FSA publishes final rules on treating with-profits policyholders fairly

Policy Statement 05/1 Treating with-profits policyholders fairly outlines changes in the areas of management costs, early surrender penalties, maturity payouts, new consumer-friendly principles and practices of financial management (CFPPFM) and the appointment of a policyholder advocate to protect interests of policyholders. Early surrender rules will be affected by wording changes to the Conduct of Business rules, to ensure “surrendering policyholders are as entitled to fair treatment as those who hold to maturity.” The wording changes are to ensure the FSA’s intended policy of makin...