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FSA launches review into £800bn unit-linked fund sector

FSA Front 480

The FSA has launched a thematic review into the governance arrangements of the £800bn unit-linked fund sector.

The review has been launched to make sure there are sufficient protections in place for pension savers as automatic enrolment rolls out.

It will assess whether:

  • firms have adequate systems and controls in place to ensure that funds are administered and managed fairly and in accordance with customer expectations;

  • assets backing unit-linked policies are appropriate for policyholders; and

  • policyholder benefits are calculated fairly and accurately.

The regulator expects to publish findings from the review in the Autumn.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Not to worry, IFA’s are happy to pick up the tab when the regulator gets it wrong!

  2. Ah well that’s for Monday. Now what about the rest of next week?

  3. Hope they make a visit to Capita.Sorry forgot they already did but Arch Cru still went **** up!!!

  4. Can I suggest they focus on Capita and their performance as an ACD. Unfortunately Capita has such low resources that the FSA was unable to fine them for the Arch Cru disaster. Maybe they shouldn’t be allowed to run funds if they are that close to the edge?

  5. Seems like a good idea. Too many times have we found clients stuck in so called managed funds that only manage to provide a return for the insurance company, or equity funds that seem to be managed by a trainee. Older funds, often part of a set of investment choices that are all obsolete, are often the only choices to switch to, leaving a dilemma for people with smaller funds.

  6. Is this absolutely necessary? It does seem a bit like making up things to do for some nice PR……look at us we are busy changing lives…..etc etc

    Seriously, isn’t this about the 4th or 5th announcement this week that the FSA is about to do something massively important?

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