RL360 Oracle is an offshore investment bond for people with a lump sum to invest, issued by RL360 in the Isle of Man and sold only through financial advisers. It gives access to a wide range of funds with no dealing or custody charges, and it is aimed at expats who want a simple, fund-based wrapper rather than a full portfolio bond holding shares and other assets. This page explains how Oracle works, what it charges, what the bonuses are worth and what leaving early costs.
It is general information for UK expats, not personal advice. The figures come from RL360’s Oracle Life Assurance Product Guide (ORL01b, 09/23) and its Oracle web pages. Charges depend on the size of your investment and are shown in your personal illustration, so check every number against your own documents.
This guide sits under our section on offshore investment bonds for expats. For RL360’s regular premium plans, see our RL360 Regular Savings Plan review.
RL360 Oracle at a glance
| Feature | Summary |
|---|---|
| Provider | RL360 Insurance Company Limited, Isle of Man |
| Type | Lump sum investment bond, on a life assurance or capital redemption basis |
| Status | Listed as a current product on RL360’s website. |
| Minimum investment | GBP 20,000, EUR 24,000 or USD 28,000, with other currencies listed in the guide |
| Currencies | GBP, EUR, USD, CHF, AUD, HKD and JPY |
| Funds | More than 300 funds, with unlimited switching |
| Establishment charge | 0.00% to 7.50% of each payment, spread over five years |
| Administration charge | 0.60% to 1.20% a year |
| Dealing and custody | No charge from RL360 |
| Loyalty bonus | 0.50% of plan value from the sixth anniversary, then every year |
| Death benefit | 101% of the plan’s exit value |
What is RL360 Oracle?
Oracle is a single premium investment bond. You pay in a lump sum, choose from RL360’s range of funds, and the plan keeps growing without UK-style tax inside the wrapper. You can add further payments later. The plan stays invested until you take its value out or the last life assured dies, and it can cover up to six lives.
Oracle is a fund-based bond. If you want to hold individual shares, bonds, exchange traded funds or use a discretionary manager, you would normally look at a portfolio bond instead, such as RL360’s PIMS or the FPI Reserve.
Who it may suit, and who it may not
It may suit you if:
- You have a lump sum and want a fund-based offshore bond with no dealing or custody charges.
- You want to hold the money in a currency other than pounds, in one of seven currencies.
- You plan to use a trust for estate planning, since Oracle can be used with several RL360 trusts.
It may not suit you if:
- You may need the money back within about five years, because of the establishment charge.
- You want direct shares or a discretionary manager.
- You are likely to be UK resident while holding the bond, where the tax position needs particular care.
Minimum payments
| Currency | Initial | Additional | Per fund | Minimum plan value |
|---|---|---|---|---|
| GBP | 20,000 | 2,500 | 500 | 12,500 |
| EUR | 24,000 | 3,000 | 600 | 15,000 |
| USD | 28,000 | 3,500 | 700 | 17,500 |
| HKD | 200,000 | 25,000 | 5,000 | 125,000 |
The guide also gives minimums for Swiss francs, Australian dollars and yen. Payment is by telegraphic transfer. The minimum plan value is the amount that must remain after a withdrawal.
Charges explained
| Charge | How it works |
|---|---|
| Establishment charge | 0.00% to 7.50% of each payment, depending on your investment, payable over the first five years and deducted quarterly. Each additional payment has its own charge |
| Administration charge | 0.60% to 1.20% a year, based on the higher of the current plan value or the payments made, deducted quarterly |
| Dealing and custody | None. RL360 does not charge for buying, selling or custody |
| Withdrawals | None from RL360. Your bank may charge for receiving the transfer |
| Fund charges | Set by each fund manager and built into fund prices |
| Adviser fees | Optional. An investment adviser fee and a financial adviser fee, each agreed with the adviser and possibly taken from the plan. No rate is set by RL360 |
What this means. The establishment charge is the key variable. At the top of the range it takes 7.5% of each payment over five years, which is a heavy cost if you leave early. The administration charge is then a recurring annual cost, and it is calculated on the higher of the plan value or the payments made, so it does not fall if your investments lose value. RL360 does not charge for dealing, but the funds do. Ask for your personal illustration to see the actual rates for your amount.
