View more on these topics

Eagle has reduced client expectations

I feel bound to write to you with regard to Eagle Star and the application of the market value reduction on clients&#39 with-profits bonds.

Under with-profits plans, regular withdrawals can be set up at up to 5 per cent, with no tax implications for 20 years. Many clients over the years have adopted this route, particularly when bonus rates were in excess of this amount.

With falling bonus rates, many clients have reduced their withdrawals to come in line with the ongoing bonus rates. However, there are other clients who, due to their age, wish to keep withdrawals at the higher level and accept the fact that there will be a reduction in the value of their investment.

Eagle Star has been applying the market value reduction on regular withdrawals but has not written to the clients informing them that this action was being taken.

As most clients are confused by the regular statements that are sent out, they were unable to identify that the amount that they have been withdrawing is lower than the amount that has been debited against their investment.

Eagle Star, in its wisdom, also did not write to the IFAs to confirm that this action was to be taken.

Eagle Star has been one of the bastions of the insurance world for many years and clients have trusted it and its investment performance. For clients to be treated in such a shabby and immoral way is very disappointing.

I believe that the industry should be made aware that this cavalier attitude to clients is untenable.

Julian Mumford Senior partner, Marshallsay Mumford, Slimbridge, Gloucester


MGM maintains bonus rates and cuts MVAs

MGM Assurance is leaving regular bonus rates unchanged on its unitised with-profits policies. The move means bonuses continue at 3 per cent on life funds and 3.5 per cent on pension funds. The company says the move reflects its ongoing commitment as a mutual to with-profits when many other insurers such as Standard Life, Clerical […]

Pension edge

An extremely petulant Chancellor announced that if the National Audit Office concluded that more than 5,000 people were affected by the introduction of a lifetime allowance on pension funds, he might not bother with the introduction of pension tax simplification at all. Leaving aside such a juvenile response to a perfectly reasonable debate, what might […]

Noble & Company – The Capital Pub Company 2

Type: Enterprise investment scheme Aim: Growth by investing in the acquisition, development and operation of pubs in and around the Greater London area Minimum investment: Lump sum £3,00 Opening/closing date: January 29, 2004-April 5, 2004 for 2003/2004 tax year, June 20, 2005 for 2004/2005 tax year Charges: Initial up to 7.75% Tel: 020 7367 5606

NU forms partnership with Cumberland

Norwich Union has announced a new building society link, forming a partnership with Cumberland Building Society. Cumberland is the UK&#39s 21st largest building society and will now distribute NU&#39s life, pensions and investment products. NU now has 20 such partnerships with building societies. Cumberland deputy chief executive John Leveson says: “This is a great opportunity […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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