Life settlements fund EEA has generated nearly £40m in revenues in the last two months, despite its suspension following "unprecedented" redemption requests.
A blanket ban on traded life policy (TLP) investments would amount to "overkill" and could hamper the UK's ability to compete in global markets, according to SL Investment Management (SL).
The Financial Services Authority (FSA) should as a matter of urgency retract its references to traded life policies (TLPs) as "toxic", EEA Fund Management has said.
Last year's promised changes to regulation - which have long been going on in the background - gripped financial services publicly.