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Pru looks at orphan scheme

Prudential is understood to be looking at a process called a scheme of arrangement rather than a reattribution of its £9bn inherited estate, which would mean the firm would only need 75 per cent of policyholders to agree with any potential deal.

By taking this route, any policyholders disagreeing with the potential deal would be swept into the sub-fund if a majority of 75 per cent voting in favour of the deal is achieved and policyholders would give up the rights to any future payouts.

Rival Aviva has favoured the reattribution path, which means that each policyholder can choose individually whether to opt in or out.

Pru is understood to be considering 20 industry insiders for the role of policyholder advocate at its board meeting in Mumbai next month.

Friends Provident outgoing chief executive Keith Satchell is thought to have ruled himself out, as has former head of the British Board of Film Classification Andreas Whittam Smith, who sits on Pru’s with-profits committee.

Actuary AKG communications director Guy Vanner says: “There can be bad reattributions and good scheme of arrangements and vice versa. It is not a black and white issue.”

A Prudential spokesman says: “At this stage, no decision has been taken to proceed with a reattribution.”


FSA Chief Executive: Depolarisation was black spot

When John Tiner steps down in July, he will have been at the regulator for six years and chief executive for three but the industry is split on the legacy he will leave behind.Compliance consultant and former PIA Ombudsman Bureau second ombudsman Adam Samuel says that, after the reign of Howard Davies, Tiner’s priority was […]

Rooftop plugs £200k gap

Rooftop has again been forced to plug a six-figure hole in one of its securitised pools of loans.The sub-prime lender has pumped £216,000 into its second securitisation, Farringdon 2. In November, rating agency Fitch put a negative rating on three tranches of Farringdon 2. Last year, Rooftop had to use its reserve funds twice to […]

Advisers clash on asset allocation

JS&P head of investments Andrew Wilson has slammed Hargreaves Lansdown’s Mark Dampier’s claim that asset allocation’s importance is over-stated, arguing that Dampier is fighting mathematics.Wilson has responded to a recent column in Money Marketing, where Dampier said the importance of asset allocation has been widely overstated by academics, with time better spent choosing the best […]

Misys expects fall in Sesame numbers

Misys says it is expecting Sesame’s network to see a drop-off in numbers in favour of multi-tie proposition Sesame Select.The group, which last week issued its interim results for the six months to November 30, 2006, says there are curr-ently 1,450 registered individuals signed up to Sesame Select and it expects this will lead to […]

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What price (more) freedoms?

George Osborne will make his last Budget speech of the current parliamentary term this week, and the early media briefings suggest that pensions will again feature heavily in that statement. So what are we able to learn from the weekend’s coverage?


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