Advisers with clients in the suspended EEA Life Settlements Fund are to be offered an exit strategy following the Financial Services Authority's (FSA's) decision to ban the asset class for retail investors.
In March, chairman Mark Colton wrote to investors offering three "restructuring" options for investors, one of which being to opt for a run-off share class and receive their money back as policies mature.
That option could appeal to advisers looking to move client money, without selling to institutional investors at a discount to be decided.
"One of the options likely to be offered to investors wanting to redeem when the fund reopens is to move their investments into a run-off vehicle," said EEA marketing director Peter Winders.
"The experience of the last few months underlines how the fund is continuing to benefit from maturities at significant rates and will bring reassurance to those who might be considering this option."
Life settlement funds were likely to remain attractive to sophisticated individuals and institutional investors, Winders added.
"Life settlements is a historically non-correlated and low volatility asset class that is able to produce stable and consistent returns even through periods of stock market turmoil, such as we have experienced in the past six months," he said.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected