FSA moves to limit MVRs

regulator seeks to restrict amount levied to protect remaining investors when others exit

The FSA wants to limit the size and use of MVRs life offices can apply on closed with-profits funds. In a sector briefing on closed with-profits funds, the FSA said it is seeking to dispel many of the myths surrounding these funds, especially the notion that investors should seek to exit them as soon as possible. Within the briefing, the regulator highlighted a number of consultation papers and forthcoming rule changes it hopes will lead to greater transparency and bring greater ease in assessing the position of investors within a closed fund. One area on which it is consulting are the...