Scottish Widows' decision to set up a link with the Association of Policy Market Makers' (APMM)...
Scottish Widows' decision to set up a link with the Association of Policy Market Makers' (APMM) website to help policyholders explore options before surrendering endowment policies has been branded 'appalling' by Baronworth Investment Services.
"The decision to link with the APMM severely restricts their policyholders' prospects of selling a policy let alone getting the best price. Without a shadow of a doubt this is not in the best interests of their policyholders," said Baronworth.
Baronworth argues there are approximately 20 Market Makers who buy policies but only eight are members of the Association and one of these is an Auctioneer. Enquiries sent to the APMM are forwarded to only three of its members, says Baronworth, one of whom could be the Auctioneer. In real terms, concludes Baronworth, at best a policyholder will have details of the policy sent to just three Market Makers (out of 20) or only two Market Makers if one of them happens to be the Auctioneer.
'Quite clearly, the chances of obtaining the best price for a policy is greatly reduced. It may even mean that the Market Makers who are approached may not make an offer at all,' reasons the group.
Baronworth's 'Trawling Service' claims to send details of policies to at least 16 Market Makers. There is also no charge for the service, which includes assisting the policyholder with the legal documentation involved in effecting the sale.
'Right thing to do'
£69m spent on upgrades
European fintech market 'underserved'