Abbey cites FSA in move

fsa solvency requirements are behind increased MVRs on three with-profits funds, says Abbey

Abbey is blaming the FSA's tougher solvency requirements for its move to increase market value reductions on three of its with-profits funds. The life office announced last week it was increasing the market value reduction (MVR) on its Scottish Mutual, Scottish Provident and Abbey Life funds by 5%-10%. For Scottish Provident policyholders, the average MVR is now 25% compared with 15% previously, while for Scottish Mutual the average is now 20% compared with 15% previously. The group said this was to protect existing policyholders as it works out the effects that adhering to the FSA's ne...