The FSA has issued a consultation paper with proposals to require UK life companies to be more expli...
The FSA has issued a consultation paper with proposals to require UK life companies to be more explicit with investors on their MVA, investment, early surrender and bonus policies.
These would also force with-profits providers to give information about the fund's exposure to business risk, as well as detailing the scope it has to make any necessary changes to investment policy.
The proposals in the paper, the fourth of five in its review of with-profits all published at www.fsa.gov.uk, also suggest that life offices need to inform investors about the management of the inherited estate or orphan assets.
John Tiner, FSA managing director, said: 'Customers tend to feel they have been treated unfairly when they receive unpleasant surprises from firms.
'Much of this disappointment could be avoided if providers were open from the start about how their policies are to be operated and the principles that govern the decisions they make, which directly affect the return to policyholders.'
‘Most significant’ upgrade since launch
Changes happening over coming months
Had accepted British Steel business
Aimed at HNW clients and family groups
Set for 1 April 2019