FSA warns with-profits mutuals to put policyholders first

Following questions from a number of mutual firms over how to deal with the decline in with-profits business, the regulator has written to CEOs outlining their options and responsibilities. A number of mutuals are facing a significant decline in new with-profits business, and many are now considering closing their funds or creating new products. Jon Pain, managing director of supervision at the FSA, says firms must ensure they can fairly distribute assets to with-profits policyholders when closing a with-profits fund while continuing to write new non-profit business. If they are un...