From: "Doug Ramage" 
Newsgroups: uk.finance uk.legal
Subject: Market Value Adjustment
Date: Tue, 6 Jan 2004 17:54:25 -0000

A client who is going through a relatively amicable divorce is having a
problem finalising it with the lawyers.

The problem seems to be the division of his pension fund (personal, not
company, I think). He is prepared to split it 50:50, (with both funds
remaining with the original insurance company) but the insurance company
wants to charge an MVA on this "transfer". Both spouses accept that the MVA
can apply if there was a transfer to a different insurance company, by
either of them.

I have not seen the original documentation, but I cannot see how the
insurance company can justify an MVA in these circumstances. There is no
loss to the other policyholders, no change of investments etc.

Has anyone come across this before?
--
Doug Ramage

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