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AIG - Pensions lost if they goi bust...

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  • cyclonebri1
    cyclonebri1 Posts: 12,827 Forumite
    But you're missing the point - are ring fenced unit link funds affected if the parent goes bust? Equally, are investors entitled...



    Wahey! You started the sentence with a capital letter. Do you have any punctuation for the end?



    Trying to eliminate poor grammar from the uneducated masses!

    T**t, (think that's how you spell it, capital included)
    I like the thanks button, but ,please, an I agree button.

    Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.;)

    Always expect the unexpected:eek:and then you won't be dissapointed
  • dunstonh
    dunstonh Posts: 119,653 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    EdInvestor wrote: »

    That relates to their pension annuities. Not unit linked pension plans.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    On the other hand, AIG investment bonds, allegedly guaranteed, might not be so safe.
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 119,653 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    EdInvestor wrote: »
    On the other hand, AIG investment bonds, allegedly guaranteed, might not be so safe.

    Investment bonds in unit linked funds have identical protection. The FSCS protection on with profits funds may be more attractive but it also identical except the conventional with profits funds would not be ring fenced in the same way unit linked funds are.

    However, the article you link to doesnt seem to be talking about investment bonds. I'm surprised you made such a novice error. Although given your blinkered views on these, perhaps I am not that surprised.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Wahey! You started the sentence with a capital letter. Do you have any punctuation for the end?

    i dont use punctuation and spell porly just to waste the time of people like this!

    i always get a slight kick whenever they step in to correct my erors.



    Besides, prescriptivists are doomed to failure! english will evolve weather they like it or not. innit! and their aint a fink they can do bout it :D


    *mistakes intentional ;)
  • SunnySusie wrote: »

    *mistakes intentional ;)

    eye tink youd fined it's spelt intentnal honie !:rotfl:
  • dunstonh wrote: »
    Investment bonds in unit linked funds have identical protection. The FSCS protection on with profits funds may be more attractive but it also identical except the conventional with profits funds would not be ring fenced in the same way unit linked funds are.

    Dunstonh

    My understanding is that the underlying investments in OEICS and the like are "protected" in as much as the title is held by a nominee company "on trust" for the investors. To cut to the chase ... that the insurance company does not own the assets in which the unit-linked are invested and that they are, therefore, protected. The administrator can't control them as the administrator is only appointed to take ownership of the company's assets - not those held by a nominee

    Interestingly ..... Lehman's asset management division/company is not in administration. Probably because it owns no assets and simply "manages" assets for the investors - with those assets held by the nominee :confused:

    Is that "about right" ?????? :confused:
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    fishy1ta wrote: »
    Don't panic, don't withdraw all your money, don't spread the panic, and AIG is less likely to go bust.

    Lifted from HPC:
    The two rules of panicking:

    1. Don't panic
    2. If you must panic, make sure you panic first
    poppy10
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    . To cut to the chase ... that the insurance company does not own the assets in which the unit-linked are invested and that they are, therefore, protected. The administrator can't control them as the administrator is only appointed to take ownership of the company's assets - not those held by a nominee
    [/quote]


    But to what level are they protected?For instance in a SIPP , the underlying investments held in a nominee account attract only the savings limit (ie 48k) not the uncapped pension limit, though a SIPP is undoubtedly a pension.

    What about a PP at say, Standard Life, which is invested partly in Standard Life With profits, partly in SL in-house pension funds and partly in external funds?

    Is DH sure the PAS is wrong>

    And why should a Guaranteed Income Bond at AIG ( a cash- like "investment" ) attract pension type protection?

    Some clarification would be useful.
    Trying to keep it simple...;)
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