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IFA calls for policy to be deferred rather than auto-vested

An IFA is calling for Abbey Life to amend its policies on vesting pensions so if clients fail to contact the company by their retirement date, their policy defers rather than being auto-vested.

Richard Arnold Financial Management director Richard Arnold was a member of the Abbey Life salesforce for more than 10 years before becoming an IFA in the mid-1990s. He believes that Abbey Life sales staff during his time with the firm were under the impression that pension pol- icies would defer at maturity if there was no response from clients rather than being automatically vested.

Last week, Money Marketing revealed adviser concern about Abbey Life’s practice of automatically vesting clients into its own annuity under the worst possible terms without consent.

Arnold says: “We all know auto-vesting is not in the best interests of anyone.”

Abbey Life refused to comment on past practices but a spokeswoman says it would be “impractical” to change the policy conditions.

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