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    • dunstonh
    • By dunstonh 28th Mar 14, 3:49 PM
    • 98,597 Posts
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    dunstonh
    • #2
    • 28th Mar 14, 3:49 PM
    • #2
    • 28th Mar 14, 3:49 PM
    The FCA has since backtracked on its earlier release to down play the significance of this review. It is now saying:
    "We are not planning to individually review 30 million policies, nor do we intend to look at removing exit fees from those policies providing they were compliant at the time,' it said. 'This is not a review of the sales practices for these legacy customers and we are not looking at applying current standards retrospectively – for example on exit charges.'"

    So, it now just seems to be a check on whether firms are applying the terms correctly on legacy products from before 2000.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • paul5046
    • #3
    • 28th Mar 14, 5:41 PM
    • #3
    • 28th Mar 14, 5:41 PM
    It's a shame that all you ever hear is negative news about pensions, when it is the only product where you get tax relief.
    Between politicians and the industry they have made a right mess of things.
    • Linton
    • By Linton 28th Mar 14, 6:10 PM
    • 10,727 Posts
    • 11,099 Thanks
    Linton
    • #4
    • 28th Mar 14, 6:10 PM
    • #4
    • 28th Mar 14, 6:10 PM
    It's a shame that all you ever hear is negative news about pensions, when it is the only product where you get tax relief.
    Between politicians and the industry they have made a right mess of things.
    Originally posted by paul5046
    Lies and sensationalism from the media doesnt help. Pity they arent subject to the same liability rules as IFAs.
    • zagfles
    • By zagfles 28th Mar 14, 6:46 PM
    • 14,166 Posts
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    zagfles
    • #5
    • 28th Mar 14, 6:46 PM
    • #5
    • 28th Mar 14, 6:46 PM
    Well it seems to have hammered insurance company shares

    http://www.bbc.co.uk/news/business-11899862
  • Renoir77
    • #6
    • 29th Mar 14, 4:17 PM
    • #6
    • 29th Mar 14, 4:17 PM
    I certainly hope it may help me......

    Last summer the FSA agreed that an Option 32 policy had been mis-sold to me in the 80's but could not take it any further because the agent was no longer in business. So after 6 months delay in claiming (whilst it was under query) I had no option but to claim it. I am now locked into a final pension pot of just under £10,000 paying me less than £9 pw. The forecast was £48 pw !

    I for one would like to have the chance to see if I could do better....but as it seems they may only be checking and not doing but I can live in hope
    Last edited by Renoir77; 29-03-2014 at 4:21 PM. Reason: addition
    • dunstonh
    • By dunstonh 29th Mar 14, 4:58 PM
    • 98,597 Posts
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    dunstonh
    • #7
    • 29th Mar 14, 4:58 PM
    • #7
    • 29th Mar 14, 4:58 PM
    So after 6 months delay in claiming (whilst it was under query) I had no option but to claim it. I am now locked into a final pension pot of just under £10,000 paying me less than £9 pw. The forecast was £48 pw !
    That wasnt your only option.

    I for one would like to have the chance to see if I could do better
    You wont. The FCA review does not apply to you.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • 50Twuncle
    • By 50Twuncle 30th Mar 14, 3:18 PM
    • 9,281 Posts
    • 2,368 Thanks
    50Twuncle
    • #8
    • 30th Mar 14, 3:18 PM
    • #8
    • 30th Mar 14, 3:18 PM
    Will this look at my 1987 bought (with profits) endowment policy bought through the Woolwich - despite interest rates of more than 20% - this policy failed to make a penny over the 20 years that it ran for - I eventually cashed it in to pay off the remaining mortgage....


    I did receive approx £8,000 compensation for a missold policy from Barclays (in 2004 ish) but feel that this sum is nowhere near the amount that Sun Alliance (bought out by Phoenix) made on my policy
    I was told at the time of opening the policy that I was guaranteed to cover my loan (£30k) plus at least the same again !!
    But when sold (to Phoenix - nobody else would touch it) in 2008 - I got back just £19,000 - due to early cashing in (4 years early) - I had been paying approx £70 per month in to it and decided to stop throwing my money away...
    Last edited by 50Twuncle; 30-03-2014 at 3:25 PM.
    • dunstonh
    • By dunstonh 30th Mar 14, 3:55 PM
    • 98,597 Posts
    • 66,991 Thanks
    dunstonh
    • #9
    • 30th Mar 14, 3:55 PM
    • #9
    • 30th Mar 14, 3:55 PM
    Will this look at my 1987 bought (with profits) endowment policy bought through the Woolwich - despite interest rates of more than 20% - this policy failed to make a penny over the 20 years that it ran for - I eventually cashed it in to pay off the remaining mortgage....
    It is not looking at specific policies. The article in the thread was based on a incorrectly released bit of information that the FCA have since backtracked on and installed a legal team to investigate how it was released.

    What are these 20% interest rates that you refer to?

    I did receive approx £8,000 compensation for a missold policy from Barclays (in 2004 ish) but feel that this sum is nowhere near the amount that Sun Alliance (bought out by Phoenix) made on my policy
    That isnt your problem. You got your redress payment and that was based on mortgage interest rates which are typically higher than savings interest rates.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • zagfles
    • By zagfles 30th Mar 14, 4:28 PM
    • 14,166 Posts
    • 12,298 Thanks
    zagfles
    Will this look at my 1987 bought (with profits) endowment policy bought through the Woolwich - despite interest rates of more than 20% - this policy failed to make a penny over the 20 years that it ran for - I eventually cashed it in to pay off the remaining mortgage....


