FSA crackdown on life settlements 'could trigger new wave of compensation claims'

This week the regulator announced it had found "significant problems with the way in which TLPIs are designed, marketed and sold", and that further regulation was a possibility. But the FSA had been "woefully ineffective" in the way it had carried out the investigation into the asset class and protected consumers, said Michael Wainwright, partner at law firm Eversheds. "If the FSA is not careful, it will unleash yet another wave of compensation claims that, coming on top of the Keydata scandal, could wipe out a significant part of the financial adviser sector," he said. The issue w...