This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
Money Marketing Cover
Categories:Investments

Elsa sets out a code of practice for life settlement business

  • Print
  • Comment

The trade body for the traded life settlement market, the European Life Settlements Association, has issued a code of practice for its members designed to increase protection for investors.

Elsa says: “Members must either comply with the code or face suspension and ultimately expulsion from the association.”

In February, FSA head of investment policy Peter Smith said he had “significant concerns” about levels of transparency in the industry in a speech at the Elsa trade mission in London.

The industry sector offers products investing in US traded life settlements, known by some as “death bonds”, which are life policies that are sold on the open market.

Keydata sold traded life-based bonds as low-risk investments for several years and collapsed last year, throwing 85,000 investors’ savings into chaos.

Elsa chairman Patrick McAdams says: “As is often the case with new asset classes, teething problems, some of them serious, have occurred within life settlements. Sadly the better known of these problems have wrought painful damage on both investors’ pockets and the reputation of the asset class. They have, however, also taught us some important lessons.”

SL Investment Management chief executive Jeremy Brettell says: “SL welcomes the new Elsa code. We will now see a level playing field where investors are armed with the right framework to pick the best managers.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Do you agree with calls for a flat 30% rate of pensions tax relief?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments