A Glasgow IFA says clients with endowment-style products sold by Provident Mutual have had no communications about the endowment review.
Internet IFA director Alex Docherty says the “flexible mortgage plan”, which was inherited by Norwich Union when it bought Provident Mutual, was sold as a long-term investment product to pay off a mortgage at a set date.
The product was written as a whole-of-life plan rather than as a with-profits endowment to get around qualification rules for an extension of term if people moved house.
Although the product is technically not an endowment, it is targeted at a spe- cific maturity date.
NU says the product falls within its endowment review and believes only a clerical error could have stopped Docherty's clients receiving projection letters.
But Docherty, who was a direct salesman for Provident Mutual before it was bought by General Accident which became part of Norwich Union, says NU has reviewed clients' policies when requested but has not sent out projection letters to any of his clients.
Docherty says: “NU should be writing to everybody with these policies, telling them where they stand.”
Norwich Union head of with-profits management David Riddington says: “These products have been included in our endowment review and if there is an error in sending out review letters we will put it right.”