View more on these topics

Standard slaps on 27% MVA

Standard Life is imposing a market value adjuster of up to 27 per cent on its with-profits funds to deter an exodus.

The move more than doubles the firm&#39s previous 10 per cent MVA imposed in September last year.

Standard says the rise was prompted by a marked increase in withdrawals following bonus cut announcements last week by rival insurers such as Britannic, Norwich Union and Scottish Widows.

The company says the move is aimed at protecting investors remaining in the funds.

The move also comes ahead of the company&#39s scheduled annual bonus declaration in February.

Group finance director John Hylands says: “We have recently seen a significant increase in surrenders. We have taken action now to protect the majority of customers who intend to stay fully invested.”

Holden Meehan director Amanda Davidson says: “You cannot have a situation where investors take profits on a short-term view. Standard needs to protect its book. Withdrawals need to be assessed on an individual basis and we are not putting people into with-profits as much as we used to.”

Recommended

Radical rethink to give public greater choice

Sweeping changes to the polarisation regime will end many restrictions on what business a firm can conduct.The FSA proposes removing the barriers to choice in draft regulations for the depolarised world, which could become a reality by the end of the year. Multi-ties are created, gap-filling is allowed, the better than best rule is scrapped […]

Comply with me

In the next year, all brokers will need to make key decisions about how to face up to the demands of regulation in 2004.Any sensible intermediary will give him or herself at least six months to bed down new systems and practices before regulation makes them compulsory. Decisions will need to be made this side […]

Twefs reborn as Children&#39s Mutual

Tunbridge Wells Equitable Friendly Society is changing its 122-year-old name as it relaunches itself as Children&#39s Mutual.Under the new brand, the society aims to provide support services and investment veh-icles for parents and IFAs to create portfolios for children.The move comes after consumer research showed more people claimed to recognise the then non-existent Children&#39s Mutual […]

Widows goes into gobbledegook to slash payouts

IFAs are accusing Scottish Widows of going against the spirit of the Raising Standards initiative with its “opaque” with-profits bonus declaration which sees many payouts cut by up to 22 per cent and others getting no terminal bonus.Widows, a front-runner in the ABI initiative which extols the virtues of plain English, has been attacked for […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com