Liberty Life
How do they get away with it?

I have an RA policy with Liberty which commenced in 2001. In December 2012 Liberty decided to switch from the funds I had chosen (Excelsior income 66%, Excelsior property 22% and Coronation Equity 12%) and place 97% into Coronation Equity and 3% into Standard bank money market. On questioning the reason for this change (one that occurred without consultation) I was told it was to make the policy regulation 28 compliant. I repeatedly informed Liberty that Coronation Equity was a 8/10 high risk fund which could not be a regulation 28 compliant fund - to which they insisted that it was. Finally they admitted that they had made an error and that the switch should not have taken place, however during the time from when the switch occurred (around 20th Dec until it was corrected 23rd Jan) the markets had improved and the fund had made gains. Sadly for me Liberty refuse to grant me those gains and instead have retained them for themselves. Not only do we have to pay their very high management fees but now it seems they can speculate with a clients money, withhold any gains, claim it was a systems error all with total impunity - how do they get away with it?

Company: Liberty Life
Country: South Africa
City: Cape Town

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