EEA suspends dealing in life settlements fund

The board of the EEA Life Settlements Fund decided to suspend dealings in the fund after receiving unprecedented levels of redemption requests from advisers and institutional investors.

Earlier this week, the FSA labelled life settlement funds as high risk, toxic products and said it aimed to ban TLPIs from being marketed to retail investors.

The suspension follows a board meeting with the dealing suspension introduced at 5pm on November 30. A spokesman for the firm says the suspension does not affect the ability of the fund to pay premiums as usual.

The Guernsey-domiciled EEA life settlements fund launched in November 2005 and is currently £600m in size, according to the firm’s November factsheet.

Life settlement policies were the underlying investment behind Keydata’s Lifemark products. The collapse of Keydata triggered an industry interim levy of £326m, with advisers paying £93m and fund managers paying £233m.