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Criticism focus is on WP rather than cash destroyers

With-profits policies have come in for much greater scrutiny and criticism than other types of product that have wiped out investors&#39 savings, according to Liverpool Victoria&#39s head of distribution Rye Mills.

Mills said that products such as split-capital investment trusts and structured products have not had the same scrutiny despite the fact that many investors had lost their entire investment.

While accepting that with-profits policies would not form as much of the market as they have done in the past, Mills suggested at one stage that a diversified portfolio might have been regarded as having several with-profits funds.

But he said there is still a case for with-profits from well-run life offices forming a core holding with other types of fund as part of an investment portfolio.

He said: “I want to comment on the coverage that has appeared in relation to other types of asset classes that have performed exceptionally badly. There has been a disproportionate amount of interest in with-profits if you look at the acreage of print coverage and compare it with that of split caps and precipice bonds. I find it difficult to equate it with investments that have completely destroyed capital value.”


£14m injection for BBNFS liabilities

Berkeley Berry Birch has been forced to pump £14m into Berry Birch & Noble Financial Services to meet its misselling liabilities. BBB chairman and chief executive Cliff Lockyer says an agreement had been reached with the FSA to cover any pension review liabilities – which reached £8.4m in total – in the reverse takeover of […]

Direct Line defends price-based life cover campaign

Direct Line is defending itself against allegations that it is selling inadequate critical-illness cover alongside life insurance. Protection specialist Lifesearch hit out against Direct Line last week, accusing it of selling CI cover on price alone and using TV advertising to encourage consumers to replace older policies. Lifesearch claims that Direct Line is misleading consumers […]

L&G capital protection plus 3 closes this Friday.

Investors have only four more days to invest in Legal & General&#39s capital protection plus 3 product, which closes to new business after 5pm this Friday.The product is described as good for cautious investors wanting security in their investment and offers capital protection at maturity if the FTSE 100 index falls.It also pays out a […]

Bupa boosting group income protection deal

Bupa has upgraded its group income protection product with changes including improved free cover levels, simplified and higher maximum benefits, improved advance underwriting and increased non-medical limits. Maximum free cover levels will now be £65,000 for schemes with 10-99 lives, £75,000 for schemes of 100-299 lives and £90,000 for 300 or more. The maximum benefit […]


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