View more on these topics

Equitable Life vetoes drawdown transfers

Equitable Life is dashing the hopes of thousands of income-drawdown policyholders by refusing to allow them to transfer their policies.

Under new rules yet to be finalised by the Government, a life office has the final veto over which policyholders can transfer their drawdown plan.

But in calls to the Equitable Life helpline, staff admitted it is planning to prevent all but a small minority of its 18,000-plus drawdown policyholders from transferring to another provider.

It has set a cut-off point of June 29, 2000 and says any drawdown policy sold before this date will be prevented from transferring. Only those sold after this date can move.

By the end of 1999, Equitable Life had sold 18,209 of the total 53,771 drawdown policies sold in the UK, representing nearly £2bn of £6.5bn invested through the product.

Initial fears were that the life office would levy a 10 per cent market value adjustment pen alty on drawdown customers who wanted to transfer.

Clerical Medical pensions strategy manager Nigel Stammers says: “It is a puzzle to us. It would seem to be going aga inst income-drawdown policyholders&#39 rights. We will allow all existing income-drawdown policyholders to transfer out if they want to.”

Skandia head of pensions marketing Peter Jordan says: “This is going to be disappointing for drawdown policyholders with Equitable Life. No doubt, many of them will be hoping Equitable changes its mind.”


Intelligent Finance calls for regulation of Best Buy tables

Intelligent Finance is calling for Best Buy tables to be regulated on the principle that the customer&#39s entire banking arrangements should be taken into account. The new telenet bank from the Halifax claims that consumers with two or more banking products would be better off with them than shopping around for supposedly the best buy […]

Schroders recruits Perpetual fund managers

Schroders has recruited three fund managers from Perpetual to strengthen its US equities team. Ian Brady will become Schroders head of US equities. Philip Chappell and Grant Cowley will also join the team. Former Legal & General joint head of North American securities Ian Cooke is also joining Schroders. Perpetual was bought by Amvescap in […]

Premier Portfolio Managers – PII Global Select Fund

Thursday, 4th January 2001.Type: Sicav.Aim: Growth by investing in US large and small cap stocks, Far East growth stocks, global value stocks and European stocks.Minimum investment: $2,500.Place of registration: Luxemburg.Investment split: US large cap 20 per cent, US small cap 20 per cent, Far East 20 per cent, Europe 20 per cent, global 20 per […]

Inter-Alliance supermarket links with BT

National IFA Inter-Alliance is teaming up with British Telecom in a move which will provide BT website users with access to the IFA&#39s fund supermarket and advisers. The Isa and fund supermarket went live on the BTopenworld website this week following a stockmarket announcement. Inter-Alliance will have immediate access to BT&#39s 800,000 online customers and […]

Guide cover resized

Guide: Johnson Fleming’s managed auto-enrolment service for SMEs

Johnson Fleming has launched its new managed auto-enrolment service, designed to support SME businesses of up to 250 employees. The managed auto-enrolment service is not just about providing businesses with a software system for them to manage themselves, but more about outsourcing the administration of the project and scheme to Johnson Fleming’s auto-enrolment staff.


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