The FSA wants to limit the size and use of market value reductions (MVRs) life offices can apply on ...
The FSA wants to limit the size and use of market value reductions (MVRs) life offices can apply on closed with-profits funds. In a sector briefing on closed with-profits funds, the FSA said it is consulting on rules determining surrender values, including MVRs. It wants to restrict the MVRs to be used only when protecting remaining policyholders from those leaving the fund, with the amount levied limited to what is necessary to protect remaining investors. This would prevent life offices from using MVRs as a blanket charge for all leavers, effectively acting as a disincentive for inv...
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