Adviser fees. Any fee your adviser takes is separate from these charges and should be agreed in writing, in money. This applies to us as much as anyone.
Enhanced allocation and the loyalty bonus
Enhanced allocation. Larger payments are allocated at more than 100%. In the guide’s sterling example, total payments of 20,000 to 34,999 receive 100%, 35,000 to 49,999 receive 101%, 50,000 to 79,999 receive 102%, 80,000 to 124,999 receive 103%, 125,000 to 149,999 receive 104% and 150,000 or more receive 105%. Other currencies have their own thresholds.
Loyalty bonus. RL360 adds 0.50% of the plan value on the sixth anniversary and every year after, invested in line with your current funds. For additional payments, the bonus starts on the sixth anniversary of that payment. It is small, and it is paid for by the charges, so weigh it against the total cost, not on its own.
Funds and investing
Oracle offers more than 300 funds from leading managers across sectors and themes, and switching between them is free and unlimited. Fund choice is as important as the plan charges, because a fund with a high annual charge adds to every other cost on this page. RL360 publishes a Savings and Investment Fund Guide with the charges for each fund.
Withdrawals and leaving early
Withdrawals. You can take regular or one-off withdrawals at any time, within the minimums above. The plan must keep a minimum value afterwards.
Cooling off. You have 30 days from receiving the plan schedule to cancel. Your payment is returned, unless the funds have fallen in value, in which case you may get back less.
Early exit. If you cancel after the cooling-off period and before the establishment charge has been fully paid, the outstanding establishment charge applies, so you could get back less than you put in. The guide gives no separate surrender schedule. The effect on your plan is in your illustration and key information document. Ask RL360 for a written exit value before you act.
Death benefit and trusts
When the last life assured dies, RL360 pays 101% of the plan’s exit value and the plan ends. Oracle can be used with six RL360 trusts: Beneficiary, Discounted Gift, Gift, International Flexible, Isle of Man Probate and Loan. A trust can make a bond an effective way to deal with inheritance tax and probate, but the right design depends on where you live and where your assets are. See our guides to wills and trusts for UK expats and inheritance tax for UK expats.
Tax for UK expats
The bond is issued in the Isle of Man, which does not make it tax-free for you. Tax depends on where you are resident when you take money out. If you return to the UK, gains are taxed as chargeable event gains, with top-slicing relief in some cases. Our guide to offshore investment bonds covers the rules in more detail.
RL360 Oracle: frequently asked questions
1. Is RL360 Oracle still available?
RL360 lists it as a current product. Confirm with RL360 or your adviser.
2. How much do I need to invest?
At least GBP 20,000, EUR 24,000 or USD 28,000, or the equivalent in other currencies.
3. What does Oracle cost?
An establishment charge of 0.00% to 7.50% over five years and an administration charge of 0.60% to 1.20% a year, plus fund charges and any adviser fees.
4. Are there dealing charges?
RL360 does not charge for buying, selling or custody. Funds have their own charges.
5. Can I take money out?
Yes, at any time, as regular or one-off withdrawals, subject to the minimums.
6. What happens if I cancel early?
After the 30-day cooling-off period, any outstanding establishment charge applies.
7. Can I use Oracle with a trust?
Yes, with six RL360 trusts including gift, loan and probate trusts.
8. Can you review my Oracle bond?
Yes. Send us your latest statement and policy documents and we will set out the costs and your options.
Get your Oracle bond reviewed
If you hold Oracle or are being offered it, we can show you the real cost, your exit position and the alternatives. Request a callback and we will arrange a time that suits your time zone.