Equitable increases exit penalty to 20% - papers 2nd July

Equitable Life further dismayed policyholders on Monday when it announced another increase in the exit penalty for customers wishing to leave the troubled UK life assurer early, as many of Tuesday's newspapers report. The Financial Times says Equitable blamed volatile stock markets for its decision to raise the penalty, known as the market value adjuster (MVA), to 20% from 14%. The move means policyholders wishing to leave early would have to forfeit a fifth of their pension fund. Equitable in April increased the exit penalty to 14% from 10%. Equitable said its decision was m...