View more on these topics

Legal threat hangs over Equitable rescue plan

Equitable Life&#39s rescue plan could be under threat from a legal challenge which may mean thousands of members of group pension schemes are still entitled to guaranteed annuities.

City law firm Linklaters says its clients in the unidentified schemes could still be elig-ible for guaranteed annuities after an Equitable member queried the conditions of the society&#39s compromise scheme.

Linklaters believes that pension fund trustees may be unable to sign away their members&#39 guaranteed annuities by voting in favour of the deal.

It says it has not started proceedings against Equitable but admits it is awaiting instructions from clients potentially affected by the loophole.

Equitable says it is unconcerned about any potential challenge because it bel-ieves the policyholders inv-olved – who joined the sch-emes after 1988 – are not entitled to guaranteed annuities because they had already been withdrawn.

Even if the policyholders are found to be eligible, Equitable claims there are provisions in the compromise plan, which would protect it against a legal challenge.

A Linklaters spokesman says: “After considering the issue of whether members of group pension schemes could still be entitled to guaranteed annuity rate policies, we concluded that we were obliged to bring this to the attention of other clients in a similar position. We cannot comment on what they intend to do.”

An Equitable spokesman says: “We do not believe the point raised has any effect on the validity of the vote but nonetheless we will be mentioning it to the court if there is a positive vote.”


Newton chooses freedom

Newton has unveiled the Newton UK opportunities fund, an Oeic that aims for growth by investing in a portfolio of between 40 and 50 UK stocks.The fund manager, John Wood, has the freedom to invest in companies of any size across any industrial sector as he is not bound by a benchmark index. Instead, the […]

Pensions top for saving but planning left to last minute

FSA consumer research shows pensions are top of the public&#39s savings agenda but most financial planning is carried out only just before retirement.The FSA undertook the research to look at how consumers plan their financial future and found there is a significant demand for advice.Pensions are seen as the key vehicle for making provision for […]

Two appointments at Standard Life Healthcare

Standard Life Healthcare has announced two key promotions to its sales and IFA relations team. Iain McMillan has been promoted to become head of sales and marketing from his current position as national sales manager intermediary division. He has been with the provider since 1995 when he joined as intermediary sales consultant for the Scottish […]

Autif research refutes FSA&#39s anti-performance position

Autif dealt another heavy blow to the FSA&#39s anti-past performance stance this week with new research revealing that performance figures can play a crucial role in fund selection.The research, carried out by financial consultancy Charles River Associates, analysed the findings of 29 past performance studies carried out over the last three decades.It concluded that while […]


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