Standard Life is to send intermediaries the same information it sends policyholders concerning the a...
Standard Life is to send intermediaries the same information it sends policyholders concerning the attempt to demutualise the life office, writes James Thorneley.
This week voting policyholders and IFAs will receive letters containing notification of the vote.
In the next few weeks the mutual will issue booklets stating its reasons as to why the group should not be demutualised.
In addition Standard Life is to embark on an advertising campaign defending mutuality.
After this the mutual will send out forms for the vote which takes place on 27 June. The group said any intermediaries with questions about the demutualisation not covered in the documentation it sends out should contact their local sales representative.
So far the three traded endowment trusts run by Barclays Global Investors are publicly backing the demutual- isation campaign.
Despite the number of policies they hold, each trust will only be entitled to one vote.
The same rule applies to traded endowment trusts run by group's such as Dresdner RCM and Scottish Value. Each of these portfolios has around a 20% exposure to Standard Life policies. Of the five million customers the insurer has, only 2.3 million have voting rights which are limited to investors in the mutual's with-profits fund. For the vote to succeed 75% of those who vote must be in favour of turning the mutual into a listed company.
The demutualisation campaign led by Frank Woollard, claims with-profits policyholders will each receive around £6,000 but Standard Life claims the real figure is half that.
Anyone who purchased a with-profits policy after 10 February 2000, whether new or second hand, will not have voting rights. Standard Life said policyholders who do not have voting rights are unlikely to receive any windfalls if demutualisation goes ahead.
The group said this was because the windfalls would be compensation for the loss future of voting rights.
Achievements, charity work and other happy snippets
Appetite has suffered since Brexit vote
'Failure to pay attention can result in enforcement'
200,000 LISAs opened so far
From June 2019