View more on these topics

Standard Life goes back on endowment promise

Standard Life has suspended its mortgage endowment promise, potentially hitting 600,000 policyholders who suffer a shortfall.

The promise was conditional on Standard increasing its free capital from its level in September 2000. However, the firm says poor investment conditions over the last four years mean it cannot justify making further provisions towards the cost of the scheme.

The promise was introduced in September 2000 with the aim of providing support to customers whose policies were likely to fall short of the target amount at maturity. Standard promised to top up their payouts to the amount targeted.

Around 600,000 policyholders will be affected by the decision. Customers with endowments maturing before the end of 2005 will receive the full amount promised and top-ups will then be reduced gradually.

The move comes as Standard prepares for its demutualisation vote in 2006.

Standard has also announced that it will apply time bars to complaints on mortgage endowment policies for which it was responsible at point of sale, including tied representatives at Halifax, Bank of Scotland and its direct salesforce.

Customers must now make misselling complaints within three years of receiving their initial red warning letter. Standard says it is only fair that a customer acts within a reasonable time period.

Standard also says its life and pension restructuring has reduced staff numbers by 1,700 since November 2003.

Head of corporate communications Graeme McEwan says: “The changes announced will strengthen Standard Life&#39s position while balancing the interests of all policyholders.”


What&#39s the word on standards?

Is it me or has the standard of punctuation by mortgage companies gone to the dogs? We have been trying, since September to get Woolwich to put an apostrophe into applicant&#39s (as in the applicant&#39s existing mortgage) in their offer letter to a client for a remortgage. You would not believe the palaver this has […]

IFP chooses new president

Institute of Financial Planning vice president Ian Shipway is replacing Campbell Edgar as president of the IFP while Jane Wheeler is to be the IFP&#39s new vice president. John Porteous and Barry Horner are joining the IFP&#39s board.

Extinction claim at odds with reality

Contrary to Peter McGahan&#39s assertions in Money Marketing that supermarkets are exp-ensive and double charge, true fund supermarket platforms have been successful in the UK precisely because they do not layer double-charging on underlying funds. A further factor that has ensured that fund super-markets have enjoyed a rate of adoption by IFAs quite unprecedented in […]

Barclays Global Investors – i-Shares DJ Eurostoxx Mid Cap

Type: Exchange traded fund Aim: Growth by tracking the performance of the Dow Jones Eurostoxx Mid Cap Index Minimum investment: Subject to negotiation with a stockbroker Investment split: 100% tracking the performance of the DJ Eurostoxx Mid Cap Index Place of registration: Dublin Isa link: YesPep transfers: Yes Charges: Annual 0.4% Commission: None Tel: 020 […]


School fees planning

Jeremy Pearson is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. Many parents value the standard of education offered by […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm