The FSA says the management of the £110bn closed-ended with-profits sector has generally improved since its last review in 2007, although there are still areas for concern.
Advisers have been calling for an improvement in the running of clients' money trapped in the funds for years, with many arguing the performance of the products and policyholder communication does not compare favourably to open-ended vehicles. However, with the exception of two firms, the FSA says providers' run-off plans for closed-ended with-profits funds (including coping with the additional risks of a declining asset portfolio and the distribution of any inherited estate) "adequately" set out their plans for the vehicles. Most firms had considered the projected shape of the fund,...
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