Ark Life

Since March, all new customers have been given an automatic and free switch to the gross rollup tax regime. Contractual obligations will remain in place for pre-March 2000 customers.

Through the company's customer service review, Ark Life will be informing customers of the choices available to them. Ark Life has guaranteed not to increase charges on its funds after the changeover. Management charge will remain at 1.5 per cent.

Eagle Star

There will be no charges for customers who wish to switch across, it will be done as a bid-bid transfer. Any change will have to be initiated by the customer.

The company is preparing an explanatory document for customers but has not decided yet whether the information will be sent out to customers or available on request. Eagle Star introduced a suite of investment funds called Matrix last month. There will be no penalty for switching to gross roll-up or from one fund to another within Matrix. The company has no plans to increase its charges at the moment and its 1 per cent management charge is being maintained under the new regime.

Irish Life

Irish Life has sold £250 million worth of its flagship product Scope so far this year. Anyone who bought Scope from September will have an automatic switch to gross roll-up with no charge. Those who bought Scope products before September can switch at no cost if they request that. They will have to cash in their policies to transfer but Irish Life will waive its early exit penalties. Irish Life writes to customers every six months and will be notifying investors of its options. Charges will not change under the new regime.

Canada Life

Free switches are available to those who bought Focus 15 since October 16th. Charges will not change for those contracts. Canada Life Ireland is repricing all its products for the new regime and a suite of products will be introduced in January. The company is not guaranteeing that it will not increase its charges but says its rates will be competitive. The company will study each policy on a case by case basis if requested but predicts that it will not be in the interest of most of its customers to cash in old policies and move to the gross roll-up regime.

Hibernian

Hibernian hasn't sold a product that will switch automatically but it is offering a free switch to lump sum investors who request it. The offer is open to almost all of its customers with the exception of conventional with profits policies that are near to maturing.

The company wants its customers to seek advice before asking for a switch. Hibernian will quadruple the number of funds available to customers in the first quarter of next year and investors will be able to move around from fund to fund without surrendering their policies. Hibernian has no plans to increase its charges under the new tax regime.