Money Marketing this week reports that IFAs were concerned that AIG was forcing investors to make a decision without any idea what they would get back if they did choose to sell. The insurer is promising to send investors enough information to make an informed decision and to allow sufficient time for them to make a decision.
AIG Life UK assistant general manager Mark Hawthorne says the company will be sending information regarding the closure of the enhanced fund to investors over the next few days.
“We will be giving investors all of the information before we ask them to make a decision. We accept we haven’t given them all the information yet but we are working on giving that to them and that will start trickling out in the next few days.
“Once they have all the information they will have a couple of weeks and we’ll give them enough time to consult with their financial advisers, as this is obviously a key decision. We are not expecting anyone to make a decision in the dark.”
The timetable for the decision has not been finalised but AIG says it expects investors have the information by the middle of October and says the final deadline for decision is likely to be the end of October. If investors choose to withdraw their investment they will have to wait until December 15 to receive their funds as AIG says it is keen to protect the value of the fund for all investors, not just those who wish to withdraw their funds.
AIG has conceded that there is uncertainty over what the value of investments will be at December 15 for investors who are having to take the decision to sell this month but it says it is doing all it can to treat its customers fairly.
Hawthorne says: “We will be going to our policy holders in the next few days with a number.
“Obviously, with markets as they are, making any kind of prediction is very difficult but whatever prediction we can give and whatever information we can give our policyholders we will do.”
Hawthorne also says that investors who choose to remain invested in the recovery fund at December 15 will not be locked into the fund for the three and a half year period of the recovery fund guarantee. He says investors who withdraw their investment during this time will obviously give up the guarantee (which is based in the value of the funds assets at December 15) but they will be free to withdraw funds at any time after December 15 and the guarantee date in 2012.