Firms holding with-profits funds worth over £500m will soon be forced to specify the expected financial liabilities of individual product groups and reveal any changes to its reserves.
A “Dear CEO” letter published on the FSA website last Friday suggests the regulator has stepped up its ‘realistic reporting’ exercise in a bid to further show its commitment to transparency. The letter, which has already been sent out to all firms with with-profits funds in excess of £500m, reveals the FSA plans to repeat its realistic reporting approach, which is to be fully introduced by the end of the year. Firms previously taking part in the exercise had to measure their liabilities and calculate how much capital is required to cover these. This time round, however, the FSA is...
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