The Financial Services Authority is proposing changes to its ‘permitted links' rules which will allow insurance companies to offer a wider range of investments, including access to property funds as an investment.
Key changes are being made to shift unit-linked investment links subject to “high level principles” because there are now inconsistencies between the type of investments UK funds held under the FSA’s COLL rules can make compared with unit-linked insurance firm investments – a market said to be worth a total of £650bn and £110bn in premiums. Under existing rules, institutional pensions funds - which, the FSA notes, account for 40% of total assets under management in pooled insurance funds – are restricted in the type of property investment fund mandates they may issue, for example, because...
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