MGM places MVAs onto surrenders and switches

MGM Assurance has put MVAs on any surrender or switch from its unitised with-profits products. The MVAs, which do not apply to surrenders under £10,000 or to income taken at a level of 7.5% or less, apply to the group's life and pensions Bonus Growth fund and With Profits Bonds series 1 to 5. The level of the MVA applied is related to the length the policy has been in existence. Policies taken out in the past 12 months will have an MVA of 6%, those between one year and three years will have an MVA of 14%, while those in existence for longer have an MVA of 6%. Neil Walker, chief opera...