RUSSIAN-RELATED FUND SUSPENSIONS – TEMPORARY REMOVAL OF FUNDS FROM PLANS

Following our communication to impacted policyholders and advisers on 3 March 2022 regarding the suspension of a number of Russian-related funds in the RL360 defined fund range, we are providing an update on the situation.

Are the funds still suspended?

As at the date of this communication, the affected funds listed in our original communication, are still suspended. The Moscow Stock Exchange has reopened, however with trading by foreign nationals still prohibited. 

At this stage, we are unable to say for how long the funds will be suspended; each fund manager is reviewing the situation on an ongoing basis. We will advise as soon as we receive confirmation that the suspended funds have resumed normal trading activity.

The impact of holding a suspended fund in a RL360 plan

The suspended funds held in impacted plans have, until now, remained visible within a plan owner's portfolio of investments, with a static price. However, by holding a suspended fund in an RL360 plan, it places restrictions on RL360’s ability to administer the plan and prevents certain policy servicing functions, such as taking a withdrawal or surrendering the plan. 

As the fund suspensions are lasting longer than expected, we have decided to temporarily remove the suspended funds from plans in order to lift various restrictions on the plans. Whilst plan owners will still not be able to surrender their plan at this time, temporarily removing the funds will allow plan owners the ability to carry out other administration functionality as normal. No plan charges will be deducted from units held in the suspended funds whilst temporarily removed from plans. 

Once we receive notification from the fund managers that the suspended funds have started pricing normally again and the suspension can be lifted, we will add the funds back into plans and then plan owners will be able to have full access to the value of the unsuspended funds; the value of which will be based on the published price provided by the fund manager. 

We understand that affected plan owners might be worried to see the suspended funds removed from their plans, especially as their plan value will reduce as a result. But we hope that this will be a temporary solution in order to allow impacted plans to continue to function with less restrictions, for the remaining, visible funds held. 

Impacted policyholders, or their appointed investment adviser, will be sent a letter explaining our action taken. Samples of these can be viewed opposite.