View more on these topics

Aegon told to rethink accounting methods

Dutch insurance giant Aegon has been criticised by the Dutch government and told to reform the way it constructs its annual accounts.

Aegon&#39s unique practice smooths its profits over 30 years, in effect, acting as a giant with-profits fund in the information it gives to investors. It has been attacked for lack of transparency.

Aegon is the parent company of Scottish Equitable, ScotEq International and Aegon Asset Management.

In a speech last Dec-ember, Aegon executive chairman Kees Storm said its practices have been criticised and are “not yet widely followed”.

The Dutch government will introduce legislation by May that will outlaw the way the global insurance company does its books.

Accounting practices are being scrutinised worldwide following the collapse of US giant Enron.

A spokesman says: “We are aware that there will be a new law going through parliament soon.

“The Dutch Association of Insurers has objected on a number of points and we await to see what will be decided.”

A spokesman for the Dutch Finance Ministry says: “The so-called Aegon method, which levels profits over the last 30 years, means you cannot know what has happened in, say, the last two years.

We do not think it is good for transparency, accountability or comparability.”

Recommended

ScotEq urging IFAs to target stakeholders for children

Scottish Equitable is urging IFAs not to miss out on the first stakeholder season for high-net-worth clients buying policies for spouses and children.It argues that many high-net-worth individuals who already have maximum pension provision are starting to see pensions in the same way as the annual Isa allowance.The company considers that IFA clients understand that […]

NU claws back its 1998 commission error from IFA firm&#39s new owner

Norwich Union is unilaterally clawing back commission from the new owner of an IFA business that it had mistakenly paid nearly four years ago to the previous owner.On January 16, CFS Independent managing director Andrew Harwood received a letter from NU, saying, following an internal audit, it would claw back commission of £1,214.18 that it […]

Scottish Widows takes middle ground

Scottish Widows has introduced the strategic income Isa, which invests in investment grade UK corporate bonds and non-investment grade European bonds.The Isa follows the middle path between the two existing Scottish Widows income Isas, the higher-risk high income bond Isa and lower-risk corporate bond Isa. The target income yield of the new product is 7.14 […]

Liverpool Victoria – Max

Friday, March 1, 2002Type: Unitised with-profits endowmentAim: Growth by investing in the Liverpool Victoria with-profits fundMinimum sum assured/premium: £4,500/£50 a month, £600 ayearMinimum-maximum term: 10 yearsFund links: With-profitsCharges: Initial charge version – initial subject to negotiation, annualimplicit. Level charge version – annual 0.32%Options: Waiver of premiumCommission: Initial 130% of Lautro, renewal 2.5%Tel: 0845 6020690

Inheritance tax – How to declare and who pays

By Kim Jarvis, Canada Life In this article we look at which forms personal representatives (PRs) need to complete and who actually pays the tax. To recap, under current rules, any part of the estate that falls within the available nil-rate band (NRB), currently £325,000, is taxed at zero. Anything in excess of the NRB is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment