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&#39Son of with-profits&#39 for Scottish Equitable

Scottish Equitable is to launch a “son of with-profits” unit-linked smooth managed fund in the next month.

It intends this product to be the main fund for bonds and an option for pensions. The smoothing element is likely to be diminished.

Industry commentators say a unit-linked structure would be financially attractive as it would be less capital-intensive.

Public relations manager Lesley McPherson would not comment on the plans but says: “Both Sandler and the FSA with-profits review thought the with-profits concept worthwhile. The issues have to be greater consumer understanding and transparency.”

The Abacus director Philip Martin says: “Clearly, the industry wants to continue to milk the cash cow but without the costs of providing guarantees or smoothing. If both are removed, should it still be marketed as with-profits?” Jamieson Financial Planning principal Bruce Jamieson says: “The with-profits concept is a good one, it just has not been done properly so they try a new concept. I wouldn&#39t fancy being a new investor or adviser for the first few years.”


Get back to the real world of client borrowing

Please spare a few moments to ponder over the future not of mortgage regulation or what is the next move with interest rates but the very basic ingredients that we should advise our clients on. How much to borrow and over how long. Why does everybody take a 25-year mortgage? Of course, with flexible mortgage […]

IFAs hit new high with life and pension share

IFAs&#39 share of life and pension business is hitting record levels as sales continue to grow despite volatile markets. Latest figures from the ABI for the second quarter of this year show IFAs accounted for 55.5 per cent of individual life business, the highest-ever level, up from 52.8 per cent in the same period last […]

&#39Annuitants lose out on £500m&#39

People who bought annuities over the last year without using the open market option could miss out on income totalling more than £500m during their lifetime, according to Britannic Retirement Solutions. But Britannic says the number of people failing to use the open market option will fall with new rules which require providers to tell […]


Independent view

Most things are open to interpretation. Either there is a problem with the message or a problem with the audience, it is all a matter of which side you are on. However, sometimes, a message is put across in such a way that there is very little scope for misunderstanding. Disagreement, yes, but misunderstanding? Most […]


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