Members of Standard Life with with-profits policies which are due to mature before the demutualisation of the company are arguing that they should still get windfall payouts.
Former Standard Life carpetbagger David Stone-banks says one member who has been a policyholder for 24 years and whose policy is due to mature soon has put his case to Standard finance director John Hylands, believing he has as much right to benefit from demutualisation as someone who has taken out a policy recently.
He has suggested that a deposit-style account should be set up for members who want to keep their windfall rights.
Stonebanks says all or most of the proceeds from demutualisation should be put back into the company's with-profits fund to help meet shortfalls, guarantees and endowment pledges.
At the company's annual general meeting last week, Hylands reassured policyholders that the firm would see that all policies, including policies maturing before demutualisation, are treated fairly.
Standard says it is still a long way from formalising the details of demutualisation and says members have the right to keep their membership by reinvesting in another with-profits investment but should first get advice.
On the issue of a deposit account, Chartwell Investment Management business development manager Ben Willis says: “It is a difficult one. If there is no precedent, then I would not expect Standard to make a precedent. If there is, I think they should set up an account.”