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AIG declines to reveal what happens if enhanced fund investors fail to make decision today

AIG Life has declined to reveal what will happen to investors in the frozen enhanced fund if they fail to decide on their exit strategy by today’s deadline.

Investors must today decide whether to take the exit plan and withdraw their money on December 15, but face losses of around 12 per cent of their original capital, according to estimates by independent valuers Cairn Capital, or take the maturity plan which will guarantee their capital if they remain in the fund until 2012. They can leave the maturity plan at any time but lose the guarantee.

Investors can also opt for the conditional exit plan, under which they will only exit the fund if assets reach a threshold auction price of 66 per cent of their original value.

But AIG Life has refused to say what will happen if investors fail to make a decision today.

A spokesman says: “We want to encourage as many people as possible to take advice and make a decision that is best for their individual circumstances and so we have not publicised a default option.”

AIG Invest Action Group chairman Zia Khan says: “It is a very large decision for the depositors, with many facing financial difficulties, we will fight AIG and the Banks that sold this product till our members have all their cash returned.”


Channels could lead to rise in FOS cases

The FSA’s decision to introduce independent advice and sales advice channels could lead to an increase in the number of cases referred to the Financial Ombudsman Service, warns principal ombudsman David Thomas.


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