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 th...
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