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Flood of calls amid cash fears

IFAs are being deluged by phone calls after press reports claiming that Equitable Life is preparing for insolvency.

Advisers are concerned that Equitable might raise its market value adjuster to stop a further exodus.

The Sunday Times claimed board minutes show the society is preparing to appoint administrators in the event of insolvency, had breached its minimum solvency requirements in June and is setting its MVA at a level to return a profit.

Equitable Life strenuously denies the reports.

Annuity Bureau director Ronnie Lymburn says: “We have had a lot of calls. It is difficult to know what to believe. But with the markets in their current state, it is out of the frying pan into the fire for people looking to transfer.”

Wentworth Rose marketing director Mark Chandler says: “Our helpline has got a lot busier. People are in a state of shock and believe it cannot get worse but it does. This is ano-ther nail in the coffin and we expect the MVA to increase as there will be a new outflow.”

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