Your Aegon Master Trust pension savings are held by the trustees within an investment-linked insurance policy (the “policy”) provided by Aegon (Scottish Equitable plc). The policy gives members access to a range of external investment funds. If Aegon fails then the Financial Services Compensation Scheme (FSCS) would compensate the Trustees up to 100% of the Aegon Master Trust’s losses.

Before July 2018, the policy was provided by BlackRock Life Limited (“BLL”). Following a court approved transfer, Aegon replaced BLL as provider of the policy in July 2018. BLL was and remains the fund manager of some of the funds offered to you for investment as part of your Aegon Master Trust pension.

When BLL provided the policy, the FSCS would have paid compensation in the event of BLL’s failure. Following the transfer of the policy, Aegon has agreed that, in relation to the funds listed, if BLL fails then Aegon will pay compensation to the trustees of an amount equal to that which would have been paid to them by the FSCS prior to the transfer.

In addition, when the policy was transferred to Aegon, some funds were restructured from insured funds to collective investments. Aegon has agreed to make good any losses that the trustees suffer as a direct result of the failure of the fund manager, depositary or trustee of these collectives, also listed. But only to the extent that, before the transfer took place, protection would have been provided by the FSCS should BLL have failed.

If you invest in any of the listed funds, then Aegon will provide the protection described above to the trustees. The sums recovered from Aegon could then be used by the trustees to protect your pension savings. If you switch funds or choose to invest in another fund, then different protections will apply.

Other than as explained above, the value of investments can go down as well as up and you may get back less than you invest.