Standard Life De-mutualisation

needmoney

dunstonh thanks very much for the reply, I see it is still a 'wait and see' situation. I really wish I'd never heard of them and done something better with my money and maybe not tied it up for ten years but I took the advice of my IFA and he took into acount that because of my age we would go for low risk.

scottishlizzie

Hi Guys,

Does anyone know when next year the DM vote is planned?

I have a client at the moment who has asked me to lodge a mis-selling complaint to SL. Unlikely to suceed as pre-FSA plans (sold by Halifax) and possibly time-barred but I am looking at every angle for her. Her plans are due to mature in October 2006. Her shortfall is £450 on a £1850 plan and £3500 on a £16660 plan. Both WP of course.

Someone earlier - DunstonH possibly - said something about some SL plans quoting a 4% return of less than the GMDB. From memory - can't get my notes out at the moment - I think I noticed this on one of the shortfall letters. I would welcome any comments on this.

As this lady's complaint is unlikely to succeed it would be nice to be able to soften the blow with the promise of a DM bonus.

Thanks.

EdInvestor

As you also say, it will probably largely depend on how well the management perform - and performing 'well' may be largely to the benefit of the shareholders rather than the policyholders!

I guess the big positive for the members of a mutual that DMs is that they are then both shareholders and policyholders at the same time - as long as they don't sell their shares, they can't lose.

EdInvestor

needmoney wrote:

I have quite a substantial amount tied up in WPB at Standard Life, taken out in Sept 2002. Sometime this year I will have to withdraw some money to subsidise my income. Am I to understand that they are definitely going to demutualise and we will all get something and if so how will my taking some money out affect this.

Hi needsmoney,

Yest they will DM next year, the vote should be in April at the same time as the AGM and the actual float in either June or September, depending oin how the stockmarket is performing at the time.

You can I believe (check with your adviser) take income out of around 3% of the value of your bond tax free and MVA penalty free per year. This would be the amount of the annual bonus more or less, so wouldn't deplete the windfall you would get on the original capital.

EdInvestor

Kantankrus_Mare wrote:

So will I likely be paid out on EACH of the policies I hold when they demutualise?

Yes. You should get one membership bonus (usually 500 quid) plus a variable bonus based on the value of both policies and the length of time you've held them.

The reason the policies are different is because Standard stopped selling the old conventional type at one point and started with the unitised type - don't worry, you haven't been sold a pup, most other companies did the same thing it was a modernisation of the WP system.

EdInvestor

Re who is eligible for a windfall, everyone who was a member of the WP fund before around Feb last year when they announced the DM, even if they signed a waiver when they joined, should be eligible.There are a few who miss out, and the one that comes up at all DMs is those who have an occupational (D/C) pension scheme with Standard Life.They don't get a windfall because the trustee of their scheme is the member. But if they are in a Group Personal Pension scheme (GPP) through their company then they are members and should get the payout.

Basically if you received voting papers for the recent AGM (and joined before early last year) you should be on the list - but it's not going to be absolutely firm till after the vote.

EdInvestor

scottishlizzie wrote:

Hi Guys,

Does anyone know when next year the DM vote is planned?
Her plans are due to mature in October 2006.

It's a bit touch and go.If all goes according to plan, vote will be in April 2006 and float in June or September according to market conditions.It's unlikely it will be delayed, but who's to know what will happen?

If Osama gets up to his tricks again, there could be a couple of months delay and then she's up the spout.

Does she have any TB left in either policy?

The question with these policies going to the wire is that the windfall will simply replace the disappearing TB over the next year or so (plus the premiums) and thus she would be better to go now.

The shortfall isn't really the concern.

scottishlizzie

For her the shortfall is the only issue but, as you imply, it is caused by the disappearing terminal bonus. The review letter contains a general statement that TB is being reduced and will be phased out by October 2006. Actually I think hers mature in November so the TB will have gone by then.

My personal view is that she should hold on to them for the possibility of a DM bonus. What do you mean by she would be better off going now?

margaret_3

Editor wrote:

It's a bit touch and go.If all goes according to plan, vote will be in April 2006 and float in June or September according to market conditions.It's unlikely it will be delayed, but who's to know what will happen?





Ooops! Editor.
My endowment mortgage matures in August 2006. Do I miss out?

Margaret

Compensationitis

You need to get your backside in gear scottishlizzie, if you flunk it your 'client' can sue you..