Ancient Order of Foresters - MVR applied to a NISA 15 November 2022

AJ1001

The above company says my NISA is worth £20,700 but their MVR which was applied on 15 November 2022 has stated on withdrawal it will only pay £18,800. This is still in place despite considerable changes in the market place. How can they state that my NISA is "worth" £20,700 when I can only withdraw £18K? The Finacial Ombudsman Service wouldn't uphold my complaint because the Fact Sheet for the NISA stated an MVR might be applied. But for how long? Is there any limit to this? I made a further complaint in 2024 but the Ombudsman still referred me back to their original decision. The FCA won't do anything either. Any ideas?

dunstonh

This is still in place despite considerable changes in the market place.

What market place are you referring to?      
What changes are you referring to?

How can they state that my NISA is "worth" £20,700 when I can only withdraw £18K?

Because that is how old fashioned WP funds work.  you will get the higher value in some scenarios.

The Finacial Ombudsman Service wouldn't uphold my complaint because the Fact Sheet for the NISA stated an MVR might be applied.

Going to the FOS was a waste of time and resources. There is no wrongdoing.

. But for how long? Is there any limit to this?

There is no limit.  It is based on the underlying asset values of the fund and you would expect a WP fund to have an MVR at this time if you invested in the short term.

I made a further complaint in 2024 but the Ombudsman still referred me back to their original decision. 

Saying the same thing multiple times isn't going to change the outcome.

The FCA won't do anything either. 

Why would they need to do anything?

Any ideas?

Accept the loss or wait.

There is no wrongdoing and nothing unusual.   You used a niche provider using an investment method that suits their old name.   The investments are heavy in gilts and fixed interest securities.   They have had their worst performance in over 100 years (gilts are still down 26% over 3 years, index linked gilts down 35%, corp bonds down 18%, global bonds down 13%).

Eyeful

1. Did you read all the paper work they sent you before signing up?
2. Did you understand the terms you where signing up to?   
3. How long will they apply the MVR?
(a) read through the terms they sent you to see if they mention when it will be applied & removed.
(b) phone & ask them.
 
 Once got something similar in the post (might even have been them).
Looked through the paperwork, saw it was some form of insurance investment scheme, the charges that I would have to pay & that a MVR might be applied, It went into the binned.

4 What attracted you to this scheme?

masonic

AJ1001 said:

But for how long? Is there any limit to this? Any ideas?

The MVR is only relevant if you need the money. If you needed the money in the short term, it was probably unwise to commit it to a product like this. Your choices are to remain invested or take the hit if you must access the funds. It will take a several years for the income from fixed interest assets to replenish the losses suffered when interest rates were hiked. If it makes you feel any better, investing in modern investments at this level of risk would have led to a similar loss of capital.