Standard Life has announced that it is withdrawing its endowment savings plan. This plan is not its mortgage endowment plan but a life insurance savings vehicle. No new quotes are now being issued and the new applications in the pipeline should have been completed and issued by June 17. In addition, no new increases will be accepted for existing plans.
Our view
Advisers and the general public are more aware now of both problems with endowments as well as with profits. This move probably reflects the move away from endowments as well potentially,
Standard Life positioning itself for any potential de-mutualisation. This savings plan was also one of the ideal routes for investors to put them in a "carpet bagging" position. Was this the hidden reason behind the move?
We predict more news from Standard later in the year on de-mutualisation.
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