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Talkback

Are life office cuts in with-profits bonus rates justified?

“I think they probably are. The bonus rates have got to reflect the overall performance so I would have expected them to be lower.” Gordon Walker, Sole trader

“Yes. With the investment returns we have seen in the last few years, I do not see how they could maintain bonus rates.” Colin Eyre Pygmalion Fund Managers

“Yes, I think they are probably justified. They are a prudent action given the downturn in market conditions.” Robert Hamer, Robert Hamer Financial Management

“No, certainly not for the top providers who have performed well over the long term.” Stuart Pedersen, Rush Witt & Wilson Mortgages Direct

“Yes. Given today&#39s climate of economic conditions, it makes sense to cut the bonus rates.”John Winship, Old School Financial Services

“Yes. Given the state of the market, I am not surprised they are making cuts so I would say they probably are justified.” Brian Passman, Directors Independent Financial Advisers

“Yes. This time, the markets have been down for the last couple of years. It was when they cut them in the past when the markets were on their way up that I had a problem with.” Andrew Forrest, Key Financial Services

“No, definitely not. They have reduced commission rates so they should be able to keep up their profit margin. They are all accumulating reserves to guard against any backlash from Equitable Life.” William Law, Law & CO Financial Services

yes 75%

no 25%

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