STANDARD Life chief executive Iain Lumsden today quit after 36 years with the Edinburgh-based finance giant as the group announced a strategic review of its operations.I do hope that Standard Life survives as an independent entity - it is, I believe, Edinburgh's largest private sector employer. Standard's problems stem from remaining highly exposed to the stock market throughout the big declines of last year. I was a Standard Life policyholder until not too long ago. Being a student of the Austrian School of Economics, I switched out of the with-profits fund (linked to the stock market) into their cash fund at the end of 2001 and thus avoided the bonus cuts that followed. More recently I cashed in the policy. I cannot accept any responsibility for giving investment advice but I believe that the markets are still far too overvalued. Except for gold and silver of course.
He stood down as the life and pensions firm admitted it may have to consider demutualisation to strengthen its financial position.
Tuesday, 13 January 2004
The curse of the blogger
Yesterday I criticised the head of Standard Life. Today he has resigned!