Labour MP Jim Cousins has slammed the FSA for failing to ensure that life offices provide endowment policyholders with all the available options when they are looking to surrender their policy.
Cousins has written to FSA chairman Howard Davies demanding that he take action to prevent policyholders being kept in the dark any longer over options such as selling their policy on the traded endowment market.
In the letter, Cousins points to a memo sent by Davies last December to the Treasury select committee, in which Davies claimed he expected the PIA to act.
Cousins says the PIA is merely a shell organisation for the FSA so there is no reason for there to be any delay.
In the letter, Cousins says the PIA has “failed to issue guidance. I really must press to ensure that the PIA takes action quickly. Policyholders cannot be left without proper advice any longer”.
Cousins has also criticised the FSA's review of with-profits products, saying the damage has already been done to the concept in the eyes of the public.
He says this is unfortunate because with the recent poor performance of the markets, this is when with-profits funds should shine with their smoothing effect kicking in.