The Financial Conduct Authority (FCA) has said it will look at transparency around exit charges from closed-book providers but advisers say the investigation shows the regulator is "behind the curve" on preventing consumer detriment.
The regulator's thematic review, released on 3 March, found problems in the way 11 closed book providers treated their customers. In particular, it found cases in which closed-book firms failed to inform customers of exit and paid-up charges at the time they were incurred. Abbey Life, Countrywide, Old Mutual, Police Mutual, Prudential and Scottish Widows now face enforcement investigations into behaviour on charges. FCA acting chief executive Tracey McDermott said: "We have particular concerns regarding how some firms communicated with their customers about exit and/or paid-up char...
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