View more on these topics

Friends cuts bonuses by an average of 3%

Friends Provident has joined the swathe of life companies making further cuts to bonus rates by reducing its payouts by an average of 3 per cent.

The change affects bonus rates on some unitised policies along with final bonus rates on unitised and conventional with-profits policies.

It means that a with-profits pension based on a male retiring at 65 and paying £200 a month over 20 years will now pay out £146,373 compared with £154,207 in March.

A with-profits endowment based on a male aged 30 paying £50 a month over 10 years will pay out £6,624 compared with £6,871 in March.

Friends says unless equity markets see a strong recovery, there is likely to be further reductions. Its next formal review will be in the first quarter of next year although rates will remain under review.

Managing director Ben Gunn says: “This is about being fair to our policyholders now and into the future. We do not anticipate a return to the market growth and fund returns that we saw over the last three decades and it is essential that we set regular bonus rates now that reflect both future expectations and the level of guarantees already provided.”


Derbyshire in link-up for self-cert mortgages

Derbyshire Building Society is moving into self-cert and sub-prime mortgages with an arrangement with specialist lender Kensington Mortgages. Derbyshire has a credit-repair mortgage but says this is the first time that it will be able to offer a full range of self-cert and sub-prime loans. If a borrower is not suited to any of Derbyshire&#39s […]

RLAM&#39s Phillips becomes Swip chief

Scottish Widows Investment Partnership has appointed Chris Phillips, chief executive at Royal London Asset Management, as successor to Bill Main who retires later this year. Phillips will take over from chief executive Main in December after three years with RLAM, where he helped build the business through the integration of the investment arms of United […]

London & Country joins the influx into release

Mortgage broker London & Country is the latest big name planning an equity-release team and Zurich Advice Network is offering an equity-release product for the first time. Leading IFA Hargreaves Lansdown recently announced plans for an equity-release team of three. London & Country is advertising for an equity-release manager to head and develop a specialist […]

Inside edge

Kylie Minogue, Foster&#39s Lager and such great songs such as Tie me Kangaroo Down Sport. Some of the great imports from Australia seem set to be joined by the wrap account. Hardly a household name yet but just wait and see. Over the past few years, wrap accounts have been huge business in Australia, where […]


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