The Financial Services Authority (FSA) said it estimates half of all funds held in the UK traded life settlement policy market are in investments which are in "difficulty".
Today the FSA announced plans to ban the sale and promotion of "toxic" traded life policy investments because they are high risk and generally unsuitable for the majority of UK retail investors. FSA figures suggest at least 1,000 distributor firms have been involved in the sale of TLPIs such as those promoted by failed firm Keydata. Of a total TLPI market worth £1bn, the regulator said around half of this is held in investments that are already in difficulty. Costs to distributors of today's guidance could be "significant" depending on the volume of unsuitable sales, it said. Ac...
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