View more on these topics

Wp rules aim to make costs and penalties clear

The FSA has finalised the first set of rules designed to regulate the transparency and accountability of the with-profits sector.

Life offices will be made to highlight the costs charged when managing the fund, penalties levied to shareholders who surrender their policies early and the need for funds to be managed with the objective of ensuring that maturity payouts fall within a target range set for the fund.

But providers have objected to sending a code of practice to existing policyholders immediately the rules take effect. Instead, the new code will be included in annual statements and will be highlighted on product providers’ websites.

The FSA says it will issue a further consultation paper finetuning its new regulations if solutions to teething problems cannot be found.

One unnamed provider called for MVRs on unitised with-profits policies to be classed as negative terminal bonuses for the purpose of calculating amounts of distributions to policyholders and shareholders. The FSA says it will look at incorporating this before proposals are implemented on June 30 on a transitional basis, becoming mandatory at the end of the year.

Norwich Union chief actuary Mike Urmston commends the change in FSA proposals. He says: “We think that incorporating the required information into existing policyholder communications is a workable solution and strikes a good balance.

“We think that the time scale suggested for doing this is entirely realistic.”

FSA sector leader for insurance David Strachan says: “This work by the FSA will underpin the obligation of senior management of with-profits firms to treat their policyholders fairly and make the operation of funds easier to understand. This, in turn, should restore confidence in the with-profits sector and wider insurance industry.”


Life offices give pledge on consultants as ifas ask, where is the man from the pru??

Life insurers gave a guarantee that specialist consultants are here to stay after IFAs asked: “Where is the man at the Pru?”Life offices Legal & General, Norwich Union and Prudential pledged to keep roving broker consultants after intermediaries complained that they never received a visit from the Prudential. But the IFAs at the Money Marketing […]

‘savers ignoring inflation’

Savers are mostly unaware of the effects of tax and inflation on their money, a new study claims. Research from National Savings & Investments shows 64 per cent of people do not take inflation into account when saving. Only 33 per cent consider the taxation of their savings, down from 37 per cent in February […]

F&C in trust merger discussions

F&C is looking to merge its capital and income and income growth investment trusts. The boards of both trusts have appointed advisers in connection with the merger, which will become effective in April 2005 subject to shareholder approval. The merger is likely to achieve economies of scale through the creation of a larger company and […]

L&g •fsa – the lawyers’ view

Beachcroft Wansbroughs partner James MacNish Porter says: “I think it is a points’ draw. The comment has been coming out largely in favour of Legal & General. But is L&G going to get away without a fine? No. In my dealings with L&G, they have never been afraid to stand up for what they believed […]

Auto enrolment – so far so good?

Jamie Clark – Business Development Manager The recent report from the Pensions Policy Institute demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report. Auto enrolment in numbers Sources: Pensions Policy Institute, The Future Book: Unravelling […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm