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...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes