UK life insurers have been warned by the FSA to make sure they have adequate capital reserves and put in place all the legal checks they need to meet promises in the future, says this morning's Daily Telegraph .
A "Dear CEO letter" posted on the FSA website yesterday were sent to the chief executives of all UK insurance companies warning them to ensure it meets its obligations as the regulator is worried insurers may not have put aside the correct levels of reserves to pay for guarantees because record-keeping and checks are “inadequate”. As the Telegraph points out, this letter is just two weeks ahead of a legal tribunal between the FSA and Legal & General over what the FSA sees as systematic mis-selling, and carries major embarrassment with the case as the FOS was alleged to have “lost or dest...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
