Impact to your policy as a French resident after the Brexit transition period

What do you mean by the term "resident"?

As we understand it, French law operates on the basis of where an individual is 'domiciled' or has a permanent home. This is a two-stage test, and both stages have to be satisfied. These are:

1. Where you spend most of your time.
2. What is your intention to be seen to be located in a particular place.

Although the amount of time spent in any particular place is a good indication to consider the first stage, the way you occupy your time should also be taken into consideration for the second stage. The more varied your activities at any particular place (for example work, social life, entertainment and leisure), the more likely that place is to be considered your permanent home.

If the change is happening in January, why are you only telling me now?

The new French laws were only published on 16 December 2020. We've been trying to understand the impact of these laws on your policy and we've written to the ACPR (the French regulator) to seek clarity.

Is this situation likely to change in the future? How can I keep track of any updates?

We’ll continue to update this page as more information becomes available. If any new information materially changes the position from the information you've received so far, we'll contact you again to let you know.

What if I move back to the UK before I do anything with my plan?

The restrictions only apply to French resident customers. When you return to the UK permanently, these restrictions should no longer apply. Please let us know us as soon as possible of any change of address.

What if I move back to the UK to make changes to my plan and then return to France?

The restrictions apply to French resident customers. So even if you return to the UK temporarily, you're still likely to be regarded as a French resident and we'll not be able to make any changes to your policy, which are not allowed under the new French laws.

Can I change my policy address to that of a UK relative to avoid the new French laws?

No. We need your residential address to manage your policy. Using another address will result in delays in getting in touch with you and making payments, as we'll need to take extra steps to make sure that we're in contact with the actual policyholder. Our priority is to safeguard your money and to make sure we're only making payment to the right person.

How does being a French resident affect my UK annuity?

We'll continue to pay your regular annuity if you've already started receiving payments, as we understand they're not affected if you're a French resident. We’ll continue to update this page as more information becomes available. If any new information materially changes the position from the information you've had so far, we'll contact you again to let you know.

How will the bank closing bank accounts affect my annuity payments?

Your bank will notify you, and may have already done so, if they're planning to close your UK bank account at the end of the Brexit transitional period. If this happens, and you need to change your banking arrangements, please let us know your new details as soon as possible so we can carry on making annuity payments to you.

How does being a French resident affect my UK drawdown policy?

We'll continue to pay your regular drawdown payments, if you've already received payments, as we understand they're not affected if you're a French resident. We’ll continue to update this as more information becomes available. If any new information materially changes the position from the information provided in this letter, we'll contact you again to let you know.

Can I still access my pensions benefits flexibly through Flexi-Access Drawdown (FAD)?

Yes, you'll still be able to do this on a regular or lump sum basis if your existing policy allows it. You won't be allowed to take out a new policy to access drawdown under French law. You should therefore seek financial advice on the options available to you.

Am I able to switch my funds to alternative funds?

Yes, you're still able to switch funds.

How will the bank closing bank accounts affect my drawdown payments?

Your bank will notify you, and may have already done so, if they're planning to close your UK bank account at the end of the Brexit transitional period. If this happens, and you need to change your banking arrangements, please let us know your new details as soon as possible so we can carry on making drawdown payments to you.

I've moved to France, or I'm planning to move there. Will this affect my policy at all after 1 January 2021?

Our understanding is that from 1 January 2021, if you remain resident in France, you won't be able to make the following types of changes to your policy: 

1. Change the percentage of salary that you or your employer pay in contributions.

2. Vary the contribution amounts currently paid to your pension either by you or by your employer, although this might be possible if the change in payment is already clearly set out in your plan terms and conditions and doesn’t need any instruction from you or us to implement.

3. Make one-off payments, or transfer money, into your existing pension plan.

4. Take out an annuity or any other product with another UK pension provider, unless that provider is authorised by the French regulator.

5. Take out a new annuity or a new policy with us, including where your policy would otherwise have automatically annuitised.

How will the bank closing bank accounts affect my pension contributions into my pension?

Your bank will notify you, and may have already done so, if they're planning to close your UK bank account at the end of the Brexit transitional period. If this happens, and you need to change your banking arrangements, please let us know your new details as soon as possible so we can carry on receiving payments from you.

If I have a Guaranteed Annuity Rate (GAR) or Guaranteed Annuity Option on my policy, am I still able to benefit?

From 1 January 2021, if you're resident in France, we'll be unable to issue an annuity policy to enable you to access your pension benefits. This is our current understanding, but we're continuing to seek clarification from the French regulator.

If I have a deferred annuity with Aviva will I still receive payments?

