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Annuity liabilities still to be resolved

The thorny problem of Equitable&#39s guaranteed annuity liabilities has still to be tackled despite the Halifax deal for the salesforce, admin and fund management.

Halifax will pay a further £250m to Equitable if policyholders reach an agreement but it will not be involved in working out a compromise. Equitable will be battling it out alone to structure a deal that will convince policyholders to give up their guarantees in return for a one-off policy bonus.

Annuity Direct managing director and Equitable Life Guaranteed Annuity Policyholder Action Group leader Stuart Bayliss says: “The most important problem has not been resolved. It is unlikely policyholders will accept a compromise that in any way tries to negate the Lords&#39 decision. But a compromise within the decision can easily be constructed to meet policyholder approval.”

Income Drawdown Advisory Bureau director Ronnie Lymburn says: “I do not think this is as good news as Halifax and Equitable make out. They could be raising policyholders&#39 expectations only to dash them yet again.”


Degrees of separation

IFAs are becoming an endangered species – or at least an increasingly elderly one. IFAs and recruitment agencies agree that finding new IFAs is becoming more and more difficult. But while the industry recognises this shortage, firms are reluctant to recruit graduates. Instead, they are all trawling the same ever decreasing pool of qualified and […]

Just 8% of firms know stakeholder start date

Only 8 per cent of UK businesses which are aware of stakeholder pensions know the legislation will be introduced this year, according to research by BACS. The company says among businesses there is a high level of confusion and misinformation surrounding stakeholder, which is launched in April. BACS surveyed 461 businesses across a range of […]

LeggMason VCT marches on

LeggMason Investors has joined the army of companies offering venture capital trusts that invest in companies listed on AIM (alternative investment market). The LeggMason AIM VCT enables clients who are looking for capital growth over the longer term to invest in smaller companies that have the potential to expand. This VCT invests in unquoted companies […]

Beta blocker

How many definitions of risk do clients discuss with IFAs – inflation risk, interest rates, markets, default, liquidity, event, tax, legislation, manager, principal? Probably none other than the “Am I going to lose money?” risk. The problem facing people wanting to invest is the situation regarding risk or what precisely makes one investment more “risky” […]

Bonds in 2017: Stick or twist?

Royal London Asset Management Bond Fund Managers Paola Binns and Craig Inches look at why short duration could be a key tactic for fixed income investors during 2017. Read the full article here The value of investments and the income from them is not guaranteed and may go down as well as up and investors […]


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