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Sell Endowment, pay mortgage?

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Comments

  • dunstonh
    dunstonh Posts: 118,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I don't trust Standard Life any more. They have recently shafted a number of IFAs and we are the ones where they get their new business from. If they are happy to shaft us, when we generate their income, are they going to act the same towards policyholders?

    Ed is correct that the board have given suggestions that they will allow an exit strategy of the with profits fund. Such as free switches into unit linked funds. No doubt this would be coupled with a tie in period to prevent people switching from with profits to unit linked and then surrendering/transferring without penalty.
    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
    They have recently shafted a number of IFAs....

    Have they?Of course, this might be seen as a positive move from the investor/policyholder perspective, depending on the circumstances.........;)
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 118,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    EdInvestor wrote:
    Have they?Of course, this might be seen as a positive move from the investor/policyholder perspective, depending on the circumstances.........;)

    You may see the funny side of it and when i posted it, I knew that you would. However, if they are shafting the majority source of their new business, what is going to happen in the future for those that remain with Standard Life?

    We will have the mass withdrawal after demutualization, much reduced new business coming in leaving Standard Life unable to offer very competitive terms. Those remaining with Standard Life could find themselves in Pearl or NPI type situation. Zero bonuses and massive penalties to get out.
    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.
  • Of course Standard Life is doing very well at present with its SIPP - a billion pounds in new money into that product alone in a year, no wonder competitors are whingeing about the next misselling scandal ;) . Standard life Investments is also doing well with a lot of its funds now bringing in the money.It's also developing a big expansion in commercial property funds. The overseas stuff is all going well and I'd expect the bank to play a much bigger part in the business in future, with products like offset mortgages and equity release.

    As you've probably noticed Standard is lining up a number of new sales and distribution deals with banks, though it remains committed to the IFA channel so I wouldn't place too much credence on one or two incidents.IFAs still like their service I'm told.
    We will have the mass withdrawal after demutualization, much reduced new business coming in leaving Standard Life unable to offer very competitive terms. Those remaining with Standard Life could find themselves in Pearl or NPI type situation. Zero bonuses and massive penalties to get out.

    I don't believe that's what they have in mind.They don't want to lose old customers by having them depart, nor do they want to trap them in the old fund and milk them (where they will just yell and scream and make a lot of fuss as shareholders, thus alarming the City).

    Rather they want to migrate them through to new more modern products which will give a better result for the customers and from which the company will make better money. The new boss of UK life and pensions, Trevor Matthews, has I believe had many new ideas on this - he formerly ran two very successful DMs on this basis in Japan and Canada and comes from Aussie where they successfully phased out WP (and incidentally most misselling - can they be connected? ;) ) years ago.

    Don't forget this is the first ever DM since MVAs became the norm. People know all about this, they're not stupid. Believe me the matter has already been formally brought up with Sandy Crombie. We'll have to see what happens, but I'll be very surprised if they behave badly on this as they've said publicly they won't, and it's not in the interest of any of the stakeholders, present or future, to do it - including the directors.
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 118,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker

    no wonder competitors are whingeing about the next misselling scandal

    What on earth has mis-selling got to do with Standard Life and their Sipp? The concerns over non-regulated people using SIPPs is common sense and has nothing to do with SL. The current situation allows a builder, for example, to sell you a SIPP to put a property in it or a stamp dealer to put a stamp collection in (adverts have already stated both these examples). What pension knowledge does the stamp dealer have? And as its non-regulated, there will be no come back on the stamp dealer and no consumer protection that you would get from a traditional source.
    Standard Life is doing very well at present with its SIPP - a billion pounds in new money into that product alone in a year,

    Where did you get your figures from? As of 24th August 2005, It was reported that "The stand-out performance was from its self invested personal pension (SIPP) plan, which generated sales of £60m".

    its no surprise the Sipp has done well for them, Standard Life removed the sales incentive for its own reps from stakeholder and personal pensions. It only gave credit on the SIPPs, so guess what product they have been pushing. They were also first mainstream provider to the market. Wait until you see what the others have to offer and then the SL product wont look as good stacked up against them.
    Standard life Investments is also doing well with a lot of its funds now bringing in the money.It's also developing a big expansion in commercial property funds. The overseas stuff is all going well and I'd expect the bank to play a much bigger part in the business in future, with products like offset mortgages and equity release.

