What constitutes conditions for a Market Value Adjustment {MAV]

[Nenagh52]

Context, OH about to have a pension scheme managed by UNIO encashed.
Fund valuation has been received along with 6 options: No lump sum & monthly / lump sum & monthly etc.
UNIO has stated that the values in the options are indicative only and will only be fixed when she signs up for encashment and they go to market to execute.
They also reserve the right, in certain conditions, such as extreme investment conditions, to apply a MVA between the time she submits the paperwork, which is irrevocable, and encashment.
This would mean that she gets a lot less than expected, with no redress or oversight of what triggered the MAV.
.
Thanks in advance for any thoughts

 

[Fortune]

Is it a with profits or property funds?

 

[ClubMan]

What constitutes conditions for a Market Value Adjustment {MAV]​

The policy terms and conditions should answer this question.

 

[GSheehy]

They also reserve the right, in certain conditions, such as extreme investment conditions, to apply a MVA

This reads like it's a generic warning on all maturities. She's probably not in a with-profit fund anyway (?).

If she was at normal retirement age a MVA couldn't be applied.

This would mean that she gets a lot less than expected, with no redress or oversight of what triggered the MAV.

Not sure why you think she would have a right to redress or oversight on the terms and conditions spelled out in the contract, if an MVA did apply.

Broker/Advisor should have explained all this to her IFF it was going to be an issue at drawdown.


Gerard

www.prsa.ie