View more on these topics

Standard faces FOS claim over WP penalties

Standard Life has been referred to the Financial Ombudsman Service for applying penalties to pension policyholders who transfer out of the with-profits fund when they are past their nominated retirement date.

Carr & Associates IFA Peter O’Hare says one of his clients has put in a claim to the FOS to recover £59 in penalty charges for transferring out of the with-profits fund to buy an annuity with another provider after his NRD had passed.

O’Hare accuses Standard head of pensions policy John Lawson of hypocrisy for criticising Royal London over charging policyholders commission for exercising the open-market option.

He says: “I can see the Royal London stance because it was probably part of the terms and conditions. I would challenge Standard to show me where it says a penalty will be applied in its terms and conditions.”

Lawson says the situation is different because Standard is not gaining financially from the penalty, which is put in place to protect remaining customers in the with-profits fund.

Lawson says: “We used to allow customers to transfer to another provider without applying a market value reduction but we do not allow it now after their NRD because people were not actually retiring but were transferring the money to other providers’ with-profit funds.

“We have been forced to penalise those people because they were abusing this and more cases were abusing it than those who were genuine.”

Recommended

L&G introduces postcode annuities after pilot is deemed successful

Legal & General is to use customer postcodes as an additional risk factor when quoting for annuity business.From today, L&G says that postcodes will be used as one of a number of risk factors for customers taking out conventional non-profit annuities, following a successful pilot study with Hargreaves Lansdown.Customers living in certain areas may receive […]

Slowdown showdown

The resilience of property prices is shown in Nationwide figures which reveal prices bouncing back in October.

GI firm Uinsure adding duo to complete B&C cover panel

Uinsure has completed its buildings and contents insurance panel with the addition of Fortis and Groupama.The general insurance intermediary was established in June by former Bankhall joint chief executive Simon Taylor. It is urging IFAs and mortgage brokers to look at selling general insurance to replace lost revenue from falling mortgage business.Taylor claims that advisers […]

Neptune’s Burnett looks beyond Greece

Watch Rob Burnett, manager of the Neptune European Opportunities Fund, discuss the Greek bailout deal and its potential implications for European equities. In the video Rob discusses: Why, with the Greek crisis receding, markets can now focus on Europe’s strong fundamentals The resilience of European markets and why the recovery is on a solid footing […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment