CP 195 boosts with profits transparency

Among the changes outlined in CP 195 published today, the FSA proposes to require life companies to report their "realistic with profits position" and to have their calculations of "realistic with profits reserves and capital" audited. Both proposals are likely to be welcomed by consumer groups pressuring for more transparency of with profits calculations affecting annual and terminal bonus rates. Life companies will also have to deal with two new reporting forms, which comprise a "realistic balance sheet and a schedule that sets out the calculation of the with profits capital...