On 15 October, the High Court issued its ruling on the Government's plan for the compensation of Equitable Life policyholders. The judicial review took place following pressure from the Equitable Life Members Action Group (EMAG). The main points are:
More details of the terms of the compensation scheme will be known once he produces his final report.
The Parliamentary Ombudsman has now commented further and is highly critical of the Government's initial response that the former management of Equitable Life was primarily to blame for member losses.
The exchanges between the Government and the Parliamentary Ombudsman look set to continue for some time yet.
Visit the Equitable Life website for updates on how they manage with-profits funds and find their Annual Report.
Due to a reassessment of the assets held by the Sterling Fund at the beginning of this year, their value fell by around five per cent.
This resulted in members also suffering a five per cent drop in their personal investment in this fund.
The good news is that Standard Life agreed to restore the original value of the Sterling Fund, thereby putting investors back into the same position that they were in before the original announcement.
Standard Life recently made an alternative cash fund available which is a lower risk alternative to the Sterling Fund.
It offers preservation and liquidity as its priorities, which investment return as a secondary consideration.
As a result, returns on this fund may be lower than the Sterling Fund in the long term, but are expected to remain positive.
The Managed Cash Fund is available to all members as part of the AVC range.