Transfer of Contract Based Business
Transfer of bundled group pension business to Scottish Friendly
What has happened?
In November 2017, Mobius Life signed a transfer agreement to sell its bundled group pension business to Scottish Friendly Assurance Society (Scottish Friendly). Subject to final court and regulatory approval, in accordance with the terms of the Scheme, these policies will be transferred to Scottish Friendly on 9 November 2018 (transfer date).
Information on the transfer
An Independent Expert, Philip Simpson, principal at Milliman LLP, was appointed and approved by the Prudential Regulatory Authority to report on the effects of the transfer on policyholders. This includes the financial security of the legal entities involved and changes to the management and servicing of the transferring policies. The Independent Expert provides his conclusions in the Independent Expert’s Report which was considered by the Court prior to agreeing the transfer.
A Part VII transfer is the legal process to transfer insurance business from one company to another. The transfer can only take place with the approval of the Courts. The Courts will receive reports from the UK financial services regulators, the Prudential Regulatory Authority and the Financial Conduct Authority, and an Independent Expert.
The Independent Expert has prepared four documents:
- The Full report has details of the effects of the transfer on both Mobius Life and Scottish Friendly policyholders and how each conclusion has been reached. It has been prepared primarily for the benefit of the Court. There is a supplementary report also available for review.
- The Summary of the report provides an overview of the transfer and sets out the Independent Expert’s conclusions on the effect of the transfer on policyholders. It's been created to give policyholders a good understanding of the terms of the scheme and the consequences for their policies.
- The Summary of Independent Expert’s Conclusions provides an outline of the consequences of the transfer for policyholders, and in particular for those transferring from Mobius Life to Scottish Friendly. The language used is less technical than that in the fuller versions. It is expected that a high proportion of policyholders will rely solely on this document in considering the transfer.
You can find the Independents Expert’s full report, summary of the report, summary of conclusions and the supplementary report in the ‘Important Documents’ section below.
The Chief Actuary of Mobius Life has also prepared reports on the effect of the transfer and their reports are included in the ‘Important documents’ section below.
The Scheme Document is the legal document that sets out the terms of the transfer in the UK. You can find a copy of the Full Scheme and a Summary of the Scheme in the ‘Important Documents’ section below.
- Independent Experts Report (PDF)
- Supplementary Independent Experts Report (PDF)
- Independent Experts Summary Report (PDF)
- Independent Experts Summary of Conclusions (PDF)
- Scheme Document (PDF) (Updated June 2018)
- Summary of Scheme Document (PDF) (Updated June 2018)
- Chief Actuary Report (PDF)
- Legal notice (PDF)
- Post transfer legal notice (PDF)
If you wish to contact us in relation to this Part VII,
For transferring members:
Call: (UK) 0800 028 0339, (Outside UK) +44 (0) 1733 355 828
For non-transferring members:
Call: 0207 847 0000