Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Equitable Life doubles distribution for with profits policyholders

Equitable Life doubles distribution for with profits policyholders

Equitable Life is to double the capital distribution for with profits policyholders to 25% and remove the 5% exit charge.

From 1 April, the distributions will be made to the society’s 345,000 in a move chairman Ian Brimecome dubbed a ‘momentous step’.

Brimecome added: ‘This is a further momentous step for the society. We consider the new capital distribution of 25% to be the best example of recreating policyholder value at the society for many years.’

Since April 2011 Equitable has paid a 12.5% capital distribution to its with profits investors and the 25% payout will apply to policy values as at 31 December 2013.

Equitable chief executive Chris Wiscarson (pictured) said: ‘Over the past decade, there have been many reasons for policyholders to the leave the society but one big reason to stay. This is it.’

Danny Cox, head of financial planning at Hargreaves Lansdown, added: ‘Policyholders who have stuck with the Equitable have finally been rewarded. Those who have felt trapped by poor returns and MVRs can now head for the exit with as much as 30% more in their pocket. Importantly, any right to compensation will be retained.

‘If nothing else, the 345,000 Equitable Life policyholders should take this opportunity to review their policies and check whether they remain suitable for their planning.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter