RLP Property fund update

We’ve made the decision to restrict some transactions from our RLP Property Fund, effective from Monday 30 March 2020.

This decision has been made in the long term interests of our customers as a whole and we’ll continue to closely monitor the fund and provide updates throughout this restricted period.

This restriction does not impact any client who is invested in the Property Fund through the Governed Range, the Managed funds or Target Lifestyles (including the Royal London workplace default solution). 

If your scheme or a specific employee's transactions are affected by these restrictions then we will contact you the employee and your adviser to confirm this.

Please find below a list of questions and answers on the restrictions to our Property Fund. If you have further questions then please contact your usual Royal London contact in the first instance. Or visit our Contact us page.

Some transactions which involve putting money in or taking money out of the Property Fund will be delayed for a period of up to six months. This delay does not apply to normal retirement claims, death claims or income  requirements in drawdown.

We have seen increasing uncertainty related to the valuation of property fund assets due to the impact of the Covid-19 virus. This has caused a number of Property funds across the industry to suspend dealing. Our property surveyors have confirmed that going forward their valuations will include a material uncertainty clause. This, combined with reduced transactions in the market, means there is an increase in the likelihood of unfair outcomes to customers and has led to our decision to suspend the fund for direct investment. Throughout this period our focus is on ensuring the best possible customer outcomes, keeping these in line with both customer expectations and fairness across customers in different situations.

Royal London will remove the restrictions when confidence returns to the market and there is more certainty regarding the valuations of property. The restrictions will only continue for as long as they are in the best interests of customers.

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Any new withdrawal transaction that is impacted by the restriction will be delayed for up to six months from the date the request is received.

  • Taking full or partial retirement savings before reaching Selected Retirement Age.
  • Starting income release before reaching Selected Retirement Age.
  • Making a change to the Selected Retirement Age.
  • Switching in or out of the Property Fund during this restricted period.
  • All automatic rebalancing instructions will be cancelled during this restricted period.
  • Any regular contribution instruction which is currently allocated to RLP Property Fund will instead be allocated to the RLP Deposit fund.
  • All new contributions to the RLP Property Fund.

Withdrawal transactions will be made at the earliest of –

  • After 6 months – any new withdrawls will be delayed for up to six months from the date the request is received.
  • The end of the restricted period (if less than 6 months)
  • At Selected Retirement Date

Yes, the following payments and transactions will continue to be made:

  • Death benefits
  • Taking full or partial retirement savings on or after Selected Retirement Age.
  • Income release transactions, including regular income and PCLS.

When this restricted period has ended we will process your employee’s transaction. If your employee has received some of their payment then we will automatically pay the remainder.

If no payment has been received then we will send out the relevant forms in the mail and make payment when the required information has been returned.

We’ll automatically process any transaction which has been restricted when they reach their Selected Retirement Age.

If no payment has been received then we will send out the relevant forms in the mail and make payment when the required information has been returned.

We’ll automatically process any transaction which has been delayed if it has not been processed by the end of this restricted period.

If your client has received some of their payment then we will automatically pay the remainder.

If no payment has been received then we will send out the relevant forms in the mail and make payment when the required information has been returned.

Yes, the policy Terms and Conditions allow Royal London to defer a transaction in the Property fund for up to six months.

Yes, they are both fully aware of our plans and are supportive of Royal London’s approach.

We continue to monitor the impact of current market conditions on all the investment options we offer. If we need to restrict transactions from other options we will communicate this as soon as possible after the decision has been made.

Updates will be posted to the website.

Complaints can be made to Royal London following our complaint process. To help us deal with you’re concerns, please mark your complaint ‘Fund Deferral’.

If after reading the FAQs you still have unanswered queries then please contact your usual Royal London contact in the first instance. Or visit our Contact us page.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.