ABI’s review will categorise different types of investment funds to improve consumer clarity in light of the current economic circumstances. The first stage will centre on the money market sector and propose options for reform before moving onto other ABI sectors.
The probe follows the announcement from Standard Life last week that it would be compensating all pension sterling fund investors after it emerged that significant sums of money were being ploughed into risky mortgages rather than being safely tucked away in bank and building societies.
All relevant bodies will be consulted in the course of the review including the IMA, FSA, AIFA, consumer organisations and data analysis companies.
ABI director general Stephen Haddrill says: “The current economic crisis has highlighted the need for a fundamental review of the ABI sectors to ensure that they continue to meet the needs of consumers and advisers as risk changes.
“This review shows our determination to act in the interests of consumers, and is a positive step forward for customers of the insurance industry and their financial advisers.”