Confirming that about half of all with-profits assets under management are now in closed funds and that consolidation of closed funds is inevitable, the Treasury Select Committee says the FSA bears special responsibility to ensure consumers are treated fairly on both counts.
About £160bn of investments are in closed funds, the Committee says, with consumers still confused as to the returns possible on these trapped assets. ”This is an issue in that policyholders often feel their savings are now trapped in policies offering lower prospects of growth,” the Committee states. ”It places the highest priority on the FSA ensuring that policyholders are treated satisfactorily through [the consolidation] process.” Consumers should not have to pay “punitive” exit penalties and should receive a “fair share” of the “efficiency benefits” consolidation is intended t...
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