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Aviva lifts withdrawal restrictions from 4 November 2009

Since 22 January 2009, we temporarily deferred withdrawal instructions for the Aviva Unit-Linked Property Fund (available through life bonds and pension products) for up to six months from the date they were received. This was in response to exceptionally difficult market conditions which made it hard to sell property at a reasonable price. We took this action in the best interests of investors; to protect the long-term value of their investment by avoiding having to sell properties below their market value.

Early settlement programme

Since the restrictions were imposed we have been running a queuing system and, as cash has been received from property sales, we have been able to settle customer withdrawal requests before the end of their six month deferral period. For most investors the wait has been between three and four months. All outstanding redemptions in the queue are now being processed – there is no need for your clients who have submitted a withdrawal request to take any further action.

Sustainable cash levels

With improving conditions in the UK commercial property market and confidence returning to the market, we believe current cash levels are sustainable in the short to medium term and, as a result, we are able to lift the current restrictions for all investors.

However, it’s important to remember that exceptional market conditions at any time in the future could mean we need to reintroduce withdrawal restrictions for the fund.

Normal service

From 4 November 2009, all new requests to withdraw, switch, make automatic partial withdrawals or transfer money from the fund will be processed in line with our normal service standards.

Still open to new business

Whilst deferral restrictions were in place, the fund has always been open to new business, so clients wishing to invest or switch money into the fund are not affected by this announcement.

Further information

Please see the following items for more information:

Adviser Qs and As 

Customer Qs and As 

If you have any queries, you can contact your Aviva consultant, call our adviser contact centre on 0845 9000 810* or visit

www.aviva.co.uk/financial-strengths/property-update

* We may record and/or monitor calls