    I did receive approx £8,000 compensation for a missold policy from Barclays (in 2004 ish) but feel that this sum is nowhere near the amount that Sun Alliance (bought out by Phoenix) made on my policy
    I was told at the time of opening the policy that I was guaranteed to cover my loan (£30k) plus at least the same again !!
    Originally posted by 50Twuncle
    Typical of the lies told at the time.

    But it looks like this review is about existing policies rather than ones cashed in, but it's not totally clear. For endowment mis-selling see http://www.moneysavingexpert.com/reclaim/endowments-miss-sold
    • Linton
    • By Linton 30th Mar 14, 4:43 PM
    • 10,727 Posts
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    Linton
    Typical of the lies told at the time.
    Originally posted by zagfles
    I doubt very much it was a lie. Rather a projection based on what looked reasonable at the time. Rates of return are very much lower now than they were 30 years ago.

    With one of my company pensions taken out in the 1980s the pension company guaranteed an annual investment return of 8.5%, a guarantee that my colleagues regarded as ridiculously small. So an inability to foresee the future hit both the companies and their customers.
    • zagfles
    • By zagfles 30th Mar 14, 5:17 PM
    • 14,166 Posts
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    zagfles
    I doubt very much it was a lie. Rather a projection based on what looked reasonable at the time. Rates of return are very much lower now than they were 30 years ago.
    Originally posted by Linton
    If they said it was guaranteed, then it was a lie. Period. I was told similar lies when I was looking round for my first mortgage, luckily for me I knew they were lies and wouldn't touch an endowment with a barge pole. They were a rubbish, inflexible, high charge product and were only sold in such large quantities because they generated large commission to those who sold them.
    With one of my company pensions taken out in the 1980s the pension company guaranteed an annual investment return of 8.5%, a guarantee that my colleagues regarded as ridiculously small. So an inability to foresee the future hit both the companies and their customers.
    You don't need to forsee the future to understand the difference between a guarantee and a projection based on past performance.
    Last edited by zagfles; 30-03-2014 at 5:19 PM.
    • Linton
    • By Linton 30th Mar 14, 5:40 PM
    • 10,727 Posts
    • 11,099 Thanks
    Linton
    If they said it was guaranteed, then it was a lie. Period. I was told similar lies when I was looking round for my first mortgage, luckily for me I knew they were lies and wouldn't touch an endowment with a barge pole. They were a rubbish, inflexible, high charge product and were only sold in such large quantities because they generated large commission to those who sold them.
    You don't need to forsee the future to understand the difference between a guarantee and a projection based on past performance.
    Originally posted by zagfles
    Were you really told "guarantee". That is an important word. It would be surprising if they used it. But if they did and you have evidence......
    • bigadaj
    • By bigadaj 30th Mar 14, 5:56 PM
    • 10,828 Posts
    • 7,162 Thanks
    bigadaj
    Were you really told "guarantee". That is an important word. It would be surprising if they used it. But if they did and you have evidence......
    Originally posted by Linton
    I wouldn't be at all surprised that he was told it was guaranteed, they were probably more careful in the literature that was produced.
    • zagfles
    • By zagfles 30th Mar 14, 6:28 PM
    • 14,166 Posts
    • 12,298 Thanks
    zagfles
    Were you really told "guarantee". That is an important word. It would be surprising if they used it. But if they did and you have evidence......
    Originally posted by Linton
    Words to that effect. Eg "it'll definitely be enough to pay off the mortgage with some over" etc. I don't have any evidence because I didn't record the conversations, I wasn't taken in by their lies so didn't see the need. In those days it was quite hard to buy a repayment mortgage without banks/building societies/brokers treating you like an idiot because you didn't want their wonderful endowments
    • Pincher
    • By Pincher 31st Mar 14, 10:07 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    Money Section, Sunday Times 30th March 2014, page 1

    "Cox cites an Allied Dunbar personal pension taken out in 1994, worth £3,399. When the customer wanted to transfer he was offered a pot of just £1,231, indicating a 64% exit penalty."

    Allied Dunbar said: "Where the client took out a pension with advice and paid into for only a short period, then the exit charge for leaving ahead of the expected retirement date could be higher to reflect recovery of those costs."

    Just the same old zombie fund horror stories.

    They stole the money in 1994, to pay the pimp who sold you the dud, to pay for champagne and loose women for themselves. If you have the temerity to ask for your money back, they make any excuse to not pay you: because the money's gone.
    • Pincher
    • By Pincher 31st Mar 14, 11:06 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    Were you really told "guarantee". That is an important word. It would be surprising if they used it. But if they did and you have evidence......
    Originally posted by Linton
    Equitable Life "guaranteed" annuity rates. Bad word to use indeed.

    Met somebody who retired in 1993 with an annuity from Equitable Life last year. Lucky !!!!!!!. He probably got 15% (£15k a year for a pot worth £100k), with BOE at 13% in 1993. No need for a guarantee at all.
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