Friends removes last remaining MVRs

clock

Friends Provident has removed all market value reductions (MVRs) from its with-profits policies.

The firm says continuing improvement in investment conditions have allowed it to make the adjustment. Many MVRs had already been removed when Friends made its bonus declaration in January. However, some pension polices sold before July 2001 were still facing a reduction in policy value. These MVRs have now been removed. MVRs are often implemented on with-profits policies in tough market conditions to prevent investors exiting with an unfair share of the fund's actual market value. Friends introduced MVRs in October 2008 when world stock markets crashed following the collapse of...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on With Profits

With-profit insurers embrace 'emerging' risk management solutions

With-profit insurers embrace 'emerging' risk management solutions

‘Emerging solutions can be transformational’

Ayesha Venkataraman
clock 08 February 2022 • 2 min read
Royal London policyholders back move to consolidate three closed with-profits funds

Royal London policyholders back move to consolidate three closed with-profits funds

Shift to Royal London Open Fund

Jenna Brown
clock 10 November 2021 • 1 min read

Bradbury Hamilton's long game sees profits surge 168%

Strong results are 20 years in the making

Nicola Brittain
clock 18 January 2016 • 1 min read