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Information for customers on the EU Referendum

You may be wondering what the outcome of the EU Referendum means for you. It's important to note that you can continue to use our products and services just as you do now. We've prepared a set of questions and answers to help you with any queries you might have.

What will be the impact on my pension / investments as a result of the Referendum?

It's difficult to say, however there may be a period of uncertainty and volatility. Volatility is common in financial markets and the impact of leaving the European Union is just one of a number of issues which could be a cause.

Our approach to managing your money will not change. Given the long-term nature of pension savings, we take a long-term approach to managing your investments rather than being unduly influenced by short-term fluctuations.

Is my pension protected?

Yes. Customer deposits and investments continue to be protected by the Financial Services Compensation Scheme on the same basis as before, and you can continue to use your banking and insurances services just as you do now.

Given the long-term nature of pension savings, we take a long-term approach to managing your investments rather than being unduly influenced by short-term fluctuations. Investments are subject to market fluctuations and other risks inherent in investing in securities. The value of investments may fall as well as rise, and there is a risk that investors may get back less than the amount invested.

Should I make any changes to my pension / investments?

Everyone's circumstances are different and we aren't able to give you advice on what is appropriate for you. If you're considering your own position, you should remember why you invested in the first place and consider the lifespan of your investments.

Most importantly, you should seek financial advice before making any changes to your investments. If you don't have a financial adviser, you can find one local to you by visiting www.unbiased.co.uk, which is responsible for promoting financial advice in the UK. You can also visit the Government's free guidance service Pension Wise at www.gov.uk/pensionwise

How will the current market volatility impact my fund(s) performance?

It is natural to be concerned about your investments when markets are volatile. Historically, markets have had their ups and downs for a variety of reasons and we have seen similar volatility before. While we don't know how long this will last or how markets will continue to respond to the outcome of the EU Referendum, past experience has shown that markets which have fallen in the past have generally recovered over time. That's why we encourage you to consider your investments over the longer term.

Everyone's circumstances are different and we aren't able to give you advice on what is appropriate for you. As always, if you are considering your own position, you should remember why you invested in the first place. Most importantly, you should seek financial advice before making any changes to your investments.

Has there been any impact on Scottish Widows Property funds?

Following the EU Referendum outcome there has been uncertainty surrounding the property market. While we have not encountered any issues regarding our property funds, we are mindful of the risk that properties coming to market now do not achieve their recent valuations in terms of sale price.

So we believe it is in the interests of our life and pension property investors to introduce a ‘Fair Value Adjustment’ of the value of direct properties in the funds, to reflect more accurately the current likely market values of the funds’ property holdings.

For more details, please read our full announcement.

Are the terms and conditions of my policies affected in any way?

There are no changes to your terms and conditions at this stage. We'll notify customers of any changes in advance, in line with our standard policy.

Is my policy still valid?

Yes. There are no changes to policies at this stage.

What impact will the EU Referendum outcome have on Scottish Widows?

Scottish Widows is part of Lloyds Banking Group, which is one of the UK's best capitalised banking groups and is well placed to deal with what may be a period of uncertainty and volatility. The Group's core strategy and business operations haven't changed as a result of the Referendum outcome and we continue to be committed to the UK market and to supporting customers who use our products and services.