FSA plans to exempt Holloway policies from RDR

Advised sales of the plans originally fell under the RDR's remuneration scope because of their investment component, even if it was very small. But in today's quarterly consultation paper (chapter 8), the regulator proposes a softening of the RDR requirements to only include policies with a "significant" investment element. Where this is the case, the FSA says it will consider the policies comparable to other with-profit savings products. It adds that, following discussions with the Association of Financial Mutuals, it is consulting on a threshold where the projected maturity valu...