Royal London is reducing the terminal bonuses on some with-profits policies in the closed Scottish Life fund.Final bonus rates for longer-term conventional with-profits plans have been reduced from 15 per cent at January 1 this year to 11.25 per cent from September 1. Rates on 20-year plans fall from 25 per cent to 19.75 per cent and on 25-year terms from 45 per cent to 37.25 per cent. Terminal bonus rates for shorter plans and annual bonus rates have been maintained. Group finance director Stephen Shone says: “The reduction in final bonus rates for longer-term policies in the Scottish Life fund is primarily as a result of an increase in liabilities relating to guarantees which apply to certain policies in the fund. “As a result, the demutualisation enhancement has been reduced until further notice from 1.25 per cent to 0.75 per cent a year for both future and historic investment returns. “Final bonuses have been reduced to maintain a fair relationship between payouts and underlying asset shares.”
Property trusts were again the top-selling sector in August for the eight consecutive month. Net Isa sales were 1.7bn, the worst figures in 11 months.
IFAs must beware of advising clients on “bribes” offered by employers to leave final-salary pension schemes. Syndaxi Financial Planning managing director Robert Reid says firms are effectively trying to bribe staff to quit schemes by offering payouts. He says staff would be worse off and urges the FSA to investigate if employers are carrying out […]
Is FSA chairman Callum McCarthy right to say that the current life and pension distribution model is broken?
Scottish Equitable’s veteran pension guru Stewart Ritchie is alarmed that IFAs might find themselves carrying the can for complaints arising from employees who get sweeteners to leave defined-benefit pension schemes early.What’s more, Ritchie has warned the FSA and The Pensions Regulator about the situation where companies want people out of DB schemes to reduce liabilities […]
Chris Taylor, Investment Director & Head of Research at Neptune The oil price has more than halved over the past 18 months. Many market participants assume this is a temporary phenomenon. We believe they are wrong. Our analysis of the changes taking place in the real world suggests the oil industry is adapting to life […]
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Claims management companies must be more specific on separate permissions and competency when they under the remit of the FCA, according to HM Treasury. Under rules proposed in the Treasury’s latest consultation paper, claims management companies will operate under six sectors – housing disrepair, industrial injuries disablement benefit, personal industry, financial products and services, criminal […]
Knowing what assets each operator will accept and with what conditions is becoming increasingly difficult The recent well-publicised events concerning Sipp operator asset acceptance have focused the mind of a number of advisers. We have been fielding enquiries about our own Sipp and the asset classes we as a Sipp operator would consider. But this […]
Investment trust sales may come under pressure due to new EU rules, experts have warned. The potential benefits of gearing on investment trusts risk being overlooked as new cost reporting rules make them look more expensive compared with open-ended funds. Traditionally, closed-ended funds have looked attractive based on lower costs compared with other structures, as […]