View more on these topics

Swag casts doubt over Scottish Widows pension review

More trouble is brewing for Scottish Widows as the Scottish Widows Action Group questions the status of some of its phase one pension review cases.

The group says it has already discovered two cases which they claim could fail the misselling test if they were retested second time around.

It says Widows fall in bonus rates has lowered fund values and the clients may have been better off staying in their occupational schemes.

Actuaries believe there could be circumstances where cases fail second time around following the revision of bonuses, although they stress many factors need to be taken into consideration.

More than 150 policyholders are threatening to sue Widows accusing it of cutting bonuses more than necessary. Widows pension with-profits terminal bonus for 1998 plunged from 7 per cent to nil.

AKG Consulting operations director Nigel Balchin says: &#34If bonuses affect fund values and they go down that might bring into question whether they would pass a retest.&#34

Stevens, of Bristol based solicitors Richmonds, says: &#34The funds could fail the PIA test if these rates continue at the same levels. IFAs have sold the product on what they have been told by Widows. They cannot have expected bonus rates to fall as low as 1 per cent.&#34

Scottish Widows were unavailable for comment.


NUIF appoints managing director

Norwich Union has appointed Gerard Quirke as managing director for its investment funds division NUIF.Quirke was previously managing director, global services at Invesco. Following Invesco acquisition of LGT Asset Management Quirke co-ordinated the European integration of two groups.Prior to LGT he was finance director at Framlington.NU&#39s chief executive Philip Scott says: &#34Gerard has a proven […]

National Savings increases fixed interest rates

National Savings has increased the interest rates on three of its fixed rate savings products.The move has been triggered by upward movement in medium term money market rates.The interest rate on the five year Pensioners Bonds and Capital Bonds is increased to 5.15 per cent gross from 4.85 per cent gross. While the tax free […]

Abbey National to launch stakeholder friendly scheme

Abbey National is planning to launch a stakeholder friendly pension this week according to a report in the Financial Times today.The FT says the plan will have a 1 per cent annual management charge, which is in line with Government recommendations. But its likely to have an initial charge of between 2 and 5 per […]

IFAs hit back at OFT

Outraged IFAs have hit back at the Office of Fair Trading director general John Bridgeman over accusations in a radio interview that they are already multi-tied.In an interview on BBC Radio 4&#39s Inside Money, Bridgeman questioned the independence of IFAs.He also claimed his much-delayed report on polarisation did not recommend a third category of adviser […]


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