Advisers warn clients feel trapped by MVRs

Following the FSA’s warning that advisers need to review their approach to advising on with-profits, 68% of the advisers questioned said MVRs are the biggest barrier to clients who are considering transferring away from the funds. This was followed by a lack of understanding that other options are available (28%) and apathy (17%). Although guarantees and future bonuses are listed as some of the benefits of with-profits policies, only 11% and 8% of advisers suggested potentially losing these benefits would be a barrier to clients moving their money. Skandia says advisers need to tak...