Promises, not Promises

clock

Standard Life has continued its path towards a potential stock market floatation by announcing further cost cuts involving bonuses, endowment payments and complaint time-bars.

The company is writing to 600,000 customers telling them it will cease paying out the full amount on guaranteed mortgage endowments after 31 December, 2005. A pot worth £393m has been set aside to cover 100% payouts until that date, affecting some 36,000 policyholders, according to company figures. That leaves some 564,000 policyholders who could see the so-called “Promise” on their endowment slashed to just 40% to 60% of previous expectations. Splitting the £393m exactly between the total number affected is not easily done, Standard Life says, because of factors such as early leav...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Intergenerational transfers: 1.2 million older clients predict children will change advisers

Intergenerational transfers: 1.2 million older clients predict children will change advisers

‘Firms cannot afford to be complacent about the threat of intergenerational transfers’

Isabel Baxter
clock 18 September 2025 • 2 min read
PFS reports pre-tax loss of £660,000 for 2024 as membership falls

PFS reports pre-tax loss of £660,000 for 2024 as membership falls

Total benefit recharge to CII in 2024 was £6.96m

Jenna Brown
clock 18 September 2025 • 3 min read
Consolidation: Does big equal bad in the advice sector?

Consolidation: Does big equal bad in the advice sector?

'Integrations take time and effort on all sides'

Anthony Carty
clock 17 September 2025 • 4 min read