View more on these topics

New kids on the block can shock the slumbering giants

I believe that the present reduction of terminal bonuses is a scandal and totally disgraceful.

I have just had a client who had to wait to draw protected rights because his wife was dying and I did not want to incorporate a spouse. Also, the accepting scheme, as we were using a special temporary annuity, was not able to take protected rights until this month.

We then discovered that although we had been quoted a figure of £57,000 by Scottish Widows five weeks ago, this figure had now fallen to £50,000.

Surely, once a terminal bonus has been earned, it is due to the client. If it is then clawed back, it just goes into the insurance company’s coffers to shore up their funds. They were unable to switch into cash as they had no other funds on that particular plan.

Then, on the same day, I had a client with a very small collection of pensions from the Pru.

Apart from the fact that it took 20 minutes to get through to somebody in Scotland, we then found out they had knocked 15 per cent off again in just a few weeks since the beginning of November.

I think this is a very serious matter and the sooner we can get shot of with-profits the better.

It is very refreshing to note that we have new kids on the block, such as Living Time from AIG which is a first-class product, with superb, friendly and charming staff and great efficiency, and some of the smaller companies, such as Winterthur, who seem to have leapt forward recently, Liverpool Victoria et al.

Let us hope that they start kicking these slumbering giants into touch.

BGW Jamieson

Principal, Jamieson Financial Management

Bognor Regis, West Sussex

Recommended

Mortgage arrears at eight-year high

Prime mortgage arrears have rocketed, according to rating agency Standard & Poor’s. Overall, prime mortgage arrears on UK RMBS are at the highest they have been for eight years.

Interaction stations

Apparently, the FSA is unhappy at industry reaction to the RDR feedback statement. They appear to be suggesting that by not pleasing any particular sector, they have created an acceptable balance. Evidently, they choose not to consider the other possibility – that such antipathy denotes an awareness that the proposed actions cannot achieve the desired outcomes.

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com