View more on these topics

Clerical rectifies 28,000 incorrect with-profit bonuses

Clerical Medical has admitted bonuses paid on encashed policies and future bonus calculations on 28,000 with-profits policies were incorrect and has announced measures to refund policyholders.

The error applies to policies taken out between January 2003 and May 2004.

Policyholders who have already cashed in their policy will receive an average of £400 once their payout has been recalculated – affecting around 4,000 in total.

Existing policyholders will receive the correct payout when their policy is encashed.

Clerical is stressing that no customers will lose out, with all current and out of force policies being rectified.

It says the error occurred because it issued customer literature between January 2003 and May 2004 in which information about charges was unclear.

It changed the product literature in 2004 to more clearly describe the charges that would be applied during the term of the product.

The firm says it is writing to customers whose payouts were incorrect when they cashed in their policy and will payout the additional amounts by cheque.

Those customers who have partially encashed or switched their policies will be reimbursed with units added to their policy

IFAs and customers with questions can call the dedicated team that has been put in place, on 0845 124 1415 from Monday to Friday between 8.30am and 6pm.

HBOS Financial Services managing director Rob Devey says: “We are very sorry for this error. Lessons have been learned. We are putting this right and no customer loses out.”

Recommended

Is green growth the new greed?

The amount of investor money in ethical funds has grown by almost a third in the past year, according to the Investment Management Association.Green funds had a total of £5.6bn in assets under management at the end of June compared with £4.26bn at the same time last year.It has been a strong year for awareness […]

PPF consults over levy plans

The Pension Protection Fund has published a consultation document setting out how it intends to calculate its levy .The paper, launched last week, proposes that the levy is set for three years between 2008 and 2011. It also says Dun & Bradstreet will continue as the PPF insolvency provider for a further two years, after […]

Off the beaten track

Last week saw some fairly wild swings in share prices and other financial instruments. There were gyrations in financial instruments I had not even heard of. Such is the complexity of modern investment life that unless you make an effort to keep abreast of develop-ments in markets, products and indices, you can find yourself significantly […]

Worst banking crisis in decades, says Blue Planet IM

The financial markets are entering the worst banking crisis in decades and the stockmarket is set to fall by another 20 per cent, says Blue Planet Investment Management.Blue Planet Worldwide Financials Investment Trust manager Ken Murray warns liquidity issues are causing continuing problems in the money markets and banks are increasingly unwilling to lend to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com