The Association of British Insurers (ABI) is to enhance its guidance on unit-linked funds after a Financial Conduct Authority (FCA) probe uncovered "specific" failures in some insurers' governance of the investments.
Though the regulator said its thematic review found no evidence of a systemic failure across the industry, it said it uncovered individual problems which, if left unchecked, could disadvantage investors in the funds. Among these was one firm which, the FCA said, exercised insufficient controls over permitted assets within the products - a problem it said could lead to investments in riskier assets. Firms which had problems identified have been tasked with appointing independent external experts to investigate whether customers have lost out and whether compensation is required. The...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
