The FSA has published the fourth issues paper in its review of the with-profits industry.
It calls on life offices to be more explicit to consumers about the discretion they use in running with-profits funds.
In the paper, Discretion and Fairness in With-Profits Policies, managing director John Tiner says consumers would be better served if providers were more open about the principles that govern how they will manage policies.
The first three issues paper dealt with orphan assets, disclosure to consumers and regulatory reporting. The final one will discuss the governance of with-profits funds.
A final report resulting from the review will be published in the Spring.