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ScotMut makes second cut to WP bonuses

Scottish Mutual has cut with-profits bonus rates for the second time this year but avoided the bright glare of publicity.

The cuts – made on October 2 – average 5-6 per cent on bonds.

At the time of going to press, ScotMut was unable to give the figure for payout cuts on pensions.

Annual bonuses have also been trimmed by 0.5 per cent.

In March, ScotMut cut payouts by 15-16 per cent and cut annual bonuses by between 0.75 and 1 per cent.

Most big companies issue press releases about payout cuts, with Pruden-tial taking out ads in the national press, but ScotMut says its policy is to inform clients and advisers only.

Parent Abbey National has made a deal with Pru-dential to sell the Prudence bond rather than ScotMut&#39s with-profits through its high-street banks.

ScotMut head of communication Christine McAllister says: “When we make changes to our bonus rates, we write direct to advisers and customers taking income to advise them of the change in advance and we also advise customers to discuss the impact of the change with their IFA.”

Chartwell Investment director Patrick Connolly says: “This is doing nothing for increased transparency for with-profits.”

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