Scot Wids critical of FSA proposals

Scottish Widows is wary of a compulsory information disclosure recommendation the FSA is considering applying to with-profits funds. If adopted, funds would be required to disclose smoothing accounts used to subsidise returns during difficult market conditions and cut back returns in better times. The transparency proposal is in an FSA discussion paper on creating a with-profits operational model, aimed at making funds more intelligible to long-term savers. George Andrew, Scottish Widows head of industrial relations, said: 'Such explicit disclosure could lead to policyholders, who can...