The Financial Services Authority (FSA) has said it plans to ban the sale and promotion of 'toxic' traded life settlement policies because they are high risk and generally unsuitable for the majority of UK retail investors.
The FSA aims to consult on a ban next year, it said. TLPIs - like those invested in by failed firm Keydata - invest in a pooled investment or fund which invests in US life insurance policies. In a statement the FSA referred to the investments as "death bonds". A TLPI investor is betting on when a particular set of US citizens will die and if these people live longer than expected then the investment may not function as expected, the FSA said. According to the regulator, it has found evidence of significant problems with the way in which TLPIs are designed, marketed and sold to U...
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