FSA confirms plans to restrict TLP sales

The FSA has hinted it may impose stricter regulatory requirements on firms recommending traded life policy investments (TLPIs) after issuing final guidance stating they should not be promoted to most retail investors.

The regulator said the guidance is an interim measure, and that it will soon consult on new rules imposing restrictions on the promotion of non-mainstream investments, including TLPIs, to retail investors. In November, the regulator announced its intention to act on unsuitable sales and promotions of TLPIs. It compared the products to 'ponzi schemes', language that attracted criticism from advisers and providers. Today, the FSA confirmed it does not believe the products should be marketed or sold to most investors after uncovering evidence of "significant problems with the way in whic...