We’ve answered here questions you may have about this change
We’d normally write to financial advisers about the fund suspensions, but because they’re unlikely to be working at their office at this time, we may not manage to contact them.
This letter will be sent to customers who are invested in any of the suspended funds.
No. No new payments (whether one off or regular payments) can be made into a fund while it is suspended.
Any money already invested in a suspended fund will remain invested there. Any new payments we receive after the date the fund was suspended will be held in the Retirement Account Control Account unless we’re asked to invest it in another fund. The interest rate we pay on money invested in the Control Account is currently 0%.
Choosing where to invest is a very important decision to make and we strongly recommend customers should speak to their financial adviser before making any investment decisions. Financial advisers will be able to change investments through our online services. Advisers will normally charge for any advice.
It won’t be possible to sell any units in a suspended fund until the suspension is lifted. We’ll contact the financial adviser and tell them we are unable to sell the fund holding. We will ask if they want to proceed. If they do, we will transfer out the value of the open funds. We will advise the receiving scheme that the additional funds will follow at a later date when the fund suspension is lifted.
If, however, the request is to transfer a Retirement Income (Drawdown) plan, we won’t be able to proceed with a partial transfer as legislation doesn’t allow this.
It won’t be possible to sell any units in a suspended fund until the suspension is lifted. We’ll contact the adviser and tell them we are unable to sell the fund holding and that we will have to wait until the suspension has been lifted. Annuity providers (including Scottish Widows) can’t accept additional small amounts where an annuity has already been purchased.
If you’re unsure about how any of these changes may affect your investments, we recommend that you speak to an independent adviser. If you don’t have an adviser you can find one at unbiased. Remember a financial adviser may charge for any advice they give.
You can find free and impartial money guidance from the government at www.moneyadviceservice.org.uk or by calling free:0800 138 7777
Monday to Friday from 8am to 8pm, and Saturday from 9am to 1pm.
It’s difficult to avoid jargon in financial services, so you may have come across some unfamiliar expressions. We’ve explained them here.