How it Works

The Education Bond® Programme
is simple and effective

Three simple steps

The Education Bond® Programme candidates must comply 3 simple steps to be in accordance with UK Immigration Rules. All details can be found in the Application Pack and InvestUK can help every step of the way:

1

Comply with the rules to obtain entry clearance

The applicant is required to deposit the sum of £2M with a regulated financial institution or bank in the United Kingdom or other eligible jurisdiction.

2

Obtain investment advice from investment advisor

The candidate is required to appoint a regulated investment advisor so that they fully understand the Programme’s investment strategy.

3

Make investments in accordance with immigration rules

Candidates can now join the programme and become a Bondholder

Once the Bondholder has been granted Indefinite Leave to remain in the UK, it is expected that they will liquidate their investments made through the Programme, have their capital returned and their participation in the Programme will come to an end.

Decisions to be made

Nominate the principal applicant

The Education Bond® Programme allows the Bondholder to benefit personally if they are over the age of 18 (for example a student) or nominate their children as beneficiaries (for example if they are of school age) as beneficiaries if preferred. The Bondholder must be the principal applicant for the Tier 1 (Investor) visa, and have full and unconditional control over the funds invested over the 5 year investment period.

As the Bondholder’s funds normally originate from the parents, the funds will need to be passed over to the student by way of a ‘Deed of Gift’ that evidences this transfer of control over the funds. If the student is under the age of 18, a parent must be the principal applicant and the child named as a dependent. This child, named as a dependent, will still be entitled to Indefinite Leave to Remain after 5 years.

Choose a suitable investment option

Under the Education Bond® Programme, Bondholders can choose between two approaches to suit their investment profile and aspirations:

Stability Option

The Stability Option enables the Bondholder to allocate their £2 million investment in two parts: £1 million (50%) in United Kingdom Government Bonds with 0% interest after management fees, and £1 million in higher-yielding, secured Bonds issued by the Programme’s special lending company with 4% annual interest before tax but after paying the Programme’s management fees. For those Bondholders seeking a higher income, and prepared to take on a bit more risk exposure, an alternative is:

Opportunity Option

The Opportunity Option enables the Bondholder to allocate all of their £2 million visa-qualifying investment in higher-yielding, secured Bonds issued by the Programme’s special purpose lending company with 4% annual interest so providing a total income of £80,000 a year.

Consult a financial advisor

The application process to join the Education Bond® Programme is straightforward, but to be compliant under UK regulations, candidates should ask their financial adviser or certified Programme promoter for a copy of the Application Pack. InvestUK can introduce the right person to help explain the detail of the Programme in either China or UK.

At the beginning of the application process, candidates will be provided with an Application Pack explaining the Programme in detail and including application forms. These application forms will gather the information and documents necessary for InvestUK to conduct due diligence to the standards required by the investment managers, and by the candidate’s bank and immigration lawyer. The due diligence is designed to meet the high regulatory standards applicable in the UK and other relevant jurisdictions.