Sandler rejigs with-profits

revised model proposes an end to company shareholders sharing in investment returns

A revised with-profits model, in which transparency is enhanced and company shareholders get no share of investment returns, has been proposed by Ron Sandler following his year-long review. Under the proposed model, which will have to be consulted on in the coming months by the FSA, Market Value Adjustments could only be applied in the event of a significant change in underlying asset values or when there are high levels of redemptions. The use of inherited estate, or orphan assets as they are commonly known, would be discontinued under the model. The new with-profits diversified invest...