawals. The remaining cash-in value must not fall below GBP 10,000 or, if greater, 10% of the relevant investment still within its initial charging period. Regular withdrawals start at GBP 250 a payment, monthly, quarterly, half-yearly or yearly.
Death benefit. On the last survivor’s death the policy pays 101% of the cash-in value, or the cash-in value plus GBP 10,000 if that is lower. It is not guaranteed and depends on the value at death.
Tax for UK expats
The policy is issued in the Isle of Man, which does not make it tax-free for you. FPI’s own tax notes focus on UK residents. If you become UK resident, a personal portfolio bond can attract an annual tax charge on its value, with no top-slicing relief on that charge. Tax elsewhere depends on your country of residence. See our guides to offshore investment bonds, inheritance tax for UK expats and wills and trusts.
Protection
Reserve is covered by the Isle of Man Policyholders Protection Scheme, which pays up to 90% of the liability owed to investors if the provider cannot meet its obligations. The UK Financial Services Compensation Scheme does not apply.
FPI Reserve: frequently asked questions
1. Is FPI Reserve still available?
FPI’s literature lists it as current. Confirm with FPI or your adviser.
2. What is the minimum investment?
GBP 50,000, or more on some variants.
3. What does Reserve cost?
It depends on the structure. On the establishment structure from GBP 50,000, the rate is 8.5% on day one, or 1.90% a year over five years, 1.25% over eight or 1.00% over ten, plus a fixed administration charge.
4. What happens if I cash in early?
The outstanding establishment or initial charges apply, except on the upfront options.
5. Can I take money out?
Yes, as long as the remaining value stays above the minimums. Regular withdrawals start at GBP 250.
6. Can I use a discretionary manager?
Yes. Dealing charges are not made when one is appointed.
7. What is the UK tax risk?
If you become UK resident, a personal portfolio bond can face an annual tax charge. Take advice before returning.
8. Can you review my Reserve policy?
Yes. Send us your latest statement and policy documents and we will set out the costs and your options.
Get your Reserve policy reviewed
If you hold Reserve or are being offered a portfolio bond, we can show you the real cost, the tax position and the alternatives. Request a callback and we will arrange a time that suits your time zone.