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Logical reason

With regard to last weeks front-page story, headlined, Pension pledge lasts just one day, I thought I would make an observation. One of the reasons I believe providers allow a period of, say, 10 to 14 days on external transfers under Omo is it can take a little while for the paperwork to get from one provider to another (often more than the 10-14 working days), not to give the clients excessive time to deliberate.

For Omos, Standard Life provides a 14-day guarantee for external transfers. My logic suggests this is because they have to have made a commitment based on tranches of money they have agreed elsewhere in the markets on that day or over an agreed timeframe. It is important to remem – ber with this that the client is not committed but the provider is. The client then has 14 days to get the paperwork all sorted. With annuity purchase internally for Standard Life, I think you will find that the client does not even need to sign a bit of paper. Standard will pay the PCLS by BACS transfer based on a phone call and start annuity payments to the account from which DDs were deducted previously so the client could go to the FSA annuity tables the same day, make sure the rate looks fair and make a decision the same day.

Whats wrong with that? Why should Standard Life guarantee it for a time period if no paperwork is required when the guarantee period is mainly to allow for the time taken to process paperwork of transfers under an Omo?

Phil Castle

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