View more on these topics

£5bn of with-profit bonds can be withdrawn MVR-free this year, says Skandia

Skandia has said with-profits bonds held by around 500,000 clients will this year hit their tenth anniversaries, triggering a penalty-free exit period on a third of them.

The group says it believes of the £15bn in with-profits bonds that hit ten-years this year around £5bn can be withdrawn with no market value reductions.

Advisers should review their clients’ investments now to decide whether to take advantage of this opportunity, Skandia says.

Skandia head of proposition marketing Graham Bentley says: “With-profits funds are like the mobile phones of the 1980’s. They served a purpose at the time but have been replaced by the more modern, flexible options available today and the original now looks pre-historic when compared to these newer options.”

The group’s research calculates that 90 with-profits bond funds have penalty-fee exit dates in 2011. It says these funds paid an average bonus rate in 2010 of 1 per cent.

At the same time 34 per cent of the funds are making an explicit charge to meet the cost of the guarantees offered to investors  but often these charges did not apply at the time the product was bought, it adds.


George Soros says Government cuts will push UK back into recession

Billionaire investor George Soros believes the UK Government has to ease up on its spending cuts in a bid to avoid going back into recession. Speaking at the Davos 2011 conference, Soros said the current austerity Budget is unsustainable as it risked killing off economic growth. Soros comments comes after the Office For National Statistics […]

Extension plea is rejected

The FSA has resisted the Financial Services Skills Council’s calls for an extended transition period for advisers to obtain a QCF level four qualification. The FSSC has argued that a transition period after the RDR deadline, where advisers would gain QCF level four while continuing to work under supervision, would prevent a shortage of qualified […]


Advisers will need annual certificate

Retail investment advisers will need a statement of professional standing in order to give independent or restricted advice from January 2013. In its final rules on professionalism, published last week, the FSA says the SPS will provide customers with evidence that the adviser subscribes to a code of ethics, is qualified, and has kept their […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm