FSA plans will push with-profits further into bonds

With-profits funds were to be forced into holding a higher proportion of non-equity assets under FSA...

With-profits funds were to be forced into holding a higher proportion of non-equity assets under FSA proposals for setting target ranges for maturity payouts. While the regulator recognised this could reduce overall returns to policyholders, it stated this would be in exchange for less volatile assets in with-profits funds and an increased likelihood of policyholders receiving consistent payouts.