Consumer Panel demands closed life funds shake-up

In a damning new study, “Are customers in closed life funds being treated fairly?”, the FSCP says the answer is no in key areas including lack of advice, governance, communication and administration. It identifies about 8 million with-profits customers who are unable to get independent advice on their with-profits policies because their funds are too small to generate an economic commission for advisers. Advisers may also be reluctant to review policies because they fear future allegations of churning, the report says. The Panel urges the FSA to consider introducing some form of 'l...