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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.”

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