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Fury at ScotLife blocking bonus

IFAs have slammed Scottish Life for reneging on its pledge to issue

with-profits policyholders with an additional reversionary bonus

following its demutualisation last year.

ScotLife sent out a policy circular last April stating its intention

to pay a bonus to policyholders at the end of 2001 as part of a

compensation package for loss of voting rights after the takeover by

Royal London.

But chief executive Brian Duffin has admitted that ScotLife has

decided not to pay the ARB as it may result in poorer returns for

policyholders in its closed fund.

IFAs are furious with the move, saying it is tantamount to robbing

members who were in line to receive payouts averaging £650 per

policy. They claim the matter should be investigated by the FSA and

say it is another blow to an industry which has been hampered by a

poor public image.

JWP Life & Pensions principal Stephan Reynolds says: “They are

just robbing their customers. They have made a promise to make a

payment and they have not. It should be investigated by the


Pensions & Investments Management principal Phil Moore says: “It

is outrageous. I am dumbfounded that a multi-billion-pound company

can turn round and do this to policyholders. It is not good news for

the industry.”

Scottish Life head of communications Alasdair Buchanan says: “There

was always a possibility that financial and economic conditions would

change the committee&#39s view as to whether a bonus would be paid or



Investment update

ABN Amro is offering a blanket 1 per cent discount on all Isa and Peptransfers and new Isa business until the end of April. The discount,which is exclusive to IFAs, will reduce the initial charge on theseven funds from 5 per cent to 4 per cent. Annual management chargesare between 1.25 and 1.5 per cent. […]

Baring Asset Management – US Plus Bond Fund

Friday February 1, 2002 Type: Unit trust. Aim: Income by investing in high quality US-denominated, US high yield, emerging debt and non-US bonds. Place of registration: Dublin. Minimum investment: $5,000. Investment split: High quality US-denominated bonds 70 per cent, US high yield, emerging debt and non-US bonds 30 per cent. Yield: 5.4 per cent. Isa […]

Treasury publishes regulation timeline

The Treasury has published a timeline for the implementation of regulation of mortgage and general insurance intermediaries on its website which sees the new regime come into effect in the second quarter of 2004.The FSA will publish a guide for intermediaries who are not currently regulated in March. Legislation will be introduced in Parliament in […]

IFA sector fastest-growing of all brokers

The IFA sector was the fastest-growing of all insurance brokers inboth 1999 and 2000, according to a report by professional servicesfirm Imas Consultants.The Medium Size UK Broker and Intermediary Report, exclusive to MoneyMarketing, also found that despite common perception of IFAs beingsmall operations servicing local businesses, increasingly, they areprofessionals with wealthy and corporate clients.IFA firms […]


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