If you've previously been issued a deferred annuity written in your own name with Aviva prior to 1 January 2021 with payments due to start in the future, your deferred annuity will be unaffected. 

Could I take out a new policy with you?

From 1 January 2021, if you're a French resident, we can't accept any requests for new policies as we're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

Can I, or my employer, still make payments into my pension?

If you're resident in France, you and your employer can continue to make contributions to us that were already set up by 31 December 2020. This means that automatic increases to your contributions, such as a result of salary increases, are permitted BUT if you pay a specific contribution not based on percentage of your salary you won't be able to change this amount. Any contributions you can still make will be subject to your terms and conditions and HMRC rules.

Can I, or my employer, change the payment amount into my pension?

Only pension contributions that have already been set up to automatically increase each year can continue. From 1 January 2021, we can't accept any requests to change the contribution amount or percentage of salary from you or your employer.

Can I, or my employer, make single premium payments or transfer payments, into my pension?

From 1 January 2021, if you're resident in France, we can't accept any additional single contributions or transfer payments into your pension as we're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

I want to stop the premiums on my policy to make my policy paid-up or to take a premium holiday. Am I allowed to do this?

It is possible to stop contributions into your pension. You'll need to contact us as and when you’d like to restart contributions so we can confirm whether you are able to re-start contributions based on any restrictions in place at the time.

Can I add indexation of premiums to my policy?

From 1 January 2021, if you're resident in France, we can't accept any requests to index the premiums on your policy as this would be an amendment to your policy at your instruction. We're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

Am I able to switch my funds to alternative funds?

Yes, you're still able to switch funds.

Can I change the retirement date on my policy?

Yes, you're able to change the retirement date on your policy.

Can I move my pension with another provider to Aviva?

From 1 January 2021, if you're resident in France, you can't move your pension to an Aviva pension contract as we're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

Can I move my pension to another UK-based pension provider?

From 1 January 2021, if you're resident in France, you'll only be able to move your pension to another UK provider if that provider is authorised to undertake pensions business in France. We suggest you contact the receiving scheme to confirm they're happy to accept a transfer before you proceed. You should seek financial advice on the options available to you.

Can I move my pension to a French-based pension provider?

A UK pension can only be transferred outside of the UK to a QROPS (qualifying recognised overseas pension scheme). Currently our understanding is that there are no QROPS in France. You should therefore seek financial advice on the options available to you.

Can I move my pension to a provider based in another country other than the UK or France?

From 1 January 2021, a UK pension can only be transferred outside of the UK to a QROPS (qualifying recognised overseas pension scheme) that's authorised by HMRC. You should therefore seek financial advice on the options available to you.

Am I able to change the death benefit nominations on my policy?

Yes, you're able to change the death benefit nominations on your policy.

Can I still make changes to my policy online?

No, as we're restricting access to our online systems for French residents from 1 January 2021. Please note that if you've instructed changes that are no longer permitted under French law, then we may need to reverse any transactions you've placed.

Why have you mentioned changes in the letter you sent that I don't believe I can make any more?

The new French laws were only published on 16 December 2020 so please be aware that some of our communications may still mention options even though they'll not be available to you. It's worth checking with us to see whether we can make a particular change to your plan.

Can I still take cash lump sums out of my pension?

Yes, you're still able to withdraw cash lump sums, including Tax Free Cash, subject to HMRC rules.

I've moved to France, or I'm planning to move there. Will this affect my policy at all after 1 January 2021?

Our understanding is that from 1 January 2021, you can't make additional payments into your bond (even where your bond would otherwise allow new premiums) if you remain resident in France.

How will the bank closing bank accounts affect my regular withdrawals from my bond?

Your bank will notify you, and may have already done so, if they're planning to close your UK bank account at the end of the Brexit transitional period. If this happens, and you need to change your banking arrangements, please let us know your new details as soon as possible so we can carry on making your withdrawal payments.

Could I take out a new policy with you?

From 1 January 2021, if you're a French resident, we can't accept any requests for new policies as we're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

Am I able to switch my funds to alternative funds?

Yes, you're still able to switch funds.

Can I start making regular withdrawals, change the amount of an existing withdrawal, make a one-off withdrawal from my bond or stop withdrawals?

Yes. From 1 January 2021, if you're resident in France we can accept requests to start taking withdrawals or to amend any existing withdrawals from your bond provided your policy allows it.

Can I still make changes to my policy online?

No, as we're restricting access to our online systems for French residents from 1 January 2021. Please note that if you've instructed changes that are no longer permitted under French law then we may need to reverse any transactions you have placed.

