FSA's powerless over with-profits holders

IFAs had called for the market value adjustment charges (MVAs), which can be as high as 20pc, to be cancelled on closed with-profits funds. This would allow investors to leave funds which had failed to match the performance of open and other closed funds without incurring high financial penalties. But the FSA stated it would not be intervening despite calls for action from clients and advisers alike, and said its scope was limited. “We cannot abolish the exit charge as we don’t have the power to do so and we are not planning to publish a review of closed with-profits funds,” an FSA spok...