Equitable moves on policy exodus

Equitable Life has acted to stem the flow of policyholders seeking a quick exit by introducing an exit charge of 20% of final bonuses. The group has dismissed suggestions of court action after an employer was reported to have accused the company of breach of contract for introducing the market value adjustment (MVA). Allistair Dunbar, Equitable Life spokesman, said the charge on the total fund is more likely to be 4% because the average investment would have built up many years of reversionary bonuses, which would not be affected by the 20% charge on the terminal bonus. Dunbar insisted...