We fully agree with Robin Hunter's letter regarding with-profits, Target has been hit (Money Marketing, March 25).
The present system being used by some with-profits life offices – shortfall warning letters – can misinform and mislead clients.
We have carried out many reviews for clients who have received such warning letters from the with-profits offices.
In many cases, when we check the bonus certificates, we have discovered that in fact the basic sum assured and reversionary with-profits bonuses earned to date are greater than the 8 per cent projection given on the warning letters.
Perhaps someone can contact the FSA asking it to provide guidelines to the with-profits offices so they can stop sending out erroneous letters which cause worry and stress to the client.
Geoff Kerr Partner, St James's Place Partnership,Cirencester, Gloucestershire