IFAs have been urging clients to take hits of up to 21% simply in order to join a growing stampede out of Scottish Mutual's with profits fund, writes The Scotsman.
The fund is due to report figures in two weeks’ time, but IFAs who have “got wind of the announcement” have already been referring to it as “Equitable Life mark two”, the paper says.
About half Abbey’s 97,000 with profits policyholders have guarantees, the paper adds, meaning IFAs are getting concerned a rush out of the fund could leave it without enough money to cover those guarantees.
The Scotsman quotes “a senior manager at a UK-based investment firm” as stating his firm has heard Scot Mut is about to start writing to some policyholders advising them that wrong calculations mean the fund must adjust the value of their savings.
"I have heard this from more than one source and we have seen a flow of money out of Scottish Mutual and into ourselves as a result," the paper quotes the un-named manager.
The fund closed to new business in December 2002, stopped paying bonuses in March 2003, and has received more than £1bn in contingency loans from parent Abbey over the past three years, the paper says.
THE WAR OVER Marks & Spencer just keeps getting hotter and hotter after the latest revelations Stuart Rose’ mobile phone calls could have been tapped, reports the FT.
MmO2 has admitted Rose’ phone records were accessed by “a third party”, with inferences that the meddling may not have stopped there.
Meanwhile a statement from predator Philip Green says he will walk away from a deal unless M&S shareholders can put pressure on the company’s board to start serious discussions with his bidding vehicle within the month, The Times says.
The Daily Telegraph adds Green’s pressure may be nothing compared to the FSA’s pressure on both men and companies involved over possible insider dealing in M&S shares.
Both men were hauled into Canary Wharf for separate two-hour meetings with investigators yesterday.
The Telegraph again notes two of the biggest private detective companies used by corporate clients in the UK have already told M&S they cannot work for the company because of a conflict of interest, suggesting they may already be in the employ of Green’s bidding vehicle.IFAonline
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