Nvesta hit after Eurolife goes into administration
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by Paul McMillan
Nvesta says it is closed to new business while its future is decided after parent company Eurolife Assurance Group entered administration.
EAG went into administration on August 17 when this year's 700,000 instalment of a five-year compensation plan to policyholders who invested 17m into secured bonds in 1999 fell due.Further compensation for bondholders will depend on how much can be raised through the sale of EAG's remaining assets, including Nvesta.Administrator FA Simms & Partners will hold preliminary creditor meetings in the next seven weeks with 2,000 policyholders. It says it is not yet possible to estimate the total value of EAG's assets.Nvesta says it remains solvent and continues to operate, with investments held under Nvesta plans ring-fenced. It says client money held by the company is in a client account which does not form part of its own assets.Regulation consultant Adam Samuel says: "You have to ask whether firms should be allowed to market 'guaranteed' products in the UK when the FSA has no way of policing the financial health of the com- pany hidden behind those guarantees."If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
