Royal London United Assurance Property 1 and Royal London United Assurance Property Pensions 1 update

Restrictions to our Royal London United Assurance Property 1 and Royal London United Assurance Property Pensions 1 funds

We’ve made the decision to restrict some transactions from these funds, effective from Monday 30 March 2020 for both our Royal London United Assurance Property 1 and our Royal London United Assurance Property Pensions 1 funds.

This decision has been made in the long term interests of our customers as a whole and we’ll continue to closely monitor our funds and provide updates throughout this restricted period.

If any of your transactions are affected by these restrictions then we will have contacted you to confirm this.

Please find below a list of questions and answers on the restrictions to these funds. If you have further questions please visit our contact us page.

Some transactions which involve these funds will be delayed for a period of up to six months. This delay does not apply to all transactions, see below for details.

We’ve seen increasing uncertainty related to the valuation of property fund assets due to the impact of the Covid-19 virus. This has caused a number of Property funds across the industry to suspend dealing. Our property surveyors have confirmed that going forward their valuations will include a material uncertainty clause. This, combined with reduced transactions in the market, means there is an increase in the likelihood of unfair outcomes to customers and has led to our decision to suspend these funds for direct investment. Throughout this period our focus is on ensuring the best possible customer outcomes, keeping these in line with both customer expectations and fairness across customers in different situations.

We’ll remove the restrictions when confidence returns to the market and there’s more certainty regarding the valuations of property. These restrictions will only continue for as long as they’re in the best interest of our customers.

Any new withdrawal transaction that is impacted by the restriction will be delayed for up to six months from the date the request is received.

You’ll be affected if you’re invested in our Royal London United Assurance Property 1 fund and you are:

  • Switching in or out of the Property fund during this restricted period
  • Surrendering all or part of your policy if you are only invested in the Property fund
  • Setting up a new or increasing a regular withdrawal if invested in the Property fund
  • Any regular contribution instruction which is currently allocated to Royal London United Assurance Property 1 fund will instead be allocated to the Royal London United Assurance Money 1 fund unless we receive alternative instructions

Or if you’re invested in our Royal London United Assurance Property Pension 1 fund, you’ll be affected if you are:

  • Switching in or out of the Property Pension fund during this restricted period
  • Transferring all or part of your policy if you are only invested in the Property Pension fund
  • Any regular contribution instruction which is currently allocated to Royal London United Assurance Property Pension 1 fund will instead be allocated to the Royal London United Assurance Money Pension 1 fund unless we receive alternative instructions

Withdrawal transactions will be made at the earliest of:

  • After six months – any new withdrawals requested will be delayed for up to six months from the date the request is received
  • The end of the reinstatement period (if less than six months)

The following payments and transactions will continue to be made from our Royal London United Assurance Property 1 fund:

  • Any claims where you are either not invested in the Property fund or are invested in a number of funds including the Property fund
  • Maturity claims, regardless of whether you are invested in the Property fund
  • Death claims, regardless of whether you are invested in the Property fund
  • Existing regular withdrawals

 

And the following payments and transactions will continue to be made from our Royal London United Assurance Property Pension 1 fund:

  • Any claims where you are either not invested in the Property Pension fund or are invested in a number of funds including the Property Pension fund
  • Retirement claims, whether this is before or after your chosen pension date, regardless of whether you are invested in the Property Pension fund
  • Death claims, regardless of whether you are invested in the Property Pension fund

  • Choose not to proceed with the transaction
  • Choose to disinvest from the Property fund at the end of the 6 months

The worldwide spread of Covid-19 has created exceptional circumstances in global markets, UK property included. You will continue to see an indicative price and unit value included in your annual statements and online. The impact on your fund value will depend on how much of your savings you have invested in our property fund. Delaying some transactions from the property fund will help to protect the long term interests of our customers. If you have concerns about what the impact could be for you and you’d like advice on what actions you should or shouldn’t take, we recommend that you seek professional advice. You can find a financial adviser near you at unbiased.co.uk. Advisers charge for their services so make sure you confirm how much it’ll cost beforehand.

When this restricted period has ended we’ll process your transaction.

We’ll automatically process any transaction which has been delayed and hasn’t been processed by the end of the six months period.

Updates will be posted on the website.

Yes, the policy Terms and Conditions allow Royal London to defer a transaction in the Property fund for up to six months.

Yes, they are both fully aware of our plans and are supportive of Royal London’s approach.

We continue to monitor the impact of current market conditions on all the investment options we offer. If we are ever in the position of restricting transactions from any other funds, we’ll communicate this as soon as possible after such a decision has been made.

Complaints can be made to Royal London or an Ombudsman following our complaint process. To help us deal with your concerns, please mark your complaint ‘Fund Deferral’.

If after reading the information provided above, you still have unanswered queries then please get in touch. You can do this by visiting the contact us page.