The FSA has begun a further consultation on changes to compensation rules for with-profits funds.
Currently, life insurance companies can pay redress and compensation payments from assets belonging to shareholders or from the inherited estate of the with-profits fund, but the FSA wishes to make shareholders solely responsible.
Last year, the FSA released CP08/11, which said shareholders must meet all future compensation and redress payments.
However, the new paper, CP09/09, proposes making shareholders responsible only for compensation resulting from events that take place after the rules come into force. The FSA says the new rules are likely to come into force in July.
Consultation on the latest proposals will end on 22 May 2009, with a policy statement and draft rules expected shortly afterwards.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
Partner Insight: Continuing the Architas education series for clients.
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Square Mile’s series of informal interviews