With-profit penalties complicate Protected Rights transfers

Research conducted by Fidelity FundsNetwork found a third of people were keen to move their money from life insurance funds and into a SIPP following changes to the rules in October. A large proportion of the £100bn of protected rights money especially that held by older investors will be in with-profits; the funds were one of the main options when contracting out on a money purchase basis became effective from April 1988. However, following the recent market turmoil, insurers including Friends Provident and Norwich Union have introduced MVRs (market value reductions) on their with-prof...