Scottish Widows’ independent governance committee has recommended that the firm communicate investment volatility better to its customers.
Despite a generally positive report, including praise for reducing charges and engaging clients with legacy products, the committee said that it would “like to see Scottish Widows do more to ensure customers are made aware of short-term risks and have the opportunity to make tactical investment changes.”
B&CE chairman Babloo Ramamurthy, who chairs the committee, writes: “The IGC would like Scottish Widows to do more to help customers understand the fluctuating nature of investment markets and how they can change the way their money is invested should they wish to.”
The IGC found the default funds at Scottish Widows delivered 12 and 11 per cent returns a year respectively, which the committee said fared well compared to the competition, as did charges on modern products.
It also noted that complaints levels have fallen and adviser ratings of the firm have improved.
Ramamurthy writes: “The IGC considers the governance processes to be robust and in line with typical practice, but this is an area that requires constant vigilance and enhancement and we will continue to monitor it closely.”