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FCA continues closed-book investigations into five providers

The FCA is continuing its investigations over how five pension providers are treating their closed-book customers.

In an update this morning, the regulator said that while it had closed its investigations into Police Mutual, it still had Scottish Widows, Prudential, Old Mutual, Abbey Life and Countrywide Assured under its spotlight.

The six providers were referred to FCA enforcement as part of a review last year in which the FCA expressed concerns over how closed-book customers risked being treated unfairly by being kept in high-charging, badly performing products.

In particular, the FCA was worried that customers were not being given enough information about exit charges or other fees, that products were reviewed sufficiently, and some firms’ management “do not have a grasp of closed-book customers and outcomes”.

The forgotten: FCA exposes how closed-book firms have preyed on clients

The closed-book review gained notoriety when, at an early stage in 2014, a pre-briefing to The Telegraph led to inaccurate information about its scope, wiping millions off providers’ share prices.

The FCA’s statement this morning says that no decisions had yet been taken with regard to the remaining five firms in the review.

It reads: “No inferences should be drawn from the closure of the Police Mutual case concerning the continuing investigations. The FCA will update the market when decisions are made regarding the status of the remaining investigations.”


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FCA calls on providers to review closed-book policies

The FCA has called on providers to review their closed-book policies to make sure customers are still being treated fairly. Except in “exceptional” cases, products should be reviewed at least every five years, the regulator said in new guidance on how to treat closed-book customers this morning. The update follows a March review of how long-standing customers […]


Nic Cicutti: My fury at industry over closed-book pensions rip-off

If you were to ask regular readers of Money Marketing to describe the underlying tone of this column in a single word, my best guess is the term most would use is “rant”. “Rant” is defined in dictionaries as “to speak or shout at length in an angry, impassioned way”. So I can kind of […]

Sustainability Q&A

Following his latest webinar ‘Has sustainability been Trumped’ Mike Fox answers questions in relation to how Trump’s environmentally unfriendly policies might affect sustainable investment strategies. Read the article here The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back […]


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