    Total group funds under management rose £9bn to £117bn and third party funds under management at its investment arm rose 22 per cent from £18.3bn to £22.3bn. So, with investment performance around 20%, they havent really had much of a net improvement at all have they?
    As you've probably noticed Standard is lining up a number of new sales and distribution deals with banks, though it remains committed to the IFA channel so I wouldn't place too much credence on one or two incidents.IFAs still like their service I'm told.

    Standard Life have a limited product range nowadays. They need the multi-tie because the IFAs have no reason to justify recommending most of its range. Multi-tied seems the best route for SL as multi-tied advisors do not need to recommend the best product/provider. SL's service has been going down the pan. They have closed the majority of their offices and put IFA support into a call centre. They have also got into bed with a number of occupational pension schemes where the consumer has no choice as its the employer/trustees that decide who to use. With low charges on these arrangements, that does seem at odds with their goals of not looking for market share but for profitability.
    I don't believe that's what they have in mind.They don't want to lose old customers by having them depart, nor do they want to trap them in the old fund and milk them (where they will just yell and scream and make a lot of fuss as shareholders, thus alarming the City).

    And all these insurance companies that have closed down because they cannot compete any more was really what they had in mind.

    he formerly ran two very successful DMs on this basis in Japan and Canada and comes from Aussie where they successfully phased out WP (and incidentally most misselling - can they be connected? ;) ) years ago.

    With Profits and mis-selling are not connected at all. Education and experience, or lack of in the past, in addition to insurance companies being run by the marketing department in the 80s and 90s would be the fault.
    Don't forget this is the first ever DM since MVAs became the norm.

    If it happens. You now have the SL board saying that its not a done deal and may not happen.

    No offence here Ed, but your post really does show your lack of knowledge and experience in these issues. You are totally relying upon sound bites and newspaper headlines and you are letting your bias towards SL sway your views.

    No-one can tell what will happen with Standard Life. They may pull it off but they may do an AMP (who destroyed Pearl, NPI and London Life). Especially if they are following the Australian example! Now is that a risk you want to take with your investments?
    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
    Originally posted by dunstonh
    DM is almost certainly going to happen in the next 12-18 months. Standard Life really need it to survive long term. They need the money. The board are pushing for it and the vote should take place very soon.
    You now have the SL board saying that its not a done deal and may not happen.
    No-one can tell what will happen with Standard Life.
    I don't trust Standard Life any more.


    #I don't think there's any particular reason to think you have any idea what's happening at Standard Life, is there?
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 118,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    #I don't think there's any particular reason to think you have any idea what's happening at Standard Life, is there?

    Correct. Standard Life seem to chop and change so frequently, how could anyone know?

    A few months back the board were saying they had to demutualize, now they are saying they dont need to and it may not happen.

    They are a company that appears to be running around like a headless chicken saying one thing one week and something different the next.
    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.
  • Hi all in response to selling an endowment policy I have 2 policies previously taken out with Legal & General. I have 7 years before the policies mature. I asked for a quote on the larger one £51K which was intended to pay off a mortgage - not needed now and was given a surrender value in October of £23,500. However, I am glad that I am part of this site because having read a number of replies to queries posted, I then sent my details to a couple of other companies who might be prepared to buy, one such company was recommended on the BBC (can't remember the name off-hand). Anyway I am hoping that I get a response as the policies are with-profits taken out in 1987. monthly repayment on one £82.70 and the other which I am not yet cashing in is £5.80 - Does anyone really know how much I could get on the open market so to speak?
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