The FSA is proposing a ban on insurance companies using the inherited estates of with-profits funds ...
The FSA is proposing a ban on insurance companies using the inherited estates of with-profits funds for paying mis-selling charges. In a consultation published last week, the regulator outlined plans to prevent life offices from charging compensation and redress payments to these asset pools. The FSA said if the charges impact the value of the inherited estate, it could adversely affect the potential payout to policyholders, which may breach TCF. The paper said: "We do not believe the rules as they stand provide sufficient incentive for proprietary firms to address failures of systems...
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