View more on these topics

IFAs reckon policyholders should still switch

IFAs believe that even if Equitable Life policyholders agree to the compromise deal offered last week, policyholders will still face better prospects looking elsewhere.

They say that even if the deal is agreed, it is not thought likely that it will stem the flow of policyholders wanting to leave the fund. Equitable saw £600m leave after it made drastic bonus cuts in July and clients are suffering lengthy delays in transferring funds.

However, many IFAs think that policyholders will vote for the deal in order to receive at least some compensation for their losses before leaving.

IFAs believe although securing the compromise would go some way to remove uncertainty about future liabilities in the fund, Equitable will still face huge financial problems and with limited investment freedom.

The case of with-profits annuitants is still causing concern. They were given a 2.5 per cent uplift as part of the compromise but are still locked in. Equitable is looking at whether these policies can be converted.

Dennehy Weller director Brian Dennehy says: “Those who can get out, particularly those without gars, should already have done so. Anyone who wants a large degree of certainty and decent investment prospects is unlikely to find it within Equitable even if the compromise is accepted.”

Annuity Bureau managing director Peter Quinton says: “In reality there remains a huge number of guarantees within that fund and these will continue to restrict the investment flexibility the fund managers have, and consequently the returns that are achievable.”


Standard Life Bank cuts mortgage rate

Standard Life Bank is cutting its standard variable rate for its freestyle mortgage to 5.75 per cent from 6 per cent from October 15, following last week&#39s cut by the Bank of England.Standard Life Bank Bank managing director Neil Ross says: “This is good news for our all our mortgage customers. Our new mortgage rate […]

Linked bonds spark fears of misselling

IFAs fear that the recent stockmarket slump could mean many high-income and stockmarket-linked bonds fail to reach their investment targets, leaving policyholders out of pocket and triggering claims of misselling. The fall in stockmarket indices to which many of the bonds are linked could mean that some policyholders lose their entire investment, as many bonds […]

Life offices could close or merge as the markets slump and liabilities leap

Life offices are facing a financial crisis because of plummeting stockmarkets and soaring liabilities, meaning some could be in danger of closing to new business. The FSA says the financial situation of the life industry is of concern and that it is keeping a “very close eye” on the sector. A report from Cazalet Financial […]

Relax polarisation to weed out multi-tied agents, says Pima chief

Polarisation must be relaxed to weed out IFAs who are really acting as multi-tied agents, says the new director general of the Pep & Isa Managers&#39 Association. In his first week as head of the trade body, Tony Vine-Lott has not shied away from controversy by slamming IFAs for the lack of transparency about their […]

Keep calm and carry on?

We British are known for our stiff upper lip and just getting on with things. It’s part of our quirky cultural behaviour – like forming orderly queues, or saying sorry when it’s not our fault. Many of us just aren’t that great at talking about what’s bothering us. But if someone feels that the stresses […]


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