FSA 'betraying' consumers on with-profits compensation

Consumer magazine Which? says the FSA's decision to allow the practice to continue is ‘madness'. Confirming its new stance on with-profits funds and compensation, the FSA will prevent insurers from raiding inherited estates to meet compensation payment for future policyholders. However, the rules will not be applied retrospectively, meaning inherited estates will remain a target for insurers for many years to come. The changes come into effect on 31 July, meaning all new policyholders who successfully apply for compensation due to mis-selling will have to be paid from a firm's prof...