FSA allows insurers to invest in wider asset range

The regulator says the rules governing where the £730bn unit-linked insurance sector can invest were in need of updating, having been in place since 1994. Coming into effect on 6 October, the new 'Permitted Links' rules will remove the 10% limit on unlisted securities (although they have to be be realisable in the short term). The FSA has confirmed that its 20% limit on unregulated Collective Investment Schemes (CIS) will apply to property funds. The level of gearing within a property fund will be limited to a maximum of 10% of the gross asset value. However the FSA has decided to e...