Further to Julian Mumford's letter (Money Marketing, February 19), I can inform him and everyone else who may be interested that this problem with market value adjusters does not rest solely with Eagle Star.
Having undertaken a review of with-profits bond holdings, we have discovered that this penalty ploy is being applied both by Norwich Union and Standard Life. The former has chosen to inform neither clients nor IFAs and the latter says it has mailed clients but not IFAs.
I would advise Mr Mumford to suspend his belief in so-called bastions of the industry. Those days have long gone. I have another word for these institutions. It sounds like bastions but is not.
Let us face it, with-profits has truly now become the smoke and mirrors investment option and it is probably time we consigned it to the history books. Perhaps if all concerned had been a little less greedy for returns, instead of being a pseudo-equity fund, with-profits could have retained its status as the calmer way through choppy investment waters and none of these stealth levies need ever have applied.
Name and address supplied