Eagle Star has apparently admitted to a financial adviser that the Market Value Reduction penalties on its with profits bonds were unclear. The company has apologised.
Eagle Star apparently confirmed that whilst it had mentioned MVA's could be applied in the policy documentation, correspondence with clients and advisers had not made it clear.
Our View
If you are thinking of taking withdrawals (income) from your investments or want to surrender them, always check what penalties will apply. With many investments there will be no penalties. With others, particularly with profits investments, penalties are likely at the moment.
If you are unsure, ask your adviser or the product provider to confirm it in writing for you.