View more on these topics

Friends Provident scraps MVRs

Friends Provident has scrapped market value reductions on nearly all of its policies.

In its with-profits announcement today, Friends says it reviewed its MVRs actively over 2009 to reflect changing investment conditions and has now decided to remove the charge from all policies except pensions which have a guaranteed regular bonus of 4 per cent.

Friends introduced MVRs in October 2008.

The firm has increased payouts compared with last year. These are roughly in line with those recently announced by Standard Life and Aviva. All regular bonuses have been maintained.

Friends says the fund returned 9.3 per cent over 2009, which compares favourably with Aviva’s 6 per cent. But 95 per cent of clients have been sent red letters, according to the firm.

Chief actuary Andy Carr says: “Investment markets continued to be volatile in 2009, as they were for much of 2008, but staged a recovery in the second half of the year.

“Thanks to this, payouts for the majority of our policyholders have increased compared to last year.

“To illustrate this, the experience of most policyholders will be that the cashable value of their plans will have increased by around 10 per cent in February 2010 compared to February 2009.

“The recovery in the second half of 2009 has also meant MVRs, reintroduced in October 2008, have now been removed on virtually all products”.


Churchill to head Nest corporation

Pension Protection Fund chair Lawrence Churchill has been appointed chair designate of the trustee corporation which will run the National Emp-loyment Savings Trust.


Pension mission

Whether we like it or not it is legislation that shapes our pension saving behaviour. It is because of past legislation that some of us today save in funded pension schemes run by our employers and some of us save instead in unfunded pension schemes run by the state. It is also due to legislation […]

Clear move to service

For many years, our firm has been providing lifetime financial planning to the majority of our clients, from protection and debt management to pension and investment planning, post-retirement planning and the passing on of wealth. However, changing legislation and regulatory requirements such as treating customers fairly, the retail distribution review and the continued volatility in […]


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