Transfer of part of the BlackRock Life Limited defined contribution pension business to Scottish Equitable plc.
What has happened?
In May 2016 Aegon announced a deal to acquire the majority of the BlackRock Life Limited (BLL) defined contribution (DC) pensions and platform administration business. The High Court of England and Wales and the Royal Court of Guernsey, approved the transfer of this business from BLL to Scottish Equitable plc on 21 June 2018 and 29 June 2018 respectively. In accordance with the terms of the Scheme, these policies transferred to Scottish Equitable plc on 1 July 2018 (transfer date).
A number of fund changes have been made in conjunction with the transfer. To find out more about fund name changes, funds which have been restructured and funds which will be restructured later in 2018 click here. These changes impact transferring BLL customers only.
Information on the transfer
An Independent Expert, Nick Dumbreck, partner of 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(Opens new window) 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 BLL and Scottish Equitable 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, associated fund changes and the consequences for their policies.
- The Summary of Independent Expert’s Conclusions provides an outline of the consequences of the transfer and associated fund changes for policyholders, and in particular for those transferring from BLL to Scottish Equitable. 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.
Both the Chief Actuary and With-Profits Actuary of Scottish Equitable have 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. There's also a Guernsey Scheme that sets out the terms of the transfer in Guernsey.
Information, including examples of the notification material sent to the transferring BlackRock customers, is available to view on the BlackRock website(Opens new window) (Aegon is not responsible for the content of external websites).