By Leo Bland Legal & General is to launch a with-profits fund, which will comply with the onerous co...
By Leo Bland Legal & General is to launch a with-profits fund, which will comply with the onerous conditions for stakeholder. Under the final stakeholder regulations, in order to provide a with-profits option a life office must launch a new fund so the assets are kept separate from existing with-profits funds. The with-profits option has been rejected by other life offices as it is seen as not commercially viable due to the large amount of capital needed to set up a new with-profits fund. The costs of providing guaranteed returns in a new fund would likely exceed the 1% cap, according ...
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