Troubled insurer, Equitable Life, has paid out £6.5m in compensation to 'with profits' bond policyholders who were not made aware of the exit penalties on their contracts when they invested.
Many bonds have standard early encashment penalties or loss of bonuses to offset low charges at the time of investment.
For Equitable Life, this is in addition to their standard market adjustment penalties that are currently being applied.
The compensation is being paid to those who were not aware of these additional penalties in the first five years of the investment.
Our view
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