Page last updated 13/09/01
The following is the text of a Press Release issued on 12 September 2001 by Equitable Life.
Further information will be reproduced on this site as and when it becomes available.
Financial Adjustment for early surrenders
The Board of Equitable Life today announced that the financial adjustment applied to policies surrendered early has been raised from 7.5% to 10%. The new rate will apply to all non-contractual terminations of policies until further notice. The financial adjustment does not apply to contractual terminations such as where a policy is maturing or a policyholder is retiring and taking benefits.
Where the Society has already received a written instruction to surrender, the old 7.5% adjustment will be applied even though the payment has not yet been completed.
Charles Thomson, Chief Executive, said:
"World stock markets are unstable as a result of yesterday's tragedies. The UK stock market has fallen significantly since the financial adjustment was set at 7.5% in July. It is essential that those surrendering their policies do not take more than their fair share of the fund. We have therefore changed the financial adjustment to reflect the recent market falls."
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