Why have you mentioned changes in the letter you sent that I don't believe I can make any more?

The new French laws were only published on 16 December 2020 so please be aware that some of our communications may still mention options even though they'll not be available to you. It's worth checking with us to see whether we can make a particular change to your plan.

Can I fully surrender my policy?

Yes, you can still surrender your policy.

I've moved to France, or I'm planning to move there. Will this affect my policy at all after 1 January 2021?

As we currently understand it, from 1 January 2021, we'll not be able to carry out your request to:

1. Make any changes to the percentage or amount you currently pay in or add any one-off payments to your policy, although this might be possible if the change in payment is already clearly set out in your policy terms and conditions and doesn’t need any instruction from you or us to implement this.

2. Add cover to your policy for new individuals.

3. Change the level, or type, of cover.

4. Change the term of the policy or access the benefits in your policy earlier or later than you originally planned.

5. Take out a new policy with us.

How will the bank closing bank accounts affect payments on my policy?

Your bank will notify you, and may have already done so, if they're planning to close your UK bank account at the end of the Brexit transitional period. If this happens, and you need to change your banking arrangements, please let us know your new details as soon as possible so payments can continue.

Can I change my regular payments, or make a one-off payment, to my policy?

The only increases to regular payments permitted are those premium payments that have already been set up under your policy to increase automatically. From 1 January 2021, we can't accept any requests to change the amount of a premium or accept any one-off premium payments into your policy as Aviva isn't authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

Can I make amendments to my policy, such as by changing my cover level or adding new people to my cover?

From 1 January 2021, if you're a French resident, we can't accept any requests to change the level of cover (up or down) or add cover for new individuals to your policy as we're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

Will I be able to extend or reduce the term of my policy?

From 1 January 2021, if you're a French resident, we can't accept any requests to extend or reduce the term of your policy as we're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

Could I take out a new policy with you?

From 1 January 2021, if you're a French resident, we can't accept any requests for new policies as we're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

My endowment includes options to purchase an annuity. Is this still possible?

From 1 January 2021, if you're a French resident, we can't accept any requests to purchase an annuity as we're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

I have an endowment that include options to convert into a whole of life policy. Will this be possible?

From 1 January 2021, if you're a French resident, we can't accept any requests to convert your policy into a whole of life assurance as Aviva is not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

My policy has a built-in Escalation Option that automatically updates my policy each year. Will this still happen?

Yes. If your premiums or cover have already been set up to increase automatically each year, this can continue.

Can I remove options from my contract?

From 1 January 2021, if you're a French resident, we can't accept any requests to change or remove benefits from your policy as this will affect the premiums. We're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice on how to make sure you have the benefits and cover you need.

Can I surrender the bonuses on my contract – or take a partial surrender?

From 1 January 2021, if you're a French resident, we can't accept any requests to withdraw money from your policy as this will affect the premiums. We're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice to see whether the policy might still meet your objectives.

If I want to start a claim on my policy, can I still do this?

We can still handle claims as normal. You'll need to have a suitable bank account that can accept payments.

Will I be able to stop making premiums on my contract or lapse my policy?

It is possible to stop payments into your policy. You'll need to contact us as and when you’d like to restart them so we can consider your request in light of the restrictions which may be in place at the time.

Can I reinstate my policy?

If your policy terms and conditions allow, you may be able to reinstate your policy. However, you'll need to contact us as and when you’d like to restart your premiums so we can consider your request in light of any restrictions which may be in place at the time.

I want to stop the premiums on my policy to make my policy paid-up or to take a premium holiday. Am I allowed to do this?

It is possible to stop premiums into your policy. You'll need to contact us as and when you’d like to restart premiums so we can confirm whether you're able to do so based on any restrictions in place at the time.

Can I still make changes to my policy online?

No, as we're restricting access to our online systems for French residents from 1 January 2021. Please note that if you've instructed changes that are no longer permitted under French law then we may need to reverse any transactions you've placed.

Why have you mentioned changes in the letter you sent that I don't believe I can make any more?

The new French laws were only published on 16 December 2020. Please be aware that some of our communications may still mention options even though they'll not be available to you. It's worth checking with us to see whether we can make a particular change to your plan.

Can I fully surrender my policy?

Yes, you can still surrender your policy.

Can I partially surrender or cash in some of my clusters?

From 1 January 2021, if you're a French resident, we can't accept any requests to withdraw money from your policy as this will affect the premiums. We're not authorised to carry on business in France, under French regulation. You may therefore wish to seek financial advice to see whether the policy might still meet your objectives.