Customer information
During April 2022, the following information is being sent to customers who took their policy out in Ireland.
Letters which highlight the key points about the proposed transfer:
Here’s some additional information that you may find helpful.
A report prepared by an Independent Person, Philip Simpson, who is a Principal (a senior qualified actuary) at Milliman LLP, which details his review of the proposed transfer and his opinion on whether any group of policyholders are materially adversely affected.
We’ve informed the CBI of his appointment, which has also been approved by the PRA in consultation with the FCA.
Report from the Independent Person – [insert date]
Information relating to transferring with-profits policies
If the Scheme goes ahead, with-profits policies that were sold in Ireland and are within four of the with-profits funds of Phoenix will transfer to new with-profits funds, which will be set up in PLAE.
To minimise the impact on customers, PLAE will enter into a reinsurance arrangement with Phoenix and will transfer the economic responsibility for the policies back to Phoenix. So whilst PLAE will be the policy provider, as a result of this reinsurance the transferring with-profits policies will continue to invest in the same with-profits fund in Phoenix as they do now.
The with-profits funds in Phoenix will continue to be managed in accordance with the Phoenix Principles and Practices of Financial Management (PPFM) which describes how the with-profits funds are managed. The PPFM will be updated to take account of the transfer and reinsurance arrangement. We have prepared a draft of the updated PPFM.
Following the transfer, and in line with current regulation, the Phoenix Board will continue to be responsible for the general management of the Phoenix with-profits funds.
The Phoenix With-Profits and SPI With-Profits Fund Supervisory Committee (WPC) will oversee decisions made by the Phoenix Board in relation to its management of the Phoenix with-profits funds and will also be responsible for determining investment and bonus policy for the SPI WPF With-Profit Fund. The Terms of Reference of the committee will be updated to take account of the reinsured in business from PLAE.
According to the law, approval from the High Court is required for us to transfer your policy. In this case we must apply to the High Court of England and Wales (in relation to all of the transferring policies, including the Irish policies) and the High Court of Ireland (in relation to the transfer of our Irish policies).
The transfer will not happen unless each High Court approves it. Both High Courts will need to be satisfied that the proposals meet all the necessary legal requirements and will have no material adverse effect on policyholders. The Courts will only approve the transfer if it is appropriate to do so.
The court hearings are expected to take place on the following dates:
High Court of England and Wales on [30 June 2022]
High Court of Ireland on [14 July 2022]
27. What is the court process?
According to the law, approval from the High Court is required for us to transfer your policy. In this case we must apply to the High Court of England and Wales (in relation to all of the transferring policies, including the Irish policies) and the High Court of Ireland (in relation to the transfer of our Irish policies).
The transfer will not happen unless each High Court approves it. Both High Courts will need to be satisfied that the proposals meet all the necessary legal requirements and will have no material adverse effect on policyholders. The Courts will only approve the transfer if it is appropriate to do so.
The court hearings are expected to take place on the following dates:
High Court of England and Wales on [30 June 2022]
High Court of Ireland on [14 July 2022]