The Association of British Insurers (ABI) is to enhance its guidance on unit-linked funds after a Financial Conduct Authority (FCA) probe uncovered "specific" failures in some insurers' governance of the investments.
Though the regulator said its thematic review found no evidence of a systemic failure across the industry, it said it uncovered individual problems which, if left unchecked, could disadvantage investors in the funds. Among these was one firm which, the FCA said, exercised insufficient controls over permitted assets within the products - a problem it said could lead to investments in riskier assets. Firms which had problems identified have been tasked with appointing independent external experts to investigate whether customers have lost out and whether compensation is required. The...
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