Viatical investors must be cautious

Legal action against the MBC in the US poses problems for the life and viatical markets

The cease and desist order placed on the Mutual Benefits Corporation (MBC) in Florida has sent ripples throughout the life settlement and viatical market. While the case has yet to run its legal course, it is clear the order has raised a number of issues and that potential investors will be searching for answers as to the security of returns on their assets. They may even be deeply shocked by what they discover and question the information they were given on which their investment decision was made. The second-hand life insurance market has grown rapidly as the asset represents an innova...