Scottish Widows has cut its with-profits bonus rates, with investors in its life funds products seei...
Scottish Widows has cut its with-profits bonus rates, with investors in its life funds products seeing a fall in the value of annual bonus rates of 33%, from 4.5% to 3%.
Pension fund bonus rates will fall by 20% to 4%. The Flexible Investment bond return will drop to 4% from 4.5% and the International Investment bond will fall from 5% to 4.5%.
David Carrington, sales and marketing director at traded endowment policy (Tep) market makers PolicyPlus International, said recent changes to the company's constitution contributed to the size of the cuts.
He added: 'The company now has to pay a proportion of investment returns to shareholders and this will cause bonuses to drop. This has combined with bad investment returns but I don't think other providers will see the same level of decrease.'
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November