Market Value Reduction (MVR) – What does this mean for me?

On Monday, 22 March 2021, the Oddfellows Commercial Board have made the decision to remove the current Market Value Reduction that has been in place on the Kingston Unity With Profits Investment Bonds and ISAs. This means that the 5% penalty that was incurred for withdrawals, surrenders or transfers (depending on your product) is no longer in effect. 

MVRs are designed to protect the investments of Members who are not withdrawing their money or surrendering their policies. We have compiled the following Q&A to help with any questions that you might have and let you know how, or if, it impacts you.

Why did we apply a Market Value Reduction?

Due to extreme market volatility as a result of the COVID-19 pandemic, financial institutions globally are had to make firm decisions about their investment strategies. As always, our Members are at the heart of everything we do. Therefore, we made the decision to apply a MVR in response to these sudden changes in market performance. This was in place solely for the benefit of our Members and to enact fairness across the whole membership.

As we are now part of the Oddfellows family, the decision to remove the MVR was within the remit of the Oddfellows Commercial Board. After detailed consideration, the Board have decided to remove the MVR in place on Kingston Unity Bonds and ISAs. If you would like to talk to us about this in more detail, you can contact the Kingston Unity team here.

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Please Note: You must confirm you have read the key facts, before downloading this document.

Key Facts about our services and costs

1. The Financial Conduct Authority (FCA)

The FCA is the independent watchdog that regulates financial services. This document is designed by the FCA to be given to consumers buying certain financial products. You need to read this important document. It explains the service you are being offered and how you will pay for it.

2. Whose products do we offer?

We offer products from the whole market

We only offer products from a limited number of companies

We only offer our own products

3. Which service will we provide you with?

We will advise and make a recommendation for you after we have assessed your needs.

You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

We will provide basic advice on a limited range of stakeholder products and in order to do this we will ask some questions about your income, savings and other circumstances but we will not:

  • conduct a full assessment of your needs;
  • offer advice on whether a non-stakeholder product may be more suitable.

We can only offer products from Kingston Unity Friendly Society. These products will enable you to:

  • protect yourself and your loved ones in the event of death
  • save and invest with the added benefit of protecting yourself and your loved ones in the event of death
  • provide benefit cover in the event of sickness

4. What will you have to pay us for our services?

Normally, if you buy a financial product direct from us, there will be no payments such as commission or fees payable. If there are any commission or fees payable, we will tell you how we get paid and the amount before we carry out any business for you.

5. Who regulates us?

Kingston Unity Friendly Society, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and .the Prudential Regulation Authority. Kingston Unity Friendly Society’s FCA Registered Number is 110056.

Kingston Unity Friendly Society permitted business is advising and arranging life assurance and pensions business.

You can check this on the FCA’s Register by visiting the FCA’s website or by contacting the FCA on 0845 606 1234.

6. What to do if you have a complaint

If you wish to register a complaint, please contact us:
…in writing Write to Kingston Unity Friendly Society, Complaints Department, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. …by phoneTelephone (01924) 240164

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.

7. Are we covered by the Financial Services Compensation Scheme (FSCS)?

We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Most types of insurance business are covered for 90% of the claim with no upper limit.