View more on these topics

Emotional issues of Equitable fiasco

Martin Brook&#39s letter regarding Equitable Life (Money Marketing, August 9) refers to the method by which Equitable Life apply the reduction.

Equitable Life have recently confirmed that the non-guaranteed fund will be reduced by a much higher percentage in order to reduce the overall fund by 16 per cent.

This could result in 40 per cent, 60 per cent or the whole sum.

If the reduction in the non-guaranteed sum is inadequate, the balance will come from the guaranteed fund.

Equitable Life have confirmed that if the member leaves within his contractual rights, that is, to buy an annuity or, say, drawdown, then the reduction to the guaranteed fund will not apply.

Furthermore, in Harry Katz&#39s letter (Money Marketing, August 9) he refers to the Policyholders&#39 Protection Act. The 90 per cent is only likely to apply to the guaranteed fund.

Clients have lost 16 per cent and potentially the balance of any of the non-guaranteed fund together with a further 10 per cent if they become insolvent.

Also, do we know how long it would take for the administrators to wind up the company&#39s assets?

Could this exercise take years? How long could it be before our clients receive their share? The emotional issues are just as important as the financial issues.

Phill Owen.

RPG Consulting

St Asaph,

Clwyd

Recommended

Pinnacle takes the online route

Pinnacle Insurance is joining the online insurance bandwagon with the introduction of Helpupay.Helpupay is a mortgage payment protection insurance (MPPI) product and is aimed at all mortgage borrowers, as long as they are working for a minimum of 16 hours a week.Although the plan is available online, it can also be taken out by phone […]

Peter Jordan

P eter Jordan is on a crusade, his mission as Skandia&#39s head of pension marketing is to “battle it out” with the insurance industry establishment over the touchy issue of with-profits. He says he starts “every day on a war footing” with the ultimate aim of breaking down the inertia in the insurance market which […]

Northern Rock walks the tightrope

Northern Rock and Legal & General have linked up for the second time to create the second edition of balance-choices. Balance-choices combines an instant access savings account from Northern Rock with Legal & General&#39s with-profits income bond. Investors must place at least half of their investment, but no more than 80 per cent, in the […]

Portman jumps for discount

Portman Building Society has unveiled a two-year discounted rate mortgage that has no early redemption penalty at all.Borrowers get a 0.75 per cent discount until October 3, 2001, giving a current payable rate of 5.65 per cent. This mortgage is available for loans of up to 95 per cent of valuation and the maximum loan […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment