Treasury pulls up FSA on inherited estates

The Treasury Committee has criticised the FSA for failing to adequately protect with-profits life-fun...

The Treasury Committee has criticised the FSA for failing to adequately protect with-profits life-fund investors. It believes inherited estates, the vast pots of money built up by life-fund groups for use in smoothing fund returns, are not always being used solely for the benefit of investors. Committee chairman and MP John McFall said the FSA is caught up in micro-regulating individual cases rather than establishing clear overarching principles. “The approach taken by the FSA towards inherited estates seems a long way from the philosophy of ‘principles-based regulation’ to which it as...